Midwestern Greenhouse Gas Reduction Accord

Ten Midwestern leaders – Wisconsin Governor Jim Doyle, Manitoba Premier Gary Doer, and the Governors from Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Ohio and South Dakota – signed the “Midwestern Regional Greenhouse Gas Reduction Accord” on November 15.

Signed at the Midwestern Governors Association (MGA) Energy Security and Climate Change Summit held in Milwaukee, the accord will serve as a regional strategy to achieve energy security and reduce greenhouse gas emissions that cause global warming. Highlights from the agreement include the development of a market-based and multi-sector “cap-and-trade” mechanism to help achieve reduction targets; a system to enable tracking, management, and crediting for entities that reduce greenhouse gas emissions; and additional steps as needed to achieve the reduction targets, such as a low-carbon fuel standards and regional incentives and funding mechanisms. Full implementation of the accord will be completed within 30 months.

As part of the summit, the Midwestern states, including Nebraska and North Dakota, also adopted an “Energy Security and Climate Stewardship Platform”. The platform establishes shared goals for the Midwest region, including specific timelines for the advance of energy efficiency, the promotion of biobased products, the production of renewable electricity, and the development of advance coal and carbon capture and storage.

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State Legislative Update
By Scott Meske, MEUW Associate Director

The State Legislature spent most of the past few months hammering out the 2007-2008 State Budget, ultimately resulting in a budget bill that was signed into law on October 26, the latest in the nation. Here are some highlights from the State Budget and summaries of other legislative proposals that MEUW is tracking.

State Budget
The 2007-2008 State Budget contained a few provisions of interest to MEUW members:

the utility aid payment formula has been changed. It affects municipalities that have existing generation facilities. This was agreed to by both houses prior to inclusion in the conference committee;

another budget provision called for a utility tax study group to be formed by the Dept. of Revenue. MEUW is working to be a part of that group effort; and

the budget removed the sunset on the lowering of the utility revenue gross receipts tax to 1.59% (from 3.19%), which therefore leaves it at 1.59%, a change that MEUW supported along with other utility companies and groups.

Other Legislation
SB 186/AB 339 – revisions to the Neighbor-hood Electric Vehicle (NEV) law, clarifying Rep. Albers’ NEV bill in 2005. Governor Doyle signed into law Nov. 16. MEUW supported this bill;

SB 167/AB 294 – Electrician Licensing Bills. Both bills have had public hearings and are on their way to the respective house floors. SB 167 is awaiting scheduling for a Senate floor vote. MEUW supports;

SB 273 – Propane Safety Act. This bill brings the propane heating industry in line with other energy providers regarding safety issues. Supported by all industry sectors. MEUW supports;

AB 560 – Scrap Metal Theft Reduction Act. MEUW worked with a large, diverse industry coalition to craft legislation that would help reduce the rash of copper and other metal thefts in Wisconsin. Currently awaiting scheduling for a hearing. MEUW supports; and

SB 107/AB 207 – Video Competition Act. MEUW and other local government groups opposed the passage of this bill. The Senate amended AB207 in late October and the bill is now in the Assembly for review before being sent to Governor Doyle’s desk for action.

Technically there are only about 24 work days for the Legislature left to debate and vote on bills before the end of the work session on March 13, 2008. Any significant legislation, including climate change proposals, must be introduced and passed prior to that date.

If you would like a full copy of MEUW’s State Legislation Tracking Spreadsheet, please contact Scott Meske, 608-837-2263, or send an email to: smeske@meuw.org. In addition, the Wisconsin Ethics Board website (http://ethics.state.wi.us/) has links to all the bills, and lobbying efforts on each piece of legislation.

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APPA Washington Report
The Climate for Coal
By Robert Varela, Editor, APPA’s Public Power Weekly

Congress and some states are starting to get serious about global climate change.

Enactment of a federal law is still some time off. A bill is not likely to make it to the president’s desk for his signature until after the 2008 elections, APPA Senior Vice President-Government Relations Joe Nipper says. Speaking at APPA’s Legal Seminar, he said legislative activity on the issue has slowed down, particularly in the House. That “is a good thing because it’s a hugely important and hugely complex issue.”

Early in this Congress, House Energy and Commerce Committee Chairman John Dingell, D-Mich., and Energy and Air Quality Subcommittee Chairman Rick Boucher, D-Va., indicated they expected to mark up a climate change bill by October and have it ready for floor action. Dingell and Boucher instead recently issued a white paper, the first in a planned series.

The white paper offers some detail on a cap-and-trade system, such as the point of regulation for different sectors (at the generator for the electricity industry). However, the paper is less definitive on other issues, with only a brief mention of possible consideration of complementary measures (such as carbon taxes and energy efficiency or other performance standards), Nipper said. The white paper also notes that some issues, such as the point of regulation for the industrial sector, will be difficult to resolve.

Given all that, the House Energy and Commerce Committee is not likely to act on a climate change bill this year, Nipper said.

The Senate is moving a little faster, with Sens. John Warner, R-Va., and Joseph Lieberman, I-Conn., having introduced a cap-and-trade bill that has been tagged as a vehicle for action. The Warner-Lieberman bill, S. 2191, is “a perfect place to start,” Senate Environment and Public Works Committee Chair Barbara Boxer, D-Calif., said. “Today will be remembered as a turning point in the fight against global warming,” she said of its introduction.
As this was being written, the Subcommittee on Private Sector and Consumer Solutions to Global Warming and Wildlife Protection (with Lieberman as chair and Warner as ranking minority member) was poised to mark up the bill. While it may well make it past the subcommittee, the bill isn’t likely to be reported out by the full committee this year. Boxer promised a series of hearings and briefings before the committee tackles the legislation.

