[USA] Biden announces ban on oil, natural gas, and coal imports from Russia

On March 8, 2022, President Biden announced that his administration is banning all Russian oil, natural gas, and coal imports to the U.S. in response to Russia’s invasion of Ukraine.[1] During the announcement, President Biden warned that the ban could lead to a spike in gas prices within the U.S. and said that he would work to mitigate the ban’s impact. Biden called on domestic oil producers to pump more oil to keep prices from rising. In the long run, he stated that the way to avoid high gas prices is to speed up the transition to clean energy.

Russia is the third-biggest oil producer in the world and is the third-largest source of oil to the U.S. Russia accounts for about 8% of imported oil and petroleum products. According to the Energy Information Administration (EIA), about 1% of Russia’s annual oil production is sent to the U.S.[2] In 2021, the U.S. imported an average of 209,000 barrels per day of crude oil and almost 500,000 barrels per day of other petroleum products from Russia, according to the American Fuel and Petrochemical Manufacturers.[3] Most of the other petroleum products are unfinished oils that are processed into gasoline, diesel, and jet fuel, among other products.

[1] https://www.whitehouse.gov/briefing-room/statements-releases/2022/03/08/fact-sheet-united-states-bans-imports-of-russian-oil-liquefied-natural-gas-and-coal/

[2] https://www.eia.gov/international/analysis/country/RUS

[3] https://www.afpm.org/newsroom/blog/oil-and-petroleum-imports-russia-explained

[USA] Florida legislature approves changes to net metering policies

On March 7, 2022, the Florida Senate voted 24-15 to approve House Bill (HB) 741, which would revise existing laws for net metering.[1] Net metering is a tool that gives rooftop solar owners a credit for excess energy that they produce and send back to the grid. The state House of Representatives passed the bill 83-31 earlier in March, so the bill now heads to the governor to be signed into law. HB 741 directs the Public Service Commission (PSC) to adopt a new program for rooftop solar owners by 2029 that would change net metering requirements and have solar owners pay the full cost of electric service instead of being "subsidized" by non-net metering customers. Under the bill, solar panel owners who sell energy back to the grid would be paid a flat retail rate. In addition, utilities will be allowed to recoup fees by petitioning the PSC to ensure “that the public utility covers the fixed costs of serving customers who engage in net metering.” If enacted, new net metering customers connected in 2024 and 2025 will receive credits worth 75% of the current rate. The rate will then decrease to 60% in 2026 and 50% in 2027. Public utility customers who get an application approved before 2029 will be able to lock in their rates for 20 years.

[1] https://www.flsenate.gov/Session/Bill/2022/741

[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] SoCalGas announces development of 100% clean hydrogen pipeline system

Southern California Gas (SoCalGas) announced on February 17, 2022, that it has begun the planning and development process for the Angeles Link, a pipeline system that would deliver hydrogen to the Los Angeles area.[1] The utility also filed a request with the California Public Utilities Commission (CPUC) for the creation of a memorandum account to record project costs and provide customers and stakeholders with a way to track developments associated with the project. SoCalGas aims to decarbonize its operations by 2045 and says that the Angeles Link will accelerate progress toward this goal. According to SoCalGas, the project would be capable of delivering green hydrogen equivalent to 25% of its current natural gas capacity and displace up to 3 million gallons of diesel fuel per day. Based on potential hydrogen demand within the Los Angeles Basin, the utility expects that the new system will use 25-35 GW of renewable energy from wind, solar, or batteries. The electricity will be used to produce hydrogen from electrolyzers. The Angeles Link could reduce greenhouse gas emissions from electric generation, industrial processes, heavy-duty trucks, and other hard-to-electrify sectors.

[1] https://www.socalgas.com/sustainability/hydrogen/angeles-link

[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] Dominion Energy agrees to sell Hope Gas to Ullico

On February 11, 2022, Dominion Energy announced that it will sell its West Virginia-based natural gas company Hope Gas, also known as Dominion Energy West Virginia (DEWV), to Ullico’s infrastructure fund for $690 million.[1] The sale is expected to close in late 2022, subject to closing conditions, including approval from the Public Service Commission of West Virginia and clearance under the Hart-Scott-Rodino Act. Ullico’s infrastructure business plans to integrate DEWV with Ullico’s subsidiary Hearthstone Utilities, which owns and operates gas utilities in five states.[2] As part of the sale, Hearthstone will move its headquarters to West Virginia after the merger. DEWV employs about 300 and serves 111,000 West Virginia customers. It oversees 3,200 miles of gas distribution pipelines and more than 2,000 miles of gathering pipelines. Dominion Energy will continue to own and operate Mt. Storm Power Station in Mt. Storm, West Virginia. The transaction is not expected to impact customer rates. In addition, Hearthstone will uphold the current collective bargaining agreement with Utility Workers Union of America (UGWU Local 69) workers.

