Monday, February 20, 2012
Is the European Union (EU) gently shifting energy law and policy and shaping the future of a climate treaty?
The European Union is steadfast in its commitment to reduce emissions by reducing reliance on traditional fossil fuels. To date it has taken several measures, each of which promises to change the paradigm of energy policy and politics. I have highlighted some recent actions below.
1. An EU law, the legality of which has been confirmed by the Advocate General, imposes a carbon tax on aviation, including international airlines, as part of EU’s Emissions Trading Scheme (EU ETS). China has retaliated by introducing legislation banning airlines from imposing a carbon tax. Several countries, including the United States, reportedly, support China’s position and may follow suit in introducing their own measures against the airline tax.
2. EU’s proposed sanctions against Iran. In response, Iran has suspended export of crude to French and United Kingdom and has threatened to suspend supply to several other European nations. It is simultaneously negotiating a contract to increase export of crude to China, as reported here. According to reports, France and the United Kingdom are not concerned. Not only do they claim to have sufficient reserves, but also the two countries recently inked a new civil nuclear energy pact as part of their energy cooperation efforts.
3. Another proposed action aims to include tar sands oil within EU’s Fuel Quality Directive (FQD), which was passed by the EU as part of its climate and energy strategy in 2008 and which requires suppliers of oil and gas fuel to the transport sector to reduce their emissions by 10% by 2020, as explained here. Based on a report that the extraction from tar sands is highly polluting because of high CO2 emissions, the European Commission has voted to include oil from the tar sands in the FQD. Even though Canada does not import oil to the EU, it fears that the inclusion can have indirect repercussions on its tar sands industry, as reported here. Pending vote by individual European nations, Canada is reportedly threatening to file a complaint before the World Trade Organization if the tar sand oil is included in the FQD.
Despite objections from different groups, EU’s measures may eventually have a larger impact on the energy landscape. In its attempt to help create a robust carbon market, it may eventually provide much desired incentive to invest in emissions reduction measure. That is, of course, unless nations who are not Party to the Kyoto Protocol or who have withdrawn from the next commitment period, notably China and Canada respectively, cooperate. Either way, it is worth watching Europe maneuver the energy market and the response of countries affected. What is emerging is a patchwork of subtle legal challenges that can nevertheless change the landscape of global energy production, supply, and consumption, as well as the future prospects of negotiating a meaningful climate treaty.
I’m delighted to be joining the Environmental Law Prof Blog as a contributing editor. This year, I’ll be blogging about my environmental experiences in China, where I’m spending 2011-12 as a Fulbright Scholar and Visiting Professor at Zhongguo Haiyang Daxue (Ocean University of China). I am teaching a full schedule of American law courses while researching Chinese environmental governance, joined by my husband, 4-year old son, and 73-year-old mother. In our small two-bedroom apartment, we live like a typical Chinese family, with three generations and an only child.
To be sure, the living is not always easy—but perhaps our most important lesson of all will be to learn what it means to downsize from American consumption levels and live a little more like the rest of the world. (And this is a sobering lesson indeed.)
In light of our rich reservoir of experience here, my blogging will be less academic and more experiential—less about the fact that Beijing will finally begin monitoring air pollution at the 2.5 micron level, and more about how life changes when you are immersed in those particulates day after day. (For more academic reporting, see the excellent Chinese blog, China Environmental Law.) To summarize the overall sentiment of the series, anyone complaining about excessive environmental regulation in the U.S. really ought to spend a year living in China.
Better still, they should bring their young children or aging parents.
This first post provides some context for my series of through-the-looking-glass observations about what it’s like to plunge into China’s modern industrial revolution as an American environmental law professor. No amount of legal research could have prepared me for the differences in environmental perspective that I would encounter here (and even my undergraduate degree in Chinese language and culture falls short). So I hope that sharing these stories will help illuminate some of the cultural gaps we will inevitably encounter as Chinese and American partners work together to solve our global environmental challenges.
I thought I'd start by explaining a little bit about where many of these stories come from. We are fortunate to be living in the beautiful city of Qingdao, Shandong Province, which is on the coast of northeastern China across the Yellow Sea from South Korea. Qingdao is home to about seven million people—a small (!) city by Chinese standards. It is a wonderful place of disarmingly friendly people, complete with weather-worn mountains overlooking a peaceful sea. Home to several of China’s biggest brands and among the ten busiest commercial shipping ports in the world, Qingdao has won several awards for green development. And yes, it is where the famous Chinese beer comes from (“Tsingtao” is just a different Romanization for “Qingdao”!)
