Energy and July 29 Telecommunications 2019 Interim Committee
Draft To plan its work and establish goals, the ETIC starts the interim by mapping out its priorities. The work plan can provide an outline of what Work the ETIC will work on throughout the interim and how much effort will Plan for be placed on each subject. It should provide guidance to the committee 2019-20 over the next 15 months and serve as a blueprint for the interim. Interim
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Contents Introduction ...... 1 Committee Procedures and Public Participation ...... 1 Members and Staff ...... 2 How the ETIC Plans its Work ...... 2 Potential Work Plan Topics...... 4 Study Resolutions assigned to the ETIC by the Legislature ...... 4 1. House Joint Resolution No. 12: Study the State’s Ability to Defend Transmission Infrastructure ...... 4 Additional Topics for ETIC Study ...... 6 1. Review of the Public Service Commission ...... 6 2. Study of Energy Storage systems ...... 7 3. Programmatic Review ...... 8 ETIC Statutory Duties and Obligations ...... 10 Statutory Duties and Obligations ...... 10 ETIC Educational Publications ...... 13 Draft 2019-2020 Work Plan Timeline ...... 16
Introduction
This is the work plan for the Energy and Telecommunications Interim Committee (ETIC) for the 2019-2020 interim. Included you will find:
∙ A description of work plan topics and plans to address those topics. ∙ A work plan timeline and calendar.
Committee Procedures and Public Participation
The ETIC will operate under the Rules, Procedures, and Guidelines for Interim Committees adopted by the Legislative Council. As required by law, 10 day advance public notice will be given for all meetings and the public will be given an opportunity to comment on any matter that is within the jurisdiction of the committee. The Presiding Officer may establish time limits for public comments, if necessary. Interested persons may be added to the mailing list by visiting the ETIC website. By visiting the website, interested persons may sign up for electronic meeting notifications. Agendas, memos, links and other information can be found on the ETIC website: www.leg.mt.gov/etic.
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Members and Staff
Committee Members Phone Email Rep. Laurie Bishop 406-223-1122 [email protected] Rep. Denise Hayman 406-587-7229 [email protected] Rep. Christopher Pope 406-581-8739 [email protected] Rep. Derek Skees 406-212-5493 [email protected] Rep. Brad Tschida 406-546-4349 [email protected] Rep. Daniel Zolnikov 406-861-5210 [email protected] Sen. Janet Ellis 406-431-0385 [email protected] Sen. Mary McNally 406-671-1376 [email protected] Sen. Keith Regier 406-756-6141 [email protected] Sen. Tom Richmond 406-208-5588 [email protected] Staff Phone Email Trevor Graff 406-444-4975 [email protected] Jameson Walker 406-444-3722 [email protected] Nadine Spencer 406-444-3838 [email protected]
How the ETIC Plans its Work
During the legislative interim, the ETIC typically focuses on the study topics it has been assigned while maintaining oversight of programs and rulemaking activities of the Public Service Commission. It also may address issues and improve law as it deems to be in the best interest of the state.
The Legislative Council assigned the Committee one study in the form of joint study resolutions ranked by legislators. The Committee was assigned House Joint Resolution No.
In May and June, staff also visited with ETIC members about potential topics for discussion.
The ETIC establishes its work plan at the beginning of the interim. The primary constraint limiting the study agenda for the interim is the number of issues that can be effectively addressed within the available time and resources of the committee members and its staff.
This 2019-2020 Work Plan sets priorities and outlines how and where the ETIC will spend its limited time and resources. The work plan sets out a strategy for fulfilling the ETIC's responsibilities throughout the 2019-2020 interim.
The work plan is a blueprint for the interim. Timetables for each major study are included in the work plan calendar. The ETIC Work Plan Decision Matrix, a separate document, is a way to look at topics side by side and review time allocations to each topic.
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Potential Work Plan Topics
Study Resolutions assigned to the ETIC by the Legislature
1. House Joint Resolution No. 12: Study the State’s Ability to Defend Transmission Infrastructure
Legislative Poll Ranking: #2
Background: During the 2019 session, the House Energy, Telecommunications and Federal Relations committee worked to amend House Joint Resolution No. 12 along with Rep. Joe Read. The study will review the ability of the state’s transmission system to withstand threats such as electromagnetic pulses, terrorism, and wildfires. The study would also asses the current condition of the state’s transmission system, evaluate new technologies and their potential effect on grid reliability, and assess the cost of maintenance and upgrades to the system. The ETIC will rely on industry experts and the Public Service Commission to gather data and analyze the system, the ETIC may develop recommendations.
