HomeMy WebLinkAboutAgend Packet - June 24, 2013 - UB •
Azu A
EIGEIT
C.WATER
AGENDA
REGULAR MEETING OF
AZUSA UTILITY BOARD
AZUSA LIGHT & WATER JUNE 24,2013
729 N. AZUSA AVENUE 6:30 P.M.
AZUSA, CA 91702
AZUSA UTILITY BOARD
URIEL E. MACIAS
CHAIRPERSON
ROBERT GONZALES JOSEPH R. ROCHA
VICE CHAIRPERSON BOARD MEMBER
EDWARD J. ALVAREZ ANGEL CARRILLO
BOARD MEMBER BOARD MEMBER
6:30 P.M. Convene to Regular Meeting of the Azusa Utility Board
• Call to Order
• Pledge to the Flag
• Roll Call
A. PUBLIC PARTICIPATION
1. (Person/Group shall be allowed to speak without interruption up to five (5) minutes maximum time,
subject to compliance with applicable meeting rules. Questions to the speaker or responses to the
speaker's questions or comments shall be handled after the speaker has completed his/her comments.
Public Participation will be limited to sixty (60) minutes time.)
B. UTILITIES DIRECTOR COMMENTS
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C. UTILITY BOARD MEMBER COMMENTS
D. CONSENT CALENDAR
The Consent Calendar adopting the printed recommended action will be enacted with one vote. If Staff or
Councilmembers wish to address any item on the Consent Calendar individually, it will be considered under
SPECIAL CALL ITEMS.
1. Minutes. Recommendation: Approve minutes of regular meeting on May 25, 2013 and special meeting
on June 17, 2013 as written.
2. Approval of 2012 Power Source Disclosure Report and Posting. Recommendation: Approve Azusa
Light& Water's 2012 Power Source Disclosure report and posting.
E. SCHEDULED ITEMS
1. Approval of Annual Water Rights Leasing Transactions. Recommendation: Ratify the execution of
the water rights lease agreements with California-American Water Company, La Puente Valley County
Water District, and City of Industry Waterworks System.
F. STAFF REPORTS/COMMUNICATIONS
1. Report on Results of 2013 Q2 GHG Allowance Auction
2. Drought Communications Update
3. Morgan Meguire LLC Monthly Legislative Update
4. Update on AB 145 (Perea)—Verbal Report
5. San Onofre Closure—Verbal Report
G. ADJOURNMENT
1. Adjournment.
"In compliance with the Americans with Disabilities Act, ifyou need special assistance to participate in a city
meeting, please contact the City Clerk at 626-812-5229. Notification three (3) working days prior to the
meeting or time when special services are needed will assist staff in assuring that reasonable arrangements
can be made to provide access to the meeting."
"In compliance with Government Code Section 54957.5, agenda materials are available for inspection by
members of the public at the following locations: Azusa City Clerk's Office - 213 E. Foothill Boulevard,
Azusa City Library- 729 N. Dalton Avenue, and Azusa Light& Water-729 N.Azusa Avenue,Azusa CA."
2
APPROVED
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AZUSA
LIGHT • WATEi
CONSENT ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA
UTILITY BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: JUNE 24, 2013
SUBJECT: 2012 POWER SOURCE DISCLOSURE REPORT AND POSTING
RECOMMENDATION
It is recommended that the Utility Board approve Azusa Light & Water's 2012 Power
Source Disclosure report and posting.
BACKGROUND
SB 1305 requires that all retail sellers of electricity in California report on an annual basis
the sources of power served to their customers and post condensed power source
information on the company's website. Additionally, AB 162 requires a specific format
in which condensed information from the annual SB 1305 report needs to be shown.
Attached for your approval is Azusa Light & Water's 2012 power source information in
the AB 162 required format as provided by the California Energy Commission (CEC).
Please note that in cases the reporting entity had a surplus of resources (Azusa's case) the
CEC provided reporting form automatically prorates all non-renewable resources to
render balanced load-resource mix shown in the right hand table. Further, since the CEC
allows using the prorated data for power source disclosure posting(right hand table in the
attached) staff recommends that this form be approved for posting on our website.
FISCAL IMPACT
There is no direct fiscal impact.
