Snowe and Durbin Circulate Letter in Support of Strong Federal RPS
Sens. Richard Durbin (D-IL), Olympia Snowe (R-ME) and Senate Majority Leader Harry Reid (D-NV) are seeking support from their Senate colleagues on a letter to Chairman of the Energy and Natural Resource (ENR) Committee, Jeff Bingaman (D-NM) and Ranking Member Pete Domenici (R-NM) in support of a strong federal renewable portfolio standard. The letter state that a "market-based mechanism will promote the production and consumption of electricity generated with renewable resources such as wind, solar, biomass and geothermal." The letter states that such a standard has been passed by the Senate on three separate occasions: "in H.R. 4 from the 107th Congress, and in H.R. 6 in both the 108th and 109th Congress."
The Senators urge that any energy bill that emerges from the Senate ENR Committee should include a strong RPS. A final version of the letter will be sent to NEPPA members when it's sent to the ENR Committee.
Morgan Meguire Meets With Neal's Tax Counsel on CREBs
On Tuesday, February 20, Lori Pickford and Karen Price of Morgan Meguire met with House Ways and Means Select Revenue Measures Subcommittee Staff Director Melissa Mueller and Rep. Richard Neal's (D-MA) energy Legislative Assistant Dan Houton to discuss the Clean Renewable Energy Bond (CREB) program. In the 110th Congress, Rep. Neal became Subcommittee Chairman, with jurisdiction over all revenue measures, including energy tax incentives. APPA's Legislative Director, Joy Ditto, and Large Public Power Council (LPPC) Tax Counsel, Jayne Fitzgerald, also participated in the meeting.
Pickford discussed New England's regional efforts to address climate change, noted that each state except New Hampshire has a renewable portfolio standard (RPS), and said that efforts to implement federal legislation are underway in both areas (RPS and GHG). She also highlighted the need for federal incentives, such as the CREB program, to help consumer-owned utilities reduce the cost of expensive renewable generation.
While aware of the CREBs program, it appeared the staff was not fully informed on the details of its operation, including the problems with the allocation methodology and the definition of "governmental entity." We emphasized the success of the program, judging by the $2.6 billion in applications for allocations, which underscores the need for an extension with no cap or a significantly greater one. Staff took note that, in Massachusetts, consumer-owned utilities requested over $70.5 million in CREB allocations but were granted only $3.4 million.
Mueller asked whether Treasury applied any criterion other than size in evaluating an application, for instance, a qualitative analysis of a project. We explained that the "smallest-to-largest" methodology did not consider any other criteria.
Mueller indicated that full Committee on Ways and Means would be holding the first two hearings on energy, one of them possibly as early as next week. Those two hearings will be followed by a hearing in the Subcommittee on Select Revenue Measures on energy incentives proposed by Members. Mueller thought that hearing would occur in late March. Significantly, she invited public power's testimony at these hearings. The hearings are intended, at least in part, to develop options for "spending" the so-called "trust fund" amounts raised by the repeal of the oil-and-gas incentives in H.R. 6. Melissa noted, however, that the Senate has yet to act on H.R. 6, so that there is not any money to spend thus far.
Chairman Rangel Requests House Hearings on Energy Tax Incentives
This week, House Ways and Means Committee Chairman Charles Rangel (D-NY) called on Subcommittee Chairman Richard Neal to hold hearings on "energy incentive proposals from Members and the public." The hearings will be part of the Committee's development of energy legislation, which Speaker of the House Nancy Pelosi (D-CA) has requested be drafted by summer. As mentioned above, Rangel may hold the first two hearings on energy, one of them possibly as early as next week. A third hearing, most likely in March, would be held in the Select Revenue Measures Subcommittee, with Members of Congress testifying on their energy incentives.
The hearings are intended, at least in part, to develop options for spending the so-called "trust fund" amounts raised by the repeal of the oil-and-gas incentives in H.R. 6.
FERC Release Final Rule on Open-Access Transmission Tariff (OATT)
On February 15, FERC issued a final order modifying the Open-Access Transmission Tariff (OATT) that, among other things, advances new policy to create a transparent and open regional planning process. While the Commission agreed that there are benefits to joint ownership of transmission facilities, particularly large, backbone facilities, it did not mandate an "open season" procedure to allow market participants to participate in joint ownership, because it felt it could increase complexities in planning and development of transmission. Instead, the Commission encouraged transmission providers and customers to consider the use of open seasons to realize construction upgrades identified in the planning studies.
Thirty-Eight Senators Request White House to Release Emergency LIHEAP Funds
Sens. Jack Reed (D-RI) and Susan Collins (R-ME), and thirty-six other Senators joined together in sending a letter to President George W. Bush requesting the immediate release of $200 million in emergency funds for Low-Income Home Energy Assistance Programs (LIHEAP). They cited that the "extended artic cold wave which has covered much of the nation during the last several days," as justification for their request for emergency LIHEAP funds.
APPA and Others Support Energy Efficient Transformers
On February 9, consumer-owned and investor-owned utilities joined by key energy efficiency advocacy groups, sent a letter to DOE Secretary Samuel Bodman jointly recommending new national standards for energy efficient distribution transformers.
The organizations signing the letter included: APPA, the Edison Electric Institute (EEI), the Natural Resources Defense Council (NRDC), the Alliance to Save Energy (ASE), and the Alliance Standards Awareness Project (ASAP), the American Council for an Energy-Efficient Economy (AC-EEE), and the Northeast Energy Efficiency Partnerships, Inc.
The letter further notes that APPA's and EEI's members, together, own approximately 33 million distribution transformers that are essential equipment for the electricity system. It goes on to say that "improved efficiency standards for distribution transformers ensures that more of the power generated at power plants performs useful work and reduces electricity losses in the distribution system."
The signatories on the letter urged DOE to adopt a tiered approach for incorporating these standards for new transformers, and offered to work with DOE to achieve this goal.
New England Congressional Staff Changes
Heather Zichal of Sen. John Kerry's office was recently promoted from Legislative Assistant to Legislative Director. Her replacement as energy Legislative Assistant has not yet been named.
As mentioned above, Rep. Neal has hired Melissa Mueller as his Subcommittee Staff Director. She previously worked tax issues in his personal office, before moving to the Senate Finance Committee to handle compliance issues.