Energy and Utilities Law Commons^™

Dual Environmentalism: Demand Response Mechanisms In Wholesale And Retail Energy Markets, Sarah M. Main

Pace Environmental Law Review

This note argues that a dual jurisdictional approach to demand response programming is better suited to mitigate environmental harms than an “either-or” regulatory model. Through an exploration of FERC’s authority over wholesale demand response, state authority over retail-level demand response, and implications for electricity and capacity markets arising out of the Court’s decision in FERC v. EPSA, this note will offer effective legal mechanisms for mitigating environmental costs, while fostering environmental benefits. The next section of this note analyzes the strengths and weaknesses of state and federal regulatory approaches to demand response in isolation.

Based on this assessment, this note …

Transition Support Mechanisms For Communities Facing Full Or Partial Coal Power Plant Retirement In New York, Lisa Anne Hamilton, Radina Valova, Karl R. Rábago

Environmental Law Program Publications @ Haub Law

New York State is undergoing a rapid and unprecedented energy transformation, particularly in the electricity sector. As new resources and technologies emerge to meet the demands of 21st century life, regulators must balance the need for cost effective and equitable participation in wholesale power markets while maintaining reliability on the grid. Furthermore, it is critical that all New Yorkers participate fully in the promise of a revitalized and equitable energy future. Such a transformation requires that the needs of all communities are factored into the polices and regulations that move New York toward the bold goals set forth under its …

Dual Electricity Federalism Is Dead, But How Dead And What Replaces It?, Joel B. Eisen

Law Faculty Publications

The Supreme Court decided three cases in the past year involving the split of jurisdiction between the Federal Energy Regulatory Commission (FERC) and the states in the energy sector: FERC v. Electric Power Supply Association, Hughes v. Talen Energy Marketing and ONEOK v. Learjet. This Article concludes that these watershed decisions herald a new approach to governing the rapid evolution of the modern electric grid. Discussing the decisions, the analysis demonstrates that they mark the end of “dual federalism” in electricity law that treated federal and state regulators as operating within separate and distinct spheres of authority, and proposes that …

Stranded Costs And Grid Decarbonization, Jim Rossi, Emily Hammond

Vanderbilt Law School Faculty Publications

Over the past half century, energy law has endured many stranded cost experiments, each helping firms and customers adjust to a new normal. However, these past experiments have contributed to a myopic regulatory approach to past stranded cost recovery by: (1) endorsing a preference for addressing all stranded costs only after energy resource investment decisions have been made; and (2) fixating on the firm’s financial costs and protection of investors, rather than on the broader impacts of each on the energy system.

The current transition to decarbonization is already giving rise to stranded cost claims related to existing energy assets …

Federal Energy Regulatory Commission V. Electric Power Supply Association, Keatan J. Williams

Public Land & Resources Law Review

In a 6-2 opinion delivered by Justice Kagan, the United States Supreme Court upheld FERC Order No. 745, which regulates the prices that wholesale market operators pay for demand response bids. At issue in the case was whether this regulation exceeded FERC’s wholesale regulation authority under the Federal Power Act, thereby impinging on retail markets under state regulation, and whether the pricing regulations within the rule were chosen in an arbitrary and capricious manner. The Court held Order No. 745 withstood both challenges.

Empowering Federal Regulation For A Changing Electricity Sector, Felix Mormann

Articles

No abstract provided.

Ferc V. Epsa And The Path To A Cleaner Electricity Sector, Joel B. Eisen

Law Faculty Publications

This article analyzes the impact of FERC v. Electric Power Supply Association, in which the Supreme Court upheld FERC’s demand response rule (Order 745) and confirmed FERC’s authority over “practices” “directly affecting” wholesale rates for electricity. It contends that the Supreme Court made a definitive pronouncement on FERC’s authority over end users of electricity who also provide resources back to the electric grid. It also contends that FERC v. EPSA marks the end of “dual federalism” in electricity law that treated federal and state jurisdiction as separate and distinct spheres of authority. Instead, it posits a new era of concurrent …

Energy Deference, Sharon B. Jacobs

Publications

Electricity law is complex, and the Supreme Court knows it. Lawyers are familiar with the adage that generalist courts tend to defer to agency decisions where the subject matter is complex or technical. But what features of a case make the Court more or less likely to defer to the agency's judgment? And how exactly do deference regimes work in the presence of complexity? This essay offers insights gleaned from Court's opinion in Federal Energy Regulatory Commission v. Electric Power Supply Ass’n (“EPSA”). It explains, first, that Courts are highly deferential in energy cases due to both the complexity of …

