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December 25, 2025

DC Circuit Upholds FERC on PJM Stability Method

The D.C. Circuit Court of Appeals on Tuesday upheld FERC’s 2019 ruling that directed PJM to implement a new cost allocation method for transmission projects addressing stability issues (PSEG v. FERC, 19-1091).

Public Service Electric and Gas and PPL Electric Utilities petitioned the court for review of several FERC orders concerning cost sharing for upgrades to the PJM grid after the commission directed the RTO in December 2019 to refile tariff revisions on the allocation method. FERC in 2018 had reversed its 2016 decision that approved cost allocations for the Artificial Island reliability project in New Jersey, shifting costs initially allocated to stakeholders in Maryland and Delaware to utilities in New Jersey. (See FERC Lets Original PJM Stability Method Stand.)

PJM transmission owners and New Jersey agencies argued that the commission’s reversal of the 2016 order was “inadequately explained, lacked substantial evidence and improperly focused on assigning costs to violators rather than beneficiaries.” The petitioners also asserted that the 2018 order was inconsistent with Order 1000 and that FERC “failed to respond meaningfully” to the arguments against rehearing.

FERC, which was supported by stakeholders in Maryland and Delaware, maintained that it “engaged in reasoned decision-making.”

“We conclude the commission reasonably decided to adopt a different cost-allocation method for the type of project at issue here and adequately explained its departure from the cost allocations it had approved in 2016,” the court found in denying the petitions for review.

Because the dispute centers on the commission’s exercise of its rate-setting authority, the court said it was “particularly deferential” to FERC’s determinations.

The petitioners and New Jersey agencies challenged FERC’s decision to grant rehearing of the 2016 order on three grounds, particularly contending that the commission “failed to adequately justify” its finding that the solution-based distribution factor (DFAX) method was unjust and unreasonable when applied to the Artificial Island project. (See FERC: Stability Deviation Method Best for Artificial Island.)

PJM Stability Method
The Hope Creek and Salem nuclear units on Artificial Island in southern New Jersey | BHI Energy

PJM assigns 50% of the costs of regional facilities (500-kV lines or higher and double 345-kV lines) and “necessary” lower-voltage facilities required to support regional lines on a load-ratio share basis for reliability projects, while the remaining 50% of costs is allocated using DFAX.

FERC originally determined using the methodology that 93% of the $280 million Artificial Island project cost would have gone to Delmarva Power & Light. But the commission later agreed with Maryland and Delaware utility regulators, determining that while Delmarva customers would use new transmission lines from the Artificial Island project, the utility neither caused the need for the lines nor benefited from the flows.

“As the commission explained in the 2019 order, although the Delmarva zone ‘will use the Artificial Island project as measured by the solution–based DFAX method,’ it would not actually derive any benefit from those flows … because its transmission system already was adequate to serve its load,’” the D.C. Circuit said. “Petitioners’ contentions therefore provide no basis to set aside the commission’s decision to grant rehearing of the 2016 order.”

The petitioners also contended that FERC’s reversal was contrary to Order 1000 and that it “failed to meaningfully respond to their arguments in support of the solution-based DFAX method and in opposition to reopening the record.”

“None of these challenges has merit,” the court said.

SPP Launches Review of Storm Response

SPP has launched a comprehensive review of its response to the recent severe winter storm that swept through its footprint, leading to the first rolling blackouts in the grid operator’s 80-year history.

“You will hear me use the term ‘unprecedented’ a lot today,” COO Lanny Nickell told the RTO’s Board of Directors and Members Committee Tuesday as he reviewed the mid-February events leading up to the controlled outages.

True to his word, Nickell referred to the “unprecedented” energy imports from neighbors, the “very cold, unprecedented” temperatures in its footprint and the “unprecedented” event as a whole.

SPP storm response
The middle of the United States saw the coldest weather in mid-February. | SPP

With nearly 35 GW of generation capacity unavailable, SPP twice reached Level 3 energy emergency alerts and called for load sheds totaling nearly 3.3 GW Feb. 15-16 over a four-hour time period. The RTO reduced its EEA levels and returned to normal operations on Feb. 20. (See ERCOT, MISO, SPP Slough Load in Wintry Blast.)

While SPP’s experience paled in comparison to ERCOT’s, it recommended to the board that staff and stakeholders work together to review the grid operator’s performance during the event. The Members Committee was unanimous in endorsing the recommendation, which the board also approved.

“Staff will learn from this. There’s no doubt in our minds that our best can be better next time,” CEO Barbara Sugg said, “not only because we identified opportunities for SPP to improve, but we can improve those improvements.”

Sugg complimented SPP member collaboration with the RTO, especially when issuing conservation calls. She also said the grid operator wouldn’t have succeeded in minimizing the controlled outages without energy imports from MISO and PJM.

SPP storm response
Generation outages forced SPP to call for rolling blackouts. | SPP

“Being a part of the Eastern Interconnection absolutely paid off for us,” Sugg said. “[The imports] were absolutely critical to us.”

The review is intended to assess SPP’s performance, transparently engage with stakeholders, find operational and market issues, develop recommendations for future improvements and raise “our joint capabilities.”

Nickell will chair the newly-formed Comprehensive Review Steering Committee  overseeing and coordinating a process broken into five focus areas: operational, financial, regulatory, communications and a review of market pricing by the Market Monitoring Unit. The group will provide a final assessment and recommendations to the board in July.

