Legal & Regulatory

Combined heat and power offers many advantages for distributed generation. But leveraging them requires some careful planning and forethought.

President Obama enters 2013 with a solid win in his pocket—and a host of challenges and decisions awaiting him.

The pendulum has recently swung back against nuclear as gas-fired power has surged in response to low prices and abundant supplies. Can nuclear ever regain its edge?

The California Air Resources Board (CARB) recently kicked off a new era in its cap-and-trade program designed to reduce greenhouse gases (GHG) when it held its first GHG emissions allowance auction on November 14. While CARB pronounced the auction a success, the low price and lukewarm demand for allowances evidences market reticence to fully embrace the program.

In 2002, California enacted legislation authorizing municipalities to establish Community Choice Aggregation (CCA) programs. In September 2012, the San Francisco Board of Supervisors adopted “CleanPowerSF” to be the CCA program available for city residents. Its supporters describe CleanPowerSF as “a 100% renewable energy alternative.” Supervisor David Campos exalted that CleanPowerSF “will stimulate the local economy, create jobs and most importantly secure our independent, clean energy future.”

With the power industry already facing a completely new, government-mandated approach to cybersecurity, CIPS 5, the Federal Energy Regulatory Commission has launched another regulatory venture that will result in a new set of reliability standards—this one designed to protect the bulk power system from solar storms.

A complex tangle of Clean Air Act rules is making life difficult for folks in the power industry, often seeming to go in different directions at the same time. It could get worse and here’s an attempt to make some sense of the confusion.

Location, location, location. This has long been the guiding principle for selling real estate. Now, due to a recent appellate case, the U.S. Environmental Protection Agency (EPA) has learned this concept’s importance in determining under what conditions multiple facilities can be aggregated as a single source under the Clean Air Act (CAA) Title V permitting […]

Making sense out of the NERC cyber security rules is inherently difficult; the ever-changing regulatory scene makes it even harder. With Version 4 now in hand, Version 5 is on the way.

In December 1973, President Richard Nixon explained to the American people his administration’s critical initiative to confront the “energy crisis” du jour (precipitated by the 1973–74 Arab oil embargo): “Many [energy savings measures] require inconvenience and sacrifice. But daylight saving time… will mean only a minimum of inconvenience and will involve equal participation by all. […]

The U.S. Environmental Protection Agency (EPA) has a long history of making waves with the electric power industry because of its efforts to regulate the way thermal power plants construct and operate their cooling water intake structures (CWIS). These structures divert billions of gallons of water into power plants’ cooling systems and can injure or kill billions of aquatic organisms.

We are hot and heavy into election season, and there is a lot of buzz about “jobs.” We hear about job-killing regulations (mostly from Republicans) and the wonders of green jobs (mostly from Democrats). All this, of course, is aimed at tying favored policy options to something the average voter can understand, the need for […]

California is approaching a tipping point with respect to the near-term economic viability of existing non-utility generation. The procurement policies and practices implemented in response to the statewide energy crisis over a decade ago have evolved into market conditions that do not offer “uncontracted” existing resources with sufficient and stable enough revenue streams to recover going-forward costs. Continued adherence to these policies will subject such resources to an increasing risk of economic retirement, threatening long-term reliability and potentially costing electric consumers billions of dollars.

California’s Cap-and-Trade Program is the only cross-industry, market-based climate change regulatory program in the United States. This program may provide a good investment opportunity for dairy farmers, livestock owners, and others if the program’s Livestock Project protocol for offsets can get off the ground and maintain a viable price for greenhouse gas (GHG) allowances.

Consider state clean energy funds as potential replacement funding sources for future clean energy projects.

Washington’s greenhouse gang has learned that global warming is a losing issue. They’re back with a new strategy.


While the proposed federal renewable portfolio standards (RPS) continue to be caught in Washington gridlock, a number of states are aggressively enacting programs that promote renewable energy, such as wind and solar power.

As a Valentine’s Day present to federal regulators, San Francisco City Attorney Dennis Herrera took the unusual step of suing the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA). The complaint alleges that the PHMSA has “abjectly failed to oversee the [California Public Utilities Commission’s (CPUC’s)] pipeline safety program or to ensure that federal pipeline safety standards are enforced.” The complaint chastises the PHMSA for “shirking that duty for over a decade, if not longer.”

A universal reality for U.S. power generation developers is the challenge of obtaining funding in today’s tight credit markets.

A year has passed since Japan’s Fukushima Daiichi nuclear plant was destroyed by earthquake and tsunami. What is the economic price Japan must pay?

When the Soviet Union’s Chernobyl nuclear power plant exploded in 1986, the response of the Western nuclear industry was, “It can’t happen here.” And then there was Fukushima Daiichi disaster in 2011. Was one disaster worse than the other?

The EU has poured billions of dollars in support of the development of wind and solar projects over the past decade. Have the Europeans now lost their appetite for all things green?

The rapid growth of gas extraction by hydraulic fracturing has drawn increasing allegations of property damage and health risks. In many cases, these allegations are being followed by a wave of lawsuits.

The U.S. Environmental Protection Agency’s (EPA’s) new Mercury and Air Toxics Standards (MATS) rule for power plants has critics’ tempers flaring. Not surprisingly, a number of electric power representatives, industry groups, and elected officials oppose the rule, which was released on Dec. 21, 2011.

In discussing implementation by the California Public Utilities Commission (CPUC) of California’s new renewable energy law, CPUC Commissioner Timothy Alan Simon urged consideration of the economic, technical, and political consequences of the CPUC’s actions: “Renewable energy is a fuel source—it’s not a religion.” The promotion of renewable energy remains critical, but as Commissioner Simon admonishes, […]

Gas turbines are expensive. Although peaking units aren’t as costly as baseload units, letting them sit idle is still a waste. Yet that is what peaking units spend nearly all their time doing. Some operators only fire up their units a few days a year. That is like putting money in the bank and collecting interest a few hours at a time, rather than all year round. That strategy only works when the payback is extremely high for those short periods.

Energy professionals and the general population are both acutely aware of the explosion of a Pacific Gas & Electric Co. (PG&E) natural gas pipeline in San Bruno, Calif., that led to the death of eight people and the total destruction of 38 homes in September 2010. The tragic accident garnered immediate national attention, thrusting the natural gas industry into the spotlight. The California Public Utilities Commission’s (CPUC) Independent Review Panel neatly encapsulated the sentiment surrounding the event: “The fact that a large segment of pipe literally blew out of the ground in an urban neighborhood and the residents were generally unaware of the proximity of a high-pressure natural gas transmission system to their homes—raises significant public safety concerns.”