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"System--72 % Growing Gap Between State Needs          , -- .  --"2 1fand Title V Grants      1--5b-&Arial,P-- .  --2 pTitle V Grants --- !5 !L--- .  --72 p Grants If Adjusted for Inflation -- ! >3--3>3--3=---2$3YY==Y33----$3DD33----$KYYKK----$YY[[YY----$b~s{s}bb~----$zyxzz{zy----$xvxzx----$tqsvt----$okmqo----$ifhki----$ffeghf----$dacfd----$`_ab`----$__]_a_----$\Y[^\----$X-U-WZX----$4T=R=T4V4T--&Arial-- .  --&!--$$  ---$%  ---8 ---% --%---$ ---% ---$ ---% ---8 ---% --%---D8 ---$%----% -----.$---.%---L8!---F%!-----D8 ---"%----% -----.$ ---.% ---B8~ ~ { y yxxwwwxxyy{~}{yyyxxxyyz{}}---$%~ ~ { y yxxwwwxxyy{~-- %}{yyyxxxyyz{}}---D8 wwvuttrrrsstuwwwwvvuttssstvvvv---"%wwvuttrrrsstuww--ww--% vvuttssstvv--vv---$p p oop---%p p oop---$n n mmn---%n n mmn---`8 hijkkllllkjihhhikkllkkihgggghhhhhjjkkjihhhhh---@%hijkkllllkjihhhikkllkkihgggghh--hh--% hjjkkjihhh--hh--- $ffeedccddeeeef--- %ffeedccddeeeef---T8%baa`^^__`bbbaa`^^__`aaaa``_^]]^^`aabbbb---N%%baa`^^__`bbbaa`^^__`aaaa``_^]]^^`aabb--bb---33-&Arial-- .  --2 "FY 93B--YY-- .  --2 HFY 94h---- .  --2 nFY 95---- .  -- 2 FY96---- .  -- 2 FY97---- .  -- 2 FY98---- .  -- 2 FY99%--==-- .  --2 %FY 2000S--3+-- .  -- 2 40'--3+-- .  -- 2 45'--3+-- .  -- 2 50'--w3w+-- .  -- 2 {55{'--[3[+-- .  -- 2 _60_'-->3>+-- .  -- 2 B65B'---$>QFj>d6j>Q----$AcA};};cAc----$>6v>|Fv>--Times New Romanl-- .  Times New RomanpN-Times New Romanl-Times New RomanAr- Times New Roman- -- 2 z GROWING GAP    z-Times New Roman- Times New Roman- --ࡱ;  METAFILEPICT"3--3>3--3=---2$3YY==Y33----$3DD33----$KYYKK----$YY[[YY----$b~s{s}bb~----$zyxzz{zy----$xvxzx----$tqsvt----$okmqo----$ifhki----$ffeghf----$dacfd----$`_ab`----$__]_a_----$\Y[^\----$X-U-WZX----$4T=R=T4V4T--&Arial-- .  --&!--$$  ---$%  ---8 ---% --%---$ ---% ---$ ---% ---8 ---% --%---D8 ---$%----% -----.$---.%---L8!---F%!-----D8 ---"%----% -----.$ ---.% ---B8~ ~ { y yxxwwwxxyy{~}{yyyxxxyyz{}}---$%~ ~ { y yxxwwwxxyy{~-- %}{yyyxxxyyz{}}---D8 wwvuttrrrsstuwwwwvvuttssstvvvv---"%wwvuttrrrsstuww--ww--% vvuttssstvv--vv---$p p oop---%p p oop---$n n mmn---%n n mmn---`8 hijkkllllkjihhhikkllkkihgggghhhhhjjkkjihhhhh---@%hijkkllllkjihhhikkllkkihgggghh--hh--% hjjkkjihhh--hh--- $ffeedccddeeeef--- %ffeedccddeeeef---T8%baa`^^__`bbbaa`^^__`aaaa``_^]]^^`aabbbb---N%%baa`^^__`bbbaa`^^__`aaaa``_^]]^^`aabb--bb---33-&Arial-- .  --2 "FY 93B--YY-- .  --2 HFY 94h---- .  --2 nFY 95---- .  -- 2 FY96---- .  -- 2 FY97---- .  -- 2 FY98---- .  -- 2 FY99%--==-- .  --2 %FY 2000S--3+-- .  -- 2 40'--3+-- .  -- 2 45'--3+-- .  -- 2 50'--w3w+-- .  -- 2 {55{'--[3[+-- .  -- 2 _60_'-->3>+-- .  -- 2 B65B'---$>QFj>d6j>Q----$AcA};};cAc----$>6v>|Fv>--Times New Romanl-- .  Times New RomanpN-Times New Romanl-Times New RomanAr- Times New Roman- -- 2 z GROWING GAP    z-Times New Roman- Times New Roman- --BB1>$"Small Circle"0  C-[Pg#]C- 6k$Triangle0  1, 2, 3,Level 1Level 2Level 3Level 4Level 5'dxd( $ Figure  1  !86&OLE 2.0 Box <=8C HKKKK !  ݛ88H.6.6&e&XX7XXdXXd7ќ.6,.6/6/6.6.6/6.6-.6/61616/6/616/6//616161616016@  46&&e464646262646L L&&e4626C26363626.26BoardandCommitteeActivities46#&e& LL#4646&&e46#&e&d#  H XX&&eFollowingare: v   I.0  AsynopsisofBoardactions,andBoardactivitiesinsupportofWGAinitiatives, B sincetheOctober1998meeting; ##   II.  Areviewofthecommitteestructure;and V    III.  