Renewable Energy

Fish and Wildlife Service Proposes to Reclassify Northern Long-eared Bat as Endangered

The U.S. Fish and Wildlife Service (FWS) is proposing to change the classification of the northern long-eared bat (NLEB) from threatened to endangered under the Endangered Species Act (ESA). Reclassifying the NLEB will have major implications for development projects throughout the U.S., particularly in wind energy development.

The FWS classifies a species as threatened when the species is likely to become endangered within the foreseeable future in all or a portion of its range. A species is endangered when it is in danger of extinction throughout all or a significant portion of its range.

Due to the fungal disease white-nose syndrome, the NLEB has experienced a steep decline in population across its 37-state range, which includes Maine, New Hampshire, and Massachusetts. In 2015, the FWS classified the NLEB as threatened due to the decline in population, and issued an ESA Section 4(d) rule allowing an incidental “take” of NLEB subject to certain conditions.

In 2020, under court order, the

Massachusetts Legislature Moves Forward with Reforms that Would Reshape the Energy Sectors to Achieve Climate and Economic Development Goals

On April 7, 2022, Massachusetts Senate Ways and Means Committee issued its response to an earlier House Ways and Means Bill (House No. 4524).  The Senate bill, Senate No. 2819, revised a number of features of the earlier House bill with respect to the Commonwealth’s procurement of offshore wind energy, but also addressed a range of issues focused upon climate matters.  The Senate bill also included a range of provisions to advance electric vehicles, other forms of renewable energy, real estate development that advances climate goals and fundamentally alter consumers’ options by eliminating the competitive retail electricity supply market and decarbonizing the natural gas industry, as summarized below.

What’s next?  We understand that the Senate will be taking amendments to the bill during the next few days and that the Senate will likely adopt a form of Senate No. 2819 later this month.  The House will likely adopt a different version of the bill, resulting in the establishment of a conference committee to work out the

DER Aggregations in RTO/ISO Markets: An Update on FERC Order No. 2222 Compliance and Implementation

In September of 2020, the Federal Energy Regulatory Commission (“FERC” or “Commission”) issued Order No. 2222,[1] requiring Regional Transmission Organizations (“RTOs”) and Independent System Operators (“ISOs”) to adopt rules allowing aggregations of distributed energy resources (“DERs”) to participate in the RTO/ISO-administered wholesale electricity markets.  Now, a year-and-a-half later, the compliance process for each RTO and ISO is ongoing, the proposed implementation timelines for the market rules vary widely, and numerous legal and technical challenges remain to be resolved. Below is an overview of the current status of RTO/ISO efforts to implement Order No. 2222, certain related industry activities, and various implementation challenges that have come to the fore through those market design efforts.

Background

FERC issued Order No. 2222 to “remove barriers” to DER aggregations’ participation in RTO/ISO markets, and to help ensure that the RTO/ISO markets produce just and reasonable rates as required by the Federal Power Act.  Under FERC’s definition, DERs are “any resource located on the

Slimmed Down Energy Tax and Social Spending Package Targeted for Vote Before August

A slimmed down version of the Build Back Better bill is reportedly in discussions between the Biden Administration and Senator Joe Manchin (D-W.Va). The Build Back Better bill has been stalled in Congress due to opposition by Senator Manchin. The new discussions come as welcomed news as the wind production tax credit is set to expire this year, and the solar investment tax credit continues to phase down. Current law also does not include tax incentives for stand-alone energy storage projects.  Experts generally agree that prices for renewable energy development will increase absent legislative action.

According to the Washington Post, Senator Manchin has said that he would seek to bring the package to a vote prior to the August recess. Following the recess it becomes more difficult to move major legislation in advance of midterm elections

The bill is said to include an extension of the solar investment tax credits and wind production tax credits along with other clean energy provisions contained in the

Key Energy Provisions in Biden Administration’s $1.2 Trillion Infrastructure Investment and Jobs Act

On November 15, 2021, President Biden signed into law the $1.2 trillion Infrastructure Investment and Jobs Act. The Act earlier passed both Houses on a bipartisan basis. In conjunction with its passage, President Biden issued an Executive Order outlining the Administration’s priorities for dispersing monies from the infrastructure law, and establishing a task force that will coordinate the law’s implementation among federal agencies and state, local, and tribal governments. The task force will be jointly headed by former New Orleans Mayor Mitch Landrieu and Brian Deese, Director of the President’s National Economic Council, and will include the heads of the Office of Management and Budget, the Domestic Policy Council, the White House Climate Policy Office, and Cabinet members from the affected federal agencies, including the Departments of Transportation, Interior, Energy, and the Environmental Protection Agency (EPA).

