From Grist. A new commission chair could change the way FERC regulates energy projects. February 18, 2021
There’s a saying about the Federal Energy Regulatory Commission: It’s never seen a pipeline it didn’t like. But the commission’s new chair could make that adage a thing of the past.
Established by Congress in 1977 to regulate the United States’ energy landscape. FERC wields an enormous amount of power, overseeing the nation’s pipelines, natural gas infrastructure, transmission lines, hydroelectric dams, electricity markets, and, by association, the price of renewables and fossil fuels. It’s made up of up to five commissioners — no more than three members of the same party can serve at a time — including one chair, who sets the commission’s agenda.
Historically, the commission has not done a good job of taking climate change and environmental justice into account as it has approved and regulated energy projects across the U.S. A system for accounting for climate impacts isn’t baked into FERC’s structure. That could change as President Joe Biden executes a “whole of government” approach to tackling climate change.
In January, President Joe Biden appointed Richard Glick, formerly the sole Democratic vote on the commission, to chair FERC. Some of Glick’s priorities? Environmental justice and climate change mitigation and adaptation. At his first press conference since being appointed to lead the commission, Glick announced that FERC will create a senior-level position dedicated to assessing the environmental justice impacts of proposed projects. For the first time, the commission will take a look at how developments like natural gas pipelines affect surrounding communities to make sure they don’t “unfairly impact historically marginalized communities”.
Experts say Glick’s influence on the commission will extend far beyond the new environmental justice position. Under Glick, FERC could liberate renewables from “artificial impediments” and allow clean energy to hit the grid at the lowest possible cost. In addition to taking a hard look at MOPR (Minimum Offer Price Rule that keeps energy prices at a level gas generators needed in order to operate in a profitable manner), Glick is expected to develop a more cooperative attitude toward states and their green energy objectives. Glick could also update electricity transmission policy to encourage more transmission infrastructure — the backbone of America’s power system, without which power from power plants wouldn’t be able to flow to customers. System reliability is going to be a priority, too, especially considering the power issues Texas and other states are experiencing right now.
Glick is in a powerful position as head of FERC, but he still has to work with the Republicans on the commission, at least until June, when Republican commissioner Neil Chatterjee retires and Biden appoints his replacement.