2013 PROPOSED RESOLUTIONS AND PROPOSED AMENDMENTS TO NRECA BYLAWS. 71st NRECA Annual Meeting February 19, 2013 New Orleans, Louisiana

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1 2013 PROPOSED RESOLUTIONS AND PROPOSED AMENDMENTS TO NRECA BYLAWS 71st NRECA Annual Meeting February 19, 2013 New Orleans, Louisiana

2 Table of Contents Business Meeting Agenda 2013 Standing Rules Minutes of NRECA 2012 Annual Meeting of Members National Resolutions Committee Members Quick Reference Guide to Proposed Resolutions 2013 Proposed Resolutions Consent Agenda Proposed Resolution 1 (Recommendations for Adoption) Consent Agenda Proposed Resolution 2 (Recommendations Against Adoption) Individual Proposed Resolutions Proposed Amendments to NRECA Bylaws * In previous years, a spreadsheet with costing information would appear at the end of the booklet. The new NRECA Resolutions Process has involved significant changes, including the proposed consolidation of more than 60 existing resolutions. As a result, this year NRECA has produced a total cost estimate for the 2012 Resolutions in the amount of $22,366,000 in dues supported funding. NRECA will resume costing individual resolutions following the membership s approval of the 2013 Resolutions.

3 National Rural Electric Cooperative Association 2013 Annual Meeting of Members Ernest N. Morial Convention Center, New Orleans, Louisiana February 19, 2013 AGENDA 8:15 A.M. Presentation of Credentials 8:45 A.M. Call to Order NRECA President Mike Guidry Report of the NRECA President Verification of Quorum Adoption of Agenda Introduction of Officials and Support Staff Adoption of Standing Rules Approval of Minutes of NRECA 2012 Annual Meeting of Members Report of the NRECA Secretary-Treasurer Consideration of Proposed Resolutions Consent Agenda Proposed Resolution 1 (Recommendations for Adoption) Consent Agenda Proposed Resolution 2 (Recommendations Against Adoption) Individual Proposed Resolutions Consideration of Proposed Amendments to the NRECA Bylaws Announcements Adjourn sine die

4 National Resolutions Committee The National Resolutions Committee term runs until the conclusion of the 2014 NRECA Annual Meeting. Dave Wheelihan, CEO Region IX Resolutions Chair Montana Electric Cooperatives Association and Legislative Chair Barry Hart, Exec. Vice President & CEO Region VIII Legislative Vice Chair Assoc. of Missouri Electric Cooperatives Jack Reasor, President & CEO Region I Regulatory Chair Old Dominion Electric Cooperative, Virginia Jim Compton, General Manager & CEO Region III Resolutions Vice Chair Southern Mississippi Electric Power and Regulatory Vice Chair Lars Nygren, General Manager Region VI CMEC Chair Capital Electric Cooperative, North Dakota Mark Stubbs, CEO Region X CMEC Vice Chair Farmers Electric Cooperative, Texas Mike Smith, General Manager & CEO Region II Regional Representative Georgia Transmission Corporation Regulatory Member Markus Bryant, General Manager Region IV Regional Representative Lorain-Medina REC, Ohio CMEC Member Marion Chesnut, President Region V Regional Representative Eastern Illini Electric Cooperative, Illinois CMEC Member Don Kaufman, Vice President Region VII Regional Representative Sangre De Cristo Electric Assn., Colorado Legislative Member

5 NRECA 2013 Annual Member Meeting Business Meeting Standing Rules 1. To participate, a voting delegate authorized by a National Rural Electric Cooperative Association ( NRECA ) voting member ( Voting Delegate ) must present his or her voting credentials and sit in the designated Voting Delegate area. 2. Only Voting Delegates may sit in the designated Voting Delegate area. 3. Voting Delegates vote through a method determined by the chair, which method may include voting by raising voting cards. 4. Unless the chair permits otherwise, only Voting Delegates may speak. 5. All speakers must identify themselves by name, NRECA voting member, and state, and must address all comments to the chair. 6. All motions must be stated clearly and the chair may require that a motion be presented in writing. 7. The individual making a motion may speak first and additional discussion must alternate between those for and against the motion. Unless extended by general consent or a two-thirds vote, debate is limited to two minutes per individual per debatable motion. Upon general consent or a two-thirds vote, an individual may speak a second time regarding a motion. Unless extended by general consent or a two-thirds vote, total time allowed for a debatable motion may not exceed 15 minutes. 8. Voting Delegates may only consider resolutions previously considered by the NRECA Resolutions Member Standing Committee ( National Resolutions Committee ). 9. If permitted by the chair, an NRECA voting member employee or director may suggest an amendment to a resolution from the floor, but only a Voting Delegate may move or second the amendment. 10. Voting Delegates may consider resolutions in gross, or without debate or amendment, as part of a consent agenda, consent calendar, or similar list ( Consent Agenda ), but only if prepared by the National Resolutions Committee. A Consent Agenda is considered before resolutions are considered individually. Any Voting Delegate may remove a resolution from the Consent Agenda and have it considered individually.

6 Minutes of National Rural Electric Cooperative Association 2012 Annual Meeting of Members Pursuant to the District of Columbia General Cooperative Association Act of 2010, the National Rural Electric Cooperative Association ( NRECA ) Bylaws, and Robert s Rules of Order Newly Revised (10 th ed. 2000), NRECA held its annual meeting of members ( Meeting ) from March 5-7, 2012, in San Diego, California. During the Meeting s Opening General Session on Monday morning, March 5, NRECA Chief Executive Officer Glenn English reported on NRECA s business during the previous fiscal year and NRECA s condition at the close of the previous fiscal year. At approximately 8:45 a.m. on Tuesday, March 6, NRECA President Michael J. Guidry called the Meeting s Business Meeting to order. Before the Business Meeting: President Guidry appointed: (1) NRECA Chief Member Counsel Tyrus H. Thompson as Recording Secretary; (2) Colette C. Trohan as Parliamentarian; (3) NRECA Director of Meeting and Event Planning Robin Slye as Head Teller; and (4) individuals designated by Ms. Slye as Tellers; Voting delegates selected by NRECA voting members presented their NRECA Voting Delegate Credential cards; A document entitled 2012 Proposed Resolutions and Proposed Amendments to NRECA Bylaws ( Document ) was distributed and made available to NRECA members at the Meeting; and A document entitled Report of the Secretary-Treasurer on NRECA s Financial Performance for the Year Ending December 31, 2011 ( Financial Report ) was made available to NRECA members on cooperative.com, and was distributed and made available to NRECA members at the Meeting. A copy of the Document and a copy of the Financial Report are attached to these Minutes. Voting delegates present voted during the Business Meeting. Unless otherwise indicated, voting during the Business Meeting was by voice vote. Report of the NRECA President. President Guidry reported on NRECA s business during the previous fiscal year and NRECA s condition at the close of the previous fiscal year. Verification of Quorum. President Guidry verified the presence of a quorum. Approximately 605 voting delegates were present. Adoption of Agenda. President Guidry asked for proposed amendments to the Agenda as printed and included in the Document. There were none. The Agenda as printed and included in the Document was adopted by general consent. Page 1 of 4

