Public Policy Agenda Number 3. April 4, 2013 The following Legislative Issues Update outlines the status of the Board-approved Legislative Agenda as well as other relevant federal issues. The Business Planning and Governmental Programs Team will come before the Public Policy Committee on a regular basis to seek guidance and direction on these and other proposed rules and legislation that may arise during the coming year. Priority Issues EPA Rulemaking regarding Navajo Generating Station (NGS) Emissions Controls Continue efforts to engage elected officials, stakeholders, and governmental agencies in influencing the EPA to apply due weight to the economic impacts of its BART determination for NGS. The official publication of the proposed BART rule for NGS was filed in the Federal Register on February 5, beginning the 90-day comment period. However, the Environmental Protection Agency (EPA) has granted the request of CAP, SRP and the Navajo Nation for an additional 90-day extension of the comment period. The new deadline for comments is August 5, 2013. EPA is tentatively planning on holding public hearings on the Navajo Nation and in Page, Phoenix, and Tucson. Climate Change and Energy Legislation Monitor legislative efforts and respond appropriately to mitigate potential impacts on CAP operations and on the sale of Navajo surplus power. Co-chairmen of the Bicameral Task Force on Climate Change, Sen. Sheldon Whitehouse (D-RI) and Rep. Henry Waxman (D-CA), have circulated a carbon tax proposal aimed at moving discussions on the best ways to curb greenhouse gases and spend tax revenue. The proposal offers a range of carbon prices that would escalate annually. Power plants, petroleum refineries and other large emitters would be required to buy a permit to offset their carbon emissions or pay a penalty. The Waxman-Whitehouse proposal follows the release last month of a carbon tax bill by Senate Environment and
Public Works Chairwoman Barbara Boxer (D-CA) and Sen. Bernie Sanders (I- VT). Cybersecurity Threats and Legislation Monitor legislative efforts to address cybersecurity and potential threats to critical infrastructure and vital computer systems. A bipartisan group of House Oversight and Government Reform Committee members recently introduced H.R. 1163, a cybersecurity bill that would amend the Federal Information Security Management Act to increase security measures for federal agencies. Similar legislation was unanimously passed by the House last year, but the Senate never took up the bill. Cybersecurity issues have faced increased scrutiny this year, as reports have revealed an increase in cyberattacks on U.S. infrastructure. The President last month signed an executive order that proposes to improve information sharing between the federal government and the private sector. On March 14, the House Science, Space and Technology Committee approved two cybersecurity measures that are designed to improve research and development. H.R. 756, sponsored by Rep. Michael McCaul (R-TX), would require strategic plans for cybersecurity research and development across federal agencies and authorize research at the National Science Foundation and National Institute for Standards and Technology. Similar legislation passed the House last year but was not taken up by the Senate. The second measure, H.R. 967, would require agencies in the Networking and Information Technology Research and Development Program to develop and update a strategic plan. Sponsored by Rep. Cynthia Lummis (R-WY), the bill also would authorize agencies to support research on preventing and detecting threats to computer-based systems. Issues That Require CAP Involvement with Other Stakeholders Clean Water Restoration Act Continue to oppose expansion of the coverage of the Clean Water Act from "navigable waters of the United States" to "waters of the United States."
No update to report at this time. Navajo/Hopi Water Rights Settlement Legislation Continue to seek a settlement of these water rights claims and support legislation necessary and appropriate to implement a settlement. No update to report at this time. Colorado River Basin Salinity Control Forum Support the activities of the Colorado River Basin Salinity Control Forum. In the ensuing months, subcommittees of both the U.S. House and Senate Appropriations committees will hold hearings on Colorado River salinity control funding in the federal budget. The Colorado River Basin Salinity Control Forum, as well as CAP and other state-level agencies in the Basin, will submit written testimony in support of the program to these appropriations hearings. Bureau of Reclamation Colorado River Basin Water Supply and Demand Study Continue to collaborate with Federal, State, tribal, and environmental stakeholders, to augment water supplies and address challenges with growing water needs and the potential impacts of climate change. No update to report at this time. Hualapai Water Rights Settlement Legislation Support the settlement of these water rights claims and support legislation necessary and appropriate to implement a settlement. No update to report at this time.
