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Aug. 22, 2003
The massive
power outage which hit a significant portion of our country and
part of
Canada
has elevated attention to the importance of a strong energy
infrastructure. Energy capacity and reliability are not mere terms
but are critical elements to economic development in our state and
impact virtually all aspects of our lives. (Please see below a
recap of the action taken by Governor Doyle and reaction from
others.)
We at Hamilton
Consulting have been remiss in not earlier introducing you to and publicly
thanking Megan Stoltz, the newest member of our group, who has been a major
contributor to
Political Tidbits
since June. Megan is a third year law student at the
University of Wisconsin
Law School who also serves on the Editorial Board of the Law School
magazine. A 1997 graduate of the University of Notre Dame, Megan had some
“real life experiences” after college and before entering law school two
years ago. The bad news (from our perspective) is that school starts soon.
The good news is, however, that Megan will continue to work with us on a
part- time basis throughout the school year with
Tidbits as one of her
priority projects.
Wisconsin
Politics
Doyle Issues
Executive Order on Energy
On Tuesday, August 19, Governor Doyle issued an
Executive Order to the Public Service Commission and
the Department of Natural Resources directing the officials to
streamline and coordinate their review and approval processes for
siting and constructing new transmission lines in Wisconsin. Doyle
announced his hope that timely decision making by the
state agencies will cause quicker improvements for the state’s
electric transmission system, and will protect Wisconsin from
power emergencies. The Executive Order was issued in the wake of
last week’s massive power outage in the Northeastern United States.
Several initiatives to revamp the power industry have begun and
will likely continue in
Wisconsin
and elsewhere in the Nation.
(See statements relating
to the Governor’s Executive Order from
Energy Lifeline, the
Public Service Commission, and
American Transmission Company.)
Joint Judiciary Hearing
Draws Big Crowd
On Thursday, August 21, the Senate Committee on Judiciary, Corrections, and
Privacy, and the Assembly Committee on Judiciary met for a joint hearing on
several bills including:
SB 195 and
AB 372, relating to live birth or the circumstance of being born alive
(“partial birth abortion”);
SB 224 and
AB 458, relating to zero tolerance for driving under the influence of
illegal drugs (the so called “Baby Luke” bill, see previous Tidbits); LRB
3114/1 and
AB 423, relating to liability for damages caused by dogs; LRB 3110/1 and
AB 456, changing the interest rate applicable to court actions (see
below for more on this bill); and
SB 233 and
AB 475, relating to marriage between one man and one woman (“anti-gay
marriage”). The controversy surrounding these bills, particularly partial
birth abortion and anti-gay marriage, created a standing room only
atmosphere at the hearing. The hearing, which began at 10 a.m., continued
without breaks until just after
9 p.m.,
with several people waiting more than eight hours to speak.
George Lawsuit Will
Receive No Further Delays
On Monday, August 18, Dane County Circuit Judge Maryann Sumi, the judge
overseeing Sen. Gary George’s lawsuit against the State Elections Board,
announced there would be no further delays in the lawsuit. The lawsuit has
been delayed twice, due to Sen. George’s invocation of a legislative
privilege that trial action would not continue in his absence because of
legislative duties requiring him to be at the Capitol.
Whitacre Will Take on
Sensenbrenner
Last week, Vince Whitacre (D-Waukesha),
announced his intention to run against current U.S. Representative Jim
Sensenbrenner (R-Milwaukee) in next year’s U.S. House election.
Policy Developments
Committee
Rejects Mercury Rule
On Wednesday, August 20, the Assembly Committee on Natural
Resources voted 9-2 to send DNR’s
mercury rule back to the Department. Reps. Spencer Black
(D-Madison) and Mark Miller (D-Monona) were the only Committee
members voting against the motion. The Senate Environment and
Natural Resources Committee is also expected to reject the rule.
The controversial
rule was adopted by the Natural Resources Board in June 2003 after
several years of advisory committee deliberations. The final DNR proposal
targets mercury emissions from “major utilities.” Four
Wisconsin
utilities trip the 100 lbs/year mercury emission threshold – Dairyland
Power, WE Energies, Wisconsin Public Service Corp., and Alliant Energy.
Under the rule, these utilities would have to meet reduction mandates of 40
percent by 2010 and 80 percent by 2015. The final rule and related documents
can be found on the
DNR web site.
Although several
Committee members expressed support for mercury reductions, the rule was
returned due to concern, expressed by some members, that targeting only four
in-state utilities was not the best solution to the state’s mercury problems
in light of significant contributions from other sources, including
out-of-state sources. The
motion specifies that unless the DNR accepts the rule back for
modification by August 22, which in effect stays legislative review
deadlines, the Committee will object to the rule on the grounds it is
“arbitrary and capricious and imposes an undue hardship.” Upon such an
objection by the Committee, the rule goes to the Joint Committee on Review
of Administrative Rules (JCRAR), which in turn can stay the rule upon
introduction of legislation. Generally, if the legislation fails to become
law by the end of the session (mid-2004), the rule is deemed approved.
The motion makes no
recommendation as to specific modifications, although Committee members have
expressed interest in an “off-ramp” if sources are subject to federal
mercury standards, replacing the 80 percent mandate for 2015 with an earlier
evaluation to discern the merits of further reductions (beyond the 40
percent initial mandate), and adding provisions to allow for banking and
trading of emission reductions. These changes were requested by industry at
the August 13 joint hearing by the above standing committees. (See
Wisconsin Utility Association and
Wisconsin Manufacturers & Commerce positions.)
