Catagory:Public Policy

1
CEQ Issues Final Greenhouse Gas Guidance Directing Federal Agencies to Consider Climate Change in their NEPA Reviews
2
Puget Sound Energy Reports to the Washington UTC on the Progress of its Efforts to Join the CAISO Energy Imbalance Market; CAISO Releases Study Chronicling Benefits of a Regional Energy Market
3
FERC Issues Rule Requiring Wind Generators to Provide Reactive Power as a Condition of Interconnection
4
The Washington State Department of Ecology Reissues Clean Air Rule
5
UPDATED: Comprehensive Energy Policy Legislation A Side-by-Side Comparison of H.R. 8 & S. 2012
6
New Treasury Guidance Significantly Expands Field of Renewable Energy Projects That May Qualify for the PTC or ITC
7
Eagle Take Permit Program Revamped – Longer Permits and Clearer Mitigation Requirements
8
Treasury Department Issues New Guidance on PTC and ITC
9
Comprehensive Energy Policy Legislation: A Side-by-Side Comparison of H.R. 8 & S. 2012
10
Update on EPA’s Clean Power Plan

CEQ Issues Final Greenhouse Gas Guidance Directing Federal Agencies to Consider Climate Change in their NEPA Reviews

By Craig Wilson, Cliff Rothenstein, Sandra Safro, Ankur Tohan, David Wochner and Michael L. O’Neill

On August 2, 2016, the White House Council on Environmental Quality (CEQ) published a final version of its guidance to federal agencies requiring the consideration of greenhouse gas (GHG) emissions and effects on climate change when evaluating potential impacts of a federal action under the National Environmental Policy Act (NEPA). CEQ explains that it does not expect the Final Guidance to be applied to federal actions for which a NEPA review has been concluded or actions for which a final environmental impact statement or environmental assessment has been issued. As discussed in greater detail below, although the Final Guidance is not legally binding on federal agencies, various aspects of the document have the potential to delay permitting timelines as agencies determine whether and how to incorporate the Final Guidance into their reviews and very likely will add to the level of review that agencies undertake.

To read the full alert, click here.

Puget Sound Energy Reports to the Washington UTC on the Progress of its Efforts to Join the CAISO Energy Imbalance Market; CAISO Releases Study Chronicling Benefits of a Regional Energy Market

By Eric Jay and Kari Vander Stoep

Puget Sound Energy (“PSE”) recently presented to the Washington Utilities and Transportation Commission (“WUTC”) regarding the steps it is taking to join the California-based Energy Imbalance Market (“EIM”) this coming fall. WUTC Docket No. 151425 (July 20, 2016).  The EIM is a new energy market overseen by the California state energy balancing authority – the California Independent System Operator (“CAISO”) – that came online in November 2014.  It is intended to increase reliability and other benefits for affected costumers by coordinating the dispatch of energy generation and transmission from utilities across an expanded geographic footprint that is expected to encompass significant portions of eight western states by the end 2018. As of the end of the second quarter this year, CAISO estimates that the EIM has resulted in a $65 million gross benefit for its participants to-date.

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FERC Issues Rule Requiring Wind Generators to Provide Reactive Power as a Condition of Interconnection

By Ben Tejblum and William Keyser

On June 16, 2016, the Federal Energy Regulatory Commission (the “Commission”) issued Order No. 827, which establishes reactive power requirements for all new non-synchronous generation (the “Rule”).[1]  Specifically, the Rule revises the Commission’s pro forma Large Generator Interconnection Agreement (“LGIA”) and pro forma  Small Generator Interconnection Agreement (“SGIA”) to require that newly interconnecting non-synchronous generators, including wind generators, provide dynamic reactive power pursuant to the terms of their interconnection agreements.  The Rule is the result of a Notice of Proposed Rulemaking addressing reactive power requirements that was issued by the Commission last November.

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The Washington State Department of Ecology Reissues Clean Air Rule

By Ankur Tohan, Alyssa Moir and Alyssa M. Fritz

On June 1 the Washington State Department of Ecology (“Ecology”) reissued a draft Clean Air Rule (“CAR”). A prior iteration of the rule was filed on January 6, 2016, but was withdrawn by Ecology to address and incorporate feedback from stakeholders and covered parties. Ecology anticipates that the revised CAR will be finalized sometime in September 2016; comments on the proposed rule are due by July 22, 2016.

