The debate over the future of net metering and the proper valuation of distributed energy resources has reached Congress. In the wake of a debacle over retroactive changes to net metering rules in his home state of Nevada, Senator Harry Reid (with Senator Angus King of Maine) recently proposed legislation on the subject. The proposal, known as Amendment 3120 would add language to Section 111(d) of the Public Utility Regulatory Policies Act of 1978 ( PURPA) aimed at protecting net metering customers from retroactive changes to net metering rules and requiring any such changes to consider the benefits of distributed energy resources.
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Biomass Facilities Lose CO2 “Deferral”
The U.S. EPA greenhouse gas regulations provided biomass facilities with an important incentive – a unique “deferral” from having to achieve established CO2 emission limits. For certain biomass facilities not being regulated for CO2 emissions had significant benefits from both a capital and operational cost perspective. There likely are a number of biomass facilities which currently owe their financial viability to the deferral.
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Unconventional Compromises on Natural Gas Regulation
While New York’s natural gas resources remain locked down between perpetual regulatory limbo and extreme polarization among interest groups, recent events have proven that compromise is possible.
Last month, a coalition of environmentalists, industry representatives and lawmakers in Illinois reached a tentative agreement that would allow development of that state’s shale resources, ironically named the New Albany formation, to move forward. The negotiations were led by Illinois State Representative John Bradley, a democrat who lives in the area prospective for natural gas development.
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D.C. Circuit Issues Mixed Ruling on Biofuels Targets
The D.C. Circuit delivered a mixed decision recently regarding an American Petroleum Institute (“API”) challenge to the 2012 EPA Rule (“2012 Rule”) outlining blending requirements for cellulosic biofuels. Cellulosic biofuel is an advanced biofuel that comes from sources such as switchgrass and agricultural wastes.
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A Post-Tax Credit “Incentive” for Renewable Energy Development
By Susan Marriott
The U.S. Senate’s recent vote to repeal $5.4 billion worth of ethanol subsidies indicates an uncertain future for many renewable energy incentives. In fact, the current climate in Congress appears generally hostile towards subsidies for any energy sector, with Democrats calling on Republicans to cut oil and gas subsidies and Republicans calling for the elimination of renewable energy subsidies. With renewable energy subsidies on the table as part of ongoing deficit-reduction negotiations, Congress will need to consider other policy options and tools if, after losing significant subsidy support, renewable energy is going to be able to compete economically with fossil fuels.
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“Tailoring” of the Environmental Protection Agency’s Greenhouse Gas Agenda
A key input into increased development of renewable energy projects in the U.S. is, and will continue to be, driven by U.S. EPA’s efforts to regulate greenhouse gasses (“GHG”). The nature and scope of GHG regulation, and Congress’ role in that effort, will be a material input into the renewable energy market. I encourage you
Renewable Energy and Tribal Nations
On January 19th U.S. Energy Secretary Steven Chu announced a new initiative to promote tribal renewable energy development. According to the DOE’s announcement, up to $10 million will be made available through DOE’s Tribal Energy Program to support, among other things, renewable energy projects on tribal lands.
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Will Obama’s Regulatory Review Order Help Renewables?
On January 18, 2011 President Obama signed an Executive Order to improve federal regulation as well as review existing regulations that may be outmoded or ineffective.
The Order, among other things, looks to coordinate regulation across agencies, reduce duplicative or overlapping regulations, and to foster increased participation by industry, experts and other stakeholders in the regulatory process.
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