Prepared by: Yarek Lehr, Assistant Director of Resource Management
Attachment: 2012 Power Source Disclosure
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ANNUAL REPORT TO THE CALIFORNIA ENERGY COMMISSION: Power Source Disclosure Program
June 2013
for the year ending December 31, 2012
SCHEDULE 2: ANNUAL POWER CONTENT LABEL CALCULATION
Applicable to: Load Serving Entities
INSTRUCTIONS: Total specific purchases(by fuel type)and enter these numbers in the first column. Null
power purchases should be included with Unspecified Power. REC only purchases should be included as part
of the fuel type they represent.The remainder of this schedule will be automatically populated with net generic
purchase and total retail sales information from Schedule 1.Any difference between total net purchases and
total retail sales will be applied pro-rata to each non-renewable fuel type.The pro-rata calculations will then be
divided by total retail sales to calculate fuel mix percentages. If you wish to change how the pro-rata
calculation is applied, enter revised purchases in column labeled"Pro-Rata Net Purchases based on Retail
Pro-Rata Net
Net Purchases(kWh) Purchases based on Percent of Total
Retail Sales(kWh) Retail Sales(kWh)
Specific Purchases
Renewable 44,889,000 _ 44,889,000 18.43%
Biomass & Biowaste _ 0%
Geothermal _ - _ 0%
Eligible hydroelectric 7,669,000 7,669,000 3%
Solar electric - 0%
Wind 32,840,000 32,840,000 13%
Hoover Uprating Project 4,380,000 4,380,000 2%
Coal 169,966,000 160,715,967 66%
Natural Gas - _ 0%
Nuclear 18,874,000 17,846,823 _ 7%
Other - 0%
Total Specific Purchases 233,729,000 223,451,790 92%
Unspecified Power(kWh) 21,302,000 20,142,685 8%
Total 255,031,0001 243,594,475] 100% I
Total Retail Sales(kWh) 243,594,475
COMMENTS: Until further notice, Azusa deems the energy sourced from its share of the
Hoover Uprating Project renewable energy as the uprate resulted in incremental efficiency
gains of the underlying portion of the Hoover project without detrimental environmental
effects or consequences.
CEC Reg.# 0
dsn:2012_AZUSA_POWER_SOURCE_DISCLOSURE_Annual_Report.xls
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INFORMATION ITEM
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FROM: GEORGE MORROW, DIRECTOR OF UTILITIES ut
DATE: JUNE 24, 2013
SUBJECT: RESULTS FROM THE MAY 16, 2013 AUCTION OF GHG
ALLOWANCES CONDUCTED BY THE CALIFORNIA AIR
RESOURCES BOARD
Consistent with Board's March 25, 2013 authorization, staff participated in the California
Air Resources Board's May 16, 2013 auction of GHG Allowances. As intended and
planned for, staff managed to simultaneously buy and sell 23,000 of 2013 GHG
Allowances while avoiding volumetric imbalance. Purchased Allowances will be used to
cover Azusa's "excess power imports" into California (difference between Azusa's
imports and Azusa's load) and Azusa's share of Lodi Energy Center generation.
The following are key auction metrics as reported by CARB: Settlement Price - $14.00
per Allowance. Total volume of 2013 Allowances bought and sold at the auction -
14,522,048. 90.22% of Allowance purchasers at the auction were compliance entities such as
electric utilities, oil refineries, and food processors the remaining purchasers were traders,
arbitragers and speculators.
Prepared by: Yarek Lehr, Assistant Director of Resource Management
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INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
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FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES v cA71
DATE: JUNE 24, 2013
SUBJECT: DROUGHT COMMUNICATIONS UPDATE
In order to promote water conservation by Azusa Light & Water customers, the following public
information is being developed and/or distributed to consumers:
Print Communications
Past experience has shown that the following are effective ways to communicate with customers
using printed media:
• Three ad series in the San Gabriel Valley Tribune newspaper
o Official Phase II Drought notice
o Outdoor water conservation tips
• Restaurant table tents — Water only served upon request
• School flyer — Drought Declaration Notification Flyer for distribution at school 's public
counter
• Direct mail and hand delivered letters
o Drought announcement letter to all customers
o Gardeners and Landscapers letter — to alert landscapers to adjust timing of
irrigation systems to avoid warning notices and fines
• Distribution of printed materials from other agencies and organizations
o Be Water Wise
• Smart controller flyer
• Water Wise Living in Southern California "Home and Garden"
016
Drought Communications Update
June 24, 2013
Page 2
o Use Water Wisely spin chart
o Save Water"Bathroom & Laundry" slide chart
o Water—Our Most Valuable Resource booklet
o Sunset—Backyards from the Ground Up multi-page pamphlet
Community Postings
Electronic postings and street banners have also proven to be an effective means of delivering
the drought messages.
