[USA] DOE launches $2.5 billion fund to modernize and expand capacity of the grid

On May 10, 2022, the Department of Energy (DOE) issued a Request for Information (RFI) requesting public input on the structure of the $2.5 billion Transmission Facilitation Program (TFP).[1] The TFP was created by the Infrastructure Investment and Jobs Act (IIJA) to help build out critical transmission lines. The new program part of the DOE’s roughly $20 billion Building a Better Grid initiative, which was created under the IIJA. The IIJA allows the DOE to borrow $2.5 billion from the treasury to assist in the construction of transmission lines through loans from the DOE, DOE participation in public-private partnerships, and capacity contracts eligible projects in which DOE would serve as an “anchor customer.”

The first solicitation will be limited to applicants seeking capacity contracts for projects that will begin operation no later than December 31, 2027. Through the capacity contracts, the DOE will commit to purchasing up to 50% of the maximum capacity of the transmission line for up to 40 years. The goal is for the DOE to buy capacity until customer demand has increased enough to cover those costs. Then DOE will then remarket the capacity and thereby replenish the fund. The DOE plans to issue a second solicitation from its TFP in early 2023 that will incorporate loans and public-private partnerships in addition to capacity contracts.

[1] https://www.energy.gov/articles/biden-administration-launches-25-billion-fund-modernize-and-expand-capacity-americas-power

[USA] DOE launches public-private challenge to cut carbon emissions 50% within ten years

On February 28, 2022, the Department of Energy (DOE) launched the Better Climate Challenge, a voluntary, market-based carbon reduction initiative, during an Executive Roundtable with Housing and Urban Development (HUD) Secretary Fudge, White House National Climate Advisor Gina McCarthy, and committed partner organizations.[1] Over 90 companies and organizations have joined the challenge, including Avangrid, Exelon Corp., the Cleveland Clinic Foundation, Siemens, Xerox, and IKEA. Participants will commit to reducing carbon emissions from their operations by at least 50% within ten years without the use of offsets and set an energy efficiency target of around 20%. Specifically, the challenge focuses on Scope 1 and Scope 2 greenhouse gas emissions, which are emissions created directly by the participating organization and emissions associated with the purchase of electricity, heating, or cooling.  The DOE will provide technical assistance as well as opportunities to share best practices for carbon reduction.

[1] https://www.energy.gov/articles/doe-announces-pledges-90-organizations-slash-emissions-50-within-decade

[USA] Survey: Majority of Americans don’t support the complete phaseout of fossil fuels

According to a new survey from the Pew Research Center, 69% of Americans support taking steps towards being carbon neutral by 2050, but only 31% want a complete phaseout of fossil fuels.[1] The survey, which was released on March 1, 2022, included 10,237 adults and was conducted from January 24 to 30, 2022. The report notes that the survey was conducted before Russia invaded Ukraine, which may affect public opinion on energy issues. Pew found that 69% of adults prioritize developing alternative energy sources, such as wind and solar, over expanding the production of oil, coal, and natural gas. In addition, 72% support the federal government’s support of wind and solar power. 67% say that the country should use a mix of fossil fuel and renewable energy sources.

Pew said that party affiliation remains dominant in views of climate and energy issues. Generally, Republicans and Republican-leaning independents prioritize expanding fossil fuels over developing alternative energy sources and believe that fossil fuels should remain a part of the energy picture in the U.S. Democrats and Democratic-leaning independents favor prioritizing the development of alternative energy sources and support the U.S. taking steps to become carbon neutral by 2050. The analysis also found that partisan divisions have widened on climate policy in the past few years. Democrats increasingly believe that climate policies do more good than harm for the environment and help the U.S. economy, whereas 62% of Republicans say they generally hurt the U.S. economy, up from 52% in 2019.

[1] https://www.pewresearch.org/science/2022/03/01/americans-largely-favor-u-s-taking-steps-to-become-carbon-neutral-by-2050/

[USA] White House announces investments to tackle rare mineral supply chain vulnerabilities

On February 22, 2022, the White House announced that it has awarded MP Materials $35 million for its magnet processing plant to separate and process heavy rare earth elements at its facility in Mountain Pass, California, as part of a strategy to boost domestic production of rare earth metals.[1] The announcement follows an executive review of the vulnerabilities of the U.S.’s critical mineral and material supply chains, per Executive Order 14017. MP Materials, which operates the only rare earth mining and processing site of scale in North America, will also invest another $700 million of its own money into the effort. According to the press release, China currently controls 87% of the global permanent magnet market, which are used in electric vehicles and wind turbines.

