Sen. Reid: Feds Should Trump State Regulations in Building National Smart Grid

By Jeff St. John

When it comes to using billions of federal stimulus dollars to build out a “smart” electricity distribution grid, U.S. Senate Majority Leader Harry Reid doesn’t want state regulators standing in the way.

That’s the gist of comment the Nevada Democrat made at a Washington D.C. clean energy meeting Monday, according to Reuters. Reid plans to introduce energy legislation on Thursday to speed the building of transmission infrastructure to bring remote solar-thermal, wind and geothermal power sources to population centers — and the bill would, among other things, seek to give the federal government the authority to build new transmission lines whether or not states like it, he said.

While states will have a role to play in where transmission lines go, ”there may come a time when the federal government has to step in” to overrule their objections, Reid said at the National Clean Energy Project, an event hosted by the Center for American Progress. (The event was a who’s-who of energy and political big-wigs, including former President Bill Clinton and former Vice President and Nobel Peace Prize winner Al Gore, Energy Secretary Steven Chu, Texas oil billionaire and wind power and natural gas-fueled vehicle evangelist T. Boone Pickens, among others.)

Reid’s comments came the same day that Senator Jeff Bingaman said he wants to bring a separate energy bill to Congress in the next four to six weeks, one that would also deal with energy efficiency and incorporating renewable power into the nation’s electricity system. The New Mexico Democrat is chairman of the Senate Energy and Natural Resources Committee, which would take up Reid’s bill once it is introduced.

Whether Bingaman envisions the same federal powers on siting transmission lines as Reid’s comments appeared to call for wasn’t clear, though Bingaman did say that he wants to give the Federal Energy Regulatory Commission more authority to modernize the nation’s power grid, according to Reuters.

Given that the stimulus package signed into law by President Barack Obama last week contains $11 billion to upgrade power transmission and distribution infrastructure — and $4.5 billion in matching grants to be given out to smart grid-related projects — it might not be surprising to see lawmakers and policy chiefs looking to assert more control over state utility regulators as to where transmission lines go.

Energy Secretary Steven Chu said last week that he intends to push for federally funded smart grid efforts to adhere to standard technologies to avoid today’s efforts from lapsing into obsolescence in the years to come. (It’s likely that the National Institute for Standards and Technology, which received $10 million in the stimulus bill to develop a smart grid interoperabilty framework, will play a role in defining those standards).

The lobbying over grabbing a portion of the stimulus package’s smart grid funding is already underway, with utilities like Pepco (POM) and Pacific Gas & Electric (PCG) and companies like IBM and Cisco Systems (CSCO) seeking to position their smart grid projects for a piece of the funding,

Bloomberg

reported Monday.

Comments

[Paul Killinger:]

The Congress knows very well how to usurp the rights of the states. It's a game they play called unfunded federal mandates. We'll find out how they plan to go about pulling off this one shortly.

Feb 24 09:55 AM

[Paul Killinger:]

The fact that Sen. Reid is behind this makes it suspicious automatically. After all, he's the gentleman who stuffed money into the stimulus bill in conference (without the benefit of even a single public hearing) to build a rail line from L.A. to Vegas. It's hard to conceive of a bigger waste of taxpayer money. Harry obviously never heard of the Wright Brothers.

Feb 24 10:04 AM

[MarvinMBA:]

The state of California and the California Public Utility Commission seems to have police power over any and all projects where the Utility companies get there way regardless of public opinion. Now if the Federal Government going to override the Public Utility Commissions we will have another layer of power where public interest is going to be dammed.

Feb 24 10:16 AM

[smlcap:]

I agree 100% with Reid.
In fact, I was beginning to wonder why the federal government was not taking precautions to prevent the states from slowing the process of the smart grid. Individual state regulations, requirements, and state politicians personal interests would without a doubt impede the progress of the smart grid. Considering federal government and tax payer contribution and support, individual states should not be allowed to impede progress of projects such as the smart grid which are so vital to the national interest.
My hat's off to Harry!

Feb 24 11:33 AM

[jksisco:]

Just another 'power' play by the Fed's to consolidate and centralize decision making, usurping State's Rights. Why the rush, did we just discover that we have an electrical grid that lacks capacity? No, this is an attempt to stuff technology down our throats that we probably don't really need (smart home meters). If I told you all to jump off a bridge would you do it?

Feb 24 03:46 PM

[Howard_T:]

OK, Senator Reid, I'll agree with your making the Federal Government the final authority in determining what is done with the power grid. There's one condition I would attache to my assent, however. That is, make the Federal Government the final decider is where to locate a nuclear waste storage facility. Gee, guess what! There's one being built right there in your state of Nevada, at Yucca Mountain. You've been accepting construction money from the government for years, while delaying putting the facility into operation. Harry, it's time to pay up. Open Yucca mountain, allow more nuclear power plants to come on line, and you can do whatever the hell you want with the power grid (except put a transmission line through my back yard). How about it, Harry?

Feb 24 04:13 PM