[Congressional Record Volume 143, Number 156 (Saturday, November 8, 1997)]
[Extensions of Remarks]
[Page E2256]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


     INTRODUCTION OF THE ELECTRICITY CLEAN COMPETITION ACT OF 1997

                                 ______
                                 

                        HON. FRANK PALLONE, JR.

                             of new jersey

                    in the house of representatives

                        Friday, November 7, 1997

  Mr. PALLONE. Mr. Speaker, today, on behalf of myself, and my 
colleagues Mr. Campbell, Mr. Franks of New Jersey, Mr. Payne, other 
members of the New Jersey delegation, and Mr. Waxman, rise to offer 
legislation that all of us concerned about fair competition and the 
environment should support--the Electricity Clean Competition Act of 
1997. Our legislation is offered in recognition of the fact that 
environmental regulation is a competitive issue that must be addressed 
as the Congress considers the restructuring of the electricity 
industry.
  As many of my colleagues are aware, I have been skeptical that the 
Congress needs to take the lead in introducing the retail competition 
to the electricity industry. I have been an advocate for recognizing 
the unique role of States in ensuring the availability of this 
commodity to all our citizens in a manner that reflects the need for 
continued reliability of service, recovery of stranded costs, and 
continued consumer protection for residential customers.
  At the same time, I have been concerned that States might find it 
difficult to develop a framework that would protect other vital 
interests of the American public, including: preventing the exercise of 
market power; establishing a reciprocal regime prohibiting States from 
gaining competitive advantages resulting from uneven application of 
deregulation; and most importantly, preventing market distortion and 
air quality degradation due to inconsistent environmental regulation 
that resulted from past Federal decisions made under a different set of 
regulatory circumstances.
  As I have listened to the testimony presented before the House 
Subcommittee on Energy and Power, it appears that a number of 
principles are emerging that can form the basis for a consensus bill. 
While I am still uncertain as to the exact timing of mandated universal 
direct access by all consumers, I believe that a date certain might 
well be a useful backstop to the efforts of the States and to ensure 
that the benefits of competition reach all our citizens within a 
reasonable timeframe.
  However, I could not support restructuring legislation if it did not 
also: provide for reciprocity of access during the time preceding the 
implementation of universal access--ensuring that some suppliers could 
not retain captive customers under state regulation and compete for new 
customers in other jurisdictions; respect reasoned State decisions on 
utility recovery of investments in assets that become uneconomic in the 
new competitive environment; establish a regime favorable to the 
development of environmentally friendly, and competitive renewable 
technologies; and most importantly, address the need for comparable 
environmental standards applicable to all generating assets.
  It is of this last point that our legislation is directed. I think 
that it is time we recognized that when the Congress adopted the Clean 
Air Act Amendments of 1977, many old, dirty facilities that were 
expected to close down were granted exemptions to the strict air 
pollution control requirements that we applied to new facilities. Yet, 
20 years later these grandfathered facilities continue to operate and 
would, in the absence of our legislation, enjoy an even greater unfair 
competitive economic advantage over electricity generators that have 
installed state-of-the-art pollution control technologies or that 
generate electricity using cleaner fuels or renewable resources.
  In order to remedy this problem, the proposed legislation establishes 
national emissions caps and a credit trading system for nitrogen oxides 
[NOx] and sulfur fine particulates. The national generation performance 
standard that would apply to existing facilities would be based on 
Federal new source performance standards, ensuring that all generation 
facilities would have to meet the same environmental requirements. 
Trading in emission credits ensures the lowest possible compliance 
costs.
  Federal restructuring legislation represents the last, best chance to 
achieve the goals of the Clean Air Act and level the playing field for 
all competitors in the electric generation market. I hope that if 
Congress proceeds with consideration of restructuring proposals, my 
colleagues and I who support Electric Clean Competition Act of 1997 can 
work with the Commerce Committee to craft consensus legislation that 
will protect consumers, ensure a fair competitive environment and 
improve air quality.

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