TAPS Washington Update

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TAPS Washington Update
Presentation transcript:

TAPS Washington Update TALLEY & ASSOCIATES POLITICAL & STRATEGIC PLANNING CONSULTING

Macro Political Assessment A look back at my March/April Assessment: A President without a governor No evidence of “leadership” Limited Administration functionality No evidence of any plan A House Majority Fractured Paul Ryan weakened Conservatives empowered The Slimmest Senate Majority Limited options for 60 votes Democrats Rule? Where are we now?

Administration Nominees FERC Nominees? Kevin McIntyre-Jones Day Rich Glick-Senate Energy Committee Staffer Subcabinet Appointments 142 Confirmed of ~600 key positions and 1200 total 165 Nominated but awaiting action 22 EOP Nominees Needed (4+7) 22 DOE Nominees Needed (3+3) 13 EPA Nominees Needed (1+6) Federal Courts 150 Vacancies over 890 Positions 7 Confirmed 50 Pending Blue Slip Process SCOTUS Watch President: Doesn’t intend to fill all Administration positions

Administrative Actions Implementing Executive Orders DOE Study on Grid Resilience Conclusion not expected Recommendations DOE Resiliency NOPR Surfaced unexpectedly Political support uncertain/limited Fallout at FERC?

Federal Power Act Hearings Continues to be a House E&C priority Republicans focused on specific resources (coal & nuclear) and concerns about the role of energy markets in providing the right signals to support baseload power Democrats tying questions to Climate Change Powering America: Consumer-Oriented Perspectives on Improving the Nation’s Electricity Markets (October 5, 2017) Part II: Powering America: Defining Reliability in a Transforming Electricity Industry (October 3, 2017) Powering America: Technology’s Role in Empowering Consumers (September 26, 2017) Part I: Powering America: Defining Reliability in a Transforming Electricity Sector (September 14, 2017) Powering America: Reevaluating PURPA’s Objectives and its Effects on Today’s Consumers (September 6, 2017) Powering America: A Review of the Operation and Effectiveness of the Nation’s Wholesale Electricity Markets (July 26, 2017) Powering America: Examining the State of the Electric Industry through Market Participant Perspectives (July 18, 2017) Senate seemingly NOT interested in similar course

FPA Reform TAPS Priorities in Federal Power Act Reform Opportunities Joint Ownership RTO Accountability RTO TDU Protections Self Supply Protections Preserving state/local jurisdiction over DER Transmission siting authorities Threats Federal/State Jurisdictional Creep Capacity Market Incentives Cost Allocation Transmission Incentives EMP/GMD/Cyber Erosion of FERC enforcement authority

Energy Policy Senate Energy Bill Outlook DOE Reorganization Murkowski continues to press House still not receptive DOE Reorganization Barton (R-TX) given instructions Sees mandate to overhaul DOE mission Scaling back to basics

Cybersecurity Continues to be an area of intense scrutiny White House Meeting & Executive Order Key policymakers support FERC/NERC process and maintaining current regulatory construct EMP/GMD remains an area of legislative concern Event Driven Response: Ukraine, Stuxnet, Industroyer? Since our last meeting: Senate Energy and Natural Resources Committee: Full Committee Hearing to Examine Cyber Technology and Energy Infrastructure. 10-26-2017 House Homeland Security Committee: Examining DHS's Cybersecurity Mission 10-03-2017 House Science Committee: Bolstering the Government’s Cybersecurity: Lessons Learned from WannaCry 6/15/2017 Senate Homeland Security and Government Affairs Committee: Cybersecurity Regulation Harmonization 5-21-2017 Senate Energy and Natural Resources Committee: Hearing to examine the threat posed by electromagnetic pulse and policy options to protect energy infrastructure and to improve capabilities for adequate system restoration. 5-10-2017 Senate Homeland Security and Government Affairs Committee: Cyber Threats Facing America: An Overview of the Cybersecurity Threat Landscape. 4-10-2017 Senate Energy and Natural Resources Committee: The purpose of the hearing is to examine efforts to protect U.S. energy delivery systems from cybersecurity threats. 4-4-2017

Tax Reform Republican View as Must-pass Big Six Framework Fewer Tax Brackets (12% 25% 35%) Increases the Child Tax Credit Eliminates most deductions & AMT Home mortgage, charitables, death & retirement Business Tax Reforms FY19 Budget Process Timing and Outlook

FY18 Budget Process Continues FY18 Funding Expires on December 8th President settled with Schumer & Pelosi 17 legislative days remaining Debt ceiling not an issue Secretary Perry Testimony DOE Budget as guideline Knows they won’t get the President’s budget FY19 Budget Outlook

For Those Keeping Score Repeal ACA Tax Reform Immigration Reform - Build the Wall Infrastructure Investment Regulatory Reform

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