{
  "id": 19152223,
  "title": "End the State Veto on Power Lines",
  "url": "https://urgent.news/2026/11/09/end-the-state-veto-on-power-lines",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-09T12:18:45.000Z",
  "source": {
    "name": "Marginal Revolution",
    "slug": "marginal-revolution",
    "url": "https://marginalrevolution.com/marginalrevolution/2026/11/end-the-state-veto-on-power-lines.html"
  },
  "original_language": "en",
  "account": "The American regulatory system has historically required various types of infrastructure to navigate through a maze of state approvals, with one exception: natural gas pipelines. When a power line crosses from one state to another, the intervening state often imposes high fees or even blocks the project altogether. This phenomenon, known as the \"holdout problem,\" has persisted for decades. A recent paper by Liscow, Shapiro, and Williams found that after Congress ended states' ability to veto interstate gas pipelines in 1947, construction increased nearly sixfold. Despite this, oil pipelines continued to face state approvals, while natural gas pipelines thrived. This difference in outcomes led to the creation of a national market for natural gas, due to reduced transaction costs. However, the same isn't true for electricity. An interstate power line typically requires approval from every state it crosses, granting each state a veto over the project, despite the benefits often flowing to neighboring states. This issue has been evident in New England, where Massachusetts sought to import hydropower from Canada but faced rejection from New Hampshire, which would have hosted the power lines without benefiting from the cheap energy. A second route through Maine was blocked in a referendum and only delivered power to Massachusetts in January, leading to some of the highest electricity prices in the country. To promote a national market for electricity and lower costs, the Bipartisan American Affordability and Jobs Act, which faces a Senate vote on Monday, proposes that the Federal Energy Regulatory Commission (FERC) can approve an interstate line that has been blocked or delayed by a state for a year.",
  "summary": "It’s one of the peculiarities of American regulatory history that a natural gas pipeline can cross state lines with a single federal permit, but oil and electricity must run a gauntlet of state approvals. When a power line crosses one state to reach another, for example, the intervening state often imposes exorbitant tolls or, worse, […] The post End the State Veto on Power Lines appeared first…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}