Present:
Lincoln C. Almond, Governor of Rhode Island, Chairman
Jane Swift, Governor of Massachusetts, Vice Chairman
Howard Dean, M.D., Governor of Vermont
Angus S. King, Jr., Governor of Maine
Brenda Sisco, representing John G. Rowland, Governor of Connecticut
Jeanne Shaheen, Governor of New Hampshire
Opening Remarks:
The meeting was opened at 8:15 a.m. by Governor Lincoln C. Almond. In his
introductory remarks, Governor Almond noted that this year’s annual conference with
the Canadian Premiers will be held in Québec City August 25, 26, 27. He then reviewed,
briefly, the agenda items to be discussed at today's meeting.
New England - Canada Border: Trade & Security Issues
Governor Almond introduced Governor Jeanne Shaheen who discussed the matter
of trade and security at the New England - Canada border. Governor Shaheen noted
that trade is a significant part of New Hampshire’s economy, and is important to
each of the New England states. She also noted that Canada is the largest trading
partner with New England as it is with the entire United States. She recounted her
experiences in heading a trade mission to Canada last October (the first trade mission
in Canada post September 11). The almost complete shutdown of commerce across the border
during the first week following September 11 was of great concern to both American
and Canadian officials. At that time there was discussion about pushing out border
security to the point of origin and using new technology to secure the borders.
She reported that she had received a proposal from Commander Stephen Flynn of
the US Coast Guard, a Senior Fellow for National Security, Council on Foreign
Relations. Governor Shaheen noted that this morning’s (February 26th) edition
of USA Today, contains a comprehensive story on the issue of trade and border
security and outlines Commander Flynn’s proposal for a pilot project to select
certain companies for “away from the border” screening as a means of expediting
traffic at the international border. Governor Shaheen had assembled a working group
including representatives from Maine and Vermont, the New England Governors’ Conference,
the Coast Guard, US Customs, the US Attorney’s office and the US Marshall’s office.
Initial funding has been secured from the Technical Support Working Group within the
Department of Defense and a NH company.
Governor Shaheen indicated that she would report back on progress in the pilot project at
the next meeting of the Governors' Conference.
Regional Airport Security Issues
Governor Almond commented on the significant degree of cooperation exhibited
by transportation officials from the six states in recent years and then introduced
Governor Jane Swift to speak on the issue of Airport Security. Governor Swift noted
the deep responsibility that Massachusetts feels, since the events of September 11, to
assure the safety of individuals who travel to, from, or through the Commonwealth.
She described the task force, which she established shortly after 9-11 to examine where
airport security and operations could be refocused. She expressed her special thanks to
Governor King who, in what she described as the “spirit of cooperation of the New England
Governors Conference”, loaned the task force the services of a member of his cabinet. She
noted that one of the things that came out of the Task Force’s report, was the realization
that their efforts would not be complete without the cooperation of the other airports
throughout the region. She indicated that the Department of Transportation has selected
Logan Airport as one of the “pilot” airports to give it access to new high technology.
She introduced a proposal to have key public safety and airport officials from the region
come together and develop a plan. They would report their findings to the governors as to
how security can be coordinated and improved. It is her hope that by designing a truly
regional model, and sharing information and high technology and developing uniform
standards and practices, the states can do as effective a job in coordinating security
as they have done in marketing and redevelopment.
Governor Swift introduced a resolution calling for a meeting of key airport and public
safety officials to review current airport security measures and to develop a coordinated
security plan for the region’s airports. The resolution was adopted unanimously.
New England Defense Manufacturing Supply Chain
Governor Almond then introduced Governor Angus S. King, Jr. to speak on the
issue of the Defense Manufacturing Supply Chain. Governor King explained that in the
past ten or fifteen years there has been a peculiar up and down period in defense
procurement in the United States. He reported that there has been a loss of 100,000
defense manufacturers in recent years. With the recent upturn in defense procurement, many
of the region’s small manufacturers are not equipped to participate in the defense
procurement system. Each of the New England states has a Manufacturing Extension
Partnership (MEP), which he has found to be extremely valuable. These MEPs have
come up with a program which would involve the expenditure of $36 million in federal
funding ($2 million per state for a three year program) to coordinate between the
Department of Defense and the small manufacturers. Essentially this is a pilot program
which would rationalize the process that otherwise many small manufacturers cannot
participate in. He introduced a resolution asking the governors to support the proposal
and indicated his concern about the recent announcement that the whole MEP program would
be cut 90%. He stressed that this was the kind of program which such organizations
should perform for smaller manufacturers. Governor Shaheen voiced her agreement and
noted that in New Hampshire, small businesses provide most of the jobs. She suggested
that the resolution be amended to include support for restoration of MEP funding.
Governor Swift indicated her support but suggested the need for care when supporting
restoration of funding since each of the governors are currently reevaluating
priorities to reduce funding for valuable programs in their own state budgets.
The resolution, as amended, was adopted unanimously.
Energy Update
Governor Almond called on Mr. John Shea of the NEGC staff to update the governors
on energy issues in the region. He noted that the winter fuels situation in the region
is considerably better than it has been in recent years, due in some degree to an
exceptionally mild winter.
Mr. Shea spoke to the governors on several energy/environmental-related topics including
energy security, transmission issues, electricity markets, climate change, and winter fuels.
