[USA] EPA releases new rule to reduce NOx emissions from powerplants, other sources in nearly a dozen states

On March 15, 2023, the Environmental Protection Agency (EPA) released its final Good Neighbor Plan to cut nitrogen oxide (NOx) pollution from power plants and other industrial facilities in 23 states.[1] [2] The Good Neighbor Plan ensures that these states meet the Clean Air Act’s “Good Neighbor” requirements by reducing pollution that significantly contributes to problems attaining and maintaining EPA’s health-based air quality standard for ground-level ozone, known as EPA’s 2015 Ozone National Ambient Air Quality Standards (NAAQS), in downwind states. The rule limits emissions of NOx during the summertime “ozone season” through a NOx allowance trading program for fossil fuel-fired power plants in 22 states and NOx emissions standards for certain sources within nine industry categories in 20 states.

Under the new rule, power plant owners in these states (except California), will face tighter NOx emissions requirements starting in the 2023 ozone season. Power plants without NOx emissions reduction equipment will have to install the equipment, and power plants with the equipment will be required to run it all the time during the ozone season to protect downwind areas. More reductions will be phased in starting in 2024 and reflect emissions levels that could be achieved through the installation of new emissions controls. In addition, beginning in the 2026 ozone season, the EPA is setting enforceable NOx emissions control requirements for certain sources at new and existing industrial facilities in 20 states. This plan will reduce ozone season NOx pollution by about 70,000 tons from power plants and industrial facilities in 2026.

[1] https://www.epa.gov/newsreleases/epa-announces-final-good-neighbor-plan-cut-harmful-smog-protecting-health-millions

[2] Alabama, Arkansas, California, Illinois, Indiana, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nevada, New York, New Jersey, Oklahoma, Ohio, Pennsylvania, Texas, Utah, Virginia, West Virginia, Wisconsin

[Japan] Japan asks citizens to conserve electricity this winter

On November 1, 2022, Japan requested that households and companies conserve electricity within "a reasonable range" from December 1, 2022, to March 23, 2023, to alleviate a possible power crunch.[1] During the peak winter season, users will be asked to turn off unnecessary lights, wear additional layers of clothing indoors, and turn down their thermostats. In recent years, the country’s power supply has been tight, largely due to the slow restart of nuclear power plants following the 2011 Fukushima nuclear disaster. The Russian invasion of Ukraine has also disrupted global fuel supplies, adding further pressure. During a press conference, Trade Minister Yasutoshi Nishimura said, "The power situation remains severe though we expect to be able to secure the reserve ratio of 3% during the winter.” The trade minister also noted that other measures, such as rebooting idled power plants, making effective fuel procurement, and encouraging power conservation through a point program, were also being implemented.

[1] https://www.reuters.com/business/energy/japan-asks-households-companies-conserve-electricity-during-winter-2022-11-01/

[USA] Biden administration reverses Trump-era plan for the National Petroleum Reserve-Alaska

On April 25, 2022, the Department of the Interior announced that it has signed a new management plan for the National Petroleum Reserve-Alaska (NPR-A), a 23 million-acre area on Alaska’s North Slope.[1] The Bureau of Land Management (BLM) says that the plan “balances protection of special areas and wildlife habitat with responsible resource development.” The BLM had announced in January 2022 that it would review the integrated activity plan (IAP) for the area. The final decision reverses a Trump-era plan that had opened 82% of the NPR-A’s land to oil and gas leasing. The new plan reinstates the previous management plan, which was put into place by the Obama administration in 2013. The new IAP protects about half of the reserves lands, including caribou and avian habitats, from oil and gas leasing. It also includes new requirements for potential oil and gas drilling, such as revised operating standards to protect endangered species. The BLM has held a yearly oil auction in the NPR-A since 2010, with the exception of 2020 when oil and gas prices were low due to the pandemic.

