Regulation

Subscribe to Regulation via RSS

Nebraska filed suit against the U.S. Environmental Protection Agency (EPA) in federal court on Wednesday, challenging the agency’s newly proposed standards for greenhouse gas emissions from new power plants. Nebraska argues that EPA’s proposed regulation, officially released last week, violates the Energy Policy Act of 2005. The Act prohibits EPA from considering new technology or a level of emissions reduction to be “adequately demonstrated” under the Clean Air Act where the emissions reduction is achieved ‘solely by reason of the use of the technology’ by one or more facilities receiving funding under the Act. Under the Clean Air Act, any new source performance standard (NSPS) must be based on the “best system of emissions reduction” that EPA determines has been “adequately demonstrated.”

EPA has proposed a greenhouse gas NSPS for new fossil fuel-fired boilers, including coal-fired power plants, based on the partial implementation of carbon capture and storage (CCS). EPA’s notice of the proposed NSPS cites to various facilities that have successfully implemented CCS, adequately demonstrating the commercial viability of the technology as a basis for the stringent greenhouse gas emissions standard of 1,000 to 1,100 lb CO2/MWh. The flaw, Nebraska argues, is that the very CCS projects that support EPA’s determination have all received significant funding under the Energy Policy Act, which prohibits EPA from considering such technology as “adequately demonstrated.” Nebraska, and other critics of the proposed standard, argue that the proposed NSPS would severely limit the construction of any new coal-fired plants in the U.S. 

Nebraska’s lawsuit may be more of a political statement than anything, however. The suit challenges the proposed rule under the Administrative Procedure Act as a “final” action of EPA. The “proposed” NSPS was just released, however. The proposed rule is open for public comment until March 10, 2014 and may not be finalized by EPA until mid-2015. The Nebraska suit is wide open to challenge on the basis that the case is not ripe for judicial review until a final NSPS has been issued by EPA.

For more details on the proposed NSPS, including the standards proposed for natural gas-fired facilities,Continue Reading Nebraska Sues U.S. EPA Over Proposed Greenhouse Gas Emissions Standards for New Power Plants

This week the California Air Resources Board (ARB) released a draft of its AB 32 Climate Change Scoping Plan Update. The original Scoping Plan was adopted in 2008 and must be updated every five years. The Scoping Plan serves as a blueprint for achieving AB 32’s goal of reducing greenhouse gas (GHG) emissions to 1990 levels by 2020.

The draft Update summarizes programs implemented over the last five years under AB 32 and outlines actions necessary to continue California’s progress toward the 2020 emissions reduction goal. The draft Update shows that California is on track to meet the 2020 emissions reduction goal and inventories the progress made across different economic sectors and programs like cap and trade. With the Update, ARB continues its strategy of achieving AB 32 goals through a mix of emissions reduction measures, including regulatory programs, incentives, and market-based approaches.Continue Reading California Air Resources Board Issues Draft Update to AB 32 Scoping Plan

On November 2, 2009, just one day after the Minnesota Public Utilities Commission’s (the “Commission’s”) final order in Minnesota Power’s 2008 rate case, Minnesota Power filed its largest petition ever to increase electric rates.  As part of its petition, and consistent with Minnesota law, Minnesota Power sought to impose interim rates – the rates Minnesota…

Over 40 percent of the lands in Malheur County have been designated as core habitat for sage grouse by the Oregon Department of Fish and Wildlife ("ODFW"). Other counties in southeastern Oregon are also heavily affected. ODFW’s approach was to simply recommend against any development in core habitat, without consideration whether off-site mitigation could result…

A tentative ruling was issued yesterday in the related cases California Chamber of Commerce v. California Air Resources Board (ARB)  and  Morning Star Packing Co. v. ARB, pending before the Sacramento County Superior Court.  The cases challenge the legality of ARB’s cap and trade auctions under two theories:  (1) the cap and trade auctions…

On July 8, 2013, Xcel Energy Inc., submitted a filing with the SEC detailing an Administrative Law Judge’s decision in a pending electric rate case in Minnesota and calculating the decision’s impact on one of its subsidiaries. In November 2012, Northern States Power Company (NSP), a wholly owned subsidiary of Xcel Energy Inc., petitioned the Minnesota…

Last November, the Minnesota Public Utilities Commission approved Xcel Energy’s 2011-2025 Integrated Resource Plan and established various compliance filing requirements and deadlines. Pursuant to that November 2012 Order, the Commission directed Xcel to conduct a Life Cycle Management Study (“LCM Study”) examining the feasibility and cost-effectiveness of continuing to operate, retrofitting, or retiring Sherburne County…