Even Without New Legislation, Plenty to Do
Author
Alexandra B. Klass - University of Michigan Law School
University of Michigan Law School
Current Issue
Issue
6
Parent Article
Alexandra B. Klass

Under the Federal Power Act, FERC has an obligation to maintain national grid reliability and to ensure “just and reasonable” rates for wholesale electricity sales and transmission. Notably, Congress has not granted FERC authority over the siting and permitting of most interstate transmission lines, as it has with interstate natural gas pipelines, leaving that authority over power lines primarily with the states. Even in the absence of congressional action, however, FERC has powerful tools using its existing statutory authority over rates and reliability to incentivize regulated transmission owners and grid planners to build the large-scale regional “macro-grid” the country needs. This transformation is critical to incorporate the increasing amounts of low-cost wind, solar, and battery resources rapidly being financed and built across the country to replace aging fossil-fuel generation.

To date, FERC has failed to direct regional transmission organizations and regulated utilities to engage in the type of planning needed to support the electric grid of the future, despite its efforts to encourage such actions in Order 1000 in 2011. Integrating new carbon-free resources into the grid and maintaining both reliability and just and reasonable rates falls squarely within FERC’s jurisdiction and is even more urgent than it was in 2011—because of the increasing number of blackouts and brownouts nationwide due to aging grid infrastructure and severe weather events arising from climate change.

Importantly, clean energy is currently the lowest-cost electricity resource even without federal financial support. The massive new influx of funding for carbon-free energy resources and grid expansion under new federal laws only make these resources more financially desirable, prompting utilities across the country to retire coal plants in favor of new wind, solar, and battery resources.

To date, however, two of the four FERC commissioners continue to ignore the reality of today’s energy mix based on arguments that not all states have enacted clean energy policies and thus should not pay for transmission infrastructure to support other states’ policies. Such arguments ignore the fact that renewable power resources are being built not only in states with clean energy standards like California, Minnesota, and New York, but at an even faster pace in states that often proclaim as a policy matter that they oppose a clean energy transition, like Texas, Florida, Iowa, and Oklahoma—which are the top states nationally for installed capacity of wind and/or solar energy. Indeed, during the summer heat waves of 2023, the Texas grid maintained reliability in large part because of the private-sector investment in solar resources and batteries. The grid does not stop and start at state boundaries. FERC is responsible for ensuring a reliable grid nationwide that supports the significant changes to the generation mix across the country.

Beyond its fraught efforts to reach agreement on regional and inter-regional transmission-planning reforms, there are additional actions FERC can take to support a modern and reliable electric grid using existing statutory authority.

FERC can use its authority over return on equity to encourage transmission owners to build regional and inter-regional lines. Setting a higher ROE for such lines will counteract transmission owners’ desire to build local lines that they can include in their rate base and that are exempt from competitive bidding from merchant transmission line companies.

The commission can require regulated utilities and regional transmission organizations to offer expanded demand-response programs. Transmission planning, permitting, and construction can take over a decade to complete, which is too long to keep pace with the hundreds of billions of dollars of investments that must, under federal law, be spent sooner than that, and will rapidly electrify the nation’s building and transportation systems. Demand response is a low-cost bridge solution that FERC can implement now.

FERC should engage with states, regional transmission organizations, and transmission owners to support co-locating transmission lines with other types of existing infrastructure, like the SOO Green line—an underground high-voltage line along railroad rights-of-way to transmit wind power to where it is needed. This is the type of large-scale inter-regional project that must be replicated. But the project has faced obstacles from regional transmission organizations’ interconnection and cost-recovery requirements that were not designed with projects like these in mind.

Using the revived backstop siting authority Congress granted in 2021, FERC can approve important but embattled transmission projects like the New England Clean Energy Connect in Maine and other regional or interregional projects. Doing so will create a template for similar projects and demonstrate to states that FERC is serious about using its enhanced authority.

Finally, FERC needs to recognize energy justice concerns as part of its obligation to ensure just and reasonable rates. Order 1000 requires planning processes that consider needs driven by state or federal requirements. State legislatures and public utility commissions are increasingly recognizing the need to incorporate energy justice into rates and policies. When underserved communities pay more for less reliable electric service, such rates—which include wholesale energy costs within FERC’s jurisdiction—are not just and reasonable.

Alexandra B. Klass is the James G. Degnan Professor of Law at the University of Michigan Law School.

FERC Should Stick to Just Being Boring
Author
Josiah Neeley - R Street Institute
R Street Institute
Current Issue
Issue
6
Parent Article
Josiah Neeley

In the coming years, the nation’s electric grid is going to undergo a transformation, as new technologies and the widespread buildout of clean energy resources necessitate major upgrades and expansions of the electrical transmission system. It’s natural to ask what role America’s main federal electricity regulator, the Federal Energy Regulatory Commission, will play in this metamorphosis.

Some would like to see FERC become a green advocate, actively seeking to push the grid in a more climate-friendly direction. But this would be a mistake. Ironically, FERC will have the greatest impact if it focuses on boring but important technology-neutral market reforms rather than pursuing headline-grabbing but ultimately insignificant sustainability mandates.

FERC is not an environmental regulator of the electrical sector. Nor should it be. Its mission is to ensure that the electric grid functions properly. Its staff has technical experience with matters of electric reliability, wholesale markets, and other related issues. Attempts to give FERC an explicit decarbonization mandate, such as making it consider the emissions impact of particular projects, risks degrading its effectiveness both at its core mission and side goals.

Instead, the best way for FERC to help aid the energy transition is to focus on what it does best. For example, one of the biggest barriers to renewable energy deployment is backlogs in generator interconnection. Zero-carbon resources compose 90 percent of new projects in grid interconnection, totaling about three-quarters of the capacity of all existing power plants. Regulatory delays can slow a project by years. Partly as a result of these delays, only about one quarter of projects reach completion. Reducing interconnection backlogs is not a sexy issue, but it’s an important one and is well within FERC’s wheelhouse.

Under the Biden administration, FERC has taken initial steps toward interconnection reform, but has accomplished a modest amount to date. The administration’s most celebrated action was FERC’s recent Order 2023, which reduces barriers to new generator interconnection. Upon closer inspection, however, the order does not require much more than what all regional grid operators otherwise planned to do. More importantly, it does not address the core problems driving massive interconnection costs and backlogs. This requires deeper reform, including synergies with transmission reform.

