On June 15, 2010, President Obama gave an Oval Office speech on the BP oil spill. The President used the devastating effects of the spill as an impetus to call on the country to transition towards energy independence and the use of “clean energy.”
FERC Clarifies Reporting Requirements for Natural Gas Transactions
On Thursday June 17, 2010, FERC issued a clarification order regarding the terms and features of Form No. 552, the annual report for natural gas transactions (Transparency Provisions of Section 23 of the Natural Gas Act, Order No. 704-C, 131 FERC ¶ 61,246 (2010) (“Order No. 704-C”)).
FERC Requests Comments on New Electric Storage Technologies
On June 11, 2010, FERC released its Request for Comments Regarding Rates, Accounting, and Financial Reporting for New Electric Storage Technologies (the “Request”). In particular, FERC wants comments on how to develop a rate policy that allows storage technologies flexibility while complying with the Federal Power Act.
Murkowski Resolution Defeated
On June 10, 2010, the Murkowski Resolution to disapprove EPA’s endangerment finding on greenhouse gases (“GHG”) was defeated in the Senate by a vote of 47-53. All Senate Republicans and six Senate Democrats voted in favor of the resolution.
Lugar Introduces New Energy and Climate Bill
On June 9, 2010, Senator Dick Lugar (R-IN) introduced an energy legislation alternative to the Kerry-Lieberman and Waxman-Markey bills, entitled the “Practical Energy and Climate Plan” (S. 3464).
FERC Rejects Midwest ISO’s Capacity Plan Again
On June 18, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) rejected the resource adequacy compliance filing by the Midwest Independent Transmission System Operator, Inc. (“Midwest ISO”) for failing to develop a permanent approach to congestion that limits aggregate delivery. In rejecting the filing, FERC again ordered the Midwest ISO to consider using location-specific capacity requirements in its resource adequacy plan.
FERC Confirmations for LaFleur and Moeller Delayed
On May 27, 2010, Senator Tom Harkin (D-IA) asked the Senate for en banc unanimous consent to confirm over one hundred nominees to various positions in federal agencies, the courts, and the military. Harkin’s request included Federal Energy Regulatory Commission nominee Cheryl LaFleur and sitting Commissioner Philip Moeller (see March 12, 2010 edition of the WER).
Fifth Circuit Dismisses Appeal of Global Warming Tort Case
On May 28, 2010, the United States Court of Appeals for the Fifth Circuit (“Fifth Circuit”) handed the utility, chemical, and oil and gas industry a victory by dismissing the appeal in Comer v. Murphy Oil (“Comer”).
EPA Issues First-Ever One-Hour Air Quality Standard for Sulfur Dioxide; Coal Plants Affected
On June 2, 2010, the Environmental Protection Agency (“EPA”) finalized a new primary National Ambient Air Quality Standard (“NAAQS”) for sulfur dioxide (“SO2”), after finding that the existing standards are inadequate to protect public health.
Numerous Lawsuits Filed Challenging EPA Rule Initiating Greenhouse Gas Regulation Under PSD and Title V Permit Programs
Numerous industry groups, business associations, environmental advocacy groups and public interest organizations have petitioned the U.S. Court of Appeals for the District of Columbia Circuit to review EPA’s reconsideration of the so-called “Johnson Memorandum.” In its reconsideration, EPA determined that greenhouse gases (“GHGs”) would be subject to regulation under the Prevention of Significant Deterioration (“PSD”) and Title V permit programs as of January 2, 2011. In the related tailoring rule, which was published in the Federal Register on Thursday, EPA established a process for phasing in PSD and Title V requirements, including the requirement to do Best Available Control Technology for GHGs, beginning on January 2, 2011.