The Federal Reserve is considering restricting big banks’ ability to trade and warehouse physical commodities. But Democrats on the Senate Banking Committee suggested the Fed isn’t moving fast enough to protect the public from the risks of physical disasters and commodity market manipulation.

Chair Sherrod Brown (D-Ohio) said the central bank’s notice of proposed rulemaking is “overdue and insufficient.” Brown chaired a hearing at which a Fed official, plus officials from the Federal Energy Regulatory Commission and Commodity Futures Trading Commission, testified about their concerns and market regulation initiatives. More: Huffington Post; Banking Committee; NPR

Cooling-Water Rule Delayed

The Environmental Protection Agency missed a Jan. 14 deadline for publication of a final rule requiring aquatic-life protections at power plant cooling structures. Riverkeeper, an environmental group which had sued EPA to force the rule, has agreed a number of times to pushing back the completion date. An EPA time line shows the rule was sent for Office of Management and Budget review in July. More: Power Magazine

EPA GHG Rule Under Fire

Nebraska filed suit against the Environmental Protection Agency’s proposed rule limiting greenhouse gas emissions from new power plants. The grounds for the suit are that EPA based its requirement for coal generators on carbon capture and sequestration projects that have received government funding. The suit, filed in U.S. District Court in Lincoln, argues that the funding makes the projects ineligible for use in setting a standard. Administrator Gina McCarthy said Thursday that her agency is preparing to release detailed information that will provide more “clarity” on the topic. Meanwhile, Sen. Mitch McConnell (R-Ky.) is trying to get a vote on a resolution that would block the rule. The proposed rule is ripe for congressional action now, he said, because it would apply to projects started after publication of the proposed rule, not the final rule as is often the case. More: Politico; Nebraska Attorney General; National Journal

Obama Adviser Responds to Green Challenge

President Obama’s senior adviser John Podesta rebuked U.S. environmental leaders Friday for challenging the White House’s energy strategy, saying he was “surprised” they would question his commitment to addressing climate change.

Podesta responded to a letter from 18 leading environmental groups who said the president’s “all of the above” energy strategy was not acceptable, and greenhouse gas reduction should be the focus of all energy decisions.

More: Washington Post

FutureGen To Get $1 Billion

The Department of Energy said it would award the FutureGen 2.0 carbon capture and storage project $1 billion, conditional on the project getting its storage site permit and private financing. The FutureGen Alliance said construction on the $1.68 billion Illinois project could start this year. More: The State Journal-Register