Like the withdrawn rule, the intent of the reissued CAR is to establish emission standards to cap and reduce greenhouse gas (“GHG”) emissions from in-state stationary sources, petroleum product producers and importers, and natural gas distributors. The CAR would cover two-thirds of all in-state GHG emissions, including both public and private sector parties.

According to Ecology, some of the changes in the reissued rule include “incorporating mechanisms to ensure emissions are reduced while supporting business growth; recognizing early actions already taken to reduce emissions; and an effective pathway for power plants.”

Reactions to the reissued CAR have been mixed. Some stakeholders have raised concerns about the costs of implementing the program and the potential costs to energy customers. Others have asserted that the proposal would not sufficiently reduce emissions to protect the environment.

Below, we address what parties could be affected by the reissued rule, how the rule would operate, and the different options for compliance. We also outline the significant changes and significant omissions in the reissued CAR as well as the key dates for stakeholder input and covered party compliance.

Click here to read the full alert on K&L Gates HUB.

UPDATED: Comprehensive Energy Policy Legislation A Side-by-Side Comparison of H.R. 8 & S. 2012

By Tim Peckinpaugh and Kathleen Nicholas

Linked below is our updated side-by-side comparison of the House and Senate energy bills, which are moving to conference to reconcile differences in the hope of producing a final bill.  The principal difference from our earlier side-by-side comparison is the inclusion of several natural resource and energy R&D provisions added to the House bill late last month in order to prepare the bill for conference and permit the appointment of House conferees.This is the first comprehensive energy bill to advance this far in the legislative process in nine years.

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New Treasury Guidance Significantly Expands Field of Renewable Energy Projects That May Qualify for the PTC or ITC

On May 5, the U.S. Treasury Department released Notice 2016-31 to address certain changes made to the Production Tax Credit (“PTC”) and Investment Tax Credit (“ITC”) in the Protecting Americans from Tax Hikes (“PATH”) Act of 2015, Pub. L. No. 114-113, Div. Q.  The Notice generally extends the application of the “beginning of construction” and “continuous construction” requirements set forth in Notices 2013-29, 2013-60, 2014-46, and 2015-25, and also favorably modifies several key factors of both requirements.  In addition, on May 18, the U.S. Treasury Department released a revised version of Notice 2016-31, which states that the provisions of Notice 2016-31 apply to any project for which a taxpayer claims the PTC or, via Code Section 48(a)(5), the ITC, that is placed in service after January 2, 2013.

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Eagle Take Permit Program Revamped – Longer Permits and Clearer Mitigation Requirements

The United States Fish and Wildlife Service recently proposed revisions to its regulations authorizing take of bald and golden eagles.

The Bald and Golden Eagle Protection Act (“BGEPA”) imposes criminal and civil penalties against “whoever . . . shall take . . . any bald . . . or any golden eagle, alive or dead, or any part, nest, or egg thereof . . . .” “Take” is broadly defined to mean “pursue, shoot, shoot at, poison, wound, kill, capture, trap, collect, molest or disturb.” The United States has expressed its intent to pursue companies that violate BGEPA.

Read the full alert on K&L Gates HUB.

Treasury Department Issues New Guidance on PTC and ITC

Earlier today, May 5, the U.S. Treasury Department released Notice 2016-31 to address certain changes made to the Production Tax Credit (“PTC”) and Investment Tax Credit (“ITC”) in the Protecting Americans from Tax Hikes (“PATH”) Act of 2015, Pub. L. No. 114-113, Div. Q.  The Notice generally extends the application of the “beginning of construction” and “continuous construction” requirements set forth in Notices 2013-29, 2013-60, 2014-46, and 2015-25, but also creates a few new provisions that apply to renewable energy projects seeking the PTC or ITC after the PATH Act revisions to the Internal Revenue Code.

