Emissions – Page 3 – Global Power Law & Policy

K&L Gates Environmental Policy Quarterly Covers Clean Power Plan

Nov 02 2015

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.

Read the Environmental Policy Quarterly

The “Washington Clean Air Rule” is coming

Sep 30 2015

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]

EPA releases final version of Clean Power Plan

Aug 03 2015

EPA issued the Clean Power Plan in its final form today, August 3, 2015. The rule in effect reshapes energy policy nationwide by setting state-by-state carbon emission standards that all states must achieve through a combination of producing energy more efficiently, reducing energy demand, shifting away from coal-fired generation toward natural gas, nuclear power, and renewable energy, and encouraging state and regional policies such as renewable portfolio standards and cap-and-trade programs. The final rule contains significant changes from the version proposed in 2014, including backing down from an initial earlier deadline for compliance, axing energy efficiency as the fourth “building block” for state targets, increasing the targeted GHG reductions to 32% below 2005 levels by 2030 (up from 30%), and using uniform carbon emissions rates for similar types of power plants.[1] Read More

Australian Renewable Energy Target (RET) – Revised RET deal finalised

May 18 2015

A bipartisan agreement on the revised Renewable Energy Target (RET) was finally reached between the Australian Government (represented by Industry Minister, Ian Macfarlane and Environment Minister, Greg Hunt) and the Opposition (represented by Mark Butler and Gary Gray) on the morning of 18 May 2015 in Melbourne. There have been reports that the agreement was reached with intervention from the Prime Minister Tony Abbott’s office.

As contemplated by the in principle agreement reached between the Government and the Opposition on 8 May 2015, the existing target of 41,000 GWh of large scale renewable energy by 2020 will now be reduced to 33,000 GWh. This reduction will be effected by way of legislative amendment to the Renewable Energy (Electricity) Act 2000 (Cth).
Australia is the first developed country to formally reduce its renewable energy target. There are suggestions the reduced RET will cause investment in Australian renewable energy projects to fall from an expected AUD20.6 billion by 2020 to AUD14.7 billion.

The Government has agreed not to pursue its proposal to continue reviewing the target every two years. This alleviates concerns over the retention of the two-yearly reviews of the scheme. These reviews have arguably been the predominant cause of the current investment freeze in the renewable energy industry. In lieu of the two-yearly reviews, annual statements detailing achievement towards meeting the RET and impacts on electricity prices will be provided by the Clean Energy Regulator.

Despite lack of support from the Opposition, the Greens and the renewable energy industry, the Government’s plan to include native forest wood waste in the range of energy sources that are eligible to contribute to the RET will be included in the relevant amending legislation which is expected to be presented to Parliament next week. The Government intends to pass this proposal with support from the Senate crossbench.

It is expected the revised RET should be passed by both the House of Representatives and the Senate before the winter recess on 25 June 2015.

The Opposition has indicated that it would increase the 2020 target if it wins the next election, which is to be held on or before 14 January 2017.

Australian Renewable Energy Target (RET) – in principle agreement reached on a revised RET

May 10 2015

After months of negotiations, Industry Minister Ian Macfarlane has confirmed that on 8 May 2015 the Australian Government and the Opposition have agreed in principle a revised Renewable Energy Target (RET) of 33,000 gigawatt-hours (GWh) of large scale renewable energy by 2020. Read More

Amendments to the Australian Corporations Regulations: carbon abatement contracts not financial products

Mar 17 2015

The Emissions Reduction Fund (ERF) forms a key part of the Australian Federal Government’s Direct Action Plan to address climate change. Under the model, successful bidders in an ERF auction enter into “carbon abatement contracts” with the Clean Energy Regulator. These contracts require the bidder to provide carbon abatement to the Regulator according to an agreed schedule.

Previously, carbon abatement contracts may have been considered “derivatives” and “financial products” for the purposes of the Corporations Act 2001 (Cth) (the Act) and Corporations Regulations 2001 (Cth) (Regulations). This characterisation would have subjected ERF participants to onerous regulatory burdens under the Act and Regulations (such as the requirement to hold an Australian Financial Services Licence).

