ENERGY LAW (LAW 327/ENERGY 727)

Fall 2015, 3 credit hours

MW 9:00-10:20

Law School Room #4055

The course will examine the legal framework governing energy production and consumption in the United States, and policy approaches for balancing energy needs with other societal goals. Key themes will include:

(1) The historic origins of public utility regulation; (2) The distinct roles of the federal and state governments; (3) The role of modern energy markets; (4) The impact of renewable energy resources and shale gas; (5) Efforts to balance energy goals with other societal interests; and (6) The impact of public policy choices affecting energy production and use.

Instructor: Jonas Monast Senior Lecturing Fellow, Duke Law

Director, Climate and Energy Program Nicholas Institute for Environmental Policy Solutions at Duke University [email protected] 919-681-7188

Office Hours: Room 3015. Mondays 10:30-12:00. Students may contact the instructor by phone or email to schedule an appointment.

Reading Materials: Joel Eisen et al., Energy, Economics and the Environment: Cases and Materials, 4th Edition (Foundation Press: 2015) • Casebook: s applicable or cited in course listing. Please check Sakai before each class for any additional course materials.• Supplementary Materials posted on Sakai a

Note: There may be modifications to the syllabus during the semester. If so, students will be notified in class and via email. •

Class Participation:

This class is highly dependent upon participation as we discuss the issues and future of energy. Each student will be “on call” 3-4 days during the semester. In addition to being prepared to discuss that day’s reading assignments, students who are on call should also be prepared to discuss recent events/developments regarding energy and the environment (news articles, etc.). Students not on call are still expected to complete the reading and participate in class discussions and in-class exercises. Attendance and class participation will be considered in deciding whether to adjust your final grade.

Grading:

There will be a three-hour open book, open note final examination. The exam may include concepts discussed in class that are not in the readings.

The final exam is Wednesday, December 14 at 8:30 am.

SYLLABUS

Class 1 (8/26) – The U.S. Energy Mix • US EIA, Annual Energy Outlook 2015, Executive Summary - http://www.eia.gov/forecasts/aeo/executive_summary.cfm • US EIA, Annual Energy Outlook 2008, Overview (pp 9-12) • Monast & Hoppock, Parts II & III (pdf pages 2-8)

CLASS DOES NOT MEET MONDAY, 8/31

Class 2 (9/2) – Common Law Principles of Public Utility Regulation • Eisen 37-47, 50-56 • OPTIONAL: Regulatory Assistance Project, Electricity Regulation in the U.S.: A Guide, (pp 3-23)

Class 3 (9/7) – State Electric Utility Regulation: Cost of Service • Eisen 455-457, 460-469 • Market Street Railway Co. v. CA. Railroad Comm’n

Class 4 (9/9) – State Electric Utility Regulation: Cost of Service pt. 2 • Eisen 470-487 • SKIM – Phillip Cross, Return on Equity: A Survey of Recent Rate Cases from State PUCs

Class 5 (9/14) – Case Study: The Least Cost Mandate • Kentucky Public Service Commission, Louisville Gas and Electric and Kentucky Utilities Company 2009 Application for Approval of Purchased Power Agreements and Recovery of Associated Costs

Read in order: o LGE-KU Motion for a Declaratory Ruling (Aug. 28, 2009) & Application for Approval (Aug. 28, 2009), (pp 1-26 of the pdf) http://psc.ky.gov/PSCSCF/2009%20cases/2009- 00353/20090828_LGE-KU_Notice_Motion_and_Petition.PDF o Joint Motion of the Attorney General and KIUC to Dismiss (Sept. 4, 2009): http://psc.ky.gov/PSCSCF/2009%20cases/2009- 00353/20090904_Joint_Motion_of_AG_and_KIUC_to_Dismiss.P DF o Order (Oct. 21, 2009): http://psc.ky.gov/PSCSCF/2009%20cases/2009- 00353/20091021_PSC_ORDER.PDF

Class 6 (9/16) –Federal Power Act, Wholesale vs. Retail Electricity Sales, FERC Jurisdiction • Eisen 511-516 • FERC v. Electric Power Supply Ass’n, FERC Petition for Cert. 5-14 • FERC v. Electric Power Supply Ass’n, EPSA Brief Opposing Cert. 9-13

Class 7 (9/18) – MAKEUP CLASS – 9:00-10:20, Room 4000 - Competition in Electricity Markets: PURPA, and FERC Orders 888, Regional Transmission Organizations • Eisen 630-633, 642-653, 656-660

Class 8 (9/21) – Competition in Electricity Markets: Restructuring Retail Markets • Eisen 699-718

Class 9 (9/23) – The Clean Air Act & Coal-Fired Electricity Generation (NAAQS, New Source Review) • Eisen 258-268

CLASS DOES NOT MEET MONDAY, 9/28

Class 10 (9/30) – Guest Speaker TBD

Class 11 (10/5) – The Clean Air Act & Coal-Fired Electricity Generation (Acid Rain Trading Program, Recent Regulations) • Eisen 268-275 • Paul J. Miller, A Primer on Pending Environmental Regulations and Their Potential Impacts on Electric System Reliability

Class 12 (10/7) – The Clean Air Act & Coal-Fired Electricity Generation (Clean Power Plan) • Reading assignments TBD

Class 13 (10/19) – Class Exercise – Electric Utility Decision-making • No reading assignment. • Attendance is mandatory

Class 14 (10/21) – Renewable Energy – RPSs and REC Markets • Eisen 758-767, 784-788

Class 15 (10/26) – Renewable Energy – Transmission Siting and Cost Allocation • Eisen 789-811

Class 16 (10/28) – Renewable Energy and the Commerce Clause • Eisen pp 767-782

Class 17 (10/30) – MAKEUP CLASS – 9-10:20, Room 4055 - Nuclear Energy • Eisen 401-402 • Update of the MIT 2003 Future of Nuclear Power

Class 18 (11/2) –Nuclear Safety & Nuclear Waste • Eisen 403-407, 435-445 • Davies, Beyond Fukushima: Disasters, Nuclear Energy, And Energy Law

Class 19 (11/4) – Introduction to Oil and Gas Extraction: Rule of Capture • Eisen 149-157, 163-174 • MSU Extension, Oil and Gas Leasing

Class 20 (11/9) – Introduction to Oil and Gas Extraction: Unitization, Pooling • Eisen 177-186

Class 21 (11/11) – Natural Gas Overview • Eisen 540-557, 560-564

Class 22 (11/16) – Natural Gas – Shale Gas Extraction/Hydraulic fracturing • US EIA, Energy in Brief: What is Shale Gas and Why Is It Important, http://www.eia.gov/energy_in_brief/article/about_shale_gas.cfm • David Neslin, Hydraulic Fracturing: A Comparison of Regulatory Approaches and Trends for the Future (pp 1-17) Class 23 (11/18) – Natural Gas – Shale Gas Extraction/Hydraulic fracturing, cont’d • Eisen 186-191 • Wallach v. Town of Dryden

Class 24 (11/23) – Offshore Oil • Eisen, pp 201-213, 215-218 (notes 4 & 5) • Cong. Research Service, Offshore Oil and Gas Development: Legal Framework pp 1-4, 5-13

Class 25 – (11/30) – Oil Spills • Eisen, pp 230-243 • Farber, Paying the Price for Environmental Disaster

Class 26 (12/2) – Energy Innovation • William Bonvillian, Time for Climate Plan B • Kelly Sims Gallagher, et al., The Energy Technology Innovation System