The financial review will likely be of most interest to those concerned about SPP’s market performance, as numerous offers exceeded the RTO’s $1,000/MWh cap and prices peaked at $4,274/MWh during the event. Legal staff received FERC approval for two expedited tariff filings: an up to three-day delay to post settlement statements for the Feb. 13-16 operating days (ER21-1185) and a limited two-week waiver for load-serving entities’ collateral calls, normally required within two days (ER21-1193).

The commission noted SPP’s extreme weather conditions, operating challenges, EEA alerts and the potential for repricing in approving the requests.

“We’re very well aware of the settlement issues,” Sugg said.

CFO Tom Dunn will lead the team that reviews the settlement and credit issues and looks at make-whole payments.

The Monitor held a pair of calls last week to discuss the energy offers above the $1,000/MWh cap, which fall under FERC orders 831 and 831-A. The orders require that energy suppliers receive a reasonable opportunity to recover their actual costs of providing energy. The MMU will verify and calculate actual cost reimbursement for energy offer curves above $1,000/MWh.

Market participants have up to 35 days after the operating day to submit documentation for verification and the Monitor has up to 45 days after the operating day to evaluate the information, resolve questions and approve or reject the offers.

SPP is also the subject of a joint inquiry by FERC and Slow Storm Restoration Sparks Anger in Texas, South.)

Missouri’s Public Service Commission is among the state regulators that have opened an investigation into the event and the resulting rolling blackouts and “extreme” natural gas price spikes. Staff will look into utilities’ preparation for the event, using analysis from RTOs, FERC, NERC, market monitors and other bodies.

Butler-Tioga Order 1000 Project Paused

The board and Members Committee also approved pausing the selection process for a competitive upgrade in southeastern Kansas while SPP staff completes a re-evaluation of the project.

The board in February authorized the 138-kV project over protests from Evergy, the incumbent transmission owner. The Kansas City utility has said the project will collide with regional planning efforts and requested a restudy Feb. 5, shortly after SPP issued a request for proposals. (See SPP Board to Consider Controversial Kansas Project.)

After reviewing Evergy’s request, staff determined a pair of transmission upgrades “germane” to the area were not included in the assessment that initially identified the upgrade.

“In consideration of those projects, do we know the [competitive project] is still an appropriate economic project to move forward?” Antoine Lucas, SPP’s engineering vice president, asked. “Based on the magnitude of the two upgrades, we have determined those are material modifications to the system and specific to the system that would be served by the transmission upgrade. We think there’s more assessment to do.”

Staff will re-evaluate the need for the Butler-Tioga project in fewer than 30 days, applying the same economic models used to identify the upgrade after adding the two omitted upgrades and new costs.

Lucas said staff would bring a final recommendation before the board during its April 27 meeting.

The RFP submission deadline will remain Aug. 2.

EV Market Gaining Momentum in North Carolina

2020 was an encouraging year for the electric vehicle industry in North Carolina, with EV sales growing by 5% while nationwide sales dropped 3% during the COVID-19 pandemic, according to a recent report from the Southern Alliance for Clean Energy (SACE) and Atlas Public Policy.

The report provides a deep dive into the stakeholders, policies and trends that it says could position North Carolina as a leader in EV adoption in the Southeast. But in a blog accompanying the study, Stan Cross, electric transportation policy director at SACE, said that the challenge before the state “is figuring out how to accelerate consumer and fleet EV adoption while ensuring all residents have equitable access to electric mobility.”

For example, the report notes that North Carolina does not currently offer any financial incentives or rebates for EV adoption. California, which leads the nation in EV sales, offers incentives to buyers of new as well as used EVs, to help stimulate the second sales market and improve accessibility.

The North Carolina Department of Transportation is considering establishing financial incentives for vehicles and charging infrastructure, according to the report, but legislation has yet to be introduced. Other high-impact recommendations in the report include creating EV-ready building codes and electrifying the state fleet, public transit and school buses.

Electric Vehicle Market North Carolina
EV sales in North Carolina have grown close to four-fold in the past five years. | Southern Alliance for Clean Energy

Transportation electrification is a core element of Democratic Gov. Roy Cooper’s plan to reduce North Carolina’s greenhouse gas emissions 40% below 2005 levels by 2025, as laid out in a 2018 executive order. Transportation currently accounts for 42.5% of the state’s GHG emissions, according to the Energy Information Administration, and to put a dent in those figures, Cooper wants 80,000 zero-emission vehicles (ZEVs) on the road by 2025.

Cooper joined with governors from 14 other states and the District of Columbia last July to sign a memorandum of understanding committing the state to ensuring 100% of all medium- and heavy-duty truck sales be ZEVs by 2050. North Carolina is the only Southeast signatory.

While planning North Carolina’s programs for the MOU is still in the early stages, stakeholder consultations are at its core.

In a Feb. 22 presentation to the North Carolina Department of Environmental Quality (DEQ) Environmental Justice and Equity Advisory Board, Mike Abraczinskas, director of DEQ’s Division of Air Quality, emphasized that “a key element of this action plan is to focus on disadvantaged communities.”

“Strong stakeholder engagement in North Carolina’s efforts will be a central part of this program,” Abraczinskas said. “And we are starting that here today.”

