The Federal Energy Regulatory Commission (FERC) has proposed substantial changes to its policies for awarding ratemaking incentives for new transmission investment.  The most fundamental change is that FERC would no longer award incentives based on a proposed project’s risks and challenges but would instead award them based on its economic and reliability benefits.  In addition, the incentive for a higher return on equity for project investment would be potentially more generous than under the current policy.  FERC’s proposal should be of interest to utilities, transmission-only companies, market participants who pay transmission rates, customers and investors interested in developing transmission projects.
Continue Reading FERC Considering Changes to Transmission Incentives

The Midcontinent Independent System Operator (MISO), a Regional Transmission Organization (RTO), has proposed to the Federal Energy Regulatory Commission (FERC) tariff provisions that would treat electric storage facilities as transmission-only facilities if they provide the preferred solution to a transmission issue in MISO’s regional planning process.  This is the first such proposal by a wholesale electric market operator.  Up to now, storage facility requests to qualify as transmission facilities have been few and case-specific.  Treatment as a transmission resource provides additional deployment opportunities for storage resources and allows them cost recovery through cost-based transmission rates instead of relying on energy market revenues.  Standardized tariff-based terms and conditions for qualifying as a transmission resource should provide an easier path to such treatment.
Continue Reading Proposal to Treat Electric Storage as Transmission Now Before FERC

On March 4, 2020, the European Commission delivered the first major climate piece of its European Green Deal: it proposed a “European Climate Law,” which takes the form of a Regulation and establishes a framework for the irreversible and gradual reduction of greenhouse gas emissions and the enhancement of removals in the European Union.  The proposal and the fact that it takes the form of a binding Regulation may have a significant impact on a wide variety of legislative and policy initiatives that the EU and its Member States may take within the next years.
Continue Reading Call Me By My Name: The Importance of the European Commission’s Proposed Climate Change Law

Under EPA’s 2016 Emerging Viral Pathogens policy, pesticide registrants can obtain EPA “pre-approval” for their product to make claims to kill emerging viral pathogens when the policy is “activated,” so long as the pesticides have been approved for use on similar viruses.  These include common household and workplace disinfectant products, which are generally regulated as pesticides by EPA.  The policy was activated for the first time in response to the COVID-19 outbreak, allowing certain claims to mitigate the coronavirus to be made for certain registered pesticides approved under the policy.  Several recent OSHA and EPA developments underscore the importance of pesticide registrants securing approval under the policy, as well as its limitations.
Continue Reading New EPA and OSHA COVID-19 Guidance Underscore the Importance of Securing Pesticide Approval under EPA’s Emerging Viral Pathogens Policy

Last week, the European Commission took a major step to implement the climate aspects of its European Green Deal.  It presented a proposal for a European Climate Law and two consultations on its announced Climate Pact and Carbon Border Adjustment Mechanism (“CBAM”).
Continue Reading Climate Change: The EU Moves Towards a Carbon Border Adjustment Mechanism

The Department of Energy (“DOE”) is proposing to extend to December 31, 2050 the standard twenty-year term for authorizations to export natural gas and liquefied natural gas (LNG) from the U.S. lower-48 states.  According to DOE, the longer term would better match the operational life of LNG export facilities, provide more security in their financing, and maximize the ability to contract for exports.  This change in DOE policy will be of interest to gas and LNG export authorization holders and their counterparties in sales contracts, and to proposed export applicants that are now seeking or will seek such authorizations from DOE.
Continue Reading DOE Proposes to Lengthen LNG Export Terms

EPA on February 28 released a web portal containing links to “all of EPA’s active guidance documents,” as required by last year’s Executive Order 13891, “Promoting the Rule of Law Through Improved Agency Guidance Documents.” In total, EPA’s portal contains over 9,100 guidance documents, from EPA’s various Headquarters offices and each of its 10 Regions. EPA also notes that it withdrew a number of guidance documents “that were determined to be no longer relevant,” but has not provided a listing of such documents.
Continue Reading EPA Releases Comprehensive Guidance Database, With Significant Ramifications for Auer Deference

This month, situated among foldable tablet computers and flying taxis, the U.S. Secretary for Transportation, Elaine Chao, unveiled at the Consumer Electronics Show (“CES”) the U.S. Department of Transportation’s (“DOT”) long-anticipated fourth round of automated vehicles guidance, “AV 4.0.”  Formally entitled, “Ensuring American Leadership in Automated Vehicle Technologies,” AV 4.0 is less regulatory guidance and more regulatory aggregator.  The document lists in great detail the various Administration efforts—across 38 federal departments and agencies—geared toward promoting, supporting, and providing accountability for users and communities with respect to autonomous mobility.
Continue Reading IoT Update: DOT Introduces Fourth Round of Automated Vehicles Guidance (AV 4.0)

On December 20, 2019, the Supreme Court of the Netherlands confirmed the judgements of a District Court and an Appeal Court requiring the Dutch Government to achieve a reduction of greenhouse gas (“GHG”) emissions of 25% by 2020 compared to 1990, instead of the 20% reduction that the government had envisioned since 2011. The case was brought by the Urgenda Foundation — a Dutch NGO — and has resulted in a landmark decision that may influence climate change litigation in other countries across Europe, such as the lawsuit filed by NGOs in Germany on January 15, 2020.
Continue Reading The Dutch Supreme Court holds that the Netherlands Has a Human Rights Obligation to Mitigate Climate Change: The Urgenda Case

Electronic devices and their components marketed in the European Union and European Economic Area are subject to a morass of environmental and product safety requirements that is only likely to increase with the EU’s implementation of its Circular Economy Strategy in the near future.  The requirements apply to all types of equipment, from sophisticated information technology equipment, to military equipment, aircraft components, electronic medical devices, household electronics, consumer devices, and industrial tools.
Continue Reading Environmental and Safety Requirements Affecting the Marketing of Electronic Devices and their Components in the European Union and European Economic Area