On November 3, 2010, California reported that 61.2% of voters in California defeated Proposition 23 (“Prop 23”). Prop 23 would have suspended California’s Global Warming Solution Act of 2006 (“AB 32”), which requires the state to reduce greenhouse gas emissions 30 percent by 2020, until California’s unemployment rate is 5.5 percent or less for a calendar year. (see October 8, 2010 edition of the WER).
State Regulation News
California’s Proposition 23 Ballot Initiative Would Suspend AB 32
On December 22, 2009, the California ballot initiative, Proposition 23 (“Prop 23”) was introduced by Thomas W. Hiltachk. Prop 23 would suspend California’s Global Warming Solution Act of 2006 (“AB 32”), which requires the state to reduce greenhouse gas emissions 30 percent by 2020, until California’s unemployment rate is 5.5 percent or less for a calendar year. (see October 1, 2010 edition of the WER).
California Air Resources Board Adopts New 33% Renewable Standard
On September 23, 2010, the California Air Resources Board (“CARB”) passed a renewable portfolio standard (“RPS”) that will require 33 percent of the electricity sold in California to come from renewable energy. The new standard was created in response to the Governor’s Renewable Electricity Standard Order in 2009, and the state law Assembly Bill 32, the law seeking to bring emissions down to 1990 levels by the year 2020.
FERC Rules CPUC Feed-In Tariffs Permissible Under Certain Conditions
On July 15, 2010, FERC ruled that sections of the Federal Power Act (“FPA”) and the Public Utility Regulatory Policies Act of 1978 (“PURPA”) do not preempt the California Public Utilities Commission’s (“CPUC”) decision to require utilities to offer a minimum price for power from certain small combined heat and power (“CHP”) generators if they are Qualifying Facilities (“QF”) under PURPA.
New Jersey Legislature Passes REC Program for Offshore Wind Energy
On June 29, 2010, the New Jersey legislature passed S 2036, the “Offshore Wind Economic Development Act.” The bill would create a renewable energy certificate program to require that a certain percentage of electricity sold in the state come from offshore wind projects. Supporters estimate that the program could create at least 1,100 MW of offshore wind capacity.
California ISO Passes Revised Transmission Plan and Interconnection Requirements for Renewables
On May 18, 2010, the CAISO Board of Governors approved a revised transmission planning process in an attempt to provide transmission necessary to accommodate additional renewable generation. The CAISO Board also approved new reliability rules for renewable energy resources.
Siting Application Filed In New York for 2,000 MW DC Line From Canada Into New York City Market
On March 30, 2010, Champlain Hudson Power Express, Inc. (“Champlain”) filed an Application for a Certificate of Environmental Compatibility and Public Need (the “Application”) at the New York State Public Service Commission (“NYPSC”). Champlain filed the Application for its Champlain Hudson Power Express Project (the “Project”). The Project represents the latest attempt by developers to move large quantities of Canadian hydropower into lucrative East Coast markets.
Colorado Governor Signs into Law the Colorado Clean Air-Clean Jobs Act
On April 19, 2010, Colorado Governor Bill Ritter signed the Clean Air-Clean Jobs Act (“HB 1365”) into state law to reduce emissions from coal-fired power plants by 80% in the state.
EPA Officially Regulating Greenhouse Gas Emissions Under the Clean Air Act
On April 1, 2010, the Environmental Protection Agency (“EPA”) issued rules requiring motor vehicles to reduce greenhouse gas (“GHG”) emissions beginning with model year 2012 and continuing to model year 2016.
NYISO Releases Power Trends 2010, Addresses Key Energy Developments
On April 5, 2010, the New York Independent System Operator (“NYISO”) released its annual New York State energy report, Power Trends 2010: New York’s Emerging Energy Crossroads (the “Report”). The Report identified the key energy issues for New York along with several NYISO initiatives in place to address topics like energy efficiency, smart grid technology, renewable resource development, and transmission congestion.