In addition, Berkshire Hathaway Energy Renewables (BHE Renewables) announced that in spring 2022, they will break ground on a new demonstration facility in Imperial County, California, to test the commercial viability of their sustainable lithium extraction process from geothermal brine. If successful, the company could reach commercial-scale production of battery-grade lithium hydroxide and lithium carbonate by 2026. Other announcements in the White House fact sheet included a pilot from Redwood Materials for collection and recycling of end-of-life lithium-ion batteries at its Nevada based facilities and the Department of Energy’s (DOE) $140 million demonstration project funded by the Bipartisan Infrastructure Law to recover rare earth elements and critical minerals from coal ash and other mine waste.

[1] https://www.whitehouse.gov/briefing-room/statements-releases/2022/02/22/fact-sheet-securing-a-made-in-america-supply-chain-for-critical-minerals/

[USA] FERC adopts new criteria for reviewing natural gas infrastructure proposals

On February 17, 2022, the Federal Energy Regulatory Commission (FERC) adopted a new framework for reviewing natural gas infrastructure proposals, updating the previous framework set in 1999.[1] The new framework includes expanded criteria for deciding whether facilities are needed and potential economic and environmental impacts. Previously, FERC judged whether a pipeline was needed only by whether it had contracts for its supply. The Commission will now consider factors like demand projections and potential cost savings to customers. FERC also issued an interim policy statement outlining how it will consider greenhouse gas (GHG) emissions when reviewing natural gas projects. Under the interim policy, projects that will release at least 100,000 metric tons per year of GHG emissions will require an environmental impact statement instead of a less rigorous environmental assessment. The interim GHG policy framework takes effect immediately, including on pending projects. Comments on the policy are due on April 4, 2022.

The policies were approved along party lines, with the commission’s three Democratic members approving the policies and the two Republican members opposing them. The policy statements are partly in response to a series of court decisions that overturned some of FERC’s approvals of gas projects, such as Sabal Trail, Birckhead, Vecinos, and Spire Pipeline. Those court decisions cited the commission’s failure to consider several factors, including GHG emissions, whether the project was needed, and potential effects on environmental justice communities. The new policies are intended to improve the legal durability of the Commission’s decisions moving forward.

[1] https://www.ferc.gov/news-events/news/ferc-updates-policies-guide-natural-gas-project-certifications

[USA] Biden administration launches initiatives aimed at reducing emissions from industry

On February 15, 2022, the Biden administration launched new initiatives aimed at reducing greenhouse gas (GHG) emissions from the industrial sector, which accounts for nearly a third of domestic GHG emissions.[1] The initiatives use funds from the 2021 Infrastructure Investment and Jobs Act. As part of this effort, the Department of Energy (DOE) is launching three clean hydrogen initiatives: $8 billion for Regional Clean Hydrogen Hubs; $1 billion for a Clean Hydrogen Electrolysis Program; and $500 million for Clean Hydrogen Manufacturing and Recycling Initiatives. In addition, the Council on Environmental Quality (CEQ) and White House Office of Domestic Climate Policy is establishing a Buy Clean Task Force to direct part of the federal government’s annual spending towards low-carbon materials manufactured domestically. The task force will include the departments of Defense, Energy and Transportation, the Environmental Protection Agency (EPA), the General Services Administration (GSA), and the White House Office of Management and Budget.

The CEQ also issued guidance to federal agencies on the responsible deployment of Carbon Capture, Utilization, and Sequestration (CCUS) technologies. According to the press release, the administration is in talks with the European Union to reach an agreement to reduce trade in high-emissions steel and aluminum products.

[1] https://www.whitehouse.gov/briefing-room/statements-releases/2022/02/15/fact-sheet-biden-harris-administration-advances-cleaner-industrial-sector-to-reduce-emissions-and-reinvigorate-american-manufacturing/

[USA] Arizona Corporation Commission vote to reject 100% clean energy rules package

During a meeting on January 26, 2022, the Arizona Corporation Commission voted 3-2 to reject the adoption of a set of clean energy rules.[1] Included in the rules package was a proposal to require the state’s investor-owned utilities to provide all of their electricity from zero-carbon resources by 2070. In the interim, the package would have required utilities to cut their carbon emissions by 50% by 2032 relative to average emissions between 2016 and 2018. The package also included new demand-side resource standards and integrated resource planning reforms. In addition, the package would have expanded energy efficiency programs for Arizona Public Service (APS) and Tucson Electric Power (TEP). APS and private companies that do business in Arizona like Apple Inc., PayPal Holdings Inc., and Ikea have expressed support for the package.

