“transmission siting and the federal landscape” remarks of james j. hoecker husch blackwell...
TRANSCRIPT
““Transmission Siting andTransmission Siting andThe Federal Landscape”The Federal Landscape”““Transmission Siting andTransmission Siting andThe Federal Landscape”The Federal Landscape”
Remarks ofRemarks ofJames J. HoeckerJames J. Hoecker
Husch Blackwell Sanders Husch Blackwell Sanders Former Chairman of the FERCFormer Chairman of the FERC
Public Participation In Transmission SitingJanuary 26, 2010
Orlando, FL
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Aging and deteriorating infrastructureAging and deteriorating infrastructure More dispersed resources of generationMore dispersed resources of generation Wholesale competition among generatorsWholesale competition among generators Complex bulk power marketsComplex bulk power markets Arrival of the digital economyArrival of the digital economy Electricity consumption doubled 1980-2007Electricity consumption doubled 1980-2007 Shifts of public policy (e.g., RPS, efficiency, demand Shifts of public policy (e.g., RPS, efficiency, demand
response)response) NERC: Transmission additions will triple to 3100 NERC: Transmission additions will triple to 3100
miles/year 2009-2018. On the books now: 90 planned miles/year 2009-2018. On the books now: 90 planned projects each greater than $100millionprojects each greater than $100million
Challenges to The Challenges to The Transmission SystemTransmission SystemChallenges to The Challenges to The
Transmission SystemTransmission System
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Siting – Location, Location...and NeedSiting – Location, Location...and Need States consider “need” for facilities when siting themStates consider “need” for facilities when siting them
Cost allocation – Who Pays? Who Benefits? Cost allocation – Who Pays? Who Benefits? States are influenced by the rate impacts on citizens when consideringStates are influenced by the rate impacts on citizens when considering
need; FERC often defers to states and stakeholders need; FERC often defers to states and stakeholders
Planning – Which Projects Are Needed?Planning – Which Projects Are Needed? Stakeholders & regional planners determine whether projectsStakeholders & regional planners determine whether projects
satisfy reliability, economic, environmental, or public policy needssatisfy reliability, economic, environmental, or public policy needs
Transmission Regulation –Transmission Regulation –It Boils Down to NeedIt Boils Down to Need
Transmission Regulation –Transmission Regulation –It Boils Down to NeedIt Boils Down to Need
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Challenges to New Challenges to New Transmission ConstructionTransmission Construction
Challenges to New Challenges to New Transmission ConstructionTransmission Construction
““Not in my backyard”Not in my backyard” or or “not in my term of office”“not in my term of office” or or “hands off my cheap energy”“hands off my cheap energy”
Conflicts between local, state and regional interestsConflicts between local, state and regional interests Inconsistent state and local regulationInconsistent state and local regulation Uncoordinated Environmental reviewsUncoordinated Environmental reviews Federal land authorization, esp. in the WestFederal land authorization, esp. in the West Lack of timing coordination among siting entitiesLack of timing coordination among siting entities Varying GHG restrictions and RPS’sVarying GHG restrictions and RPS’s Difficulty right-sizing for short and long-term needsDifficulty right-sizing for short and long-term needs Uncoordinated siting between lines and generatorsUncoordinated siting between lines and generators Timing of “need” determinationsTiming of “need” determinations
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““The uncoordinated participation of this wide spectrum of The uncoordinated participation of this wide spectrum of interested parties, and the nature of EHV transmission interested parties, and the nature of EHV transmission crossing jurisdictional boundaries, complicates and crossing jurisdictional boundaries, complicates and impedes the planning, approval, and permitting impedes the planning, approval, and permitting processes. This can further delay the already lengthy processes. This can further delay the already lengthy siting process, add to the cost of transmission projects, siting process, add to the cost of transmission projects, and increase the financial risk to a transmission and increase the financial risk to a transmission developer.”developer.”
Stakeholder Participation:Stakeholder Participation:Important but Often MessyImportant but Often MessyStakeholder Participation:Stakeholder Participation:Important but Often MessyImportant but Often Messy
DOE Electric Advisory CommitteeDOE Electric Advisory CommitteeKeeping the Lights On in a Keeping the Lights On in a
New World” New World” (2009)(2009) (p.49)(p.49)
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Status of Federal SitingStatus of Federal SitingStatus of Federal SitingStatus of Federal Siting
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““The result of the Fourth Circuit decision is nullification of the The result of the Fourth Circuit decision is nullification of the comprehensive scheme erected by Congress with respect to U.S. comprehensive scheme erected by Congress with respect to U.S. transmission policy. The goal of Congress was to strengthen the transmission policy. The goal of Congress was to strengthen the interstate grid to support competitive markets, assure reliability, interstate grid to support competitive markets, assure reliability, and promote development of renewable energy capacity. and promote development of renewable energy capacity. Congress recognized that development of larger interstate Congress recognized that development of larger interstate transmission projects is necessary to accomplish those policy transmission projects is necessary to accomplish those policy goals, and also appreciated that state and local siting is poorly goals, and also appreciated that state and local siting is poorly suited for development of such projects…. [T]he Fourth Circuit suited for development of such projects…. [T]he Fourth Circuit has interpreted Congress’ intent as maintaining each state’s veto has interpreted Congress’ intent as maintaining each state’s veto authority over new interstate transmission facilities no matter authority over new interstate transmission facilities no matter how vital to the national interest.”how vital to the national interest.”
Amicus Brief By FourAmicus Brief By FourFormer FERC ChairmenFormer FERC Chairmen
Piedmont Environmental Council v. FERCPiedmont Environmental Council v. FERCPiedmont Environmental Council v. FERCPiedmont Environmental Council v. FERC
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Pending transmission legislationPending transmission legislation – – S.1462 American Clean Energy Leadership ActS.1462 American Clean Energy Leadership Act HR 2454 American Clean Energy & Security ActHR 2454 American Clean Energy & Security Act
Administration initiatives – Interagency MOU on federal Administration initiatives – Interagency MOU on federal lands; more?lands; more?
New Siting Approaches?New Siting Approaches? Pre-emptive federal backstopPre-emptive federal backstop Natural gas pipeline model; federal siting for high priority linesNatural gas pipeline model; federal siting for high priority lines Interstate siting compactsInterstate siting compacts Adoption of federal, state and local “best practices” for Adoption of federal, state and local “best practices” for
Valuing their viewshedValuing their viewshed Protecting Property valuesProtecting Property values Land conservationLand conservation Multi-agency permittingMulti-agency permitting
Combine siting with regional or interconnection-wide planning Combine siting with regional or interconnection-wide planning processesprocesses
Now What?Now What?Now What?Now What?
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James J. Hoecker, JD, Ph.DJames J. Hoecker, JD, Ph.D
Husch Blackwell Sanders LLPHusch Blackwell Sanders LLP
Hoecker Energy Law & Policy PLLCHoecker Energy Law & Policy PLLC
[email protected]@huschblackwell.com
www.helppllc.com
202-378-2300202-378-2300
www.wiresgroup.com
James J. Hoecker, JD, Ph.DJames J. Hoecker, JD, Ph.D
Husch Blackwell Sanders LLPHusch Blackwell Sanders LLP
Hoecker Energy Law & Policy PLLCHoecker Energy Law & Policy PLLC
[email protected]@huschblackwell.com
www.helppllc.com
202-378-2300202-378-2300
www.wiresgroup.com