The law represents the first part of the Administration’s two-pronged plan for federal investment in U.S. infrastructure. The second part, a proposed $1.85 trillion social spending

State Climate Legislation Takes Aim at Natural Gas Industry

This is the second post in an ongoing series focused on how state and federal measures addressing climate and carbon reduction are affecting the natural gas industry. You can find the first post in this series here.

Nevada

In the latest effort to phase out or reduce the use of natural gas, a bill was introduced to the Nevada Legislature on March 23, 2021 (A.B. 380) that would set emissions reduction targets for buildings over the next 30 years to achieve a 95% decrease in emissions from buildings by 2050. The latest bill builds on Nevada’s 2019 climate strategy, which established a goal of economy-wide net-zero emissions by 2050.[1]

The bill would direct the Nevada Public Utilities Commission (“Nevada PUC”) to open an investigatory docket to examine how gas utilities can assist the state in achieving its 2050 emissions goal and how gas utilities can maintain safety standards

Clean Energy Stands to Win Big with Biden Administration’s Proposed Infrastructure Plan

On March 31, 2021, President Biden released his $2 trillion infrastructure plan (the “Infrastructure Plan”) intended to target grid modernization, energy efficiency, and renewable energy development as part of the Administration’s ongoing effort to achieve a net-zero emissions power sector by 2035, and net-zero economy by 2050. In response to the recent Texas power crisis, the Infrastructure Plan proposes a $100 billion investment to modernize the electric grid with at least 20 GW of high-voltage capacity power lines. The Biden Administration also proposes creation of a Grid Deployment Authority at the Department of Energy to leverage existing rights-of-way and support creative financing tools to encourage high-voltage transmission lines.

The Infrastructure Plan proposes a 10-year extension and phase down of an expanded direct-pay investment tax credit and production tax credit for clean energy generation and storage. The Biden Administration also proposes creation of an Energy Efficiency and Clean Electricity Standard (EECES) aimed at cutting electricity bills and electricity pollution, increasing competition in the market, incentivizing efficient use

The Natural Gas Industry in a Climate-Focused Future: Regulators Take Action to Adapt

Introduction

Climate change policies at the state and federal levels will have significant impacts on natural gas companies and their customers.  On the one hand, there is pressure on companies to maintain safe and reliable service – on the other, the push for net-zero carbon emissions by 2050.  These competing objectives will have notable effects on how companies conduct their long-term planning to maintain system reliability while avoiding potential stranded costs and safeguarding ratepayers.  This post and subsequent updates will focus on how federal and some state regulators are addressing the issues.

Federal

The Biden Administration’s clean energy plan, which calls for a 100% clean energy economy by 2035 and net-zero emissions economy-wide by no later than 2050, has sparked an increased focus on achieving these goals. To reach net-zero by 2050, the Biden Administration plans to invest $1.7 trillion in federal funds in clean energy research and modernization, deploy zero emission vehicles across the government, and enforce

Energy Infrastructure in Biden’s Administration: What You Need to Know

President elect Joe Biden has set forth two comprehensive plans targeting clean energy and climate change (collectively “The Biden Energy Plan”).[1]  The Biden Energy Plan seeks to aggressively pursue a net-zero (carbon neutral) power sector by 2035 and a net-zero U.S. economy by 2050. Additionally, themes from Biden’s Build Back Better plan for job growth and economic recovery are interwoven throughout the Biden Energy Plan.

The Biden Energy Plan is comprised of the following major initiatives:

Biden Energy Plan Commitments for Day 1 of the Biden Administration

On Day 1 of Biden’s administration, Biden plans to put the Biden Energy Plan into action by requiring methane pollution limits for new and existing oil and gas operations, developing new fuel economy standards, aiming for 100% of sales for light- and medium-duty vehicles to be zero emissions, and protecting federal lands and waters from new oil and gas leasing.

Clean Energy Mobilization at the Federal Level

To

Green Power and the 2020 California Blackouts

This week, California experienced its first blackouts in nearly 20 years. On August 19, the California Independent System Operator (“CAISO”) issued another state-wide flex alert, calling on the public to reduce energy use to prevent rotating power outages. As the state’s heat wave enters its seventh day, the temperature in California today will again reach dangerous levels and will continue to strain the system. While the exact cause of the recent blackouts is under investigation, Assemblyman Jim Patterson pointed to the unreliability of renewable power and the state’s reduced dependence on natural gas.

CAISO called the events this week a “perfect storm,” caused by the heat wave and corresponding spike in demand, simultaneous loss of some sources of power, and inability to import out-of-state electricity. When the sun sets, electricity generated by solar facilities drops, removing thousands of megawatts of solar power from the system while demand, fueled by the record-breaking heat, remains high.

Despite allegations that renewables are unreliable, there is no indication