Another key barrier to clean energy adoption that is squarely within FERC’s remit to address is transmission congestion. Transmission congestion can prevent electricity from clean energy sources from reaching centers of electrical demand, which raises prices as well as emissions and can even exacerbate reliability problems. Grid-enhancing technologies can dramatically reduce grid congestion and double renewable energy integration in some regions.

Transmission owners, who make money based on their regulated rate base, have a perverse incentive to use their own lines more efficiently. Therefore, this puts FERC in the role of substituting for competitive forces, which it did in requiring use of one grid-enhancing technology in Order 881. Further reforms are hamstrung by the lack of grid congestion transparency in the Southeast, which makes it hard to legally demonstrate the cost savings of these technologies.

A third way FERC can provide a constructive role in grid modernization is by helping to develop better market rules for pricing reliability services. FERC is also undergoing region-specific reforms to rules that credit resources for their reliability value. This is tricky math, as unconventional wind, solar, and storage are imperfect substitutes for conventional thermal power plants. If FERC tilts the scales in favor of thermal power, it could undermine the clean energy transition, but if it over-credits renewables it risks reliability problems that will undoubtedly spur government interventions, delaying the transition.

Modernizing reliability policy also requires addressing historic blind-spots. None is larger than the fact that nearly all consumption is presumed to have the same reliability value. The result is that modest supply shortfalls from, say, an abrupt wind downturn or natural gas pipeline problem result in involuntary, widespread outages. Market-friendly reforms would enable low-value uses of electricity to curtail voluntarily for compensation, while augmenting reliability for high-value uses. Such demand flexibility is an essential ingredient to integrate high levels of renewable energy.

None of these polices explicitly favor clean energy or are based on environmental considerations. But FERC’s emissions impact by implementing its mission robustly should not be understated. In fact, polices such as these can have a greater influence on emissions trajectories than the Inflation Reduction Act and EPA’s newly released power plant regulations. In the end, FERC epitomizes how market-friendly economic policy can be a boon to both our pocketbooks and planet. When it comes to what drives power industry decarbonization, the mundane is the sublime.

Josiah Neeley is a senior fellow in energy policy at the R Street Institute.

The Debate: FERC and Building the Clean Grid
Author
Ken Berlin - Atlantic Council
Rob Gramlich - Grid Strategies LLC
Alexandra B. Klass - University of Michigan Law School
Josiah Neeley - R Street Institute
Atlantic Council
Grid Strategies LLC
University of Michigan Law School
R Street Institute
Current Issue
Issue
6
The Debate: The New Toxic Substances Control Act Is Now Five Years Old: A Report

The transmission grid is the critical superhighway that connects energy supply and demand. But our grid was designed for the power plants of the past—not for the diverse range of resources and technologies of our clean energy future. Over 70 percent of the nation’s transmission infrastructure is more than 25 years old, and in many areas of the country constraints have already been an impediment to renewable power. To meet greenhouse gas reduction goals, we will need to expand electric transmission systems by 60 percent by 2030 and possibly triple the capacity of these systems by 2050. The Inflation Reduction Act has large loan guarantees to spur grid investment, but hundreds of billions more will be eventually needed.

Grid modernization will require the Federal Energy Regulatory Commission, which oversees the interstate transmission of electricity, to take a leadership role in coordinating with industry investors and other agencies as we balance the reliability, cost allocation, and environmental concerns associated with transmission grid expansion. Last summer, FERC adopted new policies that remove many barriers for new solar and wind power suppliers interconnecting with the grid. Meanwhile, a proposed Department of Energy rule would speed upgrades by having DOE manage environmental reviews, which must be completed within two years.

Still, many critical policy issues within FERC’s wheelhouse remain unresolved. These include improving the transmission planning process, coordinating with utilities and with states so new lines can be placed where they are needed. But how should environmental and land impacts be considered and balanced in this process? Who should build new transmission lines, and can expansion of the grid balance the needs of the regional power markets and states? How will the costs of expanding transmission be allocated in a manner that is cost effective and fair? As the transmission grid faces more physical interruptions due to extreme weather events, what is the role of FERC in safeguarding reliability and resilience?

The transmission grid is the critical superhighway that connects energy supply and demand. But our grid was designed for the power plants of the past—not for the diverse range of resources and technologies of our clean energy future. To meet greenhouse gas reduction goals, we will need to expand electric transmission systems by 60 percent by 2030 and possibly triple the capacity of these systems by 2050. Can we preserve the local environment while protecting the planet from the dangers of global climate change?

There Is No Time Left to Lose
Author
Amy L. Edwards - Holland & Knight
Holland & Knight
Current Issue
Issue
6
Parent Article
Amy Edwards

The motto at Climate Week NYC this year was, “We Can. We Will.” The organizers wanted people to understand the urgency. Participants emphasized that we have the tools now to combat climate change. But much needs to be done, and done quickly. The time is now for all hands to combat climate change and drive economic activities toward sustainability.

While the news remains bleak about the number of floods, wildfires, bleached coral reefs, and other extreme weather events around the globe, the news is also positive, with recent legislation aiming toward net-zero in the United States by moving the country quickly in the direction of electrification.

Companies doing business in the European Union have already been subject to enhanced climate disclosure requirements thanks to the Sustainable Finance Disclosure Regulation.

Many are also subject to the EU Taxonomy, which is a tool using a common classification system to stimulate competition toward climate change mitigation and adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems. A fundamental principle of the EU Taxonomy is to do no significant harm to any of the six sustainability objectives.

Lawyers who believe in the need to achieve greater sustainability were heartened by the recent passage of SB 253 in California. The new law will require climate change disclosures by both public and private companies doing business in the state if they have total annual revenues in excess of one billion dollars. Those companies will be required to disclose Scope 1 and Scope 2 emissions under the Greenhouse Gas Protocol by 2026, and Scope 3 emissions by 2027.

The bill will also create a Climate Accountability and Emissions Disclosure Fund, into which the reporting companies must submit an annual fee. So, whether the federal Securities and Exchange Commission adopts a comparable rule or not, disclosure is becoming a reality in the United States.

Lawyers who care about sustainability should also familiarize themselves with climate-conscious contract provisions that have recently been unveiled in the United States by the Chancery Lane Project. The project describes itself as the largest global network of lawyers and business leaders using the power of climate contracting to deliver fast and fair decarbonization.

