Energy Legal Blog

A host of industrial facilities across the country face being subject to permitting rules and other regulatory requirements under the Environmental Protection Agency’s Greenhouse Gas Tailoring Rule. The rule stands to impact facilities that were previously considered “minor” sources of air pollution – including gas processing plants, fractionating plants, compressor stations and other midstream energy assets. (more…)

As has been well reported, EPA will miss its September 30 deadline for releasing its draft rule on utility-focused greenhouse gas emissions. While a new deadline has not yet been announced for the rule, which focuses on reducing emissions from oil refineries and power plants, EPA administrator Lisa Jackson stated that reducing greenhouse gas emissions in power plants is still a priority for the agency, and that a new schedule for the rulemaking will be released shortly. (more…)

The House Energy and Commerce Committee’s Subcommittee on Oversight and Investigations will hold a hearing on Wednesday, September 14 at 9:30 a.m. on Solyndra and the DOE loan guarantee program. Solyndra is a solar panels manufacturer based in California that received a $535 million loan guarantee from the Department of Energy.

Those invited to testify include Deputy Director of OMB Jeffrey Zients, DOE Loans Programs Office Director Jonathan Silver, and Solyndra executives Brian Harrison and Bill Stover. Last Friday, news reports focused on FBI visits to the homes of company founder Chris Gronet and CEO Brian Harrison.

Despite facing clear reliability problems because of record temperatures in Texas, Luminant said today they will close facilities to comply with EPA’s Cross-State Air Pollution Rule, which will cause the loss of approximately 500 jobs.  The rule, which EPA released earlier this summer, requires Texas power generators to make dramatic reductions in emissions beginning January 1, 2012.

While the company is making preparations to meet the rule’s compliance deadline, this morning it also filed a legal challenge in an effort to protect facilities and employees, and to minimize the harm this rule will cause to electric reliability in Texas. To meet the rule’s unrealistic deadline and requirements, Luminant said it reluctantly must take the difficult steps of idling two generating units and ceasing mining Texas lignite at three mines. Luminant will also implement several other actions to reduce emissions, including making substantial investments in its facilities. Since 2005, Luminant has achieved a 21% reduction in SO2 emissions, while at the same time increasing generation by 13%.

Bracewell & Giuliani partner Rich Alonso appeared on E&E TV’s OnPoint program to discuss the Obama administration’s recent retreat on ozone standards, and whether this signals a shift on greenhouse gas regulations. Alonso and E&E TV managing editor Monica Trauzzi also discussed other issues of concern to the energy industry, including Utility MACT, NSPS proposals for greenhouse gases, and the cross-state air pollution rule.

To watch the interview, click the image below or here.