The Coal Commission’s phase-out proposal includes a €40 billion federal spending package for affected states.

By Jörn Kassow and Patrick Braasch

A German government-appointed body, known colloquially as the “Coal Commission”, has agreed to end coal-fired power generation by 2038. In an effort to meet Germany’s climate goals under the Paris Agreement, the Coal Commission proposes to gradually reduce Germany’s current coal power capacity of 42.6 GW to 30 GW by 2022 and 17 GW in 2030. A review is scheduled in 2032 to decide whether to bring forward the final phase-out from 2038 to 2035.

Coal-burning provided for 40% of Germany’s power mix in 2017, which is well above the EU-28 average of 21% in 2016, and was exceeded only by Bulgaria (45%), Greece (46%), the Czech Republic (54%), and Poland (81%). Coal-fired power plants accounted for 28% of Germany’s total CO2 emissions in 2016, while generating 70% of the energy sector’s total emissions in the same year. Germany will also close its last nuclear plants in 2022, which, as of 2017, still provided for 12% of the power mix. All considered, the country will see a fundamental change in its energy production landscape in the coming years.

EPA’s proposed standards have important implications, even though few coal plants are slated for development.

By Joel C. Beauvais and Stacey L. VanBelleghem

Background

On December 6, the US Environmental Protection Agency (EPA) signed a proposed rule to establish new source performance standards (NSPS) under Clean Air Act Section 111(b) for carbon dioxide (CO2) emissions from new, reconstructed, and modified power plants. The proposal would replace the existing Obama-era standards — which were based on applying partial carbon capture and sequestration (CCS) technology for new coal-fired plants — with significantly less stringent requirements. EPA’s proposal has several important implications for the power industry and other emitting sectors, even though few, if any, new coal plants are expected to be built in the United States in the near future.

EPA’s Current and Proposed CO2 Standards: A Comparison

EPA’s proposal would establish new emission limits, based on the “best system of emission reduction” (BSER) identified by the agency, for new, reconstructed, and modified coal-fired steam electric generating units (EGUs). For natural gas-fired combustion turbines, EPA proposes no changes to the 2015 Obama-era rule.

The proposed initiative will allow the provision of clean energy on a global scale by 2050.

By Paul A. Davies and R. Andrew Westgate

The Global Energy Interconnection (GEI) initiative, originally developed by Liu Zhenya, the chairman of the Chinese State Grid Corporation, is dedicated to promoting global energy interconnections in a sustainable manner.

The GEI is proposed to take the form of a backbone grid, first throughout Asia and then expanding globally. The first phase would consist of six ultra-high voltage grids that span the Asian continent, which GEI estimates will require a US$38 trillion investment.[1]

The GEI is part of the broader Belt and Road Initiative (BRI). The BRI is a Chinese state-backed program that intends to boost trade and economic growth across Asia through the development of infrastructure projects. China Development Bank, China’s primary policy-based lending institution, has already granted US$160 billion in loans to countries involved in the BRI process.

Chinese investors continue to build knowledge of the wind sector through European investment.

By Paul A. Davies and R. Andrew Westgate

China has traditionally focused more on developing coal and hydroelectric power, which provide relatively constant output, instead of wind and solar, which depend on whether conditions. However, recently, government-owned power producers have begun making significant investments in large wind projects in Europe, indicating a potential shift in the breadth of China’s commitment to an energy policy that is both global and renewable.

In fact, a recent Institute for Energy Economics and Financial Analysis (IEFA) report has shown that China now invests more in European wind projects than in Australian projects, which in recent years had received substantial amounts of money from China. Notably, Chinese private and state sectors invested US$6.8 billion in European wind projects from 2011 to 2017 compared with US$5 billion in Australia.

Harvard professor Robert Stavins joins Latham partner Bob Wyman to review key climate change mitigation policies.

