October 11, 2024
Federal Briefs
Clark Stepping Down After September FERC Meeting
This week's FERC and federal briefs include news on FERC, Obama Administration, EPA, NRC, White House and other agencies.

FERC Commissioner Tony Clark announced through Twitter that he would leave the commission after its next open meeting in September.

ferctonyclark(gov)
Clark

“After 4+ years on FERC, I’m announcing today that the September Commission meeting will be my last,” Clark posted. “Public service has been an honor, but these aren’t meant to be forever jobs. Looking forward to next chapter, whatever that may be.”

Clark announced in January that he would not seek reappointment after his term expired June 30. He had said that he may serve beyond his term until a replacement is found. President Obama, however, has yet to nominate anyone to fill the seat vacated by Philip Moeller, let alone Clark’s. His departure means that FERC will be left without a Republican commissioner.

More: Clark Won’t Seek New FERC Term

Report: More EE Standards Under Obama than Any Other President

Under the Obama administration, the Energy Department has finalized more energy efficiency standards than under any other administration, a recent report said.

Regularly updating and creating energy efficiency standards has been part of the department’s duties since President Ronald Reagan signed the National Appliance Energy Conservation Act in 1987. While the department has been publicly touting its progress, the report by two independent groups, the Appliance Standards Awareness Project and the American Council for an Energy-Efficient Economy, validates its claims. The department has adopted 45 standards under President Obama and will potentially adopt 10 more before his term ends next year.

The runner-up to Obama is President George W. Bush; under his presidency, 27 standards were adopted. Bill Clinton’s administration adopted the fewest with only six, the report said. Obama made energy efficiency a top priority for the department after it fell behind in its mandated update quota under Bush, according to the report.

More: The Washington Post

American Petroleum Institute Challenging EPA Gas Rule

americanpetroleum(api)The American Petroleum Institute has filed a lawsuit against EPA with the D.C. Circuit Court of Appeals, challenging the agency’s final rule on emissions for new and modified natural gas facilities. The suit says the agency didn’t follow Clean Air Act limitations when developing the regulations.

API joins a coalition of 14 states and a number of trade groups in challenging the rules.

More: API

Court Orders 99% Cut for PG&E San Bruno Penalty

pacificgaselectric(pge)A federal judge last week sharply reduced the potential fine against Pacific Gas and Electric in its criminal trial over gas pipeline violations related to the San Bruno explosion in 2010, which killed eight people and destroyed 38 homes.

U.S. District Court Judge Thelton Henderson slashed the penalty from $562 million to $6 million at the request of prosecutors in the case. Neither Henderson nor the prosecutors provided a reason for the move.

The original penalty would have represented one of the largest corporate criminal fines in history. San Bruno Mayor Jim Ruane said the fine was less important to him than seeing the utility punished.

More: NPR; The Guardian

FERC Alleges Trader Manipulated Gas Market

FERC issued a notice last week alleging that National Energy & Trade and one of its traders, David Silva, engaged in fraudulent trading in the natural gas market in January 2012 by selling a large position in the Texas Eastern M3 market at low prices and then benefiting from the resulting market uptick.

More: FERC

NRC Issues Final Safety Report for Duke Nuke

The Nuclear Regulatory Commission issued the final safety evaluation for Duke Energy’s proposed Williams States Lee nuclear plant to be built in Cherokee, S.C., bringing the company one step closer to beginning construction. The commission found no safety issues to prevent the plant from being built.

Duke applied for the licenses in 2007 and received the commission’s final environmental impact statement in 2013, but it still hasn’t made a final decision on whether to go ahead with construction. That decision would come after the commission has issued the two necessary operating licenses, according to the company.

More: WFAE

DOJ Opens Investigation into Westar-Great Plains Deal

westarenergy(westar)Coming on the heels of a Missouri Public Utilities Commission staff recommendation that the commission should have jurisdiction over the pending $12.2 billion Westar Energy-Great Plains Energy merger, the federal Department of Justice is also looking into the deal.

