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2010 APPA Legislative Rally Key Message I'oults <br />Address Climate Change in a <br />Workable Manner <br />APPA supports congressional action to address the issue <br />of climate change, but does not support the major leg- <br />islation that has been considered by Congress to date <br />(H. R. 2454 and S. 1733). Instead, APPA believes that, <br />among other things, federal legislation must: be-econ- <br />o:my wide and apply to all industry sectors: protect the <br />U.S. economy and consumers; recognize regional dif- <br />ferences; maintain electric reliability; protect national <br />security; and avoid anover-reliance on arty single fuel <br />for electricity production..~PPA also believes that any <br />cap-and-trade .regime should, among other thngs:.in- <br />clude adear preemption of the Clean Air.Act and <br />other applicable federal laws; include a hard collar on <br />the cost of allowances; provide a robust and workable <br />offset p:rogranu; provide emissions allocations commen- <br />surate with that sector's share of emissions (approxi- <br />mately 40 percent to the elech•ic utility sector); and <br />include achievable targets and timelines that allow for a <br />:more gradual transition to slow-carbon economy so <br />that the market produces the desired environmental <br />benefits in the most efficient and cost-effective manner. <br />Move Energy Policy Legislation Separately <br />From Comprehensive Climate Change <br />Legislation <br />While APPA supports workable federal climate change <br />legislation as described above as well as .new energy pol- <br />icy legislation that would include a reasonable renew- <br />able electricity standard (no more than 15 percent by <br />2020), we have long advocated that these major issues <br />be addressed in separate legislation. Tying them to- <br />getl~er; as was done in the House-passed energy and cli- <br />mate bill, H.R. 2454, significantly increases the <br />complexity and controversy of the legislation, as well as <br />the potential for duplicative mandates, as we have seen, <br />Moreover; due to the mare near-term economic and <br />jabs benefits of energy policy legislation, there is cur- <br />rently broader support in Congress for energy legisla- <br />tion than for a climate bill. While that could change, <br />given the :relatively limited time left in the 111th Con- <br />gress, it would be imprudent to miss the opportunity <br />for enactment of energy legislation that would itself re- <br />sult in sigriificarlt reductions in greenhouse gas enris- <br />sions among other benefits, simply because agreement <br />cannot be reached on climate change legislation . . <br />Ensure that any Legislation Addressing <br />Cyber-Security Recognizes What the <br />Electricity Sector Is Already Doing <br />The stakeholders of the electric power industry, includ- <br />ing public power systems, continue to wrnk closely and <br />in partnership with governmental authorities at the <br />federal, state/,provincial and local levels in both the <br />United States and Canada in order to maintain and im- <br />prove upon fhe high level of reliability consumers ex- <br />pect. Cyber secw•ity is an important element of bulk <br />power system reliability that the electric power industry <br />takes very seriously. Every day, the electric power indus- <br />try continuously monitors the bulk power system and <br />mitigates the effects of transmission grid incidents - <br />large and small. Consumers and gover~rment are rarely <br />aware of these incidents because of the sector's advance <br />planning and coordination activities which reflect the <br />quick and often seamless response the sector takes to <br />address reliability and security events. This response in- <br />cludes prevention and response/recovery strategies- <br />both are equally important. The industry's strong track <br />record on reliability and security continues as we work <br />diligently to adhere to mandatory reliability standards, <br />which are approved by Federal Energy Regulatory <br />Commission (FERC), including standards that address <br />Cyber security. Any additional federal legislation should <br />build on this framework, not undermine or duplicate it. <br />.APPA, therefore, supports legislation in the :House, <br />H.R. 2165, that provides additional, targeted authority <br />for FERC in the event of a Cyber emergency. APPA has <br />strong concerns about the Cyber security title in the <br />pending Senate energy bill, S. 1462. <br />Ensure Reliable, Low-Cost Delivery of Coal <br />By Creating a Competitive Railroad Industry <br />Many coal-burning electric utilities receive coal ship- <br />meats from only one rail carrier, and are thus consid- <br />eyed captive to a railroad with monopoly power. <br />Legislative remedies are necessary to enhance competi- <br />tive rail transportation for these captive rail shippers. <br />APPA supports legislation that encotu-ages structural <br />www.APPMetorg <br />