Legislation

"I believe in science." And then what?

July 29, 2016 11:39
by J. Wylie Donald
I am sure you heard Hillary explain last night why she is going to take action on climate change. "I believe in science." We weren’t so articulate when we counseled last week to “Go to the Data,” but she figured it out. No plagiarism issues either.

Climate Change Effects | Florida | Legislation | Regulation | Rising Sea Levels | Weather

ORECs or ERCs: How Will New Jersey Pay for Offshore Wind?

October 6, 2015 22:43
by Tricia Caliguire
On November 9, 2015, the federal Bureau of Ocean Energy Management (“BOEM”) will hold the fifth auction of leases for space on the Outer Continental Shelf in the Atlantic Ocean, this one offshore New Jersey. BOEM will offer 342,833 acres in two lease blocks, enough space to support at least 3,400 megawatts (“MW”) of commercial wind generation, which – according to BOEM -- could power approximately 1.2 million homes.

Carbon Emissions | Climate Change | Legislation | Regulation | Renewable Energy | Wind Energy

Top 6 at 6 - Climate Change Legal Highlights of the First Six Months of 2015

July 24, 2015 03:50
by J. Wylie Donald
Some might say that the Clean Power Plan is all one needs to talk about in any highlights article on recent climate change legal issues. When final the CPP will expand the scope of the Clean Air Act profoundly, impact the electricity business fundamentally, restrict the coal industry severely and raise electricity rates for consumers by more than just pennies.

Carbon Dioxide | Climate Change Effects | Florida | Legislation | Regulation | Rising Sea Levels | Supreme Court | Utilities | Year in Review

"Capacious" Term Dooms MATS Rule - Does It Say Anything About the Clean Power Plan?

June 29, 2015 11:50
by J. Wylie Donald
The Energy Information Agency predicted the retirement of up to 60 gigawatts of coal-fired electricity generation by 2020. A significant contributor to that evolution was the Mercury and Air Toxics Standard or MATS Rule. Until today that is, when a 5-4 majority on the Supreme Court concluded in Michigan v. EPA that EPA’s failure to consider cost in deciding to regulate power plant emissions was improper.

Carbon Emissions | Legislation | Regulation | Supreme Court | Utilities

There's Gold in Them Thar Coal Plants - You Just Have to Know How to Look For It

June 15, 2015 09:20
by J. Wylie Donald
Last Tuesday night saw a few of us enjoying the charms of Virginia Beach as we recovered from a long day of coal plant demolition. (Lawyers in hard hats. Run from that.) Well, not exactly.

Legislation | Regulation | Utilities

NERC's Polite Review of the Clean Power Plan: A "Challenge"

April 30, 2015 07:11
by J. Wylie Donald
When the draft of EPA's Clean Power Plan was promulgated in the Federal Register last June, one of the critical questions raised by those in the electricity space was: what about reliability? If you shut down all those coal plants, will you have enough generation from other sources to keep the lights on? Even if you have enough generation, will you have enough natural gas at the times and places when you need it? Is there enough time to get the needed generation and resources in place under EPA's schedule?

Carbon Emissions | Legislation | Regulation | Utilities

In re Murray Energy - the First Clean Power Plan Donnybrook

April 16, 2015 20:51
by J. Wylie Donald
This morning found us at the E. Barrett Prettyman Courthouse in Washington, hoping to take in the oral argument before the DC Circuit in the first (of what is certain to be many) challenge to the Clean Power Plan: In re Murray Energy Corp. Murray Energy is the largest privately owned coal company in the country and was joined by another coal company, twelve States and numerous amici. It sued last June and claimed, under the All Writs Act, that it would be irreparably harmed by the immense dislocation to be precipitated by EPA's planned move from coal to natural gas, nuclear power, renewable energy and efficiency (i.e., the Clean Power Plan) and, therefore, the Court should stop EPA's plan in its tracks.

Carbon Dioxide | Climate Change Litigation | Legislation | Utilities

April Fool's Day Sees National Flood Insurance Rates Rise

March 31, 2015 20:15
by J. Wylie Donald
So what day would you pick to have your flood insurance premium double? April Fool's Day? You got it. Well, that's a little hyperbolic. Rates aren't doubling instantaneously tomorrow. Instead they are rising between 10% and 18% per year until they match commercial rates. There is a set of exceptions to the 18% cap. There can be up to a 25% increase on non-primary residences, so-called "severe repetitive loss" properties and substantially-damaged / substantially-improved properties. Other change...

Flood Insurance | Legislation

The Keystone XL Pipeline Veto: Much Ado ...