Ocean University is one of China's key comprehensive universities under the direct supervision of the Ministry of Education. It has about 30,000 students and faculty and ranks among the top 10% of universities nationwide. The law school has an especially dynamic environmental program, offering master's and doctoral degrees and hosting seven research institutes addressing marine law, coastal zone management, sustainable development, and other important topics. (Of note, the Law School is currently inviting applications from both students and faculty for some very intriguing programs of exchange--about which I've posted separately here.)
The Dean and faculty have been extremely welcoming, and the students are delightful. Teaching them is especially gratifying because they are so hungry for the kind of engaged and participatory teaching that we regularly use in American law schools. Most of them have never before been asked what they themselves think, or to work all the way through a doctrinal problem, or to question their instructors. It is truly a privilege to be part of this cross-cultural exchange, and I will always be grateful to both the China Fulbright Program and my hosts here at Ocean University for the opportunity.
Nevertheless, the challenges of living here—specifically, the environmental challenges—can be harrowing. In the next few months, I’ll blog about the experiences of living without clean air, potable water, or faith that products in the marketplace won’t make us sick. I'll write about the many ways that established environmental problems foster newer ones, like the consequences of poor public water quality on the ever-increasing stream of waste products to cope with it. I'll write about our palpable homesickness for the kind of government oversight we take for granted to protect us in circumstances ranging from pharmaceutical to pedestrian safety. (For all the chest-thumping in some American circles about the perils of socialism, China is a Tea Partier's dream in many respects—as far away from the Nanny State as most would ever wish to venture.)
Yet I’ll also write about the environmental realms in which the Chinese put Americans to shame—for example, the amazing public transportation system in cities like ours, which can be navigated cheaply and conveniently by bus at all hours (and has a subway system in the making). Or the full-scale embrace of alternative sources of energy, with a solar water heater on every roof. Or the national government’s commitment to price carbon on at least some level--a part of the new Five Year Plan beginning experimentation in seven cities. Or the general willingness among most Chinese to make personal sacrifices for the greater good.
But since this is a blog and not a novel, I'll save my first tale for the next post--a story about how Colorado's Rocky Mountain Arsenal led to surprising insights among my Natural Resources Law students about their own experiences in China. Stay tuned!
February 20, 2012 in Air Quality, Asia, Climate Change, Energy, Food and Drink, Governance/Management, International, Land Use, Law, Sustainability, Toxic and Hazardous Substances, Water Quality, Weblogs | Permalink | Comments (3) | TrackBack (0)
Thursday, February 16, 2012
Last time, I wrote about the Yucca Mountain controversy and highlighted the question of how to structure a nuclear waste siting process in such a way as to maximize the voices of many stakeholders. The Blue Ribbon Commission has recommended a voluntary engagement approach for the United States, whereby an agency would publish technical criteria and invite interested communities to volunteer to host such a site. This suggestion, I’ve noticed, often generates you’ve-got-to-be-kidding-me laughter—what community would ever volunteer?
As it turns out, some do, raising a host of other questions about process design in the context of dread risks. Last month, Spain announced that a small village south of Madrid has been selected to host the country’s first full-fledged nuclear waste repository. According to news reports, the citizens of Villar de Canas are thrilled: they lobbied hard for the facility and hope it will remedy the town’s 30% jobless rate.
A similar story is unfolding in the United States: the town of Carlsbad, New Mexico is already host to the Waste Isolation Pilot Plant (WIPP), which stores transuranic waste in an underground repository. The location was selected in the early 1970s, with strong local support. Even so, the first shipment of waste didn’t arrive until 2001, following many years of technical study, stakeholder negotiations, legal challenges, and legislative activity. Now that Yucca has stalled, Carlsbad is volunteering to take the nation’s high-level waste.
Putting aside the technical considerations—for instance, the salt beds underlying Carlsbad are excellent geologically, but they are not perfect—could Carlsbad’s interest short-circuit what should be a more deliberative process? Any repository will bring money and jobs to a locality, in addition to benefits packages that are typical of nuclear waste siting schemes. Should other communities have a chance to compete for those benefits? Should we be concerned that money and jobs operate as bribes? Is there an environmental justice problem here, or should we be comfortable with communities speaking for themselves?