AreportontheactivitiesoftheCommitteessincetheOctobermeeting. <   I.SynopsisofBoardActionsSinceOctoberMeetinginSanDiego     OnNovember9,IdahoGovernorPhilBattappointed BillEastlakeoftheIdahoPUCtobe r  IdahosrepresentativetotheBoard .ThisisthefirsttimeinmorethantwodecadesthatIdaho X  hasbeenanactivememberoftheBoard.Idahohaspaidfullmemberdues.TheBoardnowhas11fullvotingstatemembers,oneassociatestatemember,andthreeassociateCanadianprovinces. AsrecommendedbytheCommitteeonRegionalElectricPowerCooperation(CREPC)and 8 endorsedbytheWIEBBoardofDirectorsinSanDiego,the Boardhasenteredinto$4,400  contractswiththreePUCs (NV,OR,MT)intheWesternInterconnectiontosupporttheworkof  CREPC.RecallthattheproposalfromCREPCwasthatWIEBmatchthecontributionsfromstatePUCs(includingthecontributionfromtheWesternConferenceofPublicServiceCommissioners). InresponsetoDOEsDecember3solicitation,theBoard submittedtoDOEaoneyear T $150,000proposaltosupporttheworkofCREPC ,includingstatetraveltowesternindustry : meetings.Staffalsodevelopedathreeyear,#&e&XX#XX&&eԀ$250,000#&e&XX #XX&&eԀproposal#&e&XX> #XX&&eԀwhichWGAsubmittedtoDOEto h  supporttheworkofthePollutionPreventionForumoftheWesternRegionalAirPartnership(WRAP). OnDecember34inPhoenix,CalStarthelditssecondworkshoptoexploretheconceptof  forming WestStart andonJanuary2122CalStartheldanorganizationalmeetinginDenver.Many  ofthequestionstheBoardhashadregardinghowCalStartoperatesandhowWestStartwouldoperateweremorecompletelyaddressedinPhoenixandDenverthanineitherthefirstworkshopinOregonorinresponsetoinformationrequestsfromtheBoard.InFebruary,theBoardsubletoneofitsvacantofficestoWestStartforitsDenveroffice,whichisstaffedbyTomBrotherton. WGAhelditswintermeetingonDecember34anditsenvironmentalsummit onDecember J$!$ 45.Noenergyrelatedresolutionswereadopted.TheenvironmentalsummitwasforthepurposeofreceivingfeedbackonthegovernorsenvironmentaldoctrinecalledEnlibra.Theturnoutofover400wasmorethantwicewhatwasexpected.Whiletherewereinevitabledifferencesamongthediverseinterestsintheroom(e.g.,propertyrightsadvocatesandnationalenvironmentalgroups),thegeneralreadingisthattheEnlibraconcepthasmerit.AnumberofwesterngovernorsarelikelytosignexecutiveordersdirectingthattheEnlibraprinciplesbeusedbystateagencies.MoreinformationonElLibraisavailableathttp://www.westgov.org/Enlibra. InconjunctionwiththeNationalGovernorsAssociationswintermeeting,WGAheldabreakfast `,)- meetingonFebruary23atwhicharesolutiononthe allocationofOuterContinentalShelfoil F-). revenues wasadopted.Seehttp://www.westgov.org/wga/policy/99001.htmforthetextofthe ,.*/ resolution.WGAChairmanGovernorGeringer(WY)andGovernorKempthorne(ID)heldabrief meetingwithEnergySecretaryRichardson atwhichitwasagreedtoinvitetheSecretarytothe  WGAAnnualMeetinginJackson,Wyoming,onJune1315. II.CommitteeStructure  ~ TheBoardhasthreecommittees.Thecommitteestructureallowssubgroupingsofstates/provincestopursueparticularissuesindepth.Onecommittee,theCommitteeonRegionalElectricPowerCooperation,isajointcommitteeoftheBoardandtheWesternConferenceofPublicServiceCommissioners.TheBoardchairappointscommitteechairs.(TheexceptionisthechairoftheCommitteeonRegionalElectricPowerCooperationwhoisjointlyappointedbythechairsofWIEBandtheWesternConferenceofPublicServiceCommissioners.)Boardmembersmakeappointmentstocommitteesofinteresttotheirstate/province.Typically,Boardmembershaveappointedthestate/provincialexpertsinaparticulartopictosuchcommittees.OftencommitteeappointmentsarefromagenciesotherthantheBoardmember'sagency.Inpursuingtheirissues,thecommitteeshavedevelopedworkingrelationshipswithoutsideparties,suchas:theReclamationCommittee'sworkwiththeOfficeofSurfaceMiningandtheInterstateMiningCompactCommission(whichrepresentseasternstates);theCommitteeonRegionalElectricPowerCooperation'srelationshipwiththeWesternSystemsCoordinationCouncil,westernregionaltransmissiongroups,DOE,andtheFederalEnergyRegulatoryCommission;andtheHighLevelRadioactiveWasteCommittee'srelationshipwithDOE'sOfficeofCivilianRadioactiveWasteManagement,theDepartmentofTransportation,andtheNuclearRegulatoryCommission.ThefollowingchartshowstheBoard'scommittees.