Energy and Utilities Law Commons^™

State Policy And Regulatory Approaches To Sustainable Aviation Fuel Across The United States, Somtochukwu Attamah, Mary Johnson, Lara Fowler, Michael D. Helbing

Faculty Scholarship

Sustainable Aviation Fuel (SAF) represents a critical lever for achieving near-term decarbonization of the aviation industry. SAF can be manufactured for “drop-in” use in existing aircraft and fueling systems, allowing manufacturers to achieve lifecycle greenhouse gas (GHG) savings relative to standard jet fuel. However, U.S. policy is still disjointed: federal incentives are accompanied by diffuse state efforts, which means uneven market-based feedback and investment risk. After outlining the federal policy context, this Article conducts a comparative analysis of SAF-related policy frameworks across the fifty states. This includes a variety of government solutions offered in the form of enacted and proposed …

Owning Geothermal Energy, Gabriel Eckstein

Faculty Scholarship

Geothermal energy holds vast potential for decarbonizing the U.S. energy system, yet the sector remains significantly underdeveloped, supplying only 0.4% of the nation's electricity. A principal barrier to growth is the fragmented and ambiguous legal landscape currently governing ownership of geothermal resources: thirty-three states lack any clear statutory or common-law framework identifying who owns subsurface thermal energy. This Article examines the physical characteristics of geothermal energy, recent developments in the U.S. geothermal sector, and the principal doctrinal approaches that might govern ownership of subsurface heat, including the ad coelum doctrine, common-pool and open-access frameworks, the rule of capture, and public …

Governing The Energy Bottleneck, Hannah Jacobs Wiseman, Matthew Mchale

Faculty Scholarship

The electrical grid is falling short of its mandate to accommodate new generation—much of which happens to be “clean” zero-carbon generation—and to service load (demand). The bottleneck of grid access, which has vexed renewable energy developers, now affects industries seeking massive quantities of electricity to power single facilities— “large loads” such as data centers and other artificial intelligence operations.

Many of these highly capitalized loads seek clean energy generation; they could, in theory, fund an energy renaissance and provide scale-based benefits for all consumers. But loads that obtain service  are negatively impacting other consumers’ rates and, potentially, the reliability of …

Resilient Dispute Resolution Systems For International Energy Conflicts, Guillermo J. Garcia Sanchez

Faculty Scholarship

Energy-related conflicts are on the rise, spanning diverse issues such as the impacts of rare mineral mining on local communities, the impacts of sanctions on energy investments due to the Russia-Ukraine war, and the impacts of expanded subsidies on the electric vehicle and solar panel industries. Increasingly, companies, communities, and governments are clashing over the challenges of pursuing disparate and sometimes competing energy policies. This Article argues that dispute resolution mechanisms in the energy investment sector must be fundamentally rethought. Traditional semi-adjudicatory models, which focus on winners and losers, fail to accommodate the complex and multifaceted nature of contemporary energy …

Tomorrow’S Climate Law, Today, Daniel E. Walters

Faculty Scholarship

The prospects for domestic legislation or international treaties that would require governments, businesses, and individuals to stop emitting the greenhouse gases that cause global climate change are particularly bleak these days. Even as the United States has recently passed its most ambitious climate legislation to date in the Inflation Reduction Act and related “green industrial policy” legislation, these successes were ultimately a compromise with politicians who refused to consider more direct controls on emissions. Assuming they survive the second Trump Administration, the green subsidies and nudges contained in these laws, coupled with a groundswell of private environmental governance, will do …

Who Owns The Heat? Property Rights In Geothermal Energy, Gabriel Eckstein

Faculty Scholarship

Landowners can have ownership claims to oil, gas, water, and other tangible natural resources located in their subsoil. But can they also claim rights to the thermal energy found below their land? With 50,000 times more heat energy within the top 10,000 meters (around 33,000 feet) of the Earth’s surface than contained in all of the world’s oil and natural gas resources combined, geothermal energy is a tremendously promising, clean, and renewable energy resource. Yet, ambiguities in property rights related to the development and ownership of geothermal energy resources raise questions about who is entitled to benefit from that potential. …

Zoning The Subsurface, Hannah Jacobs Wiseman, Anne Menefee, Seth Blumsack, Michael Helbing

Faculty Scholarship

The vast rock formations underlying the United States stand at an important Demsetzian turning point, at which the externalities of inadequately defined property rights justify the costs of solidifying formal property rights for this resource. This need arises from the growing scarcity of pore space (tiny openings) in subsurface rocks—property that is critical to address climate change. Efforts to mitigate and adapt to climate impacts require large-scale underground storage of carbon dioxide, water, and energy within the pore space of subsurface reservoirs. The subsurface will also continue to house millions of miles of pipelines, hundreds of thousands of waste disposal …

