A Critical Moment At A Critical Agency as the Baton Goes from Wellinghoff to Ron Binz (Hopefully)

Aug 28, 2013 by  | Bio |  Leave a Comment

There are few more important, and more obscure, agencies in Washington D.C. than the Federal Energy Regulatory Commission the regulator of the wholesale electricity transmission systems and “bulk” (imagine big quantities, like giant tubs from Costco) U.S. electricity markets.

FERC oversees an incredibly complex electricity system.  Our grid meshes together rural systems, where power lines stretch hundreds of miles without interruption, with dense and sophisticated urban networks where millions of people are packed together and drawing power to charge cell phones, watch television, use computers, and make  hospitals, factories, homes and offices all hum.

The age of the elements of these incredibly diverse systems range from “physically touched by Thomas Edison” to “installed hours ago” with all that suggests in terms of technological sophistication.

On top of that physical complexity from a legal and regulatory perspective the American system is a bewildering mix of business and regulatory models with some places served by utilities that own generators and others, like nearly all of New England, served by utilities who are actually generally forbidden from owning power plants. And in contrast to many other parts of the world we mix together privately and publicly owned electricity systems, with many customers served by private “Investor Owned Utilities” but many others served by public entities like “municipal light companies” – and just to make life even more complicated our large generation is mostly owned by private companies with some giant exceptions in the form of hydroelectric dams and other generators owned by States like New York or Federal entities like the Tennessee Valley Authority.

This last bit of complexity is rooted deep in history, notably the declaration by Franklin Roosevelt, when running for President, that he generally favored private ownership of electricity generation and systems but “that where a community — a city or county or a district is not satisfied with the service rendered or the rates charged by the private utility, it has the undeniable basic right, as one of its functions of Government, one of its functions of home rule, to set up, after a fair referendum to its voters has been had, its own governmentally owned and operated service.”  This idea played out in his long run as President when the cornerstones were laid for both gigantic federally owned systems and for the FERC model of regulated private systems.

It is no wonder, given this complex mix of elements that some think the American electricity system is ungovernable.  But a few leaders have succeeded in using the tools available to them to reshape this unwieldy system and steer it in a good direction.  One of those leaders is the current, and soon to be former, FERC Chairman Jon Wellinghoff.

During Chairman Wellinghoff’s tenure FERC has instituted important reforms – pushing time and again for changes that remove the barriers to the new clean resources, like energy efficiency and renewable energy (like wind and solar) that are the rising stars of our energy system.   Under his leadership FERC has pushed aggressively against entrenched policies that gave a leg up to existing generators and utilities simply because they were already in place.  The idea of “pay for performance” that meant that new technologies could earn revenue from providing services to the electricity might sound simple and obvious but FERC has had to fight to make that idea a central tenet in its decision making, beginning with the critical idea (incubated in New England) that efforts to reduce electricity demand should be compensated in markets just like resources that generate power.  Application of the pay-for-performance principle has meant that new technologies that flourished in a small pilot market here in New England can spread across the nation – opening doors for electricity storage systems that will revolutionize the way we generate and use energy.

The biggest single effort that FERC has undertaken during the Wellinghoff era is almost certainly the Order 1000 initiative. Order 1000 mandated thoughtful regional planning of the electricity system across the nation and consideration of public policies, like state renewable energy standards and greenhouse gas reduction mandates, in electricity system planning and infrastructure decisions, among other systemic reforms.  This mammoth effort to reshape the current national electricity system is still in progress but should pave the way for significant progress in managing the energy system transformation and transition beginning to unfold around us.

The departure of Jon Wellinghoff from FERC does not have to mean the end of progress on all of these fronts.  FERC has maintained a collegial and effective decision making process that cuts across party lines (which is a pretty stunning thing to say in 2013 about any institution with a mix of Commissioners from the two main political parties).  Very often its decisions are unanimous or feature a very focused and specific dissent from one or two Commissioners disagreeing with some specific aspect of the decision but accepting much of what the majority are doing and saying.

This uniquely effective institution will maintain its balance and continue to make progress if Ron Binz, the nominee proposed by President Obama to take over as Commissioner and Chairman of FERC, is confirmed by the Senate.  Mr. Binz is accustomed to working across party lines as he comes from the quintessentially “purple” state of Colorado where he had a solid record as a consumer advocate, chair of the state utility commission and energy expert and innovator.

