DOE third-party partnership for Arkansas project raises eyebrows

Arkansas lawmakers, including U.S. Rep. Steve Womack (R), sent Secretary of Energy Ernest Moniz a letter earlier this week addressing concerns they have with a plan to use a third-party contractor to construct an electrical transmission project through the state.

The United States Department of Energy (DOE) is considering the application of Section 1222 of the Energy Policy Act of 2005, in order to enter into an unprecedented third-party partnership for an energy transmission project in Arkansas, Oklahoma and Tennessee. Throughout the entire history of electric transmission construction, transmission projects such as this have been reviewed and approved at the state level.

In their letter, U.S. Reps. Rick Crawford (R-AK), French Hill (R-AK) and Bruce Westerman (R-AK), along with U.S. Sens. John Boozman (R-AK) and Tom Cotton (R-AK), joined Womack in voicing their opposition to the use of Section 1222 in this context.

“We believe the Project does not meet the statutory requirements of Section 1222, and state-level reviews of many serious concerns are necessary,” the lawmakers wrote. “Therefore, in our federal lawmaking and oversight role, we oppose the use of Section 1222 in this context and we urge you to disapprove it.”

The lawmakers also demanded answers to a number of related questions and called on the DOE to provide legal justification for these actions.

“We recognize that in many contexts the development of new electric transmission infrastructure is necessary despite costs and adverse impacts,” the letter continued. “We are not taking a position on whether this Project or any other should move forward under non-federal authorities. Such decisions regarding electric transmissions are appropriately left to elected officials at the state and local level, where they have resided for generations. State and local officials can most effectively weigh the questions and concerns raised in this letter—and more importantly, concerns raised by our constituents—and determine whether such projects should be permitted.”

Before delving into a series of specific questions in regards to the use of Section 1222, the letter strongly urged the DOE to provide each state with the authority to review their transmission projects. The letter reminds the DOE that such authority is critical because it allows the state to consider and minimize the impact of a number of potential factors on a case-by-case basis.