A number of process design features might ease some of these concerns. For example, voluntary engagement schemes require strong veto authority for the potential host communities to ensure they have meaningful bargaining power. They start by identifying a site’s necessary technical criteria as a way of building scientific legitimacy into the process. And they do allow communities to compete. Of course, our federal scheme adds some interesting wrinkles to the process. While Spain could work directly with its localities, the United States will have to develop consensus across states, tribes, and local governments. It promises to be a long road ahead, but hopefully we can collectively make a decision about where to site our waste.
Wednesday, February 15, 2012
Existing buildings – in their physical presence, design, and operations - challenge the goal of sustainability in the built environment. Older buildings can be leaky, inefficient, and even unhealthy, and they typically do not perform well against the expectations that we draw from today’s green building techniques and technology.
There is evidence that green building programs are impacting the existing building stock through retrofit programs offered in LEED and others. The number of projects certified under LEED for Existing Buildings: Operations and Maintenance (EBOM) surpassed those certified under its new construction counterpart in 2009. Spending on remodeling and retrofits has been on the rise and is predicted to grow to $10.1 billion-$15.1 billion by 2014. Recently, the USGBC announced that LEED-certified retrofits have outpaced new construction certifications on a cumulative basis.
We might view green retrofits of existing buildings as significant. Of course, the past is a major obstacle for achieving sustainability in the built environment, and the provision of alternatives to “business as usual” in existing structures is itself a victory. In addition, and perhaps more importantly, the growth in green retrofits suggests that sustainability may involve changes in people as well as buildings.
- Keith Hirokawa
Friday, February 10, 2012
Increasingly, I find it important to bring the practical into the classroom. To be upfront, this view is not new for me. I joined the academy with the presumption that deep theory, legal doctrine, and careful analysis cannot stand alone; the best learning couples heavy doses of those with the real world. Five years in, consistent feedback from students and the bar have overwhelmingly confirmed what I initially assumed. At least some professors also seem to agree.
Injecting the practical is comparatively easy in some courses. In my civil procedure class, for instance, I am constantly trying to find ways to help students see that the rules are not just principles; they are tools that you can only truly understand if you pick them up and use them repeatedly. In the litigation context, avenues for making this clear are both discrete and fairly digestible, even in the first semester. Students in my class attend two court proceedings. They draft a complaint or an answer. They write a set of discovery. They complete a CALI exercise that tries to replicate the discovery process of a case. It is not uncommon on my exams for students to be asked to draft a motion, complete the next entry in a deposition transcript, or create a notice of appeal. Certainly, I have no illusions that any first-year student will leave my class a master of any of these tasks. But the hope is that by being exposed to some of them, students not only begin to gain an understanding of what litigators do on a daily basis, but also learn the material more deeply while laying a foundation of skills they will actually need in practice.
The question, then, is whether this kind of hybrid learning is also useful for more specialized, upper level law classes, particularly those in the environment, energy, and natural resource fields. More and more, I have become convinced that it is. Conceptually, this makes sense. Lawyers in any field have specific, practical skills they cannot be effective without. There is no reason this is not also true for the areas in which we teach. Having practiced for seven years, I know that's the case. The environmental lawyer is always translator: To handle a pollution case, you have to comprehend risk analysis and toxicology. To grapple with energy rates or mergers, a grasp of economics is essential. To do endangered species, biology is fundamental. In all these, an understanding of the industry the lawyer represents, or that the law at issue regulates, cannot be foregone.
The problem for the classroom, however, is twofold. First, there is a chicken-and-egg dilemma. Students cannot really dive into the details of many topics on a practical basis until they have the basics of the law under control. But getting to how that law really works is tough without practical exercises. Second, there is an allocation quandary. Every minute spent on a practical exercise deepens students’ understanding of that topic but does so at the expense of another subject area that could be covered instead. In courses that present as many fascinating issues as ours do, making this choice is often more painful—for me at least—than deciding, for example, whether to do another day on summary judgment or covering standards of review in civil procedure. At some point, moreover, too much of the practical in the classroom converts the substantive topic to a clinical one; there is a balance to find.
Nevertheless, I believe we owe it to our students to add this dimension to their understanding of the field. To that end, here are a few things we are doing in my energy law class this semester.
- Field trips to various energy sites, including to PacifiCorp’s Gadsby Power Plant earlier this week.
- Mock cost-of-service ratemaking exercises, using a hypothetical utility’s rate base, debt structure, and production costs.
