The electric power sector could get fresh insights into regional grid operators' resilience concerns the week of March 5-9, while the U.S. Environmental Protection Agency considers its next steps in the effort to unwind the Clean Power Plan.
The energy industry also is digesting the Trump administration's plans to impose tariffs on steel and aluminum imports, a decision that could cause pain for everyone from pipeline and LNG terminal developers to wind and solar power equipment manufacturers.
FERC resilience docket
Grid operators have until March 9 to file comments with the Federal Energy Regulatory Commission on resilience issues in areas operated by regional transmission organizations and independent system operators. The comments are part of a proceeding FERC launched in early January to evaluate the resilience of the bulk power system after the commission rejected a proposed rule from the U.S. Department of Energy that sought to ensure cost recovery for certain power plants with "fuel secure" attributes.
The debate over how resilience should be defined and measured has heated up in the wake of the DOE's proposal. FERC, RTOs and ISOs have been studying price formation and resilience issues for years, and several grid operators, including the PJM Interconnection and Midcontinent ISO, are considering changes to how they value certain energy resources.
But an uptick in coal-fired and nuclear plant closures has pushed stakeholders from those industries to seek more aggressive and targeted remedies. Although FERC denied the DOE's request for a rule to compensate certain generating facilities that can store at least 90 days of fuel onsite — a rule that mainly would prop up coal-fired and nuclear power plants — regional grid operators ultimately may decide they need extra support for those resources.
On the other hand, the North American Electric Reliability Corp. and other authorities have said the bulk power system is performing well, despite recent plant retirements and a rise in deployment of natural gas-fired and intermittent renewable energy. Eventual reforms from RTOs and ISOs may be geared more toward aiding dispatch of newer, nontraditional technologies than keeping financially struggling fossil and nuclear units online.
Tariff fears loom
The Trump administration's March 1 announcement that it plans to enact a 25% tariff on steel imports and a 10% tariff on aluminum imports has set the energy industry on edge. LNG terminal developers said the tariffs could threaten proposed export projects and diminish the U.S.'s growing role in global gas markets. Domestic wind turbine manufacturers also could be hit hard.
The fate of the tariffs is unclear, however. The move could set off a trade war with other countries that import U.S. goods. Complaints or other trade actions almost are guaranteed to be filed with the World Trade Organization, something even Commerce Secretary Wilbur Ross said he expects. In addition, wind tower makers and other energy producers could push for exemptions to avoid an increase in their costs.
More details could come out this week, when President Donald Trump said he would sign an official proclamation on the tariffs.
EPA digests Clean Power Plan comments
Stakeholders had until Feb. 26 to file comments on a possible replacement for the EPA's Clean Power Plan, an Obama-era regulation to cut carbon emissions from existing fossil fuel-fired plants that the Trump administration is working to undo. About a quarter of a million comments were filed with the agency on a potential replacement rule.
Although several large utilities and more than half of U.S. states fought to overturn the Clean Power Plan, many power industry groups support a replacement rule, saying they will face steep regulatory uncertainty and possible citizen lawsuits without one. But power groups want any new rule to contain more compliance flexibility and give states a lead role in forming greenhouse gas reduction plans. They also want the new rule to take an "inside the fenceline" approach to emissions cuts, meaning generators would only have to make changes at the regulated plant rather than produce power from another, lower-emitting source.
But even that approach could be tough on some coal-fired plants. Many coal plants already have added emissions controls for other pollutants or undertaken upgrades to improve performance, making further efficiency gains difficult.
In addition to the replacement rule proceeding, the EPA separately is taking comments until April 26 on its planned repeal of the Clean Power Plan.
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|---|---|---|
| | Congress | |
| | March 6 | The U.S. House Committee on Science, Space and Technology's Energy Subcommittee will hold a hearing on the future of U.S. fusion energy research. |
| March 7 | The House Energy and Commerce Committee's Energy Subcommittee will hold a hearing on "The Future of Transportation Fuels and Vehicles." | |
| Federal agencies | ||
| March 9 | Deadline for grid operators to submit comments in the Federal Energy Regulatory Commission's grid resilience proceeding (FERC docket AD18-7). | |
| | Industry events | |
| March 5-9 | IHS Markit's annual CERAWeek conference will take place in Houston, Texas. | |
| March 5 | The Wilson Center will host a discussion on "China's Rapid Rise as a Green Finance Champion." | |
| | March 6 | Third Way will host its annual Advanced Nuclear Summit in Washington, D.C. |
| March 6 | The Business Network for Offshore Wind will host a forum on regional development issues at the Hilton BWI Baltimore Airport. | |
| | March 7 | The U.S. Department of Energy and the Nuclear Energy Institute will host the Millennial Nuclear Caucus at Stanton & Greene's office in Washington, D.C. |
| | March 7 | The Alliance to Save Energy's Great Energy Efficiency Day, or GEED, will take place in Washington, D.C. |
| | March 7-9 | Infocast's annual Transmission Summit East will take place in Washington, D.C. |
| March 9 | The Business Council for Sustainable Energy and the Environmental and Energy Study Institute will hold a lunch briefing on the 2018 Sustainable Energy in America Factbook. | |
Other notable stories from last week
LNG industry would get 'existential shock' from Trump steel tariff, experts say
US tax reform could make it easier for some generators to speed coal retirements
EPA proposes sweeping changes to coal ash rule, shifting power to states
Coal group still pushing for market relief after DOE grid rule rejection
Trump infrastructure plan could ease wave of new energy projects
Coal exec urges more 'clarity and certainty' in federal royalty valuation rules

