In the wake of the February extreme cold weather that caused record levels of electric generation to be taken offline, the Federal Energy Regulatory Commission (FERC or the Commission) has scheduled a two-day technical conference to discuss issues surrounding the threat to electric system reliability posed by climate change and extreme weather. The virtual technical conference is scheduled for Tuesday and Wednesday, June 1 and 2, from 1:00 pm to 5:00 pm ET.
FERC, CFTC, and State Energy Law Developments
FERC issued an original license for a period of 25 years, pursuant to Part I of the Federal Power Act, to Oregon State University (OSU) to construct, operate, and maintain the proposed PacWave South Hydrokinetic Project No. 14616 (PacWave Project). The PacWave Project is a first-of-its-kind wave energy testing facility that will be sited approximately seven miles off the coast of the state of Oregon and consists of both offshore and onshore components.
FERC announced on February 22 that it will open a new proceeding to examine the threats of climate change and extreme weather to electric reliability. The investigation will assess how grid operators prepare for and respond to extreme weather events, including, droughts, extreme cold, wildfires, hurricanes, and prolonged heat waves. The proceeding will include a technical conference with an opportunity for parties to submit comments in advance of that conference.
FERC Chairman Richard Glick announced his plans on February 11 to better incorporate environmental justice and equity concerns into FERC’s decisionmaking process.
The US Department of Energy submitted a report to the president last month on “Economic and National Security Impacts under a Hydraulic Fracturing Ban.” This 80-page report analyzed the effects of a hypothetical United States ban on high-volume hydraulic fracturing technology used with any new or existing onshore wells starting in 2021 through 2025.
Our colleagues in the tax practice recently prepared a LawFlash examining the final regulation on the Section 45Q carbon capture tax credit issued by the US Department of the Treasury and Internal Revenue Service. We discussed the draft regulations in an earlier LawFlash, which also provides background on the Section 45Q credit. Because the final rule was published and took effect before the inauguration of President Joe Biden, the regulation is not subject to the regulatory freeze issued by the new administration.
A LawFlash prepared by our energy team discusses the executive orders issued by President Joe Biden on January 27 to confront the “existential threat” of climate change.