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.”

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.

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.

On March 5, 2010, FERC approved a settlement order under which the Florida Reliability Coordinating Council, Inc. (“FRCC”) will pay a $350,000 civil penalty for its part in the February 26, 2008 power outage in southeastern Florida. This is the first time that a regional reliability entity has been fined for violating a mandatory reliability standard.

On March 5, 2010, the U.S. Circuit Court of Appeals for the Second Circuit denied rehearing en banc of its decision in Connecticut v. American Electric Power to allow nuisance claims against emitters of greenhouse gases (GHG).  The 2nd Circuit’s decision comes approximately one week after the 5th Circuit announced it will reconsider its October ruling, Comer v. Murphy Oil, which had also allowed individuals to sue large emitters of GHG for damage caused by climate change. A third tort case based on GHG emissions, Native Village of Kivalina v. Exxon Mobil Corp., is still pending in the Ninth Circuit.  A more complete discussion of these cases may be found here. 

On March 9, 2010, the Supreme Court of Wyoming ruled that Basin Electric Power Cooperative can continue with construction of its new Dry Fork Station coal-fired power plant near Gillette, Wyoming.  Finding that the state did not have to require best available technologies for controlling carbon dioxide emissions, the court rejected a challenge to the state-issued air permit brought by Earthjustice on behalf of the Powder River Basin Resource Council and the Sierra Club.

On February 26, 2010, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) issued an Order Initiating Review of Notice of Penalty filed by the North American Reliability Corporation (“NERC”) against Turlock Irrigation District (“Turlock”).  This is the first time that FERC has questioned a penalty issued by NERC.

On February 22, 2010, the Environmental Protection Agency (“EPA”) announced that it will begin to phase in permit requirements and regulation of greenhouse gases (“GHG”) for large stationary facilities at the start of 2011.  Currently the EPA is scheduled to take action on its first round of GHG regulations under the Clean Air Act (“CAA”) around April 1, 2010.