FERC v. Powhatan Energy Fund, LLC Saga Ends With Default Judgment Against Powhatan Energy Fund
On March 22, 2023, the U.S. District Court for the Eastern District of Virginia (Court) granted the Federal Energy Regulatory Commission’s (FERC) Motion for Default Judgment and entered a default judgment against Powhatan Energy Fund, LLC (Powhatan Energy Fund). The Court awarded FERC $3,465,108 in disgorgement and $16,800,000 in civil penalties.
Southern District of Texas Enjoins New Waters of the United States Rule
On March 19, 2023, in Texas et al. v. EPA, the United States District Court for the Southern District of Texas issued an order enjoining the Environmental Protection Agency (EPA) and Army Corps of Engineers Waters of the United States (WOTUS) Rule in the states of Idaho and Texas. The injunction went into effect just one day before the WOTUS Rule was set to become final. Texas represents the latest in the multidecade saga of seeking to define the term “waters of the United States” in the context of the Clean Water Act (CWA). Moreover, Texas is just one hurdle EPA’s new WOTUS Rule faces, with a pending Supreme Court case (Sackett v. EPA) and potential congressional action to block the rule both on the horizon.
U.S. Nuclear Regulatory Commission Announces Review of Power Plant Design for Small Modular Reactors
The Biden administration has voiced strong support for commercial nuclear energy as an essential element of the President’s goal of achieving “clean” electricity by 2035 and net-zero emissions by 2050. Last week, the U.S. Nuclear Regulatory Commission (NRC or the Agency), announced a regulatory milestone that inches the advanced nuclear technology sector closer to commercialization of small modular reactor (SMR) technology.
U.S. EPA Proposes New Wastewater Discharge Limits for Coal-Fired Power Plants
On Wednesday, March 8, the U.S. Environmental Protection Agency (EPA) proposed more stringent effluent limitations guidelines and standards for coal-fired power plants, which it estimates will cost $200 million annually while reducing pollutant discharges by approximately 584 million pounds per year. The proposed guidelines and standards update those published in 2015 and 2020 and focus on limiting the migration of toxic metals such as selenium, mercury, and arsenic to drinking water, recreational water, and aquatic life from the following types of wastewaters generated by coal-fired power plants: flue gas desulfurization wastewater, bottom ash transport water, and combustion residual leachate. The proposal includes additional standards for legacy wastewaters previously discharged to surface impoundments.
U.S. FERC Reverses Course on Rehearing, Rejecting Southwest Power Pool Effective Load-Carrying Capacity Accreditation Methodology
On March 2, 2023, in a 3–1 decision, the U.S. Federal Energy Regulatory Commission (FERC) rejected, without prejudice, Southwest Power Pool (SPP) proposal to adopt an Effective Load Carrying Capacity (ELCC) capacity accreditation methodology for wind and solar resources (Rehearing Decision). Commissioner Allison Clements issued a concurring statement, and Commissioner James Danly issued a dissenting statement. The Rehearing Decision reverses FERC’s August 2022 decision accepting, subject to conditions, SPP’s proposal to accredit wind and solar resources based on historical performance using an ELCC methodology (August Decision).
Key Milestones for U.S. Nuclear Projects
This week saw two key milestones for nuclear power, signaling advancement in an industry viewed as critical to securing reliable and carbon-free baseload power for the future. On Monday, March 6, Georgia Power announced that the Vogtle Unit 3 pressurized water reactor achieved initial criticality, meaning nuclear fission was self-sustaining and able to generate the heat necessary to deliver electricity to the grid. The unit is slated to come online in the coming months and is approved to operate under a 40-year Nuclear Regulatory Commission Combined Operating License.
Biden Administration Unveils New Cybersecurity Strategy, Emphasizes Grid Security
On March 2, 2023, the Biden administration unveiled a new National Cybersecurity Strategy that includes various initiatives to protect U.S. energy infrastructure from attacks. The White House strategy comes on the heels of several high-profile attacks on U.S. substations and at a time when federal regulators have placed increased focus on the security of the U.S. energy grid.
White House Solicits Comments on Recommendations for Increased Public Engagement in Federal Rulemaking
On Tuesday, February 7, 2023, the Office of Information and Regulatory Affairs (OIRA) within the White House Office of Management and Budget issued a set of recommendations for broadening public engagement in the federal regulatory process and invited public input on the recommendations through March 10, 2023. The recommendations were developed in response to a commitment to support greater public engagement in the rulemaking process included in the Fifth U.S. Open Government National Action Plan released December 2022. OIRA stated that the recommendations were informed by written submissions and a public engagement session held in November 2022. Thus, OIRA’s solicitation for public input on the recommendations provides a unique opportunity for stakeholders to potentially shape future federal regulatory reform actions.
DOE Announces Over $4B in Energy Transition Project Tax Credit and Grant Programs
The U.S. Department of Energy (DOE), alongside the Internal Revenue Service (IRS) and Department of the Treasury, has announced plans to implement programs funded by the Inflation Reduction Act and the Bipartisan Infrastructure Law: the Low-Income Communities Bonus Credit Program (48(e)), the Qualifying Advanced Energy Project Credit (48C)), and the Advanced Energy Manufacturing and Recycling Grant Program. Together, these programs will make available more than $4 billion in federal tax credits and grants for energy transition projects in an effort to “accelerate domestic clean energy manufacturing and ensure traditionally underserved communities benefit from clean energy technologies.”