Their bill, America’s Climate Security Act, S. 2191, is projected to reduce U.S. greenhouse-gas emissions by as much as 19% below the 2005 level (4% below the 1990 level) in 2020 and by as much as 70% below the 2005 level in 2050.

States are not waiting on the feds. Western states are talking about their own version of the Northeast states’ Regional Greenhouse Gas Initiative. Citing the Supreme Court’s ruling that carbon dioxide fits the Clean Air Act’s definition of a pollutant, Kansas became the first state to use global warming as a reason for denying an air permit to a proposed coal-fired power plant. Proposed coal plants were derailed by state officials in Florida and Oklahoma, hardly known as bastions of liberal environmentalism.

Keeping up with this changing landscape is difficult. When Energy Northwest first proposed to build an IGCC plant, “I thought we had the perfect plant in the perfect place at the perfect time,” Energy Northwest attorney Bill Prentice told the Legal Seminar. But the state Legislature last year passed a bill that essentially limited emissions at any new power plant to those of a natural gas plant. Prentice said he still thinks the plant will be permitted and built, but it won’t be smooth sailing.

While some environmentalists would like to pronounce last rites for coal, to paraphrase Mark Twain, report of its death has been greatly exaggerated. Witness the recent groundbreaking for the Prairie State Energy Campus, a 1,600-MW coal-fired power plant to be built by a coalition that includes several public power agencies. According to the Energy Information Administration’s Electric Power Annual 2006, planned coal-fired capacity on Jan. 1, 2007, totaled 29,698 MW, up slightly from the 27,884 MW reported a year earlier. Most of this proposed capacity is scheduled to start commercial operation between 2009 and 2011. Coal plants planned for Texas, Kentucky, Illinois, and Wisconsin represent over one-half of all proposed coal-fired capacity additions, EIA noted.

The window of opportunity for new coal plants is still open. But, absent a breakthrough on carbon sequestration or some other technology, it’s closing fast, and in some areas it’s already shut.

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January 9-11, 2008
Joint Superintendents Conference Back in Stevens Point

Mark your calendars for January 9-11, 2008. The MEUW/REC Joint Superintendents Conference will once again be held in Stevens Point, at the Holiday Inn Hotel & Convention Center (1001 Amber Avenue, 715/344-0200).

This is the same location as the 2007 Joint Superintendents Conference. The dates are one week earlier, however, so that we can have the whole conference center to ourselves. Be sure to make your hotel reservations before you leave for the holidays!

Wednesday, the day set aside solely for municipal business, will include a special WPPI-sponsored presentation on APPA’s RP3 Program by Mike Hyland, APPA Vice President-Engineering Services. Non-WPPI members who are interested in the RP3 program are also invited to attend.

The Conference officially kicks off at 1:00 p.m. Highlights on Wednesday include sessions on mobile/ GIS applications; trends in electric distribution automation; an electric industry update; and an update on the MEUW Safety & Job Training Program and the MEUW Regional Safety Group Program.

Highlights from the joint portion of the Conference on Thursday include presentations on automatic external defibrillators; CDL, DOT and hours of service issues; utility excavation do’s and don’ts; fire retardant clothing; supervisor leadership training; PSC Chap. 119 interconnection procedures and forms; and the Wisconsin Linerepairer Apprenticeship Program.

The Wisconsin Utility Suppliers Association will host their annual trade show and reception on Thursday, followed by the Apprentice Graduation Banquet.

Municipal utility personnel are invited to attend the MEUW Board of Directors meeting on the morning of Friday, January 11.

We have a room block at the Holiday Inn ($89 single or double occupancy) for the Conference and an overflow block for Thursday night only at the Holiday Inn Express ($79 single or double occupancy) across the street.

Those folks who are coming in only for Thursday night’s banquet (such as graduates and their families) should book rooms at the Holiday Inn Express. The Holiday Inn Express also offers a free continental breakfast for overnight guests.

To make a room reservation at the Holiday Inn, call 715/344-0200 before December 18. To make a room reservation at the Holiday Inn Express, call 715/344-0000 before December 18. Be sure to ask for the “Joint Superintendents Conference” block to get the special rate.

This year’s conference registration materials were sent on November 26 and are also available on the MEUW website; visit www.meuw.org/events or call MEUW Office Manager Linda Olson (608/837-2263) if you need another copy. Hope to see you at the conference.
 

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Now Accepting Nominations
MEUW Outstanding Lineman Award

In 2003, MEUW created the MEUW Outstanding Lineman Award to recognize exemplary work by particular lineman in support of their municipal electric utility.

Three outstanding individuals have been recognized so far: John Potier from Sturgeon Bay Utilities; Richard Riederer from Algoma Utilities; and Todd Tessmann from Hustisford Utilities.

The award will be presented during the MEUW portion of the Joint Superintendent’s Conference, to be held January 9-11, 2008 at the Holiday Inn in Stevens Point.

The nomination deadline is Monday, December 10, 2007. The recipient and their Manager or Superintendent will be notified in mid-December so they can make preparations to attend the Joint Superintendents Conference to receive the award.

The Outstanding Lineman Award Nomination Form and Eligibility Guidelines were recently sent to all MEUW Members. The nomination packet is also available on the MEUW website at www.meuw.org.

If you have any questions about the forms, process, or nominations, please contact Scott Meske, (smeske@meuw.org) MEUW Associate Director, or Linda Olson, (lolson@meuw.org) MEUW Office Manager, or by phone (608-837-2263).
 

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