US Customs and Border Protection (CBP) has begun issuing questionnaires to solar companies requesting extensive disclosures about the source of modules, panels, and other products. This marks an expansion of the scrutiny on the supply chain for the solar industry, as importers previously only had to provide such information if shipments were detained for inspection.
Power & Pipes
FERC, CFTC, and State Energy Law Developments
The US Court of Appeals for the Ninth Circuit dismissed a class action lawsuit claiming a California utility was liable for blackouts that were allegedly caused by inadequate electric system maintenance.
The DC Circuit has affirmed FERC’s application of the “cost causation” principle to prevent a public utility (the Utility) from allocating costs for facilities to customers that did not benefit from the facilities. The Utility had asked the court to overturn FERC’s order preventing the Utility from recovering transmission costs from customers located near the facilities because those facilities were built and intended to serve solely a separate group of customers located 300 miles away.
The US Federal Energy Regulatory Commission (FERC) issued a notice of inquiry (NOI) in December 2023 seeking comments on whether and, if so, how FERC should revise its policy on providing blanket authorizations for investment companies under Section 203(a)(2) of the Federal Power Act (FPA). This policy has permitted certain nonactive investors (such as mutual funds) to purchase and sell equity interests in utilities and holding companies without the typical FERC review of such investments.
As anticipated, the US Department of Energy’s (DOE’s) Office of Energy Efficiency and Renewable Energy (EERE) issued a funding opportunity announcement (FOA) that focuses on advancing the fueling infrastructure for medium- and heavy-duty (MD/HD) vehicles and other heavy transportation applications.
FERC recently issued an order approving revisions to the North American Electric Reliability Corporation (NERC) Rules of Procedures to modify the rules for developing mandatory reliability standards. These changes, reflected in Section 300 and Appendix 3A to the NERC Rules, will allow NERC to curtail the use of its traditional stakeholder-driven reliability standards development process where NERC leadership concludes that the process would be too cumbersome in addressing the reliability risk.
In 2022, FERC began issuing directives aimed at ensuring that the reliability of the bulk-power system is protected from potential risks posed by the growing number of inverter-based resources (IBRs) connected to the electric grid. As we previously reported, FERC issued three orders in December 2022 focused on increasing regulations for IBRs through the North American Electric Reliability Corporation (NERC), an independent electric reliability organization that develops and enforces mandatory reliability standards. In continuance of this goal, this fall, FERC took the step of directing NERC to develop or modify reliability standards specifically to address reliability concerns attributable to IBRs (Order No. 901).
The US Department of Energy’s (DOE’s) Office of Energy Efficiency and Renewable Energy (EERE) announced on November 16, 2023 its intention to issue, on behalf of the Hydrogen and Fuel Cell Technologies Office, a funding opportunity announcement (FOA) that is expected to focus on advancing fueling infrastructure for heavy-duty (HD) vehicles and other HD transportation applications and addressing key challenges to siting, permitting, and installation.
The US Federal Energy Regulatory Commission (FERC or Commission) has released its annual report on enforcement for fiscal year 2023. As in fiscal year 2022, FERC’s Office of Enforcement (OE) focused on matters involving fraud and market manipulation, serious violations of the Reliability Standards, anticompetitive conduct, threats to the nation’s energy infrastructure and associated impacts on the environment and surrounding communities, and conduct that threatens the transparency of regulated markets.
The Commodity Futures Trading Commission (CFTC or Commission) released its enforcement results for fiscal year 2023 on November 7, 2023. The CFTC’s Division of Enforcement filed 96 enforcement actions in 2023 charging a range of violations in a variety of markets that resulted in more than $4.3 billion in civil monetary penalties, restitution, and disgorgement. Both metrics show an increase from last year, when the Commission initiated 82 enforcement actions and imposed more than $2.5 billion in restitution, disgorgement, and penalties. The uptick in cases stemmed largely from a near doubling of fraud-related cases.