- Guest lectures and case studies on actual energy controversies.
I’d be thrilled to hear what others are doing in their energy, environmental, or natural resources classes to add practical or experiential learning to the classroom.
(photo credit: S.P. Hansen)
Friday, February 3, 2012
The story of Yucca Mountain, Nevada—designated as the nation’s repository for commercial nuclear waste—is of central importance in the enduringly contentious nuclear power debate.
If you’ve been following the Yucca Mountain controversy, you’ll know that both the Department of Energy and the Nuclear Regulatory Commission have essentially halted the project. From an administrative law perspective, it seems pretty clear that neither agency is behaving as Congress intended. (Links to various documents related to those decisions and legal challenges can be found here.)
But that perspective is unsatisfying because it only hints at a much broader, more persistent issue in confronting environmental risks: whose voice matters?
Consider some of the possibilities:
- Is it Congress, which designated Yucca Mountain as the sole location for site characterization and, ultimately, disposal?
- Is it Nevada, whose veto of the project Congress overrode?
- Is it President Obama, who campaigned on a promise to shut down Yucca Mountain, and has directed the Department of Energy to do just that?
- Is it Nye County, Nevada, within which Yucca is located, and which supports opening a repository?
- Is it the generators and owners of nuclear waste that have made payments into the Nuclear Waste Fund for decades?
- What about the scientists who worked for DOE, NRC, and consulting firms, many of whom dedicated their careers to the repository?
- And what about the broader public and our collective reliance on nuclear energy for about 20% of our electricity?
All of these voices matter—and many more could be added to this list. But whose should prevail? And are there ways to structure our decisionmaking processes going forward to somehow reach outcomes satisfactory to many voices?
On January 26, 2012, the Blue Ribbon Commission (BRC) on America’s Nuclear Future released its final report (press release and final report available here.) Tasked with conducting a comprehensive analysis of policies related to the back end of the nuclear fuel cycle, the BRC’s report recommends using a consent-based, adaptive approach to siting future nuclear waste storage and disposal facilities.
Exactly what that approach will look like remains to be seen. The good news is that there has been a lot of experimentation already in stakeholder engagement, providing a nice supply of lessons for the future. I’ll be spotlighting some of those in the coming months, and hope readers will share others in the comments.
- Emily Meazell
Friday, January 27, 2012
- Nuclear Power: Does It Have a Future in the United States? (John Ruple, Michael Stern, Christopher Thomas)
Tuesday, January 24, 2012
It has been nearly one year since a massive tsunami and earthquake shook Japan's nuclear plants. Up until that point nations seriously considered nuclear energy as a good alternative to meet growing energy demands and reduce GHG emissions. Government response to the incident, however, are varied. European nations, particularly Germany, which was planning to expand the life of some its plants has withdrawn such plans.China and India have no plans to scale back on their nuclear expansion program.India is slated to open one of its largest nuclear power plants in Kudankulum, Tamil Nadu, even though locals (and the Chief Minister of Tamil Nadu) are demanding proper explanation of safety checks from the Prime Minister. An news report (interview) of the issue can be found here. Similarly, in the United States, efforts to cut back on nuclear energy power remain contentious. On January 20, a Vermont District Court judge enjoined the State of Vermont from taking any action to shut down the Vermont Yankee nuclear power plant, after a State Senate vote against renewal of operations at the plant due to safety concerns was challenged. The court found that the Atomic Energy Act preempted State action. A copy of the decision can be found here .
For countries that want to pursue nuclear energy options, the motivation is economic growth. Even Germany, which has scaled back on nuclear energy, is faced with challenges of meeting its energy demands and there are reports that economic slow down in Germany coincides with its new nuclear policy. For countries such as China, India, and the United States, economic concerns govern their decision. Without a comprehensive nuclear safety policy globally, eventual nuclear power expansion appears imminent. What is required then is a close examination of nuclear energy laws, particularly in light of Japan's experience with continuing food contamination and a persisting dissatisfaction with government accountability. It is perhaps time to seriously consider, or reconsider, nuclear safety regulation.
Friday, January 13, 2012
The ABA Section of Environment, Energy, and Resources (SEER) will host its 41st Annual Conference on Environmental Law this March 22-24 in Salt Lake City. If you have not been before, this is one of, if not the, premier environmental law conferences in the nation. (If the weather turns right, there could also be really great skiing.) The conference used to be known as the "Keystone Conference."
