Contact Us

444 N. Capitol St. NW
Washington, DC 20001


Phone: 202-624-1478
Fax: 202-624-1475

Blog posts : "capandtrade"

Energy Update, October 21, 2011

October 21, 2011

In the States

CA – After an eight hour hearing that consisted of passionate speeches both in support and in opposition, the California Air Resources Board unanimously created the nation’s first statewide cap-and-trade program.  A controversial part of the landmark climate change legislation passed in 2006, AB 32, the cap-and-trade program will be phased in beginning in 2013 with the State’s largest greenhouse gas emitters and will expand in 2015 to include almost all emission sources.  The cap-and-trade program was instituted in order to help the State reach the goal mandated by AB 32 of returning greenhouse gas levels emissions to 1990 levels by 2020.  The second largest cap-and-trade program in the world has support from both Governor Jerry Brown and former Governor Arnold Schwarzenegger.  California becomes first state to adopt cap-and-trade programLos Angeles Times and California adopts limits on greenhouse gasesNew York Times and California moves ahead with cap-and-trade, adopts final rulesFox Business News

OK – Governor Mary Fallin has been unanimously elected to as Chair of the Southern States Energy Board, an organization of Governors and legislators from 16 states and two territories to encourage innovation in energy programs and policies.  Responding to her election, Governor Fallin said she was “honored to be elected” to the group that “has an excellent reputation for its powerful support of the traditional energy resources that are needed and used by Oklahoma and other states every day.”  She also said “we must build our energy infrastructure base and support American made energy” by “fully exploiting the United States’ reserves of natural gas through hydraulic fracturing as well as improving the technology needed to capture and store carbon dioxide for use in advanced oil recovery.”  Board elects Governor Fallin as chairmanTulsa Today

VA – Governor Bob McDonnell spoke to about 400 people at his second annual Governor’s Conference on Energy and critiqued the federal government’s energy policies.  The Governor said the federal government had impeded the development of fossil fuels and had not pushed hard enough for more nuclear energy.  "We unfortunately have erected too many impediments, too many roadblocks at the federal level," Governor McDonnell said.  He said that in order to create jobs and provide for the expected increase in energy demand, "We've got to have a comprehensive, red-white-and-blue American energy policy," which he said would be an “all-of-the-above approach” including fossil fuels, nuclear, and renewable energy as well as increased conservation.  The Governor also called for increased offshore oil and gas drilling as an economic development tool.  The three-day conference also included discussions and speeches by energy executives.  McDonnell chides federal government for hindering energy developmentRichmond Times-Dispatch and Va. energy conference begins 3-day run MondayBloomberg BusinessWeek

Federal News

The number of rigs drilling for oil in the U.S. has nearly doubled in the past year according to a survey of oil and gas rigs conducted by oil services firm Baker Hughes and represents a record high since they began tracking the data 24 years ago.  Nearly 1,100 oil rigs are currently drilling around the country this week, with the spike in production mainly due to technological advancements such as hydraulic fracturing that allow shale oil to be extracted in an economically viable way.   The states that contain more unconventional oil fields, such as North Dakota and Texas, have experienced most of the increases.  U.S. oil rig count hits recordReuters

The White House has identified 14 infrastructure projects that it intends to fast-track through environmental and permitting processes, as well as other regulatory requirements, including two new wind farms.  A 15-turbine wind farm to be built in southern Vermont is included on the list of expedited projects, as is a 52-turbine facility in the San Bernardino National Forest in California.  The Vermont wind farm should receive a full environmental impact statement by the end of this year and the timeline for the review process for the California wind farm should be cut in half, from three years to 18 months.  14 U.S. infrastructure projects get federal fast-trackingAtlantic Cities and Obama Administration announces selection of 14 infrastructure projects to be expedited through permitting and environmental review processWhite House