Although the commission had previously voted in favor of the 100% clean power plan, the three Republican members ultimately voted against the package. Commission Chair Lea Marquez Peterson, R, cited cost concerns. Commissioner Jim O'Connor, R, also said state-level rules were not necessary as utilities have already made commitments to clean energy. Democrat commissioners Anna Tovar and Sandra Kennedy argued that the rules would cut customer bills and spur investments in clean energy.

[1] https://www.utilitydive.com/news/arizona-regulators-reject-100-clean-energy-rules-package-energy-efficienc/617823/

[USA] Virginia governor initiates withdrawal from RGGI

On January 15, 2022, the new Virginia governor, Glenn Youngkin (R), signed an executive order to initiate the state’s withdrawal from the Regional Greenhouse Gas Initiative (RGGI).[1] RGGI is a market-based program that sets limits for carbon emissions from power plants in 11 states[2]. Under RGGI, utilities sell carbon allowances during auctions, and the proceeds are given to participating states for clean energy, storm protection plans, or other climate-related programs. Virginia joined RGGI in 2020 through the Clean Energy and Community Flood Preparedness Act.

Governor Youngkin cited the program’s effects on energy prices as a motivator for the action. According to the executive order, which was signed on his first day in office, utilities are allowed to pass on the costs of purchasing allowances to their customers, leading to higher bills for ratepayers. The new executive order directs the Department of Environmental Quality and the secretary of natural and historic resources to deliver a report within 30 days that evaluates the costs and benefits of participation in RGGI. The executive order also calls for the development of a proposed emergency regulation to repeal RGGI-related rules set by the Air Pollution Control Board. According to the order, Virginia will notify the nonprofit corporation that runs RGGI of the state’s actions and Governor Youngkin’s intention to withdraw from RGGI through legislative or regulatory action.

[1] https://www.governor.virginia.gov/media/governorvirginiagov/governor-of-virginia/pdf/74---eo/74---eo/EO-9--RGGI.pdf

[2] Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, Vermont, and Virginia.

[USA] Virginia regulators approve Dominion’s grid transformation plan

On January 7, 2022, the Virginia State Corporation Commission (SCC) approved the second phase of Dominion Energy Virginia’s plan for electric distribution grid transformation projects.[1] The proposed projects focus on grid reliability and are designed to accommodate the expected increase in distributed energy resources (DER) caused by policy developments like the Virginia Clean Economy Act of 2020 and Federal Energy Regulatory Commission (FERC) Order 2222. The plan’s second phase includes $666.5 million in capital spending for 2022 and 2023.

The SCC approved many of the proposed projects subject to certain requirements such as cost caps. In particular, the SCC approved the Advanced Metering Infrastructure (AMI) proposal, which will deploy 1.1 million smart meters and associated infrastructure. Deploying the AMI plan will cost $198.3 million. The commission previously rejected the proposal due to the plan’s high cost and speculative nature. The commission’s approval was partly due to a new proposal for system-wide implementation of time-varying rates and an active experimental time-of-use rate, which requires AMI. In addition to the AMI proposal, the SCC approved investments in security, customer education, and telecommunications. The commission also directed Dominion to take certain specific actions in implementing the approved projects and filing its next petition, including performing a robust cost-benefit analysis and incorporating a more thorough projection of DER penetrations and anticipated reliability impacts.

[1] https://www.scc.virginia.gov/newsreleases/release/SCC-Approves-DEV-Grid-Transformation-Plan

[USA] EPA announces new rule to reduce methane emissions

On November 2, 2021, the Environmental Protection Agency (EPA) introduced a proposed new Clean Air Act rule to reduce methane emissions from the oil and natural gas industry, including, for the first time, reductions from existing sources.[1] The proposed rule is in response to Biden’s January 20, 2021, executive order, which, among other things, directed the EPA to propose new regulations to reduce methane and volatile organic compound (VOC) emissions from existing operations in the oil and gas sector. One-third of the warming from greenhouse gases comes from methane, which traps about 30 times as much heat as carbon dioxide over 100 years. In the U.S., the oil and natural gas industry is the largest industrial source of methane emissions. Oil and gas operations also emit VOCs and other air pollutants.