7 Introduction of Officers, Standing Committees, and Others. President Guidry introduced the following individuals seated on stage: Ms. Trohan; NRECA Vice President Curtis Nolan, who served as timekeeper during the Business Meeting; NRECA Member Counsel and Staff Liaison Jessica Tiahrt; NRECA Secretary-Treasurer Mel Coleman; Mr. Thompson; and Mr. Fred Guyer, Chair of the NRECA Resolutions Committee; President Guidry introduced the following individuals seated in the audience: The Chairs of the NRECA Standing Committees; and The members of the NRECA Resolutions Committee, as listed in the Document. Adoption of Standing Rules. Secretary-Treasurer Coleman read the Business Meeting Proposed Standing Rules as printed and included in the Document. President Guidry asked for proposed amendments. There were none. By a two-thirds vote, the Standing Rules as printed and included in the Document were adopted by voice vote. Approval of Minutes of NRECA 2011 Annual Meeting of Members. President Guidry asked for corrections to the Minutes of NRECA 2011 Annual Meeting of Members as printed and included in the Document. There were none. The Minutes as printed and included in the Document were approved by general consent. Report of the NRECA Secretary-Treasurer. Secretary-Treasurer Coleman summarized the Financial Report and generally reported on NRECA s financial business during the previous fiscal year and NRECA s financial condition at the close of the previous fiscal year. As Secretary-Treasurer Coleman noted, NRECA monthly financial performance reports are available on cooperative.com. Consideration of Proposed Resolutions. Mr. Guyer presented the Resolutions Committee recommendations for the adoption of proposed resolutions as printed and included in the Document. As Mr. Guyer noted, information regarding NRECA Resolutions Costed for the 2012 Annual Meeting was also included in the Document. Before Mr. Guyer individually moved for the adoption of Proposed Resolutions A-1 through K-1, the voting delegates viewed a brief videotape of the applicable Standing Committee Chair explaining the resolution s importance. After Mr. Guyer individually moved for the adoption of, and after discussion or an opportunity for discussion on, Proposed Resolutions A-1 through M-1, each proposed resolution was individually adopted as presented. A copy of each resolution as adopted is attached to these Minutes. Proposed Resolutions M-2 through M-5 were read and adopted. Page 2 of 4

8 Consideration of Proposed Amendments to NRECA Bylaws. As President Guidry explained, to facilitate implementing reforms recommended by the NRECA Resolutions Review Committee, the NRECA Board of Directors proposed amendments to the NRECA Bylaws during its December 2012 meeting. The Proposed Amendments to NRECA Bylaws included in the Document further explain and list the proposed amendments. Notice of the proposed amendments was sent to NRECA voting members with notice of the Meeting. After discussion or an opportunity for discussion, and by a three-fourths vote, Article V, Section 4, Subsection A of the NRECA Bylaws was amended to delete the following stricken language: Regional meetings of the members shall be held at the time, date, and place determined by the Association after consulting with the director representing the state in which the meeting may be held, but not less than forty-five (45) days before the annual meeting of the members. Each region shall hold a business meeting for the purpose of electing standing committee members and for the purpose of proposing resolutions for consideration by standing committees at the annual meeting. Each voting member located in a region shall be entitled to have one voting delegate to represent its membership and to debate and vote on its behalf. Because of disaster, emergency, or other factors beyond the Association s reasonable control, the Association may reschedule or cancel a regional meeting. After discussion or an opportunity for discussion, and by a three-fourths vote, Article VIII, Section 1, Subsection B of the NRECA Bylaws was amended to add the following underlined language and delete the following stricken language: There shall be at least one person elected from each region to serve on each member standing committee. The election shall take place at the regional meeting. The term of office shall begin immediately upon election and shall continue until the next regional meeting two years later. Member standing committees shall elect their own chair and vice chair. A member of a member standing committee may not serve more than three consecutive terms on the same committee. After not serving for one or more terms on a committee, a member may again serve up to three consecutive terms on the committee. Terms may be staggered in a manner determined by the president. This subsection does not apply to the resolutions member standing committee. After discussion or an opportunity for discussion, and by a three-fourths vote, Article VIII, Section 1 was amended to add the following new Subsection C: The resolutions member standing committee will be comprised of the chair and vice chair of each member standing committee and, to the extent needed to ensure adequate and fair representation of NRECA members, Page 3 of 4

9 additional individuals appointed by the board of directors. The term of office begins upon election as chair or vice chair, or appointment. The term of office ends with the adjournment of the annual member meeting following the end of service as chair or vice chair, or adjournment of the third annual member meeting following appointment. By general consent, President Guidry instructed Secretary-Treasurer Coleman to amend Article VIII, Section 1 to reletter the current Subsection C as Subsection D, and reletter the current Subsection D as Subsection E. Adjourn Sine Die. The Business Meeting adjourned sine die at approximately 10:15 a.m. on Tuesday, March 6. The Meeting adjourned after its Closing General Session on Wednesday morning, March 7. Tyrus H. Thompson Recording Secretary Page 4 of 4