Word of the Justice Department investigation came in a report Westar filed with the Securities and Exchange Commission. “We and Great Plains Energy intend to fully cooperate with the DOJ in its investigation,” Westar said in its filing, which did not give details about the reason for the inquiry.

The PUC staff filing said it is looking to see if it can claim jurisdiction, even though Westar operates only in Kansas. Great Plains operates in Missouri. “Staff maintains that all of the known evidence supports a determination that the proposed transaction is detrimental to the public interest and ought not be permitted to go forward,” the staff said.

More: Topeka Capital-Journal

EIA Predicts NA Carbon-Free Power to Grow to 45% by 2025

The Energy Information Administration projects that by 2025, energy generation from renewable and nuclear resources will grow from 38% to 45%. Part of the outlook is predicated on the recent agreement between the U.S., Canada and Mexico to attain a goal of 50% by then.

EIA also included energy efficiency in the figures, but it didn’t break out the three resources. It predicted a decline in coal-fired generation of about 13% by 2025 and an increase in natural gas generation by 4%. It noted that Canada has already attained a level of 80% clean energy generation, primarily because of its large hydroelectric capacity.

Mexico’s combined nuclear and renewables should grow to 29% by 2025, EIA said. The outlook assumes EPA’s Clean Power Plan is upheld.

More: EIA

White House Requiring All Agencies to Consider Climate

The White House Council on Environmental Quality last week issued guidance under the National Environmental Policy Act that requires all federal agencies to consider the environmental and climate implications of projects.

The directive requires agencies to quantify greenhouse gas emissions and note the potential climate change impacts of each project during the review process. “This increased predictability and certainty will allow decision-makers and the public to more fully understand the potential climate impacts of all proposed federal actions,” the council said in a statement.

The policy change was first proposed in 2010. Republicans complained that it would allow the Obama administration to institute regulations without congressional approval.

More: Morning Consult

NRC Upholds Entergy’s ‘No Booze’ Policy at Vermont Yankee Plant

vermontyankee(nrc)The Nuclear Regulatory Commission upheld Entergy’s zero-tolerance rule for alcohol at its Vermont Yankee nuclear plant. The commission’s decision was prompted by Entergy’s 2014 suspension and firing of an employee after unopened bottles of alcohol were found in a private vehicle.

A company panel of managers later overturned the suspension, but a further company review reinstated it. A company spokesman said the zero-tolerance policy extended even to empty alcohol bottles that were headed for recycling. “You can’t even have the perception” of alcohol on site, the spokesman said.

At the time of the violation, the plant, which has since been retired, was in full operation with 636 employees.

More: Times Argus

NRC Reviewing NextEra’s Plan to Correct Seabrook Concrete Issue

seabrooknuclear(nrc)The Nuclear Regulatory Commission is reviewing NextEra Energy’s plan to address concrete degradation issues at its Seabrook nuclear generating station.

The degradation is being caused by an alkali-silica reaction (ASR) in the concrete throughout the plant. It was first discovered in 2009 when Seabrook employees found portions of an underground electrical conduit tunnel degrading. It has since been found in numerous walls throughout the plant.

ASR is a chemical reaction that forms a gel in some concrete mixtures. The moisture-caused reaction forms the gel, which then expands and forms cracks. Approval of NextEra’s plan is critical to NRC issuing a license extension.

More: Gloucester Times

FERC Approves Apple’s Solar Marketing Plan

FERC last week approved Apple’s application to sell solar capacity at facilities it owns in Nevada, Arizona and California on the wholesale market. The ruling allows it to enter the wholesale market with 20 MW of generation capacity in Nevada, 50 MW in Arizona and 130 MW in California.

“Based on your representations, Apple Energy meets the criteria for a Category 1 seller in all regions and is so designated,” FERC wrote in a letter to Apple attorneys.

Google also has received FERC approval to sell solar capacity into wholesale markets.

More: The Mercury News; Fortune

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