With publication forthcoming in UC Berkeley School of Law's Ecology Law Quarterly, this paper by PECC Fellow Pianpian Wang, Michael Hamersky, and Thomas Glawson, explores how AI demand and data center development have placed upward pressure on electricity prices and increased risks to the natural environment.The article argues that states should be proactive in exercising their power to enact laws ensuring that any potential benefits of data center expansion are not gained at the expense of environmental integrity, grid reliability, or community well‑being. Deliberate, evidence‑based planning can position states as active stewards ensuring that data center development proceeds in a manner that is equitable, resilient, and genuinely sustainable.

The authors propose a strategic roadmap that enables states to evaluate data center deployment in the context of their existing environmental, energy, and social‑policy frameworks. The roadmap consists of five core steps: (i) conducting comprehensive impact studies to assess a data center’s environmental and community‑level social effects; (ii) using those findings to guide siting decisions; (iii) regularly reassessing the need for incentives, recognizing that some regions may reach or exceed their capacity to host additional facilities; (iv) requiring large data centers to pair with off‑grid, clean‑energy‑supported power, including storage resources; and (v) mandating community‑benefit sharing mechanisms to ensure that local residents share in the gains rather than bear the burdens of development.

With publication forthcoming in the University of Hawai’i Law Review, this article by PECC Scholar Mercè Martí i Expositio and Michael Hamersky analyze the trilogy of Advisory Opinions on States' climate obligations, which unveiled a reality that can no longer be ignored: An energy system built on fossil-fuel extraction is the primary driver of the escalating planetary crisis and redefining that system is now an urgent legal imperative. The ITLOS, IACtHR, and ICJ each affirmed that States' duties extend to the supervision and regulation of subnational and non-state actors, whose role in climate action is increasingly vital amid widespread governmental inaction. Subnational governments and non-governmental actors are already shaping a new energy paradigm, demonstrating that community-owned energy systems not only assert energy as a collective right rather than a commodity, but also constitute a means of survival for communities most vulnerable to the climate crisis. The paper makes a strong case that the Advisory Opinions call for an expanded role for these actors at a moment when the volatility and dependency of the current energy system have become more apparent than ever.

Published in the Pepperdine Law Review, this article by Carington Lowe, Executive Board member, and Michael Hamersky, Executive Director, addresses the ongoing energy access crisis in the Navajo Nation and the structural legal barriers that continue to impede meaningful electrification advancement. It examines this crisis in relation to the tension between federal land tenure systems and Diné Fundamental Law, highlighting how fragmented ownership, fractionation, and restrictive leasing frameworks under federal law constrain the development of energy infrastructure on tribal lands.

The article suggestion that, although the Tribal Energy Act and related reforms, including the Tribal Energy Resource Agreements ("TERAs"), were designed and expand tribal self-governance in energy development, their practical implementation remains limited due to administrative, technical, and regulatory barriers. It further proposes that distributed energy systems, particularly biodigesters that generate renewable energy through an anaerobic process, offers a viable, scalable, and culturally aligned pathway to expanding electrification.

On behalf of PECC, Michael Hamersky will be attending IUCN World Conservation Congress 2025 in Abu Dhabi, United Arab Emirates, and the 2025 United Nations Climate Change Conference to be held in Belem, Brazil (“COP30”). With the assistance of PECC fellow, Akinola Afolarin, and PECC extern, Mercè Martí i Expositio, PECC has prepared Climate Crisis Advisory Opinions: An Urgent Call for Swift Action at COP30, which proposes strategies to compel States to implement laws in response to the recent climate change advisory opinions.

Introduction

The Pace Energy and Climate Center (PECC) is happy to announce the publication of the report, Expanding Municipal Options for Thermal Energy Networks (“the Report”), —developed for Mount Vernon, a municipality in New York State, on strategies for a permitting regime and the potential options for structuring thermal energy networks (TENs). TENs, otherwise called district geothermal, involves the adoption of technologies that use heat pumps to move thermal energy from sources, such as the ground, surface water, wastewater, and waste heat, to provide heating and hot water to one or more buildings. TENs also involve moving thermal energy to sinks, such as the ground, and surface water, to provide cooling to one or more buildings. Thus, TENs are ideal for heating and cooling purposes in buildings.

