November 22, Public Policy Agenda Number 3.

Transcription

1 Public Policy Agenda Number 3. November 22, 2011 The first session of the 112 th Congress convened on January 5, The following Legislative Issues Update outlines the status of the Boardapproved 2011 Legislative Agenda as well as other relevant federal issues. Issue Status as of November 22, CAP FEDERAL LEGISLATIVE AGENDA The National Renewable Energy Laboratory remains on schedule to release a draft of the first phase of the Navajo Generating Station study in December. EPA Rulemaking regarding Navajo Generating Station (NGS) Emissions Controls - Continue efforts to engage elected officials, stakeholders, and governmental agencies in influencing the EPA to apply due weight to the economic impacts of its BART determination for NGS. On a related matter, EPA announced on November 9 a consent decree with environmental organizations that would establish a schedule for setting standards for improving visibility and air quality in Class I national parks and wilderness areas. Under the terms of the consent decree, EPA must issue notice of a final rulemaking for promulgation of a FIP and/or approval of a SIP for Arizona by November 15, Recently, the Empower States Act by Senator Hoeven (R-ND) and the Regional Haze Federalism Act by Reps. Berg (R- ND) and Lankford (R-OK), were introduced to stop EPA from rejecting states plans for cleaning up haze. The bills would allow states to revoke a federal implementation plan that deals with visibility and propose their own plan in its place. Climate Change and Energy Legislation - Monitor legislative efforts and respond appropriately to achieve recognition that the energy used for CAP pumping and Navajo Surplus is on par with other energy providers at NGS. After passing a number of energy and environmental regulatory bills last month, the House leaders are now focused on a series of bills designed to increase domestic energy production. The Senate is still in discussions over which energy bills they will bring to the floor for votes. As the Congress works to move appropriations bills through smaller minibus packages, amendments to limit the regulatory process continue to be proposed.

2 EPA Water Transfer Rule - Engage in all activities necessary to convince the EPA not to withdraw the existing rule or modify the rule in any way that negatively impacts CAP. Post-2017 Hoover Power Reallocation - Work with the appropriate stakeholders to seek final passage of this legislation. Clean Water Restoration Act - Continue to oppose expansion of the coverage of the Clean Water Act from "navigable waters of the United States" to "waters of the United States." Navajo/Hopi Water Rights Settlement Legislation - Continue to seek a settlement of these water rights claims and support legislation necessary and appropriate to implement a settlement. Salinity Control Funding - Support federal funding of salinity control activities. EPA Rulemaking, Greenhouse Gas Emissions - Monitor proposals to regulate greenhouse gas emissions from large facilities under the Clean Air Act. No update to report at this time. No update to report at this time. An amendment was introduced to the FY2012 Energy Water Appropriations bill aimed at halting implementation of an EPAissued guidance that instructs federal regulators to more broadly interpret the Clean Water Act. Committee leaders in the House and Senate with jurisdiction over the Clean Water Act have sent a letter to the EPA Administrator and the Assistant Secretary of the Army for Civil Works urging them to formally withdraw the proposed guidance on Clean Water Act jurisdiction. In October, EPA began outreach to states, local governments and tribes to solicit their additional comments prior to beginning the formal rulemaking process. EPA has requested written comments from these entities by December 15; a formal rule is expected to be issued early next year. Talks continue between parties on the Navajo-Hopi Water Settlement legislation. No update to report at this time. Another attempt to block the EPA from regulating greenhouse gases occurred in the Senate when an Energy Jobs bill was defeated Additional amendments are expected during the appropriations process. On November 18 the EPA Administrator announced that a proposal for regulating

3 EPA Final Rule, Reporting of Greenhouse Gases - Monitor implementation of final rule that mandates reporting of greenhouse gases. National Ambient Air Quality Standards (NAAQS) for Ozone - Monitor EPA's promulgation of new NAAQS for ozone. EPA Rule, Hazardous Air Pollutants (HAP), Maximum Achievable Control Technology (MACT) - Monitor development of draft rule (due March 2011) and final rule (due November 2011) for potential impact on NGS. EPA Final Rule, Drinking Water Contaminant Candidate List (CCL3) - Monitor the implementation of the final rule on the Drinking Water Contaminant Candidate List 3. Coming Together for Clean Water: EPA's Strategy for Achieving Clean Water - Monitor this draft strategy for possible impacts to CAP operations. carbon emissions from power plants has been sent to the White House for review, a process that can take about 90 days. The proposal reportedly deals with new power plants, rather than existing plants, but the details of the proposal will not be known until it is released early next year. No update to report at this time. No update to report at this time. The EPA sent the White House its final plan for the Utility MACT on November 14. This is one step closer to the release of the rule, which is expected to occur on or before December 16. No update to report at this time. No update to report at this time. OTHER BILLS/LEGISLATIVE ISSUES OF INTEREST Public Employee Pension No update to report at this time. Transparency Act (H.R. 567 and S. 347) Hydropower Improvement No update to report at this time. Act (S.629) H.R. 795, The Small Scale No update to report at this time. Hydropower Improvement Act of 2011

