On May 26, 2011, a United States District Court for the District of Columbia ordered the United States Environmental Protection Agency (“EPA”) to issue a final, non-appealable Prevention of Significant Deterioration (“PSD”) permit decision no later than August 27, 2011 for Avenal Power Center, LLC’s 600 megawatt natural gas-fired power plant in California.
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CARB Ordered to Stop Work on Cap-and-Trade Program
On May 20, 2011, Judge Ernest Goldsmith of the Superior Court of California issued a judgment that orders the California Air Resources Board (“CARB”) to stop implementing a cap-and-trade program until the board analyzes alternatives to the cap-and-trade program as part of the agency’s scoping plan.
FERC Relies on Federal “Catchall” Statute of Limitations to Dismiss Case
On May 24, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) dismissed a complaint stemming from the California energy crisis by relying on several grounds, including a federal “catchall” statute of limitation – perhaps the first time FERC has relied on this law to dismiss a complaint.
Texas PUC Holds Workshop on Entergy Texas Joining the Midwest ISO
On May 27, 2011, the Public Utility Commission of Texas (“Texas Commission”) held a workshop regarding Entergy Texas’ proposal to join the Midwest Independent System Operator, Inc. (“Midwest ISO”). The Midwest ISO made a presentation to the Texas Commission explaining how its system is operated and explaining the benefits of Entergy joining its system.
FERC Releases Summer 2011 Energy Market and Reliability Assessment
On May 19, 2011, FERC staff presented the Summer 2011 Energy Market and Reliability Assessment (the “Assessment”). Overall, staff revealed that demand forecasts are largely the same as compared with Summer 2010, and generation and reserve margins for the season are projected to be sufficient.
EPA Delays Boiler MACT Rules Indefinitely
On May 16, 2011, the Environmental Protection Agency (“EPA” or “Agency”) stayed indefinitely the effective date for the controversial final rules, “National Emission Standards for Hazardous Air Pollutants for Major Sources: Industrial, Commercial, and Institutional Boilers and Process Heaters” (the “Major Source Boiler MACT”) and “Standards of Performance for New Sources and Emission Guidelines for Existing Sources: Commercial and Industrial Solid Waste Incinerator Units” (the “CISWI Rule”).
Initial Briefs Filed Challenging EPA’s Greenhouse Gas Endangerment Finding
On May 20, 2011, eighty parties representing a cross-section of American business filed their opening brief in the U.S. Court of Appeals for the D.C. Circuit (“D.C. Circuit” or the “Court”) challenging EPA’s finding that greenhouse gases (“GHGs”) emitted by new motor vehicles endanger the public health and welfare by contributing to climate change. A group of states filed separate briefs challenging that finding as well.
FERC Releases NOI on Transmission Investment
On May 19, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) released the Notice of Inquiry (“NOI”), Promoting Transmission Investment Through Pricing Reform.
Senator Murkowski Submits Questions to FERC on Reliability Implications of EPA Actions
On May 17, 2011, Senator Lisa Murkowski, (R-AK), sent a letter to FERC Chairman Jon Wellinghoff in which she expressed concern over the impact of proposed and final rules by the Environmental Protection Agency (“EPA”) on the reliability of electricity.
DOE Puts Cape Wind Loan On Hold
On May 13, 2011, the Director for Cape Wind Communications announced that the Department of Energy (“DOE”) has placed the Cape Wind Project loan guarantee application “on hold.”