Federal Rulemaking EPA Rulemaking, Greenhouse Gas Emissions Monitor proposals to regulate greenhouse gas emissions from large facilities under the Clean Air Act. No update to report at this time. EPA Rule, Hazardous Air Pollutants (HAP), Maximum Achievable Control Technology (MACT) Monitor the implementation of the MACT Rule and its implications on the Navajo Generating Station. No update to report at this time. EPA Final Rule, Drinking Water Contaminant Candidate List (CCL3) Monitor the implementation of the final rule on the Drinking Water Contaminant Candidate List 3. No update to report at this time. Other Bills/Legislative Issues of Interest Pascua Yaqui Tribe Trust Land Act (H.R. 507) On March 20, the House Natural Resources Committee marked up the Pascua Yaqui Tribe Trust Land Act (H.R. 507). It was approved by unanimous consent, and is now ready for floor consideration. The bill continues to attract bipartisan cosponsors, including seven members of the Arizona delegation. If you have any questions or would like more information regarding any of the issues contained in this report, please contact CAP Business Planning and Governmental Programs, 623-869-2150.
Public Policy Agenda Number 3. Attachment 1. 1
The official publication of the proposed BART rule for NGS was filed in the Federal Register on February 5, beginning the 90-day comment period. However, the EPA has granted the request of CAP, SRP and the Navajo Nation for an additional 90- day extension of the comment period. The new deadline for comments is August 5, 2013. 2
Cybersecurity Bills: In addition to the President s Executive Order and two bills sponsored by Rep. Mike Rogers (R-MI) and Sen. Jay Rockefeller (D-WV) that were reported to the Board last month, a bipartisan group of House Oversight and Government Reform Committee members (Darrell Issa, R-CA; Gerald Connolly, R-VA; Elijah Cummings, R-MD; John Mica, R-FL) have introduced H.R. 1163. It would amend the Federal Information Security Management Act to increase security measures for federal agencies. Similar legislation was unanimously passed by the House last year, but the Senate never took up the bill. On March 14, the House Science, Space and Technology Committee approved two cybersecurity measures that are designed to improve research and development. H.R. 756, sponsored by Rep. Michael McCaul (R-TX), would require strategic plans for cybersecurity research and development across federal agencies and authorize research at the National Science Foundation and National Institute for Standards and Technology. Similar legislation passed the House last year but was not taken up by the Senate. The second measure, H.R. 967, would require agencies in the Networking and Information Technology Research and Development Program to develop and update a strategic plan. Sponsored by Rep. Cynthia Lummis (R-WY), the bill also would authorize agencies to support research on preventing and detecting threats to computer-based systems. 3
Carbon Tax Proposal: Co-chairmen of the Bicameral Task Force on Climate Change, Sen. Sheldon Whitehouse (D-RI) and Rep. Henry Waxman (D-CA), have circulated a carbon tax proposal aimed at moving discussions on the best ways to curb greenhouse gases and spend tax revenue. The proposal offers a range of carbon prices that would escalate annually. Power plants, petroleum refineries and other large emitters would be required to buy a permit to offset their carbon emissions or pay a penalty. The Waxman- Whitehouse proposal follows the release last month of a carbon tax bill by Senate Environment and Public Works Chairwoman Barbara Boxer (D-CA) and Sen. Bernie Sanders (I-VT). Four-Year Energy Strategy Review: A bipartisan group of senators introduced a bill (S. 552) to authorize a mandated four-year government wide energy review of current domestic capabilities and future energy needs and the resources, technologies and policy recommendations to meet them. Under the bill, the Energy Secretary and the Director of the Office of Science and Technology Policy would lead an interagency "energy coordination" council that would include top-level officials from various federal agencies. Senate Clean Energy Bill: Sen. Michael Bennet (D-CO) reintroduced his bill to establish a $5 billion grant program for clean energy and efficiency programs at the state level. Similar to the Department of Education's "Race to the Top" grant process, state and local governments, as well as public-private partnerships, would be able to compete for grants to implement programs that would boost clean energy deployment and reduce greenhouse gas emissions. 4
In the ensuing months, subcommittees of both the U.S. House and Senate Appropriations committees will hold hearings on Colorado River salinity control funding in the federal budget. The Colorado River Basin Salinity Control Forum, as well as CAP and other state-level agencies in the Basin, will submit written testimony in support of the program to these appropriations hearings. 5