As usual, there is a fantastic line-up. Just a few samples include:
- Environmental Protection on the Chopping Block? How Environmental Law and Enforcement Will Respond to Funding Cuts and Other Restrictions
- Hydraulic Fracturing on Trial: Possibilities, Pollution, and Preemption
- Federal Air Regulation of the Energy Sector: What to Expect for Oil, Natural Gas, and Coal
- Time and Scale: Emerging Challenges to NEPA and the ESA Getting Real About “Growing Communities”—How New Laws and Regulations Are Changing the Game of Urban Expansion
Of particular note, this year's conference has a number of opportunities for students, including panels designed to help acclimate students to emerging issues in the field and scholarships for students to attend (deadline: February 14, 2012).
To register, go to the conference website.
Wednesday, November 2, 2011
The Wallace Stegner Center for Land, Resources, and the Environment at the University of Utah S.J. Quinney College of Law has posted a job opening for a new alternative dispute resolution program focused on environmental, natural resources, and energy issues. The position is for the director of the program.
Here is the announcement. Note the link at the end for online applications:
The Wallace Stegner Center for Land, Resources and the Environment at the University of Utah S.J. Quinney College of Law is establishing a new Alternative Dispute Resolution (ADR) program focused on environmental, public lands, and natural resource issues and is currently accepting applications for the ADR Program Director. The Director will play a major role in initiating, designing, and developing the new ADR program. Specific responsibilities include identifying issues of local, regional, and national importance and proactively investigating ADR opportunities; public education about the benefits of mediation, collaboration, and other ADR options; providing ADR services to government agencies, corporations, environmental organizations, and other entities; fundraising to support the program; and research on ADR processes and opportunities. Requirements include a Juris Doctor or equivalent degree, along with a minimum of five (5) years of experience in alternative dispute resolution. Experience with environmental, natural resources, or energy law and policy, and especially experience with these issues in the western United States, is strongly preferred. For additional information and to apply, please go to http://utah.peopleadmin.com/postings/11104.
November 2, 2011 in Air Quality, Biodiversity, Climate Change, Current Affairs, Energy, Forests/Timber, Governance/Management, Land Use, Law, Mining, North America, Sustainability, Toxic and Hazardous Substances, US, Water Quality, Water Resources | Permalink | TrackBack (0)
Sunday, October 23, 2011
Climate change regulation is dead? Not in California, which this week adopted the nation's first economy-wide cap-and-trade program.
The Tenth Circuit, in a 120-page decision, upheld a Clinton-era rule protecting 50 million acres of forestland from logging and roads.
The Council for an Energy-Efficient Economy released its first annual rankings of states; Massachusetts was first, with California second.
An advocacy study observed that FCC standards for cell phones "grossly underestimate the amount" of radiation that "smaller adults and children retain," as reported by Greenwire.
BP received approval for a plan to explore for oil in the Gulf of Mexico, its first such approval since the Deepwater Horizon disaster.
There is a fascinating article this week in The New Yorker about the aftermath of the Fukushima-Daiichi nuclear accident in Japan. (hat tip: Joe Tomain)
October 23, 2011 in Asia, Cases, Climate Change, Current Affairs, Energy, Environmental Assessment, Forests/Timber, Governance/Management, Law, Legislation, Science, Sustainability, US | Permalink | TrackBack (0)
Sunday, September 4, 2011
* The Obama administration decided to abandon proposed ozone regulations, which the oil industry and other business interests had criticized as unnecessarily costly.
* Although most of the 9 million people who lost power due to Hurricane / Tropical Storm Irene have had their electricity restored, utilities have gone on the defensive, launching PR campaigns in the face of likely investigations from regulators.
* Tropical Storm Lee has forced evacuation of over a third of oil and gas production platforms and drilling rigs in the Gulf of Mexico.
* Japan has adopted a feed-in tariff that will take effect next year and seeks to incent 30,000 MW of new renewables installations in the next decade.
* A beetle called the goldspotted oak borer is threatening trees in southern California.
* President Obama is pushing for a transportation spending bill, to fund federal highway projects and keep fuel taxes in place.
Friday, August 26, 2011
The most recent edition of the ABA Journal inspired me. Its cover story is the feature "30 Lawyers Pick 30 Books Every Lawyer Should Read."
This got me thinking. What are the must-read energy, or energy law and policy, books out there?
