Energy and Utilities Law Commons^™

Legal History Repeats Itself On Climate Change: The Commerce Clause And Renewable Energy, Steven Ferrey

Suffolk University Law School Faculty Works

Discrimination and power: Federal courts found that some state renewable power laws violate the U.S. Constitution Commerce Clause by discriminating against out-of-state renewable energy. At stake is climate change and the near-term future of the Planet. After warned almost a decade ago about their Constitutional violation, which states conformed their laws as the Earth has warmed? This article analyzes which of 22 U.S. states flagged as to having potentially unconstitutional discriminatory renewable energy laws a decade ago have conformed their discriminatory renewable energy laws and which have allowed legal history to repeat itself?
/="/">/="/">Scrutinized technically rather than legally, …

Null Climate Federalism: State Frustration Of Federal Renewable Energy Entitlements, Steven Ferrey

Suffolk University Law School Faculty Works

Arresting rapid climate change is considered one of the most challenging issues of this century. To do so successfully, the U.S. must rapidly convert its electric power sector to operate on renewable energy. The Biden Administration pledged that the U.S. will have only clean/renewable electricity by 2035 – in these next 13 years U.S. federal tax incentives for renewable energy are scheduled to be substantially diminished or eliminated. Notwithstanding, there is one fundamental federal entitlement of rights for renewable power development.

The Public Utilities Regulatory Policies Act (“PURPA”) statute was enacted by President Carter as the U.S. response to an …

Counter-Intuitive Climate Forcing: Post Paris Agreement Corporate Incentives, Steven Ferrey

Suffolk University Law School Faculty Works

This article applies a micro-level lens to details of disincentives embodied in the new U.S. tax law effective in 2018, affecting corporate action to address climate change, and applies a macro-level assessment of how corporate action is affecting U.S. realization of its climate change goals and requirements. The article examines and offers several state law options that can substitute as alternative incentives, and an unrelated ‘Opportunity Zone’ provision in the new federal tax law, all of which can provide alternative legal paths.

Zec Oscillations In The Commerce Clause, Steven Ferrey

Suffolk University Law School Faculty Works

In the United States, two clauses of the Constitution, the Supremacy Clause and the Commerce Clause, surround the way we utilize and exploit energy and sources of power. Professor Joel Eisen discussed the application of the Supremacy Clause to energy law at the Vermont Journal of Environmental Law Symposium. The Supremacy Clause constructs a “bright line” segregating which energy transactions are subject exclusively to federal jurisdiction and which are subject exclusively to state authority. This article brings us current on the other key article of the Constitution, the Commerce Clause, which limits state authority over energy.

Rewired Infrastructure Post-Paris, Steven Ferrey

Suffolk University Law School Faculty Works

The Trump Administration announced in 2017 that it is withdrawing the U.S. from the international Paris Agreement regarding climate change which went into full effect in 2016. More than half the states sued the EPA when it promulgated the Clean Power Plan (CPP) to reduce power sector carbon emissions by 32 percent by 2030; thereafter, the Supreme Court stayed enforcement of the regulation, pending eventual review on the merits. The Trump Administration began efforts to repeal the Obama Administration CPP which was designed to satisfy the U.S. Paris Agreement commitments to curb CO2 emissions from burning coal to generate electric …

Gone With The Wind: State Preemptive Power, Steven Ferrey

Suffolk University Law School Faculty Works

This article examines whether eminent domain power, exercised by states, can be extended to non-conventional actors and stakeholders if they are supplying a service that serves a broader or ‘public’ purpose. The article analyzes the Kelo decision and its progeny to discern the current, evolving shape of extension of eminent domain power to unconventional actors and purposes.

Supreme Court Strips States Of Their Power Over The World's Second Most Important Technology, Steven Ferrey

Suffolk University Law School Faculty Works

The Supreme Court recently stripped 47 or the 50 the states of legal power that the states thought that they possessed over power. The Court re-etched in great relief the most important “bright line” in American law. This article analyzes every important step of how the Supreme Court arrived at the legal point to reset the architecture of American power and did so through a unanimous decision. The article charts key implications for U.S. law going forward.

Recent other decisions issued by the 2nd, 3rd, 4th, 7th, 8th, and D.C. Circuit Courts of Appeals — a majority of circuits — …

The Medium Is The Message, Steven Ferrey

Suffolk University Law School Faculty Works

The Medium matters; Details matter. Two important, somewhat overlooked Supreme Court decisions, reconfigured the law on the most important technology in the United States. One decision of the Court was unanimous, and together these decisions determine the future of American power. The two Supreme Court decisions created a simultaneous legal equation with a clear independent variable, a dependent variable, and a constant term now to be solved in the regulation of energy in America.

