In Rethinking Grid Governance for the Climate Change Era, Prof. Shelley Welton makes a compelling case for why “U.S. grid governance must be redesigned to accommodate a new era of regulatory priorities that include responding to climate change.” As the operators of regional electricity markets and managers of the transmission grid, Regional Transmission Organizations (RTOs) “must play a pivotal role” in achieving clean electricity goals.

This Comment is based on Tom Hassenboehler’s remarks at the 2021-2022 Environmental Law and Policy Annual Review conference, available at https://www.eli.org/ environmental-law-policy-annual-review/2021-2022-ELPAR-conference.

One central but under-scrutinized way that fossil fuel companies impede the clean energy transition is by essentially running the United States’ electricity grid, writing its rules to favor their own private interests. In most of the country, the electricity grid is managed by Regional Transmission Organizations (RTOs). RTOs are private membership clubs in which incumbent industry members make the rules for electricity markets and the electricity grid through private mini-democracies—with voting privileges reserved for RTO members—under broad regulatory authority.

Proposed oil and gas pipelines have faced a myriad of legal challenges in the past several years. Even where pipeline proponents have prevailed, the cost and delay of protracted litigation has often caused cancellation of pipeline projects. In addition, presidential transitions have led to abrupt reversals of pipeline policies, which courts have often reviewed skeptically.

The Joe Biden Administration has proposed reversing a number of the Donald Trump Administration’s changes to the National Environmental Policy Act (NEPA) regulations by again requiring federal agencies to evaluate the direct, indirect, and cumulative environmental impacts of projects under environmental review. On April 20, 2022, the first phase of those amendments was finalized, and on April 21, the Environmental Law Institute hosted a panel of experts to explore the changes to NEPA implementation, and how they might impact climate change policy and environmental justice.