Looking ahead, two key challenges to equitable transportation electrification face the state: funding and active utility engagement. Tapping into outside funding sources will be critical to ensure that underserved communities in heavily polluted areas can benefit from transportation electrification as soon as possible, the report says. In 2020, the first round of awards from the state’s share of the Volkswagen settlement were announced, including $6 million for electric school buses.

The state is slated to receive $92 million in the settlement Volkswagen is paying for its fraudulent emissions reporting. Another $64 million of North Carolina’s allocation remains to be awarded, and the report sees more of it going toward bus and other transportation electrification.

On the utility front, Duke Energy’s $76 million proposal to support transportation electrification was only partially approved by the North Carolina Utility Commission in November. The state’s largest investor-owned utility got the go-ahead for spending $25 million to install both DC fast and 220-V Level 2 chargers at public and multi-unit housing sites. The NCUC sent Duke back to the drawing board on other parts of its plan, requiring it to develop EV-charging rates to ensure community involvement in program design and to show clear net benefits for customers.

Critics of Duke’s plan said that equity was largely overlooked. For example, the NC Sustainable Energy Association argued at the November NCUC hearing that without a stronger focus on equity, the 30 electric buses in the plan ― to be distributed on a first come, first serve basis ― “would benefit wealthier counties and cities that would use up the rebates before poorer areas are able to participate.” NCSEA also questioned whether Duke’s plan to install Level 2 chargers in underserved communities is achievable.

Electric Vehicle Market North Carolina
One of the challenge ahead — getting more EVs and EV chargers in less populated and rural areas in the state. | Southern Alliance for Clean Energy

The SACE report shows that at present, EV adoption is concentrated around North Carolina’s largest cities ― the Research Triangle of Raleigh, Durham and Chapel Hill, plus Charlotte and Ashville.

The report also highlights innovative programs being developed by the state’s municipal utilities and electric cooperatives, which could also provide models for the IOUs. North Carolina’s Electric Cooperatives, 26 cooperatives serving 2.5 million people, offers $3,500 rebates for qualified customers purchasing a Nissan Leaf. ElectriCities, a nonprofit organization of municipally owned electric utilities in the state, provides matching grants to help members develop community EV plans and present program options for their cities.

As North Carolina seeks to grow its EV market, the state can look to its neighbors for further policies and initiatives to implement, the report said. The Virginia Senate is currently reviewing House Bill 1979, which would create a rebate program for new and used EVs.

In 2018, Virginia also joined the Transportation and Climate Initiative, a collaborative effort by nine New England and mid-Atlantic states to reduce pollution and advance transportation electrification, as the only Southeast signatory. North Carolina recently started working with TCI, helping develop a new multi-state program investing $300 million per year in clean transportation. While neither North Carolina nor Virginia have officially signed on to this new program, they could do so in the future. Joining such regional initiatives could improve connectivity of EV infrastructure and programs up and down the East Coast, the report says.

By building on the MOU and Cooper’s 2018 executive order, and addressing the challenges of equity, funding and utility engagement, the report says the state has the potential to “spur investment in manufacturing, create clean jobs, and rapidly electrify both public and privately-owned vehicles.”

Nuclear Power Wants Some Net-zero Love

Nuclear accidents made Three Mile Island, Chernobyl and Fukushima household words. But how many people know about Calvert Cliffs, which has been operating quietly on the Chesapeake Bay since the mid-1970s?

Calvert Cliffs generates 1,756 MW of power, equal to 38% of Maryland’s needs and representing more than three-quarters of the state’s carbon-free generation. Yet nuclear power is often ignored in discussions about getting to net-zero carbon emissions, according to a new coalition, Nuclear Powers Maryland.

Led by the Nuclear Energy Institute, the American Nuclear Society and Exelon Generation, the coalition’s goal “is really to educate and advocate for nuclear in the state,” said spokeswoman Anne Larimer Hart, when asked what the group seeks to achieve. There is “no specific [legislation] at present.”

The coalition introduced itself Tuesday with a webinar and the launch of a petition drive supporting nuclear power’s role in addressing climate change while warning that “opponents continue to undermine nuclear power, which could put this valuable carbon-free energy resource at risk and drag us backward in the transition to clean energy.”

It also released the results of a survey of 600 “media-attentive and engaged voters” statewide and found that while 91% say it’s important for state officials to reduce carbon emissions, including 74% of Republicans, little more than half said they are familiar with Calvert Cliffs, which is jointly owned by Exelon and Électricité de France (EDF).

Joining NEI CEO Maria Korsnick on the kickoff Zoom meeting were Marilyn Kray, Exelon’s vice president of nuclear strategy and development, and officials of two Maryland-based companies: James Howe, vice president of government relations at uranium enrichment company Centrus Energy, and Clay Sell, CEO of X-energy, a nuclear reactor and fuel design engineering company.

“In order for Maryland to achieve its own stated clean energy aspirations, it cannot get there without continued operation of the Calvert Cliffs plant and without building additional new nuclear plants here in Maryland,” Sell said. Calvert Cliffs is licensed until 2034 (Unit 1) and 2036 (Unit 2).

In October, the Department of Energy selected X-energy and TerraPower, of Bellevue, Wash., to build two advanced nuclear reactors in public-private partnerships under its Advanced Reactor Demonstration Program (ARDP). TerraPower, the creation of Microsoft co-founder Bill Gates, will demonstrate the sodium‐cooled Natrium fast reactor, on which it has partnered with GE Hitachi Nuclear Energy.

