APPA Holds Grassroots' EMRI Summit; NEPPA Participates On January 31, NEPPA's Pat Hyland and Morgan Meguire's Lori Pickford and Tom Porter attended the APPA Electric Market Reform Initiative (EMRI) "Grassroots Summit" in Washington, DC. APPA organized the event with public relations firm Manning, Selvage and Lee (MS&L), which has been retained by APPA to manage the EMRI grassroots/media campaign.
The EMRI grassroots campaign aims to demonstrate in targeted states (PA, OH, NJ, MA, IL, MI and NY) that the unfettered wholesale power market is driving costs to unreasonable levels, causing an economic crisis, and creating disincentives to adding capacity and investing in renewable energy sources. In order to seize the debate from the opposition and define the competition, MS&L will train EMRI representatives in the aforementioned states and coordinate an integrated advocacy program involving media, lobbying and grassroots efforts. Pat Hyland will be looking to NEPPA members to help advance this message and broaden support in Massachusetts, as that is a target state. Other NEPPA members will be able to utilize various documents, (e.g. draft letters, Op-Ed pieces and studies), from the APPA EMRI "Tool Kit" to communicate within their states as well. Tactics will include: media outreach, speaking opportunities, legislative briefings, and resolutions of support.
During the Summit, APPA rolled-out three draft objectives of the campaign to push FERC and Congress to implement changes. Those include:
- A market structure that is fair and reasonable, better reflecting the costs incurred in generating electricity;
- Improved and more timely transparency and accountability; and
- A consumer-focused system that assures we have the power supplies we need to meet our future needs, while addressing the environmental challenges we face.
In addition, APPA is working to develop a draft legislative proposal to address these market concerns. Joe Nipper said that the legislation may be in draft form for circulation at the upcoming February 2008 legislative rally. Further, he said that APPA will likely look to comments submitted in response to FERC's June 2007 Advanced Notice of Proposed Rulemaking (ANOPR) regarding wholesale competition in regions with organized electric markets.
Stimulus Package Passes Senate Committee; CREBs & LIHEAP Added
On January 30, the Senate Finance Committee passed a $158 billion economic stimulus package, with Sens. Maria Cantwell (D-WA) and Olympia Snowe (R-ME) spearheading a successful effort to add a package of clean energy and energy-efficiency tax incentives to the bill. Separately, Sen. Jack Reed (D-RI) and Susan Collins (R-ME) joined together to advocate for inclusion of an additional $1 billion to the Low Income Home Energy Assistance Program (LIHEAP), to be offered as an amendment on the Senate floor. The ultimate fate of the energy-related incentives, and the LIHEAP increase, remains unclear.
Of interest to NEPPA on the energy tax side, is the inclusion in Finance Committee-passed stimulus bill of a one-year extension (through 2009) of Clean Renewable Energy Bonds (CREBs) for consumer-owned utilities, with an additional $400 million authorized in allocations. Other energy tax incentives included in the bill are one-year extensions of the production tax credit (PTC) for renewable energy projects and the investment tax credit (ITC) for solar energy, as well as extensions of several energy-efficiency tax incentives. Morgan Meguire worked closely with Sens. Snowe and Cantwell's staffs to help garner the needed votes to pass the measure out of Committee. From New England, Sen. John Kerry (D-MA) supported the inclusion of the clean energy tax incentives in Committee; Sen. John Sununu (R-NH) (a new member of the Committee), voted against it.
As mentioned above, the Reid-Collins Senate amendment would increase LIHEAP funding by $1 billion, half of which would be allocated under the regular formula, and the other half distributed under an emergency contingency formula. Sens. Reed and Collins offices have contacted Morgan Meguire to request NEPPA's assistance in garnering the needed support for the Senate amendment to the House economic stimulus package.
In addition, NEPPA sent a January 28 letter to Senate Leaders Harry Reid (D-NV) and Mitch McConnell (R-KY) advocating for the inclusion of LIHEAP funding as part of any economic stimulus package. In the letter, Hyland said, "Families in New England are experiencing the highest electric rates in the country. By providing assistance to those families, who are struggling to meet their monthly electric bills, would be an immediate way to help stimulate the economy."