Go Back

Energy Update, July 1, 2011

July 1, 2011

In the States

CA – The California Air Resources Board (ARB) has postponed full implementation of the State’s cap-and-trade system for one year, until 2013, though ARB Chairwoman Mary Nichols maintains the State will still be on track to meet the underlying law’s emissions goal:  reducing GHG emissions to 1990 levels by 2020.  The law was originally supposed to take effect at the beginning of 2012.  "We will be testing the system, doing simulation models, but no one will be held accountable during that year for compliance," Nichols said. "But at the end of 2014, people will still be where they would have been if the program had started." She also indicated that Governor Jerry Brown did not involve himself in the Board’s decisions.  A judge ruled in March that the State had not adequately analyzed alternatives to the cap-and-trade program before requiring its implementation, as required by California’s Environmental Qualify Act, but an appeals court has since ruled the State can move forward while the appeal is being heard.   California delays its carbon trading program for a yearLos Angeles Times and California delays cap-and-trade auctions, citing potential gamingNew York Times

FL – Governor Rick Scott has proposed developing a new State energy policy that would encourage renewable energy, but also would also address other issues such as offshore drilling and clean coal.  He also wants the Public Service Commission to lower requirements for utilities to conserve more electricity through consumer rewards and incentives.  The Governor has said that he wants to attract manufacturing jobs to the State and that doing so would require lower energy costs.  While one of the State’s utilities estimated that a plan in place to lower energy usage would cost the average residential consumers an additional $13.20 per month over nine years, the Governor is looking for alternative approaches for meeting Florida’s energy needs. In a meeting with energy stakeholders, Mary Anne Carter, Governor Scott’s chief advisor said, “The Governor is a big proponent of renewable energy.”  The Governor, however, also prefers allowing free-market forces to determine the type and amount of renewable energy use rather that favoring a single type of producer or driving the market through a renewable standard set by the State.  Scott calls for reducing energy-saving rebatesSunSentinel and Scott wants to reduce energy efficiency rules and push cost-effective renewablesMiami Herald

GA – Governor Nathan Deal has ordered that a scheduled increase in the State’s gasoline tax from 20.4 cents per gallon to 22 cents per gallon that was to take effect on July 1 be suspended until the end of the year.  The legislature will need to finalize the decision, but the Governor’s plan has the support of the State House Speaker.  Governor Deal cited gasoline’s “escalating costs in 2011” in his announcement of the freeze, and said that the move should save consumers $40 million in the coming months.  Governor freezes gas tax Atlanta Journal Constitution

NV – Governor Brian Sandoval has vetoed a renewable energy bill because of a provision added on the legislature’s last day that would have increased electricity rates to pay for a transmission line that would be used to export power from the State.  The bill would have allowed a single utility, NV Energy, to bypass the normal approval process for this project, which critics contended would have cost as much as $1 billion.  The utility would have been able to send renewable energy power to other States with renewable energy standards, including California and Arizona.  Governor Sandoval said that any potential rate hike “would result in the imposition of an unnecessary and unfair burden on our recovery.”  The project may still move forward without the bill, as other companies have also expressed interest in building the transmission lines.  Governor vetoes controversial last-minute energy billLas Vegas Sun

National News

In a unanimous decision, the Supreme Court threw out a lawsuit from brought by a group of States and environmental groups that, if successful, would have forced power plants to lower greenhouse gas emissions.  The U.S. Environmental Protection Agency (EPA) already regulates greenhouse gas emissions from some large industrial plants and is planning to issue regulations to control power plant emissions next year.  While some members of Congress are seeking legislation to block the EPA from using the Clean Air Act to issue regulations further limiting greenhouse gas emissions, the plaintiffs in this case were seeking the right to require lower emissions more quickly through a lawsuit, which could have given federal judges a role in overseeing emissions standards, currently the authority of the EPA.  The court ruled that giving such power to judges is not consistent with the Clean Air Act and rejected the lawsuit, but said that the group could sue the EPA in federal court should they disagree with the agency’s rulemaking decision.  States cannot bypass EPA on power plant emissions, Justices ruleNew York Times and Supreme Court tosses lawsuit against utilitiesPolitico

 

