Congressional Disapproval Resolutions Heading to the President

On December 1, the House passed resolutions to disapprove of the Clean Power Plan and the New Source Performance Standards under the Congressional Review Act.  The Senate passed these resolutions, S.J. Res. 23 (NSPS) and S.J. Res. 24 (CPP), on November 17.

While these bills would kill the rules if signed into law, President Obama will likely veto this legislation, rendering the action by the House and Senate largely symbolic.  A two-thirds vote in each house of Congress would be required to override a presidential veto, which appears to be lacking. The resolution to block the NSPS passed the House 235-188 and the Senate 52-46.  The resolution to block the CPP passed the House 242-180 and the Senate 52-46.

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Evaluating Demand-Side Energy Efficiency

The Clean Power Plan allows states to meet their emission guidelines through the use of demand-side energy efficiency (EE) measures so long as such measures are properly quantified and verified. State plans must include requirements for evaluation, measurement, and verification (EM&V) procedures. The EPA has released a draft EM&V guidance document to assist states adopting rate-based plans, and EE providers, with implementing the EM&V provisions of the CPP and proposed model trading rule.

The draft guidance covers, among other things, baseline definitions and applicable EM&V methods, the appropriate use of industry-standard protocols and guidelines, and other topics for quantifying and verifying savings for purposes of generating emission rate credits (ERCs) and adjusting an emission rate.

Comments should be submitted by January 21, 2016 to emvinput@epa.gov.

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On the Agenda: House to Discuss Clean Power Plan with FERC Commissioners

Tomorrow, December 1, the House Subcommittee on Energy and Power will hold a hearing entitled “Oversight of the Federal Energy Regulatory Commission.”  This hearing will begin at 10:00 A.M. in 2123 Rayburn House Office Building and will be webcast.  Chairman Bay, Commissioner LaFleur, Commissioner Clark, and Commissioner Honorable will address a variety of issues, including potential impacts of the CPP on electricity markets, fuel diversity, and electric reliability, as well as natural gas pipeline permitting and demand-side management technologies in wholesale markets.

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A Peek Into MISO and PJM CPP Modeling Efforts

Last week, PJM released an updated Draft Modeling Analysis, informed by input it received from the Organization of PJM States, Inc.  PJM notes that the analysis will not be used to inform specific transmission upgrades, but rather “should be used to assess potential implications of various future states – to identify potential economic, operational, resource adequacy and transmission usage implications.”  PJM expects to have its business-as-usual model results completed for all study years by January 31, 2016.  PJM’s remaining economic compliance analysis should be complete by April 30, 2016.  PJM expects to complete its reliability analysis, which is dependent on the economic analysis, by July 31, 2016.

MISO released a Study Scope for its CPP analysis.  MISO details its near-term (September – December 2015), mid-term (January – June 2016), and long-term (July 2016 – November 2018) modeling work.  MISO plans to report specific metrics from its models for stakeholder review.  MISO states that it will also coordinate with neighboring systems on analyzing potential CPP impacts, recognizing that many states are within the footprints of two or more RTOs.

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MATS Marches On

UPDATED 01.05.2016 Comments due January 15, 2016

On November 20, 2015 the EPA proposed a supplemental finding to its Mercury and Air Toxics Standards (MATS) in which EPA considers the compliance costs (on a system-wide basis) associated with regulating mercury and other hazardous air pollutant emissions from coal- and oil-fired electric utility steam generating units (EGUs) and determines that such consideration does not alter the agency’s previous conclusion that it is appropriate and necessary to regulate these sources under Section 112 of the Clean Air Act (CAA).  The proposed supplemental filing was published in the Federal Register on December 1, 2015.

EPA proposed the supplemental finding in response to the Supreme Court’s 5-4 decision in Michigan v. EPA, 135 S. Ct. 2699 (2015).  In Michigan v. EPA, the Court reversed White Stallion Energy Center, LLC v. EPA, 748 F.3d 1222 (D.C. Cir. 2014), a U.S. Court of Appeals for the D.C. Circuit (D.C. Circuit) decision upholding the rule in its entirety.  The Court remanded the case back to the D.C. Circuit on the grounds that EPA must consider costs, including cost of compliance, before deciding whether regulation is appropriate and necessary and that EPA acted unreasonably when it deemed cost irrelevant to the decision to regulate power plants.

EPA is seeking comment on its proposed supplemental finding, cost analysis, and supporting legal memorandum, but is not opening comment on any other aspect of the rule.  Comments will be due 45 days after the proposal is published in the Federal Register.

In related news, the D.C. Circuit has scheduled oral argument in the remanded White Stallion Energy Center for December 4, 2015.  The court will be considering whether it should vacate the MATS rule.

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