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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

 

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Energy Update, February 11, 2011

February 11, 2011

In the States

MO – The Missouri legislature has passed legislation that keeps the voter-approved requirement that 15% of Missouri’s electricity come from renewable sources by 2021, but eliminates the requirement that utilities purchase energy from producers located in the state or directly from sources outside Missouri.  Governor Jay Nixon has not commented on whether he will sign or veto the measure, which would allow utilities to instead purchase renewable energy “credits” rather than require them to obtain energy from renewable projects.  Proponents of the bill say that loosening restrictions gives utilities greater flexibility to meet the renewable standard, while opponents say the legislation will result in the same rates for electricity, but none of the environmental or economic benefits from requiring the utilities to obtain a portion of their power generation from renewable sources.  Missouri General Assembly kills two rules on renewable energy sourcesKansas City Star

NH – Governor John Lynch has written a letter in opposition to a bill in the New Hampshire State House that would end the State’s participation in the Regional Greenhouse Gas Initiative (RGGI), the Northeast’s cap-and-trade system.  The bill, which was introduced in the House Committee on Science, Technology, and Energy, says that the permits required by RGGI have “increased consumer costs for electricity, fuel, and food.”  Governor Lynch wrote that prices would not fall after withdrawing from the program since rates are set regionally, but that the State would lose all income from the sale of the permits, about $12 million per year.  New Hampshire Governor backs Northeast’s carbon dioxide marketBloomberg and Governor Lynch opposes RGGI repealOffice of Governor John Lynch

WI – Legislators will not take up a bill proposed by Governor Scott Walker that would have increased property setback requirements where wind turbines are built.  However, the Joint Committee on Administrative Rules is holding a hearing on a rule that would allow property owners to build wind turbines only 1,250 feet from their property line, as previously proposed by the State’s Public Service Commission.  This rule could either move forward or be blocked by a vote of the legislature.  Governor Walker’s bill proposed that turbines be set back by at least 1,800 feet and he has said he wants “to see the wind industry, like every other industry, be effective here in the state of Wisconsin,” but that promoting this industry must also be balanced with property rights.  Legislature won’t take up Walker’s wind-siting billMilwaukee Journal-Sentinel

Some States, facing record deficits for the past few years, are seeking to ensure that no revenue is lost due to technological and environmental advances.  Since owners of electric cars use the same roads as gas-powered cars, but do not pay a gas tax that funds those roads, lawmakers in Oregon and Washington have introduced legislation that would charge drivers of electric vehicles either a flat fee or a mileage tax in order to make up for this lost revenue.  Oregon’s bill would impose a per-mile tax of 0.6 cents or about $90 per 15,000 miles driven (about the equivalent of the gas taxes paid for a hybrid), while the bill in Washington would impose a flat fee of $100 when registering an electric car with the State.  Proposal would charge drivers of electric carsRegister-Guard and Electric car owners might face $100 State feeSeattle Times

National News

In an effort to support President Obama’s stated goal of deriving 80% of electricity from renewable sources by 2035, the Departments of Energy and Interior released a joint plan to spur quick development of offshore wind farms, which includes up to $50.5 million of funding incentives.  The funding will be allocated over the next five years and split into three separate initiatives: developing better tools to study and implement offshore wind systems; improving the design of drivetrains inside wind turbines; and removing barriers to the marketplace.  The plan also identifies 911 square nautical miles off the coasts of New Jersey, Delaware, Maryland, and Virginia that will undergo early environmental reviews to expedite the process of approving offshore wind development.  U.S. selects zones in four States to accelerate offshore wind energyBloomberg and Salazar, Chu announce major offshore wind initiativesEERE News

Administrator of the U.S. Environmental Protection Agency (EPA) Lisa Jackson testified for more than two hours before the House Energy and Commerce Committee’s Subcommittee on Energy and Power, in part to defend her agency’s actions in regulating greenhouse gases under the Clean Air Act.  Subcommittee Chairman Ed Whitfield (R-KY), who is sponsoring a draft bill that would revoke the EPA’s ability to regulate greenhouse gases, said that "Congress intends to reassert itself in the statutory and regulatory process at EPA and specifically the Clean Air Act."  Administrator Jackson said that the Clean Air Act and scientific evidence of global climate change compelled her agency to move forward with regulating greenhouse gases and that the proposed legislation “would eliminate portions of the landmark law that all American children and adults rely on to protect them from harmful air pollution." Global warming heats up Republican attacks on EPAWashington Post

 

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