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<title>August 2001: National Governors' Association Votes On Energy Policy Plan</title>
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<p align="left"><strong><small><font face="Arial">About The Author:</font></small></strong></p>
<p align="left"><font face="Arial" style="font-size: 9pt">Robert A. Olson is a partner in the law firm of
Brown, Olson & Gould, P.C. which maintains a nationwide practice in energy law,
public utility law and related commercial transactions.</font></p>
<p><small><font face="Arial"><font style="font-size: 9pt">He can be reached at:</font><br>
<br>
<b><font color="#0000FF">Brown, Olson & Gould, PC</font></b><br>
2 Delta Drive<br>
Suite 301<br>
Concord, NH 03301<br>
<a href="mailto:[email protected]">[email protected]</a><br>
(603) 225-9716<br>
<a href="mailto:[email protected]"></a></font></small></p>
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<img src="../images/statelin.gif" alt="STATELINE by Robert Olson" border="0" width="375" height="75">
</center><p align="left"><b><u><br>
August 2001</u>
<br>
<font size="6">National Governor's Association
Votes on Energy Policy Plan<br>
</font>
</b><strong>by Robert Olson -- Brown, Olson and Wilson, P.C.<br>
</strong><font face="Arial" size="2">(<em>originally published by PMA OnLine Magazine:
200</em>1/10/06)</font></p>
<center>
</p>
<p ALIGN="JUSTIFY">On Monday, August 6, 2001 a National Governors’
Association ("NGA") Committee on Natural Resources voted to recommend an
energy policy plan, including transmission issues, for adoption by the
governors. The governors will vote whether or not to adopt the plan on
August 7, 2001, during their annual meeting. </p>
<font FACE="Palatino" SIZE="2">
<p ALIGN="JUSTIFY"></p>
</font>
<p ALIGN="JUSTIFY">The Comprehensive National Energy Policy ("CNEP")
recommended by the NGA Committee on Natural Resources states that energy
issues should be addressed nationally, but still recognizes the need for
state and local authority over environmental and energy matters. The CNEP
declares that the governors support a national energy policy based on ten
principles, including: promotion of "conditions in the federal and state
regulatory context that recognize the unique and complementary roles of
federal, state and local governments"; recognition of "the authority of
states, tribes, and local communities in decisionmaking"; "support the
production and use of domestic renewable energy sources"; and recognition
"that states are part of an integrated energy system and partners with
nearby states in developing regional solutions." </p>
<font FACE="Palatino" SIZE="2">
<p ALIGN="JUSTIFY"></p>
</font>
<p ALIGN="JUSTIFY">In particular, the CNEP addresses the issue of energy
transmission. The CNEP opposes preemption of "state and local authority over
siting of electricity transmission networks." While the governors concede
that cooperation between federal and state governments could improve
competition and reliability, the CNEP seeks to maintain state and local
authority over transmission. The CNEP concedes only that the governors will
"engage in a dialogue with the federal government and industry" over
transmission issues, but only to the extent that the federal government does
not intrude on state and local authority over transmission siting. </p>
<font FACE="Palatino" SIZE="2">
<p ALIGN="JUSTIFY"></p>
</font>
<p ALIGN="JUSTIFY">Further, the CNEP declares that the transmission system
in the United States must be upgraded and expanded in order for the
transmission and distribution networks to be adequate "to move energy from
the source to the consumer." In that regard, the governors support
recognizing that the states are responsible for timely permitting, siting
and licensing decisions and to encourage states to work together towards
identifying needed energy transmission and generation projects. The
governors further encourage market-based infrastructure investment in
transmission capacity and distribution generation, and a requirement that
the federal government cooperate with states in licensing, permitting and
constructing of natural gas pipelines. The CNEP also states that the
governors support complete utilization of existing rights of way for energy
transmission. </p>
<font FACE="Palatino" SIZE="2">
<p ALIGN="JUSTIFY"></p>
</font>
<p ALIGN="JUSTIFY">The CNEP also addresses regulatory and environmental
issues. The CNEP states that a partnership should be formed between the
federal government and the states to effectuate the participation of state
and local governments in the development of national policies. The CNEP also
states that there should be no preemption of state regulatory authority over
the regulation of utilities or the exploration and development of energy.
The CNEP goes on to note that state utility commissions should continue to
have authority over utility mergers, retail energy rates and ratemaking. The
CNEP also urges Congress to pass legislation, in the form of a market-based
program, to reduce and cap sulfur dioxide, nitrogen oxides, and mercury
emissions and provide for voluntary reductions of carbon dioxide from
electric power producers. </p>
<font FACE="Palatino" SIZE="2">
<p ALIGN="JUSTIFY"></p>
</font>
<p ALIGN="JUSTIFY">Under the heading of energy conservation, the CNEP urges
the federal government to create incentives for energy providers to furnish
methods by which consumers can mitigate their energy requirements in
response to price fluctuations. The CNEP also states that the governors
support federal policies and incentives that encourage reliable, affordable,
and clean energy supplies. The governors also support federal policies that
encourage capital investment, protect current production and promote
marginal production as well removing barriers that discourage efficient
technologies, the development of renewable energy resource and fuel
diversity. </p>
<font FACE="Palatino" SIZE="2">
<p ALIGN="JUSTIFY"></p>
</font>
<p align="left">The NGA was formed to create a mechanism through which the
governors of the 50 states, 3 territories and 2 commonwealths collectively
influence national policy. On Tuesday, August 7, the NGA announced that it
is forming a task force with the Department of Energy to examine how energy
markets are regulated and determine which most efficiently deals with
increasing regional competition.</p>
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<p align="left"><font face="Arial">
<small>Robert A. Olson is a partner in the law firm of Brown, Olson &
Gould P.C.
which maintains a nationwide practice in energy law, public utility law and related
commercial transactions. He can be reached at:</small></font><p align="center">
<font face="Arial"><small><font color="#0000FF"><b>Brown, Olson & Gould, PC</b></font><br>
2 Delta Drive, Suite 301<br>
Concord, NH 03301 <br>
<br>
<a href="mailto:[email protected]">[email protected]</a> | (603) 225-9716<a href="mailto:[email protected]"></a></small></font>
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