Hearing for Bill
Changing Interest Rate for Court Judgments
On August 21, the Assembly and Senate Judiciary Committees heard testimony
relating to LRB 3114/1 and
AB 456, bills that would lower the current statutory interest rate
applicable to judgments received in a court action. Under current Wisconsin
law, a party in a lawsuit is entitled to interest on the amount of money
recovered in a judgment at the rate of 12 percent. AB 456 would maintain the
entitlement to interest. It would, however, lower the interest rate from 12
percent to no less than four percent. Proponents of this bill expressed
belief that lowering the interest rate would create a more “reasonable”
interest rate, while still providing incentive for early settlement
agreements. Additionally, it would maintain the incentive for paying a
judgment in a timely manner, as interest would continue to run until the
amount is paid. Opponents of the bill maintain that the current 12 percent
statutory interest rate (adopted in 1979) continues to be “reasonable,” and
encourages parties to settle lawsuits early on. (See hearing
testimony presented by attorney Mike Crooks on behalf of the
Civil Trial Council of Wisconsin, in favor of this bill.)
Legislator Will Request
Crack Down on Stray Voltage
State Rep. Barbara Gronemus (D-Whitehall) has announced her intention to
introduce a new bill requiring Wisconsin electric utilities to eliminate all
“objectionable flows” of current by 2012, or face fines up to $1 million.
The Representative’s announcement follows the Wisconsin Supreme Court
ruling earlier this summer affirming a judgment in favor Waupaca County
dairy farmers Allan and Beverly Hoffmann. The Hoffmanns claimed their herd
became sick from stray electrical current from underground the farm’s
location, which the they believed was caused by faulty wiring installed by
Wisconsin Electric Power Co. Although the court did not determine that the
current in fact came from Wisconsin Electric Power Company, it could not
rule out the possibility that it did.
Senate Job Creation
Committee Will Meet Again
On Tuesday, August 26, the Senate Select Committee on Job Creation will meet
to further discuss issues related to growing the state’s economy. Next
week’s hearing will focus on how to improve
Wisconsin’s
infrastructure; the Committee will hear testimony from invited speakers
only. (The hearing will take place at
10 a.m.
in room 411-S in the State Capitol.)
Federal Developments
Leavitt Selected
to Run EPA
On August 11, 2003, President Bush
announced his nomination of Utah Governor Michael O. Leavitt
(R) for the post of Environmental Protection Agency (EPA)
Administrator. Former EPA Administrator Christine Todd Whitman
resigned on June 27, 2003, after more than two years of service.
Between Whitman’s resignation and Leavitt’s upcoming confirmation,
Marianne Lamont Horinko continues to serve as acting Administrator
of the EPA.
Governors Send Medicare
Letter to Congress
On July 31, 2003, a
letter, signed by the governors of all 50 states, was sent to U.S. Rep.
William M. Thomas (R-California), Chair of the House Ways and Means
Committee, as an effort to show united support for the House and Senate
bills addressing prescription drug benefits under Medicare. In particular,
the governors support the House version of the bill that ensures seniors
will have continued coverage by federally financed Medicare, rather than
shifting poorer seniors to Medicaid, paid for with a combination of state
and federal funds.
Tire Makers Seek Safer
Tires
On August 20, the Rubber Manufacturers Association (RMA), a national
organization representing automobile tire manufacturers, including leading
tire manufacturers such as Michelin SCA and Goodyear Tire & Rubber Co.,
announced it would seek safer standards for tire pressure monitors. The
RMA will call on the National Highway Traffic Safety Administration (NHTSA)
to revamp its current standards relating to tire pressure monitors,
following an RMA
survey, released the same day, showing that safer manufacturing
standards could lessen the frequency with which automobile owners must check
their tire pressure.
Political News
Electrical grid needs upgrade now (opinion): Green Bay
Press-Gazette, Aug. 21, 2003.
Gas prices
rising in area; blackout, gas line break cited: Milwaukee Journal
Sentinel, Aug. 21, 2003.
Doyle power woes rise with temps: Oshkosh Northwestern, Aug. 21,
2003.
Who killed clean coal idea? Racine Journal Times, Aug. 21, 2003.
Doyle orders
quicker OK for power plants: Milwaukee Journal Sentinel, Aug. 20,
2003.
Utilities: Heat should not tax resources: Appleton Post-Crescent,
Aug. 20, 2003.
DNR rule to cut mercury rejected: Wisconsin State Journal, Aug. 21,
2003.
Panel balks at regulations for mercury: Appleton Post-Crescent, Aug.
21, 2003.
PCB cleanup plan draws mix of money, environmental concerns: Appleton
Post-Crescent, Aug. 20, 2003.
Peeping Tom bill signed into law: Madison Capital Times, Aug. 21,
2003.
Doyle
signs law banning sex with inmates: Milwaukee Journal Sentinel, Aug.
21, 2003.
Doyle
signs bill to help locate 911 cell calls: Milwaukee Journal
Sentinel, Aug. 19, 2003.
Open
records law signed last week 'highlighted' for media: Milwaukee
Journal Sentinel, Aug. 19, 2003.
Lawmaker to tackle stray voltage: Wisconsin State Journal, Aug. 18,
2003.
FirstEnergy Has Trail of Various Troubles: Milwaukee Journal
Sentinel, Aug. 18, 2003.
Deregulation Complicates Electric Grid: Milwaukee Journal Sentinel,
Aug. 18, 2003.
Don't leave Wisconsin in the dark (opinion): Wisconsin State
Journal, Aug. 17, 2003.
Upcoming Fundraisers
Saturday,
August 23, 2003:
Sunday, August 24, 2003:
Tuesday, August 26, 2003:
-
Milwaukee
County
Executive Scott Walker, 5:00 p.m., Milwaukee, Wis.
-
St. Rep. Dan Schooff
(D-Beloit), 5:30 p.m., Beloit, Wis.
Thursday, August 28,
2003:
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