D.C. Circuit Vacates FERC Smart Grid “Demand Response” Rule

by Joel Eisen | May 30, 2014

Last Friday (May 23), in Electric Power Supply Association v. FERC, a D.C. Circuit panel split 2-1 and vacated Order 745, a Federal Energy Regulatory Commission (FERC) rule designed to promote “demand response” (DR). DR is a rapidly growing and valuable means of reducing electricity demand, thereby benefiting consumers and the environment. It is also an important part of the Smart Grid, in which smart meters and devices that communicate with one another and energy service providers can further promote these goals. Indeed, former FERC Chairman Jon Wellinghoff has called DR the Smart Grid’s “killer app.”

The case tested a question of near first impression about the Smart Grid: which level of government regulates it? For now, the D.C. Circuit has held squarely for the states, concluding that DR regulation is a matter of exclusive state jurisdiction. If the decision stands, it will have many adverse implications for federal regulation to advance the Smart Grid and use the wholesale electricity markets to achieve energy reductions and environmental goals.

What is “Demand Response”?

First, a bit about DR. It is different from using a power plant to generate electricity. DR programs focus on reducing consumption at specific times of high electricity demand.

Historically, most DR involved load control programs, which offer customers incentives to reduce consumption or allow a utility to directly control equipment or appliances. A typical program might offer a residential customer $50 per ...

CPR Member Scholars to Congress: Judicial Review Provisions of CFTC Reauthorization Bill Need Another Look

by James Goodwin | May 20, 2014
Yesterday, CPR Member Scholars sent a letter to House Representatives about their concerns with Section 212 of H.R. 4413, the Consumer Protection and End-User Relief Act.  This provision would add a new Section 24 to the Commodity Exchange Act, establishing specific requirements for judicial review of rules adopted by the Commodity Futures Trading Commission (CFTC).  H.R. 4413 is on the short list for a floor vote in House. As the letter explains, several aspects of Section 212 “raise significant problems.”  ...

CPR Submits Comments on FDA's Proposed Generics Labeling Rule

by James Goodwin | March 10, 2014
If you’re harmed by an improperly labeled prescription drug you’ve taken, should your ability to hold the manufacturer accountable in court depend on whether that drug was “name brand” or “generic”? Strangely, it does matter, thanks to the 2011 U.S. Supreme Court decision in Pilva v. Mensing. There, the Court held that because of a quirk in the Food and Drug Administration’s (FDA) regulations, generic drug manufacturers were shielded against plaintiffs’ state tort law failure-to-warn claims that alleged that a ...

The Lost World of Administrative Law

by Daniel Farber | March 05, 2014
The regulatory process has become more opaque and less accountable. We need to fix that. Every year, thousands of law students take a course in administrative law.  It’s a great course, and we wish even more students took it.  But there’s a risk that students may come away with a vision of the regulatory process that is increasingly disconnected with reality.  Worse, the leading judicial opinions on the subject suggest that judges may suffer from a similar disconnect. The Administrative ...

Chemical Industry takes Aim at Citizen Suits with 'Reform' Bill

by Sidney Shapiro | February 07, 2014
The recent chemical spill disaster in West Virginia has brought into sharp focus the weak measures we have in place for safeguarding people and the environment against exposures to harmful chemicals.  State and civil justice systems have helped to fill the resulting void by providing individuals who have suffered harmful exposures with an opportunity to hold accountable any people or corporations responsible for the chemical by seeking reasonable compensation for their injuries.  It’s often difficult to win these cases, and ...

Senate Republicans against DC Circuit Court nominees: talking through their hats

by Sidney Shapiro | October 30, 2013
This week, it was reported that Senate Democrats plan to force a vote to confirm one judicial nominee to the D.C. Circuit Court of Appeals if Republican Senators continue to block the nominee’s confirmation. Patricia Ann Millett, who has worked for Democratic and Republican administrations in the past, is the contested candidate.  Although the circuit court has three vacancies, the Republicans oppose a vote because they say the D.C. Court of Appeals has too many judges. Senator Jefferson Sessions, for example, ...

Death of a Statute: The Kiobel Ruling

by John Knox | April 19, 2013
On Wednesday, the Supreme Court ended a generation of human rights litigation in the United States by holding, in Kiobel v. Royal Dutch Petroleum, that the Alien Tort Statute (ATS) does not apply to actions occurring in foreign countries. The ATS allows plaintiffs to sue in federal courts for torts committed in violation of international law and, since 1980, plaintiffs have used it for claims of grave human rights violations, such as torture, crimes against humanity, extrajudicial killing, and even genocide, ...

A Tribute to Joe Feller

by Robert Glicksman | April 16, 2013
Last week, CPR lost one its most dynamic scholars, Joe Feller, in a tragic accident. Joe was deservedly well known as a staunch and vigorous advocate on behalf of natural resource preservation, especially the public rangelands that he loved. Joe was not cut from the typical academic mold. Although he wrote frequently and with vision about subjects that included rangeland protection and water law issues, he was at least as comfortable leading environmental protection efforts in the agencies and the courts. Joe filed administrative ...