̜mK9)%`|0P0 `@E P0 P0  mߛ 8 8 8#8##&e&XX # <8 8  HH XX&&eIII.CommitteeActivitiesSinceApril H  @    ReclamationCommittee   [TheReclamationCommitteeincludesthestatesofColorado,Montana,NewMexico,Utahand  Wyoming.MikeLong,DirectoroftheColoradoDivisionofMinesandGeology,chairstheCommittee.] d  ActivitiesSinceOctober x 0  TheCommitteehasbeen sharinginformationamongwesternreclamationagencies onOSMs D   proposednewownershipandcontrolrules;reforestationinitiatives;neededskillsofOSMsnewhireswhowillbereplacingOSMemployeeswhoareretiring;andOSMsresponsetorevegetationproposalsbystates.MonthlyconferencecallscontinuebetweenOSMstechnicalassistanceofficeintheWestandwesternstatestoidentifyanddevelopinitiativestomeetstatetechnicalneeds.Thisisamodelofstate/federalcoordinationataworkinglevelthatisworthreplicating. OnJanuary15,CommitteeChairmanMikeLong(CO)representedwesternstatesatameetingof F the OSMOversightTaskForce. TheCommitteehasmadesignificantprogressinredirecting t, OSMsoversightofstateprogramsawayfromreviewsofstateprocessestoexaminingenvironmentaloutcomes.ThecommitteecontinuestoworktopreventanybackslidingbyOSM. OnFebruary26,MikeLong(CO)andDougLarson(WIEB)metwiththe newOSMregional   directorfortheWest toreinforcetheCommitteespriorities.   OnMarch4,DougLarson(WIEB)receivedonbehalfoftheBoardandtheReclamation v Committeethe InteriorDepartmentsConservationServiceAward ,whichisthehighestaward \ giventopartiesoutsidetheDepartment. InlateMarch,MikeLong(CO)representedtheCommitteeat OSMsmanagementretreat to V provideguidanceonwesternstatepriorities. TheCommitteeisconsideringameetingwithselectedeasternandmidwesternstatesearlynext    yeartocompare bondreleasepractices .  !  TheCommitteehasbeenreviewingthePresidentsproposedbudgetforOSMinFY2000.Of "r# particularconcernisinsufficientfundingofstateregulatorygrantsandthecontinuingproblemofinsufficientappropriationsfromtheAbandonedMineLandFund,whichhasasurplusexceeding$1.5billionasreceiptsoutstripappropriations.Followingisthe testimonybeingsubmittedtothe l%$"& HouseandSenateAppropriationsCommittees bytheReclamationCommittee .  R& #' #&e&XX#Hќ  )v&+ 88 &&eSIMILARLETTERTOHOUSEAPPROPRIATIONSCOMMITTEE H TheHonorable_Slade_ԀGorton,Chairman(  TheHonorableRobertC.Byrd#  (&#,RankingMinorityMember : InteriorAppropriationsSubcommitteeSenateAppropriationsCommitteeSD127_Dirksen_ԀSenateOfficeBuildingWashington,D.C.205106033 ` RE:_OSM_ԀFY2000Budget     DearChairmanGortonandSenatorByrd:(   ` TheReclamationCommitteeoftheWesternInterstateEnergyBoardispleasedto   provideyouwithitsviewsontheproposedbudgetfortheOfficeofSurfaceMining(_OSM_)forFiscalYear2000.TheReclamationCommitteeiscomprisedoftheminereclamationagenciesinthefivemajorwesterncoalproducingstatesofColorado,Montana,NewMexico,UtahandWyoming.In1997,thesestatesproduced437milliontonsofcoal,accountingfornearly40percentofthenation'stotalcoalproduction. ` WehavetwoconcernsregardingthePresidentsproposal:0 ` (1)Despitetherequestedincreaseinappropriationsinabandonedminelandfunds,thesurplusinthefundcontinuestogrow,moremoneyisbeingdivertedtononreclamationexpenditures,andseriousabandonedmineproblemsinourstateswillcontinuetogounreclaimed;and ` `  0 ` (2)FundsrequestedforTitleVregulatorygrantsareinadequatetomeettheneedsofthestates. ` `   ` Wesupportotherelementsoftheproposedbudget,suchasthefundingoftraining,technologytransfer,technicalassistanceandtheTechnicalInformationProcessingSystem.ThesearecentralfunctionswhichOSMneedstoperformtoensureahighqualityimplementationoftheSurfaceMiningActbythestatesandOSM.Wealsocontinuetobelievethattheagencyisontherighttrackinfocusingitsoversightofstateprogramsonenvironmentaloutcomes,ratherthanprocessreviews. AbandonedMineLandFunding  v%  ` WeappreciatetheAdministrationseffortstoincreaseAMLfundinginFY2000andtorestoretheminimumstateprogramfundingto$2million.However,thePresidentsproposalfallsshortofwhatisneededtoprotecttheenvironment.UndertheproposalforFY2000,only55centofeverydollarofnewincometothefundinFY2000wouldbespenttocleanupabandonedmines.Diversionsfromthefundwouldreacharecord$105millionandthesurpluswouldgrowtoarecord$1.5billion. ` WeurgetheCommitteetoimplementtherecommendationsofwesterngovernors by l%$". makingaonetimeappropriationof$1.4billiontoreducethesurplustoaworkablelevel.  *&"/ #  ('#ThefundswouldbetransferredtoaccountswithintheTrustFundthatwouldbeestablishedfor � eachstate/tribe.Eachstate/tribewouldmanageitsaccountandwithdrawmoneyfromtheaccountonanannualbasisasdescribedinaReclamationManagementPlan.TheOfficeofSurfaceMiningwouldcontinuetoauditstateexpendituresfromthefund.EachstatereceivingmoneyfromthefundwouldberequiredtodevelopaReclamationManagementPlanthatcoverstheexpenditureofitsshareoftheunexpendedbalanceinthefundandfutureexpectedannualreceiptsfromthefundovertheremainingsixyearsofthe_AML_Ԁfee.(   \+(6  ` Inadditiontotheonetimeappropriation, werecommendthatCongressmakean ,)8 annualappropriationforFY2000of$382million.Thisannualappropriationisequalto -N*9 expectedcollectionsinFY2000#  (3#(   . H  ` WerecommendthatintheappropriationsofAMLfunds,firstpriorityshouldgoto | fundingthestateshareofcollections.  : #  (55#(   TitleVGrants   #  (E6#(   ` UnderthePresidentsFY2000budgetproposal,appropriationsforstateregulatory z2 grantswouldremainessentiallyunchangedfortheeighthconsecutiveyear.Thefreezeon ::  regulatorygrantsat$50.7millionignoresthebudgetrealitieswhichallagenciesfaceandwhich_OSM_Ԁhasrecognizedforitsownoperations,butnotforstateoperations.Forexample,whilestateregulatorygrantsremainfrozen,_OSM_sexpenditures(excludinggrants)willincrease5.0percentforEnvironmentalRestoration,3.6percentforEnvironmentalProtection,2.3percentforTechnologyDevelopmentandTransfer,3.0percentforFinancialManagement,and2.7percentforExecutiveDirectionandAdministration.̜   ::mK)9)%`|08 `hE :5 6mߛ ` ThegraphcomparespastandproposedappropriationsforTitleVgrantswiththeleveloffundingthatwouldhavebeenneededtosustainstatereclamationeffortsattheirFY93level.#  (6#(   ` WesternstateshaveexaminedtheproposedTitleVgrantallocationintheproposedFY ~! 2000budgetandcomparedtheallocationtowhatisneededtosustaintheirstateprograminFY2000.TheresultisashortfallintheWestoftenpercentornearlythreequartersofamilliondollars.Weunderstandthatnationwidetheshortfallmayexceed$6million. Toensurefunding $ ofthefederalshareofstateregulatorygrants,theReclamationCommitteeurgesCongresstoappropriate$56.7millioninregulatorygrants.  |4& #  ({;#(   ` Westernstatesappreciatethisopportunitytopresentourviewson_OSM_sproposedFY  ( 99budget.Wewouldbepleasedtorespondtoanyrequestforclarificationoradditionalinformation.Sincerely, ` MichaelLong,ChairmanReclamationCommitteeandDirector,ColoradoDivisionofMineralsandGeology8:%8H%#(&e& (V%##&e&&(&e>#  ")%3    XX&&eHighLevelRadioactiveWasteCommittee  H М#&e&XXD@#16}&&e#&e&}QA#168@̜XX&&e[ThisCommitteefocusesonissuesrelatedtothetransportationofcommercialspentnuclearfuel  andhighlevelradioactivedefensewaste(SNF/HLW)undertheNuclearWastePolicyAct(NWPA).TheNWPAtransportationprogramwouldinvolveanunprecedentednumberofSNF/HLWshipmentstravelingbyrailandtruckthroughnumerouswesternstatestoapotentialstoragefacilitylocatedatYuccaMountain,Nevada.KenNilesoftheOregonOfficeofEnergyandCaptainAllanTurneroftheColoradoStatePatrolcochairtheCommittee.] | 4  ActivitiesSinceOctober  H    CooperativeAgreementFundingStatus: XXXXԀ#XXXXC#XXXXTheOfficeofCivilianRadioactiveWaste   Managementhaseliminatedfundingforalltheregionalcooperativeagreementgroups(includingtheWIEBHighLevelRadioactiveWasteCommittee,theCouncilofStateGovernmentsMidwesternHigh-LevelRadioactiveWasteCommitteeandNortheasternHigh-LevelRadioactiveWasteTransportationTaskForce;andtheSouthernStatesEnergyBoardsAdvisoryCommitteeonRadioactiveMaterialsTransportation)#XXXX1D#XXXX.FundingforfurtherCommitteeactivitieswassettoexpire J inApril1999underOCRWMscurrentplan,however,theCommitteecurrentlyhasapproximately$15,000inunspentfundswhichOCRWMwillallowtobecarriedoverthroughthisJune.TheCommitteeintendstousethesecarryoverfundstoconductafinalmeetinginlateMay.Aftertheexpenditureofthesefunds,OCRWMhasaskeditscooperativeagreementholderstoexecuteanunfundednocostextensionforatleastoneyear.Suchanextensionwouldkeepopenthelegalinstrumentforthecooperativeagreement#XXXXEF#XXXX,therebymakingitmoreexpedienttorecommence  Мfunding,shouldOCRWMdecidetodoso.