Digital Commons Network^™

Breaking Energy Path Dependencies, Amy L. Stein

Amy L. Stein

f the many barriers to clean energy development discussed in the literature, the power of the status quo is not normally one of them. Yet beyond the need for more transmission lines, the need to decouple electricity sales from revenue, or the need to amend our environmental laws to more fully capture the externalities of energy, efforts to develop clean energy are faced with over a century of institutional “stickiness” associated with the legal and regulatory framework governing energy. This article explores how path dependency theories can inform the practical legal efforts to overcome such stickiness, identifying the troublesome approaches …

Good For You, Bad For Us: The Financial Disincentive For Net Demand, Jim Rossi, Michael P. Vandenbergh

Michael Vandenbergh

This Article examines a principal barrier to reducing U.S. carbon emissions — electricity distributors’ financial incentives to sell more of their product — and introduces the concept of net demand reduction (“NDR”) as a primary goal for the modern energy regulatory system. Net electricity demand must decrease substantially from projected levels for the United States to achieve widely-endorsed carbon targets by 2050. Although social and behavioral research has identified cost-effective ways to reduce electricity demand, state-of-the-art programs to curtail demand have not been implemented on a widespread basis. We argue that electric distribution utilities are important gatekeepers that can determine …

Free Trade In Electric Power, Joel B. Eisen, Felix Mormann

Felix Mormann

This Article develops the core legal framework of a new electricity-trading ecosystem in which anyone, anytime, anywhere, can trade electricity in any amount with anyone else. The proliferation of solar and other distributed energy resources, business model innovation in the sharing economy, and climate change present enormous challenges — and opportunities — for America’s energy economy. But the electricity industry is ill equipped to adapt to and benefit from these transformative forces, with much of its physical infrastructure, regulatory institutions, and business models a relic of the early days of electrification. We suggest a systematic rethinking to usher in a …

Requirements For A Renewables Revolution, Felix Mormann

Felix Mormann

This Article identifies and analyzes the obstacles presently barring the rise of renewables, evaluates the role of the current policy favorite emission pricing, and offers design recommendations for a comprehensive U.S. renewables policy.

Successful climate change mitigation requires a timely shift to renewable sources of energy, such as sunlight, wind or tides, to decarbonize today’s high-carbon electricity sector. But market pull alone is not strong enough. This Article discusses the most widely cited economic barriers and identifies and evaluates additional obstacles related to the electricity sector’s regulatory framework.

Emission pricing is largely considered the most efficient policy to drive the …

Smarter Finance For Cleaner Energy: Open Up Master Limited Partnerships (Mlps) And Real Estate Investment Trusts (Reits) To Renewable Energy Investment, Felix Mormann, Dan Reicher

Felix Mormann

This policy proposal makes the case for opening Master Limited Partnerships (MLPs) and Real Estate Investment Trusts (REITs) — both well-established investment structures — to renewable energy investment. MLPs and, more recently, REITs have a proven track record for promoting oil, gas, and other traditional energy sources. When extended to renewable energy projects these tools will help promote growth, move renewables closer to subsidy independence, and vastly broaden the base of investors in America’s energy economy.

Mobilizing Public Markets To Finance Renewable Energy Projects: Insights From Expert Stakeholders, Paul Schwabe, Michael Mendelsohn, Felix Mormann, Douglas J. Arent

Felix Mormann

Financing renewable energy projects in the United States can be a complex, time consuming, and expensive process. Currently, most equity investment in new renewable power production facilities is supported by tax credits and accelerated depreciation benefits, and is constrained by the pool of potential investors that can fully use these tax benefits and are willing to engage in complex financial structures. For debt financing, non-government lending to renewables has largely been provided by foreign banks that may be under future lending constraints due to economic and regulatory conditions.

To discuss these and other renewable energy financing challenges and to identify …

Constitutional Challenges And Regulatory Opportunities For State Climate Policy Innovation, Felix Mormann

Felix Mormann

This Article explores constitutional limits and regulatory openings for innovative state policies to mitigate climate change by promoting climate-friendly, renewable energy. In the absence of a comprehensive federal policy approach to climate change and clean energy, more and more states are stepping in to fill the policy void. Already, nearly thirty states have adopted renewable portfolio standards that create markets for solar, wind, and other clean electricity. To help populate these markets, a few pioneering states have recently started using feed-in tariffs that offer eligible generators above-market rates for their clean, renewable power.

