North Dakota v. EPA Briefing Schedule Released

Posted on August 30, 2016 by Anjali Patel

The D.C. Circuit has issued a revised briefing schedule for North Dakota v. EPA in which the court will review EPA’s New Source Performance Standard (NSPS) for CO2 emissions from new, modified, and reconstructed power plants and EPA’s denial of reconsideration of the same.  The court had suspended the previous briefing schedule to allow parties to file for review of EPA’s decision on reconsideration.  The revised schedule is as follows (a list of the parties can be found here):

  Word Limit  Deadline 
Petitioners Briefs:
Petitioner State of North Dakota
State Petitioners
Non-State Petitioners 
4,000 words
9,000 words
18,000 words		 October 13, 2016
Brief for Petitioner-Intervenors  7,000 words October 24, 2016 
Brief for Respondent 31,000 words December 14, 2016
Briefs for Respondent-Intervenors  max 3 briefs,
13,300 words
combined
 December 21, 2016
Reply Briefs:
Petitioner State of North Dakota
State Petitioners
Non-State Petitioners
Petitioner-Intervenors
2,000 words
4,500 words
9,000 words
3,500 words		  January 19, 2017
Deferred Appendix    January 30, 2017
Final Briefs     February 6, 2017

 

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With CPP in Limbo, States and D.C. Continue Efforts to Cut Emissions

Posted on August 30, 2016 by Jeff Bayne

Oral arguments for challenges to the CPP may still be nearly a month away, but new plans to curb carbon dioxide emissions continue to arise.  Several states and the District of Columbia are moving forward with their own efforts to address carbon emissions through legislative and executive action.

  • California – In addition to being the first state to release a draft of its proposed CPP compliance plan, last week California’s legislature passed Senate Bill 32.  Previously, California had set a goal of reducing greenhouse gas emissions to 1990 levels by 2020, but Senate Bill 32 would extend that by setting a goal of reducing greenhouse gas emissions 40% below 1990 levels by 2030.  A part of this bill requires that a companion bill, which would establish transparency and equity standards for the California Air Resources Board, must also be passed by the Legislature and signed by the Governor before Senate Bill 32 can take effect.
  • Colorado – The Denver Business Journal obtained a draft document indicating that Colorado Governor John Hickenlooper is considering an executive order that would require reductions in carbon dioxide emissions.  The draft would call on Colorado state agencies to achieve at least a 25% reduction in emission cuts from the power sector by 2025, compared to 2012 levels, and a 35% reduction by 2030.  While Colorado is one of the states challenging the CPP, that action was undertaken by the state’s attorney general, who belongs to a different party than its governor.
  • District of Columbia – Last month, D.C. Mayor Muriel Bowser signed legislation, unanimously passed by the D.C. Council, to increase and extend its renewable portfolio standard.  Previously, D.C.’s target had been 20% by 2020, and the new target is 50% by 2032.  The legislation also includes a solar-specific target of 5% by 2032 (previously, the solar-specific target had been 2.5% by 2023).
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Midcontinent Power Sector Collaborative Examines Considerations for Distributing CPP Allowances

Posted on August 25, 2016 by Anjali Patel

The CPP offers states choosing to comply under a mass-based emission trading program discretion to decide both the methods that will be used to distribute CO2 allowances and the parties that will receive such distribution.  In order to assist states with making these distribution decisions, the Midcontinent Power Sector Collaborative—a multi-sector initiative that is convened and staffed by the Great Plains Institute “to consider an optimal approach to reduce carbon emissions from existing power plants and meet Clean Power Plan requirements”—recently released a white paper entitled Key Considerations for Making Allowance Distribution Decisions.

The white paper discusses various issues states should consider when making allowance distribution determinations, including that states should consider the goals they seek to achieve through such distribution (e.g. to protect consumers, reward early action, provide financial security, etc.).