#XXXXH#   Litigation: OnOctober30,theU.S.CourtofFederalClaimsinWashington,D.C.ruledinfavor ` ofYankeeAtomicPowerCo.inthecompany'ssuitagainstDOE.YankeeAtomicwassuingDOEfor$70millionindamagesovertheagency'sfailuretocommenceacceptingspentnuclearfuelfromtheutilitybyJanuary31,1998,asrequiredundertheNWPA.Thecourtsaiditwouldschedulefurtherproceedingstodecidetheamounttobeawarded.ThecaseestablishedaprecedentwhichcouldopenupDOEandthefederalgovernmenttotremendousfinancialliabilities.InDecember,theSupremeCourt,withoutcomment,letstandalowercourtrulingthatDOEcanbesuedformonetarydamagesbyutilitieswhichoperatenuclearpowerplants.However,byrefusingtooverturnthedecision,theSupremeCourtalsoletstandtherulingthatDOEcouldnotbeforcedtobeginacceptingSNFbeforeitisproperlypreparedtodoso.Bytheendof1998,some11utilitycompaniesfiledlawsuitsagainstDOEseekingdamagesrangingfrom$70millionto$1.5billion.InFebruary1999,DOESecretaryRichardsonproposedtoaddressthestorageissuebyofferingtohaveDOEtaketitletotheSNFnowstoredonsiteatreactorsaroundthecountry.AccordingtoRichardson,inadditiontoassumingownershipofthefuel,DOEwouldassumeresponsibilityforon-sitestoragemanagement.Thecostofsuchstoragewouldbeoffsetbyratepayerfeescollectedoverthelast18yearsintheNuclearWasteFund.Inreturn,utilitiesowningnuclearpowerplantswouldbeexpectedtodroptheircurrentlawsuitsagainstDOE.Thusfar,theproposalhasnotbeenϜwellreceivedbyutilities.However,onMarch29,CommonwealthEdison,thenationslargestnuclearutility,indicatedthatitmayacceptRichardsonsoffer.̛̜ l-$*/  InterimStorageLegislation: OnJanuary6,H.R.45,"theNuclearWastePolicyActof1999," H wasintroducedintheU.S.HouseofRepresentatives.Thebill,whichcurrentlyhas47co-sponsors,seekstoforcetheconstructionandoperationofaninterimSNF/HLWstoragefacilityinNevadaandsetsadeadlineofJune30,2003forDOEtobeginacceptingandtransportingSNF/HLWtotheinterimfacility.ThebillwasintroducedbyRep.FredUptonofMichiganandisstrikinglysimilartolastyear'sinterimstorageproposalintheHouse(H.R.1270),whichwasalsointroducedbyRep.Upton.Thelegislationfallsfarshortofcomportingwiththenuclearwastetransportationpolicyprovisionsofwesternstates.OnMarch15,SenatorFrankMurkowski(R-AK)introducedS.608,whichwouldalsorequiretheconstructionofaninterimstoragefacilitynearYuccaMountainthatwouldbeginacceptingnuclearwastebynolaterthanJune30,2003.Asintroduced,thebillhasfourcosponsorsandcontainsmanyofthetransportationprovisionswhichwesterngovernorshavecalledforoverthepasttenyears,including:requiringDOEto evaluatetherelativesafetyofshippingmodesandroutes;requiringDOEtodesignatemandatorypreferredroutesbasedonitssafetyanalysis;requiringDOTtopromulgaterailroutingregulations;statingthatnoshipmentswilloccurunlesstechnicalassistanceandfundshavebeenmadeavailabletostatesandtribesatleastthreeyearsinadvanceofshipments;providingthat75percentofthefundingbeallocatedtostates/tribesbasedonprojectedshipmentmilesthrougheachjurisdiction,while25percentistobeallocated toensureminimumfundingandprogramcapabilitylevels. PrivateInterimNuclearWasteStorageinUtah: TheNuclearRegulatoryCommissionisinthe & processofpreparinganenvironmentalimpactstatementaddressingtheproposedconstructionofaprivateinterimSNFstoragefacilityinUtah.ThefacilitywouldbeconstructedunderthependinglicenseapplicationfiledwiththeNRCin1997byPrivateFuelStorage,L.L.C.