Transcript APPA Point of Contact

Policy Makers Council
2010 Summer Meeting
Joy Ditto
and
APPA Government Relations Staff
July 19, 2010
APPA Overview
• The American Public Power Association (APPA) is the service
organization for the nation's more than 2,000 community-owned
electric utilities that serve more than 45 million Americans.
• It was created in 1940 as a non-profit, non-partisan organization,
and its purpose is to advance the public policy interests of its
members and their consumers, and provide member services to
ensure adequate, reliable electricity at a reasonable price with the
proper protection of the environment.
• APPA is governed by a regionally representative Board.
• Approximately 62 staff work in APPA’s office in D.C., with eight of
those in the government relations department.
Overview
•
•
•
•
•
•
•
•
•
Climate change
Energy/electricity policy
Tax and financing issues
Rail customer legislation
Financial regulatory overhaul
Telecommunications
Cyber security
Power marketing administrations
Electricity Markets
Climate Change Timeline
May 2008
Lieberman-Warner Climate Security Act
of 2008 (S.3036) is introduced
October 2006
APPA Climate Change
CEO Task Force is formed
January 2007
June 2009
American Clean Energy &
Security Act (H.R. 2454) passes House
January 2008
January 2009
January 2010
October 2006
April 2007
U.S. Supreme Court rules in favor of EPA
to regulate carbon and other green house gases
May 2010
American Power Act
is introduced
July 2010
November 2009
Clean Energy Jobs &
American Power Act (S. 1733)
killed in committee
July 2010
Introduction of utility only
cap-and-trade bills
H.R. 2454 (Waxman-Markey) or American
Clean Energy and Security Act of 2009
• H.R. 2454 passed the House of Representatives 219212 on June 26, 2009.
• Main Provisions:
- National combined energy efficiency and renewable
energy standard
- Smart Grid/Transmission planning & siting
- Cap and Trade:
- Incremental CO2 reductions by year
- Allocation/auction of allowances
And on to the Senate…S.1733
• S. 1733 was stalled in full committee due to a boycott by
Committee Republicans who requested a more detailed
EPA analysis of the bill.
• Major Provisions:
- Almost identical to H.R. 2454 particularly as it is related
to the cap and trade provisions
American Power Act
(Kerry-Lieberman Bill)
•
•
•
•
•
The American Power Act establishes at cap and trade regime with similar
targets and timelines as H.R. 2454 and S. 1733.
Firm price collar: $25/ton ceiling, $10/ton floor plus escalation @ CPI + 5%.
Significant additional allowances in first 8 years.
Attempts to pre-empt (improvement over H.R. 2454) the Clean Air Act for
GHGs and of state and regional programs
Cap and trade for electric utilities only in 2013, with industry phase in six
years later
Where Are We Now?
Climate Change
• The President and Majority Leader Reid remain
committed to passing legislation to address the
Gulf oil spill, energy policy, and climate change.
• Majority Leader Harry Reid plans to bring his
energy package to the Senate floor the week of
July 26.
• No clear indication of what package will contain.
Obstacles to Enactment of
Climate Legislation
• The obstacles to legislation are large:
– Time (2010 mid-term elections)
– Controversy – most major issues remain unresolved
– Complexity – few understand the important details; so many
committees involved
– Other priorities – Kagen Supreme Court confirmation,
appropriations, immigration
– Energy and environmental issues tend to be more regional than
partisan
Major Policies on the Table
• The American Clean Energy Leadership Act (S. 1462),
which passed by the Senate Energy and Natural
Resources Committee in June of 2009. This is an energy
policy only bill, no cap and trade.
• The Practical Energy and Climate Plan Act (S. 3464),
introduced by Senators Dick Lugar (R-IN), Lisa
Murkowski (R-AK), and Lindsey Graham (R-SC), which
is an energy only and tax incentives bill.
Major Policies on the Table
(continued)
• A Utility-Only Cap: Two bills have been released to date
by Sen. Bingaman and Senators Kerry and Lieberman.
• The American Power Act introduced by Senators John
Kerry (D-MA) and Joseph Lieberman (I-CT) in May of
2010. Economy wide cap and trade bill which includes
some energy provisions.
Major Policies on the Table
(continued)
• The CLEAR Act (S. 2877), which was introduced by
Senators Maria Cantwell (D-WA) and Susan Collins (RME) in November of 2009. This is an economy-wide
program only with no energy provisions.
APPA Point of Contact: James Williams (Lead) & all other lobbyists
Who will Win the Race to Regulate
CO2 first?