The independent variable is the new technological ‘medium’ of fast-evolving renewable electric generation options, to mitigate global climate warming and to preserve the Planet.

The U.S. …

The Poles Of Power: Magnetic Bi-Directional Turn Of The Meter, Steven Ferrey

Suffolk University Law School Faculty Works

This article contrasts the legal practices of 44 states which have enacted specific state legal incentives to favor renewable power, comparing legal differences and which have been held to be illegal and why, suggesting alternative means to salvage their legality.

When A State Does The "Circuit": State Administrative Discretion At The Jurisdictional Precipice, Steven Ferrey

Suffolk University Law School Faculty Works

California raised its renewable energy requirement, already the most ambitious of all the contiguous 48 states, to require 50% of all electric power generated by 2030 to be generated from renewable energy. This now is the most aggressive renewable energy standard of any major economy in the world. California's low carbon fuel standard, eventually upheld by the Ninth Circuit with a dissent, appears to be disconnected with the last half century of Supreme Court Commerce Clause jurisprudence. After this decision, as noted by a member of the Ninth Circuit, California may now be given free license to impose carbon tariffs …

Eminent Domain And Serrated Power, Steven Ferrey

Suffolk University Law School Faculty Works

This article provides an examination of the legal issues affecting siting of new wind projects and the ability of states to use preemptive state powers to preempt local zoning and land-use issues to circumvent local opposition to wind power siting, with detailed case studies of law in different states.

State Refusal Triggers Constitutional Crisis: Past Is Prologue On Energy And Infrastructure, Steven Ferrey

Suffolk University Law School Faculty Works

There is a new Constitutional “federalism” issue, pitting multiple states versus the federal government in a legal fight over control of competitive power supply as the U.S. moves to more renewable energy. In the new electric economy, while federal agencies mandate competition, several states have refused. FERC Order 1000 prohibits states' favoring monopolies via state “Rights-of-First-Refusal” to insist that all power movement be given to incumbent monopolies rather than competitively allocated. This invokes both the Supremacy Clause under Article 8 of the Constitution, as well as the Article I Commerce Clause.

State sustainable energy policy has endured 10 recent significant …

Legal After-Shocks On The Energy Seismograph: Judicial Prohibition Of Recent State Regulation And Promotion Of Power, Steven Ferrey

Suffolk University Law School Faculty Works

“If Congress won't act soon to protect future generations, I will. I will direct my cabinet to come up with executive actions we can take, now and in the future, to reduce pollution, prepare our communities for the consequences of climate change, and speed the transition to more sustainable sources of energy.” ~ President Obama, State of the Union Speech, February 2014

As set forth above, as a result of unilateral executive action, critical technology and modern American society are changing fundamentally. But is this form of executive action legal? There are significant unresolved legal issues as to what can …

Carbon Outlasts The Law: States Walk The Constitutional Line, Steven Ferrey

Suffolk University Law School Faculty Works

State carbon policies to control climate warming and our energy future are under legal attack. A successful barrage of litigation now invokes the dormant Commerce Clause and the Federal Power Act as interpreted through the Filed Rate Doctrine, as well as the Supremacy Clause of the U.S. Constitution, to challenge the legal validity and sustainability of these state carbon-based laws. California and other states have survived these legal challenges sparingly, and then often only by prevailing with procedural defenses that dismiss the case before a decision on the legal merits of their state energy regulation. This Article examines and analyzes …

The Double Helix Of Supremacy And Commerce Clause Constitutional Restraints Encircling The New Energy Frontier, Steven Ferrey

Suffolk University Law School Faculty Works

This article unwinds the legal double helix to examine the constitutional jurisdictional assault on American energy infrastructure and law. We examine pivotal elements of the Commerce Clause, the Supremacy Clause, and procedural aspects of ongoing challenges on energy and climate change law. We untwist and dissect energy law and regulation, focusing on key cases in the East, the Midwest, and California. In integrating the recent federal court interpretations, the Article I and VI constitutional double helix remains the critical legal restriction arresting the future of U.S. energy policy and infrastructure. Each region's law creates a distinct wedge into energy infrastructure, …

Solving The Multimillion Dollar Constitutional Puzzle Surrounding State "Sustainable" Energy Policy, Steven Ferrey

Suffolk University Law School Faculty Works

The U.S. confronted a Constitutional impasse: The ability of state government to enact sustainable energy statutes and regulations is significantly restricted by successful recent Constitutional legal challenges to states actions This article identifies a solution to implement legally ‘bulletproof’ sustainable regulation at the state level, circumventing the major Constitutional impasse now frustrating U.S renewable energy policy

