State Power Accountability and Reliability Charter (SPARC) Exposed

Model Bill Info
Bill Title	State Power Accountability and Reliability Charter (SPARC)
Date Finalized	July 23, 2015
Date Amended	September 4, 2015
Date Accessed	May 3, 2018
Type	Model Policy
Status	Final
Task Forces	Energy, Environment and Agriculture
Keywords	Environment, Energy

State Power Accountability and Reliability Charter (SPARC)

Whereas Statements

WHEREAS, a reliable and affordable electricity supply is vital to the nation’s and each state’s economic growth, maintenance of environmental quality, and the overall well-being of its citizens; and

WHEREAS, {state} seeks to protect its residents from harmful federal regulations that cause tremendous harm to families and children struggling to afford basic necessities such as electricity and health care; and

WHEREAS, the existing regulatory structure and state legislature’s role in determining {state} the energy policy that best protects its citizens’ standard of living and assures that state agencies remain accountable to {state} interests; and

WHEREAS, on June 25, 2013, the President issued a memorandum to the Administrator of the U.S. Environmental Protection Agency (EPA) directing the EPA to develop guidelines to control greenhouse gas emissions from existing fossil fuel-fired power plants under Section 111(d) of the federal Clean Air Act and to seek input from states; and

WHEREAS, on June 2, 2014, the EPA issued proposed guidelines limiting carbon dioxide (CO₂) emissions from existing fossil fuel-fired power plants under Section 111(d) of the federal Clean Air Act and published them for comment in the Federal Register on June 16, 2014; and

WHEREAS, on ___________, the EPA issued final guidelines limiting carbon dioxide (CO₂) emissions from existing fossil fuel-fired power plants under Section 111(d) and published them in the Federal Register on _____________; and

WHEREAS, the EPA, under the Clean Air Act (CAA), claims authority to regulate greenhouse gases by utilizing Section 111(d) to regulate carbon dioxide performance standards for Existing Generating Units (EGUs) and to develop a CO₂ performance goal for each state premised upon implementation of “outside of the fence” elements of a state’s Clean Power Plan with respect to retirement or operation of coal fired electricity generating units, the reliance on generation of electricity from natural gas, the reliance on renewable energy sources, and the energy efficiency or demand management of end-users, each of these exclusively within the police powers of the state; and

WHEREAS, the {governor, attorney general, public utility commission, and/or state environmental agency} of {state} have sent comments to the EPA expressing concern with implementation of the rule;[1] and

WHEREAS, the proposed guidelines and plan, by the EPA’s own estimates, have a major impact on the economy of {state} and significant consequences for how electricity is generated, transmitted, distributed, and used within {state}; and

WHEREAS, the scope of the final guidelines and EPA’s claimed authority create(s) conflicts with existing state law and the existing state authority of select state agencies, including without limitation the {state environmental agency and/or air quality commission} and {state public utilities commission}; and

WHEREAS, the Legislature desires to restate and clarify the existing state authority of select state agencies, including without limitation the {state environmental agency and/or air quality commission} and {state public utilities commission}, because implementation of the final guidelines would mandate federal compulsion of {state} to create broad new authority for state agencies, which has not previously existed, and would require {state} to remove traditional authority from state agencies with specialized expertise.

 

Statutory Provisions

NOW THEREFORE BE IT RESOLVED, that:

The {state environmental agency and/or air quality commission} cannot derive any new state statutory authority from the final guidelines limiting CO₂ emissions from existing fossil fuel-fired power plants under Section 111(d) consistent with the cooperative federalism model in the Clean Air Act.

The {state environmental agency and/or air quality commission} cannot regulate, mandate, dictate, establish or otherwise order any electric dispatch protocols for any electric utility without new and specific state statutory authority to do so. The {state environmental agency and/or air quality commission} maintains its authority to provide for the prevention, abatement, and control of all air pollution and require air pollution controls for any facility, process, or activity which produces or might produce significant emissions of air pollutants pursuant to {air quality regulation enabling statute}. However, consistent with {insert reference to previous provision}, the final guidelines limiting carbon dioxide emissions from existing fossil fuel-fired power plants under 42 U.S.C.§ 7411(d) do not expand the authority of {state environmental agency and/or air quality commission} to allow for the development, implementation or regulation of electric dispatch protocols.

The {state environmental agency and/or air quality commission} cannot regulate, establish or otherwise order any specific levels of natural gas utilization for any electric utility without new and specific state statutory authority to do so.

[IF NO CODIFIED RENEWABLE PORTFOLIO STANDARD OR VOLUNTARY RENEWABLE PORTFOLIO STANDARD]

The {state environmental agency and/or air quality commission}, {state public utilities commission}, or any other state agency cannot establish any requirement that any person or entity, including without limitation electric utilities or other owners or operators of electric generating units, acquire any amounts of renewable energy under existing state law without new and specific state statutory authority to do so.

[IF CODIFIED RENEWABLE PORTFOLIO STANDARD]

The {state environmental agency and/or air quality commission} cannot regulate, develop or otherwise order the acquisition of any amounts of renewable energy pursuant to {renewable portfolio standard statute} or any other state law without new and specific state statutory authority to do so.

[IF NO CODIFIED ENERGY EFFICIENCY GOALS]

The {state environmental agency and/or air quality commission}, {state public utilities commission}, or any other state agency cannot establish any requirement that any person or entity, including without limitation electric utilities or other owners or operators of electric generating units, achieve any energy savings or peak demand reduction goals under existing state law without new and specific state statutory authority to do so.

[IF CODIFIED ENERGY EFFICIENCY GOALS]

The {state environmental agency and/or air quality commission} cannot regulate, develop or otherwise order any person or entity, including without limitation electric utilities or other owners or operators of electric generating units, to achieve any energy savings or peak demand reduction goals pursuant to {energy efficiency statute} or any other state law without new and specific state statutory authority to do so.

The {state environmental agency and/or air quality commission}, {state public utilities commission}, or any other state agency cannot develop or implement any trading program or any plan premised in any way on an allowance system, whether on a single- or multi-state basis, as part of any state plan submitted to EPA pursuant to final guidelines limiting carbon dioxide emissions from existing fossil fuel-fired power plants under 42 U.S.C.§ 7411(d) without new and specific state statutory authority to do so.

 

Approved by ALEC’s Energy, Environment, and Agriculture Task Force at the ALEC Annual Meeting on Thursday July 23, 2015 and Friday, July 24, 2015. Approved by ALEC Board of Directors on September 4, 2015.

 

[1] The whereas clauses should also include any state-specific comments regarding state authority issues. In comments filed by any elected official or state agency.