Journal Editor, Author at Chicago-Kent Journal of Environmental and Energy Law

On March 9, 2020

Chicago Considers Forming its Own Electric Utility Company

Chicago is considering ending its 30-year franchise agreement with Commonwealth Edison Company (ComEd), the City’s incumbent utility provider. The City is exploring the possibility of forming an electric utility company that would be owned, operated, and managed by the City.[1] This process, known as municipalization, allows a local government to purchase the infrastructure and distribution assets of an incumbent utility provider in order to operate and maintain the system.

Illinois law includes a provision that permits local governments to exercise the right to acquire, construct, own, and operate a public utility.[2] Presently, 32 municipalities in Illinois, including Naperville and Winnetka, operate their own municipal electric utility.[3] However, the prospect of Chicago parting ways with ComEd is significant given that over 3 million of ComEd’s 4 million customers reside in Chicago.[4] For this reason, it is likely that acquiring ComEd’s infrastructure would be expensive—ComEd believes that the value of their system could be as much as $10 billion.[5]

Chicago is the latest in a series of large cities considering municipalization. Following Pacific Gas & Electric Company’s (PG&E) Chapter 11 Bankruptcy filing and the devastating wildfires in their service territory, San Francisco offered PG&E $2.5 billion to acquire the company’s electric infrastructure.[6] Boulder, Colorado is making progress towards its municipalization goals, but the process was caught up in a years-long litigation battle with the region’s incumbent utility provider, Xcel Energy, which raised a number of legal questions like the legality of Boulder’s plan, the cost of financing a new system, and the acquisition or condemnation of Xcel’s distribution assets.[7]

Against a backdrop of a federal corruption probe into ComEd’s lobbying efforts and a growing demand for cleaner sources of energy as well as more equitably priced utility bills, the idea of a municipal utility provider is gaining more traction.[8] Though, this is not the first time that City leaders considered the idea of municipalization. In July 2019, First Ward Alderman Daniel La Spata, with the support of 21 additional cosponsors, introduced a measure to perform a feasibility study investigating the cost of acquiring ComEd’s assets and the costs of running a municipal utility.[9] The measure did not pass at the council meeting, but at a subsequent meeting in October 2019, Twelfth Ward Alderman George Cardenas confirmed that the feasibility study was underway and anticipated the results being released in the coming months.[10]

*Feature Image: Wikimedia

[1] Becky Veavea, What if the City of Chicago Ran its Own Electric Utility?, NPR (Feb. 10, 2020), available at https://www.npr.org/local/309/2020/02/10/804480819/what-if-the-city-of-chicago-ran-its-own-electric-utility.

[2] 65 ILCS 5/11-117-1 (2019).

[3] Illinois Municipal Electric Agency, Members of IMEA, http://www.imea.org/Members.aspx (last visited Feb. 16, 2019).

[4] Veavea, supra note 1.

[5] Veavea, supra note 1.

[6] Sonja Hutson, San Francisco Offers to Buy PG&E Electric Grid in the City for $2.5 Billion, KQED (Sept. 8, 2019), available at https://www.kqed.org/news/11773007/san-francisco-offers-to-buy-pge-electric-grid-in-the-city-for-2-5-billion.

[7] Robert Walton, Colorado authorizes transfer of Xcel assets to Boulder, boosting city’s municipalization efforts, Utility Dive (Oct. 11, 2019), available at https://www.utilitydive.com/news/colorado-authorizes-transfer-of-xcel-assets-to-boulder-boosting-citys-mun/564843/.

[8] Veavea, supra note 1.

[9] Press Release, Democratize ComEd, Democratize ComEd Campaign Calls for Public Feasibility Study (Nov. 15, 2019), available at https://demcomed.org/assets/press_releases/DemComEd_11_15_19_Press_Release.pdf.

[10] Id.

[NEWS 11/24/2019] #FRIDAYSForFUTURE, Chicago Nov. 29, 2019

On November 24, 2019

In Chicago, a group of local activists is joining the global FridaysForFuture movement by striking on Friday, November 29, 2019. The Deepstrike will take place at Daley Plaza, 50 W Washington St, Chicago, IL 60602. The Strike will last from 11:00am til 2:00pm. The organizers provided the following instructions:

Wear black this #BlackFriday as we mourn the burning of the Amazon
Bring old clothes for clothing swap
Bring signs and posters if you have them
Share pictures from the Strike
Please tag #FridaysForFuture and #ClimateStrike on social media posts.

