Proposed CEIP Design Details Published in the Federal Register

UPDATED 07.21.2016 with extended comment date.
UPDATED 08.25.2016 with new extended comment date.

Earlier today, EPA published its Clean Energy Incentive Program (CEIP) Design Details proposal in the Federal Register, triggering the start of the 60-day comment period (deadline August 29 September 2 November 1, 2016).  EPA requests that any party that previously submitted comments on the CEIP (e.g., in response the proposed model trading rules, stakeholder meetings, etc.) resubmit those comments in this docket if you want them to be considered in this rulemaking.

As previously posted, EPA plans to hold a public hearing on the proposal on August 3, 2016 in Chicago, Illinois.  The Federal Register notice provides more details regarding registering to speak at the conference.

Additional information is available in Spiegel’s Client Alert covering this proposal.

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Canada, Mexico, and the United States Issue a Trilateral Agreement on North America’s Clean Energy Future

Yesterday, June 29, 2016, President Barack Obama, Canada’s Prime Minister Justin Trudeau, and Mexico’s President Enrique Peña Nieto announced the formation of the “North American Climate, Clean Energy, and Environment Partnership” through which the three countries aim to “align [their] climate and energy policies” and “strive to achieve 50 percent clean power generation by 2025.”  The countries plan to meet the clean power target through a combination of deploying renewable, nuclear, and carbon capture and storage technologies, and reducing demand through energy efficiency.

In their joint statement, the parties highlighted a series of initiatives that they are planning to undertake to achieve their goals. The initiatives are outlined in the Partnership Action Plan, and include:

  • Joining the Paris Agreement in 2016, implementing each country’s respective nationally determined contribution, and promoting full implementation of the Paris Agreement’s transparency framework, with common modalities, procedures, and guidelines for reporting and review;
  • Advancing clean energy research, development, and deployment, and supporting the development of cross-border transmission projects;
  • Phasing out inefficient fossil fuel subsidies by 2025;
  • Jointly studying, identifying, and implementing options for broad energy system integration, including completing the second installment of the Quadrennial Energy Review, which will focus on a comprehensive review of the electricity system;
  • Increasing trilateral collaboration on encouraging the greening of government initiatives and on the purchase of more efficient products, cleaner power, and clean vehicles;
  • Strengthening and aligning efficiency standards across all three countries, including by aligning six energy efficiency standards or test procedures for equipment by the end of 2017, and a total of ten standards or test procedures by the end of 2019;
  • Aligning analytical methods for assessing and communicating the impact of direct and indirect greenhouse gas emissions of major projects;
  • Reducing greenhouse gas emissions and air pollutants from light- and heavy-duty vehicles by aligning fuel efficiency and/or GHG emission standards out to 2025 and 2027, and by aligning air pollutant emission standards and corresponding ultra low-sulphur fuel standards by 2018.

Although the Partnership and Action Plan are not legally binding, they represent significant political commitments between neighbors.

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Amidst Retirements, DOE Strategizes Future of Nuclear Reactors in the U.S.

While some nuclear plant operators are making plans to shutter their plants, the Department of Energy (DOE) is strategizing ways that nuclear energy could be used to play a role in achieving clean energy and greenhouse gas reduction goals.  In its draft Vision and Strategy for the Development and Deployment of Advanced Reactors released at the end of May, DOE states that in the wake of expected nuclear plant retirements, the development and deployment of a new generation of advanced reactors will be necessary in order to ensure a substantial nuclear presence in the U.S. power mix beyond 2050.  To accomplish this, DOE’s vision is that by 2030, at least two non-light water advanced reactor concepts will reach technical maturity, demonstrate safety and economic benefits, complete licensing reviews by the U.S. Nuclear Regulatory Commission (NRC), and be ready to move into the construction phase. In order to attain this goal, DOE has identified six strategic objectives to speed development and deployment of advanced reactors:

