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 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.

Sixteen petitioners, representing three states and multiple industry associations and businesses, think tanks, and lawmakers, filed lawsuits by last Tuesday’s deadline against the U.S. Environmental Protection Agency (“EPA”) challenging the agency’s finding that greenhouse gases (“GHGs”) endanger health and welfare and thus can be regulated under the Clean Air Act.

Recently, several news outlets reported on the shortage of rare earth elements and the effect the shortage may have on technology development within the energy industry.  Specifically, rare earth elements are predominantly mined and refined in China, which is using more and exporting less of the resource.  If that trend continues, there is speculation that wind development and other renewable energy investment outside China could suffer. 

On January 13, 2010, T. Boone Pickens announced that his company, Mesa Power LP, will not build the planned 4,000 MW Pampa Wind Farm in the Texas Panhandle.  Pickens said he will cut his $2 billion order for wind turbines from General Electric Company (“GE”) in half, and plans to use these remaining turbines in Canada and Minnesota wind farms.