The official event page for the Strike can be found here.

According to #FRIDAYSForFUTURE’s website:

#FridaysForFuture is a movement that began in August 2018, after 15 years old Greta Thunberg sat in front of the Swedish parliament every school day for three weeks, to protest against the lack of action on the climate crisis. She posted what she was doing on Instagram and Twitter and it soon went viral.

On the 8th of September, Greta decided to continue striking every Friday until the Swedish policies provided a safe pathway well under 2-degree C, i.e. in line with the Paris agreement.

The hashtags #FridaysForFuture and #Climatestrike spread and many students and adults began to protest outside of their parliaments and local city halls all over the world. This has also inspired the Belgium Thursday school strikes.

The popularity of the youth driven movement has rapidly increased in the 14 months since Greta Thunberg first sat in front of parliament. To date, 60 thousand climate strike events, in 6.4 thousand cities across 222 countries, have attracted more than 11 million strikers.

*Featured Image: Chicago Tribune, Sep. 20, 2019, Getty Images

[NEWS 11/24/2019] U.S. EPA awards $3.6 million in Grants to Restoration Programs on Lake Erie

On November 24, 2019

On November 19, 2019, the U.S. Environmental Protection Agency (“EPA”) awarded five grants totaling nearly $3.6 million to organizations dedicated to clean-up and restoration activities across Lake Erie.[1] The grants were awarded to the Ohio EPA, Ohio Lake Erie Commission (“OLEC”), Ohio Department of Natural Resources, and the Northeast Ohio Four County Regional Planning and Development Organization, and are part of a broader mission by the EPA to restore and protect the Great Lakes region.[2]

The grants follow a July 2019 algae bloom outbreak that was among the most severe and toxic since scientists began tracking algae blooms in the early 2000’s.[3] The bloom covered nearly 620 square miles over the surface of Lake Erie, an area more than twice the size of Chicago.[4] Greater rainfall in recent years has increased erosion and flooding along Lake Erie’s coast line, which allows farm fertilizers and waste water to infiltrate the lake while higher temperatures cause the blooms to expand further and last longer.[5]

Certain programs that received funding through the EPA’s grants will tackle the threat of algae blooms head on. These programs include a plan by the Ohio EPA and OLEC to reduce phosphorus runoff and to protect and restore streams and wetlands by working with farmers as well as a grant to develop and implement the Lakewide Action Management Plans for Lake Erie and Remedial Action Plans for Lake Erie areas of concern.[6]

*Featured Image: The 2019 toxic algae bloom that formed in western Lake Erie. In a NASA satellite image taken on July 30, 2019, the green medley of plankton and bacteria had grown larger than New York City. (USGS/NASA Landsat).

[1] Press Release: EPA announces grants to advance clean-ups in Ohio’s Lake Erie Watershed and Areas of Concern, USEPA (Nov. 19, 2019) https://www.epa.gov/newsreleases/epa-announces-grants-advance-clean-ups-ohios-lake-erie-watershed-and-areas-concern (last visited Nov. 22, 2019).

[2] Id.

[3] Tony Briscoe, The shallowest Great Lake provides drinking water for more people than any other. Algae blooms are making it toxic — and it’s getting worse, Chicago Tribune (Nov. 14, 2019) https://www.chicagotribune.com/news/environment/great-lakes/ct-lake-erie-climate-change-algae-blooms-20191114-bjkteorf5vg2hfu3cgqxe2ncru-story.html (last visited Nov. 22, 2019).

[4] Id.

[5] Algae Bloom in Lake Erie Poses Major Health Threat, NOAA (Aug. 15, 2019) https://www.nesdis.noaa.gov/content/algae-bloom-lake-erie-poses-major-health-threat (last visited Nov. 22, 2019).

