Law Commons^™

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 …

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 …

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 …

The Future Of Energy: The European And American Approaches -- The American Approach, Gina Warren

Gina Warren

No abstract provided.

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 …

Regulating Pot To Save The Polar Bear: Energy And Climate Impacts Of The Marijuana Industry, Gina Warren

Gina Warren

No abstract provided.

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 …

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

The Key To Unlocking The Power Of Small Scale Renewable Energy: Local Land Use Regulation, Patricia Salkin

Patricia E. Salkin

Myriad federal and state programs have been promoted to incentivize the research and development of renewable energy as a means of achieving sustainability and producing more affordable alternative energy systems, and these programs could potentially have a profound impact on the way that electricity is produced and consumed in the United States. Small-scale renewable energy generation from sources such as solar and wind, that can be used at the consumer level as a source of power for homes and small businesses, is an important part of this paradigm shift. However, regardless of the fiscal incentives offered to clean-tech companies to …

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 …

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.

Testimony Before The U.S. House Of Representatives Appropriations Committee, Subcommittee On Agriculture, Rural Development. Food And Drug Administration, And Related Agencies, Regarding The “Commodity Futures Trading Commission”, Michael Greenberger

Michael Greenberger

Testimony before the U.S. House of Representatives Appropriations Committee, Subcommittee on Agriculture, Rural Development. Food and Drug Administration, and Related Agencies on the role of the Commodity Futures Trading Commission’s regulatory efforts Pertaining to excessive speculation within U.S. energy futures markets in general, and futures based on U.S. delivered crude oil contracts.

Like Water For Energy: The Water-Energy Nexus Through The Lens Of Tax Policy, Roberta F. Mann

Roberta F Mann

Water is essential for life. Inadequate potable water supplies lead to poverty, disease, starvation, and civil strife. Climate change is likely to put more pressure on the world’s supply of fresh water. Rising sea levels will introduce salt into some fresh water systems. As high mountain snow cover and glaciers decline, they will store less fresh water. As regions heat up, droughts will become more persistent. Producing energy uses water. How much water is used depends on the source of the energy. Yet in the rush to transition to a renewable energy economy, policy makers have paid little heed to …

Tribes As Essential Partners In Achieving Sustainable Governance, Prof. Elizabeth Burleson

Prof. Elizabeth Burleson

Indigenous peoples have modeled sustainable development around the world. Incentivizing the innovation and instillation of wind, solar, and other renewable energy sources can come in the form of public funding, including renewable portfolio standards, feed in tariffs and green tag programs. This article analyzes ways in which tribal communities are helping to expand cooperative good governance.

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. …

Moving Power Forward: Creating A Forward-Looking Energy Policy Based On A National Rps, Joshua P. Fershee

Joshua P Fershee

In Power Forward: The Argument for a National RPS, Professor Lincoln L. Davies provides a comprehensive and compelling argument for a national renewable portfolio standard (“RPS”). This Commentary Article reviews Professor Davies’ assumptions and conclusions and places his RPS analysis in context within the broader energy and environmental debate.

Beyond expanding renewable energy generation and shifting away from fossil fuels, RPS legislation is often motivated by additional goals: addressing climate change, improving national security, and promoting economic development. This Commentary Article argues that, if these loftier goals are to be achieved, a better articulation of RPS objectives is necessary. Furthermore, …

When Prayer Trumps Politics: The Politics And Demographics Of Renewable Portfolio Standards, Joshua P. Fershee

Joshua P Fershee

This Article seeks to understand who supports renewable energy mandates (and why) by analyzing a variety trends found in political and socio-economic data by state, as well as by state renewable energy opportunities (or the lack of such opportunities). The review finds little shocking in the way of politics: Democratic states tend to favor mandates and Republican states tend not to have mandates. Somewhat surprisingly, the correlations among states with wind and solar resources (as well as most of the demographic data) ranged from limited to inconclusive. In religion, however, a strong trend developed. The states with higher Catholic populations …

China In Context: Energy, Water, And Climate Cooperation, Prof. Elizabeth Burleson

Prof. Elizabeth Burleson

Climate resilient communities can be achieved with the support of global research, development, deployment, and diffusion of environmentally sound low GHG emission technologies and processes. Technology cooperation should lower emissions remaining mindful of biodiversity, ecosystem services and livelihoods. China and the United States need to respond effectively to both economic and climate crises and can do so in part by cooperating on environmentally sound technology that transforms the global use of energy.

Federalism At The Cathedral: Property Rules, Liability Rules, And Inalienability Rules In Tenth Amendment Infrastructure, Erin Ryan

Erin Ryan

As climate change, war in the Middle East, and the price of oil focus American determination to move beyond fossil fuels, nuclear power has resurfaced as a possible alternative. But energy reform efforts may be stalled by an unlikely policy deadlock stemming from a structural technicality in an aging Supreme Court decision: New York v. United States, which set forth the Tenth Amendment anti-commandeering rule and ushered in the New Federalism era in 1992. This dry technicality also poses ongoing regulatory obstacles in such critical interjurisdictional contexts as stormwater management, climate regulation, and disaster response. Such is the enormous power …