Public Policy Agenda Number 3.

Transcription

1 CONTACT: Public Policy Agenda Number 3. Marie Pearthree (623) MEETING DATE: January 10, 2013 AGENDA ITEM: Discussion and Consideration of Action to Recommend that the Board Approve the Proposed 2013 Federal Legislative Agenda RECOMMENDATION: Staff recommends that the Committee recommend to the Board approval of the Proposed 2013 Federal Legislative Agenda FINANCIAL IMPLICATIONS: Impact on Budget: Included in Biennial Budget. Additional spending authority requested: None Impact on Reserves: None Impact on Rates: None LINKAGE TO STRATEGIC PLAN, POLICY, STATUTE OR GUIDING PRINCIPLE: CAWCD Board of Directors 2010 Strategic Plan: Leadership & Public Trust: Relationships - Customers, Relationships - Other Stakeholders Water Supply: Reliability of the CAP Water Supply Power: Generation Resources

2 PREVIOUS BOARD ACTION/ACTIVITY: October 4, 2012 Public Policy Committee previewed proposed 2013 Federal Legislative Agenda ISSUE SUMMARY/DESCRIPTION: PROPOSED 2013 FEDERAL LEGISLATIVE AGENDA: PRIORITY ISSUES EPA Rulemaking regarding Navajo Generating Station (NGS) Emissions Controls CAP Position: 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. Climate Change and Energy Legislation CAP Position: Monitor legislative efforts and respond appropriately to mitigate potential impacts on CAP operations and on the sale of Navajo surplus power. Cybersecurity Threats and Legislation CAP Position: Monitor legislative efforts to address cybersecurity and potential threats to critical infrastructure and vital computer systems. ISSUES THAT REQUIRE CAP INVOLVEMENT WITH OTHER STAKEHOLDERS Clean Water Restoration Act CAP Position: 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 CAP Position: Continue to seek a settlement of these water rights claims and support legislation necessary and appropriate to implement a settlement. Colorado River Basin Salinity Control Forum CAP Position: Support the activities of the Colorado River Basin Salinity Control Forum. Bureau of Reclamation Colorado River Basin Water Supply and Demand Study CAP Position: Continue to collaborate with Federal, State, tribal, and environmental stakeholders, to augment water supplies and address challenges with growing water needs and the potential impacts of climate change. Hualapai Water Rights Settlement Legislation CAP Position: Support the settlement of these water rights claims and support legislation necessary and appropriate to implement a settlement.

3 FEDERAL RULEMAKING EPA Rulemaking, Greenhouse Gas Emissions CAP Position: Monitor proposals to regulate greenhouse gas emissions from large facilities under the Clean Air Act. EPA Rule, Hazardous Air Pollutants (HAP), Maximum Achievable Control Technology (MACT) CAP Position: Monitor the implementation of the MACT Rule and its implications on the Navajo Generating Station. EPA Final Rule, Drinking Water Contaminant Candidate List (CCL3) CAP Position: Monitor the implementation of the final rule on the Drinking Water Contaminant Candidate List 3. SUGGESTED MOTION: I move that the Public Policy Committee recommend that the Proposed 2013 Federal Legislative Agenda be submitted for approval to the Board of Directors.

4 Public Policy Agenda Number 3. Attachment 1. January 10, 2013 The 113 th Congress' First Session will begin on Thursday, January 3, The following list describes CAWCD s proposed federal legislative agenda for calendar year 2013 and, once considered and approved by the Board of Directors, will guide the activities of CAP legislative staff and consultants during the upcoming Session. The Business Planning and Governmental Programs Team will come before the Public Policy Committee on a regular basis to seek guidance and direction on these and other proposed rules and legislation that may arise during the coming year. Priority Issues EPA Rulemaking regarding Navajo Generating Station (NGS) Emissions Controls On August 28, 2009, the U.S. Environmental Protection Agency published the Advanced Notice of Proposed Rulemaking (ANPR) on the Assessment of Anticipated Visibility Improvements at Surrounding Class I Areas and Cost Effectiveness of Best Available Retrofit Technology (BART) for the Four Corners Power Plant and Navajo Generating Station. CAP uses 2.8 million megawatt hours of energy to pump about 1.6 million acre-feet of Colorado River water across a 336-mile long water conveyance system each year. CAP is the largest single end-user of power in the State. Navajo Generating Station provides more than 90% of the power CAP needs to deliver water. CAP Position: 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. Climate Change and Energy Legislation A variety of academic studies predict that, along with other changes to our climate, the southwestern United States will become hotter and drier over the next 50 to 100 years possibly leading to declining supplies of Colorado River water.

