Law Commons^™

Market Segmentation Vs. Subsidization: Clean Energy Credits And The Commerce Clause's Economic Wisdom, Felix Mormann

Felix Mormann

The dormant Commerce Clause has long been a thorn in the side of state policymakers. The latest battleground for the clash between federal courts and state legislatures is energy policy. In the absence of a decisive federal policy response to climate change, nearly thirty states have created a new type of securities—clean energy credits—to promote lowcarbon renewable and nuclear power. As more and more of these programs come under attack for alleged violations of the dormant Commerce Clause, this Article explores the constitutional constraints on clean energy credit policies. Careful analysis of recent and ongoing litigation reveals the need for …

Can Clean Energy Policy Promote Environmental, Economic, And Social Sustainability?, Felix Mormann

Felix Mormann

Two and a half decades of clean energy policymaking focused primarily on environmental and economic sustainability have yielded considerable environmental and economic benefits. Along the way, however, other policy considerations, such as the social sustainability of the transition to a cleaner, renewably fueled energy economy, have gone largely overlooked. As clean energy technologies continue to gain ever-greater traction in the United States and global energy economies, the social impacts of their enabling policies become more and more salient. Already, ratepayers, taxpayers, and other stakeholders who fear being left behind by the clean energy transition question the “fairness” of today’s renewable …

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 …

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 …

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 …

Solar Rights In The United States, Sara Bronin

Sara C. Bronin

Solar rights are legal rights needed to ensure that a piece of land has access to sunlight. These rights may be of interest to property owners seeking to undertake a variety of activities: farming, lighting, and clothes drying, to name a few. But perhaps the most economically significant purpose for which solar rights may be utilized is for the purpose of solar collectors. Such devices are used to harness the rays of the sun and transform them into thermal, chemical, or electrical energy. In an era of increasing deployment of solar collectors across the globe, the fair and efficient allocation …

The Carbon Frame: Condensed Version, Kyle Herman

Dr. Kyle S. Herman

Attracting Fdi: The Chilean Government's Role Promoting Renewable Energy, Kyle Herman

Dr. Kyle S. Herman

The development and implementation of renewable energy power plants is important for Chile in order to increase energy security, supply remote mines with electricity, and eventually decrease energy costs. The Chilean government has promoted renewable energy and attracted Foreign Direct Investment (FDI) to develop large-scale renewable energy projects. However, the policies cannot sufficiently attract FDI in unproven renewable energies such as Concentrated Solar Power, though it is proven elsewhere. This paper examines the Chilean government’s renewable energy policies, related government agencies, and the extent that these provide a stable backdrop for FDI in large-scale renewable energy projects. Following that summary, …

Community-Scale Renewable Energy, Sara C. Bronin, Hannah Wiseman

Sara C. Bronin

As the movement toward cleaner energy has gained momentum within the United States, a growing number of scholars and policymakers have made the case for community-scale renewable energy: mid-sized energy sources supported by resources pooled from several private parties in close geographic proximity. When built and utilized at the community level, these energy facilities may allow for economies of scale that their owners could not achieve working individually. Individual distributed generation, such as solar infrastructure on the roofs of homes, involves high transaction costs and creates relatively small impacts. At the same time, community-scale renewable energy has advantages over large-scale …

Solar Rights For Texas Property Owners, Sara C. Bronin

Sara C. Bronin

In response to Jamie France's note, A Proposed Solar Access Law for the State of Texas, Professor Bronin urges future commentators to focus on three additional areas of inquiry related to proposed solar rights regimes. Bronin argues that such proposals would be strengthened by discussion of potential legal challenges to the proposals, related political issues, and renewable energy microgrids. Ms. France’s proposal for the State of Texas includes the elimination of preexisting private property restrictions that negatively affect solar access. Bronin argues that this proposal would be strengthened by a discussion of potential challenges under federal and state takings clauses. …

Modern Lights, Sara Bronin

Sara C. Bronin

This Article functions as a companion to a piece, Solar Rights, recently published in the Boston University Law Review. In that piece, the author analyzed the absence of a coherent legal framework for the treatment of solar rights - the rights to access and harness the rays of the sun. The growing popularity of, and need for, solar collector technology and other solar uses calls for reform. Answering the call for reform in Solar Rights, this Article proposes a framework within which a solar rights regime might be developed. First, as a baseline, any regime must recognize the natural characteristics …

Solar Rights, Sara C. Bronin

Sara C. Bronin

The rights to access and to harness the rays of the sun - solar rights - are extremely valuable. These rights can determine whether and how an individual can take advantage of the sun’s light, warmth, or energy, and they can have significant economic consequences. Accordingly, for at least two thousand years, people have attempted to assign solar rights in a fair and efficient manner. In the United States, attempts to assign solar rights have fallen short. A quarter century ago, numerous American legal scholars debated this deficiency. They agreed that this country lacked a coherent legal framework for the …