Legal & Regulatory

There has been much excitement about the advent of the "smart grid" recently, especially because of the strong push by the Obama administration. Despite the simple-sounding term, the smart grid is not a simple concept.

The Obama administration has unveiled its long-awaited policy on cyber security of government and private-sector communication and distribution systems. Is it less than meets the eye, as some critics argue?

The Obama administration has pulled the plug on the Department of Energy’s attempts to develop hydrogen-powered fuel cell cars. (The Bush administration had been touting H-powered cars for many years, with nothing to show for the effort other than large expenditures and a General Motors concept car that cost in the millions to build.) At about the same time, the Obama administration announced it would resurrect the billion-dollar FutureGen coal-fired generating project, aimed for Mattoon, Ill.

As expected, President Obama has named Nuclear Regulatory Commissioner Gregory Jaczko, an ally of Sen. Harry Reid (D-Nev.), as chairman of the NRC, almost certainly dooming the Yucca Mountain, Nev., site for disposal of spent nuclear fuel.

It’s not easy writing energy legislation, as the experience of the past demonstrates. Nor are the results always in the public interest.

What makes more sense to reduce greenhouse gas emissions from power plants—a cap-and-trade regime or a carbon tax? It’s a contentious issue among those who generate power and among academic economists and policy makers.

A [state utility regulatory] commissioner asked recently, “By what metrics can I assess my commission’s performance?” That’s a tough question.

In the wake of the recent U.S. Supreme Court ruling related to cooling water intake practices at large power plants, many utilities are relieved to be off the hook as far as implementing expensive control upgrades to protect fish and other aquatic organisms.

What role will coal play as the nation moves toward trying to reduce greenhouse gases? The picture is mixed, as these news stories from around the country demonstrate.

The Supreme Court backs restrictions on “once-through” cooling for new plants, while giving a pass to existing plants.

Coal continues to demonstrate considerable financial muscle in the current economic downturn, despite anti-coal rhetoric and concerns about climate change.

Could demand from plug-in hybrid cars crash the grid? A DOE national lab addresses the issue.

Working for Uncle Sam can be worthwhile or a life-sapping grind, depending on which agency employs you, according to a new survey by the U.S. Office of Personnel Management. Guess which agency ranked best. (Hint: It’s related to power.)

Does customer satisfaction play a meaningful role in guiding utility operations? Many utilities think it does, as do many regulators. The market apparently doesn’t. Data suggest that the jury is out on the question, and the intuitive answer may not match the empirical evidence.

In the 1990s, alarm bells were sounded because the construction of electric transmission infrastructure was not keeping pace with the United States’ rapidly increasing electric demand. More than 10 years later, despite considerable debate and the passage of new legislation, we continue to search for ways to get transmission built. However, it now looks as if 2009 may the year in which the stars finally align to fix the transmission system.

Nuclear loan guarantees in the 2005 Energy Policy Act have proven to be a failure: not just too little, but far too late.

North Dakota garnered most of the Department of Energy’s earmarks in March’s omnibus appropriations bill.

It’s not easy being a regulator as the nation faces several daunting energy challenges—integrating renewables, carbon constraints, reliability, and security into an elderly grid that is barely able to keep up with its current mission of moving power from generator to load.

President Obama promoted "green energy" as a signature theme in his presidential campaign. During his first weeks, he reaffirmed his administration’s commitment to renewable resources. In a radio address, he promised to double the nation’s alternative energy capacity within three years and to construct a 3,000-mile transmission grid to "convey this new energy from coast to coast."

Power plant managers are familiar with selective catalytic reduction (SCR), a technology to reduce emissions of nitrogen oxides from fossil-fueled generating plants. Starting in 2010, SCR technology, using a urea reagent, will also be required on new diesel-powered vehicles in utility fleets, ranging from light-duty pickups to 18-wheelers.

With the U.S. economy currently in a free fall, some utility industry leaders and elected officials argue that carbon cap legislation should be put on hold while the country recovers financially. However, President Barack Obama has a different game plan.

A confluence of circumstances promised to make 2008 a transformative year for renewable energy in the U.S. States enacted additional, and more demanding, renewable portfolio standards, promoting accelerated and sustained development of "green" energy resources. Increasing concerns about global warming and climate change prompted some of this activity. However, the unprecedented escalation of oil prices to almost $150 a barrel (translating into prices at the pump in excess of $4) was the largest impetus for demands that this nation end its addiction to fossil fuels.

California Governor Arnold Schwarzenegger recently signed an executive order expanding the state’s renewables portfolio standard (RPS) requirement to 33% by 2020. The executive order formalizes what has been generally assumed for some time: A 33% RPS requirement will be needed for California to achieve its ambitious greenhouse gas (GHG) emissions reduction goals.

An attendee at a recent industry conference made the cynical observation that the dysfunctionality of our national and state energy policies can be attributed to the fact that implementation of any program is subject to institutional limitations akin to those imposed by the "Articles of Confederation." Readers may recall that the Articles preceded the Constitution as the governing compact for the 13 original states.

On Sept. 12, the California Public Utilities Commission (CPUC) and California Energy Commission (CEC) took the next step in the implementation of Assembly Bill (AB) 32, California’s ambitious greenhouse gas (GHG) emissions – reduction initiative, with the release of a 300-page proposed decision on GHG regulatory strategies.

How often do you get a clash between two great Lone Star icons?

This November, as part of California’s eclectic version of participatory democracy, its residents will vote on whether to amend the Solar and Clean Energy Act of 2008. Proposition No. 7 (Prop 7) promises to place the state on “the path to energy independence.” It would require all California electric utilities, including municipals, to procure 50% […]

The California Air Resources Board (ARB) recently issued its long-awaited draft Climate Change Scoping Plan (Draft Plan) for implementing Assembly Bill (AB) 32, California’s ambitious greenhouse gas (GHG) emissions-reduction initiative. AB 32 requires California to reduce GHG emissions to 1990 levels by 2020—roughly a 30% reduction in projected “business-as-usual” emissions levels or 168 million metric […]

By Steven F. Greenwald and Jeffrey P. Gray David Crane, the CEO of NRG Energy, was recently quoted in a widely disseminated publication as saying: “It is a moral imperative that we take steps to reduce CO2 concentration in the earth’s atmosphere.” One might expect those reacting to Crane’s comments (made in a February 2007 […]

By Steven F. Greenwald and Jeffrey P. Gray These should be good times for environmentalists who focus on “green” energy policy. More than half the U.S. states have adopted renewable portfolio standards (RPS) that require utilities to meet specific renewable generation targets, and many are considering additional actions to reduce greenhouse gas (GHG) emissions. Such […]