[1] https://news.dominionenergy.com/2022-02-11-Dominion-Energy-Agrees-to-Sell-West-Virginia-Natural-Gas-Distribution-Company-to-Ullico

[2] Indiana, Maine, Montana, North Carolina, and Ohio

[USA] Report finds U.S. clean power surpassed 200 GW in 2021 despite slowing deployment

According to the American Clean Power Association’s (ACP) Clean Power Quarterly 2021 Q4 Market Report, the U.S. surpassed 200 GW of utility-scale clean power capacity in 2021 despite the installations falling 3% compared to 2020.[1] The report, released on February 15, 2022, stated that 27.7 GW was installed in 2021, representing $39 billion in investments across the sector. More than 11.4 GW of projects that were expected to come online in 2021 were pushed back until 2022 or 2023. For solar, this was due to trade policies and lack of regulatory certainty, while the solar sector faced policy uncertainty, including the expiration of tax credits for wind projects. The ACP warned that the pace of installations fell short of what is needed to achieve a net zero emissions goal of 2035. Although 2021 was the second largest year on record for clean energy, it is only 45% of what is needed each year to achieve the 2035 goal.

Overall, wind grew by 12,747 MW, solar grew by 12,364 MW, and battery storage grew by 2,599 MW. Texas deployed the most clean energy, with 7,352 MW of new capacity, while the next nearest was California, with 2,697 MW. The ACP report found that Texas accounts for 17% of clean power under construction or in advanced development, and California with 11%. Over 1,000 clean energy projects are under development, totaling 120,171 MW of new capacity. Power purchase agreements included 28 GW last year.

[1] https://cleanpower.org/news/u-s-surpasses-200-gigawatts-of-total-clean-power-capacity-but-the-pace-of-deployment-has-slowed-according-to-acp-4q-report/

[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] Companies announce plans to support CCUS and hydrogen hub in northern Appalachia

On February 3, 2022, EQT Corporation, Equinor, GE Gas Power, Marathon Petroleum (including its affiliate MPLX), Mitsubishi Power, Shell Polymers (a petrochemicals division of Royal Dutch Shell), and U.S. Steel announced that they have formed a new alliance to develop a hydrogen and carbon capture hub in Ohio, Pennsylvania, and West Virginia.[1] Historically, the northern Appalachian region has been the center of oil and natural gas production. Both EQT and Equinor have existing natural gas operations in Pennsylvania, and Marathon Power operates an oil refinery in Ohio.

The alliance plans to build out infrastructure for blue hydrogen, which pairs hydrogen produced from natural gas with carbon carputer, utilization, and storage (CCUS) technologies. According to the press release, the hub and associated infrastructure could generate thousands of new jobs, protect existing jobs, and help achieve significant reductions in carbon dioxide emissions. The group is working to establish a collaborative network to directly engage industry, labor, universities, communities, government, research institutions, non-profit organizations, and other groups in these efforts. The alliance participants intend to define the vision and plans for a regional CCUS/hydrogen hub in the coming weeks. IN-2-Market, a regional non-profit organization, will manage alliance activities and engagement with regional stakeholders.

[1] https://www.equinor.com/en/where-we-are/united-states/20220203-initiative-support-low-carbon-hydrogen-hub.html

[USA] AGA Report: Natural gas key for a net-zero transition

According to a new report released on February 8, 2022, by the American Gas Association (AGA), natural gas will be essential for meeting the U.S.’s net-zero emissions goals.[1] The report, called Net-Zero Emissions Opportunities for Gas Utilities, underscores the advantages of gas technologies and distribution infrastructure. It analyzed four pathways to achieve net-zero emissions by 2050. All four pathways included expanded efficiency initiatives, a shift to renewable and low-carbon gas, reduced emissions from natural gas operations and pipelines, carbon offsets, and negative emissions technologies. According to the report, the number of natural gas customers will grow in all the scenarios.

The AGA’s report found that scenarios that include natural gas and existing utility delivery infrastructure offer opportunities to incorporate renewable and low-carbon gases, help minimize customer impacts, maintain high reliability, improve overall energy system resilience, and accelerate emissions reductions. It also found that the U.S. can achieve significant emissions reductions by accelerating the use of tools like high-efficiency natural gas applications, renewable gases, and methane reduction technologies. Further, supportive policies and regulatory approaches will be essential for gas utilities to achieve net-zero emissions. According to the AGA, the industry has already made great progress in reducing emissions: there has been a 69% reduction in methane emissions since 1990 and a 47% reduction in residential emissions per customer since 1971. Improvements in natural gas efficiency and the growth of renewable energy have led to carbon dioxide emissions from energy sources hitting 30-year lows.

