Applicability of NEPA to Federal Energy Market Restructuring

Abstract

In furtherance of its goal of creating a more competitive electricity market, the Federal Energy Regulatory Commission (FERC) has proposed the creation of a Standard Market Design. While the proposal has been hotly debated, the focus has largely been on the economics rather than on environmental issues. FERC should fully study potential environmental impacts resulting from the implementation of such a proposal. Specifically, FERC should conduct a full environmental impact statement rather than rely on an environmental assessment and previous environmental impact statements prepared for earlier orders.This Note discusses when an environmental impact statement is required and argues that the Standard Market Design proposal is the type of agency action requiring such a study.