Energy Legal Blog

The Commodity Futures Trading Commission (CFTC) voted unanimously April 27 to designate seven natural gas contracts traded on the Intercontinental Exchange Inc. (ICE) as “significant price discovery contracts,” or SPDCs.  These actions represent the U.S. Government’s first significant foray into the regulation of over-the-counter (OTC) derivatives transactions, which are currently the subject of Congress’s attention in Washington.  In addition, these actions may evidence the CFTC’s interest in pursuing increased enforcement efforts and a greater presence in the energy sector. The CFTC has yet to act on 16 electricity contracts and one refined petroleum contract that have been identified in the Federal Register as potential SPDCs. (more…)

On May 13, 2010, the United States Environmental Protection Agency (EPA) issued its final tailoring rule for greenhouse gas (GHG) emissions that determines which stationary sources need to obtain GHG permits.  The Clean Air Act (CAA) expressly imposes a requirement that stationary sources with emissions that exceed either 100 or 250 tons per year (depending on the type of source) must obtain permits from EPA.  Because thousands of sources, including small businesses, hospitals, and schools, may release more than 250 tons of GHG emissions per year, EPA developed a tailoring rule that purports to phase-in the permit requirement, starting with large stationary sources.  EPA fears that if thousands of sources needed to regulate their GHG emissions, the agency would be overwhelmed by the need to issue the Prevention of Significant Deterioration (PSD) and Title V operating permits for all of these sources. (more…)

On April 12, 2010, EPA published in the Federal Register a revised proposal for requiring petroleum and natural gas systems to report greenhouse gas (“GHG”) emissions starting January 2011.  The proposed rule would apply to the calculation, measurement, and reporting of vented, fugitive, and flare combustion emissions from facilities that emit equal to or greater than 25,000 metric tons of CO₂ equivalent per year.  Covered sources include: (more…)

In conjunction with SMU’s Cox Maguire Energy Institute, the Bush Institute on Economic Growth recently brought together leaders in the natural gas field to discuss what needs to be done to make America’s explosively growing reserves of natural gas a “true game-changer” in environmental, economic and national security terms. Bracewell & Giuliani’s Jason Hutt joined a panel discussion investigating natural gas’ role in economic growth and national security. (more…)

Last week, the White House Council on Environmental Quality (CEQ) released a draft guidance describing how and when climate change considerations should factor into the environmental impact assessments that federal agencies prepare under the National Environmental Policy Act (NEPA).  The draft guidance is important for anyone proposing to build infrastructure, such as power plants, pipelines and large industrial facilities, since it will influence whether and under what conditions federal agencies  issue permits and other approvals.  Most federal approvals for large projects are subject to NEPA, which requires impact assessments as an aid to federal decision-making. (more…)

On February 16, 2010, President Obama announced that DOE had offered $8.3 billion in conditional commitments for loan guarantees for two new nuclear reactors to be built at the Vogtle Electric Generating Plant in Burke, Georgia. This announcement came on the heels of the release of Obama’s FY 2011 budget which proposed tripling the current loan guarantee authority for nuclear projects. These two actions signal a renewed willingness on the part of the Administration to support nuclear power as an essential ingredient in the nation’s future energy supply. (more…)