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 …

The Carbon-Neutral Individual, Michael P. Vandenbergh, Anne C. Steinemann

Michael Vandenbergh

Reducing the risk of catastrophic climate change will require leveling off greenhouse gas emissions over the short term and reducing emissions by an estimated 60-80% over the long term. To achieve these reductions, we argue that policymakers and regulators should focus not only on factories and other industrial sources of emissions but also on individuals. We construct a model that demonstrates that individuals contribute roughly one-third of carbon dioxide emissions in the United States. This one-third share accounts for roughly 8% of the world's total, more than the total emissions of any other country except China, and more than several …

Individual Carbon Emissions: The Low-Hanging Fruit, Michael P. Vandenbergh, Jack Barkenbus, Jonathan Gilligan

Michael Vandenbergh

The individual and household sector generates roughly 30 to 40 percent of U.S. greenhouse gas emissions and is a potential source of prompt and large emissions reductions. Yet the assumption that only extensive government regulation will generate substantial reductions from the sector is a barrier to change, particularly in a political environment hostile to regulation. This Article demonstrates that prompt and large reductions can be achieved without relying predominantly on regulatory measures. The Article identifies seven "low-hanging fruit:" actions that have the potential to achieve large reductions at less than half the cost of the leading current federal legislation, require …

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 …

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 …

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 …

Voter Psychology And The Carbon Tax, Gary M. Lucas Jr

Gary M. Lucas Jr.

Economists across the political spectrum argue that a carbon tax is the most effective and economically efficient policy for addressing climate change. Voters, however, strongly oppose the carbon tax and instead favor “green” subsidies and command-and-control regulations. If carefully designed, these policies might complement a carbon tax, but by themselves, they will make global warming mitigation incredibly expensive and perhaps even infeasible. Moreover, if poorly designed, subsidies and regulations can be counterproductive.

This Article argues that the public dislikes the carbon tax because the tax possesses attributes that make it psychologically unappealing relative to other climate policy instruments. The Article …

The Geography Of Climate Change Litigation: Implications For Transnational Regulatory Governance, Hari M. Osofsky

Hari Osofsky

This Article aims to forward the dialogue about transnational regulatory governance through a law and geography analysis of climate change litigation. Part II begins by considering fundamental barriers to responsible transnational energy production. Part III proposes a place-based approach to dissecting climate change litigation and a model for understanding its spatial implications. Parts IV through VI map representative examples of climate change litigation in subnational, national, and supranational fora. The Article concludes by exploring the normative implications of this descriptive geography; it engages the intersection of international law, international relations, and geography as a jumping-off point for a companion article.

California Climate Law---Model Or Object Lesson?, Daniel A. Farber

Daniel A Farber

In the invitation to this Symposium on Reconceptualizing the Future of Environmental Law, the organizers explained that the Symposium “focuses on the continued expansion of environmental law into distinct areas of the law, requiring an increasingly multidisciplinary approach beyond that of traditional federal regulation.” In short, the question posed is about the future proliferation of environmental measures outside the previous domains of federal environmental statutes. At the risk of being guilty of local parochialism, I would like to discuss how the future described by the organizers has already arrived in California--both in the sense that a great deal is happening …

Deployment Of Geoengineering By The Private And Public Sector: Can The Risks Of Geoengineering Ever Be Effectively Regulated?, Daniela E. Lai

Daniela E Lai

Geoengineering has been described as any large-scale environmental manipulation designed with the purpose of mitigating the effects of climate change without decreasing greenhouse gas emissions (GHGs). Currently there are no specific rules regulating geoengineering activities particularly if geoengineering is deployed in areas beyond national jurisdiction. This article argues that, in order to mitigate the risks of geoengineering, there needs to be effective regulation of its deployment both in international and domestic law. The risks of geoengineering can only be effectively regulated if there is international cooperation between all levels of governments and private individuals involved in the research and development …

Energy Poverty And The Environment, Carmen G. Gonzalez

Carmen G. Gonzalez

Nearly 3 billion people in Asia, Africa, and Latin America (the Energy Poor) face daily hardships due to lack of modern energy for cooking, heating, sanitation, lighting, transportation, and basic mechanical power. Despite their minimal greenhouse gas emissions, the Energy Poor will be disproportionately burdened by the floods, droughts, rising sea levels, and other disturbances caused by climate change. Although climate change has been framed as an issue of climate debt and climate justice, the plight of the Energy Poor has received short shrift in the climate change negotiations. Will efforts to reduce greenhouse gas emissions consign the Energy Poor …