The white paper posits that emission allowances are an operating cost for the generators, regardless of whether they are obtained for free or purchased, and that the total value of allowances will be greater than the cost of reducing emissions. The paper also posits that if allowances are allocated at no cost to the generator, the “flow” of the allowance value (i.e. whether or not consumers benefit) will depend, in part, on: (i) whether the state regulates its utilities or is restructured, (ii) the utility’s ownership structure (e.g. public power, investor owned utility, merchant generator), and (iii) whether generators participate in a regional market.

The white paper also examines the opportunities and challenges associated with several different distribution options, including:

  • Allocating based on historical baseline data (such as emissions);
  • Using an “updating output-based” approach in which incentives or subsidies are provided based on changes that occur during the program period;
  • Providing allocations to the affected entities;
  • Providing allocations to load-serving entities;
  • Distributing allocations directly;
  • Distributing allocations through set-asides; and
  • Distributing allocations through an auction process.
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New White Paper Examines Cost Impacts of Nuclear Retirements on CPP Compliance

Posted on August 23, 2016 by Amber Martin

A recent white paper issued by the global business advisory firm FTI Consulting, The Impacts of Nuclear Retirements under the Clean Power Plan, suggests that the recent and potentially continuing uptick in nuclear retirements, currently totaling 8.3 gigawatts or 8% of total current nuclear capacity, may make CPP compliance more costly.

The study modeled the electricity and emissions price impacts of the CPP under two cases.  The Baseline Case assumes that existing capacity, including nuclear generation that had previously announced intent to retire, is maintained through 2035 and current nuclear capacity under construction is built as planned.  The Alternative Case assumes that announced nuclear retirements will occur as planned, additional nuclear units will retire at the expiration of their current licenses, and new nuclear capacity under construction will be built as planned.

Under the Alternative Case, FTI estimates that nuclear retirements will result in a 26% increase in carbon dioxide prices in the Eastern Interconnection over the Baseline Case.  FTI predicts that higher carbon dioxide prices will drive increases in wholesale electricity prices, with electricity prices under the Alternative Case between 6-8% higher than the Baseline Case between 2022 and 2032.  By 2035, FTI projects this price disparity will widen further, with electricity prices under the Alternative Case nearly 15% higher than the Baseline Case due to predicted acceleration of nuclear retirements after 2031.  Areas with significant nuclear capacity or concentrated nuclear retirements demonstrated more dramatic price increases, sooner.  For example, FTI’s projections showed electricity prices in the New York Independent System Operator-administered wholesale markets to be roughly 18% higher on average in the Alternative Case than in the Baseline Case.

In comparing its Alternative Case to EPA’s modeling, the paper suggests that CPP compliance may be more expensive than EPA initially projected.  According to the paper, the Alternative Case projects electricity prices will be 23% higher in 2025, and 16% higher in 2030, when compared with EPA’s modeling.

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DOE to Host Webinar on Marine Hydrokinetic Wave Energy Funding Opportunity

Posted on August 22, 2016 by Amber Martin

The Department of Energy (DOE) will host an informational webinar on Tuesday, August 23, 2016, 4:00-5:00 P.M. EDT, regarding its recent marine wave energy Funding Opportunity Announcement (FOA).  The FOA, issued August 16, 2016, is administered through DOE’s Energy Efficiency and Renewable Energy Water Power Technologies Program and will provide up to $40 million, subject to congressional appropriations, to support the site selection, design, permitting, and construction of a marine hydrokinetic wave energy testing facility within U.S. federal or state waters.  DOE envisions that the testing facility will contain at least three test berths to simultaneously and independently test wave energy devices.  The facility will be used to gather performance data which DOE hopes will inform future designs and accelerate the commercialization and deployment of wave energy technologies in the United States.

Those interested in attending Tuesday’s webinar can register here.  Entities wishing to apply for the funding must submit to DOE a letter of intent by 5:00 P.M. EDT on August 29, 2016.  The application deadline is 5:00 P.M. EDT on September 20, 2016.

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