Tag: Energy Law

Offshore Wind in Lake Michigan and the Illinois Public Trust Doctrine

By: Joseph Garza

From Rust Belt to Green Belt

Illinois lawmakers’ proposal to transform Chicago into a powerhouse of offshore wind energy production faces a critical legal challenge in the public trust doctrine. This proposal marks an important step for Illinois as it transitions from fossil fuels towards a future based in renewables.[1] HB4543, dubbed the Rust Belt to Green Belt Pilot Program Act (the Act), aims to bring offshore wind to Chicago in the most equitable way possible. The Act plans to focus new jobs created by this development to the south side of the city, whose workforce had once been heavily involved in the now-abandoned steel industry.[2] This goal is especially important in a city dealing with a troubling past devoid of environmental justice for marginalized communities.[3] With the Act going through its public participation stage, it is important to address one of its largest areas of opposition: the public trust doctrine.

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A Tale of Two Energy Bills in Springfield

Illinois legislators are evaluating two different proposed clean energy bills that would accelerate renewable energy growth in the state. One bill, the Clean Energy Jobs Act (CEJA) would focus on consumer protection, expanding energy efficiency programs, increasing EV charging stations and protecting existing clean energy jobs in the state.[1] The second bill, Path to 100, focuses more on funding clean energy jobs.[2] Both bills seek to ensure Illinois achieves 100 percent renewable energy by 2030.[3]

CEJA would continue to fund and expand programs established by the 2014 Future Energy Jobs Act (FEJA),[4] which has lowered the cost of Illinois energy bills from some of the highest in the country to some of the lowest.[5] Funding from the 2014 Act is running low, and CEJA would protect thousands of clean energy jobs by bolstering funding for those programs.[6] The most ambitious provisions in the bill seek to achieve 100 percent carbon-free electricity by 2030 and 100 percent renewable energy by 2050.[7]

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FERC Asserts Jurisdiction Over State-Determined Carbon Pricing

The Federal Energy Regulatory Commission (FERC) has released a policy statement declaring it has jurisdiction to “incorporate a state-determined carbon price in [wholesale] markets.”[1]

FERC released the policy statement following a virtual technical conference it held on September 30 on the subject of carbon pricing in wholesale electricity markets.[2] The conference covered a range of topics, including an overview of current carbon pricing mechanisms used by states and regional coalitions, as well as operational and design issues that may arise when incorporating a carbon price into a wholesale market structure.[3]

The conference also featured a panel on the legal implications of integrating carbon pricing into wholesale markets. There, as is so often the case with a novel legal issue, the threshold question was one of jurisdiction—specifically whether and under what authority FERC has jurisdiction to implement carbon pricing.[4] Answering that question in the affirmative, FERC has taken a significant step by signaling it will not reject carbon price proposals brought by states “out of hand.”[5]

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Legalized Marijuana and Energy Use: A Primer

Marijuana use, whether for recreational or medicinal purposes, is growing. Because some states prohibit growing hemp plants outdoors, much of the production is indoors—an energy-intensive operation that requires grow lights, air conditioning, and dehumidification.[1]

Cannabis cultivation centers (where the plants are grown) have been likened to data centers, which are “50 to 200 times more energy-intense than a typical office building.”[2] With more states expected to legalize recreational cannabis in the next few years (medical use is currently legal in 33 states,[3] and adult recreational cannabis use is currently legal in 11 states[4]), demand for marijuana will continue to grow, bringing with it strain on energy resources.

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