1. TAPS Washington Update
TALLEY & ASSOCIATES
POLITICAL & STRATEGIC
PLANNING CONSULTING

2. 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?

3. 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

4. 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?

5. 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

6. 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

7. 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

8. 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
House Homeland Security Committee: Examining DHS's Cybersecurity Mission
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
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
Senate Homeland Security and Government Affairs Committee: Cyber Threats Facing America: An Overview of the Cybersecurity Threat Landscape
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

9. 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

10. 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

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

12. Questions?