Electricity generation in the United States is one of the leading sources of greenhouse gas emissions, which cause severe climate change-related harms. Despite the severity of those harms, the Federal Energy Regulatory Commission (FERC), which regulates the interstate transmission and wholesale electricity markets, has avoided addressing the issue. FERC has historically shied away from environmental considerations in ratemaking.

In the absence of a national mandate to intensify use of renewable energy, many corporations are increasing their own reliance on renewables. Numerous utilities are likewise transitioning toward wind, thermal, and solar power. But renewable energy continues to face challenges, including battery storage, grid expansion and incorporation of renewables into the grid, initial project costs, and regulatory barriers. How are utilities and energy-consuming companies increasing their renewables portfolios while navigating this terrain?

Enhanced oil recovery has generated an immense and growing market for carbon dioxide (CO2), which has uses in manufacturing, medical, and industrial settings. In the next 30 years, these combined end-uses will necessitate a three- to fivefold expansion of existing CO2 transportation infrastructure in the United States. A more flexible, extensive, and integrated CO2 pipeline network is necessary to accommodate this growing demand.

In September 2019, in an article entitled “The Market Has Spoken: Coal Is Dying,” Matt Egan of CNN Business wrote, "President Donald Trump has gutted regulations on the coal industry, falsely claimed that windmills cause cancer and installed a former coal lobbyist to lead the [U.S. Environmental Protection Agency] EPA. In the face of those efforts to rescue coal country, America’s aging fleet of coal-fired plants continues to shrink. New plants are not getting built. Trump’s vow to rip up environmental rules has been overwhelmed by an even more powerful force: the free market.

Two carbon pricing bills were introduced during the 115th Congress. Reps. Carlos Curbelo (R-Fla.) and Brian Fitzpatrick (R-Pa.) introduced the MARKET CHOICE Act during the summer of 2018. Reps. Ted Deutsch (D-Fla.) and Francis Rooney (R-Fla.) introduced the Energy Innovation and Carbon Dividend Act (Energy Innovation Act) in November 2018, and reintroduced it early in the 116th Congress, where it presently has more than 65 cosponsors. By different methods and with different comprehensiveness, both of these bills place a Pigouvian tax on greenhouse gas (GHG) emissions.

The National Highway Transportation Safety Administration (NHTSA) and the U.S. Environmental Protection Agency (EPA) have proposed a new reading of the Energy Policy and Conservation Act of 1975 (EPCA) that governs federal fuel economy standards. The regulations would relax federal greenhouse gas tailpipe standards and fuel economy standards, and preempt emissions standards put in place by California and adopted by other states.

Federal dams have been the focus of major disputes involving application of the Endangered Species Act (ESA), especially its §7 prohibitions on federal actions causing jeopardy to protected species. Operating agencies and project beneficiaries have sought to keep the ESA from restricting dam operations, including by arguing that such operations are non-discretionary and thus exempt. In proposing new ESA implementing rules, the Trump Administration suggested, but did not formally propose, that ongoing federal actions should be considered part of the “environmental baseline” for §7 purposes.

Prof. Richard L. Revesz and Dr. Burcin Unel provide a useful, albeit no longer current, review of electric energy storage in Managing the Future of the Electricity Grid: Energy Storage and Greenhouse Gas Emissions (Managing). The energy storage market has continued its rapid technical and manufacturing evolution. Those advances may reasonably be expected to impact today’s regulatory aims and frameworks, just as prior technological progress influenced administrative goals and processes.

In their paper, Managing the Future of the Electricity Grid: Energy Storage and Greenhouse Gas Emissions, Richard L. Revesz and Burcin Unel of New York University School of Law (NYU team or authors) highlight a critical (and often times contentious) issue that the energy industry is attempting to address: how to quantify and incorporate a societal value of decreased greenhouse gas emissions into the dollar value of incremental energy that is provided to the electric system.

The view that promoting the use of energy storage systems produces environmentally attractive results has been standard in policy circles. Policymakers have been enthusiastic about energy storage systems primarily because of their belief that cheaper and more prevalent storage options could help facilitate the integration of increased renewable energy generation and speed up the transition to a low-carbon grid. This beneficial outcome, however, is not guaranteed.