[6] Laura Johnston, U.S. EPA announces $3.6 million in Lake Erie grants, Cleveland.com (Nov. 19, 2019) https://www.cleveland.com/news/2019/11/us-epa-announces-3-million-in-lake-erie-grants.html (last visited Nov. 22, 2019).

[NEWS 11/24/2019] Coal Knew of Threat of Climate Change Since 1966

On November 24, 2019

Evidence of what fossil fuel companies knew about the potentially negative impact of fossil fuel combustion on climate change is critical to the legal strategy of those seeking damages for carbon dioxide emissions. If the harmful effects of fossil fuel emissions were known to fossil fuel companies, they potentially could be held liable for damages.[1]

For decades coal companies have denied knowledge of the consequences, as well as the existence of climate change itself. The Huffington Post reported that although Peabody Energy,[2] the largest private-sector coal company in the world, acknowledges climate change on its website, “[i]t has been directly and indirectly involved in obfuscating climate science for decades. It funded dozens of trade, lobbying and front groups that peddled climate misinformation.”[3]

A recently discovered article, however, revealed that the coal industry has known of fossil fuel’s impact on climate change for decades.[4]

Chris Cherry, professor of civil engineering at the University of Tennessee, discovered an article published in the Mining Congress Journal in 1966, written by James R. Garvey, president of Coal Research Inc.[5] An article titled “ramifications of extractive technologies,”[6] revealed the coal industries foreknowledge. Garvey wrote:

There is evidence that the amount of carbon dioxide in the earth’s atmosphere is increasing rapidly as a result of the combustion of fossil fuels . . . [s]uch changes in temperature will cause melting of the polar icecaps, which, in turn, would result in the inundation of many coastal cities, including New York and London. [7]

Most modern knowledge of climate change is seen in the article including increase of average air temperature, melting of polar ice caps, and rising of sea levels.[8] Cherry’s discovery could potentially open the coal industry to similar litigation currently faced by the oil industry.[9]

The Huffington Post reached out to Peabody Energy for comment on the Article’s revelations. A Peabody spokesman stated:

Peabody recognizes that climate change is occurring and that human activity, including the use of fossil fuels, contributes to greenhouse gas emissions. We also recognize that coal is essential to affordable, reliable energy and will continue to play a significant role in the global energy mix for the foreseeable future. Peabody views technology as vital to advancing global climate change solutions, and the company supports advanced coal technologies to drive continuous improvement toward the ultimate goal of near-zero emissions from coal.[10]

*Featured Image: A 1966 issue of the Mining Congress Journal, Courtesy of Chris Cherry

[1] See Elan Young, Coal Knew, Too, Huffington Post (Nov. 22, 2019) https://www.huffpost.com/entry/coal-industry-climate-change_n_5dd6bbebe4b0e29d7280984f (last visited Nov. 22, 2019).

[2] https://www.peabodyenergy.com/.

[3] Élan Young, supra n.1; see Suzanne Goldenberg and Helena Bengtsson, Biggest US coal company funded dozens of groups questioning climate change, Guardian (June 13, 2016), https://www.theguardian.com/environment/2016/jun/13/peabody-energy-coal-mining-climate-change-denial-funding (last visited Nov. 22, 2019).

[4] Eoin Higgins, Coal Knew Too: Explosive Report Shows Industry Was Aware of Climate Threat as Far Back as 1966, Common Dreams (Nov. 22, 2019), https://www.commondreams.org/news/2019/11/22/coal-knew-too-explosive-report-shows-industry-was-aware-climate-threat-far-back-1966 (last visited Nov. 22, 2019).

[5] Id.

[6] Id.

[7] Élan Young, supra n.1

[8] Eoin Higgins, supra n.4.

[9] Id.