February 27, 2015 18:39
by J. Wylie Donald
When one talks of pipelines in recent days one hears nearly an incessant buzz about Keystone XL, as if that is where the real action is. But it isn't, notwithstanding the histrionics over President Obama's veto of S.1, the Keystone XL Pipeline Approval Act. The real action lies not with an 850,000 barrel per day oil pipeline, but instead with the natural gas pipelines that are needed to supply the natural gas electricity generating plants that will be required to replace, in part, 103 gigawatts of coal powered generation. What are we talking about? Building Block 2 of EPA's Clean Power Plan posits the replacement of coal-fired generation with cleaner natural gas-fired plants. Natural gas plants are also part of the solution to compliance with the strict Mercury and Air Toxics Standards, which are also driving coal plants off the grid. But to get and keep those natural gas plants on-line, the natural gas needs to get there and to do that it needs a means of transportation, which for natural gas, means pipelines. How many miles of pipelines are needed? EPA concluded: "the power industry in aggregate can support higher gas consumption without the need for any major investments in pipeline infrastructure." But the Nation's reliability watchdog, the North American Reliability Corporation, politely disagrees. In its November 2014 review, Potential Reliability Impacts of EPA's Clean Power Plan, NERC noted EPA's position, but then commented: "there are a few critical areas that likely will need additional capital investments. As an example, current and planned pipeline infrastructures in Arizona and Nevada are inadequate for handling increased natural gas demand due to the CPP. Pipeline capacity in New England is currently constrained, and more pipeline capacity additions will be needed as more baseload coal units retire." And that was not the end of it. NERC concluded that more pipeline capacity was needed independent of Clean Power Plan retirements. Further, as should be obvious, pipeline construction will not occur in an instant. NERC points out that "it takes three to five years to plan, permit, sign contract capacity, finance, and build additional pipeline capacity." In other words, planning and permitting of new pipelines is required now if the EPA's initial 2020 compliance date is to be met. But as we reported in a recent post, States aren't even drafting their implementation plans, much less making determinations about what plants to shut down and where pipelines need to be built.Which suggests that we should ask the miles-of-pipeline-needed question again. We have not seen that number but NERC reports that, based on EPA's own estimates for plant retirements due to the Clean Power Plan and other regulatory requirements (primarily the Mercury and Air Toxics Standard), "the power industry will need to replace a total of 103 GW of retired coal resources by 2020, largely anticipated to be natural-gas-fired NGCC and CTs. We tried to compare 103 gigawatts to Keystone XL's 850,000 barrels of oil per day. We came up with a rather stunning number: the energy needed to replace the to-be-retired coal plants is almost 2000 times more than Keystone XL can deliver.* Which leads us back to the beginning of this post: the real action in pipeline permitting is going to be in natural gas. *A barrel of oil contains about 1700 kW-h of energy. So Keystone XL will deliver 850,000 bbl x 1700 kW-h or 1.445 x 10e9 W-h in one day. 103 GW of coal plants operating for 24 hours yields 2472 x 10e9 W-h.

Carbon Dioxide | Legislation | Regulation | Utilities

Is RGGI in New Jersey's and Pennsylvania’s Future?

June 14, 2014 08:02
by John McAleese
With the release of EPA’s proposed regulation of CO2 from existing sources on June 2, there has been a lot of speculation that states will look to cap-and-trade schemes as a means of complying with EPA’s mandate that the states reduce CO2 emissions by 30% of 2005 levels by 2030. The Regional Greenhouse Gas Initiative (RGGI) provides an existing market-based framework for states in the northeast, and maybe nationwide, to implement cap-and-trade on an interstate basis. RGGI is currently a voluntary, interstate greenhouse gas emissions trading platform among Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island and Vermont. For New Jersey, which was in RGGI at one time but withdrew under the Christie administration, the new EPA regulations, assuming they become final in substantially the same form, give it the opportunity to re-think its decision to withdraw several years ago. So far, the New Jersey regulators have indicated that they are not willing to re-join RGGI, even as means of complying with the new EPA regulations. There are certainly other means for the state to achieve the emissions reductions called for by the EPA regulations such as limits with no trading, or mandates on use of non-CO2-emitting generation such as solar, wind and nuclear. However, the cap-and-trade structure provided by programs like RGGI offers sources the economic incentives for voluntary reductions even beyond what is called for by the EPA regulations. Time and pressure from the regulated community may change this position over the next several years – wait and see. Pennsylvania’s situation is even more intriguing. There is a Pennsylvania gubernatorial election this November. Pennsylvanians will vote either to keep the incumbent Republican, Tom Corbett, or to replace him with Democratic candidate, Tom Wolf. At the Pennsylvania Environmental Council’s Annual Philadelphia Dinner on Wednesday night, both candidates spoke to the mixed crowd of representatives of environmental groups, government and industry. Governor Corbett did not mention either RGGI or the proposed EPA CO2 emissions regulations, but he did signal his continuing support for natural gas production in the Commonwealth through fracking as a means to provide cleaner energy for Pennsylvania, and his belief that environmental stewardship is important but must be “balanced” with economic considerations. Mr. Wolf, on the other hand, unequivocally stated that, if elected Governor, he will “bring RGGI to Pennsylvania!” Several members of the crowd clapped enthusiastically, while everyone else remained quiet in anticipation of the dinner which had yet to be served. It will be interesting to see whether this limb that Mr. Wolf climbed (jumped) out on will sustain the weight of five more months of what is sure to be a heated campaign. There is a very good potential that this issue will become an important hot button in the election.

Carbon Emissions | Greenhouse Gases | Legislation | Regulation

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