5 CAP is in a unique position as the only federal Reclamation project in the U.S. that has a coal-fired power plant as a project component. CAP continues to engage in federal energy legislation as it relates to the energy needs of the Project. CAP Position: Monitor legislative efforts and respond appropriately to mitigate potential impacts on CAP operations and on the sale of Navajo surplus power. Cybersecurity Threats and Legislation Experts have warned that government and industry networks are increasingly vulnerable to cyber-attacks and those attacks could lead to severe economic loss or sustained blackouts. Both Congress and the Administration have attempted to address this issue through legislation. CAP Position: Monitor legislative efforts to address cybersecurity and potential threats to critical infrastructure and vital computer systems. Issues That Require CAP Involvement with Other Stakeholders Clean Water Restoration Act The Clean Water Restoration Act introduced in 2009, included language to remove the word "navigable" from the Clean Water Act and allowed the U.S. Army Corps of Engineers and the EPA to regulate all interstate and intrastate waters. This expansion of the scope of the Clean Water Act was drafted in response to Supreme Court rulings that precluded the EPA from using the Act to regulate pollution in some wetlands because they were not considered navigable bodies of water. Since then, the EPA has released guidance that broadens the scope of waters subject to regulation under the Clean Water Act. Many stakeholders have actively opposed these legislative and regulatory steps saying they will result in permitting delays and greater federal oversight of state and local decisions. CAP Position: 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."

6 Navajo/Hopi Water Rights Settlement Legislation CAP has long been a party to the discussions of a Navajo/Hopi Water Rights Settlement. CAP has worked closely with other stakeholders in negotiations regarding a comprehensive settlement of the claims of the two tribes to the Lower Colorado River, the Little Colorado River and groundwater in the vicinity of the reservations. CAP Position: Continue to seek a settlement of these water rights claims and support legislation necessary and appropriate to implement a settlement. Colorado River Basin Salinity Control Forum The effect of salinity on the Colorado River is a major concern in both the United States and Mexico. The Colorado River Basin Salinity Control Forum was created by the seven Colorado River Basin states in 1973 to act as a common voice for the states on salinity matters and to coordinate with federal agencies in the implementation of the Program. In 1974, the Colorado River Basin Salinity Control Act was enacted, providing the foundation for the state and federal partnership. Forum membership consists of appointees from each of the governors of the Colorado River Basin states and includes water quantity and water quality agency leads and representatives from major water user organizations, including CAP. CAP Position: Support the activities of the Colorado River Basin Salinity Control Forum. Bureau of Reclamation Colorado River Basin Water Supply and Demand Study The Bureau of Reclamation's Upper Colorado and Lower Colorado Regions, in collaboration with representatives of the seven Colorado River Basin States, participated in a study to define current and future imbalances in water supply and demand in the Colorado River Basin and the adjacent areas of the Basin States that receive Colorado River water for the next 50 years. The goal is to develop and analyze adaptation and mitigation strategies to resolve those imbalances. The study, which is due out in late 2012, will characterize current and future water supply and demand imbalances in the Basin and assess the risks to Basin resources.

7 CAP Position: Continue to collaborate with Federal, State, tribal, and environmental stakeholders, to augment water supplies and address challenges with growing water needs and the potential impacts of climate change. Hualapai Water Rights Settlement Legislation The role of Indian reservations in Arizona water supply and management has become increasingly important. With approximately 28% of Arizona lands held in trust by the federal government on behalf of Native Americans, determination of Indian water rights and water use by Indian communities can have a significant impact on other State water users. CAP Position: Support the settlement of these water rights claims and support legislation necessary and appropriate to implement a settlement. Federal Rulemaking EPA Rulemaking, Greenhouse Gas Emissions CAP's participation in the Navajo Generating Station as its primary source of power to pump Colorado River water throughout the State of Arizona necessitates a thorough understanding of the potential impact of EPA rulemakings on greenhouse gas emissions. Many of these proposed rules could impact the CAP and the viability of the Navajo Generating Station. CAP Position: Monitor proposals to regulate greenhouse gas emissions from large facilities under the Clean Air Act. EPA Rule, Hazardous Air Pollutants (HAP), Maximum Achievable Control Technology (MACT) On February 16, 2012, EPA issued its final rule for new and existing coal- and oilfired electric power plants. The rule limits emission of heavy metals, including mercury, arsenic, chromium, and nickel, and acid gases, hydrogen chloride and hydrogen fluoride. The rule also includes revised new source performance standards for new oil- and coal-fired power plants. The revised performance standards limit emissions of particulate matter sulfur dioxide, and nitrogen oxides.

