Federal Agencies Respond to Trump Order to Evaluate Regulatory Burdens on Energy Independence and Economic Growth

Posted on October 27, 2017 by Amber Martin

On October 25, 2017, the Department of Energy (DOE), Environmental Protection Agency (EPA), and the Federal Energy Regulatory Commission (FERC) issued their final reports on how each of the agencies is working to reduce regulatory burdens and promote energy production and economic growth.  The agencies’ reports respond to a directive in President Trump’s Executive Order 13783 which, in part, required federal agencies to undertake a review of all federal rules that “potentially burden the development or use of domestically produced energy resources, with particular attention to oil, natural gas, coal, and nuclear energy resources.”

The DOE report makes four pointed recommendations to reduce unnecessary burdens on the development and use of domestic energy resources:  (1) streamline natural gas exports; (2) review National Laboratory polices; (3) review National Environmental Policy Act regulations; and (4) review the DOE Appliance Standards Program.

In its report, EPA also targets four key burden-reduction areas: (1) comprehensive New Source Review reform; (2) National Ambient Air Quality Standards reform; (3) robust evaluations of the employment effects of EPA regulations; and (4) a sector-based outreach program.

FERC’s report takes a less rigid approach, and identifies several potential areas the Commission may consider for reform in four jurisdictional areas: (1) hydropower licensing; (2) liquefied natural gas and natural gas pipeline and storage facility siting; (3) centralized electric capacity market policies; and (4) electric generator interconnection policies.

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Federal Agencies Focus on Cybersecurity Threats Facing Energy Sector

Posted on October 24, 2017 by Jeff Bayne

Last week, the Department of Homeland Security (DHS) and the Federal Bureau of Investigation released a joint Technical Alert entitled Advanced Persistent Threat Activity Targeting Energy and Other Critical Infrastructure Sectors.  The Technical Alert focuses on potential cyber threat targets in the energy, nuclear, water, aviation, and critical manufacturing sectors.  It describes recent threats as “a multi-stage intrusion campaign by threat actors targeting low security and small networks to gain access and move laterally to networks of major, high value asset owners within the energy sector.”  These threat actors use a variety of tactics, techniques, and procedures, including open-source reconnaissance, spear-phishing emails, watering-hole domains, host-based exploitation, industrial control system infrastructure targeting, and ongoing credential gathering.  DHS “has confidence that this campaign is still ongoing, and threat actors are actively pursuing their ultimate objectives over a long-term campaign,” and this Technical Alert aims to educate network defenders about how to identify and defend against these threats.

FERC has also taken several actions regarding cybersecurity this month.  On October 2, 2017, it terminated a proceeding about the cybersecurity of control centers used to monitor and control the bulk electric system.  FERC issued a Notice of Inquiry earlier this summer based, in part, on the 2015 cyber-attack that disrupted Ukraine’s electric grid.  However, after reviewing the comments it received, FERC concluded that the existing North American Electric Reliability Corporation’s Critical Infrastructure Protection (CIP) Reliability Standards are sufficiently flexible to address FERC’s concerns about cybersecurity at control centers.

More recently, on October 19, 2017, FERC issued a Notice of Proposed Rulemaking that would adopt a new CIP Reliability Standard addressing cybersecurity concerns.  This proposed Reliability Standard would: (1) clarify the obligations related to electronic access control for low-impact cyber systems; and (2) adopt mandatory security controls for “transient electronic devices,” such as thumb drives, laptops, and other portable electronics that can connect to cyber systems.  Comments on the Notice of Proposed Rulemaking are due 60 days from publication in the Federal Register.

