Accelerating Clean Energy: A Road Map for Regulatory Reform

• Date: 03 February 2024
• Author: Emily Hutchins.

Copyright © 2024 Environmental Law Institute®, Washington, DC. Reprinted with permission from ELR®, http://www.eli.org, 1-800-433-5120. A R T I C L E S ACCELERATING CLEAN ENERGY: A ROAD MAP FOR REGULATORY REFORM by Emily Hutchins Emily Hutchins is a 2023 graduate of the University of Miami School of Law. SUMMAR Y This Article analyzes domestic hurdles to renewable energy development, and explores effective regulatory strategies at both the national and state levels to overcome barriers to clean energy transition. Projections indicate that the United States will need to triple its transmission grid capacity by 2050 to achieve decarbonization at the scale promised under the Paris Agreement. The transition faces major obstacles in permitting and siting, with limited transmission access and complex processes effectively obstructing the transition. This Article proposes a comprehensive set of policy choices at all levels of government, drawing inspiration from successful case studies domestically and internationally. By examining the European Union’s approach as a case study, it proposes that the United States adopt comprehensive national policies to tackle the challenges posed by a decentralized permitting system in areas where it retains authority. For state-level challenges, it highlights successfully implemented state-level policies from California, Illinois, and Wisconsin that can be applied more widely to streamline renewable development. Domestically and internationally, governments are grappling with how to adapt to the changing climate while the international economy remains heavily dependent on fossil fuels, a primary source of carbon dioxide (CO 2 ). 1 his Article assesses the regulatory mechanisms in place for facilitating the switch to an electriied renewable energy grid, including governmental approaches from the European Union (EU) and United States. hese successful approaches illustrate policy considerations that balance the need for a dramatic energy grid overhaul with the need for environmental oversight and community involvement. Speciically, I aim to provide alternative policies to address current regulatory barriers to siting and permitting for both transmission and renewable generation. Due to wind power’s role as the largest source of renewable energy generation in the United States, the Article focuses primarily on challenges facing the wind sector and the applicability of wind-related policies to other renew- 1. See Center for Climate and Energy Solutions, Global Emissions , https:// www.c2es.org/content/international-emissions/ (last visited Dec. 2, 2023) (CO 2 accounts for 76% of greenhouse gas emissions, making it a focus point for emission-reduction targets). ables facing similar hurdles. 2 he global potential for wind energy exceeds current electricity production, and potential exists in most regions of the world to enable signiicant wind energy deployment, making it an invaluable resource in combating climate change. 3 Many regions have strong wind speeds, but the best locations for generating wind power tend to be remote areas. 4 his reality necessitates connection between areas of generation and consumption. he pursuit of national decarbonization goals faces two intertwined challenges to energy generation that demand regulatory changes in siting processes for both transmission and generation facilities. Siting generally refers to the selection of suitable geographic locations for a project, while permitting involves the necessary approvals and review for project installation at a site. 5 Together, these complex processes have signiicantly hindered grid expansion, impact- 2. See American Clean Power, Wind Power Facts , https://cleanpower.org/facts/ wind-power/ (last visited Dec. 2, 2023). 3. United Nations, Climate Action: What Is Renewable Energy? , https://www. un.org/en/climatechange/what-is-renewable-energy? (last visited Dec. 2, 2023). 4. Id . 5. Id . 54 ELR 10114 ENVIRONMENTAL LAW REPORTER 2-2024 Copyright © 2024 Environmental Law Institute®, Washington, DC. Reprinted with permission from ELR®, http://www.eli.org, 1-800-433-5120. ing the connection of renewable energy projects facing similar siting and permitting obstacles. 6 First, the United States must rapidly expand transmission access to facilitate the integration of new renewable projects into the existing energy grid. 7 In the U.S., high-voltage power lines are responsible for transmitting electricity over long distances to deliver energy to localized distribution systems. 8 he expansion of additional long-distance transmission is necessary to meet growing electricity demands and to facilitate the integration of new renewable projects to the grid. 9 Upgrading the transmission system can ease congestion as electricity demand rises while simultaneously allowing the connection of new renewable projects. 