These types of climate-conscious clauses have already been in use in the United Kingdom. Several of the UK clauses have now been adapted for use under U.S. law. These clauses can be particularly helpful if a company wants to insert climate change questions into its standard due diligence questionnaire, if it wants to add representations and warranties about a target’s climate change plans into a stock purchase agreement or asset purchase agreement, or if it wants to green its supply chain by inserting appropriate language into its construction procurement contracts.

Lawyers should also familiarize themselves with ground-breaking guidance issued earlier this year by the Law Society of England and Wales regarding the obligations of solicitors to address climate change. Solicitors have a duty to disclose to their clients the risks and opportunities presented by climate change. If solicitors do not have this expertise, they are required to refer their clients to other solicitors with the necessary knowledge.

The time is now, and we can all do more to move our clients in the direction of net-zero emissions. In accordance with the American Bar Association’s 2019 Resolution on Climate Change, you should educate your clients on the risks, and the opportunities, associated with climate change.

We have no time to lose.

Within the Cradle of Legal Practice
Author
Achinthi C. Vithanage - Elisabeth Haub School of Law
Elisabeth Haub School of Law
Current Issue
Issue
6
Parent Article
Achinthi Vithanage

Sustainability lawyering is not limited to the purview of the environmental lawyer. It demands the attention of the entire legal profession. Transforming a profession that is built on a powerful and pervasive anthropocentric paradigm—one that is antithetical to sustainable development, relegating environmental protection second to economic development—is an ongoing challenge. Yet legal education shapes and qualifies the profession, producing the very individuals who make, apply, interpret, and change the law. Here lies an opportunity.

UNESCO advocates for education systems based on sustainable development, preparing learners for: crisis handling, resiliency, responsible citizenship, adaptivity, recognizing and solving globally rooted local problems, and creating a sustainable society. By placing sustainability at the core of the mandatory legal curriculum, it can serve as a normative framework for education reform.

The ABA’s 2013 resolution affirming prior commitments to sustainable development and its promotion in law schools provide a foundation to pursue legal education reform, such as the adoption of an accreditation standard mandating sustainability education throughout the legal curriculum. Such changes are, however, slow to bear fruit.

Until then, law schools are well-placed to lead and effect change. John Dernbach’s 2011 article in the Journal of Legal Education highlighted the role of professional education in achieving sustainability. The growth in courses, degrees, centers, and scholarship that he documented more than a decade ago continues to flourish. Today, 195 law schools in the United States seek environmental law program rankings.

Centering sustainability within legal education requires core content to be delivered differently. Imagine: a climate change law professor illuminating the potential and challenges of the torts discipline to address climate change to first-year law students; an environmental justice scholar transforming outdated concepts of property for future application; an animal law professor teaching the limits of constitutional law to protect the environment; a defender of fossil fuel pipeline protesters teaching the practice of criminal law; and a sustainable business law academic explaining the elements of contracts and their potential to produce sustainable development outcomes.

At the Elisabeth Haub School of Law at Pace University, this is a present reality. Within the largest full-time environmental faculty in the country, each professor brings a sustainability perspective to core courses of legal education, exposing most students in their first year of law school to legal thinking and analysis that is conducive to promoting sustainability. With multiple openings for environmental law faculty available in nearly 25 schools around the country, other law programs are gearing up to follow suit. With a legal marketplace demanding graduates with environmental law expertise, the demand for faculty with such expertise was foreseeable.

U.S. law schools need not act alone. The James Cook University in Australia reframed the first-year goals of its LLB degree to integrate sustainability, promoting “an understanding of the law as a sustainable system in its own right” playing a vital role in sustaining society, the economy, and the environment. The Scientific University of the South in Peru made environmental law a core course requirement of all admitted law students. At the University of Exeter in England, a 2021 experiment in integrating climate change and environmental law in the core law curriculum revealed that “law students want their climate change education to be compulsory and cross-programmatic, incorporated naturally with the content of each module.”

If the time is nigh for all lawyers to be sustainability lawyers, it is time for this recognition to pervade our legal education curriculum. American legal education currently lacks a conceptually unifying theme for its core. Sustainability can offer a cohesive narrative that links diverse legal subjects while preparing incoming generations of lawyers from the cradle of legal practice to the grave times ahead.

We Are All Sustainability Lawyers Now
Author
John Dernbach - Widener University
Scott Schang - Wake Forest University
Widener University
Wake Forest University
Current Issue
Issue
6
Cross-Examination

The record-breaking high temperatures of last summer, exposing hundreds of millions of people in the United States and around the world to unsafe levels of heat, have made it even clearer (if additional clarity were required) that more needs to be done to sharply reduce greenhouse gas emissions, adapt to unavoidable climate change, and move toward a sustainable society. A great many Americans—and those living in other countries—have a sense of helplessness about climate change. Among most in the United States, and especially younger people, climate anxiety is now common.

Quite plainly, the environmental statutes so many of us have advocated and drafted, and now help implement, counsel clients about, and litigate, are no longer enough. We are in this and other global predicaments because society continues to put economic development ahead of environmental protection. The result, says Renato Valencia, a forest ecologist in Ecuador who studies oil drilling in the Amazon, is that “nature always loses.” And it is not just nature that loses; environmental degradation also hurts people who are dependent on the affected environment, as well as future generations.

Encouragingly, Americans largely agree that something needs to be done. Nearly 7 in 10 favor the country taking steps to become carbon-neutral by 2050. The critical and essential question for all Americans is, What can we do that will actually matter? The good news is that there is a lot we can do, but it comes with a catch. We—meaning all of us, not just the government—need to do it. And again, Americans agree: two-thirds believe the job should be done not just by government, but by companies and private citizens alike.

On paper, at least, all countries now support sustainable development (or sustainability for short)—a decisionmaking framework first endorsed by the United States and other countries at the U.N. Conference on Environment and Development in Rio de Janeiro in 1992. As the name of the conference suggests, this decisionmaking framework integrates and reconciles human development—not only economic development but also social well-being, including eradication of extreme poverty, hunger, and gender and racial discrimination—with environmental protection. Its ultimate aim, in the words of the Rio Declaration, the statement of 27 sustainable development principles adopted at the conference, is that humans lead “a healthy and productive life in harmony with nature.” Other key principles stated in the declaration include intergenerational equity and a precautionary approach to environmental protection when there is significant scientific uncertainty. And all of this is built on a foundation of national security. But the Rio summit was not just about defining sustainable development; the United States and other countries agreed to an ambitious action plan for achieving sustainability within their boundaries, known as Agenda 21.