But renewable portfolio standards, feed-in tariffs, and …

Beyond Tax Credits: Smarter Tax Policy For A Cleaner, More Democratic Energy Future, Felix Mormann

Felix Mormann

Solar, wind, and other renewable energy technologies have the potential to mitigate climate change, secure America’s energy independence, and create millions of green jobs. In the absence of a price on carbon emissions, however, these long-term benefits will not be realized without near-term policy support for renewables. This Article assesses the efficiency of federal tax incentives for renewables and proposes policy reform to more cost-effectively promote renewable energy through capital markets and crowdfunding.

Federal support for renewable energy projects today comes primarily in the form of tax incentives such as accelerated depreciation and, critically, tax credits. Empirical evidence reveals that …

Enhancing The Investor Appeal Of Renewable Energy, Felix Mormann

Felix Mormann

This article introduces an investor-oriented framework for the evaluation of renewable energy policy, applies these newly developed criteria to a qualitative comparison of the primary policy instruments, and offers recommendations to enhance the investor appeal of renewable energy in the United States.

The multi-trillion dollar task of scaling renewable energy technologies to mitigate climate change, ensure energy security, and create green jobs is one of the most daunting challenges of the twenty-first century. It is, in fact, too great a challenge for either the public or private sector to shoulder alone. Rather, public policy must catalyze private investment in renewable …

Clean Energy Federalism, Felix Mormann

Felix Mormann

Legal scholarship tends to approach the law and policy of clean energy from an environmental law perspective. As hydraulic fracturing, renewable energy integration, nuclear reactor (re)licensing, transport biofuel mandates, and other energy issues have pushed to the forefront of the environmental law debate, clean energy law has begun to emancipate itself. The emerging literature on clean energy federalism is a symptom of this emancipation. This Article adds to that literature by offering two case studies, a novel model for policy integration, and theoretical insights to elucidate the relationship between environmental federalism and clean energy federalism.

Renewable portfolio standards and feed-in …

Marijuana Agriculture Law: Regulation At The Root Of An Industry, Ryan Stoa

Ryan B. Stoa

Marijuana legalization is sweeping the nation. Recreational marijuana use is legal in eight states. Medical marijuana use is legal in thirteen states. Only three states maintain an absolute criminal prohibition on marijuana use. Many of these legalization initiatives propose to regulate marijuana in a manner similar to alcohol, and many titles are variations of the "Regulate Marijuana Like Alcohol Act." For political and public health reasons the analogy makes sense, but it also reveals a regulatory blind spot. States may be using alcohol as a model for regulating the distribution, retail, and consumption of marijuana, but marijuana is much more …

Demand Response And Market Power, Bruce R. Huber

Bruce R Huber

In her article, Bypassing Federalism and the Administrative Law of Negawatts, Sharon Jacobs educates her readers about the concept of demand response, and then describes its propagation in recent years while making the broader argument that the Federal Energy Regulatory Commission (“FERC”) — the federal government’s principal energy regulator — has engaged in a strategy of “bypassing federalism” that may entail more costs than benefits. Professor Jacobs is right to call attention to demand response and to FERC’s approach to matters of jurisdictional doubt. While I share many of her concerns about boundary lines in a federal system, I argue …

Endangered Species In The Oil Patch: Challenges And Opportunities For The Oil And Gas Industry, Gabriel Eckstein, Jesse Snyder

Gabriel Eckstein

Tension among competing interests is nothing new in environmental law. Even among the most tenacious adversaries, the ability to find common ground can serve as an impetus to further the aims of both industry and environmental proponents. Broadly speaking, advocates of the oil and gas industry prefer few restraints, if any, on exploration, development, and production. Comparatively, champions of biological and ecological preservation favor regulatory protections to conserve these interests. Cutting across these often disparate objectives, the Endangered Species Act (ESA) presents a not-so-obvious opportunity for both sides to receive a share of the pie through cooperation and forward planning. …

Intellectual Property And Biofuels: The Energy Crisis, Food Security, And Climate Change, Matthew Rimmer, Griffith Hack