10 Yet, the slow and inconsistent processes involved in siting transmission lines act as major barriers to grid expansion. Simultaneously, siting challenges in renewable energy generation present their own obstacles to decarbonization eforts. Developers encounter similar hurdles to transmission developers, dealing with high initial costs and lengthy grid connection timelines, especially for smaller-scale projects. Moreover, the sluggish progress in transmission development restricts new renewable projects from accessing crucial infrastructure, hindering their operations and out-reach to consumers. 11 Ultimately, without addressing the regulatory barriers in both transmission and generation siting and permitting, achieving the ambitious decarbonization goals set by the Paris Agreement will remain unlikely. Part I of the Article provides a brief overview of international climate policy and highlights the emission-reduction goals set by the United States that are the driving force behind eforts to electrify the energy grid. Part II looks at current national approaches to climate policy and analyzes the challenges facing the energy sector. Part III ofers federal and regional regulatory approaches from the EU, the Federal Energy Regulatory Commission (FERC), and the Bureau of Ocean Energy Management (BOEM); it also considers successful case studies at the state and local levels that could be applied elsewhere. Part IV concludes that without action to streamline siting and permitting of large-scale renewable energy generation and transmission projects, the United States is unlikely to meet its clean energy objectives. I. The Objective: The Paris Agreement and Power-Sector Decarbonization he 2015 Paris Agreement established an international commitment to limit global average temperature rise to below 2° Celsius above pre-industrial levels. 12 his agreement has spurred eforts to electrify the energy sector worldwide, serving as a benchmark for climate goals. 13 Initially, the United States pledged to reduce greenhouse gas emissions by 26%-28% below 2005 levels by 2025, but later withdrew under President Donald Trump. 14 In 2021, the United States rejoined and revised its commitments, setting a stricter target of reducing net emissions by 50%-52% below 2005 levels by 2030, achieving net zero by 2050. 15 As the world’s second largest emitter, meeting this target would have a signiicant global impact and demonstrate the United States’ commitment to addressing climate change. he Paris Agreement provides a framework for U.S. eforts to increase renewable energy generation and establishes measurable benchmarks for tracking progress. However, the current timelines for siting and permitting, building, and connecting to the electric grid are not aligned with President Joseph Biden’s goals of decarbonizing the economy by 2050. 16 To meet the Paris Agreement targets and mitigate climate change impacts, the United States must at least double its transmission capacity and renewable energy generation. 17 his necessitates comprehensive permitting and siting reform across all levels of government that prioritizes renewable energy development. A. Energy Regulation in the United States he absence of federal climate legislation in the United States poses a signiicant challenge to transitioning to an electriied system. To achieve decarbonization and reduce CO 2 emissions, comprehensive policy reforms are needed at the national, regional, and state levels. However, the current regulatory system relies on outdated legislation drafted before widespread acceptance of climate change, and has limited the authority of the U.S. Environmental Protection Agency (EPA) to enforce substantial shifts 6. See id . 7. See Lori Bird & Katrina McLaughlin, US Clean Energy Goals Hinge on Faster Permitting , World Res. Inst. (Feb. 9, 2023), https://www.wri.org/insights/ clean-energy-permitting-reform-us. 8. Id . 9. Id. 10. See David Roberts, Transmission Week: Why We Need More Big Power Lines , Volts (Jan. 25, 2021), https://www.volts.wtf/p/transmission-week-whywe-need-more (this is because larger, more interconnected grids tend to be more reliable and cost efective than highly localized grids because centralized control is more quick to respond to luctuations in demand). 11. See Rayan Sud & Sanjay Patnaik, How Does Permitting for Clean Energy Infrastructure Work? , Brookings (Sept. 28, 2022), https://www.brookings. edu/research/how-does-permitting-for-clean-energy-infrastructure-work/: Local governments can also slow down renewable infrastructure deployment due to internal ineiciencies. For example, local permits for rooftop solar can take a month or longer, cumulatively slowing down solar deployment across the country. Further slowing things down, varying requirements and processes for each local government on the path of a renewable energy project have created a ‘fragmented’ regulatory landscape. 12. Daniel Farber & Cinnamon Carlarne, Climate Change Law 11 (1st ed. 2018). 13. See Fact Sheet, White House, President Biden Sets 2030 Greenhouse Gas Pollution Reduction...