As this article explains, sustainable development grows out of environmental and natural resources law, but it is different in many ways. In our experience, American environmental lawyers, like most citizens, see sustainable development through the lens of environmental law and the overall policy it represents, and thus miss the transformative potential of this framework. Sustainable development also does not have the kind of heft or visibility environmental law does because so much of it comes from international conferences and agreements that are not considered “law.”

If the United States remains stuck in seeing sustainability largely or entirely through the lens of environmental law, or even environmental and energy law, we are not going to get the environmental protection we need. Nor are we going to get the kind of economic development, social wellbeing, and peace and security that will be essential in the decades to come. While other countries, such as many in Europe, as well as Japan, closely focus on coordinating across environmental, economic, and social goals, our own myopia will likely put the United States at a long-term competitive disadvantage.

What needs to be done to achieve a sustainable America? This article describes the many specific recommendations for action published by the Environmental Law Institute over the three decades since the Rio summit. They make clear that while all of us have a role to play in achieving a sustainable society, regardless of where we live, what kind of work we do, and whatever our skills and abilities, environmental lawyers in particular need to reimagine ourselves as sustainability lawyers.

Sustainable development grew out of environmental law. Attendees at the seminal 1969 Airlie House conference that helped create the field of environmental law (and the Environmental Law Institute as well as the Environmental Law Reporter) recognized “the need for legal reform based on far-reaching changes in social, economic, and political thought” to achieve “a world made livable for future generations,” according to attendees Malcolm Baldwin and James Page Jr.

Congress adopted what amounts to a national sustainable development policy two months after Airlie House. The National Environmental Policy Act of 1969 states that it is the “continuing policy of the federal government, in cooperation with state and local governments, and other concerned public and private organizations . . . to create and maintain conditions under which man and nature can exist in productive harmony, and fulfill the social, economic, and other requirements of present and future generations of Americans.” This policy, which is still in place, captures key elements of sustainable development.

NEPA also requires federal agencies to prepare an environmental impact statement prior to conducting major federal actions that may significantly affect the quality of the human environment. Prior to this law, federal agencies more or less ignored environmental impacts in their decisionmaking; after NEPA, they had to understand and consider them. This is a key form of integration in decisionmaking, and the Rio Declaration endorses it.

Public participation, which is built into NEPA and other environmental laws, can also further integrated decisionmaking. Under these statutes, the public gets notice of permit applications and proposed projects, gets an opportunity to comment on them, and can file a citizen suit to enforce the law in appropriate circumstances. This has helped to open the traditional binary government-industry relationship to include additional perspectives, particularly on the environmental and social impacts of a proposal. In addition, it invites other federal agencies as well as tribal and state governments to the table to share their insights and coordinate.

More basically, in spite of its name, the objectives of environmental law are not just environmental protection. As Celia Campbell-Mohn wrote in ELI’s 1993 treatise Sustainable Environmental Law: Integrating Natural Resource and Pollution Abatement Law From Resources to Recovery, the most important objective of environmental law is protection of human health. Other objectives, she explained, include efficiency, national security, preservation for aesthetics or recreation, sustainability, intergenerational equity, community stability, biocentrism, and pursuit of scientific knowledge and technology. Environmental justice is also a key goal. When we use this list to teach environmental law, the students invariably see social, economic, environmental, and even security dimensions in each of these objectives.

While there are elements of sustainability in environmental law, sustainable development is quite different. Most obviously, sustainable development is a normative framework for changing law and policy; environmental law is actual law. And unlike NEPA, sustainability is not just considering the environment as part of the decisionmaking process; the environment must actually be protected. Sustainable development differs from environmental law in a variety of additional ways.

First, and most fundamentally, sustainable development would modify the law of development by making it both environmentally and socially sustainable. This body of law may seem relevant only to developing countries, but this is incorrect. The law of development, in the United States and the rest of the world, is the law that supports economic development—including tax law; financing law; natural resources law; direct and indirect subsidies; zoning; and the laws enabling the wide variety of financial assistance provided by federal, state, and local governments for various development projects. The law of development is not recognized as a field in the United States. There is no text or treatise that collects or analyzes the U.S. law of development. But economic development agencies throughout the country, and the lawyers who represent clients interested in their assistance, know it well.

Development, we should add, also has a distinct social or human rights component aimed at fostering human dignity. Indeed, the famous Brundtland Commission definition of sustainability—"development that meets the needs of the present without compromising the ability of future generations to meet their own needs"—is based on that understanding.

Fossil fuel subsidies are a commonly cited example of unsustainable development. The alleged conflict between jobs and the environment, J. William Futrell, then ELI’s president, wrote in 2004, tends to “arise in sunset industries whose activities are economically viable only because of indirect or direct government subsidies that undermine sustainability.” In 2009, ELI published a ground-breaking study revealing that over 70 percent of federal energy subsidies from 2002-08 had gone to fossil fuels.

Sustainable Environmental Law was the first serious effort in the United States to move sustainable development from principles to law. Edited by Campbell-Mohn, Futrell, and Barry Breen, and published only a year after the Rio Summit, it examined holistically the law related to many different kinds of economic activity. There are separate chapters on such topics as timber; agriculture; fisheries; solar, wind, and geothermal energy; energy efficiency; coal; metals; and chemicals. The treatise examines each of these through their entire life cycle—from “resource to recovery.” The laws discussed in the three stages of the life cycle are resource extraction, resource use, and resource recovery.

“When the various laws that affect each industry throughout the cycle are analyzed in this way,” Futrell wrote later, “it becomes readily apparent that our laws governing development and our laws governing the environment often act in conflict.” While environmental laws were attempting to reduce environmental degradation, the book’s authors found, other laws were directed at exploiting these resources as rapidly as possible. The treatise exposed on a systematic basis what Futrell described as “the vast structures of cowboy economics, policies, and laws that militate for rapid exploitation and wasteful use of resources.” Changing these laws, the treatise’s authors found, was essential to creating the law of sustainable development.