• Freeway Lighted Reader Board Sign—Various messages
• City Hall and Light &Water marquees—Various messages
• Street Banners—Use Water Wisely
o Save Our Water
o Every Drop Counts
Drought Patrol and Community Events
At this point in time, the drought patrol is primarily providing guidance and information while on
patrol and at community events. The following is a list of items and communication materials
being used to better inform the customers on ways they can reduce water waste and in turn lower
their water bills:
• Hand held shut off nozzles
• Door hanger notices
• Rain gauges and sprinkler controller directions
• Sink aerators, shower heads and toilet leak tablets
Website Revisions
As fresh material is developed it will be continually added to the website. Website material will
consist of:
• Water conservation tips
• Phase II Drought Odd/Even address irrigation time chart
• Seasonal lawn watering time requirement chart based on turf types
• Conservation programs
017
Drought Communications Update
June 24, 2013
Page 3
o Toilet exchange
o DRiP Rebate program
Proposed Future Communications
Future communications will include, but are not limited to:
• Phase II Drought Odd/Even address allowable time chart magnets
• Continual website updates
• Periodic utility bill inserts
• Direct mail of targeted notices and advertisements
Communication is the key to obtaining the desired results of changing consumer habits. The
communications need to be constantly updated and be modified as the drought conditions
change. Azusa Light & Water will continue to leverage the San Gabriel Valley Metropolitan
Water District H2Owl, the BeWaterWise.com, the Water $mart and the Save Water, Save a Buck
programs along with other local water district's marketing media.
Prepared by: Paul Reid, Business Development/Public Benefit Programs Coordinator
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AZUSA
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INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES L '" {
DATE: JUNE 24, 2013
SUBJECT: FEDERAL LEGISLATIVE UPDATE BY MORGAN MEGUIRE LLC
Attached Morgan Meguire LLC's June report via Southern California Public Power Authority
(SCPPA)with the following legislative update:
1. Congressional Overview-Nominations
2. Dodd-Frank Implementation
- House Readies H.R. 1038 for Passage, Senate Considers Comments
- Feinstein, Western Senators Tell CFTC to Revisit Swap Dealer Rule
- Energy Trade Groups Responds to Feinstein Letter on Swap Dealer Threshold
3. Municipal Finance
4. Cyber Security
- McCaul Releases Draft House Homeland Security Bill
- Markey Waxman Release Utility Responses on Cyber
- Energy and Commerce Hearing on White House Executive Order
5. Transmission
- White House Issues Memo on Designation of Transmission Corridors, Siting
and Permitting on Federal Lands
Prepared by: Steven Yang, Senior Management Analyst
Attachment: Morgan Meguire LLC June Report
019
Morgan Meguire LLC
Memorandum
TO: Bill Carnahan, Executive Director
FROM: Lori J. Pickford, Executive Vice President
DATE: June 11, 2013
RE: June Monthly Legislative Report
1. Congressional Overview -Nominations
After weeks of wrangling, the Senate on May 16 approved the nomination of Ernest Moniz to be
the next Energy Secretary. The 97-0 vote followed Sen. Lindsey Graham's (R-SC) decision to
lift a"hold" on the nomination over the Administration's budget recommendation to shut down
the proposed Mixed Oxide (MOX) Fuel Fabrication Facility at the Savannah River site in South
Carolina.
Following the vote, Senate Energy and Natural Resources (ENR)Committee Chair Ron Wyden
(D-OR)complimented Moniz on his "proven track record," and said that he looks forward to
"working with him to address the hugely important issues facing the department: how to manage
newly accessible reserves of natural gas,how to combat climate change,how to make our
economy more efficient and how to clean up Hanford and other nuclear waste sites." Some from
the energy sector and environmentalists praised the vote as well.
On May 16,the Senate Environment and Public Works (EPW) Committee approved the
nomination (10-8) of Gina McCarthy to be Administrator of the Environmental Protection
Agency(EPA). All Committee Democrats voted in favor; all eight Republicans opposed her.
The prior week, Republicans boycotted a markup, preventing a quorum and delaying the vote.
EPW Ranking Member David Vitter(R-LA) said that he will support McCarthy's nomination
when it gets to the Senate floor if EPA responds to his five specific transparency requests. The
requests include that data used to promulgate Clean Air Act rules be made public, so the public
can independently examine cost/benefit and other issues; and that all private email accounts of
the nominee be sent,unredacted, to the Committee.
