How will the incoming Biden administration affect energy policy, both in Washington and around the country? Advanced Energy Economy, a trade group for renewable and energy efficiency firms, took a shot at that question at a zoom conference on Wednesday, suggesting that the new administration will look far more favorably on renewable energy, energy efficiency, and demand-side management that the Trump crew.
AEE was founded in 2011 by Silicon Valley entrepreneur Tom Steyer, aimed at promoting energy policies to combat global warming. Steyer sought the Democratic presidential nomination in 2020, but dropped out in March after Biden’s Super Tuesday sweep.
Jeff Dennis, general counsel, looked at the national picture. He said Biden’s win, and the Democrats gaining the Senate (with a razon-thin majority) means “we could see a Democratic majority” at the Federal Regulatory Commission relatively quickly. FERC currently consists of two Democrats and three Republicans, with Republican James Danly as chairman. The administration will name one of the two Democrats on the commission to be the chairman.
Under law, FERC consists of five members, appointed to staggered five-year terms, with a majority from the party in control of the White House.
Neil Chatterjee, Republican and formerly chairman until Trump ousted him in favor of former FERC general counsel Danly, has a term that expires in June. Some have speculated that Danly might step down. The Fosters Reportv quoted Christine Tezak, managing director at ClearView Energy Partner, “It is customary but not required that a chairman appointed by an outgoing administration to tender his resignation to allow a new president to fill the seat and change the majority on the five-member Commission.”
AEE’s Dennis said FERC could “quickly” address ongoing policy disputes over the “minimum offer price rule” (MOPR) in the PJM Interconnection and an “identical cousin” in the New York Independent System Operator. The MOPR controversy has been on the commission’s agenda for many years.
He also predicted that a Biden FERC “will prioritize public participation” in FERC proceedings. He noted that a requirement that the commission include mechanisms for increased public participation “has long been a part of the [Federal Power Act] but has never been funded or implemented.”
AEE’s Leah Rubin Shen, looking beyond on the FERC to other Biden federal agency nominees, said there are “lots of opportunities for getting” Biden nominations approved “across the board.” While the Senate can lock up legislation with the filibuster, it can’t delay nominations, which require only a majority. She said “overarching” greenhouse legislation might be possible, using the tactic of “reconciliation,” an arcane legislative procedure that by-passes the filibuster that requires 60 votes.
Early on, the Trump administration tried to use reconciliation to overturn the Obama administration’s Affordable Care Act. That failed when the late Sen. John McCain (R-Ariz.) voted “no,” denying the GOP a simple majority.
Looking beyond Washington, Suzanne Bertin, who works on Texas issues for AEE, noted that the Texas legislature meets only in odd-numbered years, which means it will be gathering in Austin this year. She said the focus of the 2021 session will be “on how to grow the economy and jobs.” That will include advanced energy (Texas is the nation’s leader in wind energy), “including use of federal stimulus funds.” She added that “transportation is a hot topic in Texas,” with discussion on whether and how to deal with the fact that electric vehicles avoid state gasoline taxes.
In California, said AEE’s Amisha Rei, the key will be the “working relationship between state and regional governments and the incoming administration.” She said California is likely to “feel more comfortable on the regulatory side,” after dueling with the Trump administration for four years as Washington tried to overturn state regulations more stringent that what Washington wanted. She also said she expected a greater “appetite around development of a regional transmission organization in the West” and “more regional collaboration.”
–Kennedy Maize
kenmaize@gmail.com