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EPAct05 also instituted new federal backstop siting author- and resource plans of load-serving entities with service obliga- ity that would have allowed FERC to step in under certain tions to retail customers to be considered in regional planning circumstances to site transmission lines if states did not act. processes,as Section 217(b)(4) of the FPA requires. FERC can use this authority only in corridors established by the Department of Energy based on areas of congestion in the bulk Transmission for Renewables transmission grid.Attempts in Congress have been made to As mentioned previously,renewable generation sites are often repeal this provision since 2005,but they have failed. However, located remotely from population centers,making new and legal decisions from the Fourth and Ninth Circuit courts have longer transmission lines necessary to access that generation. rendered this authority of little practical use. However,because the wind does not always blow and the sun The main policy areas involving transmission are: does not always shine,other types of generation or demand side resources must be available to balance out those intermittent Siting resources—or else the lights could go out.This makes it all the more important to plan regional transmission facilities based on Because court decisions have undercut the federal government's limited backstop authority to site transmission,states have the the actual resource plans and needs of the load serving entities major role in siting new transmission. Public opposition to in the region. the siting of new lines is the most significant hurdle to getting transmission built.On federal lands,the many approvals needed from different federal entities can also create very substantial American Public Power Association Position delays. One of the most significant impediments to getting new transmission built continues to be the siting of the lines.The Cost Allocation EPAct05 siting authorities were a major step forward(until they Who pays for a new transmission line also is a very difficult were undercut by subsequent court decisions),and should be issue,as there are often benefits to bringing transmission lines supported,clarified,and protected from repeal.The Association, therefore,would support legislation to do so in any future de onto the grid that extend beyond the immediate beneficiaries. This is because the grid is like a large machine,which in some bate on transmission polity.If new electric generation resources cases can often be improved by making small additions and are going to be brought to market to meet increasing demand improvements to one part.APPA believes that a plausible reason and address environmental concerns,new transmission facilities should exist to believe that the benefits received from a regional- are necessary. ly allocated transmission project will be roughly commensurate Because of local and state opposition to siting transmission lines,as many regional electricity stakeholders as possible should with the costs to be assigned.Moreover,in allocating regional transmission costs, FERC should be sensitive to differences in be included in their planning and ownership.APPA would state policies. support new legislation that builds upon existing regional and interregional transmission planning processes.The Association Joint Ownership is concerned that FERC's Order No. 1000,however,does not Some of the problems involved in regional planning and cost focus regional transmission planning in the first instance on allocation could be resolved if new transmission lines were joint- the actual resource plans of load serving entities in the relevant ly owned,with some part ownership by public power utilities region,as FPA Section 217(b)(4) requires. where feasible.While there are parts of the country in which Congress should also encourage and support joint owner- joint ownership is common,it is the exception rather than the ship of transmission,and should eliminate financial barriers to such ownership like the private use restrictions for tax-exempt rule in others,generally because of resistance by incumbent financing. transmission owners. The Association also believes that regulation of the vast and Regional Planning enormously complex distribution systems owned and operated Transmission projects approved for regional cost allocation must by close to 3,000 utilities nationwide should continue to reside be the result of a coordinated,open,and transparent regional with state and local governments. planning process,as required by Order No. 1000.Such process- es shall identify: (a) the need for the proposed project; (b) the anticipated benefits of the proposed project; (c) the anticipated beneficiaries of the proposed project,and(d) the estimated cost of the project. FERC should also require the transmission needs PublicPower.org 9 191