  • Enhancing the “innovation infrastructure” – DOE intends to expand its advanced reactor testing capabilities and improve modeling and simulation tools for advanced reactors.  Additionally, DOE is working to improve private-sector access to DOE expertise and capabilities through its Gateway for Accelerated Innovation in Nuclear (GAIN) initiative.
  • Demonstrating performance of advanced reactors – DOE plans to reduce technical risk and improve the economics of advanced reactor technologies by engaging in targeted research and development at its labs and through partnerships with industry.
  • Developing fuel cycle pathways for advanced reactors – DOE proposes to engage in research and development to explore new nuclear fuel options, including the identification and evaluation of safe and secure means of storing, transporting, and permanently disposing of radioactive wastes.
  • Regulatory improvements – DOE and NRC are working in partnership to develop an appropriate and efficient regulatory framework for advanced reactors.
  • Maximizing investments and exploring incentivesDOE intends to engage public-private partnerships, technology-specific working groups, and policy and financial incentives to accelerate advanced reactor deployment.
  • Human capital and workforce development – DOE indicates that it intends to continue investing in human capital and skill development in the nuclear field by continuing to fund nuclear-related research projects, scholarships, and fellowships.  DOE aims to contribute to and promote advanced reactor technology training opportunities through workshops, curriculum development, and joint laboratory, university, and industry projects.

While DOE’s strategy addresses how to speed deployment of these new nuclear technologies, it leaves open how to address issues faced by nuclear resources participating in the wholesale electric markets.

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D.C. Circuit Suspends Briefing Schedule in NSPS Challenge

On Friday, the D.C. Circuit granted petitioners’ motion to suspend the briefing schedule in the petition for review of EPA’s New Source Performance Standards (NSPS) for CO2 emissions from new, modified, and reconstructed power plants.  The petitioners had asked for the suspension to allow time to file petitions for review of EPA’s denial of petitions for reconsideration of the NSPS.  The D.C. Circuit panel considering the request ordered that motions to consolidate be filed July 12, 2016, and motions to amend the briefing schedule and format be filed August 4, 2016.  Briefing had previously been scheduled to begin on July 15, 2016.

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EPA Issues Report on Urban Resilience to Climate Change for Public Comment

On June 21, EPA announced a 30-day comment period on its draft technical document entitled Evaluating Urban Resilience to Climate Change: A Multi-Sector Approach.  EPA’s Office of Research and Development (ORD) drafted the document based on a tool that it developed to measure urban communities’ resilience to climate change, defined (at xii) as “the ability of a city to reduce exposure and sensitivity to, and recover and learn from gradual climatic changes or extreme climate events.”  The report applies the tool to Worcester, MA and Washington, D.C. as examples, and offers that the analysis may be used “for the purposes of identifying and prioritizing adaptation activities.”

Looking at the energy sector, the draft report indicates (at 65) that Washington, D.C. is “generally resilient with respect to energy supply.” “[A] diverse energy portfolio and redundant systems are in place for coping with extreme events at the regional level, although at the customer or building level, coverage may be inadequate.”  There are some factors that indicate lower resilience in the energy sector, though, including the fact that most of the energy supply originates outside the District and there is a high energy use per capita.  And D.C. residents and commuters might be interested to read that while D.C. demonstrates high resilience in the transportation sector in terms of accessibility and variety of public transportation, the report notes that (at 77-78) “the current transportation infrastructure, particularly the Metro, is not equipped to handle either the gradual impacts of climate change or impacts of extreme climatic events, and limited or no funding is available to remedy this issue.”  Flooding and heat are particular threats to transportation infrastructure.

The draft report found (at 95) Worcester’s energy sector to be relatively resilient, although there is a limited ability to cope with or respond to stressors such as extreme events, outages, and higher peak demand/demand at different times. The city’s diverse and local sources of power and efforts to reduce energy consumption contribute to resilience in this sector.

Comments on the draft document are due July 21, 2016.

Citations in this blog post are to: U.S. EPA. Evaluating Urban Resilience to Climate Change: A Multi-Sector Approach (External Review Draft). U.S. Environmental Protection Agency, Washington, D.C., EPA/600/R-15/312, 2016.  EPA states this document is “distributed solely for the purpose of pre-dissemination peer review” and “should not be construed to represent any Agency determination or policy.” 

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