4 H.R. 2842, the Bureau of Reclamation Small Conduit Hydropower Development and Rural Jobs Act of 2011 H.R. 2915, the American Taxpayer and Western Area Power Administration Customer Protection Act of 2011 The Natural Resources Committee passed this bill on October 5. The Natural Resources Committee passed this bill on October 5 th. If you have any questions or would like more information regarding any of the issues contained in this report, please contact CAP Business Planning,

5 Federal Legislative Issues Update CAP Public Policy Committee December 1, 2011 Marie Pearthree, Assistant General Manager

6 Priority Issues Navajo Generating Station NREL is on track to complete a draft of the NGS study by the end of December. Most of the draft report has been sent to a Peer Review Committee. The peer-reviewed report is expected to be distributed to the Executive Committee in early December. Separate from but related to NGS issues, EPA has announced an agreement to complete state or federal plans to improve visibility in Class I areas. Plans for Arizona are to be completed by November 15, 2012.

7 Priority Issues Climate Change and Energy Legislation House leaders are now focused on a series of bills designed to increase domestic energy production. The Senate is still in discussions over which energy bills they will bring to the floor for votes. Amendments continue to be proposed to appropriations minibus packages to limit the regulatory process.

8 EPA Rulemaking Utility Maximum Achievable Control Technology (MACT) The EPA sent the White House its final plan for the Utility MACT rule on November 14th. Release of the proposed rule is expected to occur by December 16th.

9 EPA Rulemaking Clean Water Restoration Act An amendment was introduced to a Senate appropriations bill to stop EPA-issued guidance that more broadly interprets the Clean Water Act. House and Senate committee leaders have urged EPA and the U.S. Army Corps of Engineers to withdraw the proposed guidance. EPA has solicited states, local governments and tribes to provide comments on the proposed guidance prior to beginning the formal rulemaking process. EPA has requested written comments from these entities by December 15th; a formal rule is expected to be issued early next year.

10 EPA Rulemaking Greenhouse Gas Emissions On November 18th the EPA Administrator announced that a proposal for regulating carbon emissions from power plants has been sent to the White House for review, a process that can take about 90 days. The proposal reportedly deals with new power plants, rather than existing plants, but details of the proposal will not be known until it is released early next year.

11 Questions?

12 Public Policy Agenda Number 3. Attachment 2. TO: FR: David Modeer and CAWCD Board Terry Bracy, Tracy Tucker, and Brandon Avila DA: November 15, 2011 RE: Federal Legislative Report for Board Meeting Navajo Generating Station The National Renewable Energy Laboratory remains on schedule to release a draft of the first phase of the Navajo Generating Station study in December. The peer-reviewers have been assigned and are presently reviewing most components of the study. Additionally, discussions continue between stakeholders, Congressional and Administration officials on the impacts of a decision on NGS. On a separate, but related note, on November 9 EPA announced a regulatory schedule to set standards aimed at improving visibility and air quality in national parks and wilderness areas. A consent decree with environmental organizations has been signed that sets deadlines for approval of plans to cut haze-causing pollution from larger coal-fired power plants. Under the terms of the consent decree, by May 15, 2012, EPA must issue a notice of proposed rulemaking for the state of Arizona, and by November 15, 2012, EPA must issue notice of a final rulemaking for promulgation of a FIP and/or approval of a SIP for the state. The public notice of the Consent Decree must be delivered for publication in the Federal Register within 10 business days after the lodging of the Consent Decree with the Court, and public comments on the agreement will be accepted by EPA for 30 days following publication. In response to EPA s action on regional haze, two bills have been introduced (the "Empower States Act" by Senator Hoeven (R-ND) and the Regional Haze Federalism Act by Reps. Berg (R-ND) and Lankford (R-OK)) to stop EPA from rejecting states plans for cleaning up haze. The bills would allow states to revoke a federal implementation plan that deals with visibility and propose a state's own plan in its place. EPA would not be allowed to overturn a state plan unless the state does an insufficient job of balancing the visibility benefits and the economic costs of implementing the rules, and companies would be given at least five years to comply with any federal plan rather than three years. The states of North Dakota and Oklahoma previously issued their plans for installing new emissions controls at coal-fired power plants, but EPA rejected them for not going far enough. We are monitoring these bills closely.