We are in a time of change and challenge: coal plants are retiring and the United States shows signs of finally getting serious about using energy efficiently while reaping the power of the wind and the sun.  Such times call for steady leadership at the essential Federal energy regulatory body.  That is what Jon Wellinghoff has shown – and it is what Ron Binz can provide going forward.

Courting Cleaner Water

Apr 7, 2010 by  | Bio |  1 Comment »

U.S. Supreme Court Justice John Paul Stevens’ announcement that he will retire from the United States Supreme Court will bring some much needed attention to the larger issue of judicial nominations under the Obama Administration. 

These days, it is hard to  find a good word to say about the ultraconservative majority of the United States Supreme Court that Justice Stevens has tried, with limited success, to counterbalance.  That’s especially true for those who care about clean water (query: because clean water is fundamental to human survival and prosperity, shouldn’t we all care about clean water?)  In a few short years, the Roberts’ Court’s rulings have managed to seriously undermine and restrict one of America’s most important and successful laws–the Clean Water Act. 

For example, the NewYork Times recently reported on the chaos one of the Court’s rulings has created:

Thousands of the nation’s largest water polluters are outside the Clean Water Act’s reach because the Supreme Court has left uncertain which waterways are protected by that law, according to interviews with regulators.   As a result, some businesses are declaring that the law no longer applies to them.  And pollution rates are rising.

A majority of these Justices seems intent on handing down a death sentence to the Clean Water Act

In another example from 2009, Coeur Alaska v. Southeast Alaska Conservation Corps., the Court badly misinterpreted the CLEAN WATER ACT to reach the conclusion that a gold mining operation was entitled to a permit allowing it to discharge “210,000 gallons per day of mining waste into Lower Slate Lake, a 23-acre subalpine lake in Tongass National Forest,” even though the ” ‘tailings slurry’ ” would “contain concentrations of aluminum, copper, lead, and mercury” and would “kill all of the lake’s fish and nearly all of its other aquatic life.” 

President Obama has an important opportunity, actually I would argue it’s a responsibility, to rebalance the federal judiciary after years of ultraconservative domination and transformation.  (If you want to understand how the judiciary was so effectively radicalized by the right, read Jeffrey Toobin’s book “The Nine: Inside the Secret World of the Supreme Court.”).  The administration’s slow pace and cautious character in nominating people to fill court vacancies has been drawing criticism since November of last year as evidenced by this New York Times editorial.  Unfortunately, recent reporting in the L.A. Times indicates that President Obama still hasn’t made much progress due to a combination of White House inattention and timidity and Republican obstructionism in the Senate.

Terrible judicial decisions, like those discussed above, are turning this country’s essential environmental protection laws on their heads and at the same time putting the public health and environmental sustainability of this country at great risk.  America has some excellent environmental laws.  To be sure, we need to make them stronger to deal more effectively with newly-understood challenges like global climate chaos.  But when we have judges who are ideologically unwilling to affirm the pollution-controlling principles set forth in the laws, we have no hope of achieving the level of environmental protection essential for our continued national prosperity.  

If we want to ensure that our environmental laws work to keep us healthy and happy, we must urge President Obama to follow the lead of Franklin Delano Roosevelt in appointing judges like the late Supreme Court Justice William O. Douglas. 

Former Supreme Court Justice William O. Douglas understood the purpose of our environmental laws and the values that motivated their enactment by bi-partisan majorities of Congress

Justice Douglas truly understood the values that informed Congress’ adoption of such successful laws as the Clean Water Act, the Clean Air Act, the National Environmental Policy Act, and the Wilderness Act.  In his 1961 memoir “My Wilderness; East to Katahdin,” Douglas expounded on the value of rivers as public resources:

“Rivers are choice national assests reserved for all the people.  Industry that pours its refuse into rivers and the other commercial interests that use these water highways do not have monopoly rights.  People have broader interests than moneymaking. Recreation, health, and enjoyment of aesthetic values are part of man’s liberty.  Rivers play an important role in keeping this idea of liberty alive.”

For this and all the other ideas of liberty that are threatened by a judiciary dominated by radical conservatives, we must take action.  Call or email the White House and ask president Obama to find us the men and women who will follow in the tradition of Justice Douglas, and help the president fight to get them appointed to the federal courts.