On November 29 and 30, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) held a Commissioner-led Technical Conference on electric reliability issues. Of note, the Commission devoted an entire day of the conference to the impact of the EPA’s regulations on electric reliability.
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DOE Releases Report on EPA Regulations and Resource Adequacy
On December 1, 2011, the Department of Energy (“DOE”) and EPA presented a united front in announcing the release of a DOE report, Resource Adequacy Implications of Forthcoming EPA Air Quality Regulations, which shows the EPA’s Cross-State Air Pollution Rule (“CSAPR”) and the Mercury and Air Toxics Standards (“MATS”) will not affect grid reliability.
Utilities May Seek National Security Exemption Under the Clean Air Act
On November 29, 2011, the National Journal Daily reported that the Edison Electric Institute (“EEI”) is seeking a national security exemption in order to provide more time to comply with the upcoming implementation of the Mercury and Air Toxics Standards rule (“MATS”).
A Boon for Renewable Energy Projects- Department of the Interior Proposes Reforms of Leasing Regulations on American Indian Land
On November 28, 2011, Secretary of the Interior Ken Salazar and Assistant Secretary for Indian Affairs Larry Echo Hawk announced the beginning of a major reform of federal surface leasing regulations for American Indian Lands. The Department of the Interior, as trustee responsible for managing approximately 56 million surface acres in Indian Country, currently processes requests for land leases and subleases without a defined process or deadline for review. Attempts to engage in lease or mortgage transactions can languish for years.
FERC Releases 2011 Report on Enforcement
On November 17, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) released the 2011 Report on Enforcement (the “Report”). The Report is prepared annually by staff of the Office of Enforcement (“OE”).
FERC Holds Technical Conference on the Penalty Guidelines
On October 27, 2011, the Commission held a Technical Conference on last September’s Revised Policy Statement on Penalty Guidelines. Overall, various members from the Energy industry provided feedback to the Commission, and the industry representatives repeatedly asked for: (1) increased transparency, (2) more communication, (3) more detail on what exactly comprises an effective compliance program, and (4) what determines a penalty amount.
Declining Freshwater Resources Will Impact Energy Production
On November 15, 2011, the Energy in a Warming World Initiative, a three-year research collaboration between the Union of Concerned Scientists and more than a dozen scientists, issued a peer-reviewed report, “Freshwater Use by U.S. Power Plants: Electricity’s Thirst for a Precious Resource.” The report is the first systematic assessment of power-plant water use, its relationship with fresh water systems and the low-quality of data currently available on the topic.
CPUC Denies Requests from Advocates to Move Away from Critical Peak Pricing
On November 10, 2011, the California Public Utilities Commission (“CPUC”) issued a decision regarding Pacific Gas and Electric Company’s (“PG&E”) petition for modification of decision 10-02-032, regarding implementation of dynamic pricing rates for residential and small/medium agricultural and commercial customers.
Commission Releases Plan for Retrospective Analysis of Existing Rules
On November 8, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) released its plan to comply with President Barack Obama’s Executive Order No. 13579 concerning periodic retrospective analysis of existing “significant regulations.”
FERC Issues Delegated Order Finding No Jurisdiction on LNG Facility
On November 3, 2011, the Director of the Office of Energy Projects for FERC issued a delegated order dismissing the uncontested application of Pivotal LNG, Inc. (“Pivotal”) for a limited jurisdiction blanket transportation certificate, under section 7(c) of the Natural Gas Act (“NGA”), in order to own and operate a liquefied natural gas (“LNG”) facility in support of its non-jurisdictional LNG fuel business.