U.S. sustainable energy policy is principally implemented through state law and regulation, through five types of state programs. As implemented, these five policies are now being challenged as unconstitutional and improper exercises of state government authority. There is a legally “bright” jurisdictional line nowhere …

Broken At Both Ends: The Need To Reconnect Energy And Environment, Steven Ferrey

Suffolk University Law School Faculty Works

In the post-industrial economy, key national environmental laws and energy regulations can impose contradictory demands, pursuant to which it is impossible to comply with both. Do regulated companies follow orders to generate essential energy supply or adhere to environmental emissions limits or orders not to generate? The United States Congress and federal agencies have each ignored creating a critical joinder of national policy, and there is no judicial precedent to resolve this conflict. The conflict between energy and environmental regulation creates a new constitutional challenge of essential first impression.

Pentagon Preemption: The 5-Sided Loss Of Energy And Power, Steven Ferrey

Suffolk University Law School Faculty Works

States have attempted recently to regulate the unique form of electric energy as to its:

· Place – forcing power generation to locate in the state or leave the state

· Price – Providing a higher price for certain power generated in the state or requiring utilities and their ratepayers to pay above market prices for certain power

· Regulatory credit value -- Providing greater credits for in-state power or fuel

Some federal courts have struck state regulation of energy and climate change-related renewable technologies as constituting a violation preempted under the Supremacy Clause of the Constitution in five dimensions. …

Administrative Restructuring And Renewable Energy: Best Legal Practices In Developing Economies, Steven Ferrey

Suffolk University Law School Faculty Works

In the next decade, there will be unprecedented, extensive investment in electrification in developing nations. Once installed, those generation facilities will remain in place for 40 years or longer. The Kyoto Clean Development Mechanism (“CDM”) is primarily encouraging CDM projects outside the electric sector, which raises questions about their longevity of impact on CO2 reduction. With extensive commitments now to the new Green Climate Fund, more attention to best legal practices for green electrification options becomes more important. Since the power industry is a regulated industry in every country, legislative and regulatory initiatives that incorporate “best practices” for encouraging renewable …

Small-Scale Generation: Issues In Standardizing Power Purchase Agreements, Steven Ferrey, Alejandro Moreno

Suffolk University Law School Faculty Works

This note provides an introduction to the issues surrounding the design of Power Purchase Agreement's (PPAs). Programs to attract investment in small-scale electricity generation, often powered by renewable energy sources, have become increasingly common in the developing world as governments seek to both expand access to electricity and improve sustainability. A valuable tool for such programs is a well-crafted, standardized power purchase agreement, which can reduce transaction costs for generators and government agencies alike and substantially improve the economics of small generation facilities. This note discusses key considerations in designing a standardized agreement for a small power producer program. The …

State Wars - The Empire Strikes Back: The Federal/State Constitutional Power Confrontation, Steven Ferrey

Suffolk University Law School Faculty Works

A significant pending case will carve the contours of United States constitutional governance for the nation regarding our most important technology and its implementation and "will probably be determined by the U.S. Supreme Court.... 'These are the kind of issues that the Supreme Court likes. It's a federal preemption case; it's a landmark case.' " The attorney general concurs that he would "be surprised" if the case if not destined for the Supreme Court. This matter defines Constitutional federalism and the application of two important clauses of the United States Constitution: - The Constitution's Supremacy Clause, with specific application of …

Alternative Energy In A Spaghetti Western: Clint Eastwood Confronts State Renewable Energy Policy, Steven Ferrey

Suffolk University Law School Faculty Works

The legal structure in a given country affects the mechanisms through which that country can promote renewable power technologies. Federalist forms of government denote a system in which political sovereignty is constitutionally divided between a central federal authority and constituent states or provinces. Such federalist forms of government describe several large and established countries, such as the United States, Germany, India, Australia, Brazil, Canada, Malaysia, Mexico, Nigeria, and Switzerland. Renewable energy policy at the state level, in countries with a federalist form of government, can be complex and varied.

The importance of the electric sector in the modern industrial economy …

Follow The Money! Article I And Article Vi Constitutional Barriers To Renewable Energy In The U.S. Future, Steven Ferrey

Suffolk University Law School Faculty Works

When one "follows the money," the current Administration‘s economic stimulus funding injected unprecedented billions of dollars into new energy-related capital investments. In doing so, it endeavors to fundamentally re-sculpt the legal fabric and infrastructure of the U.S. economy in a once-in-a-generation change of watershed proportion. However, this re-sculpting is hitting fundamental constitutional barriers under Articles I and VI.