[10] Élan Young, supra n.1

[NEWS 11/13/2019] U.S. Withdraws from Paris Agreement

On November 13, 2019

U.S. Withdraws from Paris Agreement

President Donald Trump recently announced that the United States began the process to withdraw from the Paris Agreement.[1] The administration confirmed the withdrawal will be final on November 4, 2020.[2]

The Paris Agreement considered the voluntary national commitments of participating nations in the global reduction of greenhouse gases, to set achievable national goals to combat global climate change and establish a metric for measuring progress in meeting the global goals.[3] Almost 200 countries signed the Paris Agreement in 2015 and pledged to reduce greenhouse gas emissions.[4] The United States was a powerful party in the original agreement.[5] They created language to hold countries accountable for their promises.[6] However, the United States is now the only country to pull out of the global agreement.[7]

According to Andrew Light, a former climate official in the U.S. State Department, “[t]he United States is not cooperating with the rest of the world on dealing with climate change.”[8] Rachel Cleetus of the Union of Concerned Scientists says “[t]he reality is, to really deliver on our climate goals, we do need strong federal action.”[9]

Michael R. Pompeo, Secretary of State, stated in his press statement despite the withdrawal from the Paris Agreement, “[The United States] will continue to work with our global partners to enhance resilience to the impacts of climate change and prepare for and respond to natural disasters . . . the United States will continue to research, innovate, and grow our economy while reducing emissions and extending a helping hand to our friends and partners around the globe.”[10]

[1] David Roberts, The Paris climate agreement is at risk of falling apart in the 2020s, Vox (November 5, 2019), https://www.vox.com/energy-and-environment/2019/11/5/20947289/paris-climate-agreement-2020s-breakdown-trump (last visited November 7, 2019).

[2] Id.

[3] David Roberts, The Conceptual breakthrough behind the Paris climate treaty, Vox (December 15, 2015), https://www.vox.com/2015/12/15/10172238/paris-climate-treaty-conceptual-breakthrough (last visited November 8, 2019).

[4] Rebecca Hersher, U.S. Formally Begins to Leave the Paris Climate Agreement, NPR (November 4, 2019), https://www.npr.org/2019/11/04/773474657/u-s-formally-begins-to-leave-the-paris-climate-agreement (last visited November 8, 2019).

[5] See Id.

[6] Id.

[7] Id.

[8] Id.

[9] Id.

[10] Michael R. Pompeo, On the U.S. Withdrawal from the Paris Agreement, U.S. Department of State (November 4, 2019), https://www.state.gov/on-the-u-s-withdrawal-from-the-paris-agreement/ (last visited November 7, 2019).

[NEWS 11/13/2019] Leadership Shake-Up at Department of Energy and Federal Energy Regulatory Commission

On November 13, 2019

Leadership Shake-Up at Department of Energy and Federal Energy Regulatory Commission

On Thursday November 7, 2019, the Trump Administration officially nominated Dan Brouillette to succeed Rick Perry as the U.S. Energy Secretary.[1] Secretary Perry’s ties to the ongoing investigation into President Trump’s communications with the President of Ukraine, Volodymyr Zelensky, foreshadowed Perry’s resignation.[2] An official date of resignation has not yet been set, but Secretary Perry is expected to step down before the end of the year.[3]

Under his previous appointment as the Deputy Energy Secretary, Brouillette was responsible for leading the day-to-day operations at the Department of Energy (“DOE”). He has also held prior government positions as the Chief of Staff for the House Committee on Energy and Commerce, the Assistant Secretary of congressional affairs for the DOE, under President George W. Bush, and a member of the Louisiana State Mineral and Energy Board.[4] Chairman of the Senate Energy and Natural Resources Committee, Sen. Lisa Murkowski (R-Alaska), released a statement expressing her confidence that Brouillette “will excel in this new role.”[5]

In other federal energy news, on November 5, 2019, the Senate Energy and Natural Resource Committee questioned James Danly, the White House nominee, vying for one of two commissioner vacancies on the Federal Energy Regulatory Commission (“FERC”).[6] FERC is an independent, bipartisan regulatory agency tasked with regulating the interstate transmission of electricity, natural gas, and oil.[7] Danly is currently serving as the general counsel for FERC. His appointment would end the regulatory bottleneck resulting from FERC’s inability to meet the quorum requirements to take an official vote on pending decisions.[8] However, there will still be one vacant commissioner seat to be filled by a Democratic-appointee, which the Trump Administration has yet to announce a nomination.