No date has been set for a floor vote on the McCarthy nomination. Sen. Vitter has not
announced whether he will put a hold on the vote or oppose her; he is waiting to see if EPA
responds more fully to his information requests.
Sen. Boxer has not yet scheduled an EPW Committee vote on Allison Macfarlane's nomination
as Chair of the Nuclear Regulatory Commission (NRC) for a full five-year term. Macfarlane
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became Chair in July 2012, when she was nominated to finish the remaining term of Gregory
Jascko,who resigned after several high profile disputes with other members of the Commission.
Boxer has stated she is waiting on more NRC documents about Southern California Edison's San
Onofre nuclear plant before she sets up the vote. Edison announced on June 7th that it plans to
retire the San Onofre plant.
2. Dodd-Frank Implementation
House Readies H.R. 1038 for Passage, Senate Considers Comments
House Majority Leader Eric Cantor announced on June 7 that H.R. 1038, the "Public Power Risk
Management Act, "which would resolve the swap dealer"sub-threshold" issue that prevents non-
financial firms from entering into swaps with municipal utilities, will be taken up for
consideration by the House as early as June 12.
The bill will be considered under suspension of the rules, which allows no amendments and
requires a two-thirds vote for passage. The move signals that leadership considers the bill non-
controversial and likely to pass by a wide margin. The bill currently has the following
cosponsors from Southern California-- Reps. Juan Vargas (IID), Brad Sherman (LADWP),
Adam Schiff(Pasadena/Glendale/Burbank& LADWP), Linda Sanchez (Cerritos), and Mark
Takano (Riverside). Morgan Meguire alerted SCPPA's Congressional delegation that the bill
would be considered and urged a"yes"vote.
On May 1, American Public power Association(APPA) and Large Public Power Counsel
(LPPC)jointly submitted comments to the leaders of the Senate Agriculture Committee
regarding the sub-threshold issue. Chair Debbie Stabenow (D-MI) and Ranking Member Thad
Cochran (R-MS) invited stakeholders to submit comments associated with reauthorizing the
Commodity Futures Trading Commission (CFTC), which has jurisdiction over swaps.
The comments describe the problem caused by the CFTC regulation and how imposing a
separate sub-threshold for deals with special entities gives non-financial firms a strong incentive
not to deal with municipal utilities, which still have operational risks to hedge.
"Government-owned utilities depend on nonfinancial commodity transactions, trade options, and
`swaps,' as well as the futures markets, to hedge commercial risks that arise from their utility
facilities, operations, and public service obligations,"the APPA/LPPC letter says. "Together,
nonfinancial commodity markets play a central role in the ability of government-owned utilities
to secure electric energy, fuel for generation, and natural gas supplies for delivery to consumers
at reasonable and stable prices."
APPA and LPPC asked Stabenow and Cochran to include language similar to H.R. 1038 in the
CFTC reauthorization bill.
Feinstein, Western Senators Tell CFTC to Revisit Swap Dealer Rule
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On May 20, six Democratic Senators from Western states, led by Sen. Dianne Feinstein (D-CA)
and including Sens. Barbara Boxer(D-CA), Patty Murray(D-WA), Maria Cantwell (D-WA),
Ron Wyden(D-OR), and Jeff Merkley(D-OR), sent a letter to Commodity Futures Trading
Commission(CFTC) Chair Gary Gensler asking for additional information about energy markets
swap dealing activity, including what percentage of energy swaps participants are registered as
swap dealers, and urging the CFTC to revise the definition to bring"the vast majority"of energy
swap dealing under its jurisdiction through registration.
The Senators contend that the CFTC-set$8 billion de minimis threshold,upon which most end-
users rely to avoid being labeled a swap dealer, is so high that it fails to encompass many firms
that are engaging in a significant amount of swap dealing activity in energy markets.
The letter points to public power's petition for relief from the sub-threshold as evidence that
most energy swaps participants are not registered as swap dealers. While public power does not
agree with that assertion, an earlier version of the letter was worse. However, APPA still does
not support the letter.
The letter only specifically names BP as an energy swap dealer that does not have to register
under the current rules,but it also raises concerns among investor owned utilities, which rely on
the high de minimis threshold to avoid the meticulous transaction-by-transaction analysis they
would have to do to determine whether their activity is dealing or trading.