And If Congress Doesn’t Act, We Still Have
Utility Regulations
14
Energy Legislation
•
The American Clean Energy Leadership Act (S. 1462) , includes the following Major Provisions:
– Clean Energy Technology Development
– Transmission Planning
– Transmission Siting
– Transmission Cost Allocation
– Transmission Rights to Support New Generation Development
– Renewable Energy Standard/Energy Efficiency
– Plug-in Hybrid Electric Vehicles
– Energy Efficiency
– Cyber Security
– Nuclear Waste
– Carbon Capture and Storage
– Energy Markets
APPA Point of Contact: Joy Ditto
Uncle Sam Wants Comparable
Incentives for Public Power
Tax Issues
•
•
•
•
•
APPA’s priorities in tax legislation include:
CREBS-Lifting the cap on Clean Renewable Energy Bonds. Additional
flexibility (removing non-utilities from the program, extending maturity date,
etc.).
Treasury Grant Program-Extension of and public power eligibility for the
30% grant conversion of the production/investment tax credit authorized for
private entities in the economic stimulus bill. This program ends Jan. 1,
2011.
Nuclear PTC-Allowing public power recipients of the nuclear production tax
credit to trade their credit with their private investment partners.
Tax-Exempt Bonds-Increased flexibility in the use of tax-exempt bonds by
eliminating or easing “private use” restrictions.
APPA Point of Contact: Amy Hille
Rail Customer Legislation
•
Two “tracks” – pun intended:
– Bills to put railroads under major antitrust
laws – H.R. 233 and S. 146, have been
passed by House and Senate Judiciary
Committees.
– Legislation to reform the Surface
Transportation Board’s practices and
ratemaking – S. 2889 passed the Senate
Commerce, Science and Transportation
Committee in December 2009.
– Politics of this issue continue to be
extremely difficult, but the best progress
has been made in 20 years to get legislation
enacted.
APPA Point of Contact: Corry Marshall
Financial Regulatory Overhaul
•
Major financial reform legislation, which includes
additional regulation of the derivatives markets, will
be signed into law this week.
• APPA supported the “end user” exemption from
mandatory clearing for hedging included in bill.
• APPA also supported the clear delineation of FERC
vs. CFTC jurisdiction for purposes of regulating
financial transmission rights in RTO markets that
was included in the final bill.
• APPA supported the easing of a fiduciary duty
requirement that would have been imposed on swap
dealers swapping with municipal governments. The
language instead requires a “standard of care.”
APPA Point of Contact: Amy Hille
Telecommunications
•
FCC has released the National Broadband
Plan. Congress must now act on the
recommendations included therein. Two
major areas of interest:
- Pole attachments:
1. FCC has proposed doing away with
muni, coop, railroad exemption.
2. The FCC issued a Further Notice of
Proposed Rulemaking on pole
attachments. Comments are due
August 16, 2010.
- Community broadband. FCC has
indicated support for expanding.
APPA Point of Contact: Corry Marshall
Cyber Security
Cyber Security
• Lots of interest in more regulation of electric industry related
to cyber security.
• Industry is united in the view that any new authority should
build on current NERC/FERC framework and be narrowly
targeted to deal with cyber emergencies.
• The GRID Act (H.R. 5026) passed the House on June 9,
2010; industry unhappy with bill.
• Activity also in Senate Intelligence and DHS committees.
APPA Point of Contact: Joy Ditto
Power Marketing Administrations
• Budget process has been quiet over the last few years.
• Big issues overall, however, are related to hydro O&M,
dam safety, and the new transmission infrastructure
program (TIP) at WAPA.
• Hoover Power Allocation Act of 2010 (H.R. 4349) passed
the House on June 8, 2010. Senate may consider H.R.
4349 or a companion bill.
APPA Point of Contact: Corry Marshall and Joy Ditto
Electricity: At What Cost?
Electricity Markets
• RTO market problems continue to rank high on APPA’s
priority list, and Congress seems most interested in the
transparency issue. Senator Schumer is contemplating
legislation on this issue, for example.
• FERC’s oversight of and attitude toward these markets,
however, continues to be problematic, as evidenced by a
recent process related to RTO metrics.
APPA Point of Contact: Desmarie Waterhouse & Meghan McLaughlin
Other Issues
• Nuclear: Desmarie and Joy
• Coal-Ash: James
• Smart Grid/Data Privacy: Corry
• Clean Air Interstate Rule: James
APPA Resources:
Your APPA Govt. Relations Staff
APPA Resources
• Website: www.appanet.org
• Government Relations Staff:
Joe Nipper: 202.467.2931; [email protected]
Joy Ditto: 202.467.2954; [email protected]
Amy Hille: 202.467.2929; [email protected]
Corry Marshall: 202.467.2975; [email protected]
Meghan McLaughlin: 202.467.2934; [email protected]
Theresa Pugh: 202.467.2943; [email protected]
Monica Stowe: 202.467.2959; [email protected]
Desmarie Waterhouse: 202.467.2930; [email protected]
James Williams: 202.467.2928; [email protected]