X-energy will build a four-unit plant based on its Xe-100 reactor design, a high-temperature gas-cooled reactor that can produce 320 MW of electricity for baseload or load-following and 800 MW of thermal output that could be used for industrial heat applications, such as desalination and hydrogen production.

X-energy announced Monday that it had signed the ARDP Cooperative Agreement, under which DOE will invest about $1.23 billion in the company’s project. It will be built in Washington state with Energy Northwest, a consortium of 27 public utility districts and municipalities that operates the Washington Columbia nuclear plant in Richland. Completion is planned for 2027.

Sell said his company’s four-unit design requires only a 22-acre footprint, making it suitable for repurposing retired oil- and coal-fired generators. It will use tri-structural isotropic (TRISO) particle fuel, which it says can withstand very high temperatures without melting. The company says its “meltdown-proof ‘walk-away’ safety” allows a 400-yard safety perimeter as opposed to the 10-mile emergency planning zone for traditional reactors.

“That gives us a number of unique opportunities that we could seize in Maryland,” he said. The U.S. Nuclear Regulatory Commission says it is involved in “preapplication activities” on X-energy’s reactor. NRC in September approved the final safety evaluation report for NuScale Power’s small modular reactor (SMR), making it the first SMR manufacturer to successfully complete the commission’s design certification application review. (See NRC OKs NuScale’s Small Modular Reactor Design.)

Kray said locating small nuclear reactors at former fossil fuel plants would take advantage of existing transmission lines and substations as well as water sources and plant staff. “You could fit one, or maybe two [small nuclear reactors] in what used to be the host site for a coal plant,” she said.

“The challenge we have is to create incentives and to create a political openness to make that happen,” Korsnick said. An NEI spokeswoman said the trade group is also supporting similar coalitions in Pennsylvania and Illinois.

Maryland Carbon Pricing Bill Rejected for 4th Time

A Maryland House committee on Monday rejected a proposed carbon pricing bill, with eight Democrats siding with seven Republicans in opposition. Only eight Democrats supported the bill in the 15-8 vote by the House Economic Matters Committee.

It was the fourth straight year that carbon pricing has failed to make it out of committee.

Sponsored by Del. David Fraser-Hidalgo (D), the Climate Crisis and Education Act (H.B. 33), would have imposed fees on fossil fuel sales and high-emitting vehicles to help reduce greenhouse gas emissions by up to 90% from 2006 levels by 2050.

Fees

The bill would impose a GHG pollution fee on all fossil fuels imported into the state for combustion.

The fee for non-transportation fuels would start at $15/ton of carbon dioxide equivalent on July 31, 2022, rising to $20 in 2023 and increasing by $5 each year through 2030 and remaining at $60 in 2031 and subsequent years.

The fee on transportation fuels would begin at $10/ton for July 31 through Dec. 31, 2022, increasing to $13 in 2023 and increasing by $3 each year through 2030 before leveling off at $37 in 2031. Public transit agencies would be exempt.

The fees would be collected at the first point of sale in the state and paid by the entity transporting the fossil fuel into the state, meaning wholesalers for fuel oil and gasoline and local distribution companies for natural gas.

“I am trying to change behavior — trying to do it in a pragmatic and realistic fashion,” Fraser-Hidalgo said in an interview with NetZero Insider.

Maryland Carbon Pricing Bill

Del. David Fraser-Hidalgo | Del. David Fraser-Hidalgo

At a Feb. 18 committee hearing on the bill, Fraser-Hidalgo faced skepticism over his contention that the bill could prohibit fees from being passed through as a direct cost to end users or customers of electric or gas utilities.

He cited a January 2020 letter from the state attorney general’s office that said it was “not aware of any general impediment to the General Assembly enacting such a prohibition.” But the letter added, “There may be circumstances under which the effects of such a pass-through prohibition could amount to an unlawful taking.”

“I know why this bill doesn’t go far [in the legislature]” said Del. C.T. Wilson, one of the Democrats who later opposed the bill. “The thought that they can’t pass fees down — I find that incredible that we’re supposed to believe that somehow, someway these businesses will not inject these fees and have the consumer pay for them.”

Wilson was also leery of promises that any impact on the poor would be addressed through rebate checks.

Republican Seth Howard was also dubious. “We heard big executives will pay for this. … Who is that? Is that somebody with a monocle and big bag of money running around? … A lot of these are publicly traded companies. … Hundreds of millions of people’s 401ks are diversified into some of these stocks.”

In written testimony, Brian Smith, state government relations and public policy manager for Washington Gas, said the no pass-through provision “could potentially raise Constitutional takings concerns.”

Smith said the utility calculated the $15/ton charge would increase residential gas bills by 7%, rising to 30% at $60/ton. Commercial rates would rise from 9% to 35%, he said. Columbia Gas of Maryland cited similar estimates.

“This would bankrupt companies I represent,” said Ellen Valentino, executive vice president for the Mid-Atlantic Petroleum Distributors Association.

Also opposing it were the Maryland Building Industry Association, the state Chamber of Commerce, Local 24 of the International Brotherhood of Electrical Workers, Maryland Farm Bureau, Maryland Transportation Builders and Materials Association and the Maryland Asphalt Association.

“This bill goes over and above what the Maryland Commission on Climate Change is recommending. The negative economic impacts to Maryland citizens will be substantial,” Colby Ferguson, director of government relations for the Farm Bureau, said. “To make matters worse, [some of] the fees that would be collect through the proposed fuel tax would not be used to cover the cost of transitioning to zero-emission vehicles, but instead to pay for a new Pre-K through 12 education program that has nothing to do with climate change.”

