Deep Dive Episode 228 – Does the Federal Energy Regulatory Commission (FERC) Have Authority To Regulate the Climate?
Regulatory Transparency Project's Fourth Branch Podcast
Regulatory Transparency Project's Fourth Branch Podcast
The Biden administration has pledged to meet what it calls “the accelerating threat of climate change” with a wide-ranging campaign to discourage the production and use of fossil fuels in order to control the emission of carbon dioxide and other greenhouse gases said to be the principal cause of global warming. The White House has directed regulatory agencies and departments across the executive branch to “tackle the climate crisis.” The administration has set a goal to eliminate carbon dioxide emissions from the electric power sector by 2035.
The Federal Energy Regulatory Commission, or FERC, is an independent regulatory agency whose enabling statutes include the Federal Power Act and the Natural Gas Act. FERC’s statutory responsibilities include regulation of the transmission and wholesale sale of electricity in interstate commerce, and authorization of proposals for the construction and operation of interstate natural gas pipelines and storage facilities.
Doing its part to tackle the climate crisis, FERC has proposed a new policy that will greatly expand the scope of the climate-related environmental impact analysis required for proposed natural gas projects. Traditionally, such analysis has been limited to an evaluation of the emissions that would result directly from the construction and operation of the proposed project. Going forward, FERC is proposing that such analysis will also evaluate the emissions that would result indirectly from the upstream production and downstream use of the natural gas to be handled by the proposed project.
In other policy statements having to do with the electric sector, FERC has announced that it will consider proposals from entities it regulates to add into wholesale electricity prices any charges that are levied by state regulators on greenhouse gases emitted by the power plants producing the electricity.
Does FERC have the legal authority to implement these new climate-related policies and, by doing that, dramatically expand the scope of its regulatory activities? J. Kennerly Davis, Jr. and Bernard McNamee joined us for a probing, wide-ranging discussion of the statutes and case law that provide the answer to this vitally important question.
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As always, the Federalist Society takes no position on particular legal or public policy issues; all expressions of opinion are those of the speaker.
Former Deputy Attorney General for Virginia
Kennerly Davis has over forty years of experience in corporate management, public service, and the private practice of law. He has held senior executive positions in a Fortune 500 electric and gas company. He has served as Deputy Attorney General for the Commonwealth of Virginia, and as a legislative aide to a U.S. Senator and a U.S. Congressman. He practiced law for 25 years with Hunton Andrews Kurth LLP.
Davis is active in the Federalist Society as a member of the Regulatory Process Working Group of the Regulatory Transparency Project, and as a member of the Execuitve Committee of the Administrative Law and Regulation Practice Group. He is active in the national Alumni Free Speech Alliance, and involved in AFSA-chapter initiatives, including litigation, to publicize and correct the serious legal problems created by university Diversity, Equity, and Inclusion programs and the anonymous bias reporting systems used to enforce those DEI programs.
Davis writes and speaks on a wide variety of topics, including those related to the Founding of America, the natural rights foundation of our Republic, the constitutional rule of law, equal protection and free speech, DEI programs and bias reporting systems, capitalism, regulation and regulatory reform, and economic development. His articles have appeared in The Wall Street Journal, the Washington Examiner, the Richmond Times-Dispatch, The Federalist Society Review, the FedSoc Blog, Real Clear Energy, Townhall, the Daily Caller, reports of the Center for Strategic & International Studies, and other publications. He appears frequently on radio, podcasts, and television.
Davis graduated with honors from Cornell University with an A.B. degree in Government. He earned an M.A. degree from Pembroke College, Oxford, in Philosophy, Politics, and Economics. He was awarded a J.D. degree from Harvard Law School, and an M.B.A. degree from Virginia Commonwealth University.
Davis lives in Richmond, Virginia. He can be contacted by email: j.kendavis@verizon.net, and by phone: (804) 624-8525.
Former Commissioner, Federal Energy Regulatory Commission
Bernard L. McNamee is a former FERC commissioner and currently a partner at McGuireWoods LLP and a senior advisor at McGuireWoods Consulting. His practice focuses on providing clients with strategic legal and policy advice on a wide range of energy and environmental issues. During his time on the Commission, he participated in more than 1,700 published orders on a wide range of issues, including numerous important orders relating to wholesale electricity markets and natural gas pipelines.
Before his appointment by the president and confirmation by the Senate as a commissioner on FERC, McNamee served in the U.S. Department of Energy as executive director of the Office of Policy and deputy general counsel for energy policy. His career in public service includes key leadership positions under Attorneys General in Virginia and Texas, and policy advisor roles for a U.S. Senator from Texas and a Governor of Virginia. In private practice, McNamee has a long career representing energy clients before state public utility commissions in rate cases, certificate proceedings, and integrated resource planning.