To ensure that persons are not burdened by these regulatory obligations simply because they regularly enter into contracts with the Clean Energy Regulator, the Corporations Amendment (Emissions Reduction Fund Participants) Regulation 2015 (the Amendments) exempt carbon abatement contracts from the definitions of “derivative” and “financial product”.

The Amendments will commence the day after they are registered on the Australian Federal Register of Legislative Instruments.

Australia’s Emissions Reduction Fund Legislation Receives Royal Assent

Dec 02 2014

On 25 November 2014 the Carbon Farming Initiative Amendment Act 2014, which puts in place the Emissions Reduction Fund (ERF), received Royal Assent and is now law. The ERF is the cornerstone of the Australian Government’s Direct Action Plan climate change policy for the reduction of greenhouse gas emissions. It will provide $2.55 billion in financial incentives over four years for companies to voluntarily reduce emissions. The Government says its Direct Action Plan climate change policy will mean that Australia will meet the 5 percent emissions reduction target by 2020.

Emissions Reduction Fund passes Senate in Australia

Oct 31 2014

On 31 October 2014, the Australian Senate passed the Carbon Farming Initiative Amendment Bill 2014 (Bill) which puts in place the Emissions Reduction Fund (Fund). The Fund is the cornerstone of the Australian Government’s Direct Action Plan climate change policy for the reduction of greenhouse gas emissions. It is comprised of $2.55 billion over four years to provide financial incentives for companies to voluntarily reduce emissions. The Government says its Direct Action Plan climate change policy will mean that Australia will meet the 5 percent emissions reduction target by 2020.

As last minute amendments were made to the Bill before being passed, the Bill will now return to the House of Representatives for approval before it is presented to the Governor-General for assent.

A White Paper on the Fund was released on 24 April 2014 with the intention of providing details and policy decisions regarding the Fund. Please refer to our earlier Legal Insight dated 19 May 2014.

Phase I of CA 2030 Low Carbon Grid Study Completed: 50% GHG Reduction Feasible; Energy Storage to Play a Key Role

Sep 04 2014

Last week, the National Renewable Energy Laboratory (NREL) began releasing the results of Phase I of the California 2030 Low-Carbon Grid Study, which is designed to show how the electric sector can most cost-effectively support California’s ambitious GHG emissions goals. The study is generally referred to as the “Low Carbon Grid Study” or “LCGS” by NREL and the approximately 30 companies, foundations and trade associations that participated in the study. Read More

Supreme Court “Not Willing to Stand on the Dock and Wave Goodbye” as EPA Explores How It Can Regulate Greenhouse Gases from Every Possible Source

Jun 26 2014

In 2007, the Supreme Court told the U.S. Environmental Protection Agency (EPA) it was wrong to conclude that it lacked the authority to regulate greenhouse gases (GHGs) emitted from vehicles, because GHGs are an “air pollutant.” Since then, the energy and power industries in particular have watched as the EPA took that ruling and developed regulations focused on limiting GHG emissions from stationary sources. EPA not only regulated GHGs from utilities, but expanded the program to almost any source of GHGs (landfills, electronics manufacturers, office buildings), and then “tailored” the rule to limit what everyone agreed were onerous and unnecessary impacts. In a 5-4 decision, the Supreme Court again reversed the EPA, this time telling it that it cannot regulate entities’ GHG emissions if they do not otherwise need a Clean Air Act (CAA) permit. While the decision provides relief to building owners, hospitals, bakeries, dry cleaners, many manufacturers, and just about every other type of business that uses heating and air conditioning, the power industry itself (meaning those that need CAA permits anyway) did not fair as well because the Court upheld EPA’s authority to require them to implement “best available control technology” (BACT) to limit GHGs. This alert describes the decision, and addresses the question most relevant to the regulated community: How much will this decision matter? Read More

Catagory:Emissions