NEPPA Blankets Capitol Hill; Meet with Delegation Members A large group of NEPPA members came to Washington, DC, last week, as part of APPA's Legislative Rally. NEPPA members met with members of their six-state Congressional delegation to deliver key messages on the following issues, among others:
- Increase Regional Transmission Organization (RTO) Accountability;
- Encourage FERC to mandate Joint Ownership of Transmission;
- Extend and modify the Clean Renewable Energy Bond (CREB) program;
- Increase appropriations for the Renewable Energy Production Incentive Program (REPI);
- Support for Low Income Home Energy Assistance Program (LIHEAP) Funding;
- Encourage Congress to take into account the Northeast regional effort when designing federal Greenhouse Gas (GHG) legislation;
- Request Congress to "grandfather" state laws, when developing a federal Renewable Portfolio standard (RPS), to avoid requiring utilities to comply with two sets of standards; and
- Urge co-sponsorship of the S. 822 the Feinstein-Snowe Energy Efficiency Tax Incentives Act (EXTEND)" which provides tax incentives to developers of energy efficient residential and commercial building, as well as the House counterpart.
An effort to introduce legislation regarding more accountability for RTO's is underway. Members from Vermont and Maine have approached their key members of Congress to see if they will champion such an effort. In addition, efforts to have key Senators request the Government Accountability Office (GAO) study on RTO Accountability are also under consideration.
McDermott Readying CREB Bill
Rep. Jim McDermott (D-WA) is getting ready to introduce a bill that would extend and modify the Clean Renewable Energy Bond (CREB) program, which provides an incentive for governmental entities and rural electric cooperatives to invest in renewable generation.
McDermott's "Clean Renewable Energy for Public Power Act" would:
- extend the CREB program for five years
- remove the volume cap (currently set at $400 million) for the program, and
- modify the definition of "governmental entity" to ensure that public power systems with an obligation to serve receive a more appropriate percentage of CREB benefits, if a volume cap were put in place.
The bill has not yet been introduced, but McDermott has circulated a "Dear Colleague" letter to House Members asking for co-sponsorship. During this week's APPA Legislative Rally, NEPPA representatives asked members of the New England delegation to support the bill.
House Global Warming Panel Created; Markey to Lead
On March 8, the House of Representatives voted to support the creation of Speaker Nancy Pelosi's (D-CA) 15 Member Select Committee on Energy Independence and Global Warming by a 269 to 150 vote. The vote, which included 44 Republicans, is a victory for the Speaker, who was criticized by some colleagues for the idea when she initially proposed it.
Rep. Ed Markey (D-MA) was tapped to lead the Select Committee, whose mandate is to educate Congress on the issues and make recommendations for legislation, but not to legislate directly. Pelosi agreed to limit the duties of the Committee to assuage concerns of Energy and Commerce Committee Chairman John Dingell (D-MI) and other chairmen, who did not want to lose jurisdiction over the issue. Nevertheless, the Committee will likely be a kind of "bully pulpit" for the Speaker and others in the House leadership, who are pushing hard for the House to legislate caps on greenhouse gas (GHG) emissions and take other steps, such as increasing vehicle fuel efficiency standards.
House Republicans named Rep. James Sensenbrenner (R-WI) as the Ranking Republican on the Committee. Sensenbrenner is skeptical about the science of global warming and is not a shrinking violet, so he is expected to give Committee Chairman Markey a "run for the money." From the Northeast, Rep. John Larson (D-CT) was also named to the committee.
Sen. Bingaman Assures Better Emissions Bill
In April, Senate Energy and Natural Resources Committee (ENR) Chairman Jeff Bingaman (D-NM) will introduce his economy wide, "climate change" legislation soon, but said that he wants the White House to become more involved with the issue. Bingaman is confident that the bill will propose reductions in greenhouse gas (GHG) emissions "over a reasonable period."
