On March 19, 2010, the United States Senate confirmed three nominees, George Apostolakis, William Magwood, and Bill Ostendorff, to the Nuclear Regulatory Commission (“NRC”) by unanimous consent instead of a roll-call vote. The three new commissioners will join sitting chairman Gregory Jaczko, a Democrat, and Republican Commissioner, Kristine Svinicki on the five-member agency.
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DOE, DOI, and Army Corps Sign MOU on Hydropower
March 29, 2010
The U.S. Department of Energy (DOE), Department of the Interior (DOI) through the Bureau of Reclamation (Reclamation), and Department of the Army (DOA) through the U.S. Army Corps of Engineers (USACE), announced on March 24, 2010 the signing of a Memorandum of Understanding (MOU) between the federal agencies to promote the development of hydropower. Pursuant to the MOU, studies will be conducted over the next few years that may help industry determine which Federal dams and reservoirs would be best suited for non-Federal hydropower development. The process will hopefully determine which sites will have the fewest roadblocks from stakeholders, including the federal dam owners themselves. These studies may also lead to a determination of which projects can be most efficiently integrated into the grid.
FERC Seeks Written Comments on their Draft National Action Plan on Demand Response
On March 11, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) released its Draft National Action Plan on Demand Response (“National Action Plan”). Written comments, which will aid FERC in finalizing the National Action Plan, are due Thursday April 8, 2010.
FERC Releases Civil Penalty Guidelines and Orders NERC to Alter Procedures for Developing Standards
On March 18, 2010, FERC adopted a Policy Statement on Penalty Guidelines for its enforcement program (“Policy Statement”), a Notice of Proposed Rule Making (“NOPR”), and a series of orders intended to address the reliability of the bulk power system.
EPA Scientists Call for Lower Fine Particulate Matter Standards
A draft report issued this month by the U.S. Environmental Protection Agency (“EPA”) calls for substantially tightening air quality standards for fine particulate matter. The report comes as EPA prepares to issue a draft proposal in November 2010 and a final rule in July 2011 for annual and 24-hour fine particulate matter standards.
FERC Grants Negotiated Rate Authority for Tres Amigas, Declines to Disclaim Jurisdiction on Interconnection with ERCOT
On March 18, 2010, FERC approved Tres Amigas LLC’s (“Tres Amigas”) request to sell transmission service at negotiated rates, with conditions on anchor customers and initial capacity offerings. In a separate order, FERC declined the petition to disclaim jurisdiction over the transmission facilities that will interconnect the Tres Amigas project with the Electric Reliability Council of Texas (“ERCOT”) transmission system in Texas.
Renewable Energy Transmission Costs Fuel Debate between Utilities
In July 2009, Senate Energy and Natural Resources Committee Chairman Jeff Bingaman, (D-NM), introduced a bill, the “American Clean Energy Leadership Act,” which would allocate costs for new transmission and bar FERC from assigning the cost of a transmission project to a region or “sub-region” unless FERC can prove the costs are “reasonably proportionate to measureable economic and reliability benefits.”
EPA Remains on Track to Finalize Greenhouse Gas Emission Rules by the End of March
Last week, the White House’s Office of Management and Budget (“OMB”) began the final review stage for new automobile standards that would increase the nation’s fleetwide fuel economy and create the first-ever greenhouse gas (“GHG”) regulations for cars and trucks. The proposed automobile standards are on track to be finalized by the end of March.
IRS Will Not Assert That Grants Made By DOE under Smart Grid Investment Matching Grant Program Are Taxable
On March 9, 2010, the Internal Revenue Service (“IRS”) ruled that Smart Grid Investment Matching Grants given by the Department of Energy (“DOE”) will not be taxable income.
Obama Nominates Cheryl A. LaFleur for Commissioner of FERC; Moeller Renominated
On March 8, 2010, President Barack Obama nominated Cheryl A. LaFleur for Commissioner of the Federal Energy Regulatory Commission (“FERC” or the “Commission”). If confirmed by the Senate, LaFleur would fill the seat vacated by Suedeen Kelly in December 2009 for a term to expire on June 30, 2014.