March 10, 2003
The Honorable Spencer Abraham Dear Secretary Abraham: As you know, the Committee on Energy and Commerce held a hearing on March 5, 2003, on energy policy and draft legislation that was circulated on February 28, 2003, by Chairman Barton of the Subcommittee on Energy and Air Quality. Deputy Secretary Kyle McSlarrow testified that the Administration supports comprehensive energy legislation, including an electricity title. Perhaps due to the short interval between the time the draft was circulated and the hearing, a number of questions arose which were not fully answered in Mr. McSlarrows testimony. Since the Subcommittee may soon mark up energy legislation, and in light of the Administrations support for prompt action, I would appreciate your response to the attached questions by Friday March 14, 2003. Sincerely, JOHN D. DINGELL QUESTIONS ON ENERGY LEGISLATION
2. Section 7012 of Rep. Bartons draft would establish a new subsection 216(j) of the Federal Power Act entitled "Rights of way on Federal lands," which would permit states, in certain circumstances, to "exercise the authorities vested in the Secretary" under the Federal Land Policy and Management Act of 1976 (FLPMA). Does the Administration support this provision, and why or why not? Which public lands would be affected? How are applications for rights of way for electric transmission lines handled under FLPMA currently? How would this provision alter the current process? Under this provision, how would disputes between various states regarding management of Federal lands that include land in more one state be resolved? 3. Section 7022 of the draft, titled "Regional Transmission Organizations," includes a subsection (d)(3) concerning "Federal Utility Participation in RTOs" denoted "Existing Authorities and Obligations." This section provides that "Where a contract, agreement, or other arrangement...conflicts with any statutory authority, duty, or obligation, under any authority of law, of a Federal utility, such authority shall be suspended for the duration of the contract, agreement, or other arrangement...". Does the Administration support this provision, and why or why not? What other Federal laws would be affected, and how? In particular, how would obligations of the Bonneville Power Administration and the Tennessee Valley Authority be affected? What would be the legal impact of this provision on existing contract rights between Federal authorities and private parties, and could this provision give rise to claims against the Federal Government for breach of contract?
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