A Legal Approach To The Improvement Of Energy Efficiency In Europe And The United States: Greening The Existing Building Stock, Teresa -. Parejo

Teresa - Parejo

In large cities buildings are responsible for 40% of energy consumption and 36% of CO2 emissions in the EU, and 70% of energy consumption and 40% of CO2 emissions in the US. Hence, improving the energy performance of buildings is a very cost-effective way to fight against climate change.

Most of the potential for energy savings is in existing buildings so they provide the greatest opportunities and challenges, but the measures adopted until today to improve energy efficiency, despite some innovative proposals, have been insufficient and mainly focused in new buildings. All the actions developed either by the EU and …

Regulation Of Greenhouse Gases And Other Air Pollutants In The First Obama Administration And Major Air Issues For The Second Term, Patricia Mccubbin

Patricia Ross McCubbin

President Barack Obama has made addressing climate change the centerpiece of his environmental policy. Most recently, on June 25, 2013, the President gave a groundbreaking speech detailing the steps his administration will take to reduce greenhouse gas emissions throughout the United States. Of great controversy, the President directed the U.S. Environmental Protection Agency (EPA) to limit emissions of greenhouse gases from both new and existing power plants, which represent 40% of total U.S. carbon emissions. The President’s call to action – in his June 2013 speech and throughout his first term – stands in stark contrast to Congress’s inability to …

The Sun Also Rises: Prospects For Solar District Heating In The United States, Adam L. Reed, John S. Mccartney

Kevin L Doran

Renewable thermal energy remains a largely untapped resource in the United States, despite its low costs and growing popularity in many other countries and the pressing need to rapidly deploy and scale carbon-free energy sources in order to mitigate anthropogenic climate change. In this article, an energy attorney and a civil engineer collaborate to examine the prospects in the United States for solar district heating (SDH), a thermal technology that leverages economies of scale to provide zero-carbon, round-the-clock space and water heating (on average, the two largest components of building energy demand) to neighborhoods and commercial zones at costs competitive …

Understanding China’S Need To Focus On Its Renewable Energy Expansion Programme And The Relationship To Its Climate Change Policy, Patricia J. Blazey Ms

patricia j blazey Ms

China is concerned with the need to increased energy production due to ongoing industrial development and an expanding middle class. The government in its 12^th Five Year Plan is focusing on moving to an era of clean energy and advanced energy efficient technology not primarily to address climate change but rather to ensure that its vast energy requirements are procured from other sources rather than continuing to rely on finite sources of energy such as coal, oil and gas.

Climate Change, Forests, And International Law: Redd's Descent Into Irrelevance, Annecoos Wiersema

Annecoos Wiersema

Forestry activities account for over 17% of human-caused greenhouse gas emissions. Since 2005, parties to the United Nations Convention on Climate Change have been negotiating a mechanism known as REDD – Reducing Emissions from Deforestation and Degradation – to provide an incentive for developing countries to reduce carbon emissions and limit deforestation at the same time. Many believe this mechanism will not only mitigate climate change but will also provide biodiversity and forests with the hard international law regime that has so far been missing. These commentators assume REDD will develop into this kind of hard international law regime. They …

International Trade And Investment Law And Carbon Management Technologies, Shi-Ling Hsu, Nigel Bankes, Anatole Boute, Sarah Mccalla, Steve Charnovitz, Liz Whitsitt, Nicholas Rivers

Shi-Ling Hsu

Reducing emissions of greenhouse gases will require the development of carbon management technologies that are not currently available or that are not currently cost-effective. While market mechanisms such as carbon pricing must play a central role in stimulating the development of these technologies, governmental policy aimed at fostering carbon management technologies and lowering their costs must also play a part. Both types of policies will form part of an optimal greenhouse gas control portfolio.