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Comprehensive Energy Policy Legislation: A Side-by-Side Comparison of H.R. 8 & S. 2012

Legislative History

In July 2015, comprehensive bills that would modernize U.S. energy policy for the first time since 2007 were introduced in the House and Senate. Notwithstanding their respective controversies, both bills started their legislative journeys with bipartisan support.  That same month, the Senate reported their bill (S. 2012) out of Committee 18-4, and the House bill (H.R. 8) passed unanimously through the Energy and Power Subcommittee.

In the House, the bipartisan spirit appeared to wane in August and September.  The House’s bill lost much of its bipartisan support in the wake of a substitute amendment offered by Chairman Fred Upton (R-MI).  On September 30, the Energy and Commerce Committee marked the Upton substitute, which was reported out of committee on a largely party-line vote, 32-20.  Ranking Member Frank Pallone (D-NJ) promised the Republicans that without the bipartisan concessions, H.R. 8 could be vetoed by the President.  And, indeed, after the bill passed through the full Committee, the White House released an official veto threat against the legislation.  Democrats’ attempts at amending the bill on the floor largely failed.  The bill ultimately passed the House in December by a predominantly party-line vote of 249-174, with only nine Democrats voting in favor.

Back in the Senate, S. 2012 first received floor consideration in late January 2016.  The bill’s sponsors and party leadership were hopeful that, in spite of the anticipated introduction of potentially controversial amendments, the bipartisan spirit of the bill would remain intact throughout floor consideration.  This spirit did largely prevail until the Senators from Michigan insisted that the bill’s passage be contingent on Federal funds for Flint, MI, to address its lead water crisis.  Majority Leader Mitch McConnell (R-KY) eventually pulled the bill from the floor after it failed to overcome a procedural motion.  The Michigan Senators continued negotiations with Senators Lisa Murkowski (R-AK) and Jim Inhofe (R-OK) to come to an agreement on Flint.  Finally, in April, an agreement came together and S. 2012 was brought back to the floor.  After the consideration of final amendments, the chamber passed the bill by an overwhelmingly bipartisan vote of 85-12.

Up next, the two chambers will form a formal conference committee where they will reconcile the many differences between the two bills.  Both Rep. Upton and Sen. Murkowski have expressed eagerness in getting the bill to the President before the summer recess, which starts July 16.  There is a lot of work yet ahead, but it is expected that efforts will get underway within the coming weeks.  As the Chairperson of the Senate’s committee of jurisdiction, Sen. Murkowski will “hold the gavel” for the conference committee since the House held control of the proceedings during the last major energy bill conference in 2007.  Sen. Murkowski’s optimism and perseverance during the months-long Flint negotiations highlight her ability and willingness to work with her Democratic partner, Sen. Maria Cantwell (D-WA), to accomplish this overhaul legislation and present a final package to the President that is not only comprehensive but bipartisan in nature.

Side-by-Side Comparison

In preparation for conference, we updated our side-by-side comparison of the House- and Senate-passed energy bills.  Our analysis shows 20 issue areas that overlap between the House and Senate energy bills. Those commonalities are charted in the attached side-by-side comparison.  This overlap highlights that while the House Democrats cried partisanship during their markup, the House bill still has plenty of similarities to the bipartisan Senate bill.

Following the chart of commonalities is a list of provisions unique to S. 2012 and then a list unique for H.R. 8.

To view the side-by-side comparison, click here.

Update on EPA’s Clean Power Plan

Late last month, the United States Environmental Protection Agency (“EPA”) submitted briefs to the United States Court of Appeals for the District of Columbia in support of its Clean Power Plan (“CPP”) rule.  The agency’s briefs were filed in response to a challenge against the rule brought by industry groups and states (“Petitioners”).  Amici curiae briefs on both sides of the issue were also filed by several cities, states, advocacy groups, and companies.  The D.C. Circuit will hear oral arguments on the legality of the CPP in June.  In February, the United States Supreme Court stayed the implementation of the CPP until the resolution of these legal challenges.

Since the stay of the CPP, states have operated under uncertainty and have taken different approaches to planning for the potential implementation or invalidation of the rule.

This alert provides a timeline of the events leading to the current status of the CPP, a summary of the different legal arguments in front of the D.C. Circuit, and a brief overview of different state approaches and strategies to plan for the potential implementation of the CPP.

Read the full alert on K&L Gates HUB.

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