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New Policy Brief Urges Public Utilities Commissions to Rise to the Clean Energy Challenge

Today, the Center for Progressive Reform is publishing a new policy brief, Rising to the Challenge: How State Public Utilities Commissions Can Use the Inflation Reduction Act to Advance Clean Energy. This brief examines the ability of public utilities commissions (PUCs) to incorporate Inflation Reduction Act (IRA) funding into their energy planning processes in order to expand the uptake of renewable energy resources at a lower cost to consumers.

PUCs are state-level bodies that regulate utilities, but the sorts of reforms they are allowed to pursue, and the kinds of utilities they regulate (investor-owned, cooperative, etc.) vary from state to state. In some states, legislators have been more successful in leveraging their PUCs to push forward a clean energy transition than others. PUCs in Michigan, Missouri, and Virginia, for example, have all mandated their respective utilities to integrate IRA funding into their modeling. States where PUCs have used their oversight to do this have seen the modeled cost of renewable energy projects decline, and consequently, reduced future projected cost to customers.

Meanwhile, in North Carolina (where the Center has worked on a years-long campaign to attain much-needed energy reforms) the North Carolina Utilities Commission (NCUC) has failed to compel Duke Energy, the state’s monopoly utility, to integrate IRA funding into the state’s legislatively mandated carbon reduction plan. As a result, Duke Energy has developed a decarbonization plan that prioritizes fossil fuel gas over cheaper, more environmentally sound renewable energy sources leading to higher costs to the environment and consumers.

Our hope is that the case studies in this brief, covering successes in Michigan, Missouri, and Virginia, will inform and encourage others — including but not limited to North Carolinians — about ways forward to a cleaner, more affordable energy future in their state.

Based on our findings, we offer the following recommendations:

  1. State legislatures should provide effective oversight of PUCs to adopt more stringent clean energy goals in alignment with state climate plans. Having a legal mandate to devise a decarbonization plan at the state level at least cost can accelerate PUC adoption of IRA funding to meet the letter of the law.
  1. Public utilities commissions should fully embrace their roles as strict regulators of electric utilities to enforce the adoption of clean, affordable electricity for all people in service of the public interest.
  1. Electric utilities should incorporate IRA funding in their integrated resource plan modeling process to both save costs and lower costs to ratepayers. As with Michigan’s investor-owned utility, it is clear that hundreds of millions of dollars in savings are available with IRA-specific funding.
  1. Stakeholders, such as clean energy advocates and concerned members of the public, should continue to advocate for stronger clean energy legislation like state decarbonization plans and encourage their PUCs to work in tandem with state legislators to reduce carbon emissions and the cost of producing electricity by using renewable energy and IRA funding.
  1. Federal agencies should continue adopting environmental regulations like the EPA 111 rules that work in tandem with the “carrots” of IRA. Enforcing strong federal environmental regulations can ensure uniformity across states, despite differences in state-level legislation and PUC regulations.

Read the policy brief, and if you live in North Carolina, talk to your neighbors and your elected officials about the energy future you’d like to see.

P.S. You can help spread the word about this brief by liking and sharing on Twitter/X, Facebook, Instagram, and LinkedIn.

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Sophie Loeb | September 17, 2024

New Policy Brief Urges Public Utilities Commissions to Rise to the Clean Energy Challenge

On September 17, the Center for Progressive Reform published a new policy brief, Rising to the Challenge: How State Public Utilities Commissions Can Use the Inflation Reduction Act to Advance Clean Energy. This brief examines the ability of public utilities commissions (PUCs) to incorporate Inflation Reduction Act (IRA) funding into their energy planning processes in order to expand the uptake of renewable energy resources at a lower cost to consumers.

Minor Sinclair, Spencer Green | September 12, 2024

Announcing Three New Member Scholars at the Center for Progressive Reform

The summer of 2024 will be remembered for many things, but here at the Center for Progressive Reform, what most struck us was that it was the year that the administrative state broke through into public consciousness. From the unexpected virality of, and backlash against, Project 2025 — a massive right-wing legal manifesto as aggressive as it was arcane — to the Supreme Court regulatory rulings that made headlines for weeks, this year’s political news drove home that the work we do to protect the environment, the workforce, and public health matters very much to we, the people when these things are under attack. In this context, we approach the task of inviting new members to join us in our work with seriousness, but also with much excitement. This spring, we reviewed nearly two dozen exceptional candidates from the fields of law and public policy. Today, we are pleased to announce that we have a cohort of three excellent scholars to add to our ranks.

Grayson Lanza | August 8, 2024

CAFO Lagoons in North Carolina: A Case Study in Advocacy and State Administrative Law

Eastern North Carolina’s landscape is pocked with artificial lagoons holding a noxious liquid that causes suffering both for local residents and the global climate. The liquid? Hog manure, held in giant, open-air pits that are used by large-scale industrial facilities called concentrated animal feeding operations (CAFOs), In CAFOs, operators raise large numbers of animals in confined spaces that allow for easier feeding and waste management — and higher profits.

Federico Holm, Johan Cavert, Nicole Pavia | August 1, 2024

Beyond NEPA: Understanding the Complexities of Slow Infrastructure Buildout

Building clean energy infrastructure quickly will be critical to avoiding the worst impacts of climate change while bolstering grid resilience and flexibility. Much of the discourse portrays infrastructure deployment as plagued by bureaucratic and legal holdups that should be eliminated or drastically curtailed in service of faster development — with the National Environmental Policy Act (NEPA) often taking sole blame for these delays. But is that really where the problem is? Our analyses suggest that solely blaming NEPA for permitting delays overlooks other contributing factors.

James Goodwin | July 29, 2024

My Tribute to Former Center President and Member Scholar Rena Steinzor

When I think about what makes the Center for Progressive Reform the “Center for Progressive Reform,” one name comes to mind: Rena Steinzor. This year, Rena is officially retiring from her “day job” as Professor of Law at the University of Maryland Francis King Carey School of Law, so it is a fitting occasion to reflect on what her “side hustle” at the Center meant for the organization and for me personally.

Daniel Farber | July 23, 2024

The D.C. Circuit and the Biden Power Plant Rule

Last Friday, the D.C. Circuit issued a two-page opinion refusing to stay a regulation. The D.C. Circuit frequently denies stays, but this ruling was notable for three reasons: It allows an important climate change regulation to go into effect; it clarifies an important legal doctrine; and it has a good chance of being upheld on appeal — even though the U.S. Supreme Court overturned a previous regulation on the same subject.

Daniel Farber | July 11, 2024

Understanding Loper: The Grandfather Clause

To cushion the shock of abandoning Chevron, the U.S. Supreme Court created a safe harbor for past judicial decisions. This was well-advised. The Court itself applied Chevron at least 70 times, as did thousands of lower court decisions. The key question will be the scope of the grandfather clause.

Daniel Farber | July 10, 2024

After Loper: The Primacy of Skidmore

Regulations that were upheld by the courts during the Chevron era have some protection, but new regulations will be fully subject to Loper Bright rather than Chevron. The general refrain in the Loper opinion is “Skidmore deference.” What does that mean and when does it apply?

Daniel Farber | July 8, 2024

Understanding Loper: Delegation and Discretion

One thing about the Loper Bright decision is obvious: it overruled Chevron. So much for past law. What about the future? How should courts review agency regulations now that Chevron is gone? This post tackles a key paragraph in the Loper opinion where the U.S. Supreme Court discusses congressional delegation of authority to agencies. The Court discusses three types of statutes, and it will be crucial for judges in future cases to identify which type is present.