Go Back

Energy Update, April 22, 2011

April 22, 2011

In the States

CA – Governor Jerry Brown signed into law the country’s strongest renewable energy standard that will require electric utilities in the State to generate 33 percent of their electricity from renewable sources in less than nine years.  Although the new law limits the amount of rate hikes due to the new requirements, opponents of the measure cite studies showing that rates may increase by 7-19 percent.  The Governor cited reliance on foreign oil, economic instability, and climate issues in expressing his support for the law while other supporters said it would keep investment strong in the renewable energy industry.  Calif. sets nation’s most aggressive goal for renewable energy as critics say rates will soarWashington Post

OK – Governor Mary Fallin has signed a new law that will expand the allowed length of horizontal drilling into shale reservoirs, easing investment costs for companies to drill for oil and natural gas.  Proponents said that the new law allows for increased production while protecting mineral owners’ rights, and modernizes regulations to account for technological advances that have made it possible to extend drilling longer than was previously possible.  Drilling bill modernizes state oil and gas statutesEnid News & Eagle and Oklahoma’s Gov. Mary Fallin signs energy reform billThe Oklahoman

OR –  Speaking at a conference on the future of energy, Governor John Kitzhaber announced he is developing a 10-year plan for Oregon that will emphasize renewable energy as a way to rebuild the State’s post-recession economy.  During his remarks, one example he cited was the possibility of retrofitting homes with energy-saving materials as a way to replace economic activity previously generated by the housing construction industry.  He also said that he and Governor Christine Gregoire of Washington State had recently discussed forming a three-state coalition with California focused on creating green energy jobs and reducing carbon emissions.  Kitzhaber says it's time for a 10-year plan on clean energy in Oregon – The Oregonian

National News

The U.S. Departments of Energy and Agriculture have announced $30 million in spending on projects that will support research and development in advanced biofuels, much of which will be in rural areas in the Midwest.  These funds come from the Biomass Research and Development Initiative and could help rural communities become less reliant on fossil fuels.  They will now be able to produce much of the fuel they use for heating and electricity locally, lessening dependence on foreign oil.  The home-grown fuel can also reduce greenhouse gas emissions, since burning biomass creates no more pollution that the decomposition process that occurs naturally.  U.S. expands seeding of biomassNew York Times

The U.S. Advanced Research Projects Agency – Energy (ARPA-E) has signed a memorandum of understanding with Duke Energy and the Electric Power Research Institute, a nonprofit utility consortium, to test its first electricity-related invention.  The new product is an energy storage device that may allow electric power generated by wind turbines to be stored and then used when needed.  It may also have applicability to solar power.  Electric power would be used to pump air into an underground cavern.  When more energy is needed, this compressed air would flow through a generator, at 70-75% efficiency.  ARPA-E provided $750,000 to General Compression, the company that makes the device, which then attracted $12 million in private investments.  ARPA-E is poised to put products on the gridNew York Times

The U.S. Supreme Court appears likely to dismiss a case in which six States are suing five energy companies to limit their greenhouse gas emissions.  While the U.S. Environmental Protection Agency (EPA) has begun regulating emissions from new and modified industrial sources, the States are seeking to apply Federal and State laws to regulate existing plants.  Justices listening to oral arguments in the case expressed skepticism about the States’ claim that the costs and benefits of emissions standards can be evaluated by courts rather than determined through the regulatory process administered by federal agencies.  U.S. Supreme Court signals rejection of State climate-emissions lawsuitsBloomberg

Three U.S. States – New York, Minnesota, and California – have joined with 11 utility companies and two environmental groups as a coalition to ask the U.S. EPA to allow States to choose the best approach for meeting federal greenhouse gas emissions standards.  Specifically, the coalition seeks permission to regulate greenhouse gases through existing regional or statewide cap-and-trade programs or renewable energy standards as an alternative to plant-specific limitations.  Some power companies that use more fossil fuels than those taking part in the coalition did not join and are continuing to raise general objections to new restrictions on plant emissions.  States, utilities ask EPA to boost regional cap-and-trade programs

 

Go Back

3 blog posts