Minutes of the October 29-30 Western
Interstate Energy Board Meeting
(Approved by the Board on May 1, 2002)
Board Chairman John Savage (OR) called the meeting to order. After outlining the meeting, Doug Larson (WIEB) called the roll:
Alberta: Larry Charach
Arizona: Craig Marks
British Columbia: Not present
California: Bill Keese
Colorado: Not present
Idaho: Bill Eastlake
Montana: Larry Nordell
Nebraska: Not present
Nevada: Richard McIntire
New Mexico: Jennifer Salisbury
Oregon: John Savage
Saskatchewan: Mike Balfour
Utah: Jeff Burks
Washington: Tony Usibelli
Wyoming: John Nunley
Jennifer Salisbury (NM) moved and Tony Usibelli (WA) seconded a motion to approve the minutes of the April 16-17 Board meeting in Scottsdale. Motion was approved.
Doug Larson, Executive Director,
reported on the Board’s finances and the activities of the Board and its
committees since April. (See information linked to meeting agenda.) The Board agreed to continue its focus on
electricity issues and discussed the following future priorities: assessment of
natural gas demand, supply and deliverability; petroleum dependence; climate change;
and increased interaction with Mexican states.
The Board agreed to a proposal by Craig Marks (AZ) to renew efforts to
involve the northern Mexican states in the Board’s work, including an
invitation to the next meeting of the Board.
Regarding areas where outside funds for future projects may be sought,
the Board identified the following topics:
·
Coordinated
natural gas assessment – western demand, deliverability and supply;
·
Energy
infrastructure (electric and gas), including better ways to define what is needed (mitigate market power, fuel
diversity) and resistance to terrorism (including distributed generation);
·
Coordination on
facility siting;
·
Green tags; Energy
information systems, including
link to market monitoring needs;
·
Western
Electricity Coordinating Council and RTO policies that affect renewables; and
Support to a Regional Advisory Body on reliability if appropriate federal
legislation is enacted.
Jennifer Salisbury (NM) reported on New Mexico’s Sustainable Energy Collaborative. (See information linked to the Seattle meeting agenda.)
Jeff Burks (UT) reported on Utah’s PowerForward initiative. (See information linked to Seattle meeting agenda.)
Bill Eastlake (ID) reported on the fallout from the state’s irrigation buyback program.
John Savage (OR) reported on the state’s windy landowners’ guide.
Bill Keese (CA) reported on the California Energy Commission’s natural gas assessment and Arne Olson (WA) reported on Washington’s natural gas assessment. (See information linked to Seattle meeting agenda.)
Jim Souby, WGA Executive Director, reported on the extensive energy priorities of the governors and the Board’s contribution to those activities, including the energy policy roadmap resolution adopted in August, the WGA Conceptual Transmission Plans report, the MOU signed by WGA and five federal agencies for cooperation on energy issues, the WGA Transmission Financing Committee, the post 9/11 focus on terrorism, development of a multi-state protocol on the review of proposed interstate transmission projects, interest in improving energy information; and interactions with FERC commissioners, Congress, and the Administration on the governors’ energy priorities.
Cathy Ghandehari (DOE Denver) reported on the status of the review of the Department’s efficiency and renewable energy programs, new interest at DOE in distributed generation, transmission, and electric reliability, the FY 2002 energy efficiency budget, and a proposed December 17-18 meeting in Denver on state emergency energy plans. DOE has completed review of the agency’s energy efficiency and renewable energy programs as called for in the National Energy Plan. Two documents that have been prepared – a summary of comments on existing programs and a strategic plan – that should be released by December.
The Board held a roundtable among the states and provinces on energy security and the impact of the economic slowdown on state/provincial energy budgets.
· Jeff Burks (UT) reported that the governor has adopted a homeland security plan. State efforts are shifting from energy emergency response to energy security. The Department of Natural Resources (DNR) is primarily responsible for petroleum emergencies; the Public Service Commission is responsible for electricity and gas emergencies. DNR is responsible for linking energy companies with the state emergency agency. Regarding budget issues, the state is expecting a $250 million shortfall although reliance on oil overcharge funds and federal funds may shield energy programs from the cuts.
· Bill Keese (CA) reported that the California Energy Commission (CEC) is involved in reviewing potential energy emergencies, but the Office of Emergency Services is the implementing agency. The CEC web site has been stripped of sensitive information. Open meeting requirements limit the Commission’s ability to meet on security issues. Regarding budgets, decreasing electricity demand is reducing funding to the CEC, but the state’s system benefit charge has been renewed for ten years.
· Craig Marks (AZ) reported that utility preparation for Y2K has been useful in addressing security issues, however, utilities have become reluctant to provide information. The existing floodwarning system that links emergency agencies with police vehicles is useful in addressing energy security issues. The governor has appointed a security person. There is increased security at the Palo Verde nuclear station. Regarding budgets, of the $14 million remaining in oil overcharge funds, $8-10 million will be used for efficiency improvements in schools, a priority of the governor. Overall the state is expecting a $1.6 billion shortfall in the next biennium.
· Bill Eastlake (ID) said that the state is dusting off emergency plans. Emergency planning is a carryover from Y2K preparations. The governor has issued an executive order shifting the state’s focus from emergency planning to security planning. Regarding budget issues, a two percent cut in the state budget is anticipated, but this cut will probably not affect energy programs.
· Tony Usibelli (WA) reported that the Military Department operates all emergency planning activities with the exception of energy, which is handled by the Office of Trade and Economic Development (OTED). Coordination between OTED and the Military Department is underway. Rulemaking on electricity and petroleum emergency plans will be undertaken. The state’s open records law limits ability to keep information confidential and a legislative fix may be needed. He noted that DOE is reluctant to share data with the states, because of the lack of confidentiality protections. The state now has 15 pipeline inspectors as a result of a major pipeline disaster. Regarding budgets, the state is expecting a $1 billion shortfall, however, most energy activities are self-funded and will take a small hit. In response to Craig Marks’ (AZ) report on improving energy efficiency in schools, Usibelli said that Washington’s schools must meet energy efficiency design standards to receive a state match of construction funds.
· Richard McIntire (NV) reported that tourism, the state’s largest industry, has taken a major hit since 9/11. Surplus funds at the Public Utilities Commission may be used for security purposes. The aftermath of 9/11 has also increased the difficulty in acquiring information as part of the state’s 18-month old docket on electric reliability.
· Jennifer Salisbury (NM) said that the Public Safety Department coordinates the state’s security issues, while the Energy, Minerals and Natural Resources Department focuses on energy emergency response. Regarding budget issues, the state is currently forecasting a slight increase in General Fund revenues, but the governor is asking for a flat budget in anticipation of future revenue forecasts that will show falling revenues.
· Larry Charach (AB) reported that falling revenues have resulted in a $1 billion cutback in construction projects in the province.
· Larry Nordell (MT) said that the state’s energy emergency response plan has been updated, but it does not address terrorism.
· John Savage (OR) reported that the Governor has established a security office, but that open meeting requirements have limited meetings on security issues. Regarding the Oregon budget, cuts of up to 10 percent are being planned.
· Mike Balfour (SK) said that the province has a 1980s vintage energy emergency plan. There are no sunshine law issues in the province, but filings by oil companies have been general without many specifics. There has been little impact of budget cuts thus far, but a new initiative on energy efficiency may be hurt by declining revenues.
Finally, the Board empowered the Executive Committee to set the time and place of the next Board meeting.