And instead of resource recovery, the third stage, the book’s authors saw mostly waste disposal. In addition, they wrote, “No law currently addresses all three phases together.” The book’s focus on specific economic sectors is a significant contribution to what we now describe as the circular economy.

In his speeches and other writings, Futrell cautioned against getting hung up on the definition of sustainable development, which he likened to getting hung up on the definition of justice. Rather, he said, “The sense of injustice is the foundation of crafting just laws. In a similar fashion, sustainable development law would prevent or remedy unsustainable behavior.” Of course, many are uncomfortable with, and even averse to, the “development” part of sustainable development, principally because of development’s history of anti-environmental effects. But ignoring the law of unsustainable development simply perpetuates it.

Rewriting development laws to discourage unsustainable activities is one thing; encouraging sustainable development is another. The Inflation Reduction Act of 2022, perhaps the most significant piece of climate legislation thus far adopted in the United States, provides an example. Instead of requiring increased use of renewable electricity, it provides $369 million in tax and other incentives for renewables. By making clean energy cheaper, it will encourage more rapid expansion of renewable electricity as well as the renewable energy industry. It is sustainable development legislation.

Sustainability also addresses the wide variety of issues that, for whatever reason, are not addressed by environmental law. It does so, in large part, through the use of private law. Sustainable development principles are being translated into private law through certification programs (green building, sustainable forestry), private supply chain efforts, and the like. While these private laws account for a vast amount of the sustainable development work that is now being done, they are largely invisible to the public and others who see environmental law only as public law. Private law also has a critical advantage over public law: it can be adopted and implemented even when polarized politics prevent the adoption of public law.

Private law also brings with it an embrace of sound management principles, such as setting goals, deciding upon metrics to measure progress toward these goals, and then executing and reporting against them. As described below, sustainable development calls for using explicit goals and metrics to help measure progress or backsliding. Interestingly, when ELI in 2015 surveyed environmental law reinvention efforts, it found that adoption of such management techniques was a common recommendation for the improvement of environmental law.

In addition, as noted earlier, sustainable development has a social dimension that overlaps with, but is distinct from, environmental protection. Sustainable development has included an anti-poverty agenda from the beginning. The Rio Declaration describes “the essential task of eradicating poverty as an indispensable requirement for sustainable development.”

The social dimension is most explicitly stated in the 17 Sustainable Development Goals adopted by the UN in 2015—notably, with the support and approval of the United States. Goals 6 (“Clean Water and Sanitation”), 13 (“Climate Action”), and 15 “(Life on Land”) are among those with a recognizable environmental dimension (though not solely environmental). By contrast, Goals 1 (“No Poverty”), 2 (“Zero Hunger”), and 10 (“Reduced Inequalities”) are distinctly and primarily (though not entirely) social. And Goals 16 (“Peace, Justice, and Strong Institutions”) and 17 (“Partnerships for the Goals”) are foundational to all of the goals. As U.S. environmental laws largely focus on protecting human health, it is critical that they be accompanied by efforts to assure human well-being in other ways. These goals, like economic, environmental, and social prosperity, are interdependent—achievement of one requires achievement of all.

A final key difference is the role of citizens and other stakeholders. Environmental law authorizes public participation in governmental decisions, which implies the primacy of government in its implementation. Governments are important to sustainable development as well, but the framework emphasizes the importance of all citizens and stakeholders. They are not simply allowed to participate in governmental decisions; they (we) are asked to make their (our) own sustainability decisions.

The Rio Summit and subsequent international conferences have produced action plans for sustainable development. The emphasis on action led one of us (Dernbach), back in 1997, to begin what has become a series of five comprehensive reviews of U.S. sustainable development efforts since Rio, all published by ELI. These reviews address two questions: What progress is the United States making in its sustainable development commitments, and what more needs to be done? This series is the only effort of its kind in this country.

The 1997 review, conducted with the help of Widener law seminar students, showed isolated examples of individual, municipal, state, and corporate leadership on sustainable development across a broad range of fields, but nothing systematic. This review was published as an article in ELR-The Environmental Law Reporter; the other four are books written by experts from a wide range of disciplines and backgrounds and published by ELI Press.

The first two books showed growing if modest progress. Stumbling Toward Sustainability was issued on the 10th anniversary of the Rio Summit. It showed growing but limited leadership by some individuals and organizations “in every area of American life.” The next book, Agenda for a Sustainable America, was published after the 15-year anniversary. It identified significant and accelerating progress in six sectors: local governance, brownfields redevelopment, business and industry, higher education, K-12 education, and religion and ethics. Each of these books made recommendations for future action.

The third book, Acting as if Tomorrow Matters: Accelerating the Transition to Sustainability, was published on the 20-year anniversary of the Rio Summit. Instead of focusing on specific recommendations for specific topics, as the two previous books had, this one was focused thematically on how to accelerate progress on sustainable development, and at a larger scale, as discussed in more detail below.

The SDGs were adopted three years later, in 2015, and were intended to accelerate the transition to sustainability by translating its broad agenda into specific objectives to be achieved by a specific date (mostly 2030). The 17 goals include 169 specific targets. For example, Goal 11 (“Sustainable Cities and Communities”) is to be implemented by achieving 10 targets. Two of these are ensuring “access for all to adequate, safe, and affordable housing and basic services,” and providing “access to safe, affordable, accessible, and sustainable transport systems for all.” There are also indicators to measure the achievement of these goals and targets. The SDGs do not change the centrality of integrated decisionmaking to sustainable development; the basic idea is that progress on any given goal or target should also advance progress on other goals or targets across the social, environmental, and economic spheres.

The fourth and most recent book was published this year. Governing for Sustainability, which both of us edited, reviews U.S. progress (or the lack of it) based on the SDGs. While the United States continues to make some progress toward sustainability, the book concludes, there have been many setbacks (Covid-19, economic recessions, the Trump administration, and the Russian invasion of Ukraine) and much remains to be done.

The book makes some 500 recommendations for federal, state, and local governments, as well as nongovernmental organizations and the private sector. In doing so, it translates the targets and indicators in the SDGs to an agenda that can usefully and constructively be applied in the United States. An index of recommendations organized by actor allows advocates and policymakers to see all relevant recommendations in one place, regardless of the chapter in which they were made.

