Bingaman Holds Hearing on Energy Efficiency Promotion Act
On Monday, April 23, Senate Energy and Natural Resources Committee Chairman Jeff Bingaman (D-NM) held a hearing on S. 1115, the Energy Efficiency Promotion Act. In his opening statement, Bingaman announced his intention to mark-up, on an expedited basis, a series of bi-partisan energy bills, including S. 1115. Other likely items that could be marked-up include legislation to raise the production mandate for biofuels programs (S. 987), a study of carbon storage capacity in the United States (S. 731), authorization for a carbon sequestration research and development program (S.962), and, possibly, a yet-to-be introduced federal renewable portfolio standard. Ranking Member Pete Domenici (R-NM) also expressed his strong support for the bill, and said "while we don't have all the details sewn up yet, we are working on it."
S. 1115 expedites new DOE efficiency standards for appliances, such as dishwashers, refridgerators, clothes washers, among others; encourages federal and state fleet vehicles to reduce their petroleum consumption by 30 percent by 2016; authorizes funding to promote advanced lighting technologies; assists state and local governments to encourage energy efficiency by increasing weatherization funding to $750 million; and promotes the development of advanced vechicle batteries and energy storage. Most, if not all, of these provisions were advanced in the Energy Policy Act of 2005 (EPAct). S. 1115 makes some changes to those EPAct programs, including providing additional authority, and for some, expedited rulemaking authority.
Reps. Pomeroy and Lewis Introduce One-Year CREB Extension
At the request of the National Rural Electric Cooperative Association (NRECA), Reps. Earl Pomeroy (D-ND) and Ron Lewis (R-KY) introduced H.R. 1965, a bill that would extend the Clean Renewable Energy Bond (CREB) program for one year (thru December 31, 2009) and provide a bond allocation volume cap of $1 billion for 2008 and $1 billion for 2009. Additionally, the bill would limit the amount of CREB allocations to "governmental borrowers" to $625 million for 2008 and $625 million for 2009. Reps. Pomeroy and Lewis are both members of the House Ways and Means Committee.
The bill, which is rather short, also provides some technical modifications.
While the coop bill is substantively different from the bill advanced by Reps. McDermott (D-WA) and Ramstad (R-NM), and supported by the American Public Power Association (APPA), it demonstrates broader support for the CREB program among members of the powerful tax writing committee. It is likely that Chairman of the Select Revenue Subcommittee, Rep. Richard Neal (D-MA), will meld the two bills (H.R. 1821 & H.R. 1965) together when developing an energy tax title.
Neal Holds Hearing on Energy Tax Policy
On April 19, House Ways and Means Select Revenue Measures Subcommittee Chairman Richard Neal (D-MA) held the first of two hearings on energy and tax policy, with a session that focused on the framework of tax incentives to encourage development of alternative sources of energy.
Witnesses included representatives from the wind, biomass, geothermal, solar, fuel cell and clean coal industries. Several of the witnesses mentioned support for extending the production tax credit (PTC), the investment tax credit (ITC) and clean renewable energy bonds (CREBs).
A second hearing is scheduled for Tuesday, April 24, on Member proposals on tax incentives for alternative energy sources. Rep. Jim McDermott (D-WA), a member of the Ways and Means Committee, is expected to testify in support of his Clean Energy Renewable Bond bill (HR 1821).
Members of the Ways and Means Committee are working to develop an energy tax package, which could be rolled into a larger energy/climate bill and considered by the full House, possibly as early as July or early September. The Senate Finance Committee is also working on a similar timeframe with its energy tax legislation.
Green Mountain Power Unveils Program to Allow Customers to be "Carbon Neutral"
On Monday, April 23, Green Mountain Power announced a program to allow its customers to neutralize their "carbon footprint" through renewable power and home-heating and driving offsets. The utility also announced that its own operations are carbon neutral - meaning it will offset the carbon dioxide-equivalent emissions of the energy used by its buildings, trucks, and business operations. The program is called "choose2bgreen" and will be available to Green Mountain Power's 90,000 customers.
The initial plan will allow customers to sign up for three programs on the utility's Web site: Greener GMP, CoolHome and CoolDriver. Greener GMP allows customers to buy energy from certified renewable resources equal to some or all of their monthly electricity use. CoolDriver and CoolHome will allow customers to offset the carbon emissions associated with driving their cars and heating their homes, respectively.
According to Green Mountain Power, the cost of participating in the programs ranges from about $3 per month -- the cost of offsetting the emissions from a small car -- to about $50 per month, the cost of buying 100 percent renewable energy and offsetting both home-heating and driving a large sport utility vehicle.
Analysts Say Utilities, not Consumers, Benefit from Deregulated Electricity Markets
According to recent trade press, economists and consumers who spoke at a Federal Trade Commission (FTC) conference stated that, investor-owned utilities (IOUs) benefit more than consumers in deregulated wholesale markets. The speakers argued that, although IOUs have cut costs and increased profits, the savings have not been realized by consumers in the form of lower electricity rates.
Virtually all speakers agreed that deregulation has been more difficult than anticipated. The Electricity Consumers Resource Council (ELCON) argued that, although competition has major problems, they can be fixed. Other consumer groups, such as "Power in the Public Interest" maintained that the regional transmission organization (RTO) structure and competition are incompatible with the benefits that electricity markets are expected to deliver and that the industry should consider returning to "cost of service" rates.
John Kelly, the director of economics and research at the American Public Power Association (APPA), stated, "The efficiency of the operating costs is important, but there is another type of efficiency that's important, that's price efficiency." APPA has often made the point that electricity prices have increased more in competitive markets than in regulated ones.
Strauss & Pomper Named "Super Lawyers" by Peers
On April 17, the law firm Spiegel & McDiarmid announced that two of its lawyers, Scott Strauss and David Pomper, would be included in the 2007 issue of Washington DC Super Lawyers. Washington DC Super Lawyers evaluates the top 5 percent of attorneys in the DC metro area, based upon peer recognition and professional achievement. The directory surveys 35,000 lawyers in Washington, DC. Super Lawyers was first published in 1991 and attorneys cannot pay to be included and cannot vote for themselves; they are chosen essentially by a multi-step evaluation by peers and accomplishments.
Strauss specializes in litigation on behalf of consumer-owned utilities, particularly in New England, and is experienced in proceedings regarding wholesale market design, including capacity markets, transmission rates and utility mergers.