Option A Option B Option C Option D
.6 FTE .4 FTE .2 FTE No Action
° Engage utilities and ° Panel discussions on ° Review grid electric cooperative in the state of the grid reliability initiatives in analysis and information including utilities, other states gathering technology ° Review wildfire ° Panel discussions on developers, and liability law in other the state of the grid including utilities, regulators states technology developers, ° Review grid and regulators reliability initiatives in Deliverables: ° Review estimated cost other states ° White Papers of technological ° Review wildfire upgrades liability law in other ° Analyze current grid states capacity issues ° Review grid reliability Deliverables: initiatives in other states ° Review wildfire liability ° Interim Report law in other states ° White Papers ° Legislation Deliverables: ° Interim Report ° White Papers ° Legislation
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Additional Topics for ETIC Study
1. Review of the Public Service Commission
Background: This study will review several aspects of the PSC, including the election of commissioners, structure of the commission, and the commissions role and function in utility regulation in the state. It will identify potential improvements to the state’s regulatory scheme and examine other states’ approach to public utilities commissions, as outlined by the ETIC.
Option A Option B Option C Option D
.4 FTE .3 FTE .2 FTE No Action
° Review other states ° Review other states ° Review other states utility regulatory utility regulatory utility regulatory structures structures structures ° Review the election ° Review the election of commissioners and of commissioners and Deliverables: districting districting ° White Papers ° Review the role of ° Analyze PSC staffing the commission in and budgets relation to the Montana Consumer Deliverables: Counsel and ° Interim Report Legislature ° White Papers ° Analyze PSC staffing ° Legislation and budgets
Deliverables: ° Interim Report ° White Papers ° Legislation
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2. Study of Energy Storage systems
Background: This study will analysis the use of energy storage technology for grid firming in the State of Montana. The study will review the potential for energy storage deployment in the state, new technology and the activity of other states’ policy makers in regard to energy storage.
Option A Option B Option C Option D
.1 FTE .09-.05 .05 FTE No Action
° Review other states ° Review other states ° Review other states energy storage energy storage energy storage policies policies policies ° Conduct stakeholder ° Review current panel including technology Deliverables: developers and ° White Paper utilities Deliverables: ° Review current ° White Papers technology
Deliverables: ° Interim Report ° White Papers ° Legislation
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3. Programmatic Review
Authority: 5-5-230, MCA. ETIC oversight
Background: Interim committees are tasked with evaluating various programs, and the options below allow the ETIC to formalize that process. The ETIC’s statutory duties allow for an in-depth overview of programs, including laws, rules, budget, and on the ground implementation. Because the ETIC oversees one agency, the committee has an opportunity to focus more specifically on a particular subject that the PSC administers. An overview of those subjects is attached, and ETIC members would need to select a subject from the list for the programmatic review and then select a level of review.
Option A Option B Option C Option D
.2 - Available FTE ° .06 - .2 FTE .02 - .06 FTE No Action ° Option B ° Option C ° Staff summary of ° Multiple staff reports ° History and program on subject °Multiple overview of applicable ° Agency presentation agency presentations statutes ° Staff ° Bibliography of °In-depth review of interviews with related materials subject program personnel including audits or °Possible °Staff summaries of fiscal analysis, subcommittee effort related audit and including court cases fiscal work and any ° Regulated Deliverables: court decisions community panel ° White paper °Additional staff Deliverables: ° Legislation research ° Summary with °Legal review of potential specific subjects recommendations °Multiple regulated ° Legislation community panels
Deliverables: ° Staff report ° Legislation
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ETIC Statutory Duties and Obligations Statutory Duties and Obligations
The ETIC draws its statutory responsibilities from six sources:
I. Source/authority: 5-5-215, MCA. General duties of all interim committees. 5-5-230, MCA. ETIC oversight
"The Energy and Telecommunications Interim Committee has administrative rule review, draft legislation review, program evaluation, and monitoring functions for the department of Public Service regulation and the Public Service Commission."
