Energy policy is becoming more complex, contentious and perhaps fleeting as grid operators look for long-term certainty in their ability to serve increasing load as the electric supply fleet rapidly turns over. The past year has seen numerous federal actions, investigations and proceedings on critical elements for energy project development such as land access, siting and permitting, interconnection and of course, transmission. Now, with the incoming administration, many of these platforms may be re-evaluated.
Utilization of public lands
The Bureau of Land Management is becoming increasingly pivotal in the trajectory of the United States energy economy. Be it for mineral and fossil fuel extraction, renewable project siting or corridors for large-scale transmission, access to federally owned public land is coveted by a broad and disparate group of stakeholders. Agency actions from the outgoing administration such as the BLM Western Solar Plan may be under scrutiny with new leadership and majorities in Washington.
The expansion of energy projects on public lands stands at a critical juncture with new leadership in Washington. The transition will bring heightened scrutiny to existing policies, raising complex questions about rebalancing environmental protection, economic development and public access. As the new administration reassesses the overall objectives of the Dept. of Interior, the agency’s decisions will fundamentally reshape where and how new energy projects are developed, signaling a potential paradigm shift in public lands management.
The transmission bottleneck
While renewable energy potential on public lands is promising, a significant challenge looms: transmission infrastructure. Recognizing this bottleneck, the Biden Administration empowered the Dept. of Energy (DOE) and the Federal Energy Regulatory Commission (FERC) to expedite transmission projects.
This push for rapid transmission expansion ignited debates over issues such as cost allocation and federal versus state jurisdiction. New leadership at the DOE is expected to require close coordination between federal, state, and local authorities if the bulk electric system is to be expanded.
Judicial complications: The Loper Bright decision
As if the policy landscape weren’t complex enough, several 2024 judicial decisions added another layer of uncertainty. The Supreme Court’s ruling in Loper Bright Enterprises v. Raimondo, which reversed long-standing precedent for agency deference established by the Chevron decision, will have significant implications for energy policy. By limiting the reach of administrative agencies’ authority, Loper may necessitate securing key energy initiatives through legislation rather than relying solely on administrative actions.
This shift could introduce greater uncertainty in regulatory efforts, potentially slowing down or complicating energy infrastructure projects. For instance, BLM’s decisions on land use for energy projects or FERC’s orders on transmission may face increased legal scrutiny. The energy sector must now navigate a landscape where administrative actions may carry less weight, creating a potential need for more prescriptive, comprehensive legislation to create long-term certainty for new energy policies.
The Manchin-Barrasso Energy Permitting Reform Act of 2024 was one example of a comprehensive and prescriptive piece of legislation that gave very specific directives to the agencies that would be responsible for executing the directives of the bill. The legislation was not passed before the end of the year, though, giving the incoming Congress the ability to refine the bill to more closely align with the priorities of the new majorities.
Charting the path forward
The future of America’s energy economy will be determined by how effectively stakeholders navigate this complex web of public land use, transmission challenges, legislative changes and judicial decisions.
To move forward effectively:
- Policymakers must craft comprehensive legislation that provides clear guidelines for energy development, balancing economic needs with environmental protection.
- Federal agencies like BLM and FERC must adapt to the post-Loper Bright landscape, ensuring their actions have firm Congressional backing.
- State and local governments must actively engage in transmission planning, working in concert with federal initiatives to ensure grid reliability and expansion.
By addressing these objectives head-on, the United States can build a modern grid capable of meeting the demands of the future. The path forward is complex, but with thoughtful policy, a more reliable and resilient energy future is within reach.
Some if not a majority of electric utilities are formulating in their IRP upgrading or constructing new infrastructure with an energy charging infrastructure stragedy already in place. The next move is adding this to CIP expenditure queues for the future. Getting all stakeholders on the same page has and is still a problem. Regional ISOs, Generators and TaDS (Transmission and Distribution System) are all looking for a better position in the infrastructure upgrade ‘challenge’.
The industry has to move on from the paradigm of, burn fuel, generate electricity and dispatch as the grid demands, to take over generation from (any) resource, store the energy, time shift, then dispatch as the grid demands more power in say 30 minute increments instead of running many fueled generation plants in standby reserve, whether the energy is needed or not, these standby plants and Peaker plants are burning fuel to be “ready” to service grid load demands.