According to the EPA, the proposed rule would reduce 41 million tons of methane emissions from 2023 to 2035, the equivalent of 920 million metric tons of carbon dioxide. In 2030 alone, the rule would reduce methane emissions by 74% compared to 2005. It would accomplish this through updated and broadened emission reduction requirements for new, modified, and reconstructed oil and gas sources for the first time under the Clean Air Act; and requirements that states develop plans to limit methane emissions from existing sources nationwide, along with presumptive standards for existing sources to assist in the planning process.  

[1] https://www.epa.gov/newsreleases/us-sharply-cut-methane-pollution-threatens-climate-and-public-health

[USA] FERC and NERC release new report on February 2021 extreme weather event

On September 23, 2021, the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corporation (NERC) released a joint report on the February 2021 cold weather event, which left millions in Texas and the Midwest without power.[1] According to the report, stronger weatherization standards for the gas and electric sectors are necessary for maintaining reliability and avoiding a repeat of the February outages. FERC and NERC’s report found that a large cause of the grid failure was due to the natural gas system, although other generators were also affected. The report found that 1,045 individual generating units were affected by the cold weather, "of which 604 were natural-gas fired generators." The preliminary report makes 28 recommendations, including nine key recommendations. The key recommendations include revising reliability standards to require generator owners to better prepare for extreme weather and allowing generators to recover the costs of weatherization.

The report found that this was the fourth time in the last decade that cold weather "jeopardized bulk-power system reliability due to unplanned cold weather-related generation outages;” there were similar events in 2011, 2014, and 2018. After the 2011 cold weather event, FERC and NERC released a report that recommended the development of winterization standards, but NERC ultimately decided not to act on that recommendation. During FERC’s open meeting to present the 2021 report, Chairman Richard Glick committed to stricter requirements and said new rules would cast a wide net.

[1] https://ferc.gov/february-2021-cold-weather-grid-operations-preliminary-findings-and-recommendations

[USA] Illinois Senate passes clean energy bill, includes subsidies for nuclear plants

The Illinois Senate voted 39-16 on September 1, 2021, to pass Senate Bill (SB) 18, an energy bill that would decarbonize the state's electric grid by 2050.[1] Two Republicans joined with 37 Democrats to vote for the bill. SB18 aims to prevent the premature closure of nuclear plants, and to this end, the bill contains $694 million in taxpayer funds for Exelon's Byron, Dresden, and Braidwood power plants. Exelon has said that it will shut down its Byron plant in September 2021 and its Dresden plant in November 2021.[2] However, Exelon said that it has "established off-ramps" that will allow contingencies for continuing operations of the plants if legislation is passed. In addition to nuclear subsidies, the bill also provides more than $600 million in subsidies for renewable power-related initiatives.

The legislation still needs to pass the House, which has not set a date as to when it will return. Environmental groups and Governor J.B. Pritzker, D, have raised objections to the bill's plans for coal plants, saying that coal plants would not be phased out quickly or allowed to keep running with unproven carbon-capture equipment. Under SB18, the municipally-owned Prairie State coal-fired plant, the largest carbon-emitting power plant in Illinois and one of the largest in the nation, would shut down by 2045. Environmental groups and the governor say that this is not soon enough, and there need to be provisions to significantly reduce the plant’s emissions. In a statement, the governor said his "office looks forward to working with members of the House to finalize an energy package that puts consumers and climate first."

[1]https://www.ilga.gov/legislation/billstatus.asp?DocNum=18&GAID=16&GA=102&DocTypeID=SB&LegID=127591&SessionID=110

[2] https://www.reuters.com/legal/litigation/illinois-senate-passes-bill-save-nuclear-plants-sends-house-2021-09-01/

[USA] Coalition sues Alaska governor to return money rural energy program

On July 19, 2021, a coalition that includes the Alaska Federation of Natives, electric cooperatives, and several local governments[1] filed a lawsuit against Alaska Governor Mike Dunleavy (R) to demand that his administration release money intended to subsidize power bills in rural Alaska.[2] The Power Cost Equalization Endowment Fund is a program that reduces rural customers' electric rates to levels comparable to those paid in urban areas of Alaska. The program reimburses utilities for credits they extend to customers. The Power Cost Equalization Endowment Fund serves more than 80,000 citizens who are largely reliant on diesel for power generation. According to the Department of Revenue, the fund was valued at about $1.2 billion as of June 30, 2021.