Supporters included the Audubon Naturalist Society, League of Women Voters, Sierra Club, the NAACP and the Maryland State Education Association.

Use of Proceeds

The fuel fees would generate $674 million in fiscal 2022, rising to $1.4 billion in fiscal 2026, according to a fiscal and policy note by the Department of Legislative Services.

The department said it was unable to provide a reliable estimate on the fees on high-emission vehicles.

Of the proceeds, the first $350 million annually would support public education through the Kirwan Commission fund.

The Household and Employer Benefit Fund would receive 50% of total revenues or all the revenues remaining after the distribution to the Kirwan fund, whichever is less, to mitigate the impact of fees on low- and moderate-income households and energy-intensive, trade-exposed employers.

Any revenues remaining after the distributions to the first two funds would go to the Climate Crisis Infrastructure Fund for investing in initiatives to expand the use of clean energy and energy efficiency or increase resiliency against climate change.

The bill would have provided the Benefit and Infrastructure funds a combined $324 million in fiscal 2023, rising to almost $1.1 billion in fiscal 2026.

Report: State Climate Policy Outcomes Hazy

The diversity and complexity of state climate policies make it unclear which approaches are driving the most progress on emissions reductions, jobs growth and energy resilience, a report by the Clean Resilient States Initiative said.

The report, “Clean Resilient States: The Role of U.S. States in Addressing Climate Action,” is the first in a series, part of a Center for Strategic and International Studies (CSIS) initiative to understand whether state climate policies are achieving their objectives.

To build an understanding of climate policy progress, the report analyzes how metrics for progress shape the perception of states’ performance. Context, the report said, is key to identifying the scenarios that advance emissions, jobs and resilience goals.

Emissions Reductions

An assessment of emissions patterns by individual states will help legislators and regulators identify which new policies can improve emissions reductions over time, according to the report.

Many states are reducing emissions through broad energy efficiency measures and renewables development. The report said a state’s emissions-reduction progress is best measured by the volume of emissions per unit of gross domestic product, or emissions intensity.

That metric reflects differences in states’ energy consumption and “is a good proxy for the relative cost and complexity of the pathway a state must take to reduce its emissions,” the report said.

A state with a lower emissions intensity, for example, might lean toward a service-based economy with low energy consumption. Conversely, a state with a higher emissions intensity might rely heavily on industries that use more energy to power large equipment.

An economy that depends on energy-heavy industry might need policy measures that go beyond energy efficiency and renewables development, including, the report said, “radical product innovations” to replace fossil fuels.

All states, however, are going to find it harder to reduce emissions over time, and new policies will need to address that challenge, according to the report.

Job Creation

The unique characteristics of a state define how and where new jobs are created by its climate policies, the report said.

Most states have advanced climate policies based on environmental and job benefits, but it isn’t clear whether climate policies always spur job growth, the report said.

Policies to transition to clean energy can be limited or cultivated by a state’s renewable resource characteristics, workforce education, infrastructure limitations and urban sprawl. The report said that two states may have similar energy policies, but one might need additional incentives, such as a workforce development initiative, to achieve similar levels of clean job growth.

An evaluation of policies designed to produce jobs within the context of workforce, infrastructure and resource characteristics will help state leaders understand green economic growth. It will also highlight when the promise of jobs “falls short” and why, the report said.

Resilience

The difference in states’ experiences with natural disasters “creates some ‘conceptual fuzziness’ about what resilience looks like in practice,” the report said.

States have begun to foster energy resilience through planning and energy system design based on assessments of their overall vulnerabilities to devastating climate-related events. Those assessments are driven by the memory of the most recent natural disasters, the report said.

The report cited the case of New York and New Jersey, which suffered widespread outages from Hurricane Sandy in 2012. The experience prompted both states to support development of “cleaner, more resilient energy systems” during recovery efforts, the report noted.

Disasters give momentum to options for hardening systems, such as using smart meters and demand response; deploying renewable resources with energy storage; or fostering islanding capabilities through microgrid development, which has occurred in California in the face of persistent wildfires.

State Climate Policy
The outcomes of state climate policies, such as building micogrids (pictured) for grid resilience, are hard to clarify because of their diversity and complexity, according to a new Center for Strategic and International Studies report. | SoCalGas

But the vast differences in states’ experiences with such disasters, along with their proportional responses, make it hard to assess whether resilience policy approaches are adequate or cost-effective, the report said.

The individual histories driving resilience initiatives may explain why there are few data on how states are pursuing energy resilience, according to the report.

Additional uncertainties may come from the broad deployment of renewables within state resilience strategies. Anticipating those uncertainties, the report said, will be “increasingly important as state energy transitions advance.”

Coordination is Key

The report contends that emissions reductions, clean energy growth and resilience are “distinct but interrelated imperatives” and “state success in each of these areas is partly contingent on efforts to strategize around and coordinate across all three.” It points to the increasing practice of states of including environmental justice considerations into energy policy with an eye to deploying clean resources and creating opportunities in communities that have been disproportionately affected by pollution and climate change.

“Since this emerging priority takes on dimensions of emissions reductions, clean growth and resilience, it cannot be fully accounted for without a wider view of how states are coordinating across policy areas,” the report said.

