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Washington Energy Report - March 15

March 15, 2010

Kevin C. Fitzgerald

William "Bill" R. Derasmo

Peter S. Glaser

EPA Remains on Track to Finalize Greenhouse Gas Emission Rules by the End of March

Last week, the White House’s Office of Management and Budget (”OMB”) began the final review stage for new automobile standards that would increase the nation’s fleetwide fuel economy and create the first-ever greenhouse gas (”GHG”) regulations for cars and trucks.  The proposed automobile standards are on track to be finalized by the end of March. [Read more →]

IRS Will Not Assert That Grants Made By DOE under Smart Grid Investment Matching Grant Program Are Taxable

On March 9, 2010, the Internal Revenue Service (“IRS”) ruled that Smart Grid Investment Matching Grants given by the Department of Energy (“DOE”) will not be taxable income. [Read more →]

Obama Nominates Cheryl A. LaFleur for Commissioner of FERC; Moeller Renominated

On March 8, 2010, President Barack Obama nominated Cheryl A. LaFleur for Commissioner of the Federal Energy Regulatory Commission (“FERC” or the “Commission”).  If confirmed by the Senate, LaFleur would fill the seat vacated by Suedeen Kelly in December 2009 for a term to expire on June 30, 2014. [Read more →]

FERC Issues Order Approving $350,000 Fine against Florida Reliability Organization

On March 5, 2010, FERC approved a settlement order under which the Florida Reliability Coordinating Council, Inc. (“FRCC”) will pay a $350,000 civil penalty for its part in the February 26, 2008 power outage in southeastern Florida. This is the first time that a regional reliability entity has been fined for violating a mandatory reliability standard. [Read more →]

2nd Circuit Denies Rehearing in Connecticut v. AEP Decision

On March 5, 2010, the U.S. Circuit Court of Appeals for the Second Circuit denied rehearing en banc of its decision in Connecticut v. American Electric Power to allow nuisance claims against emitters of greenhouse gases (GHG).  The 2nd Circuit’s decision comes approximately one week after the 5th Circuit announced it will reconsider its October ruling, Comer v. Murphy Oil, which had also allowed individuals to sue large emitters of GHG for damage caused by climate change. A third tort case based on GHG emissions, Native Village of Kivalina v. Exxon Mobil Corp., is still pending in the Ninth Circuit.  A more complete discussion of these cases may be found here[Read more →]

Wyoming Supreme Court Affirms Decision to Permit New Coal Plant

On March 9, 2010, the Supreme Court of Wyoming ruled that Basin Electric Power Cooperative can continue with construction of its new Dry Fork Station coal-fired power plant near Gillette, Wyoming.  Finding that the state did not have to require best available technologies for controlling carbon dioxide emissions, the court rejected a challenge to the state-issued air permit brought by Earthjustice on behalf of the Powder River Basin Resource Council and the Sierra Club. [Read more →]

FERC Approves Line Transfer from Trans Bay to Pittsburg Power

On March 4, 2010, FERC approved a transfer of title for the 53-mile, 400 MW high voltage, direct-current transmission line and its associated facilities from Trans Bay Cable LLC (“Trans Bay”) to Pittsburg Power Company (“Pittsburgh Power”).  [Read more →]

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