The lawsuit claims that in 2019 the Dunleavy administration identified without "any legal explanation or justification" a larger list of accounts, including the Power Cost Equalization Endowment Fund, to be swept into the budget reserve compared to previous administrations. A budget reserve is a fund set aside to meet short-term deficits. The sweep happens automatically, and actions to reverse it and return funds to the accounts require three-quarters of legislators to pass. The legislature did not meet the three-quarter vote requirement in June 2021 amid a budget dispute. The attorney for the plaintiffs said that issue isn't with the failed vote but with the administration's decision to sweep money from the endowment fund into the budget reserve.

[1] Alaska Federation of Natives, First Alaskans Institute, Association of Village Council Presidents, Aleutians East Borough, Organized Village of Kake, City of Saint Paul, City of Adak, City and Borough of Yakutat, City of Sand Point, Alaska Village Electric Cooperative, Inn Electric Cooperative, Inside Passage Electric Cooperative, Kotzebue

Electric Association, Naknek Electric Association, Nushagak Electric & Telephone Cooperative, Unalakleet Valley Electric Cooperative, Cordova Electric Cooperative, and Tanalian Electric Cooperative

[2] https://public.courts.alaska.gov/web/media/MRCF/3AN-21-06737CI/complaint.pdf

[USA] House Democrat launches "Hot FERC Summer" campaign, introduces new legislation for FERC

On July 20, 2021, Representative Sean Casten (D-IL) launched the "Hot FERC Summer" campaign aimed at boosting the Federal Energy Regulatory Commission's (FERC) visibility in Congress.[1] Hot FERC Summer is a play on rapper Megan Thee Stallion's 2019 song "Hot Girl Summer." The campaign is also intended to highlight the need for President Biden to name a Democratic commissioner to FERC to give Democrats a majority on the commission for the first time in years.

The campaign was launched alongside the Energy PRICE Act, a policy that clarifies that FERC has the responsibility to consider the cost of greenhouse gas (GHG) emissions in ratemaking decisions. The legislation is co-sponsored by Representatives Jared Huffman (D-CA), Mike Levin (D-CA), and Suzanne Bonamici (D-OR). It points out that under the Federal Power Act (FPA), Congress granted FERC the authority and responsibility to include GHG emissions and other external factors when considering what rates are just and reasonable. Under this policy, FERC could conclude that it has the authority to implement a carbon price in U.S. wholesale power markets. In addition to the Energy Price Act, Rep. Casten has plans to introduce or has introduced two other FERC-related bills. The congressman plans to reintroduce the Right to Timely Rehearings at FERC Act, intended to expedite the rehearing process. Additionally, in April 2021, Rep. Casten and Sen. Martin Heinrich (D-NM) introduced the Interregional Transmission Planning Improvement Act to improve regional transmission planning.[2]

[1] https://casten.house.gov/media/press-releases/congressman-casten-kicks-hot-ferc-summer-introduction-energy-price-act-and

[2] https://casten.house.gov/media/press-releases/casten-heinrich-announce-bicameral-bill-recharge-electric-transmission-planning

[Japan] Japan sets new 2030 target for renewables

Japan's Ministry of Economy, Trade and Industry (METI) released a draft of its latest energy policy on July 21, 2021, which includes raising the share of non-fossil fuels for electricity generation to about 60% of total production by fiscal 2030—2.5 times the current level.[1] The first revision of the energy policy comes after Japan nearly doubled its 2030 target in April 2021 to 46% from 26% from 2013 levels. Mitsuhiro Nishida, METI’s director of energy strategy office, said that the revised 2030 energy plan is an "ambitious outlook on what needs to be done to fulfill the 46% reduction target.”[2] The policy draft says renewables should account for 36% to 38% of total power production by 2030, up from 22% to 24% in the previous plan. The draft plan keeps the target for nuclear power at 20% to 22% in 2030. Renewables and nuclear power made up 18% and 6% of total power generation in fiscal 2019, respectively. The draft basic energy policy also projects that ammonia and hydrogen will account for about 1% of the electricity mix in 2030. The new draft also reduces the share of fossil fuels compared to the previous plan. Under the new plan, the share of coal in the country's portfolio will be 19% in 2030, down from 32% in 2019. Similarly, the draft reduces natural gas and oil targets to 20% and 2%, respectively, down from 37% and 7% in 2019.

