SENATE RESOLUTION No. 69

STATE OF NEW JERSEY

INTRODUCED OCTOBER 28, 1996

By Senators BENNETT and ADLER

A Senate Resolution urging the Governor to devise a plan of action to protect the State's air quality from the potential impact of an open electric power market that could result from the Federal Energy Regulatory Commission's Order No. 888.

Whereas, The Federal Energy Regulatory Commission has recently issued Order No. 888, which opens wholesale power sales to competition by requiring public utilities owning, controlling, or operating transmission lines to file non-discriminatory open access tariffs that offer other the same transmission service they provide themselves; and

Whereas, Order No. 888 will increase the amount of competition among electric suppliers, who will have greater access to the region's electric transmission system, and will result in increased production and availability of relatively less expensive power; and

Whereas, Much of this lower cost electricity is produced in states west of New Jersey, where air quality standards are not as stringent and where the pollution from power plants is significantly greater; and

Whereas, The Governor has recognized that the Federal Energy Regulatory Commission order could lead to massive increases in the amounts of pollution being transported to New Jersey, thereby jeopardizing New Jersey's efforts to comply with the requirements of the federal Clean Air Act; and

Whereas, The Governor and other governors of northeastern states, as well as members of Congress, have recognized that the Commission's Order could have damaging environmental consequences; and

Whereas, The Legislature seeks direction in this matter of critical importance to the State's air quality and public health; now, therefore,

    Be It Resolved by the Senate of the State of New Jersey:

    1. The Governor of the State of New Jersey is urged to prepare and submit a report to the Legislature on such actions that the State can take to prevent, to the maximum extent practicable, increased pollution as a result of Federal Energy Regulatory Commission Order No. 888.

    2. The Governor is further urged to formulate an environmental quality assurance plan to protect the State's air quality from the potential impact of increased exposure to air pollutants that could occur as a result of an open and competitive wholesale electric supply market that operates without regard to air quality.

    3. A duly authorized copy of this resolution, signed by the President of the Senate and attested by the Secretary thereof, shall be transmitted to the Governor of the State of New Jersey.

STATEMENT

    This resolution urges the Governor of New Jersey to prepare and submit a report to the Legislature on actions that the State can take to prevent, to the maximum extent practicable, increased pollution as a result of Federal Energy Regulatory Commission Order No. 888. The resolution also urges the Governor to formulate an environmental quality assurance plan to protect the State's air quality from the potential impact of increased exposure to air pollutants that could occur as a result of an open and competitive wholesale electric supply market that operates without regard to air quality.

Urges Governor to prevent potential air pollution resulting from Federal Energy Regulatory Commission order.