This U.S. agenda provides a basis for accelerating the transition to a sustainable society. Achieving that transition is often described as a journey, but the rapid pace of unsustainable development, as exemplified by growing climate disruption, makes another analogy more appropriate. The transition is more like a car chase in a James Bond film; it is not enough to go fast; we must go much faster than the car we are chasing (unsustainable development and its effects). Accelerating our speed to some degree isn’t good enough if we can’t catch that car. Sadly, there is considerable evidence that climate and other conditions are getting worse faster than we are acting. In the language of a journey, the destination is getting farther away every year.

How do we accelerate the transition to a sustainable society? There is no single answer, no silver bullet. But a suite of answers emerge from the Sustainable Development Goals themselves, the U.S. experience with sustainable development over the past several decades, and the ideas of the contributing authors to this most recent book.

The SDGs, if taken seriously, can accelerate the transition. In a variety of contexts, targets and timetables are extremely helpful tools for accomplishing change at an accelerated rate. Specific targets and timetables are particularly important for sustainable development because of the wide variety of public and private decisionmakers whose activities need to be coordinated, or at least be consistent. Political and other leaders come and go, but properly established targets and timetables remain in place.

The recommendations in this book further each of the four approaches for accelerating the transition described in 2012.

First, when more-sustainable options are more attractive than others—whether because they are cheaper, work better, taste better, or achieve greater benefits—these options are more likely to be widely adopted. Green building, locally sourced food, energy efficiency, and renewable energy are examples. These more attractive options also include new laws and decisionmaking tools. The legal and policy tools provided in this book are intended to achieve progress toward more than one goal, which means that they should have multiple benefits.

Second, the 2012 book argued for the use of a greater variety of legal and policy tools, including economic development, and repeal of laws that foster unsustainable development. Governing for Sustainability makes that point abundantly clear, recommending changes in every major category of public law, including not only environment and energy law but laws concerning civil rights, criminal justice, and food assistance. It also addresses the basic laws needed for effective governance.

Third, to accelerate the transition to sustainability, public and private governance must be visionary (because it has a sustainable society as its objective) and pragmatic (because it is grounded in political reality). The legal and policy changes recommended in the 2012 book required such governance. The SDGs could provide a foundation for that by setting out an agenda that is independent of political parties and that does not vary from one election cycle to the next, in no small part because they focus on improving quality of life for all.

Many multinational corporations already weave the SDGs into their own sustainability efforts, which is both encouraging and a warning to American environmental lawyers ignorant of the SDGs. Of course, there are strong headwinds against integrating this approach into public governance. These include lack of political leadership, political polarization, and a focus on short-term problems. None of these obstacles is insurmountable. The recommendations in this book, and using them in a concerted way to undertake and track progress toward the SDGs, can help in bypassing or overcoming them.

So can the fourth and final approach: a stronger and more vibrant American sustainability movement. This movement exists in the great many local, state, organizational, and sector-specific sustainability activities that are already occurring. Los Angeles, Houston, and Baltimore are working to achieve the SDGs. The state of Hawaii has started the Aloha+ Challenge, a statewide public and private effort to achieve the SDGs by 2030. Many American businesses are participating in achievement of the SDGs, including through the UN Global Compact, a voluntary nonprofit organization that describes itself as the “world’s largest corporate sustainability initiative.” The insights and energy of corporate leaders have the potential to dramatically scale the sustainability movement within the United States.

In the introduction to Law and the Environment, the compiled works from the 1969 Airlie House conference, Baldwin and Page note that “the magnetism of the environmental revolution has given many lawyers a soul” in what was often a soul-less profession. Today, we live in a time of diminishing hope for the future and need an updated clarion call for direction. Sustainable development, including the SDGs, provides an alternative and more hopeful vision of what the future could bring, and that future begins with each of us.

The environmental law profession has, in many ways, been building toward this moment for decades. The “right” place to start is where we are, with what we are doing, and with the particular problems or tasks in front of us. The works described in this article provide a point of departure for how to do these things to achieve a more sustainable future for all.

CROSS-EXAMINATION The environmental laws so many of us have advocated for and drafted, and now help implement, counsel clients about, and litigate, are no longer enough.

Funding Can Catalyze Collaboration
Author
Hilary Jacobs - Beveridge & Diamond
Beveridge & Diamond
Current Issue
Issue
5
Parent Article
Hilary Jacobs

With the passage of the Inflation Reduction Act and the Infrastructure Investment and Jobs Act, the federal government has made billions of dollars available to reduce greenhouse gas emissions and transition to a renewable energy economy. In particular, the IRA directs $40 billion toward disadvantaged communities and communities with environmental justice concerns.

The White House Council on Environmental Quality defines “disadvantaged” as any census tract that experiences certain socioeconomic and environmental, climate, or other burdens. This definition is designed to capture those communities that historically have experienced not only excessive pollution but also under-investment in critical resources such as housing, transportation, water and wastewater, and health care—under-investment that can often be traced back to redlining.

Parts of the two new laws require agencies to prioritize projects in disadvantaged communities. Agencies in turn have begun to require grantees to collaborate with a wide range of stakeholders—including but not limited to communities and businesses—to carry out a grant’s requirements. For instance, the Department of Energy requires many funding applicants to submit a Community Benefits Plan on engaging the community, investing in the American workforce, advising diversity, equity, inclusion, and accessibility, and supporting the administration’s Justice40 Initiative directing 40 percent of overall benefits from federal investments to disadvantaged communities.

CBPs typically require applicants to engage a broad set of stakeholders in project planning, including labor, local businesses, local and tribal governments, and community-based organizations. Applicants must involve local interests in decisions surrounding how a project will be sited, designed, and operated. DOE encourages applicants to enter into community benefits agreements, community workforce agreements, and pacts with local stakeholders to ensure the distribution of community and economic benefits, including access to quality jobs and mitigation of any adverse project impacts. Once an applicant is selected, its CBP will become a contractual obligation of the funding recipient.

For its part, EPA requires applicants for certain IRA and IIJA funding to undertake similar multi-sector engagement efforts. The agency’s long-standing Environmental Justice Collaborative Problem-Solving Agreement Program, which received additional funding under the IRA, anticipates awarding $30 million through cooperative agreements for projects that support community-based nonprofit organizations in their collaboration with a broad set of stakeholders to develop solutions addressing environmental or public health issues in disadvantaged communities. Examples of projects EJCPS has funded include brownfield remediation, trash cleanup, reduction of lead exposure, and water quality monitoring.