He noted that in October the NEGC conducted an Energy Security Forum which was attended
by staff members from the various governors’ offices, DOE and other federal offices, as
well as private sector representatives of the energy industry.
Mr. Shea pointed out the letter from US Secretary of Energy Abraham indicating his
interest in having DOE representatives meet with state emergency management officials
to discuss state responsibilities. He noted that NEGC has scheduled a Power Planning
Committee meeting on March 7th to accomplish this.
His review of the winter fuels situation in New England noted that stocks are high and
that prices have been stable and lower than they were a year ago. Nationally this has
been the warmest winter in many years. He indicated that the New England Governors'
conference, just last week, sent a letter to President Bush concerning LIHEAP funding.
He mentioned that a new proposal for a combined New York/New England RTO is being
discussed as a preferable alternative to the earlier FERC proposal to combine NY,
New England, and PJM into a single RTO.
He called the governors’ attention to ISO New England’s yearly assessment of the
region’s transmission system (2001 Regional Transmission Expansion Plan – RTEP01)
which noted severe transmission export constraints from Maine, southern Massachusetts,
and Rhode Island and import constraints in southwestern Connecticut, and in Greater Boston.
He reported on developments involving the natural gas pipelines including the gas
being imported from the Sable Island facility. A pipeline proposal from El Paso
would transport natural gas from Sable Island to New York City. He described as
probably the most ambitious project, the proposed underwater pipeline electric
transmission from Canada. He noted the possibilities of taking advantage of the fact
that Canada is a winter-peaking electric market with excessive overcapacity and New
England is a summer-peaking market.
Mr. Shea indicated that these topics are the subject of regular discussions by the members
of the Power Planning Committee, and will be the focus of the upcoming Forum on Energy
being sponsored by the Conference of New England Governors and Eastern Canadian Premiers
that will be held on May 13-15 in St. John, New Brunswick.
Governor Dean expressed his delight with the formation of a Northeast RTO and reminded
his fellow governors that last summer he was considering suing FERC over its directive
establishing a NE/NY/PJM RTO. He also requested that the staff investigate the Canadian
interest in, and the feasibility of developing a New England – Eastern Canada RTO, while
recognizing the bureaucratic obstacles that might be involved. He mentioned that while he
is pleased at the gas relationship that has been developed with Eastern Canada, he
cautioned against becoming overly dependent on natural gas as our main source of supply.
He recalled problems which arose during the winter of two years ago when there were
supply problems and actual gas shortages. He added, “Being overly dependent on gas
is not any better than being overly dependent on anything else.”
Governor Shaheen stressed the importance of providing attention to the problem of
demand when dealing with this issue. Governor Dean agreed and reported Vermont’s
attention to energy conservation has helped offset the state’s high energy costs.
He noted that Vermont has removed responsibility for promoting conservation from the
utilities.
Governor King spoke to the upcoming New England Governors and Eastern Canadian Premiers
Energy Forum in New Brunswick and indicated that he plans to attend, calling it one of
the most important things that the governors can do. He then cited a “frightening”
statement which was made during last year’s Conference of New England Governors and
Eastern Canadian Premiers that indicated that by 2008, New England would receive 75%
of its power from natural gas. He expressed his hope that the meeting in New Brunswick
can be a “kind of watershed discussion” of that dilemma. Right now gas is cheap and
available, but “if we allow that to happen, we have committed an offense against our
successors.” He indicated the necessity of discussing this problem and how to hedge it,
and called it “one of the most significant public policy issues facing the region.
Governor Dean recommended giving consideration to entering into long-term contracts,
such as for hydro power from Hydro Quebéc which is anxious to sell more of its hydro-electric
power. Governor King reported that there are biomass plants in Maine which are closing
because they cannot compete with gas prices. Such closures are effectively “kissing goodbye
a resource which would be available” in the event of natural gas supply shortages.
The issue needs discussion or else “we will just stand by and allow the market to get
to a 75% dependency on gas”. Governor Rowland and Governor Almond asked how the
information from the Forum would be provided to the governors and premiers. Mr. Tretter
replied that the results from the Forum would be presented at the 27th Conference of New
England Governors and Eastern Canadian Premiers in Québec City in August.
Governor Dean repeated his interest in having the staff investigate the feasibility
of creating a New England – Eastern Canada RTO unless there are constitutional problems
with such an approach.
The governors noted the number of new natural-gas plants that are scheduled to come
on line in the near future and indicated that while this means that some of the older,
less clean plants will be retired, there will be significant delays involved should it
become necessary to bring them back on line.
Governor King expressed his opinion that the region needs to express its support
for the Bush Administrations move towards the Yucca Mountain storage facility for
nuclear waste. Otherwise, he cautioned, the states run the risk of becoming the
“de facto” nuclear waste storage facilities. Governor Dean concurred and indicated
that any potential dangers which might be involved with the transportation of the waste
to the storage facility, were minimal when compared to the security problems involved
with having over 130 facilities throughout the nation. It was agreed that the governors
should request the full support of the New England Senatorial delegation for the
President’s program. Governor King indicated that the process is quite cumbersome
in that it goes to the governor of Nevada, who, if he vetoes the plan, the plan goes
back to Congress for ninety legislative days.
Governor Dean noted that there will be some argument about the transportation
of the waste to the storage facility but indicated that any such problems are
dwarfed by the security problems of maintaining the previously mentioned 130
individual sites.
Adjournment:
The meeting was adjourned at 9:00 am.