Looking around a little, I found one person's answer. Alexis Madrigal, senior editor at The Atlantic and author of Powering the Dream: The History and Promise of Green Technology, came up with these "13 Energy Books You Need to Read":
- Consuming Power by David Nye
- Petrolia by Brian Black
- The Prize by Daniel Yergin
- Energy Policy in America Since 1945 by Richard Vietor
- Technology and Transformation in the American Electric Utility Industry by Richard Hirsh
- The Bulldozer in the Countryside by Adam Rome
- Soft Energy Paths by Amory Lovins
- Energy at the Crossroads by Vaclav Smil
- Hubbert’s Peak by Ken Deffeyes
- A Golden Thread by Ken Butti and John Perlin
- Sorry Out of Gas: Architecture’s Response to the 1973 Oil Crisis by the Canadian Centre for Architecture
- Wind Energy Comes of Age by Paul Gipe
- The Discovery of Global Warming by Spencer Weart
Madrigal's is a fascinating, insightful list. I'm still wondering: what's my list of must-read energy and energy law/policy books?
More to the point, what's yours?
Friday, August 19, 2011
In the months since the disaster at Fukushima Daiichi, it seems that nuclear energy increasingly has been in the news. This week was no exception. If anything, it was a particularly busy few days for news on nuclear energy. A few highlights:
- A U.S. envoy to Japan severely criticized that nation's government for their response to the Fukushima disaster. According to an AP story, Kevin Maher, head of the envoy and the former diplomat to Japan, said: "“There was nobody in charge. Nobody in the Japanese political system was willing to say, ‘I’m going to take responsibility and make decisions.’”
- Meanwhile, Japanese citizens are still dealing with the radioactive aftermath of Fukushima.
- In New York, residents are split over Governor Cuomo's plan to shutter Entergy's Indian Point nuclear generating station. According to a recent poll, 49 percent of those living near the plant oppose shutdown, while 40 percent favor it.
- The Tennessee Valley Authority unanimously approved a proposal to complete construction of the Bellefonte nuclear power plant in Hollywood, Alabama. Prior construction ended in the late 1980s.
- At the same time, Exelon's CEO John Rowe spoke out on the difficulty of building new nuclear plants in the U.S. "The country needs nuclear power if it is going to tackle the problem of climate change," he said. "But we must keep our hopes for new generation harnessed to facts. Nuclear needs to be looked at in the Age of Reason and not the Age of Faith. It is a business and not a religion."
- And the NRC approved a license for a uranium milling operation in Wyoming.
Sunday, August 7, 2011
* The famine in Somalia continues to worsen.
* Shell received conditional approval from the U.S. Bureau of Ocean Energy Management, Enforcement and Regulation to drill in the arctic Beaufort Sea, off the coast of Alaska.
* EPA proposed a rule that would exempt carbon dioxide streams from hazardous waste regulations under certain conditions. The hope is to spur greater use of carbon capture and sequestration technology.
* A new PAC has formed to promote energy efficiency legislation.
* If you haven't seen it yet, Science has out an impressive set of materials on population trends, their environmental impacts, and prognostications about what it all means for the future of the planet.
* The leopards are not happy.
August 7, 2011 in Africa, Biodiversity, Climate Change, Current Affairs, Energy, Land Use, Law, Legislation, North America, Science, Sustainability, Toxic and Hazardous Substances, US, Water Resources | Permalink | TrackBack (0)
Saturday, July 30, 2011
Earlier this year, the University of Utah law school hosted what turned out to be a great symposium on the topic, "The Future of Energy Law." The articles from that conference have just been published, and offer what can only be described as a virtual treasure trove for energy law enthusiasts.
They feature some of the brightest minds in the game. To wit:
- The Past, Present, and Future of Energy Regulation by Dick Pierce
- Controlling Greenhouse Gases from Highway Vehicles by Arnold Reitze
- Residential Renewable Energy: By Whom? by Joel Eisen
- The Next Step: The Integration of Energy Law and Environmental Law by Amy Wildermuth
- "Our Generation's Sputnik Moment": Regulating Energy Innovation by Joe Tomain
- The Future of Energy Law - Electricity by Ed Comer
We were lucky enough to hear in person these emerging ideas in what is an ever-changing field here in Salt Lake City earlier this January.
They're now all available for download as well.
Saturday, July 23, 2011
I am in Seoul participating in the Korea Legislation Research Institute's conference, "Architecting Better Regulation to Overcome Energy Crisis." The conference has produced a fascinating discussion about how best to transition to a renewable energy economy.