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EPA asks Court to Continue Abeyance of CPP Litigation, Intervenors Push Back

Posted on October 20, 2017 by Anjali Patel

On October 10, 2017, EPA filed a status report in the CPP Litigation, West Virginia v. EPA, informing the D.C. Circuit of its proposed rule to repeal the Clean Power Plan. EPA states in its report that the proposed repeal is based on “a proposed change in the Agency’s interpretation of section 111 of the Clean Air Act, 42 U.S.C. § 7411.”  EPA explains that it is still considering the scope of a potential replacement and that it will “be signing in the near future an Advance Notice of Proposed Rulemaking that will solicit information on systems of emission reduction that are in accord with the legal interpretation that has been proposed by EPA.”  EPA asks the court to extend the abeyance period indefinitely “pending the conclusion of the rulemaking.” (Per the last court order, the current abeyance period was to expire on October 7, 2017.)

Both State and Municipal Intervenors and Public Health and Environmental Organization Intervenors filed briefs requesting that the court rule on the merits of the CPP challenges and reject EPA’s request for an indefinite abeyance.  Both sets of Intervenors explain that, at this time, EPA has proposed only to repeal the rule, not to replace it. The State and Municipal Intervenors allege that a “pure repeal . . . would put the agency in violation of its statutory duty to regulate carbon dioxide from existing power plants under the Clean Air Act, a duty the agency is not contesting it must fulfill.” Public Health and Environmental Intervenors explain that EPA’s stated grounds for repealing the rule are the same as those raised by petitioners in the CPP litigation. And they claim that EPA is seeking an indefinite abeyance “to avoid the timely clarification and implementation of its statutory duties.” Should the court decide to continue to hold the cases in abeyance, both sets of Intervenors request that the abeyance period be limited to no more than 120 days.

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New York City Unveils Plan to Carry Out Paris Climate Agreement

Posted on October 17, 2017 by Amber Martin

On October 3, 2017, New York City Mayor Bill de Blasio announced a city plan to align New York City with the Paris Agreement’s goal to limit the global temperature increase to no more than 1.5°C above pre-industrial levels.  The 1.5°C Climate Action Plan proposes aggressive action across various sectors, including:

  • Recycling and Waste: The plan proposes a city-wide rollout of single-stream recycling by 2020, as well as an expansion of the city’s organics program by 2018 in order to increase organics separation and reduce the volume of organics in the waste stream.
  • Building Codes:  The plan also calls for implementation of long-term energy intensity requirements for existing buildings by 2030, and the tightening of energy intensity requirements for new buildings.
  • Energy Procurement:  The plan commits to purchasing 100% renewable electricity for municipal operations as soon as sufficient supply can be brought online.
  • Transportation:  The plan aims to increase the number of active cyclists in the city, expanding electric vehicle infrastructure, and other improvements to increase transportation sustainability.

While the plan is the first of its kind, it is unlikely to be the last.  In June, shortly after President Trump announced that the United States would pull out of the Paris Agreement, more than 380 mayors of cities nationwide committed to honor the Agreement.

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EIA Short-Term Energy Outlook Projects Rise in Energy-Sector Carbon Dioxide Emissions

Posted on October 12, 2017 by Amber Martin

Energy-related carbon dioxide (CO2) emissions have been trending downward since 2007, but the U.S. Energy Information Administration (EIA) reports that this may change next year.  In its most recent Short-Term Energy Outlook, EIA projects that energy-sector CO2 emissions will rise slightly in 2018.  According to EIA, energy-related CO2 emissions fell in 2015 and 2016, and projections suggest 2017 will likewise see a decline in these emissions.  The projections for 2018, however, do not square with the downward trend, and instead predict a slight rise in emissions by about 2.2%.  In its report, EIA states that the anticipated emissions increase is attributable to various factors, including: an increase in total power generation, an increase in energy-related CO2 emissions from petroleum, natural gas; and coal expected to total 111 million metric tons; a slight increase in coal’s forecast generation share; and a decrease in expected hydropower generation by 5 billion kilowatt-hours—too large a decline for wind, solar, and nuclear generation to offset.

Additional data, highlights, and visualizations from the report are available here.

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