BIL/IRA Implementation Digest — January 6, 2025

by Joe Cullen

Jan 6, 2025 | BIL/IRA Implementation Digest

Upcoming Implementation Webinars

  • January 14 & 15, 2025 @11:00AM – 2:30PM – ReImagine Appalachia’s 2025 Strategy Summit – Join ReImagine Appalachia’s for its 5th annual virtual strategy summit to discuss all of the coalition’s various agenda topics and organize them into a work plan for the upcoming year. Register Here
  • January 31, 2025 @ 4:00PM – Deadline – The Solar for Schools grant program, funded with $25 million in state funds will cover up to 50% of costs for installing solar in public school districts, charter schools, and community colleges.
  • February 20, 2025 11:00 AM –  12:00 PM ET – Community Event – Reimagine Appalachia – Community Benefits Network Webinar – Project Labor Agreements (PLAs) & how they deliver value to taxpayers, and how to effectively include them in your community on economic development projects. Register Here. Find an excellent Background Briefing on Community Benefits Agreement Here.

PA BIL/IRA Grant Program Updates/Reports

Biden-Harris Administration Announces Nearly $1.6 Billion in Environmental and Climate Justice Community Change Grants – EPA News Release: On $1.6 Billion in Environmental and Climate Justice Community Change Grants – Community Change Grants Selections | US EPA – See Pittsburgh Conservation Corps/PowerCorpsPHL & Grays Ferry Community Resilience Hub Grant Award Summaries: Here

Abandoned Mine Lands and Acid Mine Drainage Grants – On December 17, 2024 – PA DEP announced $19.6 million in awards to support eight local abandoned mine lands reclamation and water restoration projects in six counties (Clearfield, Greene, Indiana, Lackawanna, Schuylkill and Tioga) as part of the federally-funded Abandoned Mine Lands and Acid Mine Drainage Grant Program. This new federal BIL grant is part of more than $700 million Invested into reclaiming Pennsylvania’s abandoned mine lands since 2022. Shapiro Administration Awards $19.6 Million to Address Largest Inventory of Abandoned Mines in the Nation – Press Release December 17, 2024

Investments from EPA Under the Bipartisan Infrastructure Law and the Inflation Reduction Act – This map includes awarded Bipartisan Infrastructure Law and Inflation Reduction Act investments and an abridged version of Inflation Reduction Act award selections. Awarded data is updated daily by EPA and allows users to explore the investments made in the health, equity, and resilience of American communities.

Schools can apply for state aid to install solar energy, save money – by Rachel McDevitt – StateImpact PA – Dec. 9, 2024 – Solar power has grown rapidly over the last decade as the price of solar panels has fallen. Although electricity from solar is one of the cheapest forms of energy over the life of the panels, the upfront cost of solar can be a deterrent. The Solar for Schools grant program, funded by $25 million in state money, will cover up to half the project cost of installing solar for grant winners. It’s open to public school districts, intermediate units, charter schools & community colleges. Applications due Jan. 31, 2025.

This Pennsylvania school is saving big with solar and EV school buses – by Jeff St. John –Canary Media – December 19, 2024 – When Steelton-Highspire School District decided to go solar, it wasn’t because of climate altruism. It wasn’t sustainability goals that drove it to convert its six school buses from diesel to electric, either. Instead, the 1,377-student district, located in a historic Pennsylvania steelmaking town where unemployment is high and tax revenue is low, has a simple guiding principle, according to Superintendent Mick Iskric: ​“We do things out of necessity. We’re broke.”

Clean Energy Workforce: Needs and Opportunities for Southwestern PA – A new Report from December 2024 by Sustainable Pittsburgh – Clean Energy Workforce is a comprehensive review of the opportunities and challenges for building a robust clean energy workforce in southwestern Pennsylvania. The Report draws on insights gathered over three years of stakeholder engagement, including contributions from the Clean Energy Workforce Roundtable, a regional network facilitated by Sustainable Pittsburgh on the growing demands of the clean energy sector. Clean energy jobs in PA experienced over four percent growth in 2022, expanding 1.5 times faster than the state’s overall economy, according to the 2023 Clean Jobs PA report.

 

US DOE Report on LNG Exports Released

On December 17, 2024, the U.S. Department of Energy released an updated study of U.S. liquefied natural gas (LNG) exports required by Congress under the federal Natural Gas Act to evaluate the public interest of proposed exports to countries with which the United States does not have a Free Trade Agreement. The study will have a 60-day comment period that will begin once published in the Federal Register.

