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On February 29, 2012, GenON Energy, Inc. (“GenON”) announced its 2011 financial results, and plans to deactivate 3,140 MW of generating capacity in the PJM Interconnection LLC (“PJM”) region between 2012 and 2015.  GenON’s news release pointed to costs for additional environmental controls and stated that “forecasted returns on investments necessary to comply with environmental regulations are insufficient.”

On February 16 and 17, 2012, the U.S. Court of Appeals for the District of Columbia issued opinions that rejected efforts by environmental groups to compel the EPA to tighten the fine particulate matter standards in its National Air Ambient Air Quality Standards (“NAAQS”) rule, and to review the EPA’s withdrawal of its proposed national standard for ground-level ozone.

On January 26, 2012, the Blue Ribbon Commission on America’s Nuclear Future (“Blue Ribbon Commission”) released a Report to the Secretary of Energy recommending a plan on multiple topics related to U.S. nuclear waste disposal.  The federal commission, created by President Obama, was tasked with finding solutions to the political impasse related to the use of the Yucca Mountain facility in Nevada.

On January 19th, Troutman Sanders hosted a webinar presented by partners Peter Glaser and Daniel Larcamp on the Utility Maximum Achievable Control Technology (“MACT”) Rule, the Cross State Air Pollution Rule (“CSAPR”) Stay and the obligation to comply with grid reliability standards.  The presentation discussed the following:

The Environmental Protection Agency (“EPA”) provided the electric utility industry with an early Christmas gift last year.  On December 21, 2011, EPA issued its “UMACT” rule, setting forth maximum achievable control technology (“MACT”) standards for coal and oil generating stations. Troutman Sanders has prepared a memorandum summarizing the rule here.  The rule can be appealed 60 days after publication in the Federal Register.  We expect publication in the Federal Register at some point during January 2012.

On Friday, December 2, 2011, the Environmental Protection Agency (“EPA”) released its third attempt at a Maximum Achievable Control Technology (“MACT”) standard for industrial boilers and process heaters under the Clean Air Act.  EPA’s latest proposal is a reconsideration of the final rule that was adopted in February and published March 21, 2011, which EPA promised to revise the same day it was released.