Addressing Energy Insecurity Upstream: Electric Utility Ratemaking And Rate Design As Levers For Change, Emma Shumway, Diana HernáNdez, QëNdresa Krasniqi, Vivek Shastry, Abigail Austin, Michael B. Gerrard

Faculty Scholarship

Millions of Americans are impacted by energy insecurity each year, in part due to unaffordable and inequitable electricity rates. The electric ratemaking process presents opportunities to confront issues of affordability and equity or to instead entrench traditional approaches. State legislatures, public utility commissions (PUCs), and advocates all play vital roles in making the former a reality. Historically, ratemaking has been criticized as an insular and highly technical process that caters to utilities rather than customers. But states like California and New York are making strides by broadening PUC legal authority to include explicit consideration of equity issues, adjusting incentives and …

Defrosting Regulatory Chill, Guillermo J. Garcia Sanchez

Faculty Scholarship

In Homer’s Odyssey, King Odysseus asked his men to tie him to the mast of his ship with the hope that he would not jump into the sea after listening to the Sirens. The Odyssey’s hero made a pact to bind himself in the future. He knew that the temptation would be impossible to resist without restraints. Similarly, the creators and advocates of international investment agreements believe that providing rights to foreign investors through international treaties will chill State policies that would harm the interests of investors in the future. The “rope” to tie the State is the threat of …

North American Energy In The Crossfire, Guillermo J. Garcia Sanchez, James W. Coleman

Faculty Scholarship

North America is the beating heart of global energy markets un-dergoing a terrible energy crisis that threatens to upend both the economy and global security. The clearest path out of this global crisis is increasing energy supplies from North America, which can restore energy security and drive a transition to cleaner energy sources. The U.S., Mexico, and Canada have abundant and varied resources to surmount this challenge but are in dire need of stronger cooperation across borders, and between private and public actors to achieve this goal. This Article shows how energy law changes in the U.S. and Mexico present …

Virtual Energy, Joel B. Eisen, Felix Mormann, Heather E. Payne

Faculty Scholarship

From employment to education, many areas of our daily lives have gone virtual, including the virtual workplace and virtual classes. By comparison, the way we generate, deliver, and consume electricity is an anachronism. And the electric industry’s outdated business model and regulatory framework are failing. For the last century-and-a-half, we have relied on ever larger power plants to generate the electricity we consume, often hundreds of miles away from the point of production. But the outsized carbon footprint of these power plants and the need to transmit their output over long distances threaten the electric grid’s reliability, affordability, and long-term …

Repurposed Energy, Hannah Jacobs Wiseman, Alexandra Klass

Faculty Scholarship

Wildfires, weather extremes, and other conditions induced partially by climate change add urgency to the project of accelerating the clean energy transition from fossil fuels to zero-carbon energy infrastructure. Yet the hurdles to accomplishing such a massive industrial-scale transition are daunting. Indeed, large renewable energy generation projects regularly face denials or project-killing delays across the United States. This Article proposes a national policy to channel the bulk of new clean energy projects to targeted categories of both rural lands and urban, post-industrial lands that we define collectively as “repurposed energy” sites. Such lands will consist of marginal farmland, abandoned coal …

Reclaiming Regulatory Intermediation For The Public, Daniel E. Walters

Faculty Scholarship

Managerial governance is often operationalized through outsourcing the regulatory function from public institutions—for example, administrative agencies—to private organizations. In virtually any sector, it is possible to identify private “regulatory intermediaries” that step between public agencies and regulated parties to perform tasks traditionally played by government actors—for example, the development of regulatory standards, auditing, compliance assurance, enforcement, and more. Although this reliance on private regulatory intermediaries may in some cases be highly advantageous to government institutions since it may sometimes allow government agencies to do more regulatory work than their own resources and capacity might allow—it comes at significant costs of …

Grid Governance In The Energy-Trilemma Era: Remedying The Democracy Deficit, Daniel E. Walters, Andrew N. Kleit

Faculty Scholarship

Transforming the electric power grid is central to any viable scenario for addressing global climate change, but the process and politics of this transformation are complex. The desire to transform the grid creates an “energy trilemma” involving often conflicting desires for reliability, cost, and decarbonization; and, at least in the short run, it is difficult to avoid making tradeoffs between these different goals. It is somewhat shocking, then, that many crucial decisions about electric power service in the United States are made not by consumers or their utilities, nor by state public utilities commissions or federal regulators. Instead, for much …

Keeping All The Lights On: A Roadmap To Affordable, Universal Electricity Service In The Clean Energy Transition, Gabriel Pacyniak

