Category Archives: Energy

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EU Commission Limits the Netherlands’ Plans to Subsidize Green Hydrogen Production

On Sept. 14, 2020 the Dutch minister of Economic Affairs and Climate informed the Dutch Parliament that the EU Commission does not consent to the granting of subsidies for the environmentally friendly production of hydrogen through sustainable energy (so-called ‘green hydrogen’) under the Dutch SDE++ scheme in the form requested by the Dutch government. State-aid … Continue Reading

New Jersey’s Environmental Justice Legislation: The Focus on Major Source Permit Applications Might Impact Property Values

Last month, I wrote about the “Environmental Justice for All Act,” a bill that proposes a finding that vulnerable populations are disproportionately burdened by environmental hazards. New Jersey is following the federal environmental justice debate, passing historical environmental justice legislation in both the House and Senate, where it is currently awaiting Governor Phil Murphy’s approval. … Continue Reading

UK’s Industrial Energy Transformation Fund Grants Now Available to Manufacturing Companies and Data Centre Operators

As of 20 July 2020, Phase 1 of the UK’s Industrial Energy Transformation Fund (IETF) is open for applications for grants, according to the Department for Business, Energy and Industrial Strategy (BEIS). The IETF, announced in the UK’s 2018 autumn budget, is designed to assist the transition of high energy use businesses into a lower … Continue Reading

FERC Approves the Overhaul of PURPA Regulations

On July 16, 2020, the Federal Energy Regulatory Commission (FERC or the Commission) approved a Final Rule revising the Commission’s regulations implementing the Public Utility Regulatory Policies Act of 1978 (PURPA) (See a prior GT Alert for more details on PURPA and FERC’s overhaul). The Final Rule will take effect 120 days after its publication … Continue Reading

Price-Anderson Act Removal of Litigation Involving a “Nuclear Incident”

“Configuration of terrain is an aid to the army. Analyzing the enemy, taking control of victory, estimating ravines and defiles, the distant and near, is the Tao of the superior general.” Sun-tzu, The Art of War 214 (Ralph D. Sawyer trans., Westview Press 1994). While the use of Sun-tzu’s strategy dramatizes a litigator’s role, the … Continue Reading

FERC Denies Anbaric Complaint, Announces Technical Conference to Examine Grid Access for Offshore Wind Projects

On Nov. 18, 2019, power line developer Anbaric Development Partners, LLC (Anbaric) filed a complaint before the Federal Energy Regulatory Commission (FERC) under sections 206 and 306 of the Federal Power Act against regional grid operator PJM Interconnection, L.L.C. (PJM), claiming that PJM’s transmission interconnection procedures in Sections 36.1.03 and 232 of the PJM Open … Continue Reading

Who is a Customer-Generator? Uncertainty Abounds for the Pennsylvania PUC

Last month, a three-judge panel of the Commonwealth Court of Pennsylvania held that certain net metering regulations of the Pennsylvania Public Utility Commission (PUC) are unenforceable. The regulations at issue are related to the implementation of Pennsylvania’s Alternative Energy Portfolio Standards Act (AEPS Act), which incentivizes the use of electricity generated by renewable sources such … Continue Reading

German and Dutch National Agendas Indicate Further Focus on and Investments in Hydrogen

On 10 June 2020, the German government published its long-awaited national hydrogen agenda. Earlier, the Dutch government also published its own hydrogen agenda and the policy overlap is clear: as far as the Dutch and the Germans are concerned, hydrogen will play an important role in the future energy supply of Europe. The Dutch government … Continue Reading

Commonwealth Court’s Invalidation of Pennsylvania PUC Defined Terms – Potential Net Metering Implications

On May 12, 2020, a three-judge panel of the Commonwealth Court of Pennsylvania held that certain net metering regulations of the Pennsylvania Public Utility Commission (PUC) are unenforceable. The regulations at issue are related to the implementation of Pennsylvania’s Alternative Energy Portfolio Standards Act (AEPS Act), which incentivizes the use of electricity generated by renewable … Continue Reading

Changes to Environmental Provisions of the USMCA Trade Agreement

The original text of the United States-Mexico-Canada Trade Agreement (“USMCA”) was amended by the Parties to the Agreement to clarify certain commitments made with respect to environmental and trade matters.  These amendments sought to clarify that the Agreements listed below could not be used to impair, modify or reduce the rights of investors and their investments … Continue Reading

Presidential Executive Order on U.S. Bulk Power System Equipment from ‘Foreign Adversaries’

On May 1, 2020, President Trump issued an Executive Order (EO) declaring a national emergency due to “foreign adversaries” that are “creating and exploiting vulnerabilities” in the U.S. bulk-power system (BPS). The EO prohibits “transactions initiated after May 1, 2020” for BPS electric equipment with voltages 69 kilovolt and above if the transaction would pose an undue … Continue Reading

FERC Upholds June 2018 PJM Minimum Offer Price Rule Order Thwarting State Subsidies