Public Trust Doctrine Implications Of Electricity Production, Lance Noel, Jeremy Firestone

Michigan Journal of Environmental & Administrative Law

The public trust doctrine is a powerful legal tool in property law that requires the sovereign, as a trustee, to protect and manage natural resources. Historically, the public trust doctrine has been used in relationship to navigable waterways and wildlife management. Despite electricity production’s impact on those two areas and the comparatively smaller impacts of renewable energy, electricity production has garnered very little public trust doctrine attention. This Article examines how electricity production implicates the public trust doctrine, primarily through the lens of four states—California, Wisconsin, Hawaii, and New Jersey—and how it would potentially apply to each state’s electricity planning …

What's Worse, Nuclear Waste Or The United States' Failed Policy For Its Disposal?, Christopher M. Keegan

University of Richmond Law Review

No abstract provided.

Regulating Electricity-Market Manipulation: A Proposal For A New Regulatory Regime To Proscribe All Forms Of Manipulation, Matthew Evans

Michigan Law Review

Congress broadly authorized the Federal Energy Regulatory Commission (“FERC”) to protect consumers of electricity from all forms of manipulation in the electricity markets, but the regulations that FERC passed are not nearly so expansive. As written, FERC’s Anti-Manipulation Rule covers only instances of manipulation involving fraud. This narrow scope is problematic, however, because electricity markets can also be manipulated by nonfraudulent activity. Thus, in order to reach all forms of manipulation, FERC is forced to interpret and apply its Anti-Manipulation Rule in ways that strain the plain language and accepted understanding of the rule and therefore constitute an improper extension …

A Dormant Commerce Clause Approach To Interstate Electricity Transmission, Felix Mormann

Articles

No abstract provided.

Demand Response And Market Power, Bruce R. Huber

Journal Articles

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 …

Importing Energy, Exporting Regulation, James W. Coleman

Fordham Law Review

This Article identifies and addresses a growing contradiction at the heart of United States energy policy. States are the traditional energy regulators and energy policy innovators—a role that has only grown more important without a settled federal climate policy. Federal regulators and market pressures, however, increasingly demand integrated national and international energy markets. Deregulation, the rise of renewable energy, the shale revolution, and new sources of motor fuel precursors like crude and ethanol have all increased interstate energy trade.

This Article shows how integrated national energy markets are driving states to regulate imported fuel and electricity based on how it …

Public Utilities Law, William T. Reisinger

University of Richmond Law Review

This article explains, at a high level, some of the major changes to electric regulation in Virginia in recent years. It also discusses how the General Assembly's new policies have affected retail electric rates and the development of new generation facilities, including renewable energy resources, in the Commonwealth since 1999.

Beyond Tax Credits: Smarter Tax Policy For A Cleaner, More Democratic Energy Future, Felix Mormann

Faculty Scholarship

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 …

Curtailment First: Why Climate Change And The Energy Industry Suggest A New Allocation Paradigm Is Needed For Water Utilized In Hydraulic Fracturing, Victor Flatt, Heather Payne

University of Richmond Law Review

No abstract provided.

Developing Adaptive And Integrated Strategies For Managing The Electricity-Water Nexus, Benjamin K. Sovacool, Alex Gilbert

University of Richmond Law Review

No abstract provided.

Solar Skyspace B, K.K. Duvivier

Sturm College of Law: Faculty Scholarship

The cleanest source of electricity is that generated from photovoltaic solar panels (PV). Unlike fossil fuels, PV does not require extraction and does not burn, so it emits no carbon. Unlike hydropower, it does not require the damming of natural rivers and the destruction of upstream areas through flooding. Unlike industrial-scale concentrating solar thermo-electric power, it does not consume water to generate electricity. Finally, when placed on existing rooftops in developed areas, distributed solar PV does not require long-term dedication of public lands to an industrial use, does not disrupt native habitat (a potential problem with all of other energy …

Leveraging Paraguay’S Hydropower For Sustainable Economic Development, Perrine Toledano, Nicolas Maennling

Columbia Center on Sustainable Investment Staff Publications

While internationally Paraguay is known for being the largest hydropower exporter in the world, the domestic economy suffers from regular outages and high system losses. The country is largely dependent on agricultural production, which has led to volatile economic performances in the past resulting from climatic circumstances and commodity price fluctuations. To address these two key policy challenges, the Government of Paraguay has approached The Earth Institute to: 1) explore the potential of a climate risk management system and sustainable agriculture activities to mitigate environmental vulnerability and 2) develop a high-level strategic plan to use Paraguay’s vast hydropower resources for …

