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NW Energy Coalition Report, January 2003


Northwest Election Results: Budget Woes, Divided Chambers Create Challenges for Energy Reforms

 

The Washington Legislature remains almost evenly split along party lines, likely offering little conveyance for bills that don't advance bipartisan goals. Democrats gained two seats in the House, increasing their majority to 52-46. More significant is the new 25-24 majority achieved by Republicans in the Senate, which overturned a slim advantage Democrats had held for four years.

Senate committees will now be chaired by Republicans, who, frustrated about last year's defeat of a state road-building referendum opposed by environmental groups, may have little patience for bills that sport a green tag.

Senator Bob Morton, whose rural eastern district includes parts of Okanogan and Spokane counties as well as counties in the upper northeast corner of the state, will chair the Natural Resources, Energy and Water Committee. Morton, a powerful voice for agriculture and industry, has led in preserving public resources while maintaining a strong interest in property rights. Senator Jim West, also from the Spokane region, will serve as majority leader, while Democrat Lisa Brown from Spokane is the new minority leader.

In the House, Washington Representative Jeff Morris (Whatcom and Skagit counties) will continue to chair the Technology, Telecommunications and Energy Committee. Morris has demonstrated strong interest in a long-term energy strategy as well as modifications to the state's electricity taxation system. Seattle Representative Frank Chopp remains House Speaker.

Energy policy may have a tough time competing for attention during this year's legislative session, as lawmakers wrestle with a serious budget shortfall of more than $2 billion and try to solve the state's transportation problems.Bills that promise economic development benefits without requiring tax breaks or additional appropriations, however, could look attractive to cash-strapped lawmakers interested in economic stimulus proposals.

Danielle Dixon

 

The Oregon Senate is locked in a 15-15 standoff for the first time in nearly 50 years, but a recent power-sharing compromise between Democrats and Republicans may bode well for relative peace and harmony this session. Senior senators Peter Courtney, D-Salem, and Lenn Hannon, R-Ashland, will serve as Senate president, and Senate pro-tem, respectively, sharing responsibility for assigning bills to committee. Courtney and Hannon have a long history of working productively together. The two parties will be represented equally on all committees, but the legislature chose not to afflict itself with co-chairs, a paralyzing structure the Washington legislature has adopted under similar circumstances.

Any possible threat to the public purposes provision of Oregon's1999 energy restructuring act—which mandates utility contributions for the support of renewable energy, conservation, and low-income energy assistance—won't likely arise in the Senate. Democrats generally protective of consumers, the environment, and public purpose funding will hold key committee chairs: Democratic leader Kate Brown co-chairs the Rules Committee, Frank Shields heads the Natural Resources Committee, and Vicki Walker serves as Business and Labor Committee vice-chair.

The House, as usual, is less predictable. Republicans made slight gains in the lower chamber, and now hold 35 out of 60 seats. The House doesn't field much experience on energy issues—they've never been a focus for new House Speaker Karen Minnis, majority leader Tim Knopp, or any current committee leaders.

As in most states this year, plugging budget shortfalls will be the first order of business for the Oregon legislature. All pots of money—including the $55-60 million in public purpose funding established by the utility restructuring act—will no doubt be eyed enviously. The funds, whose purpose is narrowly prescribed by law, could not easily be diverted because they are collected only from customers of Portland General Electric and PacifiCorp, not the general population. But the issue will bear close monitoring in a legislature that promises to be as rambunctious as ever.

Kevin Fullerton

 

Montana Democrats made surprising gains at the state level, regaining a majority on the Public Service Commission and narrowing Republican majorities in both houses of the legislature. Former PSC chair Tom Schneider and state Senator Greg Jergeson (D-Chinook) both took seats on the commission, while Democrats picked up five seats in the House and two in the Senate, giving the Republicans a 53-47 advantage in the lower chamber and a 29-21 edge in the Senate. Montana's senior U.S. Senator, Democrat Max Baucus (a prominent member of the Senate Finance Committee), retained his seat.

Popular support for the "dam cheap power" initiative (I-145) eroded quickly when corporate opponents PPL-Montana and Avista Corp. unleashed a multimillion-dollar ad campaign that dwarfed proponents' expenditures. Another energy initiative, IR-117, fared better. The passage of this measure repealed a highly controversial bill that was rushed through the legislature in the waning hours of the 2001 session. But the repeal of HB 474, known as the "kitchen sink, omnibus energy bill," is a mixed blessing. The repeal wiped out some positive amendments, including:

  • a 2 1/2-year extension for the Universal System Benefits Charge (USBC), which raises $13.6 million annually to support renewable energy, conservation, and low -income energy services. The program is set to expire on July 1. The extension to 2005, however, could still be re-enacted by the legislature this session;
  • a provision requiring Montana default energy provider NorthWestern to offer customers a green power program. NorthWestern's plan for meeting this requirement had the support of the conservation community and the Public Service Commis-sion's approval. NWEC's Montana caucus is asking NorthWestern to follow through with the program even without the legal requirement.

Nearly 100 energy-related bills are already drafted for the upcoming legislative session, promising a heavy workload for energy activists. Montana Environmental Information Center energy policy director Patrick Judge says restoration of the USBC extension is a top priority.

Trina Blake

 

Idaho's legislative redistricting worked heavily in favor of Democrats in 2003. The Dems doubled their ranks in the state legislature, capturing 22 seats, though they still trail Republicans by a large margin in both chambers. Most of the state's new legislative districts are weighted more heavily with urban voters, which seemed at least partly to blame for the shakeout of Republican incumbents. But from a policy standpoint, says Idaho Conservation League lobbyist Lauren McLean, the most significant development is the influx of 34 new members in Idaho's 105-member legislature.

This will mean slow progress on substantive policy issues like energy and water. Legislative insiders say it will take the legislature up to two months just to get a handle on the state budget and tax issues. In a normal year, bills reach the floor by early February, but this year few bills have been drafted, let alone reached committee as January draws to a close.

However, a resolution to restore a long-running interim committee on restructuring that had dissolved in November has already been approved. Rep. Bert Stevenson, R-Rupert, and Rep. George Eskridge, R-Dover, have been named co-chairs. The resolution provides funding to hire consultants and other energy policy experts. Other than those bills, there is little to watch on the energy front, reports Bill Eddie, with Advocates for the West. "There are no substantive energy bills being considered or even discussed this year," Eddie says.

Efforts are afoot, however, to undermine public oversight of water transfers, typically a contentious issue during the siting of industrial facilities such as power plants. For the second year in a row, industrial interests are pushing a bill that would limit the ability of the Idaho Department of Water Resources to consider the "local public interest" when reviewing facilities' requests for water rights. Eddie says citizens could lose significant leverage against badly sited plants if the measure succeeds.

Nancy Hirsh

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