Federal Briefs
RTOs Ask EPA for Flexibility on GHG Rules; Business Group Insists on Cost Effectiveness
News briefs on the federal agencies that impact those doing business in PJM's footprint. This week, we highlight the EPA, DOE, IRS, and Congress.

PJM and other RTOs asked EPA Jan. 28 to allow states to meet pending greenhouse gas regulations through regional caps and to include a “safety valve” to maintain reliability.

EPA is drafting its first limits on carbon dioxide emissions from existing power plants. The ISO/RTO Council (IRC) said that it usually doesn’t take policy positions on EPA regulations but that it wanted to ensure the rules “recognize the relationship between proposed environmental rules, electric system reliability, and economically efficient dispatch.”

The council’s seven-page proposal asks EPA to allow states to adopt State Implementation Plans (SIPs) based on “a regional measurement mechanism for determining compliance with CO2 rule obligations.” The group also said EPA’s regulations should include “a process to assess, and, as relevant, to mitigate, electric system reliability impacts resulting from related environmental compliance actions.”

More: ISO/RTO Council

020214partnershipbetterenergylogoMeanwhile, major business and manufacturing trade groups announced a coalition to ensure any GHG rules are cost effective, technologically achievable and allow use of all domestic energy resources.

The Partnership for a Better Energy Future is undertaking the effort “because we want a better outcome, not because we want to throw obstacles in the way,” said Karen Harbert of the U.S. Chamber of Commerce’s Institute for 21st Century Energy. The Edison Electric Institute and American Public Power Association are not on the membership list, though the National Rural Electric Cooperative Association is.

More: The Hill; Partnership for a Better Energy Future

EPA Coal Ash Regs Due by December

EPA logoThe Environmental Protection Agency will issue a final rule on disposal of power plant coal ash by Dec. 19, according to a consent decree EPA signed with environmental groups. Spurred by the disastrous 2008 ash pond collapse at a Tennessee Valley Authority site, EPA started developing regulations but never finalized them.  Environmental groups sued and won a ruling requiring the agency to specify a timeline for action. EPA’s proposed rule included options to regulate ash as a hazardous or a non-hazardous waste.  Utilities and coal interests oppose a hazardous designation.

More: Power Magazine

DOE Releases $2 Million for Taller Wind Towers

020214turbineheightgraficThe Department of Energy has made $2 million available for development of taller wind turbines that research shows could capture more wind energy. Although wind towers in the U.S. max out at about 300 feet now, the funds would go toward studying 400-foot towers. The taller units are not uncommon in Europe. According to DOE, National Renewable Energy Laboratory research shows higher turbines could unlock more than 1,800 GW of wind potential.

More: EarthTechling

IRS Eyes Stimulus Grant Recipients

020214irslogoThe Internal Revenue Service will be giving special scrutiny to recipients of Section 1603 renewable energy “stimulus” grants because it has found that some also claimed energy tax credits. The grants were meant to be in lieu of credits. A report released last week by the Treasury Inspector General for Tax Administration said the IRS is conducting a compliance study on the 1603 program, which is expected to be completed by June 30. The IRS said some tax practitioners have encouraged use of leasing transactions “because that allows fair market value to be overstated to increase the grant amount.” As of May 2013, Treasury had awarded 9,016 of the grants totaling $18.5 billion.

More: Treasury Department

Waxman Calls This His Last Term

Representative Henry Waxman
Rep. Henry Waxman

California Democrat Henry Waxman, a leader of major environmental legislation in the House of Representatives for decades, will not seek reelection. Waxman, who will have served 20 terms, is the top minority member of the Energy and Commerce Committee, and spearheaded the Clean Air Act Amendments of 1990 and the ultimately unsuccessful greenhouse gas cap-and-trade legislation. It is not clear who will succeed him in the lead-Democrat position, but Rep. John Dingell, the Michigan Democrat who is the longest-serving member in history, expressed interest. He is 87 and has served 59 years.

More: Politico; Detroit Free Press

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