In another step towards regulating greenhouse gas emissions (“GHG”) under the Clean Air Act, the President on Tuesday unveiled agreement on new automobile fuel economy standards that include regulation of automotive GHG emissions. The proposal would be jointly implemented by the U.S. Environmental Protection Agency (“EPA”) and the U.S. Department of Transportation (“DOT”).

On May 11, 2009, the Commission approved tariff revisions made by the New York Independent System Operator, Inc. (“NYISO”) that will treat wind resources as flexible resources. The revisions will require wind resources to “dispatch down” in order to resolve transmission system constraints.

On Wednesday, the Senate Committee on Energy and Natural Resources (“Senate Energy Committee”) voted for an amendment to Sen. Jeff Bingaman’s (D-NM) transmission bill (see May 8, 2009 edition of the WER) that will limit broad cost allocations for “national interest” power lines in a given region. The amendment, proposed by Sen. Bob Corker (R-TN), could create new financial hurdles for developers proposing large new power line projects.

On Tuesday, Democrats on the House Committee on Energy and Commerce (“House Energy Committee”) met behind closed doors to discuss and negotiate several portions of Rep. Henry Waxman’s (D-CA) energy bill (see April 3, 2009 edition of the WER). While the meeting did not finalize every provision of Rep. Waxman’s energy bill, Democrats on the House Energy Committee agreed to several key portions of the bill.

On May 6, 2009, the North American Electric Reliability Corporation (“NERC”) approved revisions to eight cyber security standards for America’s bulk power system as part of their standards revision work plan. The primary revision was the removal of “reasonable business judgment” language in response to concerns FERC voiced in Order No. 706 issued on January 18, 2008.

On Wednesday, the Senate Energy and Natural Resources Committee (“Energy Committee”) released a joint staff draft of Chairman Jeff Bingaman’s (D-NM) energy bill that would address concerns by states on cost allocation as well as give the Department of the Interior authority to site new transmission lines on federal lands.