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Senate Majority Leader Chuck Schumer has asked the Federal Energy Regulatory Commission to rewrite transmission rules, signaling a new front in the war over permitting reform.
Senate Majority Leader Chuck Schumer has asked the federal government’s energy regulator to write aggressive new rules that would let America build more long-distance power lines, a move that would accomplish one of Democrats’ most important climate goals.
In a letter sent on Thursday, Schumer asked the Federal Energy Regulatory Commission, a bipartisan panel known as FERC, to “strengthen and finalize” rules governing where power lines can be built and who will pay for them. Those rules will be essential to “[delivering] reliable, affordable, and clean power to Americans,” Schumer wrote.
The letter, which has not been previously reported, suggests that Democrats are tiring of bipartisan negotiations over reforming the country’s environmental-permitting laws and will now seek agency action to secure most of their climate goals.
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The effort to reform how and where America builds new power lines is one of Democrats’ biggest priorities for any permitting-reform bill — and one of the biggest sticking points for Republicans. Long-distance transmission is essential to increasing the power grid’s share of wind and solar power, because they allow for clean electricity to be moved from the windiest, sunniest parts of the country to power-hungry cities and towns.
Building more transmission may also be essential to accomplishing the goals of President Joe Biden’s signature climate law. If America doesn’t double how quickly it builds new power lines, then 80% of the carbon reductions from that law, the Inflation Reduction Act, might be lost, according to a research team at Princeton University.
While Democrats want transmission reform to appear in any permitting bill, Republicans have yet to name specific transmission policies that they would support in a compromise. At the same time, the GOP has insisted on changing America’s bedrock environmental statutes — the Clean Air Act and the Clean Water Act — to benefit fossil fuels projects.
The letter suggests that Schumer believes this is too high a price. Democrats do not need new legislation to hit their most pressing transmission goals, his letter implies, but can instead implement most of their agenda through FERC, which is scheduled to get a Democratic majority at the beginning of next year.
The letter is also clearly meant to establish Schumer’s leverage in ongoing permitting talks.
Experts say that transmission construction is held back for two reasons. First, no rules govern how utilities, companies, and consumers should split costs for new transmission once it’s built. Even if a private developer single-handedly builds a new power line to connect two far-flung areas, electricity markets have no rules about how that developer can recoup their costs.
Second, power lines face an especially onerous permitting process. A new transmission project must generally seek approval from every city, county, and state that it passes through. A new natural-gas pipeline, by comparison, only needs to be approved by FERC.
While the federal government has begun to fix the permitting problem, the cost-allocation problem remains totally unsolved.
The bipartisan infrastructure law, which passed in 2021, gave FERC a “backstop” permitting authority, which means that if a local government blocks a proposed transmission line for more than a year, then FERC can step in and approve it.
FERC is now working on a draft version of the rules governing how it would handle that process. But in the letter, Schumer exhorts the agency to move faster and take a more comprehensive approach.
First, he writes, any FERC rule about transmission must say how project developers and utilities should split up the cost of a new power line. The agency must also define the types of benefits that communities can expect from a new transmission line, which should make it easier to calculate who should pay for what.
This cost-allocation rule must also set up a process to fix another potential problem: what happens if states disagree among themselves on how to divide up costs. “Absent such a path … there will be a significant risk of either projects being stalled due to deadlock, or that states that benefit from a transmission line are incentivized to act as free riders and avoid any costs,” Schumer writes.
Second, Schumer wants FERC to require utilities and state regulators to study multiple scenarios for the future of the electricity grid in order to decide where new transmission lines might be needed. These planning sessions must include at least one scenario in which renewables make up a large share of the grid. And grid planners must also study whether existing power lines — or other energy-transportation technology — can be repurposed to support the grid of the future, Schumer said.
These scenarios should also include stress tests looking at especially hot or cold days, when the power grid will be most under demand and transmission is the most important, Schumer said. Roughly half of the economic value of electricity transmission comes from how the grid performs during just 5 to 10% of the hours in a year, according to a recent study from the Lawrence Berkeley National Laboratory.
Right now, most grid planners do not generally take the changing power mix — including known power-plant retirements — into account when studying the need for new transmission projects, Rob Gramlich, the president of Grid Strategies, an electricity research and consulting firm, told me.
Finally, Schumer instructs FERC that it must quickly publish rules governing its new “backstop” ability to step in and approve new transmission lines. And it must set up an informal process so that developers can begin working with FERC even before the one-year deadline on state and local approval kicks in.
“I think FERC clearly has the authority to do what Senator Schumer is requesting, and has given appropriate notice in its proposal to do probably all of them,” Gramlich said.
Schumer’s requests matter because FERC will soon get its first Democratic majority in years. FERC is governed by a bipartisan, five-person commission; no more than three of its commissioners, who are nominated by the president and confirmed by the Senate, can come from the same party.
But so far, Senator Joe Manchin of West Virginia has blocked Biden’s nominees to FERC, deadlocking FERC with two Democratic commissioners and two Republican commissioners. That deadlock will end in early January 2024, when the Republican James Danly will step down, giving the commission’s two Democrats a working majority.
In essence, Schumer is telling those two Democrats that they should start planning for that majority now. He is also putting Republicans on notice that Democrats do not need legislation to accomplish their permitting goals.
