Congress

Despite state efforts to follow the European model of state-mandated feed-in tariffs to promote renewable power, these actions won’t pass Constitutional muster. The Supremacy Clause makes a formidable legal barrier.

Low carbon prices might not produce sufficient incentives for firms to innovate and reduce emissions in the long run. But relatively high carbon prices can be politically unacceptable and invite consumer backlash. Where’s the right balance? A PUC chairman offers an alternative approach to managing GHG emissions.

Should whistleblower-protection provisions of the federal Energy Reorganization Act protect an employee of a small firm that has a staff augmentation contract with a regulated nuclear energy technology company? The battle of the briefs has been blazing in a federal case set to answer that question.

Will CO₂ reductions and investments in non-emitting resources lead to rising costs and economic malaise? Not if America ramps up natural gas generation and turns down coal generation to achieve CO₂ reductions of 14 to 20 percent.

Generation

Siemens Energy has been awarded an 18-month, $300,000 R&D program by the Illinois Clean Coal Institute to study the effects of coal and coal-derived syngas combustion on the behavior of material and coating degradation in utility boiler and gas turbine environments. Focus areas of the research program will explore materials degradation modes in integrated gasification combined-cycle (IGCC) systems and utility boilers.

Six weeks ago, FERC opened a notice of inquiry to invite industry comments on whether wind, solar, and other intermittent energy sources face unfair obstacles in wholesale power markets. Now assigned their own acronym—VERs, for “variable energy resources”—renewables make up a growing percentage of the nation’s energy supply portfolio. But as FERC notes, they present “unique challenges,” especially in terms of constraints on location and limits on the degree to which system operators can control or dispatch individual VER units. Thus, FERC suggests that certain common rules and practices, such as those for unit commitment, dispatch, and scheduling, might make it overly difficult to integrate VERs into the grid.

Opinion polls show that Americans are growing tired of eco-nannyism. This isn’t a new trend, but on February 7 it went prime-time, during the biggest TV event of the year: Superbowl XLIV.

Regulatory policies are evolving to make demand response and smart-grid planning a reality across the country. Cooperation between federal and state lawmakers will allow local flexibility within a uniform national framework.

The feds are ready to replace disjointed state policies with a coordinated national renewable energy credit market. Treating low-carbon energy consistently will promote investment in renewables.

Pilot projects are demonstrating the potential of smart metering and smart rates to make the most of supply and demand resources. But as empirical studies show, not all pricing designs are equally suited to every region.