[1] https://www.reuters.com/business/energy/japan-boosts-renewable-energy-target-2030-energy-mix-2021-07-21/

[2] https://www.spglobal.com/platts/en/market-insights/topics/hydrogen

[USA] South Carolina regulators reject Duke IRPs

On June 17, 2021, the South Carolina Public Service Commission (PSC) voted 4-2 to reject the integrated resource plans (IRP) submitted by two Duke Energy subsidiaries, Duke Energy Carolinas and Duke Energy Progress.[1] The decision comes ten months after Duke filed its IRPs with regulators in North and South Carolina. The IRPs outlined six pathways for its electricity mix under different carbon policy scenarios. Duke favors the base case without strict carbon regulations. Under this pathway, Duke would add about 8.6 GW of solar and more than 1 GW of storage by 2035. The utility would also add 9.6 GW of new natural gas and close its remaining coal plants.

According to the PSC, Duke’s IRPs failed to meet the standards set in the state’s 2019 Energy Freedom Act, which aims to boost clean energy technologies by requiring utilities to consider procuring all sources of electricity generation. The commission questioned the modeling Duke used to project future natural gas prices as well as its estimation of the ability of solar to meet the state’s energy needs. The PSC’s directive asks the utility to make several changes to its plan related to modeling and energy price forecasts. The PSC requests that Duke’s assessments include 20-year Purchase Power Agreements for third-party solar priced at $38/MWh as a selectable resource, with additional PPA pricing at $36/MWh and $40/MWh. These prices are roughly on par with other 20-year PPAs in the region. A more detailed order is expected in the coming weeks. Once the order is out, Duke will have 60 days to file its modified IRP, followed by a 60-day comment and review period. The PSC then has 60 days to approve or reject the modified IRP.

[1] https://dms.psc.sc.gov/Attachments/Matter/f30b83c7-3382-4d64-b0b6-b59712378b3d

[USA] Federal judge reverses Biden administration pause on new oil and gas leasing on federal lands

On June 15, 2021, Judge Terry Doughty, a federal judge in the U.S. District Court for the Western District of Louisiana, ordered new oil and gas leasing to restart in public lands and waters.[1] The move reverses President Biden’s January 2021 executive order that paused new lease sales during a review of the federal oil and gas program.[2] The review would likely include an assessment of the climate impacts of drilling for federal resources, which could lead to new restrictions on drilling in sensitive areas or higher royalty rates.

Judge Doughty’s preliminary injunction reverses Biden’s leasing pause until the court decides on the arguments in the case, allowing leasing to resume nationwide. The judge said the Department of the Interior had overstepped its authority by halting new oil and gas leasing and cited the legal requirements to offer leasing under the Mineral Leasing Act and the Outer Continental Shelf Lands Act. According to Judge Doughty, federal agencies could cancel or suspend specific leases if they had identified problems but could not suspend leases for a review of the leasing program. He also rejected the Biden administration’s argument that the Department of Interior’s pause on new leases is not a final agency action that could be reviewed under the Administrative Procedure Act[3]. Judge Doughty’s decision is a win for Louisiana Attorney General Jeff Landry (R), who is leading a coalition of 13 attorneys in the case against the Biden administration’s leasing pause. The attorneys argue that the leasing pause could lead to economic harm in their states. The Biden administration cannot move forward until the case is resolved or there are further orders from Doughty, the 5th U.S. Circuit Court of Appeals, or the Supreme Court.

[1]https://naturalresources.house.gov/imo/media/doc/Terry%20Doughty%20June%2015%20Lease%20Sales%20Opinion.pdf

[2] https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/27/executive-order-on-tackling-the-climate-crisis-at-home-and-abroad/

[3] The Administrative Procedure Act governs the way in which administrative agencies of the federal government may propose and establish regulations. The legislation gives U.S. federal courts oversight over all agency actions. Under the Administrative Procedure Act, a court can decide that a final agency action is unlawful and set aside the action if it does not fulfill the legislation’s reasoned decision-making requirement.