The Bingaman bill will include a "safety valve," to prevent economic damage, he said. The safety valve is intended to allow emitters to purchase GHG credits instead of taking other steps to reduce emissions. Bingaman stated that he wants to do as much as possible to reduce GHG emissions "without damaging the economy." Bingaman supports a cap-and-trade bill that would cover the entire country, as opposed to creating a system with different caps in different regions, as currently exists. (The Regional Greenhouse Gas Initiative (RGGI), which covers nine Northeast and mid Atlantic states; and the new five-state Western Regional Climate Action Initiative may have different emissions targets for their respective regions.)
If the White House endorses legislative action on global warming, it is more likely a bill will advance, given that Congress probably does not have the votes to overturn a veto. Bingaman is hopeful that the Administration will get involved soon in the debate.
APPA Approves Climate Policy
On March 13, APPA's Legislative and Resolutions Committee approved a new climate policy, which advocates an economy-wide system that applies to all industry sectors. The ten-point plan does not call for any deadlines or specific emissions cuts, but supports Congress in its effort to credit industries that cut their GHG emissions before any bill becomes law. APPA also encourages lawmakers to examine how consumers will be affected by the implementation of a GHG emission reduction plan. The plan will be reviewed by APPA's membership in June at its national conference.
EEI to Continue Pushing Climate Debate
Even if a climate change cynic were to win the White House in 2008 or if Republicans were to win back control of Congress, the Edison Electric Institute - the national trade association for the investor-owned utilities - will continue to advocate a stronger U.S. policy on global warming.
EEI said that, in order for the U.S. to remain globally competitive, new energy technologies need to be developed. The group stated that the November elections did not persuade them to change their position on the issue and that they expect to maintain this new position, which advocates a more-pro-active climate change policy, regardless of the political outcome in 2008.
Senate Finance Hearing; Renewable Power Tax Credits Path Uncertain
Several tax incentives, including a 1.9 cent-per-kilowatt-hour credit, are set to expire at the end of 2008. Solar tax credits for business and residential investment also will expire then, as does the CREB program. As a result, there is significant discussion about how and when to extend those incentives.
Environmentalists, renewable energy advocates and a bipartisan group of Members want to extend the credits, to increase renewable energy investment. Although popular, under the pay-as-you-go system implemented by the new Democratic majority, these credits may be difficult to extend, due to budget constraints.
Senate Finance Committee Chairman Max Baucus (D-MT) said that, while he supports tax incentives for renewable energy, he has not made a decision on when to act on legislation. Baucus and Senate Majority leader Harry Reid (D-NV) both generally support the extensions but have given no indication as to when they expect to have a draft energy tax bill in place. Before this happens, the Senate Energy and Natural Resources Committee (ENR) will draft and introduce an energy policy bill. The bill is currently in the process of being developed but no set timeline has been established. . ENR Committee Chairman Bingaman would like an energy policy bill to focus on biofuels, energy and building efficiency and renewables and hopes to extend efficiency tax incentives beyond 2017.
House Ways and Means Committee Chairman Charlie Rangel (D-NY) said that he expects to have energy legislation through his committee by late spring. Also, Rep. Earl Pomeroy (D-ND) introduced a bill, which now has 70 co-sponsors, which would extend the production tax credit (PTC) to aid development of wind energy and other renewables, for five years.
One possible vehicle for tax extensions may be the farm bill, which is likely to include a large energy title that could provide incentives for alternative fuels and other sources. The House and Senate Committee are aleayd working on a draft bill to re-authorize a range of agriculture programs. Senate Finance Committee Ranking Member Charles Grassley (R-IA) said that extending the tax incentives in the farm bill has been discussed, including all of the incentives that will expire at the end of next year.
O'Malley Appoints Brenner to Maryland PSC
On March 15, Governor Martin O'Malley appointed FERC Deputy Chief Administrative Law Judge Lawrence Brenner to the Maryland Public Service Commission (PSC). Chairman of FERC, Joseph Kelliher commented that Brenner is "a seasoned administrative jurist who has served the Commission well. His deep expertise in energy law will serve the people of Maryland well. While his appointment is a loss for our Commission, it is a terrific gain for Maryland."
Brenner was the presiding judge in the LICAP/FCM settlement preceding.