10 Quick Reference Guide to Proposed Resolutions This guide is intended to help you easily see what the Resolutions Committee is recommending for each existing resolution and the proposed resolutions from the Regional Meetings. Existing resolutions are listed in the order that they appear in the 2012 Resolutions booklet and followed by proposed resolutions as they appeared in the 2012 Regional Meeting Compendium of Proposed Resolutions (2012 Compendium). Page numbers to the 2012 Resolutions booklet are provided so you can review the original language. The final column directs you to the page number where the resolution can be found within this 2013 Proposed Resolutions booklet. The 2012 Resolutions booklet is available for download at: Hardcopies of the 2012 Resolutions booklet will be available in New Orleans. The 2012 Compendium is available for download at: Resolution Title 2012 Resolutions Booklet Recommended Actions Proposed Resolutions Booklet Meeting Consumer Needs p. 11 Merge p. 69 Consumer Energy Efficiency p. 11 Reformat p. 70 Low Income Home Energy Assistance p. 11 Reformat p. 71 Advanced Telecommunications for Rural America p. 12 Merge p. 70 Modern Telecommunications Services for Rural America p. 12 Merge p. 70 Privacy of Consumer Data p. 13 Reformat p. 69 Sense of the Membership: Health Insurance Affordability p. 13 Merge p. 67 Health Care p. 13 Merge p. 67 Voluntary Employee Beneficiary Association p. 13 Merge p. 67 RS Plan Improvements p. 14 Merge p. 68 Support Legislation to Exclude NRECA's Retirement Security Plan from Increased Regulation and Costs without the p. 14 Merge p. 68 Deterioration of Current Benefits Clean Air Regulatory Implementation and Reauthorization p. 15 Merge p. 21 Oppose Existing Clean Air Act Programs to Reduce CO2 from Stationary Sources p. 16 Merge p. 21 Global Climate Change p. 17 Merge p. 19 Page 1 of 8

11 Resolution Title 2012 Resolutions Booklet Recommended Actions Proposed Resolutions Booklet Carbon Capture and Sequestration (CCS) and Carbon Capture and Utilization (CCU) p. 18 Merge p. 19 Carbon Allowance Allocation p. 19 Delete p. 94 Support for Domestic and International Offsets p. 20 Delete p. 94 Opposition to Environmental Protection Agency Proposed Coal Ash Regulations Classifying Coal Ash as a Hazardous p. 21 Merge p. 23 Waste Management and Disposal of Solid, Toxic and Hazardous Materials p. 21 Merge p. 23 CERCLA Liability p. 22 Merge p. 24 Superfund Reform p. 23 Merge p. 24 Accidental Wildlife Contacts p. 23 Merge p. 96 Reasonable Avian Mitigation Requirements in Cooperative Work Plans p. 24 Merge p. 25 Fish and Wildlife Mitigation p. 24 Merge p. 25 Endangered Species Act Reauthorization p. 24 Merge p. 96 Environmental Externality Costs to Energy p. 25 Delete p. 94 Reciprocating Internal Combustion Engines (RICE) Rules p. 26 Delete p. 108 Clean Water Regulatory Implementation Reauthorization p. 27 Reformat p. 21 Use of Biodegradable Oil for Transformers p. 27 Delete p. 94 Agricultural Chemicals p. 27 Reformat p. 105 Taxation of Rural Electric Systems p. 28 Merge p. 9 Taxation p. 28 Merge p. 9 Tax Exempt Financing p. 29 Merge p. 7 Private Use of Tax-Exempt Funding p. 29 Delete p. 94 Federal Assistance to Electric Utilities p. 30 Merge p. 11 Support for Continuation of Clean Renewable Energy Bonds and Renewable p. 30 Merge p. 7 Energy Tax/Grant Incentives IOU Tax Subsidies p. 31 Merge p. 7 The Value of Energy Financial Product Transactions p. 32 Reformat p. 45 Royalty Rates on Federal Coal p. 32 Merge p. 9 Protection of Wholesale Power Contracts p. 32 Reformat p. 40 Accounting and Auditing Standards p. 32 Reformat p. 91 Taxable Status of Cooperative Group Self-Insured Pools p. 33 Merge p. 9 Support for Pension and Tax Code Simplification p. 34 Merge p. 68 Page 2 of 8

12 Resolution Title 2012 Resolutions Booklet Recommended Actions Proposed Resolutions Booklet Economic Security for Working and Retired Americans p. 34 Merge p. 68 Regulatory Reform p. 35 Merge p. 90 Association Response to Regulations p. 35 Merge p. 90 Application of the Small Business Regulatory Enforcement Fairness Act p. 36 Merge p. 90 Uniform Limited Cooperative Association Act p. 36 Reformat p. 89 Electric Industry Restructuring p. 37 Merge p. 42 Federal Utilities Privatization Support p. 37 Reformat p. 93 Takeover Threats p. 38 Reformat p. 15 Bulk Commodity Rail Transportation p. 38 Reformat p. 46 Barge Traffic on the Nation's Waterway System p. 39 Merge p. 47 Operation of the Nation's Inland Waterways p. 40 Merge p. 47 Support for Ethanol and Biodiesel Fuels p. 40 Reformat p. 65 Exploration and Production of Domestic Gas and Oil Resources p. 41 Merge p. 33 Abandoned Mine Land Reclamation p. 41 Reformat p. 33 Bankruptcy Protection p. 41 Reformat p. 89 Postal Legislation p. 42 Reformat p. 80 Open Equal Access to Justice Act p. 42 Reformat p. 87 Tort Reform p. 43 Reformat p. 88 Full Development of Hydroelectric Power Resources p. 43 Merge p. 27 Funding the Federal Power Program p. 44 Merge p. 27 Colorado River Storage Project Funding p. 44 Reformat p. 30 Power Marketing Administration Power Rates p. 45 Merge p. 98 Support for Preference Power p. 46 Merge p. 98 Preference in Licensing Hydroelectric Facilities p. 46 Merge p. 27 Preventing Undue Transfer of Benefits at Federal Projects p. 47 Merge p. 98 Change of Federal Purpose and Reallocation p. 47 Reformat p. 28 Opposition to the Sale of Federal Power Marketing Administrations p. 48 Reformat p. 27 Opposition to Dam Breaching p. 48 Merge p. 30 Implementation of the Dam Safety Act of 1986 p. 49 Merge p. 30 Aquatic Invasive Species p. 49 Reformat p. 31 Infrastructure Policy Management of the PMAs p. 50 Merge p. 98 Page 3 of 8

