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104th CONGRESS
2d Session
H. J. RES. 178
Disapproving Orders Nos. 888 and 889 of the Federal Energy Regulatory
Commission.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 1, 1996
Mr. Franks of New Jersey introduced the following joint resolution;
which was referred to the Committee on Commerce
_______________________________________________________________________
JOINT RESOLUTION
Disapproving Orders Nos. 888 and 889 of the Federal Energy Regulatory
Commission.
Whereas the Federal Energy Regulatory Commission issued Orders Nos. 888 and 889
adopting new rules to promote wholesale competition through open access
nondiscriminatory transmission services by public utilities and to
enable the recovery of stranded costs by public utilities and
transmitting utilities (RM95-8-000 and RM94-7-001);
Whereas these rules will open wholesale electric power markets to increased
competition, thereby lowering energy prices for millions of Americans;
Whereas Congress supports the intent of these rules to reduce electric costs
through increased wholesale competition;
Whereas Congress is concerned about the adverse environmental effects that the
resulting change in generation dispatch will have on certain regions of
the country;
Whereas open access to transmission will enable low-cost electric generators,
many of which are older, coal-fired plants subject to minimal pollution
control requirements, to increase power production and sell electricity
to customers throughout the United States;
Whereas the environmental analysis by the Federal Energy Regulatory Commission
found that open access, without mitigation, will result in increases in
emissions of nitrogen oxides (NO<INF>X), carbon dioxide, particulates,
and other pollutants;
Whereas the benefits of interregional competition among electric utilities
promise to be shared nationally, but the NO<INF>X emissions and ozone
transported from the upwind regions will disproportionately impact the
Ozone Transport Region in the Northeastern United States;
Whereas additional emissions resulting from these rules will exacerbate the
already existing ozone nonattainment problem in the Ozone Transport
Region;
Whereas States in the Ozone Transport Region are already implementing stringent
and costly measures to reduce their own emissions, including cleaner
fuels, tough automobile inspection programs, and stringent stationery
source emissions reductions, at a great expense to the economy in the
Northeast;
Whereas continuing ozone noncompliance through additional NO<INF>X emissions and
ozone as a result of these rules raises the possibility of additional
pollution-control costs and economic sanctions that will stifle
development and threaten the economic well-being of residents and
businesses in the Ozone Transport Region;
Whereas measures to mitigate the increased release of NO<INF>X and ozone should
be promulgated in conjunction with the deregulation of the electric
utility industry;
Whereas it is less costly to the economy as a whole to address NO<INF>X and
ozone mitigation at the source of the emissions rather than impose
additional regulation on people of the Northeast;
Whereas even with environmental mitigation at the source, there remains the
potential for an enormous economic benefit through increased electric
competition because of these rules;
Whereas on February 8, 1996, 20 Members of Congress wrote to the Chairman of the
Federal Energy Regulatory Commission, urging the Commission to support
mitigation strategies that address the potential environmental impacts
of energy deregulation;
Whereas on February 13, 1996, the Ozone Transport Commission called on the
Federal Energy Regulatory Commission to work with the Environmental
Protection Agency and the States to ensure equitable environmental
requirements and to mitigate comprehensively and concurrently any
adverse impacts on ground level ozone associated with the implementation
of the open access rule and related actions;
Whereas on February 20, 1996, the Environmental Protection Agency formally
stated that this rule should be adopted only if the Federal Energy
Regulatory Commission makes an appropriate commitment to mitigation of
potential environmental harm as part of the final rules; and
Whereas the Federal Energy Regulatory Commission's Orders Nos. 888 and 889, as
issued, do not include appropriate mitigation measures as requested by
Members of Congress, and the Environmental Protection Agency, and the
Ozone Transport Commission: Now, therefore, be it
Resolved by the Senate and House of Representatives of the United
States of America in Congress assembled, That Congress disapproves the
rules submitted by the Federal Energy Regulatory Commission relating to
the promotion of wholesale competition through open access
nondiscriminatory transmission services by public utilities, and
recovery of stranded costs by public utilities and transmitting
utilities, and such rule shall have no force or effect.
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