On October 7, 2023, California Governor Gavin Newsom signed into law two sweeping climate disclosure bills, Senate Bill 253 (“SB 253”), the Climate Corporate Data Accountability Act, and Senate BillContinue Reading Change is in the Air: Everything You Need to Know About California’s Sweeping New Climate Disclosure Laws
On July 10, 2023, California Governor Gavin Newsom signed into law a package of bills intended to accelerate critical infrastructure projects across the State aimed at achieving monumental climate and clean energy goals while also creating up to 400,000 jobs. With the goal of “building more, faster,” this infrastructure streamlining package will take effect immediately, and includes portions of Newsom’s previously proposed infrastructure package reforming the California Environmental Quality Act (CEQA).Continue Reading Build More, Faster? Newsom Signs Infrastructure and Budget Legislation
On May 19, 2023, California Governor Gavin Newsom proposed a legislative package of 10 bills reforming the California Environmental Quality Act (CEQA) intended to speed up construction of clean energy projects by streamlining regulations for solar, wind, and battery storage projects, transit and regional rail infrastructure projects, water storage projects, and the Delta Tunnel plan. The proposed measures were designed as mechanisms to accelerate such projects to completion in order to maximize California’s share of federal infrastructure dollars available through the Infrastructure Investment and Jobs Act and Inflation Reduction Act (IRA) and expedite the implementation of projects that meet the state’s ambitious economic, climate, and social goals.Continue Reading CEQA Reforms for Clean Energy Projects: Still Possible Despite Senate Budget Committee Rejection?
Last week, in California Restaurant Association v. City of Berkeley, the Ninth Circuit ruled the federal Energy Policy and Conservation Act (EPCA) preempts local bans on the installation of natural gas infrastructure in new construction. Specifically, the Ninth Circuit held that EPCA’s preemption of local efforts to regulate the energy use of natural gas appliances is to be construed broadly, applying equally to regulations that affect the use of such appliances. In other words, because the City of Berkeley’s ban on natural gas pipes in new construction “render[ed] the gas appliances useless,” it had improperly infringed on the federal government’s exclusive power to regulate the use of gas appliances.Continue Reading Ninth Circuit Strikes Down Berkeley’s Ban on Natural Gas in New Construction, Dealing Blow to California’s Electrification Efforts
In the closing weeks of 2022, the California Air Resources Board (“CARB” or “Board”) approved its final 2022 Scoping Plan, which sets forth a detailed roadmap to accelerate the reduction of greenhouse gas (“GHG”) emissions in order for the state to achieve carbon neutrality by 2045, with an interim goal of achieving a reduction in GHG emissions of 40% below the 1990 level by 2030 (the goal adopted by the State in 2017’s SB 32).Continue Reading California Air Resources Board Adopts 2022 Scoping Plan
With 2022 having just come to an end, we wanted to take the opportunity to spotlight some of the most impactful climate change legislative and regulatory actions taken in California.Continue Reading 2022 in Review – California Climate Change Policy and Legislation
On November 14, 2022, the Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) published a proposed rule that would amend the Federal Acquisition Regulation (FAR) to require Federal contractors that receive annual Federal contract obligations over a specified amount to disclose their greenhouse gas (GHG) emissions and climate-related financial risk, and set science-based targets to reduce GHG emissions. This proposed rule implements section 5(b) of Executive Order 14030, Climate-Related Financial Risk, which we previously wrote about here. The Government will consider comments from interested parties that are submitted by January 13, 2023, after which a final rule will be formulated.Continue Reading Proposed Rule Requires Contractors to Disclose Greenhouse Gas Emissions and Climate-Related Financial Risk
The U.S. Fish and Wildlife Service (the “Service”) published a proposed rule listing the tricolored bat as an endangered species under the Endangered Species Act (“ESA”). The tricolored bat occurs in portions of 39 states, including Texas, Iowa, and Oklahoma, which contain a significant concentration of utility-scale wind projects. In combination with the Service’s proposed “endangered” designation for the northern long-eared bat, the new proposed rule could complicate wind energy project permitting across the country.Continue Reading U.S. Fish and Wildlife Service Proposes Listing Tricolored Bat as Endangered Under Endangered Species Act
Offshore wind development off the California coast took another step closer to reality on August 10, 2022 with the California Energy Commission’s release of a report setting maximum feasible capacity and megawatt goals for 2030 and 2045. The report constitutes a milestone in the planning process prescribed by AB 525, which requires that the Commission “evaluate and quantify the maximum feasible capacity of offshore wind to achieve reliability, ratepayer, employment, and decarbonization benefits” for 2030 and 2045.Continue Reading California Energy Commission Releases Milestone Offshore Wind Energy Report and Sets Maximum Feasible Capacity and Megawatt Planning Goals for 2030 and 2045
The Federal Energy Regulatory Commission (“FERC” or “Commission”) issued on April 16, 2020 two orders largely denying requests for rehearing of its prior decisions that, among other things, subjected to minimum offer price thresholds energy resources participating in PJM Interconnection, L.L.C.’s (“PJM”) capacity market which receive so-called “State Subsidies”. FERC reaffirmed that a resource within broadly-defined categories (e.g., renewable resources) receiving State Subsidies must offer capacity in PJM’s forward capacity market at or above an administratively-established price floor (i.e., the minimum offer price rule, or “MOPR”), regardless of such a resource’s actual incremental costs. Potential and likely ramifications of the Commission’s actions, arguments opponents of the April 16 Orders are likely to raise and potential paths forward for industry market participants are set forth below. Additionally, the most promising arguments that could be used to invalidate the April 16 Orders, some of which are discussed below, have not been raised before or addressed by FERC.
Continue Reading FERC Reaffirms Controversial Energy Capacity Decisions: Insights and Analysis
On February 20, 2020, the Federal Energy Regulatory Commission (“Commission” or “FERC”) issued several orders narrowing New York Independent System Operator, Inc.’s (“NYISO”) buyer-side market power mitigation rules in its mitigated capacity zones, including NYISO’s proposal to exempt up to 1,000 megawatts (“MW”) of renewable resources from NYISO’s buyer-side market mitigation rules in a capacity auction year (“NYISO Renewable Exemption Order”). The Commission’s actions will significantly impact renewable resources in NYISO, PJM Interconnection, L.L.C. (“PJM”), and potentially other organized markets. Rejection of the proposed MW exemption will hinder renewable resources’ participation in NYISO’s capacity auction by: (i) requiring them to bid no lower than an established price floor, regardless of their actual incremental costs; and (ii) tightening currently-available mitigation exemptions.
Continue Reading FERC Continues to Squeeze Renewable Resources Participating in Wholesale Electric Capacity Markets