Bipartisan talks over a permitting bill are ongoing. Last week, Representative Garret Graves, a House Republican negotiator on the package, said that he hoped to focus on “how to redesign the grid and transmission in a way that reflects new technologies that are out there.” He did not name a specific transmission policy that Republicans support.
Earlier this year, Biden and House Republicans reached a deal over government spending that also changed some permitting laws, including the National Environmental Policy Act. But that law did not make it any easier to build new power lines.
Read more on FERC:
The Republican Fed Up With Free Markets in Electricity
This article was updated on Monday, July 24, at 12:55 PM ET.
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Did a battery plant disaster in California spark a PR crisis on the East Coast?
Battery fire fears are fomenting a storage backlash in New York City – and it risks turning into fresh PR hell for the industry.
Aggrieved neighbors, anti-BESS activists, and Republican politicians are galvanizing more opposition to battery storage in pockets of the five boroughs where development is actually happening, capturing rapt attention from other residents as well as members of the media. In Staten Island, a petition against a NineDot Energy battery project has received more than 1,300 signatures in a little over two months. Two weeks ago, advocates – backed by representatives of local politicians including Rep. Nicole Mallitokis – swarmed a public meeting on the project, getting a local community board to vote unanimously against the project.
According to Heatmap Pro’s proprietary modeling of local opinion around battery storage, there are likely twice as many strong opponents than strong supporters in the area:
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Yesterday, leaders in the Queens community of Hempstead enacted a year-long ban on BESS for at least a year after GOP Rep. Anthony D’Esposito, other local politicians, and a slew of aggrieved residents testified in favor of a moratorium. The day before, officials in the Long Island town of Southampton said at a public meeting they were ready to extend their battery storage ban until they enshrined a more restrictive development code – even as many energy companies testified against doing so, including NineDot and solar plus storage developer Key Capture Energy. Yonkers also recently extended its own battery moratorium.
This flurry of activity follows the Moss Landing battery plant fire in California, a rather exceptional event caused by tech that was extremely old and a battery chemistry that is no longer popular in the sector. But opponents of battery storage don’t care – they’re telling their friends to stop the community from becoming the next Moss Landing. The longer this goes on without a fulsome, strident response from the industry, the more communities may rally against them. Making matters even worse, as I explained in The Fight earlier this year, we’re seeing battery fire concerns impact solar projects too.
“This is a huge problem for solar. If [fires] start regularly happening, communities are going to say hey, you can’t put that there,” Derek Chase, CEO of battery fire smoke detection tech company OnSight Technologies, told me at Intersolar this week. “It’s going to be really detrimental.”
I’ve long worried New York City in particular may be a powder keg for the battery storage sector given its omnipresence as a popular media environment. If it happens in New York, the rest of the world learns about it.
I feel like the power of the New York media environment is not lost on Staten Island borough president Vito Fossella, a de facto leader of the anti-BESS movement in the boroughs. Last fall I interviewed Fossella, whose rhetorical strategy often leans on painting Staten Island as an overburdened community. (At least 13 battery storage projects have been in the works in Staten Island according to recent reporting. Fossella claims that is far more than any amount proposed elsewhere in the city.) He often points to battery blazes that happen elsewhere in the country, as well as fears about lithium-ion scooters that have caught fire. His goal is to enact very large setback distance requirements for battery storage, at a minimum.
“You can still put them throughout the city but you can’t put them next to people’s homes – what happens if one of these goes on fire next to a gas station,” he told me at the time, chalking the wider city government’s reluctance to capitulate on batteries to a “political problem.”
Well, I’m going to hold my breath for the real political problem in waiting – the inevitable backlash that happens when Mallitokis, D’Esposito, and others take this fight to Congress and the national stage. I bet that’s probably why American Clean Power just sent me a notice for a press briefing on battery safety next week …
And more of the week’s top conflicts around renewable energy.
1. Queen Anne’s County, Maryland – They really don’t want you to sign a solar lease out in the rural parts of this otherwise very pro-renewables state.
2. Logan County, Ohio – Staff for the Ohio Power Siting Board have recommended it reject Open Road Renewables’ Grange Solar agrivoltaics project.
3. Bandera County, Texas – On a slightly brighter note for solar, it appears that Pine Gate Renewables’ Rio Lago solar project might just be safe from county restrictions.
Here’s what else we’re watching…
In Illinois, Armoracia Solar is struggling to get necessary permits from Madison County.
In Kentucky, the mayor of Lexington is getting into a public spat with East Kentucky Power Cooperative over solar.
In Michigan, Livingston County is now backing the legal challenge to Michigan’s state permitting primacy law.
On the week’s top news around renewable energy policy.
1. IRA funding freeze update – Money is starting to get out the door, finally: the EPA unfroze most of its climate grant funding it had paused after Trump entered office.
2. Scalpel vs. sledgehammer – House Speaker Mike Johnson signaled Republicans in Congress may take a broader approach to repealing the Inflation Reduction Act than previously expected in tax talks.
3. Endangerment in danger – The EPA is reportedly urging the White House to back reversing its 2009 “endangerment” finding on air pollutants and climate change, a linchpin in the agency’s overall CO2 and climate regulatory scheme.