Federal funding provides agencies with a unique opportunity to require that grantees conduct robust engagement with potentially affected stakeholders about project impacts, engagement that can lead to formal partnerships, memorialized by binding agreements between grantees and communities, and grantees and the government. These collaborations can enable businesses and industry to undertake performance-enhancing projects supported in part by federal dollars, while simultaneously addressing environmental justice concerns and advancing community interests.

In the absence of sweeping federal environmental justice legislation, and in the presence of legal challenges to government programs designed to address historic injustices, federal grants have a potential to catalyze real change for communities. Though grant periods vary, they can last upward of 12 years, meaning these changes can have real staying power, outlasting political shifts and changes in administrations.

Energy Transition Will Confront Legal and Policy Impediments
Author
Ethan Shenkman - Arnold & Porter
Arnold & Porter
Current Issue
Issue
5
Ethan Shenkman

The Inflation Reduction Act is potentially the most impactful climate legislation ever enacted, but it only addresses two legs of a three-legged stool. The IRA addresses technology—spurring development of a wide range of clean energy innovations—and economics, significantly lowering costs. What it doesn’t address are the new legal frameworks that must be developed if the energy transition is to become a reality.

The sheer scale of the build-out required for the many needed types of clean energy projects, the magnitude of the infrastructure and supply chains necessary to support them, and the speed with which this transformation must be accomplished is difficult to fathom. Experts say that to reach net-zero carbon emissions, new utility-scale wind and solar generation will have to be sited, permitted, and constructed across a land area equivalent to several large midwestern states. To deliver that power to where it’s needed, studies show that transmission will have to increase 25 percent over a decade. According to the Prince-ton-led REPEAT Project, if we can’t build new transmission at a fast enough pace, roughly 80 percent of the emissions reductions expected from the IRA might not happen.

Meanwhile, the need for exponential growth in carbon capture from emissions and direct air capture will require rapid expansion in the number of capture facilities, CO2 transportation channels, and sequestration sites. With sequestration taking place in areas of deep geologic storage around the country, including in the Gulf of Mexico, tens of thousands of miles of high-capacity trunk pipelines and over 100,000 miles of spur pipelines will be needed to deliver CO2 to permanent storage locations.

And if the hydrogen economy is going to take hold—which many believe is necessary to help the transportation, industrial, and power sectors transition from fossil fuels—the country will need to build large-scale hydrogen hubs with an abundance of new infrastructure for storage and distribution.

Mining operations will inevitably need to be expanded to meet rapidly rising demand for critical minerals like lithium, nickel, cobalt, and rare earth elements used in the production of batteries, magnets, catalysts, and energy storage systems. Some forecasts predict that graphite production will need to increase by almost 1,000 percent to meet the need for electric vehicle batteries. The International Energy Agency warns that “demand for critical minerals—in most cases well above anything seen previously—poses huge questions about the availability and reliability of supply.”

Do we have the legal frameworks in place to build big enough and fast enough? A growing chorus of experts says, “no.” In their provocative article, “The Greens’ Dilemma,” J.B. Ruhl and James Salzman, professors of environmental law at Vanderbilt and UCLA, summarize the paradox confronting environmental practitioners: “The massive scale of new climate infrastructure urgently needed to meet our nation’s greenhouse gas emissions reduction policy goals will face a substantial obstacle in the form of existing federal, state, and local environmental laws.”

As New York Times columnist Ezra Klein recently observed, proponents of climate action “wanted more money for clean energy and more ambitious targets for phasing out fossil fuels and got them. Now that new energy system needs to be built, and fast.” And stakeholders are “nowhere near agreement on how to do that.”

Government officials agree. California Governor Gavin Newsom recently remarked, “You can’t be serious about climate and the environment without reforming permitting and procurement in this state.” John Podesta, who is overseeing implementation of the IRA for the Biden administration, put it bluntly: “We got so good at stopping projects that we forgot how to build things in America.” Meanwhile, the sclerotic permitting process and other legal challenges are blocking hundreds of renewable-energy projects, according to the Sabin Center for Climate Change Law.

How do we move forward? Professors Ruhl and Salzman call the question: “How can environmental law be reformed to facilitate building climate infrastructure faster without unduly sacrificing its core progressive goals of environmental conservation, distributional equity, and public participation?”

That question implies others. What legal reforms are needed? What are the societal implications of this energy and infrastructure transformation? How do we ensure that the transition will be equitable for all segments of society? And what is the role of environmental and energy transition practitioners in helping us get there?

This November, the Environmental Law Institute and Georgetown Climate Center will be convening a diverse array of experts to discuss these fundamental questions at the “Energy Transition Conference” in Washington, D.C. Stay tuned for further details.

Energy Transition Will Confront Legal and Policy Impediments.

Where Statutory Language Turns Up Missing, Don’t Invoke Science
Author
Craig M. Pease - Former Law School Professor
Former Law School Professor
Current Issue
Issue
5
Craig M. Pease

We have utterly destroyed the Great Black Swamp, formerly covering much of northwestern Ohio. We have channeled the Los Angeles, Sacramento, Missouri, and Mississippi, so they no longer meander. We have turned wet soils into farmland by draining over 50 million acres. Wetlands destruction is everywhere and ongoing, and it harms not just human communities, but also the fascinating flora and fauna of wetlands—the horned bladderwort, in Cooter’s Bog in Louisiana, is a predatory plant that captures insects with bladders on its roots.

The majority opinion in Sackett vs. EPA from June past will greatly restrict the Clean Water Act jurisdiction over wetlands, exacerbating their already dire circumstances. While I adamantly endorse broad and effective wetlands protection, I simultaneously see excellent reasons why the Supreme Court in Sackett ignored the entreaties of scientific societies, the federal government, and environmental NGOs to craft a legal test grounded in science for Clean Water Act jurisdiction over wetlands.

The Sackett dispute turned on the scope and application of the statutory terms “navigable waters,” “waters of the United States,” and “wetlands adjacent.” The amicus brief filed by 12 science organizations, including the prominent Ecological Society of America, states “the legal and policy decisions at issue in this case must be informed by the best available science.”