The letter is consistent with the view that Sen. Feinstein took throughout the debate on the Dodd-
Frank Act, which is that no energy swaps should be excluded from CFTC regulation.
Energy Trade Groups Responds to Feinstein Letter on Swap Dealer Threshold
On June 7, five energy trade associations sent a letter to the Commodity Futures Trading
Commission(CFTC) a letter expressing support for the $8 billion de minimis threshold in the
agency's swap dealer rule. The group included the Edison Electric Institute, American Gas
Association, Electric Power Supply Association,National Rural Electric Cooperative
Association, and Independent Petroleum Association of America
The letter was send at the suggestion of Senate Agriculture Committee staff after Sen. Dianne
Feinstein led a separate letter criticizing the threshold. Feinstein's letter claimed that the
exemption had been set so high that it failed to capture any"energy swap dealers."
The group did not reference Feinstein's letter directly,but instead suggests that any changes to
the rule should not be made without opportunity for public comment. It continues on to justify
the current threshold, saying, "The$8 billion de minimis threshold in the current CFTC rule is
necessary and appropriate to allow utilities and other market participants to engage
in...transactions ancillary to their broader energy commodity businesses, without incurring the
higher costs associated with being a swap dealer."
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3. Municipal Finance
House and Senate tax committee chairmen continue to publicly state their support for moving a
tax reform bill,but momentum is starting to wane as the road ahead remains difficult.
On the Senate side, Finance Committee Members continue to meet weekly on a bipartisan basis
to discuss various "white papers"on key tax reform topics. On the House side, Ways and Means
Committee Chair Dave Camp (R-MI) and Ranking Member Sander Levin (D-MI) formed 11
Tax Reform Working to review current law in specific designated area, research relevant issues,
and compile related feedback from stakeholders. The information was submitted to the Joint
Committee on Taxation (JCT), which prepared a report issued on May 6.
The almost 600-page JCT report did not include legislative recommendations. Instead, it is
intended to serve as a reference document for Ways and Means Members, as the Committee
begins discussion of possible changes to the tax code. The report discussed New Clean
Renewable Energy Bonds (CREBs), tax exempt financing, including public power's comments,
and other comments related to tax-exempt financing.
The report notes that tax-exempt municipal bonds may be used for financing government-owned
and operated electrical and gas-powered generation, transmission, and distribution facilities, and
are not subject to volume caps. Also, tax-exempt bonds may be used to finance prepaid natural
gas contracts, without application of certain arbitrage rules. The report also notes that, in special
instances, tax-exempt municipal bonds can be used for certain private energy-related projects.
The Congressional Budget Office (CBO)released a May 2013 report that analyzes the
distribution of benefits among classes of ratepayers of the ten largest tax expenditures in the
individual income tax system. Tax expenditures resemble federal spending by providing
financial assistance to specific activities, entities, or groups of people. The report finds that more
than half of the combined benefits accrue to the highest quintile of the population, with 17
percent going to households in the top one percent of the population. The report does not include
the interest exclusion for municipal bonds in the list of ten largest expenditures,which is a
positive development for public power and other state and local governments that finance
infrastructure with municipal bonds.
To review the report, click here.
Threats to the tax-exempt status of municipal bonds will continue, whether or not a tax reform
bill moves forward. Modifications to or elimination of tax-exempt bonds could be proposed
when Congress, again, confronts the need to increase the federal debt ceiling and if an alternative
to automatic sequestration gains momentum.
4. Cyber security
McCaul Releases Draft House Homeland Security Bill
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House Homeland Security Committee Chair Michael McCaul (R-TX) and Rep. Patrick Meehan
(R-PA) circulated a draft cyber security bill that would authorize a number of Department of
Homeland Security(DHS) activities to prevent, respond to, and recover from cyber incidents
affecting civilian government-agencies,promote greater awareness of cyber threats and
vulnerabilities, and establish DHS as the central information-sharing interface across government
and with state and local entities and private sector owners and operators of critical infrastructure.
The draft does not authorize DHS or any other federal agency to require action by private sector
entities or otherwise regulate private sector owners and operators of critical infrastructure.
Instead, it authorizes the Sector Coordinating Councils (SCCs)—which already exist—for each
critical infrastructure sector to determine its own governance and procedures, develop industry-
led initiatives to address cyber security vulnerabilities and gaps, and enforce voluntary guidelines
for its sector.