Matthew Rimmer

In light of larger public policy debates over intellectual property and climate change, this article considers patent practice, law, and policy in respect of biofuels. This debate has significant implications for public policy discussions in respect of energy independence, food security, and climate change. The first section of the paper provides a network analysis of patents in respect of biofuels across the three generations. It provides empirical research in respect of patent subject matter, ownership, and strategy in respect of biofuels. The second section provides a case study of significant patent litigation over biofuels. There is an examination of the …

Renewing Electricity Competition, David Schraub

David Schraub

The Tipping Point Of Federalism, Amy L. Stein

Amy L. Stein

As the Supreme Court has noted, “it is difficult to conceive of a more basic element of interstate commerce than electric energy, a product that is used in virtually every home and every commercial or manufacturing facility. No state relies solely on its own resources in this respect.” And yet, the resources used to generate this electricity (e.g., coal, natural gas, or renewables) are determined largely by state and local authorities through their exclusive authority to determine whether to approve construction of a new electricity generation facility. As the nation finds itself faced with important decisions that directly implicate the …

Renewable Energy Through Agency Action, Amy L. Stein

Amy L. Stein

Despite the many societal benefits associated with renewable energy, it is used to generate only about 5 percent of our nation's electricity needs. The bulk of governmental efforts to rectify this situation have disproportionately impacted private actors. This Article argues that the federal government should expand its efforts to more fully capture the gains that can be achieved by targeting both private and public actors, particularly federal agencies. Federal agencies have enormous purchasing power that can be channeled toward using electricity and fuels derived from renewable energy. Federal agencies are some of the largest consumers of electricity. Federal agencies manage …

Class Actions Suits Vs. Arbitration Clause (Mexico), Jorge E. De Hoyos Walther

Jorge E De Hoyos Walther

On September 24, 2014, the Mexican Supreme Court (SCJN) issued a landmark decision in the world of arbitration and class action suits. In summary, SCJN upheld that it is possible to file a class action suit, even though an arbitration clause is included in the agreement that governs the business relationship

Facts, Fiction, And Perception In Hydraulic Fracturing: Illuminating Act 13 And Robinson Township V. Commonwealth Of Pennsylvania, Joshua P. Fershee

Joshua P Fershee

Hydraulic fracturing for oil and natural gas is perhaps the most polarizing energy issue in the United States and around the world, and Pennsylvania has emerged as an example of passionate views both for and against hydraulic fracturing for shale gas. To limit local government restrictions on gas drilling, the Pennsylvania legislature passed Act 13 in September 2012, and the Act largely eliminated the ability of local governments to restrict oil and gas operations through zoning. The Pennsylvania Supreme Court overturned Act 13 in December 2013.

This Article reviews how Act 13 came to be, highlights the key provisions of …

The Next Great Compromise: A Comprehensive Response To Opposition Against Shale Gas Development Using Hydraulic Fracturing In The United States, Monika Ehrman

Monika U. Ehrman

Peaceful Coexistence: Independent Microgrids Are Coming, Sara C. Bronin, Paul Mccary

Sara C. Bronin

The growing push for microgrids in the United States over the last five years has generated a lot of excitement. Those worried about our aging transmission and distribution infrastructure hope microgrids can reduce demands on that grid, while increasing reliability. Environmentalists and energy efficiency advocates think microgrids can help us both decrease reliance on fossil fuels and improve the way we utilize waste heat. Academics love the concept, because microgrids—an out-of-the-box approach with far-reaching implications on user-utility relationships—provide great fodder for research and commentary. Perhaps most significantly in this struggling economy, a growing number of companies have invested millions in …

Smart Incentives For The Smart Grid, Roberta F. Mann

Roberta F Mann

Clean, renewable energy from the sun and wind—the green revolution is supposed to change the world. Since 2005, the United States has increased government investment in renewable energy generation, both from direct subsidies and indirectly through tax subsidies. Many other countries also provide incentives for producing electricity from renewable sources. But before renewable energy can change the world, it has to get to the customers who use it. Thomas Edison did change the world when he developed the first working electric power system. Unfortunately, the system for transmitting electrical power throughout the United States (the “grid”) has not changed much …

Transcript Of The Federalist Society’S 2012 National Lawyers Convention: Environmental Law, Federalism, And The Energy Revolution: Can State And Federal Regulators Adapt To Innovations?, Jason B. Hutt, James R. May, Craig Segall, Joel R. Burcat, Timothy M. Tymkovich

James R. May

No abstract provided.

