legislature

March Legislative Update

Partnership Update - March 10, 2010

On December 7th, 2009, the Environmental Protection Agency (EPA) announced that carbon dioxide and other greenhouse gases “threaten public health and welfare.” While this announcement does not impose any additional requirements on the electric industry, it virtually assures continued Congressional activity when it comes to climate change legislation. The Administration has threatened to allow EPA to regulate carbon dioxide unless Congress passes climate change legislation soon.

While the EPA has been aggressive in exercising its regulatory powers since the start of the new Administration, the Agency states it would prefer a Congressional solution. Yet, EPA Administrator Lisa Jackson notes that the Obama Administration “will not ignore science or the law any longer.” Ms. Jackson recently wrote to Senator Rockefeller stating that the agency intends to begin the regulatory process for stationary sources in 2011. Several resolutions and other legislative proposals are being introduced by Republicans and Democrats in the House and Senate that would call for a prohibition or delay in any EPA regulation of greenhouse gases. Senator Rockefeller himself has introduced a bill that would call for a 2 year delay in any EPA action.

Indiana’s electric cooperatives and municipal utilities are concerned that overly restrictive EPA regulations could damage a fragile U.S. economy and devastate coal-dependent states such as Indiana. We are actively conveying this message to our members of Congress. It is Congress’ responsibility to determine any climate change policy: not the EPA’s working under the framework of the Clean Air Act. The Clean Air Act was not designed to control carbon dioxide and other greenhouse gases. It is the wrong tool for the wrong job. Therefore, we remain resolute in our goal to work with Congress to address climate change in a fair, affordable and achievable manner. In the meantime, Congress must stop EPA from proceeding. The threat of agency action should not be used as an excuse for hastily drafted and or poorly conceived climate change policy.

The Partnership will continue to work with Congress on fair, affordable, and achievable legislation. Toward that goal, significant improvements are necessary in both the House and Senate legislative language. Those include:

• • A formula for distribution of carbon allowances to local distribution companies that is based 100 percent on emissions and is equitable for all regions of the country.
• • Cost containment measures such as a safety valve that ensures future affordability of electricity.
• • Reasonable emission caps and a timetable for transition that allows for the development of necessary technology to control and/or contain carbon emissions. Emission reduction targets that are too aggressive will make any program unaffordable and unworkable.
• • Elimination of regulatory duplication. The EPA announcement that carbon dioxide emissions pose a threat to public health is a bureaucratic and regulatory commitment to action. We believe Congress should accept responsibility for development of carbon regulation and legislation should supersede all federal, state and local regulation of greenhouse gasses.

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