In November 2019, New Jersey Governor Phil Murphy issued Executive Order 92 increasing the state’s offshore wind generation goal from 3,500 MW by 2030 to 7,500 MW by 2035. To date, the New Jersey Board of Public Utilities (BPU) has approved only one 1,100 MW offshore wind project, but is expected to conduct additional solicitations in 2020 and 2022 and approve approximately 2,400 MW of additional offshore wind generation.
New Jersey Governor Phil Murphy signed S. 2252 into law on January 17, 2020. The bill takes steps to advance electric vehicle (EV) goals proposed in the draft New Jersey Energy Master Plan (which was released in June 2019 but has not been posted in final form). By enacting this legislation, New Jersey joins several states, including Oregon and Colorado, that have taken action to encourage EV adoption in recent months.
The bill establishes statewide goals for EV growth in New Jersey and the development of statewide charging infrastructure, each of which will be supported by $300 million in state incentives over the next decade through programs to be established by the New Jersey Board of Public Utilities (BPU). The bill also advances electrification of the state’s transportation fleet by requiring state agencies to escalate purchases of EVs.
Morgan Lewis has been named Energy Group of the Year by Law360 for our work assisting energy clients in deploying innovative pricing models, navigating complicated regulatory requirements, and managing crises. Partners Kathryn Sutton and Richard Filosa discussed the firm’s significant victories for clients that earned the group a place among Law360’s Practice Groups of the Year in this profile.
The US Department of the Treasury’s Committee on Foreign Investment in the United States (CFIUS) on January 13 published the final rules implementing the Foreign Investment Risk Review Modernization Act (FIRRMA). FIRRMA ushered in noticeable changes and higher awareness of CFIUS and its impact on foreign investment in the United States. The new rules are effective February 13.
A notice of proposed rulemaking (NPRM) titled, “Update to the Regulations Implementing the Procedural Provisions of the National Environmental Policy Act,” published today by the White House’s Council on Environmental Quality (CEQ), is likely to have far-reaching effects for the energy and public infrastructure sectors, and could facilitate more efficient implementation of energy production/generation projects for all major energy sources (i.e., renewable, fossil, nuclear, and hydroelectric sources) as well as transportation projects.
The proposed rule has four major elements: (1) to modernize, simplify, and accelerate the NEPA process; (2) clarify terms, application, and scope of NEPA review; (3) enhance coordination with states, tribes, and localities; and (4) reduce unnecessary burdens and delays.
It will be important for industry entities that depend on federal agency action when advancing projects and securing permits to actively participate in the proposed rulemaking, and to provide meaningful comments that will help the CEQ build a sufficient agency record to defend against any later litigation challenges to new regulations.
The Federal Energy Regulatory Commission (FERC) on December 19, 2019, directed PJM Interconnection to extend its minimum offer price rule (MOPR) from new natural gas–fired electric generators to also cover any generator that receives or is entitled to receive certain types of state subsidies. The rule aims at preserving competitive capacity auctions by preventing resources that receive subsidies from submitting bids that would otherwise be uneconomical—and therefore likely to “capture” a PJM capacity award based on a below-market capacity rate—if not for state support. The order means that existing or planned resources that expected to clear capacity markets with rates made economical by state subsidies will have to identify alternate strategies to generate revenue; so too will states seeking to promote the development or prevent the retirement of preferred but noncompetitive resources.
Join Morgan Lewis lawyers for these upcoming programs:
EBA Primer Series: Cybersecurity in the Energy Industry
December 09, 2019
Participants: Arjun Prasad Ramadevanahalli
Energy Storage: Regulatory, State, and Transactional Developments
December 12, 2019
Participants: Neeraj Arora , Kenneth M. Kulak , Levi McAllister
Electrifying the Transportation and Building Sectors in the PJM Footprint
December 18, 2019
Participants: Kenneth M. Kulak, Stephen M. Spina
With the degree of scrutiny applied to H-1B petitions at an all-time high, it is important for employers, including those in the energy industry, to begin assessing their H-1B needs. Read the LawFlash prepared by our immigration lawyers for guidance on immigration status assessments.
At its open meeting on November 21, FERC announced organizational changes to enhance the agency’s focus on cybersecurity threats and challenges to electric infrastructure. Commission staff unveiled five “focus areas” related to grid cybersecurity and announced organizational changes within the Office of Energy Projects (OEP) and Office of Electric Reliability (OER) designed to better position Commission resources to address cybersecurity concerns.
New Strategic Focus Areas
Commission staff developed the following five focus areas based on their review of threat reports (public and nonpublic), global cybersecurity events, North American Electric Reliability Corporation (NERC) CIP standards, and OEP’s specialized security program for hydropower projects.
- Supply Chain/Insider Threat/Third-Party Authorized Access
This is not the first time the Commission has made supply chain and third-party (or vendor) management security a priority. In 2016, the Commission directed NERC to develop mandatory supply chain risk management controls, which have since been approved and are set to take effect next year.
In an effort to address anticipated electricity shortages and reliability challenges in California, the California Public Utilities Commission (CPUC) voted on November 7 to authorize the procurement of 3,300 MW of energy by 2023. The CPUC also intends to seek extensions of certain compliance deadlines from the State Water Resources Control Board for almost 4,800 MW of gas generation units due to retire soon because they use ocean water for so-called “once-through cooling,” which can have a detrimental impact on marine life.
For more details on the CPUC’s actions, read the full LawFlash.