Catagory:Public Policy

1
The Final Northern Long-Eared Bat 4(d) Rule: Impacts to Energy Infrastructure Projects
2
Raindrops Keep Falling On My Head: What the CFTC’s Preliminary Report on the Swap Dealer Definition Might Mean for Energy Companies
3
FAST Act Expedites Permitting and Environmental Review for Large Infrastructure Projects
4
Presidential Memorandum Promotes Pre-Project Mitigation and Restoration Banking: Implications for Energy Projects and Related Development
5
Paris Climate Talks Conclude: Key Takeaways from a Critical Meeting
6
Public Meetings on the Clean Energy Fund II: Next Up: Spokane, WA on December 17
7
Renewable Power Purchase Agreement Presentation Next Week
8
FERC Proposes Rule That Would Require Wind Generators to Provide Reactive Power as a Condition of Interconnection
9
Greenhouse Gas Regulation in Washington: What the Clean Power Plan and Washington Clean Air Rule Mean for the State
10
Clean Power Plan Legal Battles Commence while EPA Fine-Tunes Incentives and Enforcement Mechanisms

The Final Northern Long-Eared Bat 4(d) Rule: Impacts to Energy Infrastructure Projects

Last spring, the U.S. Fish and Wildlife Service (the “Service”) published a final rule to list the northern long-eared bat (the “Bat”) as a threatened species and an interim 4(d) rule under the Endangered Species Act (the “Act” or “ESA”) (16 U.S.C. §1531 et seq.).

The interim 4(d) rule reflected an attempt by the Service to accommodate both conservation needs and industry group interests; however, it was widely believed that the listing of the Bat as a threatened species would impose a significant burden on wind, energy, and other energy infrastructure projects carried out within range of the Bat, as defined by the Service.

Read the full alert on K&L Gates HUB

Raindrops Keep Falling On My Head: What the CFTC’s Preliminary Report on the Swap Dealer Definition Might Mean for Energy Companies

The Commodity Futures Trading Commission (“CFTC,” or the “Commission”) has begun a process to assess the de minimis exception to the Commodity Exchange Act’s swap dealer definition in connection with the end of the definition’s phase-in period in December 2017. At that time the swap dealer de minimis threshold will automatically fall from $8 billion to $3 billion, unless the Commission specifies a different de minimis threshold.

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FAST Act Expedites Permitting and Environmental Review for Large Infrastructure Projects

Expedited permitting and environmental review for complex infrastructure projects may soon be a reality.  Buried at the end of its most recent transportation reauthorization package (the “FAST Act” or “Act”) is a significant new initiative intended to fundamentally change the way that federal agencies evaluate environmental impacts from, and issue permits for, construction of large infrastructure projects. [1]

National Environmental Policy Act (“NEPA”) review and environmental permitting for complex infrastructure projects can be costly and protracted.  For instance, a U.S. Government Accountability Office Report stated that the average completion time for an Environmental Impact Statement (“EIS”) in 2012 was 4.6 years. [2]  Between 2003 and 2012, the Department of Energy paid contractors an average fee of $6.6 million, and as much as $85 million, to prepare EISs. [3]  The cost to prepare an EIS is often borne by project sponsors.  Some transportation and water resources projects currently benefit from expedited permitting and environmental review procedures, [4] but the FAST Act is the first time that Congress has attempted to coordinate NEPA review across federal agencies and industry sectors.

Read the full alert on K&L Gates HUB

Presidential Memorandum Promotes Pre-Project Mitigation and Restoration Banking: Implications for Energy Projects and Related Development

On November 3, 2015, U.S. President Barack Obama issued a Presidential Memorandum (Memorandum) that potentially opens the door to agency attempts to expand mitigation obligations beyond what is required under law while also having the potential to have significant and positive net benefits for the development of energy projects. The Memorandum encourages advance (i.e., pre-project) restoration measures, including mitigation banking, by both public and private entities. [1] It directs federal agencies to adopt a clear and consistent approach, such as guidance and regulations, to further this goal. Agencies affected include the United States Forest Service (USFS), the United States Fish & Wildlife Service (USFWS), the Bureau of Land Management (BLM) and the Department of Interior (DOI) — projects involving review by these agencies, including energy and other types of proposed development, may be affected. These agencies will be expected to draft handbooks, guidelines, policies and regulations to implement advance mitigation measures.

