Legal & Regulatory

  • CleanPowerSF: Political Correctness Trumps Energy Policy

    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.”

  • EPA’s Title V Source Policy Takes a Hit

    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 […]

  • New Approaches to Project Mitigation

    The First Law of Thermodynamics holds that the amount of matter and energy in the universe is constant and that no new matter or energy can be created. The corollary Second Law is that when energy is put to use, unusable energy or entropy results. One lesson—other than to beware of lawyers purporting to lecture on physics—is that everything we do has a consequence.
  • Daylight Saving: Energy Policy or Placebo?

    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. […]

  • Proposed Cooling Water Rule’s Ripple Effects

    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.

  • When Successful Procurement Policies Fail

    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.

  • Can California’s Cap-and-Trade Program Turn Manure into Gold?

    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.

  • States Promote Clean Energy Programs

    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.

  • Suing for (Pipeline) Safety

    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.”

  • Rethinking Security Requirements for Generation Developers

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