[USA] NY Gov. Hochul enacts gas ban and carbon trading program

On May 3, 2023, New York Governor Kathy Hochul (D) signed the FY 2024 Budget, which included several measures designed to accelerate the state’s shift away from fossil fuels, into law.[1] Included in the $229 billion budget is the nation’s first statewide ban on natural gas and other fossil fuels in new buildings, with the requirement coming into effect for new construction in 2025.[2] In addition, the budget includes the first cap-and-invest program on the East Coast. It authorizes the New York Power Authority (NYPA) to act as a developer of renewable power facilities and requires six peaker plants in New York City operated by NYPA to be shut down by 2030. The budget also allocates $400 million to provide relief to residents experiencing high electric bills as well as lowering energy burdens through electrifications and retrofits. New York has one of the most ambitious climate plans in the U.S. The state’s 2019 Climate Leadership and Community Protection Act (CLCPA) requires an 85% reduction in greenhouse gas emissions by 2050, almost half of which must be reached by 2030.

[1] https://www.governor.ny.gov/news/governor-hochul-announces-highlights-historic-fy-2024-new-york-state-budget

[2] Hospitals, critical infrastructure, and commercial food establishments are exempt. Buildings where the local grid is not capable of handling the load are also exempt.

[USA] New report finds clean energy investments totaled $40 billion since the IRA passed

According to a new report released by the American Clean Power Association (ACP) on December 14, 2022, over $40 billion of new grid-scale clean energy investments have been announced over the last three months, equal to the entire amount invested in 2021.[1] The Clean Energy Investing in America report covers a period of growth between August 16, 2022, the day the Inflation Reduction Act (IRA) was signed, and November 30, 2022. The report found that 20 new grid-scale clean energy manufacturing facilities have been announced in the U.S., which are expected to add 7,000 jobs. Twelve of these facilities are solar manufacturing facilities, a more than a 300% increase in solar module manufacturing capacity in the U.S. In total, 13 GW of clean energy project capacity has been announced.

The ACP report also found that utility companies expect consumer savings of over $2.5 billion. These utilities attributed these savings to federal incentives that make new project investments less expensive. In the press release, ACP interim CEO and Chief Advocacy Officer JC Sandberg urged “the administration and Congress to continue improving trade policies, enacting common sense permitting reform and finalizing effective tax implementation” to ensure the investments reach their full potential.

[1] https://cleanpower.org/news/new-report-clean-energy-industry-sees-massive-investments-since-august/

[USA] Senator Manchin releases permitting reform legislation

On September 21, 2022, Senator Joe Manchin (D-WV) released his long-awaited permitting reform legislation.[1] The permitting reform legislation follows a deal made between Senate Majority Leader Chuck Schumer, D-N.Y., House Speaker Nancy Pelosi, D-Calif., and President Joe Biden and Senator Manchin, wherein the Democratic leaders agreed to include permitting reform legislation in the upcoming continuing resolution (CR) in exchange for Manchin’s support for the Inflation Reduction Act (IRA) of 2022.

According to the bill summary, the legislation would require the president to designate 25 strategically important energy and mineral projects that would receive priority federal review. The bill also aims to speed up environmental reviews for major energy and natural resource projects under the National Environmental Policy Act (NEPA). Federal agencies would be required to finish environmental impact statements within two years and environmental assessments within a year. It would also require the issuance of all other permits within 180 days of finishing the NEPA process.

In addition, the legislation sets a 150-day statute of limitations for court challenges and requires courts to give agencies no more than 180 days to act on remanded or vacated permits. It also requires federal agencies to approve the Mountain Valley natural gas pipeline, which is set to run from West Virginia to southern Virginia. The bill would give the Department of Energy (DOE) secretary the ability to designate proposed transmission projects to be in the national interest and the Federal Energy Regulatory Commission (FERC) to approve them if they meet certain conditions. It also clarifies that FERC has jurisdiction over hydrogen pipelines.

Manchin’s proposed permitting reform could be included in a continuing resolution to keep funding the federal government after this fiscal year ends on September 30, 2022. Unlike the IRA, which was passed through a budget reconciliation measure[2], the continuing resolution will need at least 60 votes to pass, meaning that bipartisan support will be necessary.

[1] https://www.energy.senate.gov/services/files/EAB527DC-FA23-4BA9-B3C6-6AB108626F02?utm_source=DCS+Congressional+E-mail&utm_medium=Email&utm_term=https%3a%2f%2fwww.energy.senate.gov%2fservices%2ffiles%2fEAB527DC-FA23-4BA9-B3C6-6AB108626F02&utm_campaign=MANCHIN+RELEASES+COMPREHENSIVE+PERMITTING+REFORM+TEXT+TO+BE+INCLUDED+IN+CONTINUING+RESOLUTION

https://www.energy.senate.gov/services/files/92E7EAA5-E7BC-48E1-8E7F-FE688AE43252?utm_source=DCS+Congressional+E-mail&utm_medium=Email&utm_term=https%3a%2f%2fwww.energy.senate.gov%2fservices%2ffiles%2f92E7EAA5-E7BC-48E1-8E7F-FE688AE43252&utm_campaign=MANCHIN+RELEASES+COMPREHENSIVE+PERMITTING+REFORM+TEXT+TO+BE+INCLUDED+IN+CONTINUING+RESOLUTION

[2] Reconciliation is a special process used to quickly advance high-priority fiscal legislation. It can only be used for things that change spending or revenue. Reconciliation only needs a simple majority (51 votes) to pass through the Senate.

[USA] Democrats unveil bill with $369 billion in energy and climate spending

On July 27, 2022, with Senator Joe Manchin's (D-WV) support, Senate Democrats unveiled a budget reconciliation bill that includes $369 billion in climate and clean energy policies.[1] The proposed bill, called the Inflation Reduction Act of 2022, follows months of negotiations between Democratic leadership and Senator Manchin, who had opposed the Build Back Better bill passed by the House last fall. It would be the country's largest climate change bill if it makes it through the Senate and House. According to Senate Majority Leader Chuck Schumer's (D-NY) office, the legislation would reduce greenhouse gas emissions by roughly 40% by 2030.

Under the bill, existing renewable tax credits would be extended, and after 2025, they would become technology neutral and based on greenhouse gas emissions reductions. Existing nuclear power plants would be eligible for a production tax credit. In addition, the 45Q credit for carbon capture and storage (CCS) would be expanded and extended. The bill will offer a $4,000 credit for used clean vehicles and up to $7,500 for new clean vehicles. The deal includes the Methane Emissions Reduction Program, which would put a fee on excess methane emissions and offer up to $850 million in grants to industry to monitor and reduce methane. It also contains $60 billion for environmental justice, $60 billion for clean energy manufacturing, and $27 billion for a new federal green bank.

[1] https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_of_2022.pdf