13 Resolution Title 2012 Resolutions Booklet Recommended Actions Proposed Resolutions Booklet Affordable Electric Power p. 50 Merge p. 77 Securing Federal Funding for Clean Coal Technologies p. 51 Merge p. 33 Support for a National Energy Policy and Facilitation and Use of Domestic Fuels p. 51 Merge p. 33 Cooperative Support for Cost-Effective Renewable Energy and Environmentally- p. 52 Merge p. 34 Favorable Energy Green Tag and Renewable Energy Credit Programs p. 54 Delete p. 95 Geothermal Power Generation Support p. 54 Delete p. 95 Support for Nuclear Power p. 54 Reformat pp. 36, 102 Energy Storage p. 55 Reformat p. 39 Large Capacity Water Heater Energy Storage Programs p. 56 Merge p. 39 Bypass of Demand-Side Programs p. 56 Merge p. 39 Transmission Access and Pricing p. 57 Delete p. 95 Cost Allocation of High Voltage Transmission Facilities p. 57 Reformat p. 48 Federal Siting, Permitting, Eminent Domain and Private Property Rights p. 58 Reformat p. 49 Implementing the Transmission Infrastructure Program p. 58 Reformat p. 50 Integration of Renewable Energy Resources into the Transmission Grid p. 59 Delete p. 95 Resolve Public Policy Conflicts to Facilitate Renewable Energy p. 59 Merge p. 33 Development Public Utility Regulatory Policies Act p. 59 Reformat p. 37 Interconnection of Distributed Generation p. 60 Reformat p. 38 Federal Energy Regulatory Commission Jurisdiction p. 60 Reformat p. 50 Regional Transmission Organizations p. 61 Reformat p. 51 Ensuring Reliable Electric Service Across Federal Lands p. 62 Merge p. 93 Strict Liability on Federal Lands Rightsof-Way p. 63 Merge p. 93 Tribal Jurisdiction Issues p. 64 Merge p. 103 Market Power p. 65 Reformat p. 43 Wholesale Market Design p. 65 Reformat p. 43 Transparency of the Energy Trading Markets p. 66 Delete p. 95 Separation of Functions p. 67 Merge p. 42 Mandatory Electric Reliability Standards p. 68 Reformat p. 53 Page 4 of 8

14 Resolution Title 2012 Resolutions Booklet Recommended Actions Proposed Resolutions Booklet Responsibility to Protect Electric Infrastructure p. 69 Merge p. 56 Security of Critical Infrastructure Facilities p. 70 Merge p. 56 Preserving Cooperatives' GPS Capabilities p. 70 Merge p. 57 Radio Spectrum p. 71 Merge p. 57 Reauthorization of the Telecommunications Act p. 72 Merge p. 58 Regulation of Pole Attachments and Safeguarding of Electric Cooperative p. 72 Merge p. 58 Infrastructure Cooperative Emergency Disaster Assistance p. 73 Merge p. 53 Continued Availability of FEMA Funds for Electric Cooperatives p. 73 Merge p. 53 Support for the Rural Utilities Service and its Mission p. 74 Merge p. 11 Streamlining RUS Processes p. 75 Merge p. 12 Rural Utilities Service Regulatory Initiatives p. 75 Merge p. 12 Maintaining the Character of Rural America p. 75 Merge p. 12 Power Supply Financing p. 75 Merge p. 11 Support for the Federal Financing Bank Guaranteed Loan Program for Base Load p. 76 Merge p. 11 Generation Prepayment of FFB Debt p. 76 Merge p. 12 RUS Debt Limit Interpretation p. 76 Merge p. 12 Federal Debt Collection and Sale of New Loans p. 77 Merge p. 12 Opposition to the Privatization of Cooperative Rural Utilities Service Electric p. 77 Merge p. 12 Loans Territorial Integrity and Loan Security p. 78 Reformat p. 13 RUS Engineering and Technical Standards p. 78 Reformat p. 12 Co-op Governance and Ethics p. 80 Reformat p. 60 Selection of CEO/General Manager p. 80 Reformat p. 60 Safety Issues p. 80 Reformat p. 65 The Importance of Telecommunications in the Operations and Maintenance of p. 81 Reformat p. 65 Electric Cooperatives Using Secure Communication Services to Support the Electric Cooperative Business Network p. 82 Reformat p. 57 Page 5 of 8

15 Resolution Title 2012 Resolutions Booklet Recommended Actions Proposed Resolutions Booklet Support for Cooperative Business Models for Diversified Services p. 82 Merge p. 69 Commitment to Electric Cooperative Transition Planning and Communication p. 83 Reformat p. 61 Strategic Advantages of Developing Market Intelligence and Segmentation p. 84 Reformat p. 62 Public and Member Relations Aspects of Environmental Issues p. 84 Reformat p. 62 Continuing Member Education Regarding the Costs of Compliance with EPA p. 85 Reformat p. 75 Regulations Member Involvement and Education p. 85 Merge p. 76 Consumer, Community and Political Education p. 86 Merge p. 76 Cooperative Grassroots Advocacy p. 86 Merge p. 77 Action Committee for Rural Electrification - ACRE p. 87 Reformat p. 78 Cooperative Education p. 87 Merge p. 76 Director, Management and Employee Development p. 87 Reformat p. 72 Communication Professional Development p. 89 Merge p. 72 Certified Cooperative Communicator Program p. 89 Merge p. 72 A Balanced Approach to Educating our Youth p. 89 Reformat p. 106 Youth Programs p. 90 Reformat p. 74 Workforce Development p. 90 Reformat p. 74 Rural Electric Mascot Willie Wiredhand p. 91 Reformat p. 66 Showcasing Electric Cooperative Economic and Community Benefits p. 92 Merge p. 64 Cooperative Cornerstones for Local Entrepreneurs p. 92 Merge p. 64 Rural Development Funding and REDL&G p. 93 Merge p. 86 Federal Land Use Reforms p. 94 Delete p. 95 Support for Land Grant Universities and Colleges p. 94 Merge p. 86 Ensuring Access to Capital in Farm Policy p. 95 Merge p. 86 Expanded Authority of the Farm Credit System p. 95 Merge p. 86 Protect Tax-Exempt Status of National Rural Utilities Cooperative Finance p. 95 Merge p. 9 Corporation Support of the National Rural Utilities Cooperative Finance Corporation p. 96 Reformat p. 83 Page 6 of 8

