On September 6, 2023, the Federal Register published the Federal Energy Regulatory Commission’s (FERC) Order No. 2023, ‘Improvements to Generator Interconnection Procedures and Agreements,’ a 1,000+ page Final Rule adopting reforms to generator interconnection procedures and amending the pro forma Large Generator Interconnection Procedures (LGIP), the pro forma Large Generator Interconnection Agreement (LGIA), the
Energy Policy & Consulting
IRS Proposes Prevailing Wage and Apprenticeship Regulations
On Aug. 29, the U.S. Department of the Treasury and the IRS proposed regulations and new guidance regarding the prevailing wage and apprenticeship (PWA) prerequisites associated with eligibility for full-value clean energy tax credits under the Inflation Reduction Act. Read on for an overview of the rules and guidance, which provide more certainty and greater…
PHMSA Announces Proposed Rulemaking Affecting Natural Gas Distribution Systems
On Aug. 24, the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration announced the forthcoming publication of proposed rules intended to increase the safety of gas distribution pipelines nationwide. Read on for a brief overview of the proposal, which aims to improve emergency response plans, integrity management plans and operation manuals.
U.S. Transportation Department Grants States $64.4 Million to Bolster Pipeline Safety
On Aug. 2, 2023, the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) announced the grant of $64.4 million to states to improve the safety of pipelines and underground natural gas operations.
The goal of the grant is to provide states with the funding necessary to inspect pipelines and underground natural gas…
CFTC: Calling All Whistleblowers in Carbon Markets
With an “alert” issued June 20, the Commodity Futures Trading Commission is targeting carbon markets by asking whistleblowers to come forward with information about fraudulent or manipulative trading of carbon credits and other environmental commodities as well as related derivatives.
Read on for details about the CFTC’s alert and implications for entities that trade in…
IRS Issues More Guidance for Section 48C Advanced Energy Project Tax Credit Allocation Program
The Inflation Reduction Act of 2022 extended and modified a federal investment tax credit for a broad variety of advanced energy manufacturing projects. The program relies on an application and award process to allocate the tax credits.
Read on for newly released details about the application process and technical guidance for the 48C program.
PUCT Winter Storm Uri Orders Reversed and Remanded by Texas Court of Appeals
On March 17, 2023, the Texas Court of Appeals for the Third District issued an opinion reversing two winter storm Uri orders by the Public Utility Commission of Texas (PUCT) that had raised power prices in ERCOT to $9,000/MWh. ERCOT, the Electric Reliability Council of Texas, manages the electric grid for most, but not all, of Texas and serves approximately 26 million customers.
The decision by the Court of Appeals in Luminant Energy Company LLC v. Public Utility Commission of Texas, No. 03-21-00098-CV, has the potential to affect certain transactions made under the PUCT’s orders. The Court of Appeals not only reversed the PUCT’s orders but remanded them for further proceedings. Should the Court of Appeals’ opinion be upheld, it is unclear how the PUCT will resolve the pricing issues, but it would likely need to hold proceedings to address them. The opinion also raised questions about the authority of the PUCT to issue price caps for Texas’ energy market. Continue Reading PUCT Winter Storm Uri Orders Reversed and Remanded by Texas Court of Appeals
Inflation Reduction Act Creates New Tax Credit Opportunities for Energy Storage Projects
On Aug. 16, 2022, President Joe Biden signed into law the Inflation Reduction Act of 2022 (IRA), which includes new and revised tax incentives for clean energy projects. This alert provides a summary of the IRA’s impact on tax credits for energy storage technologies, which were extended and significantly expanded. Additional alerts will provide summaries of the IRA focused on credits for other clean energy technologies.Continue Reading Inflation Reduction Act Creates New Tax Credit Opportunities for Energy Storage Projects
New Federal Pipeline Safety Regulations Present Work-Product Concerns
As of October 6, 2022, operators of gas and hazardous liquid pipelines must comply with the Pipeline and Hazardous Materials Safety Administration’s (“PHMSA”) Final Rule on “Valve Installation and Minimum Rupture Detection Standards.”[1] The Rule codifies several related design and performance standards across 49 C.F.R. Parts 192 and 195. Those standards largely apply to new or replacement onshore gas transmission pipelines.[2] Now, however, the Rule impacts gas distribution pipeline operators in two significant ways. First, the Rule requires operators to implement and maintain certain emergency notification requirements.[3] Second, the Rule obligates operators to develop, implement, and incorporate “lessons learned” from a post-failure or incident review into their written procedures.[4] Unfortunately for operators, the second requirement illustrates the growing challenge operators face in ensuring that internal investigations remain protected by the work-product privilege.Continue Reading New Federal Pipeline Safety Regulations Present Work-Product Concerns
Department of Commerce Issues Final Rule Imposing Tariff Moratorium for Solar Panels
On Sept. 16, 2022, the Department of Commerce (DOC) issued its final rule effectuating a two-year moratorium on tariffs on certain solar cells and modules exported from Cambodia, Malaysia, Thailand and Vietnam.
As discussed in McGuireWoods’ June 7, 2022, alert, “President Biden Orders Tariff Exemption for Solar Panels,” President Biden’s Proclamation 10414 issued on June 6, 2022, declared an emergency and authorized the Secretary of Commerce to allow the importation of solar cells and modules exported from Cambodia, Malaysia, Thailand and Vietnam for up to two years.
Continue Reading Department of Commerce Issues Final Rule Imposing Tariff Moratorium for Solar Panels