Korea has been using a feed-in tariff ("FIT") system to promote renewables deployment. That changed in 2008 when the system came under criticism, in large part because it placed a strain on government finances. This goes to show that how policies are designed very much matters. FITs that raise consumer prices too much are subject to challenge on that ground, but those that choke government coffers may make the point even more acutely.
The plan now is to switch to a renewable portfolio standard ("RPS"), much like what many of the states in the U.S. are using. It will be a very interesting case study that puts these two mechanisms in sharp contrast. Debates about whether FITs or RPSs are better at incenting renewables deployment are longstanding; others have advocated that they can work together. Korea's change may add some clarity to the discussion.
It may also prove to drive home some of the themes that emerged from the conference speakers:
- Jannik Termansen, a vice president at Vestas, noted that what industry needs is not as much one scheme over another, but rather, "TLC": not tender loving care, but "transparency," a "long-term, stable commitment," and "certainty." He noted that installed wind capacity in the Asia-Pacific region has now surpassed that of North America, and looks to grow even further in coming years.
- Penny Crossley from the University of Sydney argued that renewables are important not just from a climate change perspective but also from that of energy security. "Energy security is another reason why renewables are important," she said. She noted six different ways that renewables promote energy security, and argued that we should commoditize those security benefits.
- Prof. Wu Zhonghu and Libin Zhang reminded us of the heavy role China will play in shaping the world's energy future. They noted that China is now a leader in world energy consumption, and that China remains in a transition from a centrally planned system to a market-based one. How this affects renewables development long-term remains to be seen.
- Nicolas Croquet highlighted the EU's 20-20-20 challenge. It is ambitious indeed: By 2020, 20% renewable energy use, a 20% reduction of greenhouse gas emissions from 1990 levels, and 20% decreased primary energy use. Is this a goal to which Korea, the U.S., and others should aspire? Should we go further?
It is a lot to chew on, both for the energy outlook for Asia and at home in the U.S. as well.
Thursday, June 30, 2011
Legal scholarship of late has highlighted the need not just for climate mitigation but also for climate adaptation. One energy option that falls somewhere in between these two ends of the spectrum is carbon capture and sequestration ("CCS"): removing carbon dioxide streams from commercial operations, especially coal-fired power plant emissions, and then transporting it to geologic formations where it can be stored long-term underground.
Despite the fact that the oil and gas industry has used this process for years in enhanced oil reocvery operations, commercial-scale CCS has yet to get off the ground as a climate change solution. Numerous recent scholarly articles have addressed legal concerns related to carbon capture and sequestration, including, to name just a few, excellent pieces by Victor Flatt and by Alex Klass and Elizabeth Wilson.
While many studies have suggested barriers to using CCS on a broad-scale basis -- including its high cost compared to traditional coal combustion, possible legal liability for underground storage gone awry, and difficulties in building the massive pipeline infrastructure that would be needed for commercial CCS -- no study to date has methodically addressed which of these barriers is greatest. The answer to that question is important, because it implicates what CCS regulation should look like.
One study that I have been working on with colleagues from the University of Utah's Institute for Clean and Secure Energy takes up this question (and several others). While we are still in the process of finalizing the report, here is a partial preview.
The study includes a survey of about 230 industry, professional, regulatory, and academic representatives involved in CCS. One of the survey questions asked the participants to rate, on a 1 to 5 scale, a number of possible barriers to CCS commercialization. A score of 1 means that the barrier is "no obstacle" to CCS commercialization, a 2 is a "minor" barrier, a 3 is a "measurable" barrier, 4 a "significant" barrier, and 5 a "critical barrier.
Four obstacles to CCS commercialization ranked highest in the survey: cost, lack of a carbon price or other financial incentive for using CCS, liability, and lack of comprehensive CCS regulation.
In one respect, this ranking is unsurprising. Cost, liability, and the lack of climate change legislation have been widely acknowledged as problematic for the roll-out of CCS, so one might expect them to top the list. Perhaps more interesting, however, is how highly the lack of CCS regulation rates. What this means is that before CCS is likely to get off the ground, a predictable, comprehensive regulatory regime will need to be put in place.
The survey has more to say on that front. Look for the full report later this summer.
Thursday, June 23, 2011
Earlier this week, it was hard to tell whether the cries coming from southern California were of joy or despair. San Diego Gas & Electric is in the process of building a massive transmission line from the Imperial Valley to its load center in San Diego. Increasingly, it looks like SDG&E will be able to fend off the numerous legal challenges to the project and bring scores of renewable electrons home.
