IA

104TH CONGRESS

2D SESSION H. J. RES. 178

Disapproving Orders Nos. 888 and 889 of the Federal Energy Regulatory

Commission.

IN THE HOUSE OF REPRESENTATIVES

MAY 1, 1996

Mr. FRANKS of New Jersey introduced the following joint resolution; which

was referred to the Committee on Commerce

JOINT RESOLUTION

Disapproving Orders Nos. 888 and 889 of the Federal

Energy Regulatory Commission.

Whereas the Federal Energy Regulatory Commission issued

Orders Nos. 888 and 889 adopting new rules to promote

wholesale competition through open access nondiscriminatory transmission services by public utilities and to enable the recovery of stranded costs by public utilities and

transmitting utilities (RM95–8–000 and RM94–7–001);

Whereas these rules will open wholesale electric power markets to increased competition, thereby lowering energy

prices for millions of Americans;

Whereas Congress supports the intent of these rules to reduce electric costs through increased wholesale competition;
2

•HJ 178 IH

Whereas Congress is concerned about the adverse environmental effects that the resulting change in generation

dispatch will have on certain regions of the country;

Whereas open access to transmission will enable low-cost electric generators, many of which are older, coal-fired plants

subject to minimal pollution control requirements, to increase power production and sell electricity to customers

throughout the United States;

Whereas the environmental analysis by the Federal Energy

Regulatory Commission found that open access, without

mitigation, will result in increases in emissions of nitrogen oxides (NOX), carbon dioxide, particulates, and other

pollutants;

Whereas the benefits of interregional competition among electric utilities promise to be shared nationally, but the

NOX emissions and ozone transported from the upwind

regions will disproportionately impact the Ozone Transport Region in the Northeastern United States;

Whereas additional emissions resulting from these rules will

exacerbate the already existing ozone nonattainment

problem in the Ozone Transport Region;

Whereas States in the Ozone Transport Region are already

implementing stringent and costly measures to reduce

their own emissions, including cleaner fuels, tough automobile inspection programs, and stringent stationery

source emissions reductions, at a great expense to the

economy in the Northeast;

Whereas continuing ozone noncompliance through additional

NOX emissions and ozone as a result of these rules raises

the possibility of additional pollution-control costs and

economic sanctions that will stifle development and
3

•HJ 178 IH

threaten the economic well-being of residents and businesses in the Ozone Transport Region;

Whereas measures to mitigate the increased release of NOX

and ozone should be promulgated in conjunction with the

deregulation of the electric utility industry;

Whereas it is less costly to the economy as a whole to address

NOX and ozone mitigation at the source of the emissions

rather than impose additional regulation on people of the

Northeast;

Whereas even with environmental mitigation at the source,

there remains the potential for an enormous economic

benefit through increased electric competition because of

these rules;

Whereas on February 8, 1996, 20 Members of Congress

wrote to the Chairman of the Federal Energy Regulatory

Commission, urging the Commission to support mitigation strategies that address the potential environmental

impacts of energy deregulation;

Whereas on February 13, 1996, the Ozone Transport Commission called on the Federal Energy Regulatory Commission to work with the Environmental Protection Agency and the States to ensure equitable environmental requirements and to mitigate comprehensively and concurrently any adverse impacts on ground level ozone associated with the implementation of the open access rule and

related actions;

Whereas on February 20, 1996, the Environmental Protection Agency formally stated that this rule should be

adopted only if the Federal Energy Regulatory Commission makes an appropriate commitment to mitigation of
4

•HJ 178 IH

potential environmental harm as part of the final rules;

and

Whereas the Federal Energy Regulatory Commission’s Orders Nos. 888 and 889, as issued, do not include appropriate mitigation measures as requested by Members of

Congress, and the Environmental Protection Agency, and

the Ozone Transport Commission: Now, therefore, be it

1 Resolved by the Senate and House of Representatives

2 of the United States of America in Congress assembled,

3 That Congress disapproves the rules submitted by the

4 Federal Energy Regulatory Commission relating to the

5 promotion of wholesale competition through open access

6 nondiscriminatory transmission services by public utilities,

7 and recovery of stranded costs by public utilities and

8 transmitting utilities, and such rule shall have no force

9 or effect.

Æ