Background: CAP s Black Mountain pipeline is located within existing easements that pass through land of the Pascua Yaqui Tribe. The existing maintenance road for the pipeline has suffered from flooding and erosion, essentially turning into a wash in places. Vehicular activity within the pipeline easement area has increased as a result of construction of a hotel and additions to the golf course. A single access maintenance road, 24 feet in width, lying east, adjacent to the pipeline from Valencia Road, to the southern boundary of the Pascua Yaqui Tribe property could be constructed to divert all vehicular travel from the top of the pipeline. This would better ensure the integrity of the pipeline and still allow access for essential maintenance to each of CAP s respective facilities. The proposed access road runs through a parcel of land owned by BLM that was leased to the Tucson Unified School District (TUSD) under an expiring recreation and public purpose patent. The land has since reverted back to BLM that essentially creates a BLM inholding within BIA land. The BLM land transfer authorized by the federal legislation will allow BIA to assume management and operation of the section of land. Status: On March 20, the House Natural Resources Committee marked up the Pascua Yaqui Tribe Trust Land Act (H.R. 507). It was approved by unanimous consent, and is now ready for floor consideration. The bill continues to attract bipartisan cosponsors, including seven members of the Arizona delegation. 6
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Public Policy Agenda Number 3. Attachment 2. TO: FR: David Modeer and CAWCD Board Terry Bracy, Tracy Tucker, and Brandon Avila DA: March 18, 2013 RE: Federal Legislative Report for Board Meeting Navajo Generating Station: The U.S. Environmental Protection Agency (EPA) granted the request of CAP, SRP and the Navajo Nation for an extension of time to comment on the EPA proposed rule making affecting Navajo Generating Station. The new deadline for comments is August 5, 2013. Additionally, EPA is developing locations for the public hearings on the NGS proposed rule. There is interest among many stakeholders for the public hearings to occur in locations throughout the state. Education efforts on the potential impact of the proposed rule to CAP continue on Capitol Hill. Pascua Yaqui Tribe Trust Land Act, H.R. 507: On Wednesday, March 20, the House Natural Resources Committee is scheduled to mark-up the Pascua Yaqui Tribe Trust Land Act (H.R. 507). Meanwhile, the bill continues to attract bipartisan cosponsors, including seven members of the Arizona delegation. See list below. Rep Barber, Ron [AZ-2] Rep Franks, Trent [AZ-8] Rep Gosar, Paul A. [AZ-4] Rep Kirkpatrick, Ann [AZ-1] Rep Pastor, Ed [AZ-7] Rep Schweikert, David [AZ-6] Rep Sinema, Kyrsten [AZ-9]
EPA Greenhouse Gas Regulations: It is looking increasingly likely that the EPA will miss the April 13 deadline to finalize its carbon dioxide rule for new power plants. The agency has yet to sign off on the rule internally and send it to the Office of Management and Budget to begin a review process that would typically take 90 days or longer to complete. Agency officials, including President Obama's nominee to head the EPA, Gina McCarthy, have said EPA is doing its best to wade through the more than two million comments on the rule. However, of much greater concern to industry and environmentalists are the existing power plant rules EPA has promised to promulgate next under the terms of a 2010 settlement agreement with plaintiffs, including the Natural Resources Defense Council. Although the EPA has engaged in talks with a wide variety of stakeholders on the rules, agency personnel have been hesitant about discussing the standard in public and have declined to say when it might be proposed. Cybersecurity: A bipartisan group of House Oversight and Government Reform Committee members recently introduced H.R. 1163, a cybersecurity bill that would amend the Federal Information Security Management Act to increase security measures for federal agencies. Similar legislation was unanimously passed by the House last year, but the Senate never took up the bill. Cybersecurity issues have faced increased scrutiny this year, as reports have revealed an increase in cyberattacks on U.S. infrastructure. The President last month signed an executive order that proposes to improve information sharing between the federal government and the private sector. On March 14, the Science, Space and Technology Committee approved two cybersecurity measures to improve research and development. H.R. 756, sponsored by Rep. Michael McCaul (R-TX), would require strategic plans for cybersecurity research and development across federal agencies and authorize research at the National Science Foundation and National Institute for Standards and Technology. Similar legislation passed the House last year but was not taken up by the Senate. The second measure, H.R. 967, would require agencies in the Networking and Information Technology Research and Development Program to develop and update a strategic plan. Sponsored by Rep. Cynthia Lummis (R-WY), the bill also would authorize agencies to support research on preventing and detecting threats to computer-based systems. House Judiciary Subcommittee Markup of 'REINS Act': The House Judiciary Subcommittee on Regulatory Reform this week is scheduled to mark-up the "Regulations from the Executive in Need of Scrutiny Act"(REINS). 2
