In the News

Agrowing number of states have embraced zero-emissions electricity as a core component of their economy-wide decarbonization strategy. On November 6, the Institute for Policy Integrity hosted a conference on state-level pathways to achieving those goals. Over the course of three sessions — two panels and a keynote — conference participants examined the technical, economic, and equity issues that arise in connection with state efforts in this area.

Large parts of the eastern United States are at an elevated risk of electricity outages if extreme storms cripple power grids this winter, according to the U.S. grid monitor. The FERC/NERC report suggests an independent research group analyze whether more natural gas pipelines and gas storage facilities are needed to improve grid reliability and the gas heating system. A study about pipeline needs should account for the fact that other less-expensive infrastructure could be used instead, said Jennifer Danis, federal energy policy director at the Institute for Policy Integrity, a think tank at NYU School of Law.

Supporters of a conference on capacity accreditation approaches for grid resources include Southern California Edison, Advanced Energy United and the Colorado Public Utilities Commission chair.

A lawsuit challenging a natural gas expansion project on the East Coast could change how federal regulators assess state climate policies. “If the D.C. Circuit doesn’t step in, state ratepayers are going to end up paying twice,” said Jennifer Danis, federal energy policy director at the Institute for Policy Integrity, a think tank based at New York University School of Law. “They’ll end up paying more as the states are transitioning away from gas and electrifying building and heating and other uses.”

Questions remain regarding whether DOE’s and FERC’s recently expanded authority under the Infrastructure Investment and Jobs Act (“IIJA”) is enough to override historical state jurisdiction over the transmission siting processes, and whether the implementation of this federal authority can withstand judicial review. While it will likely be years before the new promulgation of this authority is tested in practice, in the short-term there are plenty of opportunities for interested entities to help shape these processes going forward. The Institute for Policy Integrity at New York University School of Law further suggest expanding the definition of environmental justice communities beyond those “overburdened by pollution” to include historically marginalized communities bearing any type of disproportionate environmental burden. Expanding these definitions would result in broadened environmental reviews and increased public participation in FERC’s review processes.

The growth of distributed energy resources (DERs), such as rooftop solar, raises significant distributional justice and equity concerns about who has access to DERs and their benefits. DER compensation is critical to incentivize widespread adoption. However, traditional tariff design approaches suffer from the assumption that economic efficiency and equity must necessarily trade-off. Our paper describes a comprehensive tariff design framework that incorporates both economic efficiency and equity objectives to determine electricity tariffs. We offer recommendations on how efficient tariffs can be designed without sacrificing equity, and the role of spatio-temporal granularity in tariff structures to achieve equity.

To prevent power outages like those that occurred during Winter Storm Uri, the Public Utility Commission of Texas (PUCT) is considering a fundamental overhaul of the Electric Reliability Council of Texas’s (ERCOT) wholesale electricity market. We urge the PUCT to consider whether incentivizing more generation is needed or whether the key issue is enhancing the resilience of existing generation to extreme weather events. We then explain why any new reliability mechanism should compensate both dispatchable and non-dispatchable resources according to their reliability value, include an efficient penalty structure for non-performance of generation units, reduce uncertainty for market participants, and mitigate the exercise of market power.

The Institute for Policy Integrity at the NYU School of Law examined the question, “How Do We Know if Hydrogen is Clean?” and noted that "the Biden administration’s Inflation Reduction Act includes “major incentives for ‘clean’ hydrogen. Now agencies need to decide what counts as clean.” The institute gave the Department of Energy, which is charged with developing a standard for clean hydrogen, a series of recommendations.

FERC's Willie Phillips joined the Institute for Policy Integrity to discuss a shifting U.S. energy landscape and how FERC is aiding the clean power transition.

FERC’s latest decision “should be the final nail in the MOPR’s coffin,” Sarah Ladin, senior attorney at the Institute for Policy Integrity at NYU School of Law, said in a statement Friday. “By rejecting the request to expand NYISO’s previous rule to the rest of the state, the commission closes a chapter on overly expansive rules that undermine state authority and harm wholesale market competition.”