As applied to the ETIC, statutes require the committee to: 1. Conduct interim studies as assigned. The committee may recommend to the Legislative Council that a study be assigned to another committee or not be conducted. 2. Review administrative rules of the Department of Public Service Regulation (DPSR) and the Public Service Commission (PSC). 3. Review legislation proposed by DPSR or the PSC. Bills requested by an individual member of the Legislature are not subject to this requirement. 4. Complete additional statutory duties including reviewing and revising the state energy policy, reviewing universal system benefits programs, receiving an update on hydroelectric power development, receiving a report on the use of renewable energy credits in Montana, receiving a report on geothermal activities in Montana, and receiving a report on high-performance buildings. 5. Monitor the operation of the DPSR and PSC with specific attention to the following: a. identification of issues likely to require future legislative attention; b. opportunities to improve existing law through the analysis of problems; and c. experiences of Montana's citizens with the operation of the agency that may be amenable to improvement through legislative action. 6. (Committee driven): Prepare bills and resolutions that, in the Committee's opinion, the welfare of the state may require for presentation to the next regular session. 7. (Committee driven): Compile, analyze, and furnish information bearing upon the Committee's assignment and relevant to existing or prospective legislation that the Committee determines to be pertinent to the adequate completion of its work.
II. Source/authority: 90-4-1003, MCA.
Requires the ETIC to "review the state energy policy and, if determined necessary by the committee, discuss at future meetings issues to be included in a revised policy and recommend potential changes". In 2009, the Legislature passed and approved SB 290, which required the ETIC to review the state's energy policy in-depth and examine nine specific topics. The ETIC, at its first meeting of the interim, is also required to review the energy policy and determine if potential revisions should be discussed at future interim meetings.
III. Source/authority: 69-8-402, MCA.
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Requires the ETIC to "review the universal systems benefits programs, and, if necessary, submit recommendations regarding these programs."
Public utilities and cooperative utilities are required to submit an annual summary report of universal system benefits programs to the ETIC for review. The 2015 Legislature expanded this authority by adopting SB 312. The changes in statute require the ETIC to review large customer reports and compare that information to utility reports to address potential discrepancies in reporting.
IV. Source/authority: 90-3-1301, MCA.
Requires the Bureau of Mines and Geology, prior to each legislative session, to update the ETIC on geothermal research conducted by the Bureau and funding received by the Bureau for geothermal research.
V. Source/authority: 85-1-501, MCA.
Requires the Department of Natural Resources and Conservation, prior to the end of each interim, to update the ETIC on studies it has done to review the economic and environmental feasibility of constructing and operating small-scale hydroelectric power generating facilities on each of the water projects under its control.
VI. Source/authority: 17-7-214, MCA.
Requires the Department of Administration in conjunction with the university system to update the ETIC on the use of the high-performance building program. The report must include an overview of use of the voluntary program and actual or estimated savings.
V. Source/authority: House Bill No. 61, 2017.
Requires the Department of Administration to report on the award and disbursement of next-generation 9-1-1 grants. The grants are intended to 9-1-1 infrastructure improvements.
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Statutory Duties and Obligations
0.25 FTE 0.002 FTE Review State ° In-depth review of energy policy ° Review existing energy policy Energy Policy and discussion of changes to policy as required by statute. Provide ° Involve public and agencies in for public input on policy reviewing specific aspects of existing energy policy or additional Deliverables: policy areas ° Summary of public comment ° Explore energy export markets received and of ETIC discussion