8 The rule allows three years for electric power plants to meet the standards, with the possibility of an additional year upon a demonstration that additional time is needed in order to complete construction. This final rule is currently the subject of pending litigation. CAP Position: Monitor the implementation of the MACT Rule and its implications on the Navajo Generating Station. EPA Final Rule, Drinking Water Contaminant Candidate List (CCL3) The 1996 amendments to the Safe Drinking Water Act required the EPA to establish a Drinking Water Contaminant Candidate List (CCL). The first CCL was published in 1998 and is updated every 5 years. Nationwide occurrence data is needed on all CCL chemicals. The CCL 3 list was published in October 2009 and contains 104 chemicals or chemical groups. CAP Position: Monitor the implementation of the final rule on the Drinking Water Contaminant Candidate List 3. If you have any questions or would like more information regarding any of the issues contained in this report, please contact CAP Business Planning,

9 Public Policy Agenda Number 3. Attachment 2. 1

10 The 113th Congress' First Session will begin on Thursday, January 3, The following list describes CAWCD s proposed federal legislative agenda for calendar year 2013 and, once considered and approved by the Board of Directors, will guide the activities of CAP legislative staff and consultants during the upcoming Session. The Business Planning and Governmental Programs Team will come before the Public Policy Committee on a regular basis to seek guidance and direction on these and other proposed rules and legislation that may arise during the coming year. 2

11 On August 28, 2009, the U.S. Environmental Protection Agency published the Advanced Notice of Proposed Rulemaking (ANPR) on the Assessment of Anticipated Visibility Improvements at Surrounding Class I Areas and Cost Effectiveness of Best Available Retrofit Technology (BART) for the Four Corners Power Plant and Navajo Generating Station. CAP uses 2.8 million megawatt hours of energy to pump about 1.6 million acre feet of Colorado River water across a 336 mile long water conveyance system each year. CAP is the largest single end user of power in the State. Navajo Generating Station provides more than 90% of the power CAP needs to deliver water. CAP Position: 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. 3

12 A variety of academic studies predict that, along with other changes to our climate, the southwestern United States will become hotter and drier over the next 50 to 100 years possibly leading to declining supplies of Colorado River water. CAP is in a unique position as the only federal Reclamation project in the U.S. that has a coal fired power plant as a project component. CAP continues to engage in federal energy legislation as it relates to the energy needs of the Project. CAP Position: Monitor legislative efforts and respond appropriately to mitigate potential impacts on CAP operations and on the sale of Navajo surplus power. 4

13 Experts have warned that government and industry networks are increasingly vulnerable to cyber attacks and those attacks could lead to severe economic loss or sustained blackouts. Both Congress and the Administration have attempted to address this issue through legislation. CAP Position: Monitor legislative efforts to address cybersecurity and potential threats to critical infrastructure and vital computer systems. 5

14 The Clean Water Restoration Act introduced in 2009, included language to remove the word "navigable" from the Clean Water Act and allowed the U.S. Army Corps of Engineers and the EPA to regulate all interstate and intrastate waters. This expansion of the scope of the Clean Water Act was drafted in response to Supreme Court rulings that precluded the EPA from using the Act to regulate pollution in some wetlands because they were not considered navigable bodies of water. Since then, the EPA has released guidance that broadens the scope of waters subject to regulation under the Clean Water Act. Many stakeholders have actively opposed these legislative and regulatory steps saying they will result in permitting delays and greater federal oversight of state and local decisions. CAP Position: 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." 6