Featured Image: Mari Yamaguchi/AP Photo

[1] Humeyra Pamuk, Trump nominates former Ford executive to be new U.S. energy secretary, Reuters (Nov. 7, 2019), https://www.reuters.com/article/us-usa-trump-brouillette/trump-nominates-former-ford-executive-to-be-new-u-s-energy-secretary-idUSKBN1XI022?feedType=RSS&feedName=topNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FtopNews+%28News+%2F+US+%2F+Top+News%29 (last visited Nov. 8, 2019).

[2] Maggie Haberman and Lisa Friedman, Perry to Resign as Energy Secretary, The New York Times (Oct. 17, 2019), https://www.nytimes.com/2019/10/17/us/politics/rick-perry-energy-secretary-resigns.html?module=inline (last visited Nov. 8, 2019).

[3] Id.

[4] Lisa K. Friedman and Mariel Padilla, Trump Taps Dan Brouillette to Succeed Rick Perry as Energy Secretary, The New York Times (Oct. 18, 2019), https://www.nytimes.com/2019/10/18/us/politics/dan-brouillette-energy-secretary-rick-perry.html (last visited Nov. 8, 2019).

[5] Press Release, United States Senator for Alaska Lisa Murkowski, Murkowski Welcomes Nomination of Dan Brouillette to be Secretary of Energy (Oct. 21, 2019), https://www.murkowski.senate.gov/press/release/murkowski-welcomes-nomination-of_dan-brouillette-to-be-secretary-of-energy (last visited Nov. 8, 2019).

[6] Iulia Gheorghiu, Sen. Manchin ‘fighting’ for White House nomination of Democratic FERC candidate, Utility Dive (Nov. 6, 2019), https://www.utilitydive.com/news/sen-manchin-fighting-for-white-house-nomination-of-democratic-ferc-candi/566722/ (last visited Nov. 8, 2019).

[7] FERC, About FERC: What FERC Does, https://www.ferc.gov/about/ferc-does.asp (last visited Nov. 8, 2019).

[8] Iulia Gheorghiu, Trump bucks bipartisan tradition with plan to nominate Republican FERC commissioner, Utility Dive (Oct. 2, 2019), https://www.utilitydive.com/news/trump-picks-Republican-Danly-FERC-nominee-sans-Democrat-pre-clearance-Clements-Schumer-Manchin/564149/ (last visited Nov. 8, 2019).

[NEWS 10/28/2019] Illinois EPA Solicits Public Input for Coal Ash Rulemaking

On October 28, 2019

Illinois EPA Solicits Public Input for Coal Ash Rulemaking

The Illinois Environmental Protection Agency (“IEPA”) recently concluded a series of stakeholder meetings, which sought public input on the development of rules related to the mitigation and remediation of coal ash ponds.[1] Coal combustion residual surface impoundments, commonly known as “coal ash ponds,” are repositories for the potentially harmful byproducts of coal-powered electric generation facilities.[2]

A 2018 report compiled by EarthJustice, Prairie Rivers Network, Environmental Integrity Project, and the Sierra Club found that 22 out of 24 coal ash ponds in Illinois release toxic pollutants (including arsenic, cobalt, and lithium) into the groundwater.[3] In the wake of these findings, Illinois governor JB Pritzker signed the Coal Ash Pollution Prevention Act (the “Act”) into law in July 2019.[4] The Act prohibits the discharge of coal ash into the environment and establishes a regulatory framework designed to ensure industry compliance.[5] The Act provides guidelines for the construction, operation, and closure of all Illinois coal ash plants currently in operation. The guidelines also set forth the requirements for monitoring contamination levels and any future on-site remediation.

The IEPA hosted its final stakeholder meeting on October 9, 2019 in Waukegan, Illinois. The next step for the Agency is to consolidate the feedback, and draft a rule for public comment. The IEPA anticipates publishing the draft rule in November or December 2019. A final version of the rule must be submitted for approval to the Illinois Pollution Control Board by March 30, 2020.[8]

[1] Alex Ortiz, Illinois EPA to host meeting on coal ash pollution in Joliet, The Herald-News (Oct. 5, 2019), available at https://www.theherald-news.com/2019/10/03/illinois-epa-to-host-meeting-on-coal-ash-pollution-in-joliet/aoppp1p/.

[2] Coal Combustion Residual Surface Impoundments, Illinois Environmental Protection Agency, https://www2.illinois.gov/epa/topics/water-quality/watershed-management/ccr-surface-impoundments/Pages/default.aspx (last visited Oct. 25, 2019).

