Environmental Repair in the Energy Transition

For nearly a century, American laws have required mines, oil and gas companies, and other potentially hazardous industries to restore land affected by their activities to a safe condition when they are done with it. These laws represent a grand bargain—they allow operators to make profitable but damaging use of land today in exchange for the promise of expensive remediation tomorrow. However, this bargain has proven hard to enforce. This Article offers the first comprehensive account of this century-old doctrine: the law of environmental repair. In doing so, it documents a regime in crisis and identifies a new systemic risk to environmental repair law: the global transition to renewable energy. The energy transition threatens to destroy the fossil fuel companies liable for environmental repair obligations while simultaneously undermining the legal tools that enforce those companies’ environmental promises. In response to this threat, and to the long-standing failures of environmental repair law, this Article proposes a new model of environmental law, the “environmental earnout.” Environmental earnouts are conceptually simple: They hold back part of the profits from damaging land uses until environmental repair is complete. While simple, environmental earnouts offer a new and sophisticated tool to reshape the fundamental bargain of environmental repair and protect the public from the environmental harm caused by abandoned fossil fuel infrastructure.