The goals of municipal TENs projects are to enhance decarbonization efforts, promote cost-effective means of providing heating and cooling to homes, commercial buildings, and industry, as well as promote equitable access. These projects are a critical effort towards the fight against climate change because the energy supply contributes to no less than three-quarters of global greenhouse gas emissions, and the amount of greenhouse gas emissions from commercial and residential buildings from heating and cooling are significant.

Legal Considerations for Developing TENs

It is against this background that PECC has developed the Report, which critically evaluates a myriad of options available to Mount Vernon and other municipalities for implementing TENs in their communities. The report considers affordability as the central goal while also taking into consideration sustainability and equitable access to TENs. The report discusses some key considerations that could potentially affect the affordability of TENs. These considerations include the permitting regime, legal and tax considerations, and business models. A unique feature of the report is that it highlights potential strategies that Mount Vernon and other municipalities in New York can adopt in developing a permitting regime. The report advises Mount Vernon on the most viable options for structuring the permitting regime and how the options impact the project timelines and cost. A permitting regime that is more flexible and less cumbersome is highly recommended for Mount Vernon and other municipalities as this will promote the development of geothermal technologies and reduce energy costs that could be passed onto consumers.

Proposed Permitting Regime for TENs

Specifically, the report proposes a risk-based approach for the permitting regime, which involves categorizing the permits into four types. That is, Types A, B, C, and D. The report suggests that Type A permits would apply to small-scale, closed-loop and low-risk projects. Type B permits would cover more complex closed-loop geothermal pump projects that are low risk but more complex than Type A. Type C permits would apply to open-loop systems while Type D would potentially cover projects with technical risk, a higher degree of complexity and environmental sensitivity. These tiered categorizations help to strike a balance between low-risk and high-risk projects while factoring in the features, complexity, technical requirements, and environmental risks involved. The tiered permitting approach would also enhance the ease of adoption and advancement of TENs while ensuring cost-effectiveness. In the report, PECC also proposes that municipalities facilitate TENs projects through permits and by incorporating federal and state environmental regulations and industry standards. The Report also calls upon municipalities to consult with the New York State Department of Environmental Conservation which is in the process of developing a regulatory framework for TENs that will govern drillers.

Legal/Tax Considerations

On the legal and tax considerations, PECC’s report analyzes the various ways the TENs project can be structured to maximize the tax exemptions, incentives, and ensure efficient pricing. To achieve this, ownership, financing, operation, and revenue generation options are considered in the Report to give municipalities a clear picture of the options, and respective tax consequences. For instance, the Inflation Reduction Act (IRA) has extended the Investment Tax Credit (ITC) to apply to geothermal technologies. Also, PECC’s Report factors in the legal considerations under the New York State Utility Thermal Energy Network and Jobs Act, the Public Service Commission’s (PSC) regulatory roles and how to qualify for PSC regulation exemption, as well as the New York State law governing Local Development Corporations (LDCs).

Business Models for TENs

In addition, the PECC report suggests the adoption of business models, like municipally-owned (not-for-profit) TENs, as this will provide significant economic benefits for consumers, prioritize cost efficiency, and ensure long-term community benefits. Municipally-owned TENs could be structured with complete municipal ownership, which means that the municipality owns, finances, and operates the TEN. This type of model is appropriate for a municipality that has the administrative, financial, and technical capacity to run the TEN. There is maximum cost-efficiency and control in this model. There are other types of models including partial municipal ownership with outsourced services and private or utility-owned TENs with municipal involvement. These models are discussed in the report with particular emphasis on the municipally-owned TENs as the most viable option for Mount Vernon.

Conclusion

Overall, PECC’s focus in the TENs report is to assist Mount Vernon and other New York municipalities in developing geothermal technologies in the most affordable, sustainable, and equitable manner possible. The report’s objectives align with the New York State decarbonization goals as well as Statewide actions to promote energy efficiency in buildings and industries. PECC remains committed to foster, through its projects, the reduction of greenhouse gas emissions.