Takings And Transmission, Alexandra B. Klass

Alexandra B. Klass

Ever since the Supreme Court’s controversial 2005 decision in Kelo v. City of New London, courts, state legislatures, and the public have scrutinized eminent domain actions like never before. Such scrutiny has focused, for the most part, on the now-controversial “economic development” or “public purpose” takings involved in the Kelo case itself, where government takes private property to convey it to another private party who promises to develop the property in a way that will increase the tax base, create new jobs, assist in urban renewal, or otherwise provide economic or social benefits to the public. By contrast, until recently, …

Energy (In)Efficiency In The Local Food Movement: Food For Thought, Lauren B. Kaplin

Lauren Kaplin

“Eating local” is a growing trend in the American food system, with environmentalists and foodies alike advocating for shorter food transportation distances from farm to table (the average in the United States is about 1,500 miles ). Not only have local food systems gained followers through farmer’s markets, locally sourced restaurants, and community supported agriculture (“CSA”) enterprises, but the locavore trend has begun to gain momentum on Capitol Hill as well: various federal and state programs support local food initiatives, the United States Department of Agriculture (the “USDA”) has published materials considering the impact of going local, and the Obamas …

Promoting An All Of The Above Approach Or Pushing (Oil) Addiction And Abuse?: The Curious Role Of Energy Subsidies And Mandates In U.S. Energy Policy, Joshua P. Fershee

Joshua P Fershee

President Bush declared America “addicted to oil” in his fifth State of the Union address, uttering what is now a common refrain used to urge the development of alternative fuel sources. Before progress can be made to modernize the U.S. fuel mix, though, it is important to consider how and why the current fuel mix came to be. To do so, this article first considers whether the United States is, in fact, addicted to oil. The article looks to the medical definitions of addiction and analyzes the U.S. relationship with oil to assist in analyzing the potential effectiveness of U.S. …

A New And Improved Energy Reality—It's No Pipedream, Daniel Hare

Daniel Hare

In this paper, I propose an original policy solution to the complicated issue of permitting and regulatory review for cross-border natural resource projects to allow for a smoother, quicker approval process for certain types of projects. I have specifically designed this new procedure so as to focus on political compromise and minimize political partisanship, while instead concentrating on achieving results. By modifying the current regulatory standard to a more streamlined model, deserving cross-border natural resource projects can swiftly gain approval, yet environmental, economic, foreign policy, national security, and other significant concerns will still receive the attention and thorough evaluation they …

The Road To Alternative Energy In Indian Country: Is It A Dead End?, Ryan Dreveskracht

Ryan Dreveskracht

No abstract provided.

“Megatons To Megawatts:” A Mega-Player Of Us Nuclear Enrichment, Christodoulos Kaoutzanis

Christodoulos Kaoutzanis

Since the mid-1990s, a majority of uranium used in the production of electricity in the United States comes from decommissioned Russian nuclear warheads. The “Megatons to Megawatts” (‘MtM’) Agreement, signed by the United States and the Russian Federation, heralded a new era of cooperation in nuclear deterrence. It also had an unprecedented influence on the market for nuclear fuel in the United States. This article focuses on the impact this agreement has had on the market for nuclear fuel, which will definitely outlast the MtM Agreement that is scheduled to expire in 2013. In clarifying this largely unknown element of …

Making Regulatory Innovation Keep Pace With Technological Innovation, Jay P. Kesan, Timothy A. Slating

Jay P. Kesan

Recent world events are forcing us to reconsider the ways in which the energy needs of the U.S. can and should be met. In regards to renewable energy options in general, the public response to the nuclear crisis at Japan’s Fukushima Daiichi power plant will likely stymie President Obama’s call for an increase in our reliance on nuclear energy. Additionally, the increasing political unrest in the Middle East and North Africa is once again reminding us that solutions must be found to mitigate our heavy dependence on foreign-produced oil. Newly emerging liquid biofuels not only hold the promise of enhancing …