The "REINS Act" would require agencies to submit to Congress any federal rules that have an economic impact of $100 million or more. Under the act, a joint resolution of approval would be required within 70 days after the rule is submitted to Congress for the regulation to take effect. If a joint resolution is not approved, the rule would not go into effect. An identical version of the bill was passed by the House in the 112th Congress, but companion legislation stalled in the Democratic-controlled Senate. Water Resources Development Act: On March 15, the Senate Environment and Public Works Committee circulated a draft of the Water Resources Development Act (WRDA). The legislation would authorize the Army Corps of Engineers to select which dam, port, flood protection and ecosystem restoration projects should move forward, although it does not include a list of authorized projects. The bill also proposes a number of reform measures, including one that would let the Army Corps hand off management of some projects to state and local governments, and another aimed at accelerating the Corps' lengthy study process. It has been six years since the last WRDA was passed. The Committee has scheduled a markup of the bill for March 20. Carbon Tax Proposal: On March 14, co-chairmen of the Bicameral Task Force on Climate Change, Sen. Sheldon Whitehouse (D-RI) and Rep. Henry Waxman (D-CA), circulated a carbon tax proposal aimed at moving discussions on the best ways to curb greenhouse gases and spend tax revenue. The proposal offers a range of carbon prices that would escalate annually. Power plants, petroleum refineries and other large emitters would be required to buy a permit to offset their carbon emissions or pay a penalty. The draft asks for feedback on how to spend the revenue generated by the tax. Among the proposals are: aid to low-income households affected by higher energy costs, reduction of the federal budget, aid to energy-intensive, trade-exposed industries affected by the price, cuts to the corporate or individual tax rates, and complementary low-carbon energy investments. The draft would also exempt emissions from manufacturers of exported products. The Waxman-Whitehouse proposal follows the release last month of a carbon tax bill by Senate Environment and Public Works Chairwoman Barbara Boxer (D-CA) and Sen. Bernie Sanders (I-VT.). 3
The Waxman-Whitehouse offering is similar in many ways to the Boxer-Sanders measure, which would spend 40 percent of its proceeds on energy efficiency, renewable energy and deficit reduction, and refund the rest to legal U.S. residents on a per-capita basis. Four-Year Energy Strategy Review: A bipartisan group of senators introduced a bill (S. 552) to authorize a mandated fouryear government wide energy review of current domestic capabilities and future energy needs and the resources, technologies and policy recommendations to meet them. Under the bill, the Energy Secretary and the Director of the Office of Science and Technology Policy would lead an interagency "energy coordination" council that would include top-level officials from the departments of Commerce, Defense, State, the Interior, Agriculture, Treasury and Transportation, as well as the EPA and the Office of Management and Budget. The council would look at both short-term and long-term objectives, anticipated federal actions, agency roles in terms of energy use by sector, any linkages between programs, and analysis of prospective energy technologies and status. The council would be required to report back to Congress every four years; the first report would be due in the summer of 2015. This approach is similar to the Quadrennial Defense Review for defense strategy and priorities. Senate Clean Energy Proposal: Last week, Sen. Michael Bennet (D-CO) reintroduced his bill to establish a $5 billion grant program for clean energy and efficiency programs at the state level. Similar to the Department of Education's "Race to the Top" grant process, state and local governments, as well as public-private partnerships, would be able to compete for grants to implement programs that would boost clean energy deployment and reduce greenhouse gas emissions. Applications would be scored based on several factors, including whether states have in place renewable electricity standards or participate in a regional cap-andtrade program, or whether the state or local governments provide tax incentives to clean energy or efficiency companies. 4