[1] https://www.blm.gov/press-release/following-january-announcement-bureau-land-management-issues-record-decision-national

[USA] Biden’s proposed budget for FY 2023 includes $44.9 billion for clean energy

On March 28, 2022, President Joe Biden unveiled his proposed $5.8 trillion budget for fiscal year (FY) 2023, which includes $3.3 billion for clean energy growth.[1] Biden’s proposed budget includes increasing the Department of Energy’s (DOE) budget by 7.1% to $48.2 billion, up from $45 billion in FY 2022. The increase partly reflects spending required by the 2021 Infrastructure Investment and Jobs Act (IIJA) and includes $200 million for a new Solar Manufacturing Accelerator program to help spur domestic solar equipment production. The proposal also proposes $502 million to weatherize and retrofit low-income homes. This includes $100 million for a new Low Income Home Energy Assistance Program (LIHEAP) Advantage pilot to electrify low-income homes and $260 million to support energy efficiency improvements to Department of Agriculture (USDA)-assisted multifamily homes. In addition, Biden’s proposed budget would provide $150 million to electrify Tribal homes and transition colleges and universities to renewable energy. It also includes $80 million for a new Grid Deployment Office to retrofit the grid.

[1] https://www.whitehouse.gov/wp-content/uploads/2022/03/budget_fy2023.pdf

[USA] House passes $1.2 trillion bipartisan infrastructure bill, Biden expected to sign soon

The House of Representatives voted on November 5, 2021, to pass the $1.2 trillion Infrastructure Investment and Jobs Act, which will boost spending on highways, transit and rail, electric vehicles, climate resilience, energy, and other infrastructure priorities.[1] The Senate approved the bill in August 2021. With approval from the House, the bill now heads to President Biden, who is expected to sign the law. The bill is the result of bipartisan conversations in the Senate that worked to approve some of President Biden’s American Jobs Plan, which proposed $2.3 trillion spending on infrastructure and climate.

In total, the infrastructure bill includes $550 billion in new federal investment, as well as the establishment of a Grid Deployment Authority under the DOE to oversee the development of the power grid. Major energy-related funding in the bill includes $65 billion for energy and the electric grid, such as building thousands of miles of new power lines and expanding renewable energy; $7.5 bill to build a nationwide network of EV charging stations; and $7.5 billion for zero- and low-emission buses and ferries. The infrastructure bill also allocates $50 billion for cyber and climate resilience over five years.

[1] https://www.govinfo.gov/content/pkg/BILLS-117hr3684eas/pdf/BILLS-117hr3684eas.pdf

[USA] CPUC proposes demand response, other measures to reduce outages during extreme heat events

On October 29, 2021, California Public Utilities Commission (CPUC) issued a suite of proposals to address the risk of outages during extreme heat events similar to the ones the state experienced in 2020 and 2021.[1] The proposed decisions create new programs and modify existing programs to reduce energy demand and increase supply during critical times of the day. The proposals are part of the CPUC’s effort to respond to Governor Gavin Newsom’s July 30, 2021, Emergency Proclamation, which urged state energy agencies to ensure there is adequate electricity to meet demand. According to the CPUC, 2,000 to 3,000 MW of new supply- and demand-side resources will help address grid reliability in extreme heat events in 2022 and 2023.[2] 

One of the new proposals is the Demand Response Program for Residential Customers, which would pay residential customers $2 per kWh for reductions in energy use at critical times. Other proposals include doubling the compensation rate of the Emergency Load Reduction Program to $2 per kWh, implementing a $22.5 million smart thermostat incentive program to assist customers in reducing air conditioner use during critical times, and expanding other energy efficiency programs. On the supply side, the CPUC is proposing new energy efficiency programs, such as four new energy storage microgrid projects for San Diego Gas & Electric (SDG&E) to provide a total of 160 MWh of capacity and temporary generation for Pacific Gas and Electric Company (PG&E) to augment its temporary generation program.

[1] https://www.cpuc.ca.gov/news-and-updates/all-news/cpuc-proposals-ensure-electricity-reliability-during-extreme-weather-for-summers-2022-and-2023

[2] Peak demand managed by CAISO in 2020 was 47, 121 MW. The peak demand in 2021 is 43,982 MW as of October 2021.