16 Resolution Title 2012 Resolutions Booklet Recommended Actions Proposed Resolutions Booklet National Rural Telecommunications Cooperative Legislative Issues p. 96 Reformat p. 83 Support of Utility Telecom Council p. 96 Reformat p. 59 Support for International Programs p. 97 Reformat p. 81 International Year of Cooperatives p. 98 Delete p. 95 The Importance of Coordinated Outreach p. 98 Reformat p. 77 Building Consumer Awareness and Loyalty through Touchstone Energy p. 99 Reformat p. 82 Rural Electric Magazine and ECT.coop p. 99 Reformat p. 79 Support of Statewide Publications and Local Cooperative Pages p. 99 Reformat p. 79 Support for Electric Cooperative Bar Association and Lawyers' Activities p. 100 Reformat p. 82 Support for America's Credit Unions p. 100 Reformat p. 84 Public Power Support p. 100 Reformat p. 84 Capper Volstead Act p. 101 Reformat p. 86 Recognition of the Present Military Service of Electric Cooperative p. 102 Approve p. 111 Employees Appreciation to the Member Standing Committees p. 102 Update/Adopt p. 109 Appreciation p. 102 Update/Adopt p. 111 General Memorial p. 102 Approve p. 111 Proposed New Resolution - Opposition to Department of Energy Changes to the Federal PMAs Proposed Amendment - Interconnection of Distributed Generation Proposed Amendment - Cooperative Support for Cost-Effective Renewable Energy and Environmentally-Favorable Energy Proposed New Resolution - Review and Consolidation of Existing Resolutions Proposed New Resolution - Electric Service on Indian Reservations Proposed New Resolution - Stray Voltage Proposed Reformat - Fish and Wildlife Mitigation Proposed Reformat - Clean Water Regulatory Implementation Reauthorization Proposed Reformat - Barge Traffic on the Nation's Waterway System 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium Merge p. 98 Reformat p. 38 Reformat p. 34 Delete p. 94 Merge p. 103 Delete p. 107 Merge p. 25 Adopt p. 21 Merge p. 47 Page 7 of 8

17 Resolution Title Proposed Reformat - Operation of the Nation's Inland Waterways Proposed Reformat - Colorado River Storage Project Funding Proposed Reformat - Power Marketing Administration Power Rates Proposed Reformat - Support for Preference Power Proposed Reformat - Preference in Licensing Hydroelectric Facilities Proposed Reformat - Preventing Undue Transfer of Benefits at Federal Projects Proposed Reformat - Change of Federal Purpose and Reallocation Proposed Reformat - Opposition to the Sale of Federal Power Marketing Administrations Proposed Reformat - Opposition to Dam Breaching Proposed Reformat - Implementation of the Dam Safety Act of 1986 Proposed Reformat - Aquatic Invasive Species Proposed Reformat - Infrastructure Policy Management of the PMAs Proposed Reformat - Implementing the Transmission Infrastructure Program Proposed Reformat - Strict Liability on Federal Lands Rights-of-Way Proposed Reformat - Endangered Species Act Reauthorization Proposed Reformat - Support for Continuation of Clean Renewable Energy Bonds and Renewable Energy Tax/Grant Incentives Proposed Reformat - Support for Ethanol and Biodiesel Fuels Proposed Amendment - Full Development of Hydroelectric Power Resources Proposed New Resolution - Resolution of Appreciation - Fred Guyer 2012 Resolutions Booklet 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium 2012 Compendium Recommended Actions Proposed Resolutions Booklet Merge p. 47 Adopt p. 30 Merge p. 98 Merge p. 98 Merge p. 27 Merge p. 98 Adopt p. 28 Adopt p. 27 Merge p. 30 Merge p. 30 Adopt p. 31 Merge p. 98 Reformat p. 50 Merge p. 93 Merge p. 96 Merge p. 7 Reformat p. 65 Merge p. 27 Adopt p. 109 Page 8 of 8

18 Consent Agenda Proposed Resolution 1 Recommendations For Adoption In accordance with the new resolutions process, the Member Standing Committees reformatted all existing 2012 Resolutions, and proposed resolutions from the 2012 Compendium, into a clear and concise policy statement. The committees focused on clarifying the intent of the resolutions without altering the meaning. A substantial portion of the original text has been retained in the statement. The background statement is intended to serve as an educational and historical reference. Delegates will only vote on the resolutions, not the background statements. To recommend changes to a background statement, please contact a Resolutions Committee member or resolutions@nreca.coop. The Resolutions Committee will consider all recommendations to background statements at their summer meeting on June 21, The Standing Committee responsible for the review and reformat of the resolution is noted. The full text of each resolution and explanations of actions taken follow this list. Consent Agenda Proposed Resolution 1 Any Voting Delegate may remove a resolution from the Consent Agenda and have it considered individually. The Standing Committees and Resolutions Committee recommend for the adoption of these resolutions: Resolutions Process Authorization to Make Non-Substantive Edits to Membership-Approved Resolutions (CMEC) Tax Tax Exempt Financing (Legislative) Taxation (Legislative) RUS Support for Rural Utilities Service and its Mission (Legislative) Rural Utilities Service (RUS) (Regulatory) RUS Engineering and Technical Standards (CMEC) Territorial Integrity and Loan Security (Legislative) Takeover Threats (CMEC) Environmental Concerns Greenhouse Gas Emissions (Legislative) Federal Clean Air Regulation (Regulatory) Clean Water Regulatory Implementation Reauthorization (Regulatory) Solid Waste and Hazardous Waste (Regulatory) Superfund (Legislative) Fish, Wildlife, and Avian Mitigation (Regulatory) Page 1 of 111