Biden throws up a last-minute obstacle to Trump’s natural gas plans – by Maxine Joselow, Washington Post, December 17, 2024 – An Energy Department study concludes that unfettered U.S. exports of liquefied natural gas, or LNG, would harm the environment and the economy. The analysis found that sending more gas overseas would leave less gas available at home, raising wholesale domestic natural gas prices by roughly 31 percent.

US LNG exports raise electricity bills, gas prices and emissions, DOE report concludes – by Robert Walton Senior Reporter – Utility Dive – Dec. 18, 2024

‘Unfettered’ Gas Exports Would Harm U.S. Economy, Energy Secretary Warns – By Lisa Friedman & Coral Davenport – New York Times – Dec. 16, 2024 – Jennifer Granholm said a new analysis showed that the continued pace of exports was “neither sustainable nor advisable.” “If the US were to continue exporting liquefied natural gas in the way that has made it the world’s biggest gas supplier, it would drive up costs for consumers &  businesses, pollute struggling communities & increase global greenhouse gas emissions.

See: Full DOE Report – 2024 LNG Export Study: Energy, Economic & Environmental Assessment of U.S. LNG Exports. LNG Export Report Appendixes. LNG Export Report Summary. Statement: Sect. of Energy Jennifer M. Granholm on LNG Export Report.

Key Findings from Secretary Granholm’s Statement on LNG Export Report:

  • Already Approved Facilities Will Meet Demand For Decades: LNG gas export facilities already approved “will be more than sufficient to meet global demand for U.S. LNG for decades to come as U.S. LNG exports have already tripled over the past 5 years, will double again by 2030, & could double yet again under existing authorizations.”
  • Energy Consumers, Manufacturers Will Face Higher Energy Costs: “Unfettered exports of LNG would increase wholesale domestic natural gas prices by over 30%;” increases in electricity prices because natural gas dominates generation; [In PA it accounts for 59% of generation capacity. Read David Hess analysis here]; and increased costs for manufacturers that use natural gas as feedstock.
  • LNG Gas Export Facilities Burden Already Polluted Communities:  LNG facilities tend to be concentrated in communities that are being asked to shoulder the additional burden of pollution from increased natural gas production and liquefaction. This comes on top of existing environmental burdens from refining, petrochemical, and other industries already concentrated near these communities.
  • Climate Impact Merits Close, Rigorous Analysis: While some tout LNG as a means to reduce the use of coal overseas (and to date that has been the case with some importing countries), the study put forward today shows a world in which additional U.S. LNG exports displace more renewables than coal globally.

US DOE Releases LNG Gas Export Study: Facilities Already Approved Will Meet Global Demand For Decades – PA DailyBlogSpot by David Hess 12-18-24 – Unfettered Exports Would Increase Domestic Natural Gas Prices; Electricity Prices; Costs To Manufacturers

Other News Clips (from David Hess):

US LNG gas demand hits record high on last day of the year – by Curtis Williams – Reuters – December 31, 2024

 

PJM, Surging Electricity Demand & Gov. Shapiro’s FERC Complaint

Pennsylvania Governor Josh Shapiro Files Lawsuit Against PJM to Prevent Energy Price Hikes, Fight for Pennsylvania Consumers – December 30, 2024 – Shapiro Admin. appeals to energy regulators to stop PJM from raising costs by over $20 billion on 65 million customers, including 13 million Pennsylvanians. Shapiro works to fix PJM’s broken process for building more power generation to ensure reliable, affordable energy for PA.

Clean Power PA praises Gov. Shapiro’s lawsuit against regional grid operator PJM – Press Release – December 31, 2024

Sharon Pillar: Renewables reliable, economical – by Sharon Pillar founder and executive director of the Pennsylvania Solar Center, – Trib Live – Thursday, Jan. 2, 2025

Load Growth Fever, LNG, and the Risk of Higher Electric Rates – We Are Being Bulldozed Into Making Our Electric System More Dependent on Natural Gas – by Sean O’Leary, Ohio River Valley Institute – January 2, 2025 – Utilities and the independent system operators (ISOs) who run the nation’s power grid warn that, without huge expansions of generating capacity, particularly from natural gas, the system may not be able to meet rising demand for electricity. Responding to PJM’s load growth forecast with expanded natural gas generation will set the stage for potential double-digit hikes in the price of electricity. See full ORVI Research Brief Here.