[Japan] Japan approves new energy plan, aims to double renewables by 2030

On October 22, 2021, Japan’s Cabinet approved the Sixth Strategic Energy Plan, which sets out a framework for achieving the country’s pledge of reaching carbon neutrality in 2050.[1] A draft of the plan was introduced in July 2021 under the government of former Prime Minister Yoshihide Suga, who announced the 2050 target. No major revision was made during the draft stage. The new plan, compiled by the Ministry of Economy, Trade and Industry (METI) every three years, says renewables should account for 36% to 38% of total power production by 2030, up from the 18% recorded in fiscal year 2019. For nuclear power, the plan keeps the target from the 2018 plan, which called for the energy source to account for 20% to 22% of power production in 2030. In 2019, nuclear power made up 6% of total power generation because many nuclear plants have remained closed due to stricter safety rules introduced after the 2011 Fukushima nuclear disaster. The energy policy plan also includes a target for ammonia and hydrogen to account for about 1% of the electricity mix in 2030. Notably, the plan reduces the share of fossil fuels compared to the 2018 plan. Under the new plan, the share of coal in the country's portfolio will be 19% in 2030, down from 32% in 2019. Similarly, the draft reduces natural gas and oil targets to 20% and 2%, respectively, down from 37% and 7% in 2019.

[1] https://www.meti.go.jp/english/press/2021/1022_002.html

[USA] New York regulators reject proposed NRG and Danskammer Energy natural gas plants

The New York Department of Environmental Conservation (DEC) announced on October 27, 2021, that it has rejected Title V air permit applications for NRG Energy’s proposed Astoria Replacement Project and Danskammer Energy LLC's planned Danskammer Energy Center.[1] [2] The DEC rejected the two proposed natural gas-fired plants because their project emissions are inconsistent with achieving the goals set out in New York’s 2019 Climate Leadership and Community Protection Act (CLCPA). New York’s 2019 climate law requires the state to reduce statewide greenhouse gas emissions 40% below 1990 levels by 2030 and 85% below 1990 levels by 2050. The law also requires the state's electricity to be emissions-free by 2040.

Danskammer Energy submitted its air permit application on December 3, 2019, for a 536 MW plant in Newburgh, New York. Astoria Gas Turbine Power, a wholly-owned subsidiary of NRG Energy, submitted its application on April 27, 2020, for a proposed 437 MW facility in Astoria, New York. Both companies put forth several arguments for why the proposed projects meet the requirements of the climate law, including that the projects have lower emissions than the plants they would be replacing. The companies also cited the potential future use of renewable natural gas and hydrogen, which would lower the plants’ environmental impact. NRG and Danskammer Energy have 30 days to appeal the DEC's decision and request an administrative adjudicatory hearing.

[1] https://www.dec.ny.gov/press/124069.html

[2] https://www.dec.ny.gov/press/124070.html

[USA] FirstEnergy agrees to pay $230 million fine for bribing Ohio officials

On July 22, 2021, FirstEnergy Corporation announced that it had reached a settlement agreement with the U.S. Attorney’s Office for the Southern District of Ohio to pay a $230 million penalty for bribing Ohio officials to guarantee the passage of Creates Ohio Clean Air Program (HB-6).[1][2] Passed on July 23, 2019, HB-6 created a ratepayer-funded $1.5 billion subsidy for two northern Ohio nuclear power plants previously owned by FirstEnergy and two coal-fired plants on the Ohio River jointly owned by the state's utilities. When the bill was being considered, FirstEnergy strongly lobbied for the passage of HB-6 and said that it would otherwise have to prematurely close the two nuclear plants. According to the federal disclosure, FirstEnergy cooperated with federal investigators to disclose bribing state officials through dark money groups to get HB-6 passed. FirstEnergy and its subsidiaries donated $59 million between 2017 and 2020 to Generation Now, a group controlled by then-Speaker of the Ohio House of Representatives Larry Householder (R). The company set up a group called Partners for Progress in February 2017 as a 501(c)(4), which are registered lobbying entities, through which it directed $25 million "to entities associated with public officials" over two years.