There is a jurisdictional barrier: Renewable energy investments, promoted primarily at the state level, confront real challenges pursuant to the Constitution‘s Supremacy Clause (Article VI) and Commerce Clause (Article I). Among the most litigated constitutional issues before the U.S. Supreme Court, these …

Earth, Air, Water And Fire: The Classical Elements Confront Land And Energy, Steven Ferrey

Suffolk University Law School Faculty Works

For thousands of years, the classical theory, which was considered the best science of the time and was observed my most cultures and religions of the world, held that there were four basic elements from which everything in life was constructed: Earth, Water, Air and Fire. This classical theory anchored Hinduism, Buddhism, Chinese and Japanese religions, as well as Greek philosophy. From these classical elements, all matter was derived. From the time of Aristotle to relatively recent times, this theory persisted. These classical elements were thought to be at the core of alchemy in Medieval times.

This article transposes this …

Threading The Constitutional Needle With Care: The Commerce Clause Threat To The New Infrastructure Of Renewable Power, Steven Ferrey

Suffolk University Law School Faculty Works

To date, the federal initiatives for renewable energy primarily focus on tax incentives and credits. State incentives comprise most of the other renewable energy incentives. Chief among these are Renewable Portfolio Standards (RPSs), feed-in tariffs, net metering, and system benefit charges/trust funds (SBCs). Government lacks the power to do anything it chooses. And this is especially true with the current state policy to build a new power infrastructure. The new energy infrastructure is all about renewable energy. Both SBC and RPS programs raise revenue by a charge reflecting the amount of power produced or transacted, and then distribute that revenue …

Virtual "Nets" And Law: Power Navigates The Supremacy Clause, Steven Ferrey

Suffolk University Law School Faculty Works

Net metering is the most utilized state incentive for renewable power nationwide, in place in more than eighty-five percent of all states. Utilities in all states have been required by federal law for the past seven years to make net metering available to all requesting customers. Yet a significant number of states have failed to comply with this federal law, and several other states have complied in a manner that has raised questions as to whether they have violated the Constitution's separation between state and federal jurisdiction over power. This article will not delve into the first issue of noncompliance …

Efficiency In The Regulatory Crucible: Navigating 21st Century ‘Smart’ Technology And Power, Steven Ferrey

Suffolk University Law School Faculty Works

The flow of money in U.S. energy policy choices has consequences, and the Obama administration’s 2009 federal stimulus package presents an interesting policy scenario. The current administration wants to pivot postindustrial America away from emitting global-warming gases and powering its economy with fossil fuels. Indeed, changing the energy technology and infrastructure of the United States has been the cornerstone of the Obama administration’s domestic policy. The federal government devoted significant amounts of stimulus funding to this agenda. It also maintained preferences for certain investments in energy efficiency and renewable energy through the tax code. A change of this significance revolving …

A Comparison Of Renewable Portfolio Standards And Feed-In Tariffs As Legislative Mechanisms To Provide Renewable Power Incentives: Impacts On Power Supply, Transmission, And Grid Intermittency, Steven Ferrey

Suffolk University Law School Faculty Works

A federalist form of government is used in several important nations, including the United States, Germany, India, Australia, Brazil, Canada, Malaysia, and Switzerland. A federalist form of government divides political sovereignty between a central federal authority and constituent states or provinces. To implement new government policy regulating private power, the challenging transcendent issues are legal and regulatory, rather than technical. Certain measures in various industrialized countries, when implemented at the state rather than federal level, must be designed and implemented carefully to achieve a legal, regulatory fit in a federalist system of government.

For purposes of comparison, this article considers …

The New Climate Metric: The Sustainable Corporation And Energy, Steven Ferrey

Suffolk University Law School Faculty Works

The globalization of commerce is manifest. The modern mission statement of many US corporations is to compete in global markets. In this article, first, we define what is “sustainable” in the modern corporate context. Like other new terms employed in recent government environmental regulations, such as “additionality” (see S. Ferrey, When 1 + 1 No Longer Equals 2: The New Math of Legal "Additionality" Controlling World and U.S. Global Warming Regulation, 10 MINN. J.L. SCI. & TECH. 591 (2009)), the reality may be in the "eye of the beholder" – or at least, the regulator. This article examines measurement …

Legal Barriers To Sub-National Governance Techniques By U.S. States For Renewable Energy Promotion And Ghg Control, Steven Ferrey

Suffolk University Law School Faculty Works

The attempt by many U.S. states to copy verbatim the European model of feed-in tariffs to promote renewable power and recent efforts of states to promote their renewable power development or greenhouse gas (“GHG”) emission restrictions have been successfully challenged legally in the past few months. These challenges have reinforced that these E.U. and Kyoto mechanisms employed by the states in the U.S. as a governance tool, run afoul of the U.S. Constitution. Renewable and climate change policy in the U.S. is undertaken by regulatory actions at the state, rather than federal, level. This is a significant issue going forward …