1. Legislation Issues and Public Policy Committee Update
David K. Owens
Chair of Legislation Issues and Public Policy Committee
America Association of Blacks in Energy
June 13, 2009

2. Agenda Status of Stimulus Funding
Legislative and Public Policy Development
Near-Term Challenges
Action Items for Legislation Issues and Public Policy Committee

3. ARRA Energy Stimulus Funding
Total: $78 Billion

4. Energy Efficiency

5. State of Funding
Federal agencies submit weekly reports showing American Recovery and Reinvestment Act funds made available and paid out.
(Amounts shown $B)
Source: Federal Agency Financial Activity Reports

6. How Will The Money Flow? DOE Direct Expenditures
Clean coal, carbon capture and storage demo, etc.
DOE Indirect Expenditures
State block grants, appliance matching grants, etc.
DOE Loan Guarantee
Directly To Federal Agencies Other Than DOE
NIST - Smart Grid Interoperability Standards
Federal Bonding Authority
Western Area Power Marketing Administration
Tax Breaks

7. Pending Legislation

8. Climate Policy in the 111th Congress
H.R The American Clean Energy and Security Act of 2009
Passed by House Energy & Commerce Committee
Additional hearings contemplated
Up to 8 committees may take it up
Waxman wants committee process done by July 4
Full House consideration pending
Senate: Ultimate process unclear
Energy Committee addressed transmission and other energy issues
Climate handled by Environment Committee; schedule unknown
Start with HR 2454 or own bill?
Sen. Boxer formed working groups to address key issues
Current focus on RES and energy, then on transmission and climate?

9. Key Elements of H.R. 2454 Economy-wide
Targets and timetables – below 2005
3% by 2012, 17% by 2020, 42% by 2030, 83% by 2050
Combined Renewable Energy Standard and Energy Efficiency Resource Standard
20% renewables by 2020 with 2.5¢ / kWh alternative compliance payment
75% must be met with renewables
Governor can petition to meet 40% with energy efficiency
Effectively allows RES at 12-18% and EERS of 2-8%
Alternative compliance payments stay within state

10. Key Elements of H.R. 2454 Cap and Trade - Auctions and Allowances
Exclusively for the “benefit of customers”
35% of allowances to electric sector until 2025 with 5 yr phase-out
30% to local distribution companies (LDCs)
50% based on emissions, including purchased power
50% based on retail sales
5% to merchant coal generators and generators with long-term contracts (PPAs)
Up to 3.5% for merchant coal
PPAs get allowances equal to carbon costs

11. Key Elements of H.R. 2454
Cap and Trade - Auctions and Allowances (Continued)
Natural gas – 9% for , 7.2% for 2026, 5.4% for 2027, 3.6% for 2028, and 1.8% for 2029
Home heating oil and propane – 1.875% for ; 1.67% for and 2015, 1.5% for , 1.2% for 2026, 0.9% for 2027, 0.6% for 2028, and 0.3% for 2029
Low-income consumers – 15% auctioned annually by the Administrator, with the proceed to fund the Consumer Assistance Program established in the legislation.

12. Key Elements of H.R. 2454
Commercial / residential building code targets
30% improvement w/in 3 years, 50% improvement after 2016
New energy efficiency standard for outdoor lighting fixtures

13. Financial Impacts of Climate Change
EPA
Household spending would drop by about $140 / year by 2020; gas prices would increase 33 cents / gallon by 2030
CRAI (for National Black Chamber of Commerce)
By 2015; $730 / year less in household purchasing power, electric rates would increase 7.3% by 2015; gas prices by 12 cents / gallon
Heritage Foundation
By 2035 electricity rates would increase by 90%, gas prices by 74%, household energy bills by $1500
It’s ALL About the Assumptions!