PJM responds to PA Governor’s complaint over power market rules – By Reuters – December 31, 2024 – Grid operator PJM Interconnection responded to a complaint from PA Governor Josh Shapiro over power market rules, citing concerns about potential power shortages due to the fast-paced expansion of data centers. Shapiro had filed a complaint with the Federal Energy Regulatory Commission, arguing that the largest U.S. power grid operator needs to change its market rules to avoid a potential surge in electricity costs.

Shapiro’s Lawsuit on Electricity Prices Rings Hollow – On Dec. 31, 2024, PA Senate Majority Leader Joe Pittman (R-41) issued a response to Gov. Josh Shapiro’s complaint to “defend Pennsylvanians against unnecessary increases in their electricity bills.”

Lots of demand, too little grid: The state of the US power sector – By Jeff St. John – Canary Media – January 2, 2025 – An underbuilt power grid is preventing the US from meeting surging demand with new, clean energy. The charts below show why that’s the case. A December 2024 Grid Strategies Report found that load-growth forecasts from utilities across the country have jumped almost fivefold from 2022 to late 2024, to nearly 128 gigawatts, a pace that would force the country to increase its capacity to generate and deliver electricity by nearly 16% by 2029 – an unprecedented growth rate in the modern era.

Strategic Industries Surging: Driving US Power Demand – by John D. Wilson, Zach Zimmerman & Rob Gramlich – Grid Strategies – Dec. 2024 – Meeting rising demand for electricity has significant strategic importance for the U.S. Recent forecasts of cumulative electricity growth over the next five years increased by a factor of five, from 2.8% to 15.8%. This growth is driven by geopolitically and nationally strategic industries such as semiconductor chip manufacturing, artificial intelligence (AI), and battery manufacturing.

 

Nationwide Electricity Demand Forecasts (Grid Strategies)

 

Six Regions Driving Load Growth Through 2029 (Grid Strategies)

 

Pennsylvania asks FERC to lower PJM capacity price cap to prevent ‘runaway’ costs – by Ethan Howland Senior Reporter, Utility Dive –  Jan. 2, 2025 – The complaint at the Federal Energy Regulatory Commission adds to the turmoil surrounding PJM’s capacity market since its auction in July produced record high prices.

‘Take all appropriate actions’: NERC rings in 2025 with winter storm warning – by Robert Walton Senior Reporter – Utility Dive – January 3, 2025 – Arctic air is expected to hit the eastern half of the U.S. this weekend. Storms “could result in the lowest January temperatures in more than a decade in some places,” said meteorologists.

‘Explosive’ demand growth puts more than half of North America at risk of blackouts: NERC – by Robert Walton Senior Reporter, Utility Dive – December 18, 2024 – “Simply put, our infrastructure is not being built fast enough to keep up with the rising demand,” said John Moura, NERC’s director of reliability assessments and planning analysis.

 

NEW PA Reports, Announcements & Opinion Pieces 

PA Climate Change Advisory Committee Meeting – December 17, 2024

PPT Slides by PA DEP Energy Programs Office includes presentations/discussions of:

  • DEP’s Shared Energy Manager Program by Christopher Nafe
  • Presentation/Discussion – PA Home Energy Rebates

Clean Trucks Campaign touts benefits of electric vehicles for Pennsylvania

Mark Richardson, Producer – Public News Service – Thursday, December 19, 2024

Renewables can help stop winter power outages – by Matt Walker, Clean Air Council and Julia Kortrey, Evergreen Action  Opinion – PennLive – December 10, 2024 – see also at: Renewables Can Help Stop Winter, Summer Power Outages, Avoid Energy Price Spikes.

ARC ARISE grants could help Appalachia be more green – by David Radin – December 23, 2024 – NEXT Pittsburgh – So it may seem strange that one of the most important federal programs supporting green energy has its epicenter in Pittsburgh. The ARISE program by the Appalachian Regional Commission (ARC – pronounced A-R-C) aims to drive large-scale regional transformation using clean energy as a key component. ARC’s Appalachian Regional Initiative for Stronger Economies through Catalyst Connection is coordinating 200 ARC funded mini grants that are given to manufacturers to expand or enter into a clean energy supply chain or to reduce their own carbon footprint. Companies that are interested in becoming more environmentally friendly are among the targets of a total of $10 million of ARC ARISE mini grants over a four-year period.

