Energy Legal Blog

The Federal Energy Regulatory Commission (“FERC”) recently determined in a case of first impression that states have limited authority to implement feed-in tariff programs, which generally seek to encourage “green” energy. For energy service companies and energy sellers seeking to take advantage of these programs, the order potentially dampens the prospects for feed-in tariffs to take off in the US, and, at a minimum presents additional FERC compliance considerations, discussed below.

Feed-in tariffs generally consist of three elements: (1) a state-fixed incentive rate designed to attract new sources; (2) a mandated offer to purchase power for a prescribed duration through long-term contract; and (3) a guaranteed access to the grid. (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…)

One month after the California PUC (CPUC) in a March 11 order authorized the use of a new form of renewable energy certificate — the tradable renewable energy certificate (TREC) — CPUC Chairman Peevey announced that the agency may consider scrapping the program altogether. These second thoughts reflect the tensions that played out during the nearly 3-year rulemaking between the utility desires for a liquid REC market and the state’s more parochial interest to site generation in-state. (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…)

Bracewell attorneys Jason Hutt and Matt Armstrong continue to guest blog this week on the National Law Review website about hydraulic fracturing (“fracing”), an increasingly important method of natural gas extraction. In an update to their recent post, they discuss today’s announcement by the EPA that the agency’s new fracing study is underway, which could provide additional weight to comments from industry and legislators – including most recently from members of the House Natural Gas Caucus – that Congress wait for the results of EPA’s study before moving on federal regulation related to fracing. For more information, click here.