19 Consent Agenda Proposed Resolution 1 Recommendations For Adoption Hydropower Support for Preference Power and Full Development of Hydroelectric Power Resources (Legislative) Opposition to the Sale of Federal Power Marketing Administrations (Legislative) Change of Federal Purpose and Reallocation (Legislative) Protection of Dams and Allocation of Dam Repair Costs (Regulatory) Colorado River Storage Project Funding (Legislative) Aquatic Invasive Species (Legislative) Power Supply Fuel Mix, Including Renewables (Legislative) Abandoned Mine Land Reclamation (Legislative) Cost-Effective Renewable Energy and Environmentally-Favorable Energy (Regulatory) Support for Nuclear Power (Regulatory) Public Utility Regulatory Policies Act (PURPA) (Legislative) Interconnection of Distributed Generation (CMEC) Demand-Side Management Programs (Regulatory) Third-Party Bypass of Demand-Side Management Programs (Regulatory) Energy Storage (Regulatory) Wholesale Power Contracts (Regulatory) Electric Industry Restructuring (Regulatory) Energy Markets Market Power (Regulatory) Wholesale Market Design (Regulatory) Energy Financial Product Transactions (Regulatory) Transportation Infrastructure Bulk Commodity Rail Transportation (Legislative) Operation of the Nation s Inland Waterways (Legislative) Transmission Transmission Planning and Cost Allocation of High Voltage Transmission Facilities (Regulatory) Federal Siting, Permitting, Eminent Domain and Private Property Rights (Regulatory) Western Area Power Administration Transmission Infrastructure Program (Regulatory) Federal Energy Regulatory Commission Jurisdiction (Regulatory) Regional Transmission Organizations (Regulatory) Reliability and Infrastructure Protection Disaster Assistance (Legislative) Mandatory Electric Reliability Standards (Regulatory) Responsibility to Protect Electric Infrastructure (Regulatory) Electric Cooperative Utilization of Communications Spectrum (Regulatory) Using Secure Communications Services (CMEC) Safeguarding Local Control FCC and Pole Attachments (Legislative) Support of Utilities Telecom Council (CMEC) Page 2 of 111

20 Consent Agenda Proposed Resolution 1 Recommendations For Adoption Cooperative Governance, Management, and Operations Co-op Governance and Ethics (CMEC) Selection of CEO/General Manager (CMEC) Commitment to Electric Cooperative Transition Planning and Communication (CMEC) Public and Member Relations Aspects of Environmental Issues (CMEC) Strategic Advantages of Developing Market Intelligence and Segmentation (CMEC) Showcasing Electric Cooperative Economic and Community Benefits (CMEC) Telecommunications and Information Technologies Support for Electric Cooperatives (CMEC) Safety Issues (CMEC) Ethanol and Biodiesel Fuels (CMEC) Rural Electric Mascot Willie Wiredhand (CMEC) Employee Benefits Health Care (Legislative) Employee Retirement Benefits (Legislative) Consumer Services and Assistance Privacy of Consumer Data (Regulatory) Memberships Need for Diversified Services (CMEC) Telecommunications Services for Rural America (CMEC) Consumer Energy Efficiency (CMEC) Low Income Home Energy Assistance (CMEC) Education Cooperative Communications Programs (CMEC) Director, Management and Employee Development (CMEC) Workforce Development (CMEC) Youth Programs (CMEC) Education Regarding the Costs of Compliance with EPA Regulations (CMEC) Cooperative Business Model Education (CMEC) Political Activity and Outreach Affordable Reliable and Safe Electric Power Through Cooperative Grassroots Advocacy (CMEC) The Importance of Coordinated Outreach (CMEC) Action Committee for Rural Electrification ACRE (CMEC) Cooperative Nonprofit Publications Rural Electric Magazine and ECT.coop (CMEC) Support of Statewide Publications and Local Cooperative Pages (CMEC) Postal Legislation (Legislative) Support for Allied Organizations and Industries Support for International Programs (Legislative) Touchstone Energy (CMEC) Support for Electric Cooperative Bar Association and Lawyers Activities (CMEC) Support of the National Rural Utilities Cooperative Finance Corporation (CMEC) Page 3 of 111

21 Consent Agenda Proposed Resolution 1 Recommendations For Adoption National Rural Telecommunications Cooperative Legislative Issues (Legislative) Public Power Support (CMEC) Support of America s Credit Unions (CMEC) Investment to Strengthen Rural America (Legislative) Capper Volstead Act (Legislative) Costs of Litigation Open Equal Access to Justice Act (Legislative) Tort Reform (Legislative) Misc. Policy Issues Uniform Limited Cooperative Association Act (CMEC) Bankruptcy Protection (Legislative) Regulations and Regulatory Reform (Regulatory) Accounting and Auditing Standards (Regulatory) Ensuring Reliable and Affordable Electric Service Across Federal Lands (Regulatory) Federal Utilities Privatization Support (Regulatory) Page 4 of 111

22 Consent Agenda Proposed Resolution 1 Resolutions Process Authorization to Make Non-Substantive Edits to Membership-Approved Resolutions NRECA may make spelling, grammatical, and similar changes, and minor formatting changes, to resolutions adopted by the NRECA membership, provided a change does not substantively alter a resolution, with the NRECA President resolving any question of whether a change substantively alters a resolution. The proposed resolutions are the product of many authors from NRECA members across the nation. In preparation for the annual Business Meeting, NRECA compiles a booklet of proposed resolutions. The booklet of proposed resolutions is compiled quickly after the Resolutions Committee meeting to allow voting delegates as much time as possible to read and consider resolutions before arriving at the Business Meeting. After the Business Meeting, NRECA compiles a booklet of the resolutions adopted by the NRECA membership. This resolution would allow NRECA staff to make non-substantive edits when compiling the resolutions booklet for publication. Authorizing NRECA to make these types of edits alleviates the need for voting delegates to offer corrections as amendments during the Business Meeting. If someone questions whether an edit could potentially affect the substance or meaning of a resolution, then NRECA would consult the NRECA President for guidance. Explanation: This is a new resolution introduced by NRECA President Mike Guidry and recommended for adoption by the Resolutions Committee. If you would like to point out a non-substantive edit, you may resolutions@nreca.coop or contact any NRECA staff member on site in New Orleans. Page 5 of 111