Faculty Scholarship

The COVID-19 pandemic, the ongoing reckoning with structural racism, and an emerging focus on justice in the clean energy transition have combined to spotlight utility disconnections and the related issues of energy access, affordability, and security. Recent empirical scholarship has demonstrated that electricity disconnections of lower-income people are relatively common, disproportionately affect people of color, and cause significant harm. This Article describes how a number of U.S. states are fashioning an emerging policy model that makes significant progress toward truly affordable and accessible electricity service for all. It also describes how these state actions are consistent with U.S. utility law …

Climate Choice Architecture, Felix Mormann

Faculty Scholarship

Personal choices drive global warming nearly as much as institutional decisions. Yet, policymakers overwhelmingly target large-scale industrial facilities for reductions in carbon emissions, with individual and household emissions a mere afterthought. Recent advances in behavioral economics, cognitive psychology, and related fields have produced a veritable behavior change revolution. Subtle changes to the choice environment, or nudges, have improved stake-holder decision-making in a wide range of contexts, from healthier food choices to better retirement planning. But the vast potential of choice architecture remains largely untapped for purposes of climate policy and action. This Article explores that untapped potential and makes the …

The Case Against Regional Transmission Monopolies, Kristen Van De Biezendos

Faculty Scholarship

Over the next decade, the United States will need to build significant regional transmission infrastructure to achieve the country’s goal of net-zero power by 2035. However, there is a significant barrier: the transmission system is almost entirely owned by private monopolies. As a result, the grid has grown not to serve the public interest but in accordance with the economic priorities of these monopolies, which are not incentivized to innovate, find efficiencies, or lower costs. Past attempts to encourage competitive bidding for regional transmission projects have been stymied by laws intended to protect the monopolies, including the right of first …

Synthesizing Energy Transitions, Nadia Ahmad, Uma Outka, Danielle Stokes, Hannah Jacobs Wiseman

Faculty Scholarship

This Article assesses the growing and cross-disciplinary literature on energy transitions to explore how it can guide law and policy reforms for the energy sector. The modern conception of energy transition centers primarily on clean energy—a shift away from fossil energy dependence. It also, however, incorporates equity as a core principle, as an increasing emphasis on energy justice and just transition seeks to create guiding norms for the energy sector’s current state of change. The concept of energy transition is critical for describing and giving meaning to a fundamental societal shift at the local, regional, national, and global scales, aligned …

Briggs V. Southwestern Energy Production: Hydraulic Fracturing And Subsurface Trespass, Thomas W. Merrill, Henry E. Smith

Faculty Scholarship

The tort of trespass to land has proven to be controversial as applied to airplane overflights (and more recently to drones) as well as to oil and gas production using hydraulic fracking technology. The key to applying trespass to intrusions above and below the surface of land is to distinguish between possession of land and the right to possess land. Surface owners have the right to possess the column of space above and below the surface (a kind of option value), but only to the extent that this space is subject to possible effective possession. The Pennsylvania Supreme Court in …

Introduction To The Symposium On Networks, Platforms, And Utilities: Law And Policy, Morgan Ricks, Ganesh Sitaraman, Shelley Welton, Lev Menand

Faculty Scholarship

We are grateful to the Yale Journal on Regulation for hosting this symposium on our new law school casebook, Networks, Platforms, and Utilities: Law and Policy, and to the fantastic lineup of scholars who will be contributing to the symposium over the next couple of weeks.

In this brief symposium introduction, we seek to answer five questions about the book. What is it about? Why did we write it? How does its subject matter relate to other areas of legal study? Why is the time ripe for it? And, how does it differ from previous “regulated industries” textbooks?

Concluding Thoughts, Morgan Ricks, Ganesh Sitaraman, Shelley Welton, Lev Menand

Faculty Scholarship

Writing a book review, especially when that book weighs in at 1,200 pages, is an act of generosity. We are so very grateful to all the contributors for their deep engagement with Networks, Platforms, and Utilities: Law and Policy.

Characterizing Legal Implications For The Use Of Transboundary Aquifers, Gabriel Eckstein

Faculty Scholarship

Groundwater resources that traverse political boundaries are becoming increasingly important sources of freshwater in international and intranational arenas worldwide. This is a direct extension of the growing need for new sources of freshwater, as well as the impact that excessive extraction, pollution, climate change, and other anthropogenic activities have had on surface waters. It is also a function of the growing realization that groundwater respects no political boundaries, and that aquifers traverse jurisdictional lines at all levels of political geography.

