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NEPPA e-Weekly Legislative Update DC Report 9-2-08

Congressional Schedule '08

Congress adjourned on August 1 for its customary month-long August recess.  Both the House and Senate will return to Washington, DC, on September 8.  The year-end target adjournment date is September 26, to allow Members to return to their districts to campaign prior to the November 4 general election.  It will be a busy three weeks, with an ambitious legislative agenda, including stalled issues such as FY09 appropriations, an energy bill and extenders legislation, including energy tax incentives.

Clean Energy Industries Step up Political Game in Denver & Minnesota

The American Wind Energy Association (AWEA) arrived in Denver last week and worked to increase their profile with Democrats, renting out a historic downtown brewery.   The association was able to draw political heavyweights such as former Senate Majority Leader Tom Daschle (D-SD) to its party.  In contrast to the industry's minimal presence at the 2004 convention, AWEA has supplanted the auto industry as a new convention heavyweight, taking the opportunity to announce the opening of three wind turbine manufacturing plants in Colorado.  With much at stake in the continued debate over energy and climate legislation, the wind and solar industries are hoping the coming election, which favors Democrats, could finally result in a renewal of the expiring renewable tax incentives.

Like the wind industry, clean coal had virtually no presence in 2004.  This election year, the American Coalition for Clean Coal Electricity is spending $1.7 million on a multi-pronged advertising campaign in Denver and the Twin Cities, where the Republican convention is currently being held. That campaign includes advertising in the airports and, putting "coal facts" in the hands of fans in both Denver and Minneapolis-St Paul.

The solar industry has also radically increased its coverage of the conventions.  In 2004, the Solar Energy Industries Association (SEIA) sent two people to the conventions and did not have a formal presence.  This year, in both Denver and Minneapolis-St. Paul, the association is a high-level donor while also hosting large parties.

AEP Will Back Expanded FERC Transmission Siting Powers

On August 25, Energy Washington reported that American Electric Power (AEP) will likely back a proposal by FERC Chairman Joseph Kelliher to expand federal powers to site new transmission projects.  The story is the latest indication that Kelliher's comments, made at a July hearing of the Senate Energy and Natural Resources Committee, continue to resonate among electric stakeholders, especially with transmission planning on the rise.  AEP does not predict this dramatic change in federal policy to come soon.  In the meantime, the utility would like to see more designations of National Interest Electric Transmission Corridors (NIETC), where FERC's current backstop authority can be applied.  It also supports a strong DOE role in coordinating activities of multiple federal agencies for projects that cross federal lands, per the Energy Policy Act of 2005.

AEP and others complain that federal agencies are too slow in approving siting studies required for transmission lines to cross federal lands.  An AEP source said that it takes three years to complete construction of a new transmission project, while it takes 16 years to site it.  Because public awareness is relatively low on transmission concerns, Congress has been slow to consider a new siting policy.  FERC's process for natural gas pipelines should be the model for transmission siting, echoing the remarks of chairman Kelliher at a July 31 Senate hearing on transmission. 

Published Tuesday, September 02, 2008 3:57 PM by Staff

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