(PFS),whichisaconsortiumofutilitiesowningnuclearpowerplants.TheproposedfacilityistobelocatedontheGoshuteIndianreservation60milesoutsideofSaltLakeCity.UtahGovernorMikeLeavittstronglyopposesthefacility. DOEDevelopmentofTransportationProtocols: DOEhasinitiatedaprocessthroughitsSenior V ExecutiveTransportationForumtodevelopaseriesofprotocolswhichcanbeappliedacrosstheDepartmentsvariousradioactivewastetransportationprograms.Inconjunctionwiththiseffort,theCommittee,alongwiththeotherregionalcooperativeagreementgroups,sentalettertoEnergySecretaryBillRichardsoninOctober.TheletterreiteratedtheconsensusSNF/HLWtransportationpolicyprovisionsconveyedtoDOEbytheregionalgroupsinMarch1998.TheOctoberletteralsostatedthat bydecidingtodevelopitsnewprotocols,theSeniorExecutiveTransportationForumevidentlyagreeswiththeregionsthattheDepartmentshouldadoptamoreconsistentapproachtotransportationplanning. DOETransportationExternalCoordinationWorkingGroup(TEC/WG): InJanuary, R& #' CommitteemembersandstaffattendedDOEsTEC/WGmeetinginJacksonville,Florida.InJacksonvilleDOEconvenedthefirstmeetingofanewTransportationProtocolsTopicGroup.Throughthistopicgroup,DOEreleasedadraftmatrixofcurrenttransportationregulationsandpractices,organizedinto17separateprotocolareas.InMarch,CommitteemembersandstaffprovidedDOEwithfeedbackonDOEsproposedprocessfordevelopingtransportationprotocols,asreflectedinthedraftmatrix.TheserecommendationscalleduponXXXXtheTEC/WGProtocolsTopic +n(- GrouptoreviewtheWIPPTransportationSafetyProgramImplementationGuideanddeveloptheprotocolswithreferencetotheprovisionsinthatdocument.#XXXX`#ԀThecommentsalsoindicatedthat -:*/ transportationmodeselectionaswellastheselectionofatransportationcaskshouldbeincludedintheprocessasseparateprotocols.CommitteemembersalsocontinuedtoparticipateintheTEC/WGCommunicationsTopicGroup. FundingtoStatesandTribestoPrepareforNuclearWasteShipments: DOEhasshelved  furtherdevelopmentonitsprogramtoimplementSection180(c)oftheNuclearWastePolicyActtoprovidefundingandtechnicalassistanceforstatesandtribestoprepareforSNF/HLWshipments. ForeignFuel: DOEisintheprocessofplanningtoconductcrosscountryshipmentsofforeign x 0 researchreactorSNFfromtheSavannahRiverSiteinSouthCarolinatotheIdahoNationalEnvironmentalandEngineeringLaboratory.TheshipmentsareexpectedtotravelalongI80throughNebraska,Wyoming,UtahandIdahobytrucklatethissummer.AtWGAsrequest,staffhasprovidedsupportonforeignfuelissues.    /Vќ@  CommitteeonRegionalElectricPowerCooperation  H [ThisisajointcommitteeoftheBoardandtheWesternConferenceofPublicService  Commissioners.Itincludesallthestatesandprovincesintheelectricallysynchronizedwesterngrid,plusSaskatchewan.TheNorthwestPowerPlanningCouncilalsoparticipatesintheCommittee'smeetings.RogerHamiltonoftheOregonPublicUtilityCommissionchairstheCommittee.] ActivitiesSinceOctober  x 0  ̜ OnNovember23,CREPCChairmanRogerHamilton(OR)wrotethefollowinglettertoWSCCon D   theproposed ReliabilityManagementSystem . *  88 XX@PP"November23,1998   Mr.DennisEyre,ExecutiveDirectorWesternSystemsCoordinatingCouncil540ArapeenDrive,Suite203SaltLakeCity,UT84108DearDennis: ` Asyouknow,ayearagotheCommitteeonRegionalElectricPowerCooperation(CREPC)instructeditsexofficiomemberstotheWSCCBoardofTrusteesonthenextstepsthatneededtobetakentoimprovethereliabilitymanagementsystemfortheWesternInterconnection.CREPCrecommendedthat:8 ` WSCCshouldproceedwiththephasedintestingoftheReliability Z ManagementSystem. ` x` x 8 ` TheReliabilityManagementSystemproposalisaninterimsolution,therefore L theWSCC/controlareacontractsmustbelimitedinduration. ` x` x 8 ` TheWesternInterconnectionneedstobeginamultigroupinitiativeinvolving ! representativesofthewesternregionaltransmissionassociations,ISOs,CREPCandWSCCtodevelopalternativeprocessesandaframeworkforestablishingreliabilitycriteria.Allalternativesmustincludeapublicprocessforsettingcriteria. ` x` x 8 ` WSCCneedstoidentifythecommercialimplicationsofreliabilityactions.B"'` x` x 8 ` TheWesternInterconnectionneedstodevelopafederallegislativeproposalto #v ) cementthelegalauthoritytoenforcemandatoryreliabilitycriteria. ` x` x  ` SignificantprogresshasbeenmadeoverthepastyearintestingtheReliabilityManagementSystem,indevelopingamorepublicprocessforsettingreliabilitystandards,andintheWesternInterconnectionCoordinationForumsworktoreexaminehowbesttomanagetheWesternInterconnection. ` Webelievethatwithoutclearlegalauthorityinfederallegislationitwillbedifficulttoassembleaworkableandlegallydefensiblemandatoryreliabilitysysteminwhichallcontrolareasandgeneratorscanbeheldaccountablefortheircompliancewithinterconnectionstandards. ` WSCChasmademajorprogressontheReliabilityManagementSystemthisyear.WhileCREPChasnotreviewedindetailthedraftWSCCControlAreaOperatorcontractsorthe d-*6 /V XH  $6/V XH  $6proposedfilingwiththeFederalEnergyRegulatoryCommission,wesupportfutureprogresstowardmandatorystandards.Sincerely, C RogerHamilton# Ct#   RogerHamilton,ChairmanCommitteeonRegionalElectricPowerCooperation8i8i#XX i#$6XrX&&$6InlateNovember,theCommitteevotedto adoptthefollowingsetofprinciplesbywhichit    intendstoevaluatelegislativeproposalsonreliability:     88Ҝ $6#&&XXrs#$6 XXԛ@ CommitteeonRegionalElectricPowerCooperations(CREPC)  L  @} } PrinciplesforManagingtheWesternInterconnection  R  8 ` TheWesternInterconnectioniselectricallyisolatedfromtheotherthree   interconnectionsinNorthAmerica.TheWesternInterconnectionservesconsumersinallorpartsof14westernstates,twowesternCanadianprovinces,andnorthwestMexico.` x` x  1.Appropriategeographicdecisionmakingandlocalempowerment .Gridmanagement < decisionsshouldbemadeatthelowestlevel,providedtherearenosignificantelectricalexternalitiesassociatedwithsuchdecisions.0 ` A.AttheNorthAmericanandnationallevels,decisionsmadewithintheWesternInterconnectionshouldbefinal;provided,however,federalregulatorsmayoverturnaWesternInterconnectiondecisionif,underspecificprovisionsoflaw,theydetermine,orallowtostandadeterminationthattheWesternInterconnectiondecisionsconflictwiththeneedforuniformityofstandardsacrossallinterconnectionsinNorthAmericainordertopromoteawellfunctioningcompetitiveelectricitymarket. ` `  0 ` B.WithintheWesternInterconnection,decisionsatthesubinterconnectionlevelshouldbeencouraged,providedallpartiesintheinterconnectionareawareoftheissuesbeingdecidedandprovidedthereisarapiddecisionprocesstodetermineiftherearesignificantelectricalexternalitieswhichwouldthenrequireabroaderreviewoftheissues. ` `   2.Accountabilityfordecisions. Agridmanagementstructuremustclearlyestablishthelegal, d% politicalandeconomicauthorityandresponsibilityfordecisionsaffectingtheWesternInterconnection.0 ` A.Regardingreliability,ataminimum,anorganizationchargedwithmanagingtheWesternInterconnectionneedstobeempoweredto(i)adoptaneconomicvalueforreliability,(ii)setstandardsforplanning,maintenanceandoperationtoassureeconomiclevelsofreliability,(iii)allocatethecostsofreliabilitymeasuresfairlyamongbeneficiaries,(iv)monitordirectly(orempowerstatestomonitor)compliance,and(v)overseeasecuritycenterorcenterstomonitorhourlyoperationofthegrid. ` `   3.Efficient,responsivedecisionmaking. Gridmanagementdecisionprocessesmust(a)be 'F$0 efficient,transparent,public,andopentoallinterestedparties,(b)notdiscriminateagainstanyclassofmarketparticipants,(c)notimposerequirementsthataredetrimentalorinappropriatefortheWesternInterconnection,(d)resultintimelydecisions,and(e)followdueprocesswiththeopportunityforappealtoanindependentbody.SuchanappealsbodymustactexpeditiouslyonappealsandmustbaseitsjudgmentonwhatisbestforconsumersintheWesternInterconnection. 4.Marketsbeforemandates. Wheneverpossible,gridmanagementintheWestern ,x)7 Interconnectionshouldfurtherthedevelopmentofeffectivecompetitionandtheefficientallocationofresourcesinbulkpowermarkets. <.