utilities environmental regulations

It is also available on HeinOnline (available on campus or remotely with ASURITE). Energy Law Journal This publication from the Energy Bar Association includes commentary on all aspects of energy law and policy in the U.S. and abroad, from markets to regulations to environmental policy concerns. Relevant journals may be found in HeinOnline’s “Oil and Gas” collection and its “Environmental/Conservation Law” collection (available on campus or remotely with ASURITE).

Across the country, millions of residential and commercial customers expect access to clean, safe, reliable, and affordable energy and water. Environmental regulations pose significant compliance challenges for energy companies, particularly those in the oil and gas sector. Even more serious charges, such as tampering with public water systems, can carry significantly higher fines and the possibility of jail time for company executives. While the EPA establishes health-based standards at a national level, the Illinois EPA is responsible for the day-to-day implementation of the drinking water program, among other things. They are responsible for operating the necessary treatment and distribution systems to reliably deliver safe drinking water.

  • It includes explanations of important federal legislation and sample clauses for agreements related to oil and gas production.
  • In the realm of regulatory control, the Federal Energy Regulatory Commission holds significant authority over PPAs, exerting considerable influence within the utility sector.
  • Utilities are responsible for regularly testing the quality of drinking water and comparing the test results to the health-based standards, known as Maximum Contaminant Levels or MCLs.
  • The U.S. Environmental Protection Agency (EPA) classifies these systems according to the number of people they serve, the source of their water and whether they serve the same customers year-round or on an occasional basis.
  • While the proposed rule would have applied NSPS to both new and existing gas-fired combustion turbines, EPA opened a separate non-rulemaking docket to address emissions from existing EGUs in March 2024 and has removed regulation of existing EGUs from the final rule.

In the UK, for example, 2023 has already seen energy companies pay out £5,481,151 in statutory penalties according to Ofgem. At Phillips Kaiser, our team has extensive experience helping energy companies navigate the complex web of environmental regulations. By proactively addressing environmental compliance challenges, energy companies can mitigate risks, protect the environment, and ensure the long-term sustainability of their operations.

EPA’s final rule recognizes the imminent retirement of existing coal-fired plants. The final rule abandons the proposal to provide an alternative compliance route through co-firing with hydrogen or other low GHG-emitting fuels. Thus, the final rule applies NSPS only to new and modified or reconstructed gas-fired combustion turbine EGUs. While the proposed rule would have applied NSPS to both new and existing gas-fired combustion turbines, EPA opened a separate non-rulemaking docket to address emissions from existing EGUs in March 2024 and has removed regulation of existing EGUs from the final rule. EPA believes it has authority to promulgate the final rule pursuant to the Clean Air Act section 111, which requires EPA to regulate emissions of air pollutants from existing stationary sources and to set NSPS for industrial categories which emit dangerous air pollutants. At a high level, the final rule requires reduction of GHG emissions through efficiency requirements for new and modified gas-fired combustion turbines, the phase-out of coal-fired plants, and capture and storage of 90% of carbon dioxide emissions from base load EGUs.

Environmental Permitting

FERC is responsible for issuing environmental impact statements that assess the potential effects of proposed natural gas or electricity-generating projects on the environment. In the realm of regulatory control, the Federal Energy Regulatory Commission holds significant authority over PPAs, exerting considerable influence within the utility sector. Within the utility sector, a power purchase agreement serves as a contractual arrangement between a private utility company and a government agency. The overarching mission of FERC is to utilize its regulatory authority to facilitate consumers in obtaining energy services that are economically efficient, safe, reliable, and secure, all at a reasonable cost. Through https://heplerbroom.com/blog/wotus-and-pm-naaqs-and-pfas-oh-my-environmental-highlights-in-first-quarter-2023 this act and the Energy Policy Act of 2005, FERC has been endowed with a broad range of regulatory functions within the utility sector. These regulatory measures are implemented to maintain control over the water sector, ensuring responsible management of this vital resource while safeguarding consumer interests and environmental considerations.

State regulation: Drinking water quality requirements

It works with both publicly-owned and privately-owned utilities in making Hoover Power Plant hydro power available to all major load centers throughout Arizona at low cost. The Utility and Power Generation Sector covers entities producing, transporting and distributing electricity to customers (NAICS 2211). The final rule is expected to benefit the climate and protect public health, including reductions in fine particles and ozone in all areas of the country. Responding to industry comments regarding threats to electricity grid reliability, EPA has allowed some implementation flexibility regarding compliance dates within state plans to allow up to one-year extension on compliance deadlines. If a state fails to submit a plan or if EPA disapproves the state’s submission, EPA can impose a federal implementation plan on sources within the state within 12 months of the failure or disapproval. Coal-fired plants that will cease operation by 2032 are exempt from the final rule.

