PRESS RELEASE: House Committee on Resources
7/19/06
Resources Committee
passes
Endangered Species Compliance and Transparency Act
WASHINGTON - The House Resources
Committee today voted 17-10 to support the
Endangered Species Compliance and Transparency Act.
This bipartisan legislation, sponsored by Rep. Cathy
McMorris (R-Wash.), requires Power Marketing
Administrations to list direct and indirect cost
estimates associated with Endangered Species Act (ESA)
compliance.
"Today marks a victory for electricity ratepayers in
the Pacific Northwest," said McMorris. "This
bill is the first step in ensuring more transparency
for our energy consumers. Most people are unaware
that ESA related costs, such as salmon recovery,
contribute to higher energy prices. Our goal is to
foster better communication and collaboration so
consumers have better access and understanding of
information related to their energy rates."
"There is no more unpredictable regulatory cost to
western electricity ratepayers than ESA compliance,"
Resources Committee Chairman Richard W. Pombo (R-Calif.)
said. "Some folks may get their bill and say, 'A
quarter of my bill to ESA costs is too much.' Others
may say, 'It's not enough.' Either way, consumers
deserve to know where their money is going. I thank
Rep. McMorris for her steadfast leadership on this
issue."
In the Pacific Northwest, communities depend on dams
to provide low cost renewable power. Yet ESA costs
related to endangered salmon have risen considerably
over the last several years due to federal
court-mandates and other compliance programs. In
2004, one mandated spill cost the federal government
$75 million in lost hydropower generation in the
Pacific Northwest. Another spill this year helped
make the Bonneville Power Administration the federal
agency with the highest ESA compliance costs in the
nation. These added costs are passed directly on to
the consumer, whether the fish efforts they fund are
cost-effective or not. According to the Washington
Post, a 2004 mandated summer spill amounted to
spending $3.85 million for each Chinook salmon it
saved.
The majority of consumers do not know the amount
they pay for salmon recovery. In a May 2005 poll,
Northwest River Partners found that more than 70
percent of ratepayers either do not know how much
they pay or believe that less than 5 percent of
their monthly bills go to salmon recovery in the
Northwest. In addition, the group found that "almost
six in ten (consumers) are not aware or do not
believe that they pay higher rates to protect
salmon."
The legislation has 21 co-sponsors and is supported
by the American Farm Bureau, National Rural Electric
Cooperative Association, American Public Power
Association, National Water Resources Association,
Family Farm Alliance, and National Endangered
Species Act Reform Coalition.
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