As States Line Up to Battle Trump Over Climate, Pennsylvania Could Be on the Sidelines – By Audrey Carleton – December 18, 2024 – Capital & Main – Incoming Attorney General Dave Sunday didn’t mention climate change on the campaign trail, but fossil fuel donations tell a different story.

Physical Impacts of Grid-Scale Solar Development – by Penn State Extension – Nov. 25, 2024 – There’s an increasing likelihood that Pennsylvania will see a large investment in grid-scale solar development (GSSD) in the future. See also, How Local Ordinances Can Address Concerns About Physical Impacts Of Grid-Scale Solar Development  [PaEN]

The Trump admin could make PA’s clean energy projects less environmentally friendly by Kate Huangpu of Spotlight PA | Dec. 24, 2024 – As a new presidential administration prepares to take power, people involved in fledgling clean energy projects in Pennsylvania say they’re watching closely for policy changes that could hamstring their funding or make the initiatives less environmentally friendly.

Common Sense in the Commonwealth: How Shapiro Can Protect Pennsylvania – by Melissa Ostroff, Charlie Palladino – Dec. 18, 2024 – Earthworks Blog – With the incoming Trump administration planning rollbacks on climate progress, political leadership in heavy oil and gas-producing states like Pennsylvania must step up now more than ever.

Top climate stories of 2024: N. J. wildfires, fracking fact checks and an uncertain future for ‘green’ hydrogen energy – WHYY – December 21, 2024 by Susan Phillips – 2024 marked a year of climate solutions pushed by the federal government. But the future of President Joe Biden’s signature climate programs is uncertain.

Realizing Technology’s Full Potential to Improve Energy and Environmental Policymaking by John Quigley – December 18, 2024 – UPenn Kleinman Center – A new report for the Kleinman Center offers an introduction to the current revolutions in computing, remote sensing technologies, and data sciences, and how they are being applied to issues of sustainability.

Counterpoint: Trump’s big oil cronies poised to prop up fossil fuels – Robert Weissman – Trib Live – Saturday, Dec. 14, 2024

It’s do or die time for Philly hydrogen hub, and green groups are rallying against it – by: Kyle Bagenstose Inside Climate News – December 9, 2024 – PA Capital Star – The U.S. Dept of Energy is dangling $750 million for the buildout of a hydrogen hub around Philadelphia.

 

National News Clips & Reports on Climate & BIL/IRA Implementation

Advancing Economic Diversification in America’s Energy Communities: Energy Communities IWG Progress Report – Energy Communities – December 2024 – The Energy Communities IWG’s approach has been supported by more than $54 billion in federal investments in the form of grants, loans and tax incentives to be awarded to support energy communities. Since 2021, these federal investments have catalyzed approximately $315 billion in private sector investments in energy communities across the country.

Lawyers for Good Government’s Climate Change and Environmental Justice (CCEJ) new Brief on IRA Credits, Direct Pay, and the 2024 Elections – December 2024 – The results of the 2024 election have led to some uncertainty over the long-term availability of the clean energy tax credits and the use of Direct Pay for tax-exempt entities as implemented by the Inflation Reduction Act of 2022 (IRA). Lawyers for Good Government summarizes how the IRA credits are structured and what that means for potential changes to the IRA credits by an incoming administration.

6 charts that show how the grid is getting cleaner – By Julian Spector – December 24, 2024 – Canary Media – Clean energy hit key inflection points this year from California to Texas and the Midwest — and across the Atlantic in Great Britain, too. Wind and solar notched a major win this year, generating more electricity in the U.S. than the resource formerly known as King Coal.

Why I’m optimistic about cleantech over the next four years – By Guest Author Vic Shao founder of DC Grid – Canary Media – December 26, 2024 – Yes, there are headwinds, but falling prices, increased investment, and ongoing innovation signal that renewable energy is about to take off. I think we’re on the brink of a golden era for renewable energy and clean transportation deployments. In fact, I believe that the next four years will redefine our industry in ways we’ve only dreamed of. Here’s why.

Exxon Plans to Sell Electricity to Data Centers – by Rebecca F. Elliott – Dec. 11, 2024 – New York Times – The country’s largest oil company is designing a natural gas power plant outfitted with carbon capture technology to meet the voracious power demand of technology companies. Demand is rising so quickly in the U.S. that even Exxon Mobil, the country’s largest oil and gas company, is planning to get into the power business.

