The Laws of Energy

While energy law and regulation is an established practice, new areas of growth are emerging in both traditional and renewable energy sectors. Legal counsel should pay attention to growth trajectories, particularly within the regulatory framework.

Revenue-Raising Proposals on Traditional Energy

President Obama’s Stimulus Bill (American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5) provides several revenue-raising proposals, including new or increased taxes targeted at the oil and gas sector, as well as energy-related spending proposals. While the administration justifies these proposals on the grounds of climate change, many of the proposals appear to be at cross purposes with the goal of U.S. energy independence. Congress passed a 2010 Budget Resolution on April 29, 2009 (Senate Concurrent Resolution 13). The administration issued its “Greenbook” of Budget tax proposals (entitled “General Explanations of the Administration’s Fiscal year 2010 Revenue Proposals”) on May 11, 2009. The Greenbook offers further details on the energy revenue-raising proposals, in addition to other tax proposals, and adds one new revenue-raising proposal in the energy area.

Cap-and-Trade

The Budget proposes a 100% full action "cap-and-trade" system, commencing in 2012. The goal of this system is to reduce greenhouse gas (GHG) emissions 14% over 2005 levels by 2020, and 83% by 2050. The "cap-and-trade" proposal has generated controvery. Business constituents, including oil and gas companies have lobbied Congress to enable auctioning, thereby saving costs by getting sellable permits for free. Environmental groups argue that such a system conflicts with the purpose of reducing greenhouse gases, in effect, allowing companies to continue polluting.

ARRA Funds Awarded

The U.S. Department of Energy (DOE) has announced allocations of more than $54 million in funding from the American Recovery and Reinvestment Act to support energy efficiency and renewable energy projects in Nevada, Rhode Island, Vermont, and Wisconsin. Under DOE's State Energy Program, states and territories have proposed statewide plans that prioritize energy savings, create or retain jobs, increase the use of renewable energy, and reduce greenhouse gas emissions.


New York State Developments

New York state enacted, in 2007, a number of recent laws to control carbon emissions. There is also a new Article 13 of N.Y. Energy Law, the State Green Building Construction Act, in 2008. This new Act is composed of four sections, including N.Y. Energy L. § 13-107, "Agency green building construction requirements." They also passed a law to establish a "Green Residential Building Grant Program," which directs NYSERDA to grant moneys subject to LEET. Finally, the legislature also enacted three closely-related laws to expand "Net metering" of alternative energy generating systems.

Sen. Parker stated that he has been "aiming for a long time" to work on energy and environmental issues. Among the issues he wants to address are "enrgy generation and transmission ... public transportation ... [and] Renewable energy...."

Assemblyman Cahill notes equally "abitious goals for renewable power and energy conservation," especially by funding the State Energy Plan, "mass transit", repowering "Old hydro facilities" and modernizing the states "electric grid." New York State Energy Research and Development Authority (NYSERDA) president Francis Murray, Jr. echoes "the most ambitious clean-energy program in the nation."

For more information on the legal issues surrounding state and national energy regulation, contact Sheheryar Sardar, Esq. at (631) 838-0178 or sardar@sardarlawfirm.com