The Sunrise Powerlink project is, by any measure, impressive. According to SDG&E, the line will run nearly 120 miles. It will cost almost $2 billion to build. It will create hundreds of construction jobs and "thousands" of jobs in renewable energy. It should save consumers $100 million annually. It will give SDG&E access to numerous renewables projects. And it will have a capacity of 1,000 MW, enough to power "650,000 homes."
All this sounds like a good thing. One would think so. It is well established that one of the biggest impediments to renewables is the need for more transmission lines -- lots of them in many places. On that score, the Sunrise Powerlink project should be most welcome news. SDG&E repeatedly has pointed out that this project can only help the state achieve its renewable portfolio mandate of 33% renewable electricity by 2020.
Still, the fact that the Sunrise project has been plagued by litigation highlights the contentious natureof completing any large energy developmenttoday. NIMBYism reigns not only when developments harm the environment but also when they help. Companies building environmentally beneficial projects know well by now that environmentalism is not a proper noun, a capitalized word representing a unified front. It's very much lower-cased; disaggregated, splintered, fractured, multifarious, subject to hijacking.
This, then, underscores three important points that are becoming more and more obvious as we, it increasingly seems, begin a transition to a more sustainable energy infrastructure. First, the process will be slow. Sunrise is all about renewables but still facesopposition. What will be the fate of more mixed projects? Second, if we are to move to renewables, legislation facilitating transmission build-outs will be extremely helpful, if not necessary. Utilities clearly prefer big, centrally planned projects. Without transmission, they can't go forward. Third, a united front will be necessary. Climate change certainly has been a galvanizing force for environmentalists over the last decade, and more. If they want meaningful progress, environmentalists cannot say no to everything. Some things have to be yes, and the yes needs to be resounding. That especially goes for projects that have both environmental and economic benefits.
Then there will be some good news indeed.
Thursday, June 9, 2011
A recurrent axiom in energy law today is that "efficiency is our cheapest resource." It's true. Every day, we forgo massive amounts of monetary and environmental savings we could achieve without ever building a new wind farm or replacing gasoline with natural gas, simply because our energy systems are not as efficient as they could -- or should -- be. The beautiful thing about efficiency, moreover, is that it is generally non-controversial. It's cheap. It's green. So everyone loves it.
Earlier this year, the kerfuffle in Congress over light bulb regulation drew into question the political legs of the efficiency argument. A portion of the 2007 energy bill signed by President George W. Bush -- and supported by industry -- required the phase-out of lower-efficiency incandescent light bulbs. But at least some members of this Congress, newly invigorated by the anti-regulation flare of Tea Party Republicans, took issue with this measure, using it to highlight their philosophical aims.
Now, however, at least two bills pending in Congress pack enough efficiency punchto make one forget there ever was a light bulb debate.
The first, S. 398 or the Implementation of National Consensus Appliance Agreements Act of 2011 would update existing, and institute first-time, efficiency standards for numerous appliances and devices, including refrigerators, freezers, dishwashers, clothes washers and dryers, furnaces and A/C units, portable electric spas, and drinking water dispensers. Supported by a broad coalition of environmental groups and appliance manufacturers, the bill would conserve enough energy to fuel "4.6 million homes" save consumers a net "$43 billion by 2030," according to an analysis by the Alliance to Save Energy.
The second, S. 1000 or the Energy Savings and Industrial Competitiveness Act of 2011, would address efficiency in further ways. In addition to establishing efficiency standards for appliances, it would strengthen national model building codes, encourage private investment in residential and commercial efficiency upgrades through DOE loan guarantees, create a "SupplySTAR" program to enhance the efficiency of companies' supply chains, and require the nation's largest energy consumer, the federal government, to institute efficiency and energy-saving measures. Industry also is getting behind this bill. Eric Spiegel, Siemens Corp.'s president and CEO, said this: "Federal, state and local budgets are as tight as they have ever been, but energy efficient products and solutions that will be advanced through this important piece of legislation can help government, industry and consumers save energy and millions of dollars, create jobs and spur competitiveness."
For those who are endeared by measures that both save money and our nation's environmental future, these bills should come as welcome news.
And if that's not enough, take a walk down the aisles of your local hardware store. You might be pleased to find some of the light bulbs that are now for sale.