This article develops a framework of international trade and investment law insofar as they may affect carbon management technologies. While it is commonly perceived that international …

The Key Stone In The Carbon Tariff Wall: The Alberta Oil Sands And The Legality Of Taxing Imports Based On Their Carbon Footprint, Mark L. Belleville

Mark L. Belleville

Can one nation—consistent with international trade law—tax imports or otherwise treat them differently based on the CO2 emitted in another country during production of the import? This Article analyzes the General Agreement on Tariffs and Trade (GATT), relevant World Trade Organization (WTO) decisions, and the considerable amount of scholarship regarding Border Tax Adjustments (BTAs) and concludes that such treatment of imports is legally permissible. In early 2013, the European Union (E.U.) will vote on a proposed rule that seeks to classify crude oil coming into E.U. refineries based on “life-cycle greenhouse gas emissions,” including CO2 emitted during extraction. Canada, seeking …

Arctic Justice: Addressing Persistent Organic Pollutants, Prof. Elizabeth Burleson

Prof. Elizabeth Burleson

This article recommends enhanced governance of persistent organic pollutants through incentives to develop environmentally sound, climate friendly technologies as well as caution in developing the Arctic. It highlights the toxicity challenges presented by POPs to Arctic people and ecosystems.

Climate Change, The Clean Air Act, And Industrial Pollution, Alice Kaswan

Alice Kaswan

EPA has braved controversy by applying the Clean Air Act (CAA) to greenhouse gas (GHG) emissions from stationary sources, including utilities and industry. Because GHG controls inevitably affect combustion, they will impact traditional pollutants (termed “co-pollutants”). The Article first argues, as a threshold matter, that co-pollutant consequences are relevant to climate policy choices, and that considering those consequences will lead to improved environmental, administrative, and economic outcomes. It then reviews the CAA’s stationary source provisions and EPA’s implementation of them to date, discussing both the CAA’s potential and its limitations.

Moving beyond the CAA on its own terms, the Article …

Federal Energy Efficiency And Conservation Laws, John Dernbach, Marianne Tyrrell

John C. Dernbach

This paper provides an overview of U.S. law and policy concerning energy efficiency and conservation. The United States appears torn between two narratives - one expressing the abundant demonstrated opportunities provided by energy savings and the other based on a fear of deprivation from using less energy. Rather than choosing between the two, U.S. law and policy splits the difference - embracing efficiency and conservation more or less halfheartedly. Energy efficiency and conservation policy thus has a Groundhog Day aspect, in which the same or similar arguments are made year after year, decade after decade, and often (it appears) to …

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 …

Innovation Cooperation: Energy Biosciences And Law, Prof. Elizabeth Burleson

Prof. Elizabeth Burleson

This Article analyzes the development and dissemination of environmentally sound technologies that can address climate change. Climate change poses catastrophic health and security risks on a global scale. Universities, individual innovators, private firms, civil society, governments, and the United Nations can unite in the common goal to address climate change. This Article recommends means by which legal, scientific, engineering, and a host of other public and private actors can bring environmentally sound innovation into widespread use to achieve sustainable development. In particular, universities can facilitate this collaboration by fostering global innovation and diffusion networks.

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.

From Coase To Collaborative Property Decision-Making: Green Economy Innovation, Prof. Elizabeth Burleson

Prof. Elizabeth Burleson

This Article considers the advantages and disadvantages of market-based program design, natural gas regulation, and enhanced international understanding. Transitioning to a green economy involves dedicating efforts towards environmentally sound energy innovation. RGGI, natural gas, and climate change represent sustainability challenges. Optimizing cooperative transboundary green innovation can facilitate inclusive decision-making just as public participation by civil society can help economies transition to environmentally sound energy use. Building upon progress made in the human rights and environment fields can advance both and enhance resilience.

Decentralizing Cap-And-Trade? State Controls Within A Federal Greenhouse Gas Cap-And-Trade Program, Alice Kaswan

Alice Kaswan

Cap-and-trade programs for greenhouse gases (GHGs) present central political questions with significant economic and environmental ramifications. This paper addresses a critical structural issue: To what extent should states retain the capacity to develop stricter parameters within a federal cap-and-trade program? This Article argues that, within the confines of a federal trading program, states should retain substantial autonomy to establish their own direct regulatory requirements, impose their own offset policies, and adopt differing trading parameters to maximize a GHG trading program’s co-pollutant and other benefits. State autonomy is justified by benefits to the nation as a whole, since states can provide …