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Minnesota solar developer SolarStone Partners, LLC filed a Motion for Clarification of the Minnesota Public Utilities Commission’s September 2014 Order Approving Solar-Garden Plan with Modifications. Specifically, SolarStone is requesting clarification of the Commission’s interpretation of the requirement in the Community Solar Garden Statute that a project must be located within the utility’s service territory. One…

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

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

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…

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…

The U.S. Supreme Court heard oral argument this morning in FERC v. Energy Power Supply Association. At issue is the validity of FERC’s Order 745, the so-called “demand response” compensation rule. Full text of the rule (PDF). As some of our readers may recall, I was FERC Chairman when Order 745 was issued.

While…

The California Public Utilities Commission (CPUC) could soon make big changes to how rooftop solar installations function in the state. Under Assembly Bill 327, enacted in 2013, the CPUC has until December 31, 2015 to “develop a standard contract or tariff” that applies to “customer-generators” who own rooftop solar installations or other distributed generation…

Xcel Energy announced this afternoon its intent to cease coal-fired generation at Sherco Units 1 and 2 in 2026 and 2023, respectively, while adding 1,200 MW of new renewable sources (800 MW of wind and 400 MW of solar) by 2020.  According to the Xcel Energy website, Sherco Unit 1 has a generating capacity…

In a speech at the Rocky Mountain National Wildlife Refuge, Interior Secretary Sally Jewell announced yesterday that the U.S. Fish and Wildlife Service (USFWS) will not list the greater sage-grouse under the Endangered Species Act (ESA). Finding that protection under the ESA is no longer warranted due to an “unprecedented conservation partnership,” the USFWS announced that it was withdrawing the species from the candidate list.   The decision comes roughly a week before a court-ordered deadline for a decision.
Continue Reading U.S. Fish and Wildlife Service Determines Protection for Greater Sage-Grouse No Longer Warranted

Last Friday, September 11, 2015 was the final day for California legislators to pass bills out of the Legislature and on to Governor Jerry Brown for consideration. This year’s crop of bills included something for both sides of the aisle on energy and climate change issues: from the proposed repeal of AB 32, the California law mandating greenhouse gas (GHG) emission reductions, to bills to set a higher GHG reduction target for 2050 and cut petroleum use in half, and from a proposed leap in the state renewable portfolio standard (RPS) to 50% and incentives for geothermal, biomethane, and alternative fuels, to the repeal of solar water heating loan incentives. Some big ticket items passed, most failed to pass out of the Legislature before the deadline and can be considered in 2016 during for the second half of the two-year California legislative session. Time for the post-mortem.
Continue Reading California Legislative Session Wrap-up