[USA] Biden’s budget proposal includes major increases in overall clean energy spending

On April 9, 2021, President Joe Biden sent a preliminary outline of his budget request for Fiscal Year 2022 to Congress.[1] The $1.52 trillion budget request included new climate change investments, totaling more than $14 billion more compared to FY2021, across nearly all agencies. This is the first time that a budget request has detailed funding of specific climate programs. The administration is requesting a 10.2% increase to $46.1 billion for the Department of Energy (DOE), a 21.3% increase to $11.2 billion for the Environmental Protection Agency (EPA), and a 16.3% increase to $17.4 billion for the Department of the Interior (DOI). At the DOE, funding for clean energy programs includes $1.9 billion to support the development of a new energy efficiency and clean electricity standard, provide local grants to incentivize clean energy workforce support, and support the development of streamlined transmission. For the EPA, funding requested by the administration includes $110 million to restore EPA staff capacity to pre-Trump administration levels and $1.8 billion in programs to reduce greenhouse gas emissions. Biden’s budget request for the DOI includes $450 million to remediate orphaned oil and gas wells, remediate mining sites, and develop new jobs.

Proposed clean energy spending in other agencies includes $6.5 billion to the Department of Agriculture to spur rural clean energy projects and $300 million to the General Services Administration to electrify its vehicle fleet. The budget request follows the April 2021 release of the administration’s $2 trillion infrastructure plan, which proposed a federal clean electricity standard[2] and expanding clean energy tax credits. Both the budget request and the infrastructure plan are intended to put the U.S. on a path to achieve net-zero emissions by 2050.

[1] https://www.whitehouse.gov/wp-content/uploads/2021/04/FY2022-Discretionary-Request.pdf

[2] A clean electricity standard requires a percentage of retail electricity sales to come from low- and zero-carbon electricity sources. The share of clean electricity typically increases with time. Clean electricity standards are similar to renewable portfolio standards, which require that a certain percentage comes from renewable sources.

[USA] 13 states file lawsuit against Biden administration over oil and gas leasing plan

On March 24, 2021, 13 states[1], led by Louisiana Attorney General Jeff Landry (R), sued the Biden administration over its restrictions on new oil and gas leasing on federal lands and waters.[2] On the same day, Wyoming filed a separate challenge against the Biden administration in a different federal court.[3] On January 27, 2021, President Biden issued Executive Order 14008 which, among other initiatives, blocked new leasing while the administration conducts a review of the environmental impacts of the federal oil and gas program. The Louisiana-led lawsuit argues that the Biden administration violated requirements under the Outer Continental Shelf Lands Act (OCSLA) and the Mineral Leasing Act (MLA) to develop energy resources on federal lands and waters. According to the lawsuit, Biden’s policy could cause economic harm in fossil fuel-producing states like Louisiana and Texas. It could also cause energy prices to increase, which would indirectly harm the rest of the country. The lawsuit requested that the federal court block actions that relied on the executive order and allow the Bureau of Land Management (BLM) to restart quarterly oil and gas lease sales.

[1] Louisiana, Alabama, Alaska, Arkansas, Georgia, Mississippi, Missouri, Montana, Nebraska, Oklahoma, Texas, Utah and West Virginia

[2] http://agjefflandry.com/Article/10878

[3] https://governor.wyo.gov/media/news-releases/2021-news-releases/wyoming-launches-lawsuit-challenging-biden-administrations-federal-leasing

[USA] Texas PUC Chair resigns amid blackout crisis fallout

The Texas Public Utility Commission (PUC) Chair Arthur D'Andrea resigned March 16, 2021 at the request of Texas Governor Greg Abbott (R).[1] The move was the latest in a string of events following an extreme cold weather event in February 2021 that caused widespread blackouts in the state. D’Andrea is the third PUC commissioner to resign in as many weeks which leaves the appointed panel empty. D’Andrea had been under pressure from Lt. Governor Dan Patrick (R) to follow the advice of Potomac Economics, the Electric Reliability Council of Texas’ (ERCOT) independent market monitor, to correct $16 billion of excessive charges from the power outage crisis. D’Andrea had declined to revise real-time wholesale energy prices. His resignation was announced after Texas Monthly published a leaked recording where D’Andrea promised out-of-state investors that he would support efforts to prevent repricing of the excessive charges.[2] On March 15, 2021, the Texas Senate passed a bill that would mandate ERCOT move ahead with pricing corrections. However, the Texas House speaker said he did not believe ERCOT’s decision was an error which may mean an uphill battle for the proposal.

[1] https://www.utilitydive.com/news/texas-puc-chair-resigns-following-pressure-from-governor-refusal-to-repri/596843/

[2] https://www.texasmonthly.com/news-politics/wall-street-profited-off-texas-blackouts/