[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.J. Res. 178 Introduced in House (IH)]







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;
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 (NO<INF>X), carbon dioxide, particulates, 
        and other pollutants;
Whereas the benefits of interregional competition among electric utilities 
        promise to be shared nationally, but the NO<INF>X 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 NO<INF>X 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 threaten the economic well-being of residents and 
        businesses in the Ozone Transport Region;
Whereas measures to mitigate the increased release of NO<INF>X 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 NO<INF>X 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 
        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
    Resolved by the Senate and House of Representatives of the United 
States of America in Congress assembled, That Congress disapproves the 
rules submitted by the Federal Energy Regulatory Commission relating to 
the promotion of wholesale competition through open access 
nondiscriminatory transmission services by public utilities, and 
recovery of stranded costs by public utilities and transmitting 
utilities, and such rule shall have no force or effect.
                                 <all>