Deliverables: ° Report discussing specific aspects reviewed by committee °Potential legislation 0.03 FTE 0.02 FTE Review ° Staff provides ETIC copies of ° Staff provides ETIC copies of Administrative notices for the adoption of rules on notices for the adoption of rules Rules all ETIC subjects (Members to on certain ETIC subjects inform staff or Chair if they want (Members to inform staff or more information) Chair if they want more ° Committee requests that it be information) copied on notification letters that ° Committee requests that it be the DPSR and/or PSC is sending to copied on notification letters legislators who were primary that the DPSR and/or PSC is sponsors of laws that the agency is sending to legislators who were now promulgating rules for primary sponsors of laws that ° Committee attorney monitors and the agency is now promulgating provides synopses of rules or rules for subjects 0.005 FTE Review Agency ° Committee reviews proposals from Legislation the DSPR and/or PSC and decides if staff should draft legislation for preintroduction 0.05 FTE 0.03 FTE Monitor PSC ° Monitor or investigate aspects of ° Monitor or investigate aspects Activities PSC programs of a program, if and when ETIC chooses . 1 FTE 0.03 FTE Review Utility USB ° All of Option B ° Committee reviews utility Reports ° Analysis of USB program ° Analysis of reports and decides if any large customer reports comments on compliance are ° Panel discussions needed and if staff should assist ° Collect public comment Deliverables: ° Potential legislation Deliverables: ° Final report with alternatives and °Potential legislation recommendations 12 | Page
Statutory Duties and Obligations
0.002 FTE Review Geothermal ° Committee reviews Bureau of Research Mines and Geology reports and decides if any comments are needed and if staff should assist 0.002 FTE Review ° Committee reviews DNRC reports Hydroelectric related to hydroelectric potential at Projects state-owned facilities Review High- 0.002 FTE Performance ° Committee reviews DOA reports Building Program related to the use of the high- performance building program 0.002 FTE Use of 9-1-1 Money ° Committee receives report from for next-generation DOA on efforts to distribute grants grants for next-generation 9-1-1 infrastructure
ETIC Educational Publications
Background: The Environmental Quality Council has historically produced objective, nonpartisan, educational publications related to energy issues in Montana. These educational publications are well regarded and are regularly requested by the general public, legislators, state and federal agencies, other states, and industry and conservation groups. While the EQC in the past has developed these educational tools, the ETIC may choose, as it did during the last four interims, to oversee updates to the following document:
☆ A Citizen's Guide to Montana Energy Law (produced 2002; updated 2014)
Explanation: This handbook was originally produced by the EQC during the 2001- 03 interim. The EQC felt that given the magnitude of the issues surrounding electricity and especially electricity deregulation in the state, that an educational publication was needed to help Montanans sort out the morass of laws that deal with electricity. With the passage of a new energy policy for Montana and the enactment of changes to permitting requirements related to energy generation and transmission line siting in Montana in 2011, this publication was substantially rewritten and reorganized in 2012. It was updated in 2016.
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Option A Option B
.05 - FTE .02 FTE ° Overhaul and complete update of The ° Minimal update of The Citizens Guide Citizens Guide ° ETIC Reviews and Approves updates ° ETIC reviews and approves updates
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Draft 2019-2020 Work Plan Timeline
This draft timeline provides a framework so the ETIC can complete its work on time. It is subject to final approval by the ETIC.
July 29, 2019 ETIC Meeting. Helena
September 23-24, 2019 ETIC Meeting. Helena
January 13-14, 2020 ETIC Meeting. Helena
March 23-24, 2020 ETIC Meeting. Helena
May 21-22, 2020 ETIC Meeting. Potential Travel
July 15-16, 2020 ETIC Meeting. Potential Travel
September 8, 2020 ETIC Meeting. Helena
Committee interim work must be completed September 15, 2020.
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2019-20 Draft Energy and Telecommunications Interim Committee Work Plan Decision Matrix Topic Why is Option A Option B Option C Option D Resources this a Allocated topic? The following studies were assigned to the ETIC by Legislative Council.
Study the HJ 12 .6 FTE .4 FTE .2 FTE No Action State’s Ability to Defend ° Engage utilities ° Panel discussions ° Review grid Transmission and electric on the state of the reliability Infrastructure cooperative in grid including initiatives in other analysis and utilities, technology states information gathering developers, and ° Review wildfire ° Panel discussions regulators liability law in on the state of the ° Review grid other states grid including reliability initiatives in utilities, technology other states Deliverables: developers, and ° Review wildfire ° White Papers regulators liability law in other ° Review estimated states cost of technological
upgrades ° Analyze current Deliverables: grid capacity issues ° Interim Report ° Review grid ° White Papers reliability initiatives ° Legislation in other states ° Review wildfire liability law in other states
Deliverables: ° Interim Report ° White Papers ° Legislation
The following are the ETIC’s statutory duties
Review state Statute 0.25 FTE 0.002 FTE energy policy ° Review existing ° In-depth review of energy policy as energy policy and required by discussion of change statute. Provide ° Involve public and for public input on agencies in review policy