*9 Ї 5.Explicittradeoffs. Inbothshorttermoperationaldecisionsandlongtermpolicydecisions, H commercialandreliabilityinterestsareinextricablylinked.0 ` A.Insettingthedesiredlevelofreliability,thecostsandbenefitsofreliabilitytoconsumerslocallyandgridwidemustbealigned. ` `  0 ` B.Thevalueconsumersplaceonavoidingoutages,mustbecomparedtothecostsofachievingthatlevelofreliability. ` `  0 ` C.Theevaluationofthecostsandbenefitsoflevelsofreliabilitymustbemadebyanindependentbody. ` `  6. Accommodationoftheinternationalgrid. Decisionprocessestomanagetheelectrically  l  distinctWesternInterconnectionmustbestructuredtopermitfullandequalparticipationbyCanadian,MexicanandU.S.entitiesintheInterconnectionandmustaccommodatethelegalstructuresinallthreenations.7. Protectionofthepublicinterest. DecisionsregardingthemanagementoftheWestern j"  Interconnectionareimbuedwiththepublicinterest.0 ` A.ThepublicinterestisbestrepresentedthroughpublicofficialsinthestatesandprovincesintheWesternInterconnectionwhoaredirectlyaccountabletoelectricpowerconsumersintheregion. ` `  0 ` B.PublicofficialsshouldberepresentedinthegovernanceoftheWesternInterconnectioneitherasvotingmembersofboardsorasparticipantsintheselectionofindependentboardmembers. ` `  Ѐ8. Taxationwithrepresentation. Withtheriseofacompetitivemarket,voluntaryduesare  insufficienttoensurethefundingofgridmanagementfunctions.0 ` A.Afeeongridusersisthemostequitablemethodoffinancingagridmanagementinstitution. ` `  0 ` B.Moniespaidbywesternconsumersmustbeusedtobenefitwesternconsumers. ` `  0 ` C.Thosespendingmoniescollectedfromwesternconsumersmustbeaccountabletowesternconsumers. ` `  8v8vҜ#XX v#$6XrX&&$6 $6#&&XXr#XrX&&$6OnDecember8,CommitteechairmanRogerHamilton(OR) wroteFERCurgingthe d" commissiontodesignitsproposed%6stateconsultatio%6&6%6n%6&6'6n'6conferencesalonginterconnectionlinesandthatrepresentativesofwesternCanadianprovincesandMexico,aswellasallrelevantstateagencies,beinvitedtoattend .$6#&&XXr #XrX&&$6 ^% Л OnJanuary7,onbehalfoftheCommittee,theBoard resubmitteda$150,000,oneyear *!' proposaltotheDepartmentofEnergy tohelpstatesparticipateinwesternindustrymeetings. "( ThisproposalhasbeensupportedinajointlettertoDOEfromtheWesternRegionalTransmissionAssociation,SouthwestRegionalTransmissionAssociation,NorthwestRegionalTransmissionAssociation,WesternSystemsCoordinatingCouncilandtheCaliforniaISO. OnJanuary29,theCommittee )6developedanissuepaperonRTOs)6-6)6 )6-6)6)6+6and+6-6+6 +6-6+6+6metwith,6 &F#- ,6-6 &F#- -6representativesofthewesternindustrytoreceiveadvice onpotentialstatecommentstoFERCat t',$. МitsFebruary12consultation ontheimplementationofSection202(a)*6*6*6and*6(6developedanissuepaperonRTOs(6 .OnFebruary12,allPUCs Z(%/ intheWesternInterconnectionparticipatedinFERCsconsultationinLasVegas. CommitteeChairmanRogerHamilton(OR)has appointed JudySheldrew(NVPUC),Marsha  +'2 Smith(IDPUC)andArnieOlson(WACTED)tofillvacanciesontheBoardofDirectorsoftheWesternRegionalTransmissionAssociation,GregCook(NVPUC)tofillavacancyontheSouthwestRegionalTransmissionAssociation,andAlanBuckley(WAUTC)andPhilCarver(OROE)tofillvacanciesontheNorthwestRegionalTransmissionAssociation.Additionally,Henry .\+6 Duque(CAPUC)wasappointedtofillavacancyontheWesternSystemsCoordinatingCouncilBoardofTrustees. OverthepastsixmonthsCREPCrepresentativeshavebeenengagedinintensiveeffortswiththe  WesternInterconnectionCoordinationForum(whichiscomprisedofthewesternregionaltransmissionassociationsandtheWesternSystemsCoordinatingCouncil)to(1)advocateamendmentsto5 5federalreliabilitylegislation5 5toprovidedeferencetodecisionsbeingmadeatan d interconnectionlevelandtosecurearoleforstatesinreliabilitylegislation;and(2)developproposalsto5 5improvetheorganizationofwesterngridmanagementfunctions.5 5 x 0  TheCommitteewillbe5 5meetinginSantaFeonApril2122.5 5Amongtheactionsitisexpectedto D   takeistorecommendanewchairoftheCommitteetoreplaceRogerHamilton(OR)whoissteppingdown.̜#&&XXr#55556.('COMMITTE.WPD(COMMITTE.WPD/  6