[3] Earthjustice, Prairie Rivers Network, Environmental Integrity Project & Sierra Club, Cap and Run: Toxic Coal Ash Left Behind by Big Polluters Threatens Illinois Water (Nov. 27, 2018), available at https://earthjustice.org/news/press/2018/new-report-reveals-severe-groundwater-contamination-at-illinois-coal-ash-dumps.

[4] Alex Ruppenthal, Illinois Becomes Latest State to Crack Down on Coal Ash Pollution (July 31, 2019), available at https://news.wttw.com/2019/07/31/illinois-becomes-latest-state-crack-down-coal-ash-pollution.

[5] See 415 ILCS 5/22.59 (2019).

[6] See 40 C.F.R. § 257, Subpart D (2019).

[7] Coal Combustion Residual Surface Impoundments, Illinois Environmental Protection Agency, https://www2.illinois.gov/epa/topics/water-quality/watershed-management/ccr-surface-impoundments/Pages/default.aspx (last visited Oct. 25, 2019).

[8] Id.

[NEWS 10/28/2019] Michigan Lawmakers Fight to Introduce New Energy Diversity Bills

On October 28, 2019

Michigan Lawmakers Continue to Consider Legislation to Diversify Electricity Sources.

Four, bipartisan state bills were introduced in 2014, in an attempt to diversify Michigan’s energy sources.[1] The bills tackled fair value pricing, net metering enhancements, community renewable energy gardens, and microgrids.[2] Despite having bipartisan support, the bills failed to make it out of committee during the past three legislative sessions.

Lawmakers have introduced a new series of bills named Powering Michigan Forward.[3] The proposed bill would eliminate current regulatory blocks that hinder the future growth of Michigan’s solar energy market.[4] The bill’s sponsors argue that the “package gives residents of Michigan’s Upper Peninsula energy freedom,” that it will support community jobs—ultimately, helping the “district’s economy continue its forward momentum.”[5] With the introduction of these bills, Michigan state legislators hope to increase residential, commercial, and industrial communities’ access to clean and affordable energy options.[6]

While clean energy developers and local business interest groups support the proposed legislation, Consumers Energy opposes the bills believing that the implementation costs are disproportionate, and “customers should pay their fair share to ensure reliability and affordability of the energy grid.”[7] DTE, a holding company established by Detroit Edison, was also concerned by the proposed legislation because, while the push toward small power may be beneficial for certain customers or conditions, “they continue to be expensive and have incremental benefits when you consider broader issues.”[8]

[1] Andy Balaskovitz, Bipartisan ‘energy freedom’ bills resurface in Michigan, one at a time, Energy News Network (October 22, 2019), https://energynews.us/2019/10/22/midwest/bipartisan-energy-freedom-bills-resurface-in-michigan-one-at-a-time/ (last visited October 24, 2019).

[2] Andy Balaskovitz, Michigan legislators seek ‘energy freedom’ for consumers, Energy News Network (July 22, 2014) https://energynews.us/2014/07/22/midwest/michigan-legislators-seek-energy-freedom-for-consumers/ (last visited October 24, 2019).

[3] Megan Schellong, Lawmakers introduce renewable energy bills, WLNS (October 22, 2019), https://www.wlns.com/news/lawmakers-introduce-renewable-energy-bills/ (last visited October 24, 2019)

[4] Id.

[5] Fox 47 News, Bills introduced to improve clean energy, Fox News (October 22, 2019), https://www.fox47news.com/news/local-news/bills-introduced-to-improve-clean-energy (last visited October 24, 2019).

[6] Id.

[7] Robert Walton, DTE, Consumers Energy push back on Michigan legislators’ plan to rewrite 2016 energy law, Utility Dive (October 23, 2019), https://www.utilitydive.com/news/dte-consumers-energy-push-back-on-michigan-legislators-plan-to-rewrite-20/565642/ (last visited October 24, 2019).

[8] Id.

[NEWS, Oct. 12, 2019] Threat of Wildfire Prompts California Utility Companies to Cut Power to Customers

On October 12, 2019