Western Governors: expanding transmission to access low-carbon resources requires federal-state partnership (1/28/09)

FOR IMMEDIATE RELEASE

January 28, 2009

Contact: Doug Larson

303-623-9378 ext. 201

Western Governors: expanding transmission  to access low-carbon resources requires federal-state partnership

DENVER - Western governors are urging congressional leaders and the administration to work with states and the private sector as they develop plans for expanding transmission lines to reach geographically constrained, low-carbon resources at the least cost possible and with minimal environmental impacts.

Writing on behalf of the Western Governors' Association, Govs. Jon M. Huntsman, Jr., WGA Chairman, and Brian Schweitzer, WGA Vice Chairman, recommended a number of factors that should be considered and actions taken in approving transmission proposals. Letters were sent to President Barack Obama, Senate Majority Leader Harry Reid, Speaker of the House Nancy Pelosi, Senate Minority Leader Mitch McConnell, and House Minority Leader John Boehner.

The West is not starting from square one. We have an unprecedented number of proposals for major transmission projects, Huntsman said. Appropriate and timely action by the federal government in concert with the states will avoid the construction of multiple transmission lines to the most promising areas, capture economies of scale and minimize environmental impacts.

Schweitzer said the federal government should assist in the upsizing of viable transmission projects to access geographically constrained, low-carbon resources, including wind, solar and geothermal.

"As our country strives to meet long-term goals related to energy and climate change, demand will increase dramatically for generation from areas that are far from population centers, but rich with low-carbon energy resources, Schweitzer said. The federal government should refocus its efforts to ensure future transmission corridors that involve federal lands will have as little environmental impact as possible and will be permitted expeditiously.

In their letter, the governors noted that once a transmission line is constructed, it is very difficult and expensive to increase the capacity of that line. They asked the federal government to promptly take the following actions as they relate specifically to transmission built to reach geographically constrained, low-carbon resource areas:

• enact legislation to fund the upsizing of near-term transmission projects well into the development process;
• enact legislation to preserve the ability to expand, to their maximum technical capabilities, other proposed projects;
• increase the borrowing authority and authorization for federal power marketing administrations for transmission construction to move generation from these areas;
• provide that interest on bonds issued by or on behalf of states or local governments to finance transmission facilities using these resources be exempt from federal income tax; and
• redirect the implementation of sections of the 2005 Energy Policy Act to focus on expedited cooperative actions with states to preserve transmission corridors and to ensure the timely siting and permitting of large transmission lines.

Huntsman said Western governors share the President's objective of wanting to build transmission to move large amounts of low-carbon energy resources to consumers, and he said the building blocks for succeeding are already in place.

Regional transmission planning in the West is increasingly robust, he said. The WGA is working with the U.S. Department of Energy to identify Renewable Energy Zones, a project that is moving forward rapidly. State requirements for renewable generation and efforts to reduce greenhouse gases also are accelerating demand for renewable generation.

Schweitzer added that Congress needs to provide the Administration the right financial tools to ensure the adequate sizing of transmission to move the renewable generation that will be required well into the future. Western Governors look forward to having a constructive partnership with the federal government.

The Western Governors' Association is an independent, nonprofit organization representing the governors of 19 states and three U.S.-Flag islands in the Pacific. Through their Association, the Western governors identify and address key policy and governance issues in natural resources, the environment, human services, economic development, international relations and public management.

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