Legal and Policy Developments Affecting the Global Power Industry.
EPA published the Clean Power Plan (“CPP”) regulations in the Federal Register late last month. The CPP is the landmark climate change rule championed by the Obama Administration that requires reductions in greenhouse gas emissions from existing power plants nationwide. Almost immediately, opponents lodged petitions seeking review of the rule, with some petitioners also seeking a stay of the rule.
The latest edition of the K&L Gates Environmental Policy Quarterly focuses on (1) EPA’s Carbon Pollution Standards and Clean Power Plan, (2) congressional efforts to streamline environmental reviews of infrastructure projects, and (3) EPA’s draft Assessment on the Potential Impact of Hydraulic Fracturing on Drinking Water Resources. We are delighted to include contributions by a number of K&L Gates lawyers who focus on these matters on a daily basis.
Law360 recently published an expert analysis piece from Teresa Hill and Bill Holmes on corporate energy sourcing, the renewable energy trend in which in which companies across all industries are taking a greater role in controlling the characteristics and cost of their energy supply. Read “Corporate Energy Sourcing: A New Engine for Renewables” here.
Bill Holmes will speak on a panel at the upcoming Renewable Energy Markets (REM) 2015 conference in Washington, D.C. on October 19, 2015. Mr. Holmes’ panel presentation, “Direct Purchasing and PPAs 101” will address the benefits and challenges of direct energy purchases as well as provide suggestions on composing internal teams, condensing transaction time, and ensuring buy-in for long-term agreements.
Please visit the REM 2015 website for more information on the conference.
The Alabama Public Services Commission (the “PSC”) has granted a petition filed by Alabama Power Company (“Alabama Power”) for a certificate of convenience and necessity to develop or procure 500 megawatts of capacity and energy from “renewable energy and environmentally specialized generating sources.” Docket No. 32382 (July 16, 2015) (order). The authorization will expire six years from the date of the order and includes several limitations, including a 30-day review process for each project submitted under the order to ensure that the project meets the specified eligibility criteria.
Washington State is about to become the latest state to take local action to address global climate change. Governor Jay Inslee recently directed the Washington Department of Ecology (“Ecology”) to make new rules aimed at reducing greenhouse gas (“GHG”) emissions in the state. The new rules are scheduled to be adopted in summer 2016 and to take effect shortly thereafter.[1] The result will be called the “Washington Clean Air Rule.”[2]
K&L Gates will once again be the Exclusive Deal Room and Gold Sponsor of the Energy Storage North America Conference, October 13 – 15 in San Diego, CA.
The K&L Gates Deal Room is an ideal place to hold your energy storage business meetings in a convenient and private atmosphere during the conference. Reservations are required — to make yours, click here. In addition, discounts for the conference are available. Please contact Bill Holmes for more information.
The U.S. Fish and Wildlife Service (“Service”) announced on Tuesday, September 22, 2015, that it would not list the greater sage-grouse under the Endangered Species Act (“ESA”).
Last week the Fifth Circuit issued a ruling that reduces uncertainty regarding criminal liability for taking migratory birds. In particular, the ruling alleviates potential liability for facilities where interactions with migratory birds are effectively unavoidable—such as wind production facilities, power transmission lines, and other energy production or manufacturing facilities. These types of facilities face a fundamental tension under the Migratory Bird Treaty Act (“MBTA”): on the one hand, the MBTA imposes strict criminal liability for the take of migratory birds; and on the other hand, there is no permit available to authorize the unintentional take of migratory birds. The Fifth Circuit’s ruling joins other circuits around the country in holding that the MBTA applies only to the intentional take of migratory birds; however, the court’s ruling widens the split between circuits that differ in how MBTA liability applies.
The Washington Utilities and Transportation Commission (the “WUTC”) is in the midst of an investigation into methods for modeling the costs and benefits of energy storage in utility integrated resource plans (“IRPs”). During its review of the 2013 IRPs of Washington’s regulated utilities (Puget Sound Energy (“PSE”), Avista, and PacifiCorp), the WUTC directed the utilities to start considering how energy storage could be incorporated into future IRPs. As part of this effort, WUTC staff issued a white paper in May 2015: Modeling Energy Storage, Challenges and Opportunities for Washington Utilities. On August 7, the WUTC noticed a comment period on the white paper; the comment period closes on September 25, 2015. The WUTC will use the comments received during this period to determine whether it is necessary to give utilities direction on how energy storage should be treated in their planning and procurement processes, and may issue a policy statement at the end of the investigation to provide that guidance.
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