Due to this growing awareness, questions pertaining to responsibility and liability are now being raised in relation to the use, …

In The Name Of Energy Sovereignty, Guillermo J. Garcia Sanchez

Faculty Scholarship

Throughout history, the phrase "In the name of the King" justified actions that trumped the rights of citizens in order to safeguard the interests of the Crown. Today, in the name of energy sovereignty, states deploy the government apparatus to access oil and gas in other parts of the world, build pipelines on private lands, subsidize renewable energy, and nationalize their oil and power industries. States justify each of these actions by noting that they create a sense of energy independence, ensure security, or achieve other social and economic goals. Energy, however, cannot be trapped in one "realm." Its nature …

An Assessment Of Requirements In Investments, New Technologies, And Infrastructures To Achieve The Sdgs, Peter Yang

Faculty Scholarship

Background: The implementation of the Sustainable Development Goals (SDGs) requires much planning and the provision of resources, especially regarding the necessary investments, technologies and infrastructures needed. Yet, it is presently unclear how available these elements are, what gaps exist, what changes have taken place in terms of their availability since the adoption of the SDGs and what their requirements will be in the future. The knowledge gap has become even more concerning because of the impact of the COVID-19 pandemic. Using a bibliometric analysis, an assessment of the global progress of SDG implementation and requirements, identifying challenges through the development …

Lumpy Social Goods In Energy Decarbonization: Why We Need More Than Just Markets For The Clean Energy Transition, Daniel E. Walters

Faculty Scholarship

To avoid the worst consequences of global climate change, the United States must achieve daunting targets for decarbonizing its electric power sector on a very short timescale. Policy experts largely agree that achieving these goals will require massive investment in new infrastructure to facilitate the deep integration of renewable fuels into the electric grid, including a new national high-voltage electric transmission network and grid-scale electricity storage, such as batteries. However, spurring investment in these needed infrastructures has proven to be challenging, despite numerous attempts by regulators and policymakers to clear a path for market-driven investment. Unchecked, this problem threatens to …

The Case For Corporate Climate Ratings: Nudging Financial Markets, Felix Mormann, Milica Mormann

Faculty Scholarship

Capital markets are cast as both villain and hero in the climate playbill. The trillions of dollars required to combat climate change leave ample room for heroics from the financial sector. For the time being, however, capital continues to flow readily toward fossil fuels and other carbon-intensive industries. Drawing on the results of an empirical study, this Article posits that ratings of corporate climate risk and governance can help overcome pervasive information asymmetries and nudge investors toward more climate-conscious investment choices with welfare-enhancing effects.

In the absence of a meaningful price on carbon, three private ordering initiatives are trying to …

When Drills And Pipelines Cross Indigenous Lands In The Americas, Guillermo J. Garcia Sanchez

Faculty Scholarship

From the Missouri River, passing through the Sonora Desert, all the way down to the Amazon Forest and the Andean Mountains, drills and pipelines are crossing over indigenous lands. In an energy-thirsty continent, there is no land left to spare, not even tribal land. Many of these energy infrastructure projects involve international investments that are protected by treaties and enforced by arbitral tribunals. At the same time, tribal communities have an internationally recognized right to receive prior and informed consultation before they are affected by projects of this nature. The Article focuses on the clash of rights between energy extraction …

Presidential Progress On Climate Change: Will The Courts Interfere With What Needs To Be Done To Save Our Planet?, Michael B. Gerrard

Faculty Scholarship

The Biden Administration is undertaking numerous actions to reduce greenhouse gas emissions and transition away from fossil fuels as part of the fight against climate change. Many of these actions are likely to be challenged in court. This paper describes the various legal theories that are likely to be used in these challenges, assesses their prospects of success given the current composition of the Supreme Court, and suggests ways to minimize the risks.

Industrial Policy And Local Content Rules In Us Energy Policy, Zachary Sturman, Timothy Meyer

Faculty Scholarship

The United States (US) has a long history of using local content requirements (LCRs) – laws, regulations, or governmental measures that condition a benefit, often financial support, on the use of a certain percentage of inputs from the local jurisdiction – to promote the development of favored domestic industries. The energy sector, as well as related infrastructure industries, have been no exception. Historically, the US has used LCRs and similar measures to promote the development of fossil fuel industries. More recent interest by policymakers in the US have spurred the use of local content rules tied to pipeline construction, as …

Whither The Regulatory "War On Coal"? Scapegoats, Saviors, And Stock Market Reactions, Cary Coglianese, Daniel E. Walters

Faculty Scholarship

Complaints about excessive economic burdens associated with regulation abound in contemporary political and legal rhetoric. In recent years, perhaps nowhere have these complaints been heard as loudly as in the context of U.S. regulations targeting the use of coal to supply power to the nation’s electricity system, as production levels in the coal industry dropped by nearly half between 2008 and 2016. The coal industry and its political supporters, including the president of the United States, have argued that a suite of air pollution regulations imposed by the U.S. Environmental Protection Agency during the Obama administration seriously undermined coal companies’ …