23 Tax Exempt Financing Consent Agenda Proposed Resolution 1 Tax We support that when tax exempt financing, interest free loans, or energy incentives exist, or are considered by Congress, cooperatives should be treated equitably with other energy providers. Programs, such as the Clean Renewable Energy Bonds, that provide comparable benefits should be available for electric cooperatives. As energy policy in Congress continues to evolve, if a Production Tax Credit (PTC) is extended beyond 2012, NRECA should pursue comparable tax benefits for cooperatives and entities that can t benefit from a PTC against income taxes. Congress has previously demonstrated a willingness to provide for tax incentive equity through Clean Renewable Energy Bonds originally authorized in the Energy Policy Act of If renewable energy incentives are extended or enacted in the future, an equitable policy should be developed. Congress included Clean Renewable Energy Bonds (CREBs) in the Energy Policy Act of In 2006, cooperatives received $313,712,810 in CREB allocations. In 2007, cooperatives received $138,973,580. Congress approved $800 million in bonding authority for cooperatives for the fiscal year. Cooperatives have used CREBs to develop an array of renewable projects including, among others, wind turbines for Alaska Village Electric Cooperative, which have allowed the towns to reduce their dependence on diesel generators, refurbish carbon neutral hydroelectric facilities, expand landfill gas projects, and install photovoltaic arrays at schools. Because the Production Tax Credit (PTC) for renewable generation investments such as wind only allows a tax credit to be taken against corporate income or passive income on a personal basis, the PTC effectively does not work for local investment opportunities. As part of the American Reinvestment & Recovery Act (ARRA) a new feature was added to encourage renewable energy development, the Section 1603 Renewable Energy Grant program. This program makes it possible for the creation of local investment opportunities in renewable energy projects. The 1603 Grant incentives are scheduled to expire on December 31, The PTC was extended until December 31, Tax Exempt Financing A number of NRECA members are public power systems and are eligible to issue tax-exempt bonds. In addition, generation and transmission cooperatives have utilized billions of dollars in tax-exempt bonds for pollution control facilities. Tax-exempt financing should be pursued as an option for electric co-ops, which can best serve their members by utilizing this alternative. Congress should create tax-exempt financing for electric cooperatives. IOU Tax Subsidies Interest-free loans and permanent reductions in tax liabilities enjoyed by investor-owned utilities (IOUs) currently total $124 billion. These tax subsidies result in an annual cost to the U.S. Treasury of almost $4.9 billion. IOUs have used and continue to use provisions of the federal income tax code to reduce their current income tax liabilities. The major tax benefits used by IOUs have included accelerated tax depreciation and investment tax credits. Page 6 of 111

24 Consent Agenda Proposed Resolution 1 Tax The federal income tax law generally allows IOUs to set rates as if the company paid federal income taxes based on reported financial earnings. The difference between taxes collected from customers and actual tax payments made to the government known as deferred taxes is supposed to be repaid to the government over the remaining life of the facilities generating the deferred taxes. A corporate income tax rate reduction enacted in 1986 results in a large amount of taxes which have been collected from ratepayers, but which will never have to be paid to the federal government. These excess deferred taxes are supposed to be repaid to the ratepayer over the remaining life of the facilities which generated the excess deferred taxes. Investment tax credits are permanent reductions in income tax liabilities computed as a percentage of new facilities investment. Investment tax credits are generally supposed to be paid to the ratepayers over the life of the facility generating the investment tax credit. While investment tax credits have been repealed, IOUs continue to carry substantial investment tax credit balances in their financial statements. While other types of corporations have generally been provided accelerated tax depreciation and investment tax credit in the income tax law, these tax benefits were conferred to spur additional facility investment in a competitive business environment. As rate-regulated businesses operating as monopolies, however, IOUs are required to build plant facilities to meet the needs of their service areas. They are provided a virtually guaranteed profit on their facilities investment by their rate regulators. IOUs do not have the investment risk attendant to competitive businesses. Legislation should require expeditious return of: deferred taxes to the government; excess deferred taxes to the ratepayers; and investment tax credits to the ratepayers. Explanation: Merge existing resolutions: Tax Exempt Financing (p. 29) Support for Continuation of Clean Renewable Energy Bonds and Renewable Energy Tax/Grant Incentives (p. 30) Compendium IOU Tax Subsidies (p. 31) Taxation We seek legislation, interpretation of regulations, judicial decisions, and administrative rulings to ensure that not-for-profit electric cooperatives, CFC and other not-for-profit cooperative partners maintain their tax status and are not adversely impacted by federal tax law. During times of budget constraints the Administration and Congressional leaders continue to look for new sources of revenue and frequently consider proposals that would have a drastic effect upon electric cooperatives. In the past, members of Congress have discussed a carbon tax, a unit tax on fossil fuels. Such a proposal would fall disproportionately upon the energy industry and energy Page 7 of 111