Garnering the 60 votes needed to move the stimulus measure in the Senate will be difficult. Minority Leader McConnell, supports the House-passed version, which costs less and was negotiated by the White House. A vote on the Senate modified economic stimulus package (including the energy tax incentives and increased LIHEAP funding) is expected some time today (2/6). It is unclear, at this time, if the measure will pass.
If the Senate adopts the modified version of the bill, it will need to go to conference with the House. The House passed a $146 billion economic stimulus bill on January 29, which does not include renewable energy incentives, among other differences. If there is a conference, Morgan Meguire will work to ensure that the CREB extension, with modifications, as well as the LIHEAP funding is retained in the final version of the bill.
President Releases FY 2009 Budget
On February 4, the White House released the President's proposed budget for FY 09. The proposal is non-binding, but provides a "blueprint" for Congress in preparing its spending bills.
Of interest to NEPPA, the President's FY 09 budget:
- Eliminates all funding for the Renewable Energy Production Incentive (REPI) program. The program, which provides a production incentive for consumer-owned renewable energy projects, has received roughly $5 million each year;
- Eliminates all funding for the Weatherization Assistance program, which was funded at $250 million in FY 2008.
- Cuts funding for the Low-Income Home Energy Assistance Program (LIHEAP). The budget provides for $1.7 billion in block grants and $300 million in contingency funds, a 22% cut from the total FY 08 level.
The budget can be found at http://www.budget.gov/.
House Energy Committee Releases Second Climate Change White Paper
On January 30, House Energy and Commerce Committee Chairman John Dingell (D-MI) and Energy and Air Quality Subcommittee Chairman Rick Boucher (D-VA) released a White Paper addressing U.S. competitiveness concerns and the need to engage developing countries with regard to climate change. They also announced that the committee will hold a hearing on these issues on February 28. A witness list is not yet available.
The White Paper examines the need to encourage developing countries to curb their greenhouse gas emissions and includes an analysis of current proposals to achieve the dual goals of global emissions reductions and maintenance of continued U.S. industrial competitiveness. In the memo accompanying the paper, the Chairmen state that it is their "intention to present a final measure to the President to be signed into law before the Congress adjourns this year." Most inside observers, however, view this as overly ambitious.
This is the second in a series of White Papers related to climate change. The first paper, released in October, discussed the benefits of a cap-and-trade system and the sectors of the economy that should be included.
Senate Hearing on Carbon Capture and Sequestration
On January 30, the Senate Committee on Energy and Natural Resources held a hearing to consider carbon capture, transportation and sequestration and receive testimony on S. 2323 offered by Sen. Kerry (D-MA), and S. 2144 by Sen. Norm Coleman (R-MN).
S. 2323, the Carbon Capture and Storage Technology Act of 2007, would direct the establishment of two DOE grant programs ($4 billion total) for commercial carbon dioxide sequestration and capture projects. Sen. Kerry testified to the urgency and necessity of implementing carbon capture and sequestration technologies. With coal use rising in China, Sen. Kerry believes his bill will provide the U.S. with the ability to move first on developing the capture and sequestration technologies that can be deployed in the U.S. and China.
S. 2144, the CO2 Pipeline Study Act, would require DOE to conduct a feasibility study on construction and operation of pipelines and carbon dioxide sequestration facilities. Sen. Coleman testified to the multiple concerns about costs and risks associated with carbon capture, storage, and transportation and the need to develop a way to use coal without jeopardizing the climate.
Other witnesses included senior officials from: the Department of the Interior, Federal Energy Regulatory Commission, Department of Transportation, Environmental Protection Agency, Department of Energy, Arkansas Oil and Gas Commission, Environmental Defense, and Denbury Resources. Most of their testimony reflected on what the Administration, states, and the private sector are already doing in regard to carbon capture sequestration and transportation.