15 CAP has long been a party to the discussions of a Navajo/Hopi Water Rights Settlement. CAP has worked closely with other stakeholders in negotiations regarding a comprehensive settlement of the claims of the two tribes to the Lower Colorado River, the Little Colorado River and groundwater in the vicinity of the reservations. CAP Position: Continue to seek a settlement of these water rights claims and support legislation necessary and appropriate to implement a settlement. 7

16 The effect of salinity on the Colorado River is a major concern in both the United States and Mexico. The Colorado River Basin Salinity Control Forum was created by the seven Colorado River Basin states in 1973 to act as a common voice for the states on salinity matters and to coordinate with federal agencies in the implementation of the Program. In 1974, the Colorado River Basin Salinity Control Act was enacted, providing the foundation for the state and federal partnership. Forum membership consists of appointees from each of the governors of the Colorado River Basin states and includes water quantity and water quality agency leads and representatives from major water user organizations, including CAP. CAP Position: Support the activities of the Colorado River Basin Salinity Control Forum. 8

17 The Bureau of Reclamation's Upper Colorado and Lower Colorado Regions, in collaboration with representatives of the seven Colorado River Basin States, participated in a study to define current and future imbalances in water supply and demand in the Colorado River Basin and the adjacent areas of the Basin States that receive Colorado River water for the next 50 years. The goal is to develop and analyze adaptation and mitigation strategies to resolve those imbalances. The study, which is due out in late 2012, will characterize current and future water supply and demand imbalances in the Basin and assess the risks to Basin resources. CAP Position: Continue to collaborate with Federal, State, tribal, and environmental stakeholders, to augment water supplies and address challenges with growing water needs and the potential impacts of climate change. 9

18 The role of Indian reservations in Arizona water supply and management has become increasingly important. With approximately 28% of Arizona lands held in trust by the federal government on behalf of Native Americans, determination of Indian water rights and water use by Indian communities can have a significant impact on other State water users. CAP Position: Support the settlement of these water rights claims and support legislation necessary and appropriate to implement a settlement. 10

19 CAP's participation in the Navajo Generating Station as its primary source of power to pump Colorado River water throughout the State of Arizona necessitates a thorough understanding of the potential impact of EPA rulemakings on greenhouse gas emissions. Many of these proposed rules could impact the CAP and the viability of the Navajo Generating Station. CAP Position: Monitor proposals to regulate greenhouse gas emissions from large facilities under the Clean Air Act. 11

20 On February 16, 2012, EPA issued its final rule for new and existing coal and oil fired electric power plants. The rule limits emission of heavy metals, including mercury, arsenic, chromium, and nickel, and acid gases, hydrogen chloride and hydrogen fluoride. The rule also includes revised new source performance standards for new oil and coal fired power plants. The revised performance standards limit emissions of particulate matter sulfur dioxide, and nitrogen oxides. The rule allows three years for electric power plants to meet the standards, with the possibility of an additional year upon a demonstration that additional time is needed in order to complete construction. This final rule is currently the subject of pending litigation. CAP Position: Monitor the implementation of the MACT Rule and its implications on the Navajo Generating Station. 12

21 The 1996 amendments to the Safe Drinking Water Act required the EPA to establish a Drinking Water Contaminant Candidate List (CCL). The first CCL was published in 1998 and is updated every 5 years. Nationwide occurrence data is needed on all CCL chemicals. The CCL 3 list was published in October 2009 and contains 104 chemicals or chemical groups. CAP Position: Monitor the implementation of the final rule on the Drinking Water Contaminant Candidate List 3. 13

