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Oregon legislators passed Senate Bill (SB) 1547 into law yesterday, creating aggressive timetables for eliminating coal-fired electricity from the State and setting a 50% Renewable Portfolio Standard (RPS) by 2040. A diverse group of utilities, consumer advocacy organizations, and renewable energy advocates support the bill.  Next stop for SB 1547 is Oregon Governor Katherine Brown’s desk, where she is expected to sign the bill into law.

Key provisions and significance of SB 1547 include:

50% RPS by 2040

Oregon’s two largest utilities – PacifiCorp and PGE – will have a 50% RPS standard by 2040, meaning 50% of their electricity supply must be derived from renewable energy sources. The two largest utilities serve approximately 70% of Oregon customers’ electricity needs. There was no change to the existing requirements on consumer-owned utilities.

  • This is one of the most aggressive RPS standards in the nation, matched only by California and New York, which have a 50% target by 2030, Vermont, which has a 75% target by 2032, and Hawaii, which has a 100% target by 2045.
  • The existing ratepayer protections relating to RPS compliance were retained, capping the incremental costs of compliance at 4% of the utilities annual revenue requirement for a compliance year. A new provision was added to permit the Oregon PUC to temporarily suspend RPS compliance if the utility determines that grid reliability is seriously compromised.
  • The Oregon PUC will implement competitive bidding rules governing electric companies’ RPS implementation plans to ensure that electric companies acquire electricity from diverse renewable energy generators.

Continue Reading Oregon legislators pass historic renewable energy bill, with 50% RPS and coal-fired electricity phaseout

Maine appears poised to replace its net-energy metering (NEM) program with new legislation that is projected to increase the state’s solar photovoltaics (PV) penetration by over 12 times the current installed capacity by 2022. The legislation has the support of a broad coalition of consumer advocates, utilities, solar installers and environmental advocates, by contrast to…

Ed. – originally authored by Kevin Johnson and Thomas Wood.

The U.S. Supreme Court’s order on February 9, 2016 staying EPA’s implementation of the Clean Power Plan (CPP) will create at least a year of uncertainty about the shape of the future electric power regulatory framework, with implications for states, utilities and other electric power providers, and for the many other stakeholders potentially affected by the CPP. The CPP is the regulatory program issued by EPA on October 23, 2015, that requires states to develop plans to reduce carbon (CO2) emissions by meeting either state-specific mass caps (tons/year) or state-specific emission rate intensity limits (lb/netMWh).   The CPP seeks to establish a whole new style of regulation using authority under section 111(d) of the Clean Air Act.

Supreme Court Halts CPP Implementation

Twenty-nine (29) states and a number of utilities, labor unions and trade associations challenged the legality of the CPP.  These appellants sought a stay of the rule from the D.C. Circuit in November 2015.  The petition for a stay was denied on January 21, 2016.  The appellants then appealed to the U.S. Supreme Court — a move that most pundits thought was futile as it is extremely rare for the Supreme Court to grant such a stay.  In order to grant a stay, the Court needed to find that if the D.C. Circuit were to uphold the CPP, (1) there is a reasonable probability that four Supreme Court Justices would vote for review of the D.C. Circuit opinion; (2) there is a fair prospect that a majority of the Supreme Court would vote to reverse the D.C. Circuit’s opinion upholding the CPP; and (3) that there is a likelihood that immediate, irreparable harm would result from the denial of a stay.  By granting the stay, it appears that five of the nine Supreme Court justices (Roberts, Scalia, Alito, Kennedy and Thomas) indicated that they believe there is a fair prospect that they would vote to overturn the D.C. Circuit were the D.C. Circuit to uphold the CPP.  The Court’s action prevents EPA from further implementation of the CPP until the petitioners’ appeal is decided. The underlying challenge to the CPP is proceeding on an expedited schedule with oral argument set for June 2 and 3, 2016.

In addition, another factor in the Court’s stay decision was likely the pending deadlines for states to take compliance actions. The deadline for states to submit initial plans demonstrating how they would comply with the CPP was September 6, 2016.  While virtually all states were likely to request an extension for plan submittal until September 2018, states still needed to show progress on their plans by this September, and many states, including several of the 29 appellant states, were beginning the planning process.

Next Steps: Back to the D.C. Circuit
Continue Reading U.S. Supreme Court Stays Clean Power Plan Implementation: Next Steps

The California Public Utilities Commission yesterday adopted – by a 3-2 vote – a proposed decision revising the net energy metering (NEM) tariff for customers of the state’s three largest utilities who install renewable distributed generation (DG) on their properties. To the dismay of the dissenting commissioners, the final decision adopted late proposed changes that…

In the biggest consumer energy story of the day, and perhaps the decade, the U.S. Supreme Court today upheld FERC’s jurisdictional authority in FERC Order 745. Read the Decision here (PDF). The so called Demand Response Rule permits consumer energy products and services, such as demand response, to participate in wholesale energy markets, and to…

On January 19, 2016, the U.S. Department of Justice (DOJ) dropped its Ninth Circuit appeal of U.S. District Judge Lucy Koh’s ruling that set aside the U.S. Fish and Wildlife Service’s (“Service”) rule to extend the maximum term for programmatic “take” permits under the Bald and Golden Eagle Protection Act (“Eagle Act”) to 30 years for failure to comply with the National Environmental Policy Act (“NEPA”).

As we discussed in our previous post,  in August 2015 the court set aside the 30-year rule on NEPA grounds, concluding that the Service had “failed to show an adequate basis in the record for deciding not to prepare an EIS–much less an EA–prior to increasing the maximum duration for programmatic eagle take permits by sixfold.” The Court found the Service’s reliance on certain U.S. Department of Interior categorical exclusions misplaced. According to the Court, the Service failed to establish that the decision was “administrative” or “procedural” in nature and failed to address concerns by its own experts that the rule revisions might have highly controversial environmental effects.  Importantly, however,  the court’s decision to set aside the 30-year rule only applied to the 30-year permit tenure provision of the 2013 rule amendments. Other components of the 2013 rule amendments were left intact, including the 5 year permit renewal and assignment provisions.
Continue Reading U.S Fish and Wildlife Service Opts Not to Appeal 30-Year Eagle Rule Decision, Focuses on Development of Eagle Permitting Program

Midcontinent Independent System Operator (MISO) is proposing another round of interconnection queue reform.  On December 31, 2015, MISO filed proposed revisions to its Open Access Transmission, Energy and Operating Reserve Markets Tariff with the Federal Energy Regulatory Commission (FERC). The revisions, which amend MISO’s Generator Interconnection Procedures, would be MISO’s fourth significant set of queue…

The Utah Public Service Commission (PSC) issued its decision today on PacifiCorp’s request to shorten the maximum term of power purchase agreements (PPAs) with qualifying facilities (QFs) from 20 years to three years.  The PSC agreed to reduce the maximum term from 20 to 15 years, concluding:  “We believe a 15-year term strikes the appropriate…

*Update: Xcel has now filed its revised tariff (pdf)

The Minnesota Public Utilities Commission published its Order (pdf) Tuesday approving Xcel Energy’s revised tariff for its Community Solar Garden Program contingent on certain changes being made. After Xcel Energy filed its tariff following programmatic changes made by the Commission earlier in the year, several…

The California Public Utilities Commission released a proposed decision yesterday in its proceeding concerning the future of net energy metering (NEM) for customers of the state’s three largest utilities who install renewable distributed generation (DG) on their properties. In comments filed in early-August, Pacific Gas and Electric (PG&E), Southern California Edison (SGE), and San…