A strange new climate era is beginning to take hold By Shannon Osaka, Maxine Joselow & Sarah Kaplan – Wash. Post – Nov. 27, 2024 – The next 10 years will look very different for the story of climate change. For almost a decade, climate scientists and environmental leaders have coalesced around a rallying cry: “Keep 1.5 alive.” It’s a reference to the historic pact nations reached in Paris in 2015 to try to limit Earth’s warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) since the start of the Industrial Revolution.

Texas—yes, Texas—has the most clean energy jobs in the country – by Andrew Thompson – December 4, 2024 Fast Company – A Fast Company analysis finds that the state is at the top of the list in terms of green energy job openings. Are Red State policies to thank? Texas’s role as the capital of American petropolitics hasn’t stopped it from becoming a clean energy leader.

The New Climate Gold Rush: Scrubbing Carbon From the Sky – by David Gelles and Christopher Flavelle – December 22, 2024 – New York Times – As countries around the world continue to pump planet-warming pollution into the skies, driving global temperatures to record levels, the financial world is racing to fund the emerging field of carbon dioxide removal, seeking both an environmental miracle and a financial windfall.

Insurers Are Deserting Homeowners as Climate Shocks Worsen – By Christopher Flavelle & Mira Rojanasakul – The New York Times – December 18, 2024 – Without insurance, it’s impossible to get a mortgage; without a mortgage, most Americans can’t buy a home. Since 2018, more than 1.9 million home insurance contracts nationwide have been dropped or “nonrenewed,” in the parlance of the industry. In more than 200 counties, the nonrenewal rate has tripled or more.

New York aims to fine polluters up to $75 billion with new climate law – by Anna Phillips December 26, 2024 – Washington Post – The law would raise $75 billion over 25 years from major carbon polluters, requiring them to pay for climate damage caused by increasingly severe weather. New York became the second state to require fossil fuel companies to pay for climate damage, joining a growing effort to hold major polluters accountable for more frequent and costly extreme weather disasters. The idea behind the bills comes from the federal Superfund law, which forces polluting companies to clean up toxic waste sites. Environmentalists have pushed states to apply what is known as a “polluter pays” approach to worsening disasters fueled by climate change.

Exclusive: Trump transition team plans sweeping rollback of Biden EV, emissions policies– by Jarrett Renshaw and Chris Kirkham – Reuters – December 17, 2024

What will it take for the American steel industry to go ‘fossil-free’? – by Reid Frazier December 13, 2024 – Allegheny Front

As Teenagers, They Protested Trump’s Climate Policy. Now What? By Austyn Gaffney – Dec. 10, 2024 – New York Times – Some young climate activists who were galvanized under Donald Trump’s first presidency are taking a different approach to his second.

 

In Case You Missed It

Energy Efficiency Jobs in America 2024 Released – December 2024 — Nearly 2.3 million Americans work in the energy efficiency sector. This EE workforce shows strong and steady gains, post-pandemic. The new Energy Efficiency Jobs in America report provides granular specifics for these 2,290,179 jobs. Two of every 5 U.S. energy sector jobs is in energy efficiency in 2024. E4TheFuture partnered with the Building Performance Association to produce this year’s report. See Full Report Here. See PA Fact Sheet Here. The Building Performance Association’s web site breaks down PA’s 72,913 EE Jobs by location & State House & State Senate Districts.

DREAM TEAM: Rooftop Solar with an Electric Vehicle – by the Energy Age Blog – December 18, 2024 – As a follow-up to an earlier, IMPRESSIVE Rooftop Solar Energy Savings at Home and on the Road (which covered May through August 2024), let’s crunch the numbers for September-October-November 2024, on a ranch style home with 1,750 square feet of living space, and a Chevy Bolt EV in Western PA.

 

Update on Geothermal Technologies

Chart: Geothermal has vast potential to meet the world’s power needs – By Maria Gallucci – Canary Media – January 3, 2025 – Geothermal energy represents just a whisper of all the renewable electricity that’s generated globally every year. But thanks to next-generation technologies that could make it possible to harness earth’s heat in more places, geothermal has the potential to be bigger than any clean energy source other than solar, per a recent International Energy Agency analysis.

Was 2024 a breakout year for next-generation geothermal energy? By Maria Gallucci, December 20, 2024 – Canary Media – Geothermal startups hit funding and project milestones this year, buoyed by growing demand for carbon-free energy from data centers, factories, and EVs.

 

An illustration from DOE’s geothermal “liftoff” report shows how conventional (left) systems compare to two types of next-generation systems. (DOE)

 

Joe Cullen