U.S. FERC Issues Two Orders Clarifying the Scope of its Natural Gas Act Jurisdiction

On September 22, 2022, the U.S. Federal Energy Regulatory Commission’s (FERC) denied two separate complaints against natural gas pipelines located entirely within one state that turned on whether FERC had jurisdiction over the facilities under the Natural Gas Act (NGA). (more…)

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Electric Reliability Council of Texas’ Independent Market Monitor: Conservative Operating Posture Could Cost Consumers $1.5B

On June 22, 2022, the Electric Reliability Council of Texas (ERCOT) Independent Market Monitor director, Carrie Bivens, testified before the Texas House State Affairs Committee on the ERCOT market design, reporting that ERCOT’s “conservative” operating posture since Winter Storm Uri could add $1.5 billion to consumer bills in 2022. (more…)

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FERC’s June Open Meeting Dominated by Electric Transmission Proposed Rulemakings

NOPR to Reform Generator Interconnection Procedures and Agreements

On June 16, 2022, the Federal Energy Regulatory Commission (FERC) took another step to ease access to the transmission grid with a Notice of Proposed Rulemaking (NOPR) on Improvements to Generator Interconnection Procedures and Agreements. The NOPR seeks to reform FERC’s current procedures and agreements, and in doing so (1) address the significant interconnection queue backlogs, (2) provide greater certainty, and (3) prevent undue discrimination against new generation technologies. (more…)

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U.S. FERC: The Next Battleground for Defining “Responsibly Sourced Natural Gas”

The U.S. Federal Energy Regulatory Commission (FERC) is expected to issue an order later this month that could influence the development of “responsibly sourced natural gas” (RSG), natural gas certified by a qualified third party as meeting certain performance and operational criteria. Some in the energy industry have touted RSG as a way to meet net-zero and lower carbon emissions goals. (more…)

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FERC Issues 2022 Summer Energy Market and Reliability Assessment, Warns Extreme Weather Could Pose Operational Challenges

On May 19, 2022, the Federal Energy Regulatory Commission (FERC) staff issued its 2022 Summer Assessment for energy markets and electric reliability. The report finds that U.S. electric markets are expected to have sufficient capacity and reserves to maintain reliable operations under normal conditions but warns that higher than average temperatures are expected for the coming summer.

The 2022 Summer Assessment also notes the following: (more…)

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FERC Rolls Back its Recently Enacted Policy Statements on the Certification of New Natural Gas Infrastructure

The Federal Energy Regulatory Commission (FERC) announced on March 24, 2022, that it will delay enacting any changes to its existing policies on the authorization or certification of interstate natural gas pipeline infrastructure under Sections 3 and 7 of the Natural Gas Act. Two policy statements FERC issued on February 18, 2022, in Docket No. PL18-1 and Docket No. PL21-3 (collectively, the 2022 Certificate Policy Statements) have now been deemed “drafts” that are subject to further comment. Initial comments will be due on April 25, 2022, with reply comments due on May 25, 2022. One of the two policy statements, which had been deemed “interim” but given immediate legal effect on February 18 prior to being relabeled a “draft” on March 24, had an initial comment date of April 4, 2022, which has now been extended to the aforementioned dates. Sidley provided a detailed summary of the changes implemented in the 2022 Certificate Policy Statements in a prior client alert and Energy Brief. (more…)

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Sidley Energy Enforcement Update

This Sidley Update addresses the following:

  • District court judge finds that FERC may not pursue joint and several liability and disgorgement in Coaltrain case – FERC seeks interlocutory appeal.
  • FERC Report on Enforcement highlights increased enforcement activity in 2021.
  • FERC approves settlement between Enforcement staff and Golden Spread.
  • FERC orders penalties against GreenHat Energy, LLC and individuals.
  • DOJ and CFTC charge Puerto Rico resident and his firm for misappropriation of nonpublic information and fictitious trading.

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U.S. Senate Advances Bipartisan Infrastructure Package

This week, the U.S. Senate advanced a much-anticipated bipartisan infrastructure bill. After months of negotiations and a failed procedural vote last week, the White House and a bipartisan group of Senators unveiled a bipartisan infrastructure deal to provide $550 billion in new spending on July 28. That same day, in a 67-32 vote, 17 Republicans joined all 50 Democrats to invoke cloture on the motion to proceed to the bill. Today, the Senate passed another bipartisan procedural vote to officially consider the bill on the Senate floor. While the Senate continues to work on finalizing the legislative text, the following topline funding provisions were released:

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TSA Issues Directive to Enhance Pipeline Cybersecurity

The U.S. Department of Homeland Security’s Transportation Security Administration (“TSA”) issued a Security Directive, “Enhancing Pipeline Cybersecurity” on May 28, laying out new cybersecurity requirements for operators of liquids and natural gas pipelines and LNG facilities designated as critical infrastructure. (more…)

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White House Unveils Expansive Infrastructure Proposal

President Joe Biden unveiled the first of his two-part infrastructure proposal on Wednesday, March 31. Referred to as the American Jobs Plan, the package would provide $2.3 trillion in spending to support traditional infrastructure upgrades and activities within a new, more expansive definition of infrastructure. The plan provides $621 billion for transportation infrastructure and resiliency activities, $115 billion of which would fund repairs to roads and bridges. This also includes $174 billion in electric vehicle (EV) investments to create a national network of 500,000 EV chargers by 2030, electrify at least 20% of school buses, and electrify the federal fleet, including the U.S. Postal Service. In addition, the proposal provides $111 billion in water infrastructure funding, which includes $45 billion to replace 100% of the nation’s lead service lines and $10 billion to monitor and remediate per- and polyfluoroalkyl substances (PFAS) in drinking water.

(more…)

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