The U.S. Attorney's Office for the Southern District of Ohio charged FirstEnergy for conspiring to commit honest services wire fraud. The charge will be dismissed so long as FirstEnergy cooperates with the government for the three-year period of the settlement agreement. FirstEnergy must disclose all political donations, including those made to dark money groups, during the three-year period of the agreement. In addition, the agreement requires the company to take other steps such as establishing an executive director role for the Board of Directors and hiring a new chief legal officer.

[1] https://www.firstenergycorp.com/newsroom/news_articles/firstenergy-reaches-agreement-to-resolve-department-of-justice-i.html

[2] https://www.justice.gov/usao-sdoh/pr/firstenergy-charged-federally-agrees-terms-deferred-prosecution-settlement

[Japan] New Prime Minister of Japan sets goal to become carbon neutral by 2050

On October 26, 2020, in his first policy speech since taking office in September 2020, Japanese Prime Minister, Yoshihide Suga, set an ambitious target for his country to be carbon neutral by 2050.[1] According to Prime Minister Suga, achieving that goal will not only good for the world, but also for Japan’s economy and global standing. “Taking an aggressive approach to global warming will bring about a transformation in our industrial structure and economic system that will lead to big growth” in the economy, he said. The prime minister said he would accelerate research and development on key innovative technologies such as next-generation solar batteries and carbon recycling. He also promised a stable energy supply by conserving energy, maximizing the use of renewable energy sources, and promoting nuclear energy policies that place the highest priority on safety. He also plans to radically change Japan's long-standing policy on coal-fired power generation.

Japan is the world’s fifth-largest emitted of greenhouse gases. In 2018, Japan emitted 1.24 billion metric tonnes (1.36 billion US tons) of greenhouse gases, which was 3.9% less than 2017 and 12% less than its peak in 2013.[2] Previously, Japan had committed to going carbon neutral “at the earliest possible date,” and had a goal to reduce greenhouse gas emissions 80 percent by 2050.

[1] https://www.nytimes.com/2020/10/26/business/japan-carbon-neutral.html

[2] https://www.cnn.com/2020/10/26/asia/japan-emissions-target-2050-scli-intl/index.html

[USA] Interior Secretary signs a record of decision authorizing ANWR oil and gas leasing program

On August 17, 2020, Interior Secretary David L. Bernhardt signed a Record of Decision (ROD) approving the Coastal Plain Oil and Gas Leasing Program in the Arctic National Wildlife Refuge (ANWR) in Alaska.[1][2] The Tax Cuts and Jobs Act of 2017 (Public Law 115-97), passed by Congress and signed into law in late 2017, directs the Secretary of the Interior, through the Bureau of Land Management (BLM), to establish and administer a leasing program in the 1.46 million-acre Coastal Plain, a section within the 19.3 million-acre ANWR. Secretary Bernhardt’s August decision determines where and under what terms and conditions leasing will occur in the designated area.

The ROD makes the entire Coastal Plain program area available for oil and gas leasing, and for potential future exploration, development and transportation. The program adopted in the ROD also offers protections for surface resources and other uses through an array of lease stipulations that will apply to future oil and gas activities. Approximately 359,400 acres (23% of available lands) will be subject to No Surface Occupancy (NSO)[3] stipulations within barrier islands and important aquatic habitats, and that approximately 721,200 acres (46% of available lands) will be subject to operational timing limitations in the primary calving habitat area for the Porcupine caribou herd.

[1] https://www.doi.gov/pressreleases/secretary-bernhardt-signs-decision-implement-coastal-plain-oil-and-gas-leasing-program

[2]https://eplanning.blm.gov/public_projects/102555/200241580/20024135/250030339/Coastal%20Plain%20Record%20of%20Decision.pdf

[3] NSO prevents surface disturbing activities from occurring in specific areas

[USA] St. Louis becomes first Midwest city to pass a Building Energy Performance Standard

On May 7, 2020, St. Louis, Missouri Mayor Lyda Krewson signed into law a Building Energy Performance Standard (BEPS) plan that requires buildings in the city to meet energy efficiency standards and establishes resources to help building owners achieve the savings associated with energy efficiency.[1] [2] St. Louis is the first Midwest city and one of only four jurisdictions (includes: Washington State, Washington, D.C., and New York City) in the U.S. to pass a BEPS. The BEPS plan will help the city achieve its goal of eliminating community-wide greenhouse gas emissions by 2050.