Market Power In Power Markets: The Filed-Rate Doctrine And Competition In Electricity, Sandeep Vaheesan

University of Michigan Journal of Law Reform

State and federal initiatives have opened the American electric power industry to competition over the past four decades. Although the process has not occurred uniformly across the country, wholesale electricity markets exist everywhere today. Independent power producers can construct generation facilities and sell their output to utilities and industrial customers through bilateral contracts. In many regions, centralized power markets now facilitate the sale of billions of dollars in electricity annually through auctions. Although market forces have replaced direct price regulation in electricity, antitrust enforcement has not expanded its role commensurately. A lack of competition has been a serious problem in …

Who Regulates The Smart Grid?: Ferc's Authority Over Demand Response Compensation In Wholesale Electricity Markets., Joel B. Eisen

Law Faculty Publications

This Article argues that Order 745 is both justified under the Federal Power Act (FPA) and important to ensure the transition to a clean energy future. A challenge to Order 745, Electric Power Supply Association v. FERC, is currently pending in the D.C. Circuit. This Article contends that Order 745 should be upheld against this challenge because it fits within FERC's broad authority to regulate the wholesale power markets.

Toward A Sustainable Future: An Environmental Agenda For The Second Term Of The Obama Administration, David M. Uhlmann

Other Publications

Much was at stake in the Presidential election of 2012, which was marked by heated debate over the trajectory of the economy, the expiration of the Bush tax cuts, and the fat of the President's health care plan. The candidates disagreed about nearly every issue from foreign policy and the war on terror to a woman's right to choose and same-sex marriage. Lost amid the din and never mentioned in the Presidential debates or most of the campaign speeches was another divisive topic: how our environmental laws and policies should address global climate change and chart a sustainable future for …

Smart Regulation And Federalism For The Smart Grid, Joel B. Eisen

Law Faculty Publications

This Article examines the “Smart Grid,” a set of concepts, technologies, and operating practices that may transform America’s electric grid as much as the Internet has done, redefining every aspect of electricity generation, distribution, and use. While the Smart Grid’s promise is great, this Article examines numerous key barriers to its development, including early stage resistance, a lack of incentives for consumers, and the adverse impacts of the federal-state tension in energy regulation. Overcoming these barriers requires both new technologies and transformative regulatory change, beginning with the development of a foundation of interoperability standards (rules of the road governing interactions …

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

Faculty Scholarship

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.

The Tipping Point Of Federalism, Amy L. Stein

UF Law Faculty Publications

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 …

Agenda: 2012 Energy Justice Conference And Technology Exposition, University Of Colorado Boulder. Center For Energy & Environmental Security, University Of Colorado Boulder. Colorado European Union Center Of Excellence, University Of Colorado Boulder. Presidents Leadership Institute

2012 Energy Justice Conference and Technology Exposition (September 17-18)

Co-sponsored with the Colorado European Union Center of Excellence and the Presidents Leadership Institute at the University of Colorado Boulder.

The ability to harness energy is fundamental to economic and social development. Worldwide, almost 3 billion people have little or no access to beneficial energy resources for cooking, heating, water sanitation, illumination, transportation, or basic mechanical needs. Energy poverty exacerbates ill health and economic hardship, and reduces educational opportunities, particularly for women and children. Specifically, access to efficient and affordable energy services is a prerequisite for achieving the Millennium Development Goal (MDG) relating to poverty eradication.

In response, the UN …

Slides: Appropriate Sustainable Energy Technologies: A Light To The World, Lakshman D. Guruswamy, Jason B. Aamodt, Blake Feamster

2012 Energy Justice Conference and Technology Exposition (September 17-18)

Presenter: Jason Aamodt, Attorney; Adjunct Professor, University of Tulsa

15 slides

Slides: Sources Of Electrical Energy For Those Who Are Remote And Poor, Frank Barnes

2012 Energy Justice Conference and Technology Exposition (September 17-18)

Presenter: Dr. Frank Barnes, Distinguished Professor, Electrical, Computer, and Energy Engineering, University of Colorado

24 slides

Slides: Impacts Of Energy Deficits In Cooking, Illumination, Water, Sanitation, And Motive Power, Paul S. Chinowsky

2012 Energy Justice Conference and Technology Exposition (September 17-18)

Presenter: Dr. Paul Chinowsky, Director, Mortenson Center in Engineering for Developing Communities; Professor, University of Colorado

25 slides