So too, the government. While Sackett was pending, EPA promulgated the rule titled “Revised Definition of ‘Waters of the United States.’” In a Sackett brief the government wrote “the proposed rule . . . reflects the agencies’ current assessment of the best available scientific evidence.” In turn, that rule is grounded in two lengthy government-sponsored reviews of wetlands scientific literature, the 2023 Technical Support Document for the Final Rule, and the 2015 Connectivity Report.

Yet the majority opinion in Sackett, and the three minority concurrences, barely mention science. Indeed, the majority opinion states “the CWA does not define the EPA’s jurisdiction based on ecological importance,” and elsewhere it dismisses Justice Kennedy’s significant-nexus test from Rapanos that had been adopted by the agencies, critiquing their decisions as “fact-intensive ‘significant-nexus’ determinations that turned on a lengthy list of hydrological and ecological factors.”

Compare the role of science and technology in the portion of the CWA at dispute in Sackett vs. their role in CWA permitting under the National Pollutant Discharge Elimination System. The statutory provisions at issue in Sackett make no explicit reference to science or technology, much less to “best available science.” The only weak and tenuous statutory connection to science is that the overarching CWA goal—“to restore and maintain the chemical, physical, and biological integrity of the nation’s waters”—somehow allows jurisdiction to be determined by scientific factors.

By contrast, the NPDES permitting scheme is explicitly grounded in science and technology, making statutory references to “best conventional pollutant control technology,” “best practicable control technology,” and “water quality standard.” In NPDES permitting, as in Endangered Species Act listing decisions, and in Clean Air Act regulation, there is an explicit statutory reference to science or technology, a legal standard for science or technology to enter agency decisionmaking, and a process for it to do so.

Sackett is a case about jurisdiction—about drawing lines on a map and deciding which legal and political entities exert control within those boundaries. In that regard, Sackett might profitably be compared to congressional redistricting, something broadly understood to be primarily political, albeit with limited legal review. Science only has a restricted role, for example in the redistricting process, predicting racial composition of proposed alternatives.

CWA jurisdictional determinations are inherently legal and political decisions. There is a limited role for science; by analogy to redistricting, science might predict the consequences of various alternative ways to define CWA jurisdiction. But that is not what EPA and the Army Corps of Engineers have tried to do. Rather, their entire administrative apparatus for making CWA jurisdictional determinations was inextricably interwoven with science.

Science best enters environmental decisionmaking when the line between science versus law, politics, and policy is sharp, and the role of science is limited. Best that science sticks to science. And best that inherently political and legal decisions be explicitly recognized as such, and not be camouflaged under the rubric of science.

Where Statutory Language Turns Up Missing, Don’t Invoke Science.

Policy Implications of Overshooting Global Temperature Increase Goals
Author
Joseph E. Aldy - Harvard Kennedy School
Harvard Kennedy School
Current Issue
Issue
5
Joseph E. Aldy

The summer of 2023 witnessed numerous declarations of Earth’s hottest day on record. And yet, this summer may go down as one of the coolest for the balance of this century. As I noted in the last issue, efforts to decarbonize the global economy will likely be insufficient to meet the Paris Agreement goals to hold temperature increases well below 2°C and to aspire to limit warming to 1.5°C. Overshooting the goals will have important policy implications.

The warming planet will increase human suffering. Climate change has extended and amplified forest fire seasons. This year, Canadian forest fires caused New York and other major cities to experience levels of air pollution they had last seen in the 1970s. Long-lasting heat domes imposed extreme temperature stresses over large populations in the United States, India, and elsewhere. The unprecedented flooding in Pakistan last year—displacing tens of millions of people —reflected again how climate change exacerbates natural disaster risks.

Building on the growing confidence in attribution science—identifying and assessing how a warming planet causes these extreme events—more and more countries are calling for compensation for their climate change-related “loss and damage.” This issue received considerable attention at the 2022 UN climate talks in Sharm El-Sheikh, Egypt —see my January-February column. Loss and damage will again be a key topic at this year’s climate talks in the United Arab Emirates, where governments will seek agreement on who will pay into a compensation fund and who will receive payouts and for what kinds of losses.

The changing climate will induce many people to move, both within and across national borders. In some least-developed countries, heat and precipitation stress have driven farmers to relocate near cities. Some research suggests that climate change can exacerbate conflict, which in turn forces migration. In cases where migration may reflect existential threats—such as entire island states escaping rising waters—then the movement raises questions of sovereignty and identity. Large-scale migration may result in economic and social conflicts, especially given some of the recent political opposition to immigration in the United States and Western Europe. Planning for migration may enable more people to avoid the worst suffering of climate change and at lower costs.

As the planet overshoots our temperature goals, there appear to be only two types of strategies for mitigating climate change risks—strategies that could reduce temperatures during this century. One strategy, carbon dioxide removal, requires the direct air capture of CO2 and subsequent storage of the captured gas deep underground, in deep ocean waters, or in solid materials.

Carbon dioxide removal could lower temperatures if it is scaled to a level, when combined with other efforts to decarbonize the global economy, that results in more carbon dioxide removed from the atmosphere than added through human activities. With initial commercial-size projects currently in the deployment stage, we will learn more about the potential economics and scale of this technological strategy. It is unlikely, however, that we could scale this up to realize a net-negative flow of greenhouse gases to the atmosphere, until we have nearly decarbonized the entire global economy later this century.

The other strategy, solar geoengineering, relies on the injection of small particles into the upper atmosphere to block a small fraction of incoming sunlight. While carbon dioxide removal aims to reduce the stock of atmospheric carbon dioxide to lower temperatures, solar geoengineering aims to lower temperatures for a given level of carbon dioxide in the atmosphere. Preliminary estimates suggest that launching solar geoengineering interventions—flying high-altitude airplanes to inject particles into the air—are technologically feasible at fairly modest costs. The prospect that any one country could undertake solar geoengineering has raised questions about the need for international governance.

These various options have drawn increased policy attention. The White House Office of Science and Technology Policy recently issued a congressionally mandated research plan and research governance framework for solar geoengineering. The European Commission emphasized the importance of understanding the risks associated with solar geoengineering, advancing its governance through a recent statement on climate change and national security. The Climate Overshoot Commission, composed of former heads of state, ministers, and environmental leaders, will issue recommendations on strategies to help manage the overshoot of the Paris temperature goals. Expect greater debate about the role of the public and private sectors in advancing these efforts to manage climate change risks and complement decarbonization efforts.

Policy Implications of Overshooting Global Temperature Increase Goals.