The electric sector cyber coalition met by phone with staff to the Homeland Security Committee
to discuss the draft this week, and learned that the planned June 13 Subcommittee mark-up will
be postponed to allow more outreach to private sector entities.No specific date has been set for
the postponed mark-up.
The coalition has no overarching concerns with the approach in the bill,but raised a number of
smaller points with staff. Staff seemed open to clarifying changes now and asked for a"red-line"
of the Committee draft with specific language change proposals.
Markey Waxman Release Utility Responses on Cyber
On May 21, Reps. Ed Markey (D-MA) and Henry Waxman(D-CA)released a report titled
"Electric Grid Vulnerability: Industry Responses Reveal Security Gaps," summarizing the
responses they received from a January letter they sent to more than 150 utilities, including
investor owned utilities (IOUs),municipally-owned utilities, rural electric coops, and federal
entities, asking detailed questions about their cyber security processes and procedures.
Both Waxman and Markey have been highly critical of the current Federal Energy Regulatory
Commission(FERC)/North American Electric Reliability Corporation (NERC) standard setting
process and have proposed that FERC get additional authority in this area. The report's
conclusions reflect those views.
The report finds "the nation's electric grid remains highly vulnerable to attacks from Iran and
North Korea, or other threats like geomagnetic storms from solar activity." It also criticizes the
open, collaborative process between utility experts and NERC, stating that"the lengthy,
industry-driven process by which grid security standards are set results in long delays and
haphazard implementation of the voluntary security recommendations the industry refuses to
make mandatory."
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Somewhat surprisingly,the report publicly reveals information provided by utility respondents
and identifies by name utilities that failed to respond,responded but information was incomplete
or responded and information was complete.
Some SCPPA members were listed in the report as responding with complete information, while
other were listed as failing to respond. However, it is important to note that the report is based
on a flawed process, and in some instances SCPPA utilities did not receive the initial letter.
Morgan Meguire did contact Rep. Markey's committee staff to inform them that certain SCPPA
members did not receive the letter and asked to whom the letters were addressed and sent.
Energy and Commerce Hearing on White House Executive Order
On May 21, the House Energy and Commerce (E&C) Committee held a hearing on the cyber
threats facing the nation's critical infrastructure and strategies available to reduce such exposure.
The hearing was led by Committee Vice-Chair Marsha Blackburn (R-TN) and was well attended
by Members on both sides of the aisle. The hearing focused on the cyber security of critical
sectors under the Committee's jurisdiction, including the energy and telecommunications sectors.
In opening remarks, Rep. Blackburn praised the flexible, industry-led standards process that
NIST, FERC, and NERC have been developing, saying "private solutions, not government
presumptions,offer the best prospect."
In contrast, Committee Ranking Member Henry Waxman (D-CA)used his opening statement to
criticize the notion of voluntary cyber standards. Waxman focused on the electric sector during
his discussion,noting that many of the 15 other critical infrastructure sectors rely on electricity
first and foremost. He also cited the Waxman/Markey report as evidence that voluntary
standards are not being adopted quickly enough by utilities, and urged his colleagues to pass the
GRID Act, the bill that he and Rep. Markey sponsored in the 111th Congress to give greater
authority to FERC to determine cyber standards applicable to electric utilities. That bill was
passed by the full House but not by the Senate.
5. Transmission
White House Issues Memo on Designation of Transmission Corridors, Siting and
Permitting on Federal Lands
On June 7, the White House issued a memo to federal agencies, directing them to take action to
designate transmission corridors on federal lands to facilitate renewable energy projects and
improve grid resiliency. A copy of the White House memo can be found here.
The new directive builds on Sec. 368 of the Energy Policy Act of 2005, which directed the
Departments of Agriculture, Commerce, Defense, Energy, and the Interior to designate corridors
on federal lands for the development of oil, gas, and hydrogen pipelines and electric transmission
and distribution facilities, and the work of the executive branch's Rapid Response Transmission
Team(RRTT)to improve federal siting and permitting for transmission projects.
The memo directs federal agencies to establish energy corridors—in western states and non-
western states—and to develop implementation plans with timelines and milestones. In the case
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of the western states, such plan shall also include regional corridor assessments and a detailed
budget.
Agencies are also directed to develop and integrated, interagency pre-application process for
significant onshore transmission projects requiring federal approval, and an implementation
plans with timelines and milestones.
The June 7 memo is one more examples of the President's use of executive branch authority to
promote the development renewable resources and reduce greenhouse gas emissions.
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