The report also highlights the benefits — and challenges — of states coordinating their activities and policies across borders.

“Willingness to coordinate is often conditional on some degree of priority alignment across states,” the report said. “Conversely, where states lack shared priorities, there is potential for conflict to arise, particularly among states that trade energy or rely on common energy infrastructure.”

Such conflicts can slow or reverse state initiatives, the report noted.

CSIS sees the same potential for coordination and conflict between state and federal policies. While states have benefited from federal research and development efforts around energy technologies and resilience, the federal government has also in recent years attempted to roll back state regulations regarding power plant and vehicle emissions.

But the new administration will likely yield a lessening of those conflicts.

“Apart from a new national agenda, President Biden may support considerable progress in state-level climate initiatives simply by scaling back such challenges to them,” the report said.

Utility Group Wants to Cover Southeast’s Highways with DC Fast Chargers

Six utilities are banding together to make electric vehicle “range anxiety” a thing of the past with a plan to create “a seamless network” of fast-charging stations along highways stretching from the Atlantic and Gulf coasts to the Midwest.

“Throughout the ages, travelers have had to figure out how to get from Point A to B. From feeding and watering horses, to filling gas tanks and now recharging batteries, ensuring there are convenient places to accomplish these tasks is critical,” said Nicholas Akins, CEO of American Electric Power, one of the six utilities now working together as the Electric Highway Coalition, which announced the plan on Tuesday.

Other members of the coalition include Dominion Energy, Duke Energy, Entergy, Southern Co. and the Tennessee Valley Authority. According to a press release, the goal is to make fast-charging sites as convenient as gas stations, located “along major highway routes with easy highway access and amenities for travelers.” DC fast chargers can top up an EV battery in 20 to 30 minutes, the release says.

The initiative reflects utilities’ growing support for transportation electrification, which they see as a major driver of new electricity demand and infrastructure growth at a time when increasing amounts of renewable and distributed energy on the grid are disrupting traditional industry business and regulatory models. A 2018 report from the Edison Electric Institute predicted the U.S. would see 18 million EVs on the road by 2030.

“We have electric customers in Virginia, North Carolina and South Carolina, and in a lot of cases, those customers are side by side with AEP or Duke or Southern Co. customers,” Dominion spokesperson Rayhan Daudani said. “So, it only makes sense for us to make sure we’re looking for places where we can address the gaps in EV charging infrastructure.”

TVA is looking to put charging stations every 50 miles on Tennessee’s major highways, spokesperson Malinda Hunter said. “What happens when you are on that highway and you exit our service area?” Hunter said. “We don’t want to be building on top of each other. We want to make sure that we have a good standard for what’s expected out of the charging station and how the connection works.”

Scott Blake, spokesperson for AEP, said the utilities have been laying the groundwork for the coalition over the past few months. But, he said, the project is still in its early stages, and any plans will need to take into account the expense and regulatory and operational hurdles an interregional fast-charging network will face.

For example, a $76 million electric transportation plan that Duke proposed in 2019 finally earned partial approval from the North Carolina Utilities Commission in November 2020. Duke got the go-ahead for $25 million to be used for charging stations and an electric school bus program but was sent back to the drawing board to ensure more community involvement — and net benefits for customers — in its EV planning.

Daudani also pointed to the range of EV adoption rates, incentives and other mandates that currently exist state to state. “It’s not one size fits all, either by state or by utility,” he said. “We really do have to be responsive to the customer’s needs, to regulatory needs, to the policy needs that are all in play. There are times where there may be a lack of alignment; that’s when more dialogue needs to be had, and hopefully this collaboration can foster that.”

Open Questions: Time and Cost

Coalition efforts and utility programs promoting transportation electrification have been growing across the country. In July 2020, governors of 15 states and D.C. Mayor Muriel Bowser signed a memorandum of understanding to cut emissions from medium- and heavy-duty trucking. Meanwhile, individual press releases from each of the Electric Highway Coalition members highlighted their various programs to expand EV sales and charging infrastructure.

  • AEP noted its own commitment to replacing its fleet of 2,300 cars and light-duty trucks with EVs by 2030, with an expanded charging network to ensure its employees can drive the electric fleet across the utility’s 11-state service territory. Rebates on chargers and low rates for EV charging during off-peak hours are being offered by various of the company’s subsidiary utilities.
  • Dominion is also offering special EV charging rates and has a pilot program providing rebates for certain kinds of chargers. It is also helping two public transit systems in its service territory ― one in South Carolina and one in Virginia ― to start converting to electric buses.
  • TVA announced an initiative aimed at removing barriers to EV adoption across its seven-state service territory, with the goal of having 200,000 EVs on the road by 2028. The agency is also partnering with the Tennessee Department of Environment and Transportation to build a fast-charging network along the state’s highways.

While none of the utilities have set time frames for rolling out highway fast chargers, Blake and Daudani said AEP and Dominion, respectively, would like to begin installations this year. TVA is aiming for 2022, according to Hunter.

“We’re trying to make sure that each of the member companies can take the resources that they have available and put them to the most efficient use,” Blake said. “We’re really trying to identify the locations for the DC fast-charging infrastructure, where the transmission system and the local distribution system support these types of charging stations without a lot of additional make-ready work.”

How the fast chargers will be paid for, and whether the utilities will try to include them in their rate base remain open questions. Hunter said TVA will not own any of the chargers, while Daudani said Dominion will be looking at the issue on a state-by-state basis.