° Explore energy Deliverables: export markets ° Summary of Deliverables: public comment ° Report received and of °Potential legislation ETIC discussion
Review Statute 0.03 FTE 0.02 FTE administrative ° Staff provides ETIC ° Staff provides rules copies of notices for ETIC copies of the adoption of rules notices for the on all ETIC subjects adoption of rules (Members to inform on certain ETIC staff or Chair if they subjects want more (Members to information) inform staff or ° Committee Chair if they want requests it be copied more information) on notification letters ° Committee that the DPSR and/or requests that it PSC is sending to be copied on legislators who were notification letters primary sponsors of that the DPSR laws that the agency and/or PSC is is now promulgating sending to rules for legislators who ° Committee attorney were primary monitors and sponsors of laws provides synopses of that the agency is rules or subjects now promulgating rules for Review agency Statute 0.005 FTE legislation ° Committee reviews proposals from the DSPR and/or PSC and decides if staff should draft legislation for preintroduction
2019-20 Draft Energy and Telecommunications Interim Committee Work Plan Decision Matrix Topic Why is Option A Option B Option C Option D Resources this a Allocated topic? Monitor PSC Statute 0.05 FTE 0.03 FTE activities ° Monitor or ° Monitor or investigate investigate aspects of aspects of PSC a program, if and programs when ETIC chooses Statute 0.03 FTE Review utility . 1 FTE USB reports ° All of Option B. ° Committee reviews ° Analysis of USB utility reports and program decides if any ° Analysis of large comments on customer reports compliance are ° Panel needed and if staff discussions should assist ° Collect public Deliverables: comment ° Potential legislation Deliverables: ° Final report with °Potential legislation alternatives and recommendations Statute 0.002 FTE Review ° Committee reviews geothermal Bureau of Mines and research Geology reports and determines if comments are needed or if staff should assist Statute 0.002 FTE Review ° Committee reviews Hydroelelctric Projects DNRC reports and determines if comments are needed or if staff should assist Statute 0.002 FTE Review High- ° Committee reviews Performance Building DOA reports related to the use of high- Program performance buildings Statute Review 9-1-1 0.002 FTE next- ° Committee receives generation report from DOA on grants distribution of grants for next-generation 9-1-1 infrastructure
The following topics are optional, and it is up to ETIC committee members whether to pursue them as studies or as potential agenda items. Member .4 FTE .3 FTE .2 FTE No Action Review of the topic Public Service Commission ° Review other ° Review other states ° Review other states utility utility regulatory states utility regulatory structures regulatory structures ° Review the election structures ° Review the of commissioners and election of districting Deliverables: commissioners ° Analyze PSC ° White Papers and districting staffing and budgets ° Review the role of the Deliverables: commission in ° Interim Report relation to the ° White Papers Montana ° Legislation Consumer Counsel and Legislature ° Analyze PSC staffing and budgets
Deliverables: ° Interim Report ° White Papers ° Legislation
Member .1 FTE .09-.05 .05 FTE No Action Study of topic Energy
2019-20 Draft Energy and Telecommunications Interim Committee Work Plan Decision Matrix Topic Why is Option A Option B Option C Option D Resources this a Allocated topic? Storage ° Review other ° Review other states ° Review other systems states energy energy storage states energy storage policies policies storage policies ° Conduct ° Review current stakeholder technology Deliverables: panel including ° White Paper developers and Deliverables: utilities ° White Papers ° Review current technology
Deliverables: ° Interim Report ° White Papers ° Legislation
Programmatic Expanded .2-Avail FTE .06-.2 FTE .02-.06 FTE Review Duties ° Option B ° Option C ° (See attached ° Multiple staff ° History and document) reports on overview of ° Staff summary subject applicable statutes of program °Multiple ° Staff interviews ° Agency agency with program presentation presentations personnel ° Bibliography of °In-depth °Staff summaries of related materials review of related audit and including audits subject fiscal work and any or fiscal analysis, °Possible court decisions including court subcommittee °Additional staff cases effort research ° Regulated °Legal review of community panel Deliverables: specific subjects ° White paper °Multiple regulated Deliverables: ° Legislation community panels ° Summary with potential Deliverables: recommendations ° Staff report ° Legislation ° Legislation
1 FTE Total Resources Available
FTE Available to ETIC .05 FTE = 144 hrs = 18 days A member may request the committee learn .10 FTE = 288 hrs = 36 days about an issue as an agenda item as opposed to incorporating into the work plan. Additional .25 FTE = 720 hrs = 90 days topics also may be requested as agenda items .50 FTE = 1440 hrs = 180 days that do not need to be incorporated into the .75 FTE = 2160 hrs = 270 days work plan. 1 Interim FTE = 16.5 months = 2880 hrs