14. Transmission Siting
Many perceive EPACT 2005 FERC backstop authority as ineffective—limited by Piedmont Environmental Council v. FERC (4th Circuit)
Several Senate bills would give FERC more transmission siting authority for facilities above 345 KV. Will they:
Require interconnection-wide planning?
Apply to facilities that primarily serve only renewables?
Address cost allocation issues?
Expand PMAs?
Waxman-Markey avoids transmission, other than to encourage planning

15. What Are AABE’s Concerns?
Climate Change
Potential impacts of climate change legislation on African-Americans and other minorities?
How do you minimize compliance costs on low-income consumers?
What must U.S. climate change legislation and carbon management strategy include to ensure economic growth and energy security and avoid unfairness?
Energy Efficiency
How significant of a role can energy efficiency play in the future?
How can African-Americans benefit and actively participate in energy efficiency programs from the residential and commercial perspectives?
Renewable Technology
How much can increased renewable capacity contribute going forward? How can renewables be utilized without substantially raising energy bills for low- and fixed-income households? 15

16. Key Elements of AABE Climate Change Principles
AABE supports
Cost effective GHG reductions
Inclusion of all sectors of the economy and all sources of GHG
Consistency of compliance timetables w/ technology development
Balancing economic improvements with economic development
Ensuring low / fixed income consumers are not disproportionately impacted
Cost containment measures
Green jobs, economic development, maintain trade balances
Preserving all energy options – energy efficiency, renewables, advanced nuclear, carbon capture and storage
Public / private partnerships – research, development & deployment
Use of alternative fuels and needed infrastructure

17. Key Elements of AABE Energy Efficiency Principles
ABBE supports
Enhancements to US energy infrastructure for the development and implementation of energy efficient technologies
Focused national, regional and local effort to educate and make available to all consumers a broad range of options to encourage energy efficiency
Aggressive campaign for the promotion of energy efficiency technologies including “smart” buildings, appliances, grid and electric meters
Optimizing domestic and foreign energy resources while promoting energy security, economic prosperity and environmental solutions
Government and commercial suppliers making necessary energy efficiency upgrades to residential and commercial customers

18. Key Elements of AABE Renewables Principles
AABE supports
Renewables as part of an overall strategy for meeting energy and climate change challenges
Renewable programs that carefully balance the availability of renewable technologies, their cost effectiveness and environmental benefits
Recognition of renewable energy standards being developed at the state level
Research, education and training for African-Americans to expedite the development of renewable energy solutions
Renewable and alternative fuels and needed infrastructure
Working with regional and local communities on renewable programs

19. Some Near-Term Challenges
Full funding of Low Income Energy Assistance Program (LIHEAP)
Educate and inform consumers about stimulus package and access to funding for weatherization and related programs
Support Energy Efficiency Programs
Educate consumers on how to use energy more efficiently to lower bills
Ensure low- and fixed-income customers participation
Secure funding for programs to assist low- and fixed-income families
Promote understanding of implications of Climate Change laws
Recognize the potential impacts on economic growth and energy security
Minimize impact on low- and fixed-income consumers (cost containment)
Ensure fairness and equity (environmental justice)
Support national commitment / action to accelerate needed technologies

20. Some Near-Term Challenges
Promote understanding of implications of Renewable Energy Standards
Impact on energy bills
Enhancing economic development
Expediting development of renewable technologies
Encourage Green Jobs
Support minority- and women-owned businesses (supplier diversity)
Mobilize economic development in communities
Support cooperative effort with government, business and industry
Create excitement around Engineering, Mathematics and Science
Support programs to replace the aging workforce and to develop technical and strategic leaders
Support scholarships, internships and mentorships

21. New-Term Action Items Congressional Outreach (July – December 2009)
Congressman Charles B. Rangel (D-NY)
Chairman, Ways and Mean Committee
Vice Chair, Joint Taxation Committee
Congressman Henry A. Waxman (D-CA)
Chair, Energy and Commerce Committee
Congressman Edward J. Markey (D-MA)
Energy and Commerce Committee
Chair, Select Energy Independence and Global Warming
Others

22. New-Term Action Items Webinar on H.R. 2454 (July 2009)
Overview of key provisions relating to climate change, energy efficiency, and renewables.
Energy Summit (September 2009)
Dialogue with key public policy leaders and coalition building. Could include, EPA Administrator Lisa Jackson, Majority Whip James Clyburn and such groups as the Joint Center for Political and Economic Studies and the National Black Chamber of Commerce.
Participate in Congressional Black Caucus Foundation Dialogue in Tunica, MS
Develop and Implement Community Outreach Program