22 14

23 Public Policy Agenda Number 3. Attachment 3. TO: FR: David Modeer and CAWCD Board Terry Bracy, Tracy Tucker, and Brandon Avila DA: December 20, 2012 RE: Federal Legislative Report for Board Meeting Navajo Generating Station (NGS): CAP Board President Pam Pickard's trip to Washington, D.C., at the end of November presented an opportunity for CAP leadership to continue to deliver the message of the importance of NGS to CAP. The Congressional delegation is gearing up for the new session, when it becomes increasingly likely that the NGS rule will be released -- in January or later in the Winter. Navajo-Hopi Water Settlement: With little time left in the Congressional session, efforts to authorize the Navajo-Hopi Water Settlement look to the new Congress for possibilities. Fiscal Cliff Discussions: The Congress and Administration continue to work on a proposal to avert the so-called fiscal cliff that is expected to occur in January if an agreement is not reached. On December 20, House Speaker John Boehner (R-OH) and some key Senate Republican leaders introduced a new "Plan B" proposal. The Speaker has urged the House to adopt an amendment that would extend expiring tax cuts for persons with incomes of less than $1 million. In addition, the House is expected to vote on a sequestration replacement measure (H.R. 6684) that would provide an alternative roster of spending cuts to replace automatic spending cuts in the 2011 debt deal (P.L ). However, the Boehner approach sparked opposition from liberal Democrats and drew tepid responses from some Democratic moderates. Meanwhile, Senate Majority Leader Harry Reid (D-NV) said that the Senate will return on December 27 to deal with the fiscal cliff discussions. The House leadership has also indicated they will be back to work.

24 Farm Bill Extension: The House Agriculture Chairman, Rep. Frank Lucas (R-OK), is exploring options for moving a renewal and extension of the 2008 farm law, as the chances for producing a five-year bill this session fade. The 2008 law expired on September 30. An extension would give lawmakers additional time to produce a five-year farm bill in the 113th Congress if the two Agriculture committees cannot produce a compromise or cannot find a vehicle to attach an agreement. The House bill would save $35 billion over 10 years, while the Senate measure would save $23 billion over the same period. Committee talks have stalled because of differences between the bills. The goal was to have a final measure ready for inclusion in a broader fiscal cliff package. However, it does not appear the measure is part of the discussions. Cybersecurity Legislation: With time running out in the lame-duck session, work on cybersecurity reform legislation will be pushed into the next Congress. Meanwhile, the White House continues to work on a draft executive order to improve the digital defenses of power plants, water systems and other forms of critical infrastructure. Colorado River Basin Study: On Wednesday, December 12, the Bureau of Reclamation (Reclamation) released the Colorado River Basin Water Supply and Demand Study. The study by Reclamation, in collaboration with the Basin States and CAP, projects that within 50 years, demand will outstrip supply by about as much water as is used annually by 3.2 million homes. The study also projects population in the basin, under multiple growth scenarios. Using the high-growth scenario, population could nearly double to about 76.5 million people by Some environmental groups, however, are critical of the high-growth scenario, suggesting such projections are exaggerated. At the same time, a hotter and drier climate could cause a nine-percent decline in water supplies. Solutions to the supply gap range from water conservation, reuse, greater efficiency, and desalination to costly -- and more controversial -- proposals to pipe water in from other basins. The report includes more than 150 proposals from study participants, interested groups and the public, but it did not endorse nor reject any particular solutions. Reclamation Commissioner Mike Connor said the agency plans to convene a workshop of Basin States, Tribes and interest groups in early 2013 to discuss the next steps. The agency will accept public comments on the study for 90 days. 2

25 Secretary of the U.S. Department of the Interior: On December 10, a coalition of conservation, recreation, animal welfare and other groups asked President Obama to nominate Rep. Raul Grijalva (D-AZ) to become the next Secretary of the Interior. Rep. Grijalva was on the President's short list for Interior Secretary in The request is speculative, given that neither the White House nor Interior Secretary Ken Salazar has indicated any changes at the agency, but it reflects a growing appetite among liberal environmental groups for new leadership at the agency. Other possible replacement nominees include outgoing Washington State governor, Christine Gregoire (D); former Colorado governor, Bill Ritter (D); Interior Deputy Secretary David Hayes; and, retiring Sen. Jeff Bingaman (D-NM). House Natural Resources Committee: The House Natural Resources Committee Chairman, Rep. Doc Hastings (R-WA), announced the creation of a new subcommittee on Public Lands and Environmental Regulation to be chaired by Rep. Rob Bishop (R-UT). The new committee will oversee issues related to the National Environmental Policy Act and all public lands under the jurisdiction of the Forest Service and Bureau of Land Management, including national parks and national monuments. The other chairmen and their subcommittees are: Rep. Doug Lamborn (R-CO), Energy and Mineral Resources; Rep. John Fleming (R-LA), Fisheries, Wildlife, Oceans and Insular Affairs; Rep. Don Young (R-AK), Indian and Alaska Native Affairs; and, Rep. Tom McClintock (R-CA), Water and Power. 3