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House Energy Panel Approves Hydro, Grid Reliability Bills
On June 20, the House Energy and Commerce Committee passed by voice vote two bipartisan measures, the "Hydropower Regulatory Efficiency Act" (H.R. 5892) and the "Resolving Environmental and Grid Reliability Conflicts Act" (H.R. 4273). The Energy and Power Subcommittee had previously approved the bills on June 7. H.R. 5892, sponsored by Reps. Cathy McMorris Rodgers (R-WA) and Diana DeGette (D-CO), would increase the small hydropower licensing exemption from 5 MW to 10 MW. It would also provide licensing exemptions for small conduit hydropower projects under certain conditions, and it would study how existing pumped storage facilities can support integration of renewables, provide grid reliability benefits, and how they might be upgraded. Full Committee Chairman Emeritus John Dingell commended Reps. McMorris Rogers and Dianna DeGette (D-CO), the bill’s lead Democratic cosponsor, for working together on the hydropower bill, saying "it’s a classy way to have done this." Regarding H.R. 4273, he said "utilities should not be fined by one agency for complying with another agency." In addition to Dingell, and the lead sponsors the bill included 5 new original co-sponsors: Reps. Ed Markey (D-MA), Jim Matheson (D-UT), Lee Terry (R-NE), Bob Latta (R-OH) and Lamar Smith (R-TX), showcasing the support for this "common-sense" legislation from both sides of the aisle. The bill has also earned support from both environmentalists and representatives of the hydroelectric industry. During the 2012 APPA Rally, NEPPA members asked their delegation members to cosponsor H.R. 5892; Rep. Ed Markey cosponsored the bill on June 5. Rep. Cathy McMorris Rodgers sent a May 29 letter to President Obama urging him to include hydropower in his "all of the above" energy approach. Citing DOE figures, the Congresswoman wrote that 7 percent of the nation’s total electricity and 75 percent of all renewable energy comes from hydro, and only 3 percent of 84,000 dams in the country produce power. "Hydropower could double without building a single new dam," she said. Paired with regulatory reforms, she said, the main beneficiaries would be "consumers with lower utility bills." The other bill, H.R. 4273, sponsored by Reps. Pete Olson (R-TX) and Mike Doyle (D-PA), would shield utilities operating under a Department of Energy (DOE)-declared reliability emergency from the threat of penalties from environmental laws that would be violated by operating a power plant. To gain Democratic support, the bill was amended to include a need for DOE to consult with relevant federal agencies regarding environmental laws or regulations. DOE, however, would remain the final authority. Since only a handful of utilities have ever been in the position of being forced to violate environmental statutes in an emergency, Democrats view the bill as a political "message piece" calling attention to the potential for conflict between numerous regulations impacting the electric sector. The concession to have DOE consult with agencies resolves the policy issue while neutralizing some of the politics. Senate Energy and Natural Resources Ranking Member Lisa Murkowski (R-AK), however, is working on companion legislation that is expected to address the broader, non-emergency reliability concerns raised by rapid retirement of coal plants in the wake of EPA rules. Several grid operators had put forth the idea of establishing "Reliability Critical Units" as a safety valve in their joint comments on the Utility MACT rule. Both House bills passed by the Committee are expected to be considered on the House floor after the July 4th recess. To read the complete legislative update including the following topics, click here.
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