The Federal Energy Regulatory Commission (FERC) issued two orders denying rehearing and offering some clarity on the PJM Interconnection, LLC (PJM) Minimum Offer Price Rule (MOPR), a construct that potentially prevents new capacity-market sellers from depressing prices by offering at reduced prices to clear a capacity auction. The April Orders relate to FERC’s June 2018 order, which … Continue Reading

FERC Clarifies and Reaffirms ADIT Rules

The Federal Energy Regulatory Commission (FERC) issued Order 864-A on Public Utility Transmission Rate Changes to Address Accumulated Deferred Income Taxes (ADIT). Order No. 864-A addresses requests for clarification and rehearing concerning the obligation of public utilities with either transmission formula rates or transmission stated rates to return excess ADIT arising from the reduction in the … Continue Reading

Mexican Official Standard NOM-017-CRE-2019: Clean Energy Measurement and Compliance Assessment

The Energy Regulatory Commission (Comisión Reguladora de Energía, “CRE”) published Mexican Official Standard (Norma Oficial Mexicana) NOM-107-CRE-2019, Methods for measuring variables to calculate the percentage of clean energy and compliance assessment procedure (the “NOM”). We discuss the background, purpose, scope of application, measurement methods, compliance assessment, and oversight authority of the CRE. Read the full … Continue Reading

FERC Puts PJM’s Minimum Run-Time Proposal on Hold

On April 10, 2020, the Federal Energy Regulatory Commission (FERC) issued an order (April Order) on PJM Interconnection, LLC’s (PJM) proposal for minimum run-time requirements for capacity storage resources. The April Order relates to Order No. 841 from December 2018, which opened energy markets to energy storage, and a FERC order from October 2019, where … Continue Reading

Amendment to Mexico’s Energy Transition Law

The Decree, from the Chamber of Deputies, provides that the Transition Strategy to Promote the Use of Cleaner Technologies and Fuels (Estrategia de Transición para Promover el Uso de Tecnologías y Combustibles más Limpios) issued by the Ministry of Energy, which contains policies and measures to promote the use of the country’s renewable energy resources, … Continue Reading

New York State Legislature Passes Renewable Energy Siting Law In Step Toward Meeting Ambitious Renewable Energy Mandates

With New York Governor Andrew Cuomo pronouncing the state’s process for siting renewable energy projects broken, the New York State legislature late yesterday passed sweeping reforms to the siting of large renewable energy projects proposed by the Governor, setting a firm one-year deadline for final siting decisions, as well as committing to study and plan … Continue Reading

Mexico’s SENER and SEMARNAT Suspend Activity Until April 20

This past week, Mexico’s Ministry of Energy (SENER) and Secretariat of Environment and Natural Resources (SEMARNAT) published official communications to suspend activity until April 20. These decisions impact terms, deadlines, promotions, and administrative procedures. To learn more about how this decision applies, please refer to my Alerts: Mexico’s Ministry of Energy Suspends Terms and Deadlines … Continue Reading

IRS Takes First Steps to Implement Carbon Capture Tax Credit

On Feb. 19, 2020, the Internal Revenue Service released partial guidance on the implementation of section 45Q tax credits related to the capture and sequestration of carbon dioxide. The section 45Q tax credit was updated on Feb. 9, 2018, as part of the Bipartisan Budget Act (Pub. L. 115-123) to increase the amount of the … Continue Reading

New York’s Accelerated Renewable Energy Growth and Community Benefit Act Sends Positive Signals to Renewable Energy Developers, and Revamps Renewable Siting

In January 2020, in his annual budget address, New York Gov. Andrew M. Cuomo proposed a complete overhaul of renewable energy siting. In his 30-day amendments to the executive budget, he proposed the Accelerated Renewable Energy Growth and Community Benefit Act (the “Act”). The proposal would apply to large and mid-sized renewable projects, energy storage, … Continue Reading

Fourth Circuit Rejects Statute of Limitations Challenge to FERC Electricity Market Manipulation Suit

On Feb. 11, 2020, the United States Court of Appeals for the Fourth Circuit decided that the Federal Energy Regulatory Commission (FERC) did not overstep the statute of limitations in its effort to impose more than $29 million in civil penalties over alleged wholesale electricity market manipulation carried out by Dr. Houlian Chen and other associated financial … Continue Reading

New York Governor Andrew Cuomo Proposes Radical Reshaping of Siting Process for Renewable Projects

In his annual budget address on Jan. 21, 2020, New York Governor Andrew M. Cuomo proposed a complete overhaul to New York’s siting of renewable energy projects. Noting that siting a project under the current Article 10 process takes 5-10 years to begin construction, the governor found that the current process simply does not work. … Continue Reading

The Dutch Supreme Court Obliges the Dutch Government to Reduce Greenhouse Gas Emissions

On 20 December 2019 the Dutch Supreme Court delivered its judgment in the case of Urgenda against the Dutch State. In 2013, the NGO Urgenda started a civil law procedure against the Dutch State for “knowingly exposing its own citizens to danger” by not taking sufficient measures to prevent climate change and therefore not preventing … Continue Reading
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