Leadership Shake-Up at Department of Energy and Federal Energy Regulatory Commission

On Thursday November 7, 2019, the Trump Administration officially nominated Dan Brouillette to succeed Rick Perry as the U.S. Energy Secretary.[1] Secretary Perry’s ties to the ongoing investigation into President Trump’s communications with the President of Ukraine, Volodymyr Zelensky, foreshadowed Perry’s resignation.[2]  An official date of resignation has not yet been set, but Secretary Perry is expected to step down before the end of the year.[3]

Under his previous appointment as the Deputy Energy Secretary, Brouillette was responsible for leading the day-to-day operations at the Department of Energy (“DOE”). He has also held prior government positions as the Chief of Staff for the House Committee on Energy and Commerce, the Assistant Secretary of congressional affairs for the DOE, under President George W. Bush, and a member of the Louisiana State Mineral and Energy Board.[4] Chairman of the Senate Energy and Natural Resources Committee, Sen. Lisa Murkowski (R-Alaska), released a statement expressing her confidence that Brouillette “will excel in this new role.”[5]

In other federal energy news, on November 5, 2019, the Senate Energy and Natural Resource Committee questioned James Danly, the White House nominee, vying for one of two commissioner vacancies on the Federal Energy Regulatory Commission (“FERC”).[6] FERC is an independent, bipartisan regulatory agency tasked with regulating the interstate transmission of electricity, natural gas, and oil.[7] Danly is currently serving as the general counsel for FERC. His appointment would end the regulatory bottleneck resulting from FERC’s inability to meet the quorum requirements to take an official vote on pending decisions.[8]  However, there will still be one vacant commissioner seat to be filled by a Democratic-appointee, which the Trump Administration has yet to announce a nomination.

Featured Image: Mari Yamaguchi/AP Photo

[1] Humeyra Pamuk, Trump nominates former Ford executive to be new U.S. energy secretary, Reuters (Nov. 7, 2019),  https://www.reuters.com/article/us-usa-trump-brouillette/trump-nominates-former-ford-executive-to-be-new-u-s-energy-secretary-idUSKBN1XI022?feedType=RSS&feedName=topNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FtopNews+%28News+%2F+US+%2F+Top+News%29 (last visited Nov. 8, 2019).

[2] Maggie Haberman and Lisa Friedman, Perry to Resign as Energy Secretary, The New York Times (Oct. 17, 2019), https://www.nytimes.com/2019/10/17/us/politics/rick-perry-energy-secretary-resigns.html?module=inline (last visited Nov. 8, 2019).

[3] Id.

[4] Lisa K. Friedman and Mariel Padilla, Trump Taps Dan Brouillette to Succeed Rick Perry as Energy Secretary, The New York Times (Oct. 18, 2019),  https://www.nytimes.com/2019/10/18/us/politics/dan-brouillette-energy-secretary-rick-perry.html (last visited Nov. 8, 2019).

[5] Press Release, United States Senator for Alaska Lisa Murkowski, Murkowski Welcomes Nomination of Dan Brouillette to be Secretary of Energy (Oct. 21, 2019), https://www.murkowski.senate.gov/press/release/murkowski-welcomes-nomination-of_dan-brouillette-to-be-secretary-of-energy (last visited Nov. 8, 2019).

[6] Iulia Gheorghiu, Sen. Manchin ‘fighting’ for White House nomination of Democratic FERC candidate, Utility Dive (Nov. 6, 2019), https://www.utilitydive.com/news/sen-manchin-fighting-for-white-house-nomination-of-democratic-ferc-candi/566722/ (last visited Nov. 8, 2019).

[7] FERC, About FERC: What FERC Does, https://www.ferc.gov/about/ferc-does.asp (last visited Nov. 8, 2019).

[8] Iulia Gheorghiu, Trump bucks bipartisan tradition with plan to nominate Republican FERC commissioner, Utility Dive (Oct. 2, 2019), https://www.utilitydive.com/news/trump-picks-Republican-Danly-FERC-nominee-sans-Democrat-pre-clearance-Clements-Schumer-Manchin/564149/ (last visited Nov. 8, 2019).

Michigan Lawmakers Continue to Consider Legislation to Diversify Electricity Sources.

Four, bipartisan state bills were introduced in 2014, in an attempt to diversify Michigan’s energy sources.[1] The bills tackled fair value pricing, net metering enhancements, community renewable energy gardens, and microgrids.[2] Despite having bipartisan support, the bills failed to make it out of committee during the past three legislative sessions.

Lawmakers have introduced a new series of bills named Powering Michigan Forward.[3] The proposed bill would eliminate current regulatory blocks that hinder the future growth of Michigan’s solar energy market.[4] The bill’s sponsors argue that the “package gives residents of Michigan’s Upper Peninsula energy freedom,” that it will support community jobs—ultimately, helping the “district’s economy continue its forward momentum.”[5] With the introduction of these bills, Michigan state legislators hope to increase residential, commercial, and industrial communities’ access to clean and affordable energy options.[6]

While clean energy developers and local business interest groups support the proposed legislation, Consumers Energy opposes the bills believing that the implementation costs are disproportionate, and “customers should pay their fair share to ensure reliability and affordability of the energy grid.”[7] DTE, a holding company established by Detroit Edison, was also concerned by the proposed legislation because,  while the push toward small power may be beneficial for certain customers or conditions, “they continue to be expensive and have incremental benefits when you consider broader issues.”[8]

[1] Andy Balaskovitz, Bipartisan ‘energy freedom’ bills resurface in Michigan, one at a time, Energy News Network (October 22, 2019), https://energynews.us/2019/10/22/midwest/bipartisan-energy-freedom-bills-resurface-in-michigan-one-at-a-time/ (last visited October 24, 2019).

[2] Andy Balaskovitz, Michigan legislators seek ‘energy freedom’ for consumers, Energy News Network (July 22, 2014) https://energynews.us/2014/07/22/midwest/michigan-legislators-seek-energy-freedom-for-consumers/ (last visited October 24, 2019).

[3] Megan Schellong, Lawmakers introduce renewable energy bills, WLNS (October 22, 2019), https://www.wlns.com/news/lawmakers-introduce-renewable-energy-bills/ (last visited October 24, 2019)

[4] Id.

[5] Fox 47 News, Bills introduced to improve clean energy, Fox News (October 22, 2019), https://www.fox47news.com/news/local-news/bills-introduced-to-improve-clean-energy (last visited October 24, 2019).

[6] Id.

[7] Robert Walton, DTE, Consumers Energy push back on Michigan legislators’ plan to rewrite 2016 energy law, Utility Dive (October 23, 2019), https://www.utilitydive.com/news/dte-consumers-energy-push-back-on-michigan-legislators-plan-to-rewrite-20/565642/ (last visited October 24, 2019).

[8] Id.