[1] https://www.aga.org/globalassets/research--insights/reports/aga-net-zero-emissions-opportunities-for-gas-utilities.pdf

[USA] DOT and DOE announce $5 billion over five years for a national EV charging network

On February 10, 2022, the Department of Transportation (DOT) and the Department of Energy (DOE) announced nearly $5 billion in funding over five years that will be made available under the newly established National Electric Vehicle Infrastructure (NEVI) Formula Program.[1] The program will allocate funds the Infrastructure Investment and Jobs Act set aside to build a national electric vehicle (EV) charging network. The program’s funding will help states create a network of charging stations along designated Alternative Fuel Corridors, with a focus on the Interstate Highway System. The program will make $615 million available to states in Fiscal Year 2022. Texas will receive the most money in Fiscal Year 2022, with $60.4 million. A second competitive grant program, designed to boost EV charging access along alternative fuel corridors and rural and underserved communities, will be announced later this year. $2.5 billion will be eligible for competitive bids under this program.

States will need to submit an EV Infrastructure Deployment Plan to the new Joint Office of Energy and Transportation before accessing the funds. The EV Infrastructure Deployment Plan will describe how the state intends to use its share of the program’s funds in line with Federal Highway Administration (FHWA) guidance. The DOT and DOE will be releasing more specific requirements within 90 days. States must submit their plans to the joint office by August 1, 2022, and the FHWA will review them by September 30, 2022.

[1] https://highways.dot.gov/newsroom/president-biden-usdot-and-usdoe-announce-5-billion-over-five-years-national-ev-charging

[USA] Federal judge blocks largest-ever U.S. offshore oil lease

On January 27, 2022, Judge Rudolph Contreras for the U.S. District Court for the District of Columbia blocked the Bureau of Ocean Management’s (BOEM) approval for Lease 257 in the Gulf of Mexico.[1] The lease sale was held in November 2021 and included 80.8 million acres on the outer continental shelf. It was the largest offshore lease sale in U.S. history. Initially, the Biden administration blocked the lease sale, which was approved under the Trump administration, as part of the president’s executive order pausing new oil and gas leasing on public lands and federal waters. However, in June 2021, the U.S. District Court for the Western District of Louisiana found that the Biden administration’s pause violated requirements under the Outer Continental Shelf Lands Act (OCSLA) to offer areas up for oil and gas development. BOEM then proceeded with the lease sale in the Gulf of Mexico.

In August 2021, Earthjustice filed a lawsuit on behalf of Healthy Gulf, Center for Biological Diversity, Sierra Club, and Friends of the Earth to prevent BOEM from authorizing development on the leases sold in 2021. The conservation groups claimed that the 2017 environmental analysis that the Biden administration used to hold the lease sale was faulty. They claim that BOEM failed to look at new information about the emissions impact of leasing when it reissued its record of decision for Lease 257. They also argued that leasing has negative impacts on threatened marine life. The judge ruled in the conservation groups’ favor, stating that BOEM’s failure to calculate potential emissions from foreign oil consumption had violated the National Environmental Policy Act.

[1] https://int.nyt.com/data/documenttools/78-memorandum-opinion-1-27/b0903c94e57b0cb5/full.pdf

[USA] Daimler, Next Era, and Blackrock announce plans to build a network of charging infrastructure for commercial vehicles across the U.S.

On January 31, 2022, Daimler Truck North America (DTNA), NextEra Energy Resources, and BlackRock Renewable Power announced that they have signed a Memorandum of Understanding (MOU) to lay the foundation for a proposed joint venture to build out a nationwide network to fuel medium- and heavy-duty electric and hydrogen fuel cell vehicles by the middle of the decade.[1] The joint venture is expected to start operations in 2022, with initial funding of $650 million divided equally among the three parties. The companies plan to build a network of charging sites on critical freight routes along the east and west coasts and in Texas by 2026 by leveraging existing infrastructure and amenities and adding complementary greenfield sites to meet customer demand. The first phase of the effort is set to begin construction in 2023. According to the press release, the initial focus will be on battery-electric vehicles, followed by hydrogen fuel cell vehicles. The sites will be available to light-duty vehicles as well.