The BEPS plan only applies to buildings that are 50,000 square feet or larger and were already required to report their energy and water use under current city law.[3] Under BEPS, these buildings will be required to meet several levels of energy performance. The BEPS plan also requires several energy-saving actions, including upgrading HVAC units, ventilation, lighting and elevators. In addition, the new law sets up a Building Energy Improvement Board to help ensure buildings are complying with new standards and consider owners’ alternative plans when compliance is not possible. The board will be made up of nine members from utilities, labor, affordable housing owners and tenants, and commercial buildings.

[1] https://www.nrdc.org/media/2020/200506

[2] https://www.nrdc.org/experts/nrdc/st-louis-becomes-third-us-city-adopt-bold-standards-slash-energy-waste-buildings

[3] https://www.stlouis-mo.gov/internal-apps/legislative/upload/as-amended/BB219AACombined.pdf

[USA] EPA rule change to save 4 coal plants across Pennsylvania and West Virginia

On April 9, 2020, the U.S. Environmental Protection Agency (EPA) updated its Mercury and Air Toxics Standards (MATS) to assist four struggling coal plants in Pennsylvania and West Virginia.[1] The coal plants burn low-quality coal refuse—waste abandoned from mining and burning coal. Under Obama-era MATS standards these plants did not meet acid gas hazardous air pollutant emissions standards, but the new rule creates a subcategory for these plants. This particular change to MATS is not likely to have a major environmental impact because of its limited scope.

According to the Anthracite Region Independent Power Producers Association (ARIPPA), a group that represents the coal refuse-to-energy industry across West Virginia and Pennsylvania, there are more than 5,000 abandoned mines across Pennsylvania that were never reclaimed, totaling between 200 million and 8 million cubic yards of waste.[2] One remediation solution for the problem, burning waste into energy, became viable in the late 1970s through the Public Utility Regulatory Policies Act (PURPA), which sought to diversify the country’s electric resource profile. Since 1987, more than 212 million tons of coal refuse have been removed in Pennsylvania alone, but the coal plants are now struggling as their economic viability has declined. Without the rule change, two of the four plants affected would have likely closed by the end of May.

[1] https://www.epa.gov/mats/regulatory-actions-final-mercury-and-air-toxics-standards-mats-power-plants

[2] https://arippa.org/wp-content/uploads/2018/12/ARIPPA-Coal-Refuse-Whitepaper-with-Photos-10_05_15.pdf

[USA] Nuclear regulators ease some power reactor regulations in response to COVID-19

On March 28, 2020, the United States Nuclear Regulatory Commission (NRC) released a letter stating that in the face of the COVID-19 pandemic, it is allowing power reactor operators to apply for temporary exemptions from regulations limiting the amount of hours workers can stay on the job.[1] Additionally, the NRC staff is working on a separate memorandum that will guide nuclear plants as to which labor and time-intensive tasks they can temporarily waive. During normal situations, the NRC has several rules about the maximum length of employee shifts and requirements for breaks workers must take between long shifts.  However, the strains created by the COVID-19 pandemic have created a need to ensure that these regulations "do not unduly limit licensee flexibility in using personnel resources to most effectively manage the impacts" of the pandemic.

Nuclear reactors have already been enacting contingency plans designed to limit the number of workers onsite in order to avoid potential exposure to the coronavirus. It is unknown how long nuclear reactors will need operate with these reductions in staff and maintenance tasks, and whether they can stay running as often as they do in normal times, but the NRC measures to loosen restrictions are intended to ease the strain.

[1] https://adamswebsearch2.nrc.gov/webSearch2/main.jsp?AccessionNumber=ML20087P237

[USA] Trump administration slashes required annual fuel economy increase to 1.5%

On March 31, 2020, the Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) issued a final rule that weakens Obama-era fuel efficiency guidelines by requiring corporate average fuel economy (CAFE) and carbon emissions standards to increase 1.5% from 2021 to 2026 rather than 5% annually.[1] The EPA and NHTSA estimate the rule will reduce the sticker price of new cars by about $1,000, but consumers can still, by choice, buy more efficient vehicles.