25 Consent Agenda Proposed Resolution 1 Tax producing states. In particular, such a tax would cause electric rates for memberconsumers of electric cooperatives to increase and would have a crippling effect upon the coal industry and other carbon based industries. We oppose any such tax proposals similar to a carbon tax on fossil fuels and urge Congress to reject such proposals as a possible source of revenue. Also discussed in the past has been new energy or BTU taxes. Such proposals would impose a tax on all energy in the country regardless of form or method or place of production. These tax proposals would also cause electric rates for member-consumers of electric cooperatives to increase. We oppose any such tax proposals which would impose a burden on our member-consumers through increased rates. Frequently, members of Congress develop plans to achieve environmental goals through taxation policies. The approach is to impose a tax on certain individuals, companies, or sectors of the economy with the hope of forcing a change in operations which will achieve the desired environmental result. Using taxation decisions is an ineffective and speculative method to achieve environmental goals. We oppose the use of taxation policy as a vehicle for achieving environmental changes. A legislative proposal introduced in Congress in prior years would eliminate the federal income tax exemption for not-for-profit cooperatives with revenues in excess of $25 million. Such a change in the tax code would impose an inequitable direct cost on memberconsumers that is not required of customers of other electric utilities. As not-for-profit corporations, electric cooperatives do not generate profits which can be used to pay income taxes. We oppose any change to the Internal Revenue Code which would subject electric cooperatives to a tax on income. In order to continue meeting the credit demands of its member utility systems at the lowest possible cost, it is essential that the National Rural Utilities Cooperative Finance Corporation (CFC) maintain its not-for-profit tax status. Because CFC must compete with government-sponsored lenders, the non-taxability of CFC is a critical issue. CFC is a not-for-profit cooperatively owned finance organization and returns to its members any margins exceeding the cost of operations. As a cooperative, CFC generates no profit. We support legislation to maintain CFC s tax-exempt status and oppose any legislation which would endanger it. If additional taxes are utilized by our nation, we urge Congress to expend all such revenue in American energy independence and energy generation research and technology development. Royalty Rates on Federal Coal Federal royalty rates for coal were set at 12.5 percent for surface mined coal and 8 percent for coal mined underground in Since fuel costs are approximately half of the power production costs of electric generation, utility consumers end up paying the bill. We don t believe Congress ever intended such a burden to be placed on this nation s electricity providers or their consumers. We, support a legislative solution to set a modest response to the huge increases faced by utility consumers. Such a proposal should embody a cap on surface-mined federal coal at a flat 6 percent of the value of federal coal. This increase would still generate vast revenues for the royalty program, of which one-half of the proceeds are returned to coal-producing states in which federal coal leases are located. Page 8 of 111

26 Consent Agenda Proposed Resolution 1 Tax Such a legislative proposal should also include a cap on the royalty rate for coal obtained from underground mines at 6 percent, to ensure equitable treatment for all federal coal leases. Tax-Exempt Status for Cooperative Group Self-Insured Pools Certain cooperative electric membership corporations have pooled their resources and formed statewide group self-insured pools to collectively insure their workers compensation insurance needs in an effort to reduce the ultimate incurred workers compensation costs to those cooperatives. The ultimate objective for these workers compensation self-insured pools is not a profit motive; rather, the ultimate goal is reducing the overall cost of workers compensation to an affordable cost. All excess premiums (surplus) generated by the group self-insured pools are returned to members once all claims have been closed out and appropriate reserves and special regulatory funding stipulations are no longer required. Returned premiums (surplus) are either paid out in the form of cash dividends or allocated capital credits. Pool members, as cooperative electric membership corporations, are non-taxable due to their cooperative status. Cooperatives could, if large enough, set up an employer self-insured program whereby the reserves and earnings on these reserves would be considered non-taxable as they relate to member operations. However, the Internal Revenue Service had deemed group self-insured pools be treated as a taxable entity for federal income tax purposes and taxed accordingly. This creates an adverse distinction between cooperative group self-insured pools and cooperative employer self-insured programs. The Internal Revenue Code should be amended to provide a tax-exempt status for cooperative group self-insured pools by allowing these group self-insured pools to allocate surplus earnings to pool members thereby moving the tax burden, if any, to the cooperative members of the pool rather than the pool itself, thus extending the same privileges to cooperative group self-insured pools that individual self-insured cooperative employers enjoy. While the suggested change to the tax code is the most direct way of achieving cost efficiencies, staff is also directed to explore other methods of obtaining the same results. Explanation: Merge existing resolutions: Taxation of Rural Electric Systems (p. 28) Taxation (p. 28) Royalty Rates on Federal Coal (p. 32) Taxable Status of Cooperative Group Self-Insured Pools (p. 33) Protect Tax-Exempt Status of National Rural Utilities Cooperative Finance Corporation (p. 95) Page 9 of 111

27 Consent Agenda Proposed Resolution 1 RUS Support for Rural Utilities Service and its Mission We support the Rural Utilities Service and its mission of enabling the building and maintaining of essential electric infrastructure through the Electric Loan Program. Sufficient loan levels, RUS lending for a full complement of generation (including baseload), transmission and distribution projects, efficient loan processing, and sufficient staffing levels at RUS are all key elements for RUS to remain a strong partner with electric cooperatives. The U.S. Energy Information Administration estimates electric power supply will need to increase by 30 percent by To continue providing top-quality service to our member-owners, electric cooperatives will need a continued strong partnership with the Rural Utilities Service. Electric cooperatives strongly support the Rural Utilities Service (RUS) and continuation of the agency s mission for building essential electric infrastructure through financing of generating resources, electric transmission and distribution lines, and other facilities needed to furnish affordable and safe electric service. Electric cooperatives also support RUS mission of investing in local economic development projects. RUS and the U.S. Department of Agriculture (USDA) should have the resources to recruit and retain competent personnel as authorized, and to fully employ available contract resources necessary to meet their mission in a timely fashion. The very small federal investment in the RUS electric loan programs, coupled with efficient management by cooperative businesses make the electric cooperative infrastructure strong, stable and dependable today. The high quality of the electric co-op infrastructure is also due to uniform engineering standards established by the federal government. Co-op infrastructure was built to withstand exposure to harsher elements and weather-related disturbances that are common to sparsely populated areas of this country. Although some cooperatives have seen a portion of their service territories transformed into urban areas, for the most part electric co-ops are the sole providers serving far-flung, sparsely populated areas with below-average income levels. Due to significant uncertainty regarding the timing of power supply project financing, it is very difficult to project a precise level of required funding. Congress should make adequate financing available for power supply facilities to the extent that needs are documented in applications for both new starts and deficiencies consistent with the intent of Congress. We urge RUS to continue to make 100 percent electric loan guarantees in the full amount of the project and not reduce it by any particular basis or arbitrary percentage. Furthermore, RUS financing must continue to be made available for capital improvements (including pollution control upgrades) to existing base load generating facilities. RUS needs to remain fuel neutral in its lending decisions. Since IOU utilities receive tax credits for infrastructure development and Municipals are allowed to issue tax exempt bonds, then electric cooperatives need a similar mechanism to encourage infrastructure development. To that end the RUS loan program allows electric cooperatives to borrow at low interest rates usually tied to the treasury rate. This is a Page 10 of 111