Finally, there is a need to address greenhouse gases that contribute to global warming. Although the Kyoto Protocol focuses on carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, hydrofluorocarbons and perfluorocarbons, tools have been developed to convert these emissions to an equivalent release of carbon dioxide, and efforts to control these releases are often referred to as “controlling carbon emissions.” The regulation of carbon emissions ranges from the direct regulation and permitting of coal-fired utilities and other boilers to development of cap-and-trade systems, carbon taxes and low carbon fuel standards as well as efforts to capture and isolate carbon emissions (known as “carbon sequestration”).

We have significant experience in carbon regulation, in both the utility and industrial sector, as follows:

• Advising utility and industrial clients on federal efforts to develop regulations to address the causes and impacts of climate change, including:
  
  
  • U.S. EPA’s efforts to issue an endangerment finding related to emissions of CO2 and greenhouse gases, including the proposal to regulate such emissions under the current provisions of the Clean Air Act set forth in the July 30, 2008 Advanced Notice of Proposed Rulemaking (“ANPR”).
    
    
  • U.S. EPA’s July 28, 2008 proposed revisions to the Underground Injection Control regulations, to address the injection of carbon dioxide underground for purposes of carbon sequestration and storage.
    
    
  • U.S. EPA’s development of new standards and guidelines to protect watersheds, wetlands and other water infrastructure in light of climate change, including the Water program’s Response to Climate Change, released in draft form in March 2008.
  
  
• Advising utility and industrial clients regarding state initiatives to establish carbon trading schemes such as the Western Climate Initiative and the Midwest Governor’s Climate Initiative.
  
  
• Representing a utility client in obtaining necessary regulatory approvals relating to a $7 billion generation expansion program, including:
  
  
  • Construction of 1100 MW of natural gas-fired generation. We assisted the client in obtaining a Certificate of Public Convenience and Necessity for the construction of that facility and defended that authorization in subsequent judicial review proceedings. We also assisted the client during the development of the Environmental Assessment of the project required by state law and defended that assessment in subsequent judicial review proceedings in a proceeding brought in part to challenge the climate change impacts of the facility.
    
    
  • Construction of 1230 MW of supercritical pulverized coal-fired generation. We assisted the client in obtaining a Certificate of Public Convenience and Necessity for the construction of that facility, which included consideration of the impact of future carbon regulation scenarios on the economics of the project and defended that authorization in subsequent judicial review proceedings. We also assisted the client during the development of the Environmental Impact Statement of the project required by state law and defended that assessment in subsequent judicial review proceedings. The air permit, wastewater permit and wetlands permit issued to the facility were challenged, and all three challenges were successfully resolved, allowing the project to go forward.
    
    
  • Obtaining Certificates of Authority to retrofit controls on 1400 MW and 1130 MW of existing coal-fired electric generating capacity. The first project was not challenged. We successfully defended the second project in the face of an administrative challenge regarding the alleged climate change impacts of the project as well as the impact of future carbon regulation scenarios on the economics of the project.
  
  
• Identifying and retaining consultants for industrial clients to evaluate potential impacts of cap and trade or carbon tax policies on their businesses.

In conjunction with our strong manufacturing and utility practices, we are well-positioned to deal with even the most complex carbon management issues.

For more information on how our Clean Energy, Climate Change and Sustainability Group can help you address issues related to Utilities and Greenhouse Gas Regulation, please contact Cynthia Faur at (312) 715-5228 / or your local Quarles & Brady attorney.