-----Original Message-----
From: Holt, Rob [mailto:Rob.Holt@nreca.coop]
Sent: Friday, November 18, 2011 10:21 AM
To: Holt, Rob
Subject: Glenn English - A Few Things (November 18)

MEMORANDUM

November 18, 2011

TO:      Statewide Managers
G&T Managers
NRECA Board of Directors

FROM:            Glenn English, Chief Executive Officer

A few things I wanted to share with you...

We crossed the finish line on one of the top electric cooperative
legislative initiatives for 2011!  The FY12
Agriculture-Transportation-Commerce appropriations mini-bus package sent to
the President's desk includes all of the Rural Utilities Service (RUS)
provisions we sought in the Agriculture appropriations debate.  The Senate
voted 70-30 to accept the conference committee's report and the House passed
the measure on 298-121 vote (roll call tallies enclosed).  All of our
provisions remained intact throughout conference negotiations that concluded
with a surprising decision by the conference leaders that there was no need
for a second meeting.  All but one of 38 House-Senate conferees signed off
on the package.  However, a large group of House Republicans still voted
against the bill because they wanted more spending cuts.

Along with the $6.6 billion in RUS electric loan levels, the bill includes
the Senate provision for $424 million in Guaranteed Underwriter loans.  We
won Senate language that would allow RUS to provide loans for fossil-based
generation with carbon capture and sequestration.  We also worked with key
lawmakers to stop a Senate amendment to cut Rural Development funding by $1
billion, which would have hobbled programs important to electric co-ops.
The Agriculture mini-bus, which contained the three least controversial of
the 12 appropriations bills, also contains a third FY12 continuing
resolution to fund federal operations until December 16, 2011.

Wheels May Come Off Second Mini-Bus, Energy-Water Bill May Move Separately

Electric co-ops have important provisions in play as the Senate works on a
second mini-bus package with the Energy and Water Development (H.R. 2354),
Financial Services and State and Foreign Operations bills.  While it once
looked as though the package would go to the Senate floor before the
week-long Thanksgiving break, it has stalled amid procedural and policy
battles that may unravel the bill.  The Energy and Water section of the bill
is in a "time out" and it is unclear when the Senate will return to it,
either as a stand-alone measure or part of another mini-bus as they work to
complete the FY12 appropriations.

The Energy and Water section includes the Power Marketing Administrations
and we are pushing hard to deter any potential proposals to cut their
funding.  We are also supporting an amendment by Sens. John Barrasso (R-WY)
and Dean Heller (R-NV) to ban the Army Corps of Engineers from finalizing
proposed "guidance" on waters that would require Clean Water Act permits.
We could see an amendment by Sen. Lisa Murkowski (R-AK) to delete language
in the current bill that would amend the Public Utility Regulatory Policies
Act to allow states to establish "feed-in tariffs" for qualifying renewable
facilities.  Since NRECA has serious concerns about the impact of feed-in
tariffs on consumer rates, we would support such an amendment.

Super Committee in Final Days of Negotiations on Deficit Reduction
Recommendation

The deficit reduction super committee is in the "hours to go" phase of
negotiations, Co-Chairwoman Sen. Patty Murray (D-WA) says.  Only five days
before its November 23 deadline to make a decision on recommendations to
Congress to achieve least $1.2 trillion in budget savings, the panel is
still struggling to agree on the thorny issues of raising taxes to increase
revenues and entitlement spending cuts.  The super committee will attempt to
do a markup session on a package of recommendations early next week.

Super committee members acknowledged the panel may not deliver a
comprehensive plan next Wednesday.  Co-Chairman Rep.  Rep. Jeb Hensarling
(R-TX) said they are considering a recommendation for a "two-step process."
Under that plan, the super committee would send the House Ways and Means and
Senate Finance committees, the panels with jurisdiction on tax issues, a set
of principles and "goals" for developing legislation.  Those committees
would be asked to draft legislation by certain dates, which may be as late
as next spring.  Similar recommendations may also go to congressional
standing committees with jurisdiction on entitlement programs like Medicare
and Medicaid.

REINS Act Cleared for House Floor Debate, Vote Possible this Month

The House Rules Committee voted 7-3 to report the "Regulations from the
Executive in Need of Scrutiny" (REINS) Act (H.R. 10) for floor debate, but
will review it one more time to clear a procedural hurdle.  House Majority
Leader Eric Cantor (R-VA) said he expects a floor vote this month on the
bill that would require federal agencies, including the Environmental
Protection Agency (EPA), get congressional approval before implementing a
major rule that would have economic impact of $100 million or more.  While
this bill will likely pass in the House, where it has wide support of the
Republican majority, it is unlikely to pass in the Senate.  Senate Majority
Leader Harry Reid (D-NV) specifically criticized H.R. 10 during floor
statements, saying it is part of a coordinated Republican attack on the
regulatory process.

Supreme Court to Review Challenges to Federal Health Care Reform Law

The U.S. Supreme Court agreed to review an 11th Circuit Court of Appeals
decision that the 2010 federal health care reform law is unconstitutional.
The justices will hear the case in March 2012, setting up a decision next
June that will likely influence the presidential elections.  A key question
is whether the courts can rule on challenges to provisions that have not yet
come into effect.  Those provisions include a mandate for all individuals to
purchase health insurance or pay a penalty starting in 2014, and a 40
percent excise tax on so-called "high cost" health plans starting in 2018,
which would impact many electric co-op employer-provided plans.

Enclosures: (2)   Senate and House final roll calls on H.R. 2112.

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