Kiobel Returns!

by John Knox | September 28, 2012
Remember Kiobel v. Royal Dutch Petroleum, argued before the Supreme Court last term?  It’s back – the Court will hear argument again Monday – and bigger than before.  A brief recap:  For decades, Shell has extracted oil from the Niger Delta, causing extensive environmental degradation.  The government of Nigeria, with the alleged support of Shell, cracked down on protests by the local residents, the Ogoni tribe, by executing their leader, Ken Saro-Wiwa, and eight others in 1995.  Members of the ...

BP Spill: Perp Walk for Underling Shouldn't Satisfy Anyone

by Rena Steinzor | April 26, 2012
With considerable media flourish, the Department of Justice (DOJ) announced Tuesday the first and so far only criminal charges related to the BP Deepwater Horizon catastrophe that killed 11 workers, and did profound violence to the Gulf of Mexico and the local economies dependent up on it. One Kurt Mix, 50, an engineer involved in designing the failed “top kill” remedy, was indicted for obstruction of justice. More specifically, he's accused of deleting text messages from his phone that he ...

The Good and the Bad in the BP Settlement, and the Main Course Still Ahead

by Robert Verchick | April 23, 2012
I spent last Friday – the second anniversary of the BP Blowout – in the vast basement of the Orleans Parish Criminal District Court building, shifting in my metal chair, ignoring the talk-show chatter from the flat screens, and keeping an eye on the red digit counter to know when my number was up. I'd been called for jury duty. Whether I will eventually be deployed is up to the gods, but until then I had resolved to study (with ...

Limiting the Rights of Medical Malpractice Victims: House GOP Leaders Make a Bad Idea Worse

by Sidney Shapiro | March 20, 2012
House GOP leaders may vote as early as this week on legislation that would eliminate the Independent Payment Advisory Board (IPAB), a cost-saving measure that was established as part of the national health care reform Congress passed in 2010.  House leaders have also attached national restrictions on the right of patients to recover damages for medical malpractice (H.R. 5) to the IPAB bill, with the joint bill being called H.R. 5.  The sponsors of the bills allege that the savings ...

A New Twist in the Kiobel Case

by John Knox | March 07, 2012
Last week, the Supreme Court heard oral argument in Kiobel v Royal Dutch Petroleum, the case asking whether corporations can be liable in federal court for violations of international human rights law.  In the decision under review, the Second Circuit – unlike every other circuit court to consider the question – had held that they could never be liable.  So one might think that a logical way for the petitioners to begin their oral argument would be to give an ...

After Partial Settlement, Oil Spill Case on a Slow Boil

by Robert Verchick | March 05, 2012
The BP Oil Spill case settled! Well, part of it. The smaller part. But, still, we must count this a victory for U.S. District Judge Carl Barbier, whose reported 72 million pages of assigned reading will inevitably be shaved down. (Does this man have an iPad?) On Friday evening the court announced that BP had reached a settlement with the steering committee that represents thousands of private plaintiffs in the case. Judge Barbier postponed the trial indefinitely while the remaining ...

The Age of Greed: Chemical Industry Fights to Suppress Dioxin Assessment

by Rena Steinzor | January 09, 2012
With a reverential nod to maverick economist Jeff Madrick, who wrote a popular book of the same name, I begin today a series of blog posts entitled “The Age of Greed” that is designed to shine a bright spotlight into the dark corners where Washington lobbyists are busy looting the protection of public health, worker and consumer safety, and the environment.  Business-as-usual efforts to stall or derail regulation won’t make it into this space.  Rather, behavior has to be demonstrably ...

In Chevron versus Ecuador, the Decisions (and the Ironies) Multiply

by John Knox | January 09, 2012
If environmental cases had their own Olympics, the dispute between Chevron and Ecuador would be a contender for multiple gold medals.  It seems to have a shot not only at winning the award for the largest damages, but also for running the longest and appearing in the most courtrooms.  To recap:  Residents of the Amazon have been trying for nearly 20 years to receive compensation for massive environmental damage Chevron’s predecessor, Texaco, allegedly caused in Ecuador in what’s been called ...

Fifth Circuit Mulls Katrina Flood Ruling

by Robert Verchick | November 15, 2011
    Today’s question: When are flood waters not “flood waters”? We New Orleanians have become fluent in all things subaqueous; last week three Texans sitting on the Fifth Circuit Court of Appeals took their turn. Yes, we’re talking about Katrina. Or, more specifically, its flood waters, which busted federal levees in fifty places, swamped 80% of New Orleans, and caused 800 deaths in the urban area. It is beyond argument that federal malfeasance played a key role. But sovereign immunity ...

National Meat Association v. Harris: More Preemption in the Supreme Court

by Bill Funk | November 04, 2011
On November 9th the Supreme Court will hear oral argument in National Meat Association v. Harris, wading once again into the mire of federal preemption. The National Meat case involves a California statute that prohibits the slaughter of non-ambulatory animals for human consumption and requires that non-ambulatory animals be immediately and humanely euthanized. A federal law, the Federal Meat Inspection Act (FMIA), thoroughly regulates, although one could question how strictly, the process of slaughtering animals for human consumption. It also contains an express ...

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