The March rule is phase two of the Safer Affordable Fuel-Efficient (SAFE) rules. The first phase, issued in fall 2019, revokes states' authority to issue their own fuel standards, specifically targeting California’s fuel standards which are considered to be the biggest driver of electric vehicle (EV) deployment. In September 2019, 23 states including California sued the Trump Administration over the rule.[2] Automakers are split in their support of the lawsuit and California’s standards. Ford, Honda, BMW and Volkswagen support states' rights to set their own standards, but GM, Toyota, and Fiat Chrysler have sided with the Trump Administration's push for a single national standard. The lawsuit is currently pending, and advocates expect litigation on the second rule as well.

[1] https://www.nhtsa.gov/press-releases/safe-final-rule

[2]https://oag.ca.gov/system/files/attachments/press_releases/California%20v.%20Chao%20complaint%20%2800000002%29.pdf

[USA] FERC launches revision of transmission incentives

During its monthly meeting on March 19, 2020, the Federal Energy Regulatory Commission (FERC) announced a notice of proposed rulemaking (NOPR) to change electric transmission incentive policy and stimulate transmission infrastructure development.[1] The NOPR would shift from a "risks and challenges" framework to a model that grants transmission incentives based on benefits to consumers. Essentially, the NOPR would eliminate Order No. 679’s “nexus test,” which requires applicants such as utilities to show a connection between the requested incentives and the risks and challenges associated with the project, and instead provide a series of incentives based on economic and reliability benefits. The NOPR stems from a directive from Congress in 2005 that required FERC to develop incentive-based rates for electric transmission because there is a need to buildout and update the transmission system. The commission has previously implemented rules, but the latest NOPR will more fully take into account the changes to transmission since the past decade of rapid energy transition.

Once the notice is published in the Federal Register, there will be a 90 day comment period. Commissioner Richard Glick dissented in part to the order and objected to the 90 day comment period because he thinks it is too brief given the current coronavirus crisis.[2] Instead, he said the comment period should be extend to 120 days to allow for substantial reactions and create more flexibility. However, Chairman Neil Chatterjee wants to "keep the business of the commission going," though he added FERC expects requests for deadline extensions on some of its processes due to the pandemic.

[1] https://www.ferc.gov/media/news-releases/2020/2020-1/03-19-20-E-1.asp#.Xnur5qhKg2x

[2] https://www.ferc.gov/media/statements-speeches/glick/2020/03-19-20-glick.asp#.XnusH6hKg2x

［USA］New Bill Introduced in Georgia Legislature Would Require Companies to Treat Coal Ash Like Municipal Solid Waste

A new bill—H.B. 756— that would require disposal of coal ash or combustion residuals (CCR) to be as rigorous as municipal solid waste (MSW) was introduced by Rep. Robert Trammell (D) in the Georgia legislature on January 14, 2020.[1] In December 2019, Georgia became the second state allowed the U.S. Environmental Protection Agency to run its own coal ash permitting program which will allow the state flexibility in how it cleans up the toxic waste. Georgia Power's current plans for closing its ash sites includes leaving CCR in unlined ponds. By contrast, MSW in Georgia is disposed in landfills with both bottom liners and collections systems for leachate.

Recently, concerns over the risk of groundwater contamination have grown and a number of states have mandated coal ash cleanup. North Carolina, for example, ordered Duke Energy to excavate roughly 72.5 million metric tons of CCR.[2] There has been no such order in Georgia, though a 2018 report on the coal-fired power plants in the state found that groundwater was contaminated near all but one site.

[1] http://www.legis.ga.gov/Legislation/20192020/187853.pdf

[2] https://news.duke-energy.com/releases/duke-energy-north-carolina-regulators-and-environmentalists-reach-agreement-to-permanently-close-all-remaining-ash-basins-in-north-carolina