California’s climate change mitigation program is widely viewed as one of the most comprehensive of its kind — encompassing a cap-and-trade component and a series of complementary measures with specific performance targets for important sectors such as motor vehicles, transportation fuels, power plants, and emissions related to land use decisions.

In this Viewpoints video, Latham partner Bob Wyman, a leader in the firm’s

By Joel C. Beauvais and Stacey L. VanBelleghem

On August 21, 2018 the Trump administration released its proposed Affordable Clean Energy (ACE) rule to replace the Obama administration’s Clean Power Plan (CPP). Both rules would regulate CO2 emissions from existing electric generating units (EGUs) pursuant to Section 111(d) of the Clean Air Act (CAA). The ACE proposal includes three elements:

  • Replacing the CPP with new emission guidelines for CO2 emissions from existing EGUs
  • Revising implementing regulations to guide the Environmental Protection Agency (EPA) and states on this and future Section 111(d) rulemakings
  • Revisions to the New Source Review (NSR) program for power plants

Here are six key points stakeholders should know about EPA’s proposed ACE rule.

Latham lawyers discuss the forces driving transformation in the market and the key legal and regulatory issues.

By Tommy Beaudreau, Joel Beauvais, Joel Mack, Ryan Maierson, and Janice Schneider

Water management is becoming increasingly critical amid increasing oil and gas production in the Permian Basin and other regions of the United States. In particular, many companies are now seeking to manage larger quantities of produced water, and/or to secure water supplies for drilling activities — leading

Relief from the mandatory scheme will reduce the administrative burden on non-energy intensive companies.

By Paul A. Davies and Michael D. Green

The Carbon Reduction Commitment (CRC) — which first came into operation on 1 April 2010 — will be abolished at the end of the 2018-19 compliance year, pursuant to the CRC Energy Efficiency Scheme (Revocation and Savings) Order 2018 (SI 2018/841) (the Order). The CRC is a mandatory carbon emissions trading scheme that applies to large UK business and public organisations.

The CRC was aimed at increasing energy efficiency and reducing carbon emissions from large non-intensive energy users. These emissions are thought to constitute around 10% of greenhouse gases (GHGs) in the UK. The scheme applied to organisations that, over the course of a year, used more than 6,000 megawatt-hours (MWh) of certain electricity and had at least one half-hourly meter settled on the half-hourly electricity market.

The California Assembly is expected to vote this summer to establish increased renewable energy targets and set a target of 100% clean energy by 2045.

By Marc T. Campopiano, Jennifer K. Roy, Diego Enrique Flores

SB 100, Senator Kevin De Leon’s renewable energy bill, would increase California’s already ambitious renewable energy standards by 2030 with an ultimate goal of 100% clean energy by 2045. On July 3, the California Assembly Committee on Utilities and Energy passed the bill out of committee. In 2017, the bill was approved in the Senate but did not progress through the Assembly before the term ended. In 2018, SB 100 is expected to again reach the Assembly floor for consideration.

As currently drafted, SB 100 would increase California’s Renewables Portfolio Standard (RPS) requirement from 50% to 60% by 2030, and set a goal of 100% clean energy by December 31, 2045 through RPS-eligible and zero-carbon resources. Clean energy could be defined more broadly than the current definition of renewable energy, to include energy resources such as large-scale hydro power that qualify as zero-carbon.

Building owners and developers will need to provide energy performance certificates for buildings.

By Paul A. Davies and Michael D. Green

The European Union has published a directive aimed at improving building energy efficiency and reducing carbon emissions. EU Member States are required to transpose the directive (Directive (EU) 2018/844) by March 10, 2020.

The directive, published on June 19, 2018, replaces the previous directive on the energy performance of buildings, which was first introduced in 2002 and then recast in 2010. The directive, forms part of the Clean Energy for all Europeans legislative package and is designed to promote energy efficiency in both old and new buildings as well as encourage building renovation. The revised directive is one of the EU’s eight proposals to achieve the Energy Union targets.