13 Hoover Power Act The House and Senate have both passed the Hoover Power Allocation Act (H.R. 479/S.519). However, because the Senate took up a technical correcting resolution to the measure, it will be held until the House approves the correction. The legislation, which passed unanimously in both chambers, could then go to the President. We are working with leaders in the House on an effort to place the bill on the suspension of the rules calendar. This procedure was used in the original passage of the bill (H.R. 479) in October and is generally designated for non-controversial measures. House Energy Package The House Natural Resources Committee is putting together an energy package as part of a new plan by Speaker Boehner to generate revenue for infrastructure development and job creation. Four measures are being drafted that would expand onshore and offshore oil and gas production, open the Arctic National Wildlife Refuge coastal plain to oil and gas drilling, remove restrictions on developing oil shale resources in the West, and lift regulations limiting coal consumption and exports. American Made Energy and Infrastructure Jobs Act Will closely mirror legislation passed by the House in May that would require the Administration to include all promising offshore areas in its five year offshore leasing plan. Expands revenue sharing from offshore oil and gas production to all coastal states. Alaskan Energy for American Jobs Act Would authorize oil and gas exploration in the Arctic National Wildlife Refuge coastal plain. Protecting Investment in Oil The Next Generation of Environmental, Energy and Resource Security Act Would accelerate development of unconventional oil shale deposits in western states that currently are still in the research stage. Coal Miner Employment and Domestic Energy Infrastructure Protection Act Would restrict Interior from limiting coal consumption or exports. The bills are expected to go through Subcommittees of jurisdiction and will go to the floor in the next few weeks. The bills have not yet been officially introduced. 2

14 Cross-State Air Pollution Rule (SJ 27) Last Thursday the Senate voted, 41-56, against Sen. Paul s (R-KY) resolution (SJ 27) to nullify the EPA s Cross-State Air Pollution Rule (CSAPR) that targets sulfur dioxide and nitrogen oxide emissions from power plants in 27 eastern states. Many states oppose the rule on grounds that it is substantially different from the version proposed last year. They also argue EPA has departed from past practice in seeking to regulate SO 2 and NOx directly rather than allowing covered states to formulate their own implementation plans. The deadline for compliance would be 2012 for the first phase under the rule, and 2015 for the second phase. Prior to the Senate vote, the White House issued a formal veto threat. Cross-State Air Pollution Rule and Utility MACT Bill (S. 1833) Senators Manchin (D-WV) and Coats (R-IN) recently introduced the Fair Compliance Act of 2011 (S. 1833), that would give utilities additional years to comply with both the Utility MACT and the Cross-State Air Pollution Rule (CSAPR), placing the deadline for both at That would represent a two-year extension for Utility MACT and a threeyear extension for each of two phases for the cross-state rule -- a likely six-year extension. While the bill would not reduce the stringency of the Cross-State Air Pollution Rule for sulfur dioxide and nitrogen oxides or of the Utility MACT rule for mercury, it would provide additional time for both rules. Under the current EPA rules, utilities would be required to comply with the Utility MACT rule by Jan. 1, The draft legislation would set CSAPR's phase one at 2015 and require compliance with the Utility MACT and phase two CSAPR rules by Yesterday, the EPA sent the White House its final plan for the Utility MACT. This is one step closer to the release of the rule, which was announced to occur on December 16. Senate Infrastructure Jobs Bill and Energy Alternative The Senate last week voted against two infrastructure jobs bills, including an alternative that targeted EPA regulations. The $60 billion infrastructure spending bill (S. 1769), including a $10 billion infrastructure bank and a $50 billion transportation investment, failed on a vote. Immediately afterward, an alternative bill (S. 1786) that would have extended the surface transportation program by two years while scaling back EPA regulations also failed on a vote. 3

15 The energy alternative bill would have required that all rules with an economic impact of $100 million or more be approved by Congress before they take effect. The House Judiciary Committee passed a similar measure (H.R. 10) last month. The bill also would roll back EPA's rules for industrial boilers, incinerators and cement kilns, barring the agency from crafting equally stringent standards in the future and giving businesses five years to comply with future versions of the regulations after they are finalized. The House has passed both the Boiler MACT (H.R. 2250) and cement kiln bills (H.R. 2681), and both bills have also been introduced in the Senate. Clean Water Act Senators Barrasso (R-WY) and Heller (R-NV) have proposed an amendment to the FY2012 Energy and Water Development Appropriations Act that would block funding for implementation of the Administration s policy aimed at expanding federal Clean Water Act oversight. The bill is part of the second minibus Appropriations package that will be debated this week in the Senate. The amendment is aimed at halting implementation of an EPA-issued guidance that instructs federal regulators to more broadly interpret the Clean Water Act. The EPA has indicated that it plans to follow up on the guidance it issued in April with rulemaking to further establish the new interpretation. Additionally, committee leaders in the House and Senate with jurisdiction over the Clean Water Act Sens. Inhofe (R-OK) and Sessions (R-AL) and Reps. Mica (R-FL) and Gibbs (R-OH) today sent a letter to EPA Administrator Lisa Jackson and Assistant Secretary of the Army for Civil Works Jo-Ellen Darcy, urging them to formally withdraw recently proposed guidance on the issue. Upcoming Hearings The House Science, Space and Technology Subcommittee on Energy and Environment will hold a hearing on November 17 to examine how EPA incorporates its science departments into its rulemaking and "the need for common sense reform. Water and Power Subcommittee of Senate Energy and Natural Resources Committee will hold a hearing on December 8 on opportunities and challenges to address domestic and global water supply issues. 4