‘Big Moment’ for Climate Change as Policies Align

This is not only “a big moment” for climate change but an “interesting” one as well, clean energy policy expert and podcaster Katherine Hamilton said Tuesday.

“Some of our muscles have atrophied a little bit, especially the ones around climate,” Hamilton said during the Connecticut Green Bank’s first webinar in a series focusing on “Promoting the Renewable Energy of Community.”

Hamilton, chair of lobbying firm 38 North Solutions and co-host of the popular “The Energy Gang” podcast, spoke about “Energy Trends and Transformations.” She explored the business and policy landscape for clean energy and technology and climate through the lens of RTOs, state and federal regulators and legislators, and the Biden administration.

Hamilton said that while there has been some federal engagement in renewable energy thanks to investment tax credits, the U.S. House of Representatives was “churning out a lot of legislation” that went nowhere during the Trump administration. Democrats now control the executive and legislative branches, which provides a sizeable and unexpected opportunity to enact comprehensive climate policy.

“We just didn’t think this moment would happen where you would have a president and a Senate and a House all aligned on the need to act quickly on climate,” she said.

Hamilton said the falling cost of clean energy coupled with strong grassroots support for significant climate change legislation tells her the country is in a “really different place.”

“There just wasn’t this groundswell of support from constituents” on climate change issues in 2009 when the Waxman-Markey bill to create a cap-and-trade system for greenhouse gas emissions passed the House and but never made it to the Senate floor.

“That has completely changed, and climate, because it’s in our faces, has become a voting issue, and I think that it really does change the dynamics on the hill and elsewhere,” Hamilton said.

While there have not been immediate moves on Capitol Hill, Biden acted swiftly to rejoin the Paris Agreement. He also appointed former Secretary of State John Kerry as a special presidential envoy on global climate action and Gina McCarthy, former EPA administrator during the Obama administration, as director of domestic climate policy. Former Michigan Gov. Jennifer Granholm was recently confirmed as secretary of energy. (See Granholm Confirmed by Bipartisan Vote.)

“This whole host of incredible people working throughout the administration, who understand the need to act quickly and who can all go in the same direction … organizing the entire federal government around solving for COVID, solving for jobs in the economy, solving for climate and solving for equity and racial injustice. Every single agency is going in that direction, and you can see that in everything that they do.”

On the legislative front, Hamilton said federal lawmakers are making progress on creating a national green bank. States like Connecticut, which founded the nation’s first green bank through legislation in 2011, are still leading the way working with private sector investors to create low-cost, long-term financing to maximize the use of public funds, she said. Projects in the state through fiscal year 2019 show that every $1 of public funds committed by the Green Bank yielded an additional $6 in private investment in the economy.

“Connecticut was the first mover on this, and it’s been able to prove this whole thing out,” Hamilton said.

Moderator Josh Ryor, director of utility programs and initiatives for the Connecticut Public Utilities Regulatory Authority, asked Hamilton what could be expected from FERC under Chair Richard Glick. She said his goal to prioritize transmission is “super important” so clean energy can move “from where it’s produced to where it’s needed.”

Hamilton said she thinks Glick will continue lowering barriers to new energy storage technologies. She noted former Chair Neil Chatterjee was instrumental in issuing orders 841 and 2222, which ensure that storage and distributed energy resources, respectively, have greater access to wholesale markets.

Hamilton also thinks Glick will work to ensure that wholesale markets better align with state policies. She was also acutely aware that New England states have held a series of online public technical forums in January and February on potential reforms at ISO-NE, ranging from wholesale market design to transmission planning to governance.

Mass. Bill Taps Tax Refunds for Climate-vulnerable Countries

Massachusetts could be the first state to allow residents to donate their tax refunds to help developing nations build resilient communities.

Massachusetts state Reps. Antonio Cabral (D) and Tram Nguyen (D) re-introduced legislation last month that would include a new section on tax forms asking taxpayers whether they want to donate their state tax returns to the Least Developed Countries Fund. Parties to the United National Framework Convention on Climate change created the fund in 2001 to help the world’s least developed countries prepare for natural disasters and make communities more resilient to adverse weather.

The bill was held up in committee during the last legislative session, when much of the state’s focus was on COVID-19 alleviation and recovery.

The bill establishes the Massachusetts Fund for Vulnerable Countries Most Affected by Climate Change, a voluntary tax-return contribution option that would be incorporated into the United Nations Least Developed Countries Fund. Cabral told NetZero Insider that he is optimistic the bill will pass this year, as there is a major focus on climate legislation in the state.

“A lot more people are not only talking the talk but also walking the walk,” he said. “But this is a new concept, and it takes time for people to get their heads around it.”

Government entities can contribute to the international fund, but individuals cannot. For that reason, it remains largely underfunded, Larry Yu, chair of the Climate Reality Project Boston chapter, told NetZero Insider.

The U.S. contributes less than 10% of the fund, but the Massachusetts bill, if passed, would pave the way for other states to contribute as well, Yu said.

“Then the contribution becomes more significant,” he added, as climate change is causing increasingly intense natural disasters.

Massachusetts Tax Refund Bill
A Massachusetts bill would allow taxpayers to allocate refunds to help developing countries hit by climate-related natural disasters, like Tropical Cyclone Idai, which caused flooding on the Mozambican coast, as seen here. | Shutterstock

In 2019, Cyclone Idai killed more than 1,000 people in Zimbabwe, Malawi and Mozambique, and left millions more without food or access to services. Water shortages in Eastern Africa are displacing thousands of people from their homes.