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In the meantime, annual or simplified monthly reporting on energy and Renewable Energy Certificate (REC) supply https://www.davespda.com/software/utilities.htm will not be enough to satisfy customers’ reporting requirements. The final rule creates flexibility for implementation when appropriate, such as for plants that are closing or switching to greener, less-polluting fuels like natural gas. By implementing these regulatory measures, the government aims to ensure fair practices, protect consumers’ interests, and promote a more efficient and sustainable utility sector. In the United States, the provision of utility services to the majority of American consumers is primarily handled by privately owned companies.

This chart is a reproduction of this chart from EEI that has been used to suggest that EPA’s regulatory timeline is unworkable1. Under SSB 5165, electric utility utilities (other than those that rely on the Bonneville Power Administration for all its power) with more than 25,000 customers must develop and update an Integrated Resource Plan (IRP). Westlaw Energy News (Westlaw password required) This news page features the most recent energy stories of the day, along with a searchable database of relevant articles. Bloomberg Law News Environment & Energy Report (Bloomberg password required) This Bloomberg Law News topic provides information about current issues in environment and energy law. Environment Complete (available on campus or remotely with ASURITE) Environment Complete offers deep coverage in applicable areas of energy, renewable energy sources, pollution & waste management, environmental technology, environmental law, public policy, social impacts, urban planning, and more. Westlaw Practical Law – Oil & Gas (Westlaw password required) This Practical Law topic contains news, practice notes, checklists, and more for practitioners in the field of oil and gas law.

utilities environmental regulations

To navigate this complex regulatory landscape, energy companies must develop robust compliance strategies, invest in pollution control equipment and technologies, and work closely with experienced legal counsel. The company has prevailed thus far in court, but the case continues through the appellate system to this day, and highlights the potential ESA compliance challenges faced by energy companies. The most common violation of the SDWA is failing to conduct regular monitoring of drinking water quality or submit monitoring results in a timely fashion. Energy companies must comply with RCRA regulations for the storage, treatment, and disposal of waste generated during oil and gas production, including drilling fluids, produced water, and contaminated soils. More commonly, the Clean Water Act is used by both federal and state authorities to hold corporate and municipal entities responsible for infractions. Following the 1990 amendments, energy companies must obtain permits and install pollution control equipment to ensure compliance with these standards.

utilities environmental regulations

An Updated Response to EEI’s Timeline of Environmental Regulations

Various environmental issues – whether on climate, air, water, solid waste regulations, or permitting – affect the power sector. IDPH is also responsible for reviewing and approving plumbing code related standards that impact drinking water utilities. However, there are a number of other governmental units that have roles related to safe drinking water. And Illinois EPA is the state enforcement agency for these safe drinking water standards. As mentioned http://www.wtfmacos.ru/c/Utilities.html above, the US EPA is the ultimate regulator on safe drinking water for communities. Our state’s drinking water program also includes requirements for permitting, including construction and operating permits for community water supply systems.

Further, the final rule cites grid reliability concerns as its justification for EPA’s adjustments from the proposed rule, including allowing longer CCS compliance time frames, and limiting the subcategories of affected sources. The rule includes implementation flexibilities for a new category of EGUs that permanently cease coal combustion by 2034. The final rule also does not require PM CEMS for integrated gasification combined cycle EGUs due to technical calibrating issues. On April 25, 2024, the Environmental Protection Agency (EPA) signed four final rules representing multi-media regulation (air, water, waste, climate) for the utility sector.

So, finding talent in the desired timeframe will continue to be a challenge in 2025. If any company has lead pipes or uses PFAS, now would be the time to transition to more acceptable choices. The $65 billion investment into electric power includes the single largest investment in clean energy transmission, such as solar and wind. This rule applies to all plants operational more than 40% of the time, whereas the rule was going to apply to plants operational more than 50% of the time. Another major change affecting power plants is the removal of hydrogen as a “best system of emission reduction” for gas plants to meet the new standards. The EPA considers methane a “super pollutant” many times more potent than carbon dioxide.