[1] https://www.prnewswire.com/news-releases/daimler-truck-north-america-nextera-energy-resources-and-blackrock-renewable-power-announce-plans-to-accelerate-public-charging-infrastructure-for-commercial-vehicles-across-the-us-301471263.html

[USA] AEP announces plans to build $100M transmission control center in Louisiana

On January 20, 2022, in conjunction with Louisianna Governor John Bel Edwards (D), American Electric Power (AEP), which manages the largest electricity transmission system in the U.S., announced plans to invest $100 million to develop a new Shreveport Transmission Control Center (STCC) in Caddo Parish, Louisiana.[1] The facility will be located in the Resilient Technology Park and will span 77,000 square feet on 30 acres. Construction is set to begin in the first quarter of 2022, with an operations date slated for mid-year 2023. Once complete, the STCC will control the operations of AEP’s transmission system in Southwest Power Pool and collaborate with the AEP Transmission Control Center in Corpus Christi, Texas, to control the operations of AEP’s transmission system in Electric Reliability Council of Texas (ERCOT). The facility will support both the hardware and software required to assess, monitor, and control AEP’s national transmission grid. The STCC will include a new substation, additional electric grid infrastructure, and state-of-the-art equipment. According to the press release, the project will create 20 direct new high-paying jobs and retain 20 existing jobs. In addition, the Louisiana Economic Development estimates the project will result in 63 indirect jobs. To secure the STCC project, Louisianna offered AEP an incentive package that included a $1 million performance-based award for infrastructure costs. AEP is also expected to utilize the state’s Quality Jobs program.

[1] https://gov.louisiana.gov/index.cfm/newsroom/detail/3540

[USA] WoodMac analysis suggests California's proposed NEM tariffs could cut state residential solar market in half by 2024

According to new analysis from Wood Mackenzie (WoodMac) released on January 25, 2022, the California Public Utilities Commission’s (CPUC) proposed net energy metering (NEM) tariffs could cut the state’s residential solar market in half by 2024.[1] The current NEM was adopted in 2016 and gives customers a credit at the retail rate for energy that they provide to the grid. A recent analysis by the commission suggested that the framework has a negative effect on non-participating customers, is not cost-effective, and harms low-income ratepayers. Subsequently, the CPUC released a proposal in December 2021 that would revise the current NEM framework and replace it with a net billing tariff based on the avoided cost values of behind-the-meter resources.[2]

Although the final changes to the NEM framework are in flux, WoodMac research analyst Bryan White said that the current proposal would more than double the payback period of solar projects, increasing from five to six years under current net metering to 14-15 years, depending on the utility. Woodmac assumes that the proposed decision, if approved, will begin impacting installation in July or August of this year. If that is the case, installers will likely spend the first six months of 2022 selling systems and submitting interconnection applications under the current rates. This could lead to record capacity additions before activity drops in the second half of the year.

[1] https://www.woodmac.com/press-releases/nem-3.0-pd-will-cut-california-solar-market-in-half-by-2024/

[2] https://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M430/K903/430903088.PDF

[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] Great River Energy announces agreement with Apex Clean Energy for 400 MW wind project in North Dakota

On January 18, 2022, Great River Energy, an electric transmission and generation cooperative in Minnesota, announced that it has reached an agreement to receive energy from Apex Clean Energy’s 400 MW wind energy project in Mclean County, North Dakota.[1] The Discovery Wind project is expected to reach commercial operations in 2025 and will be the largest project in North Dakota. Electricity from the project will be delivered via a 436-mile high-voltage direct-current (HVDC) transmission system. According to the press release, the project will fulfill a large portion of Great River Energy’s renewable energy needs and deliver wind energy west of the Twin Cities. In 2020, the cooperative announced plans to phase out the remaining coal in its portfolio and more than double its renewable energy.

The cooperative is converting the coal-based Spiritwood Station power plant located near Jamestown, North Dakota, to be fueled mostly with natural gas and developing a 1 MW, multiday, grid-scale battery in Cambridge, Minnesota. Great River Energy is also currently in the process of selling its 1,100-MW Coal Creek Station power plant and the 436-mile HVDC transmission system, both located in Mclean County, to Rainbow Energy Center and Nexus Line, respectively. The transaction will be finalized upon approval from Great River Energy’s member-owner cooperatives. The cooperative is on track to reduce its carbon dioxide emissions by more than 80% by 2025, achieving Minnesota’s emissions target decades ahead of schedule.

[1] https://greatriverenergy.com/great-river-energy-to-sign-agreement-with-apex-clean-energy-for-400-megawatt-discovery-wind/