Read the full alert on K&L Gates HUB

Paris Climate Talks Conclude: Key Takeaways from a Critical Meeting

Intense climate negotiations in Paris have now concluded for the 21st “conference of the parties” (or COP-21) under the United Nations Framework Convention on Climate Change. Until quite late in the process, many big-picture questions remained unresolved, including the enforceability of emissions limitations plans under the agreement, compensation for loss, and the target limit for global temperature rise. The resolution of these questions will be summarized below, with initial commentary on the results of the negations and questions going forward.

Leading up to and during the negotiations, media reports reflected optimism among global stakeholders seeking limits to greenhouse gas emissions, and expectations for an historic deal ran high. This ambitious agenda redoubled during the talks themselves, when low-lying island nations and scientists sought to tighten temperature increase targets from 2 degrees Celsius to 1.5 degrees Celsius. As discussed below, while the agreement reflects a new level of commitment to cutting carbon, the high expectations were not met entirely in the final accord.

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Public Meetings on the Clean Energy Fund II: Next Up: Spokane, WA on December 17

A series of public meetings are being held across Washington State to provide an update on the Washington State Legislature’s Clean Energy Fund II. The Clean Energy Fund provides grants to projects that support development, demonstration and deployment of clean energy technologies and is administered by the Department of Commerce’s State Energy Office. Personnel from the Department of Commerce will be at each meeting to provide information and answer questions.

The next meeting is being held in Spokane, Washington at Avista Utilities. The meeting details are:

  • When: Thursday, December 17, 2015
    2:00-4:00 p.m.
  • Where: Avista Utilities
    1411 E. Mission Avenue
    Spokane, WA 99202

If you are interested in attending the meeting on December 17 in Spokane, you can register here. We will keep you updated on future scheduled meetings and updates on the Clean Energy Fund II. More information on the Clean Energy Fund II can be found here.

Renewable Power Purchase Agreement Presentation Next Week

Law Seminars International will present a discussion on renewable power purchase agreements (PPAs) next Thursday, December 10 from 12:00-1:30 p.m. PST featuring Bill Holmes of K&L Gates and other renewables industry professionals. The presentation will cover what makes a renewable PPA different from other contracts, how renewable PPAs address the complex regulatory system governing electric power, common risk sharing terms in renewable PPAs, key financial terms, and the latest ideas for “synthetic” PPAs and other new approaches allowing large companies to participate directly in the market for renewable power.

Register directly on the Law Seminars International Website.

FERC Proposes Rule That Would Require Wind Generators to Provide Reactive Power as a Condition of Interconnection

In a Notice of Proposed Rulemaking issued on November 19, 2015, the Federal Energy Regulatory Commission (the “Commission”) proposed to eliminate the exemption currently available to wind generators from the requirement to provide reactive power.[1] The proposed rule would require that all newly interconnecting synchronous and non-synchronous generators, including wind generators, provide reactive power pursuant to the terms of their interconnection agreements. Additionally, any existing wind generators will be required to provide reactive power if they propose facility upgrades requiring a new interconnection request. Comments on the NOPR are due by the end of January 2016.

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Greenhouse Gas Regulation in Washington: What the Clean Power Plan and Washington Clean Air Rule Mean for the State

K&L Gates attorneys Ankur K. Tohan, Daniel C. Kelly-Stallings, and Alyssa A. Moir recently penned an article for the Environmental and Land Use Law Section of the Washington State Bar Association (WSBA) analyzing greenhouse gas regulation in Washington. Their article, “Greenhouse Gas Regulation in Washington: What the Clean Power Plan and Washington Clean Air Rule Mean for the State,” is available from the WSBA website.

Clean Power Plan Legal Battles Commence while EPA Fine-Tunes Incentives and Enforcement Mechanisms

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.

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