“That [natural disaster] didn’t really hit the news in the [U.S.],” Yu said.

The bill, and addressing climate change in general, is a matter of “moral responsibility, not foreign aid,” Adil Najam, professor of international relations and earth and environment at Boston University, told NetZero Insider.

The least developed countries are 48 of the poorest countries in the world, the majority of which are in Africa and Asia. They are also the countries least responsible for contributing to the climate crisis.

The energy infrastructure in Massachusetts impacts the rest of the world, Cabral said.

The bill is not addressing the question of who is at fault, Najam said. Instead, he added, it addresses shared responsibility.

Donating state income tax returns to the fund is “something easy to do, but very meaningful,” he said.

Lidar Project to Unearth Nev. Geothermal, Lithium Potential

Federal agencies have teamed up to conduct detailed surface and subsurface mapping of a large swath of western Nevada, a project aimed at revealing sites with a high potential for geothermal energy or lithium.

The U.S. Geological Survey and the Department of Energy in September announced the project, called Geoscience Data Acquisition for Western Nevada (GeoDAWN). The study will use light detection and ranging, or lidar, for surface mapping of the area, and geophysical techniques, including aeromagnetic surveys, to look beneath the surface.

DOE officials said last week that the $10 million project is well underway, with completion expected next year. The data will be made public when the project is finished.

The project area includes a roughly 200-mile-long piece of the Walker Lane geologic area, a fault system that runs near the Nevada-California border. The GeoDAWN area also extends into a portion of central Nevada and up to a section of the state’s northern border.

The GeoDAWN area has a high potential for discovery of new geothermal energy resources, according to USGS. The study will also look for spots with large amounts of critical minerals including lithium, which is needed for lithium-ion batteries such as those used in electric cars.

The project will reduce the risk for companies interested in geothermal exploration, said Susan Hamm, geothermal technologies office director in DOE’s Office of Energy Efficiency and Renewable Energy. The project could potentially lead to the establishment of new geothermal energy plants within the next decade, she said.

“It’s going to generate many exciting leads,” Hamm told NetZero Insider.

Finding geothermal clues

GeoDAWN will combine a number of techniques to look for geothermal potential and minerals. In addition to lidar and aeromagnetic surveys, the project will use airborne radiometry and geochemical analysis of rock and brine samples.

Lidar involves bouncing laser beams off the surface of the Earth from an aircraft and measuring how quickly the light returns. The data can be used to produce highly detailed maps of the Earth’s surface.

Magnetic surveys, also conducted from an aircraft, detect small changes in magnetic fields and can spot underground features such as faults.

Many geothermal resources are hidden or “blind,” meaning there’s no surface feature such as a hot spring to show where they are, Hamm said.

Fault patterns are one indicator of where a geothermal resource might lie. Researchers are still discovering what other features are associated with a geothermal resource.

The study will also examine areas where geothermal resources have already been found, for example, during mining operations. Machine-learning will be used to look for the features of those areas at other sites.

“It couldn’t be more exciting,” Hamm said.

Building on Past Work

The project will build on past research on geothermal resources in Nevada.

Researchers from the Nevada Bureau of Mines and Geology previously combined several sets of geologic and geophysical data for a large area in central Nevada. The data included characteristics of surface faults and measurements of gravity and temperature gradients.

The study led to the creation of a geothermal potential map, pointing researchers to two previously undiscovered, blind geothermal systems. At one of those sites, in Gabbs Valley, temperatures of 255 degrees Fahrenheit were found at a depth of 500 feet.

NBMG Director James Faulds said information acquired through the GeoDAWN project will be an important addition to data used in the earlier study. NBMG, which is housed at the University of Nevada, Reno, serves as the geological survey for the state and has provided technical assistance to the project.

New geothermal hot spots may be discovered through GeoDAWN, and the project’s findings will help rate promising geothermal sites already identified, Faulds told NetZero Insider.

GeoDAWN will also help Nevada catch up on lidar data collection. Up until recently, only 6% of the state had been covered by high-resolution lidar, the lowest percentage of any state, according to Faulds. GeoDAWN will bring that figure up to around 31%, he said, with other projects adding about another 9%.

The USGS 3D Elevation Program (3DEP) is working to achieve nationwide lidar coverage by 2023. Faulds said 3DEP has provided matching funds to others interested in lidar projects, such as local water authorities, but that hasn’t been much help for the vast amount of federal land in Nevada. Faulds said he encouraged federal agencies to talk to each other about ways to get more lidar coverage for the state.

In addition to USGS and the DOE Office of Energy Efficiency and Renewable Energy, partners in GeoDAWN include the Bureau of Land Management and the U.S. Department of Agriculture’s Natural Resources Conservation Service.

Mapping Lithium Potential

Nevada lags in lidar data acquisition despite having what may be the most geothermal potential among the 50 states, based on its geology, Faulds said. The state is second only to California in the production of geothermal energy.

Nevada also stands out in terms of lithium potential.

The U.S. is heavily dependent on imports to meet its lithium needs, according to USGS, and currently the only domestic source of lithium is in Nevada.

In contrast to geothermal resources, no one has made a map of lithium potential in the state, Faulds said.

“That is … badly needed to better evaluate where some of those sort of hidden and additional lithium resources might be,” he said.