BIL/IRA Implementation Digest — July 15, 2024

Upcoming BIL/IRA Webinars

July 17, 2024 @ 2:00PM – New Project Finance Hub – Lawyers for Good Government (L4GG) & Atlas Public Policy are rolling out new tools and resources for financing clean energy projects & will provide tax, financial and legal guidance on clean energy projects:

  • L4GG Clean Energy Tax Navigator – a one-stop-shop to claim direct pay; and
  • Atlas Public Policy’s Project Finance Hub – a clearinghouse for tools and guidance to finance clean energy projects.

Register Here for Webinar on July 17, 2024 @ 2:00PM. One Page Summary is Here.

July 19, 2024 @ 12:00PM-5:00PM EDT – Reconnecting Communities Institute (RCI) – Grant Writing Clinics – Register here$600 Million Available for Projects that Reconnect Communities – (See RCI Clinic description below).

July 23, 2924 @ 1:00PM-5:00PM & July 24, 2024 @ 8:00AM–4:30PM – In Person Meetings (Washington DC) – The Empowering America’s Energy Communities: IWG Stakeholder Retreat aims to give energy community stakeholders the opportunity to participate in a dialogue addressing community challenges and to help shape the future of the working group’s efforts. Location: Convene Hamilton Square, 600 14th St. NW
Washington, D.C. 20005 – Register HereConference Agenda Here

July 30th from 2:00PM-3:00PM ET Explore the Community Infrastructure Center: Building Collaboration and Connectionsa virtual event to discuss an exciting new platform, the Community Infrastructure Center, where community project proposals can be linked with trusted providers to help find funding and expertise. Reimagine Appalachia, the Milken Institute, & the Appalachian Sustainable Finance Hub – Register Here.

July 31, 2024 @ 3:00PM-4:00PM – State Climate Policy Network National Call – Say What? Effectively Communicating Climate Facts and Policy in the U.S. – latest research on Americans’ views around climate change and policy, alongside best practices and lessons learned on communicating climate information – Register Here

 

BIL/IRA Newsclip of the Week

Biden Policies Offer Benefits, but Little Political Payoff, in Pennsylvania

By Jeanna Smialek and Alan Rappeport – July 16, 2024 – New York Times – As inflation worries dominate, the Biden administration is struggling to take credit for infrastructure and industrial policy in the battleground state.

On a blighted industrial corridor in a struggling section of Erie, Pa., a long-abandoned iron factory has been humming with activity for the first time in decades. Construction crews have been removing barrels of toxic waste, knocking down crumbling walls and salvaging rusted tin roofing as they prepare to convert the cavernous space into an events venue, advanced manufacturing hub and brewery.

The estimated $25 million project is the most ambitious undertaking the Erie County Redevelopment Authority has ever attempted. It was both kick-started and remains heavily funded by various pots of money coming from Biden administration programs.

Yet there is no obvious sign of President Biden’s influence on the project. Instead, the politician who has taken credit for the Ironworks Square development effort most clearly is Representative Mike Kelly, a Pennsylvania Republican who voted against the 2021 bipartisan infrastructure law that is helping to fund the renovation.

 

New Federal BIL/IRA Grant & Program Implementation Announcements

EPA, DOE Announce $850 Million to Reduce Methane Pollution from the Oil and Gas SectorJune 21, 2024 – Grant announcement constitutes a key part of broader technical and financial assistance to be provided by the Methane Emissions Reduction Program and builds on nearly 100 cross-government actions that are sharply reducing methane pollution in support of clean air, good jobs and climate action. Applications due August 26, 2024 – Available Here. These funds are available to mitigate methane emissions from marginal conventional wells (MCWs) and other oil and natural gas assets; accelerating the commercialization, scale-up and application of innovative methane emissions reduction technologies; and advancing the characterization and reduction of methane emissions through multi-scale, measurement-informed data collection and analysis.

DOE unveils $1.7 billion to boost EV production at U.S. auto factories by Maxine Joselow – July 11, 2024 – Washington Post – DOE funding benefits labor unions. $89 million will help Harley-Davidson retool its factory in York, Pa., for electric motorcycles.

DOE announced $1.7 billion in funding support for auto companies to convert 11 closed or at-risk auto units to manufacture electric vehicles and their related components. The announcement would benefit auto manufacturing and assembly facilities across eight states. The list of selected companies and facilities can be found here.

Treasury, IRS Release Final Rules to Ensure Good-Paying Clean Energy Jobs, Expand Clean Energy Workforce – June 18, 2024 – Rules provide clarity and certainty for prevailing wage and apprenticeship requirements in the IRA and ensure clean energy jobs are good paying jobs. The U.S. Treasury & the IRS released final rules on prevailing wage and registered apprenticeship (PWA) requirements. These final rules will help build a strong pipeline of highly skilled workers to support the growth of the clean energy economy and ensure these are good-paying jobs.  Announced investments in clean energy projects under the IRA since 2022 have created more than 270,000 jobs, and studies project that more than 1.5 additional jobs will be created because of the IRA over the next decade.

U.S. DOT’s Federal Transit Admin. (FTA) announced  $1.5 billion in funding on July 9, 2024 for 117 projects to improve public transportation in 47 states. Under BIL, FTA has awarded nearly $5 billion in three years to replace and modernize transit buses on America’s roadways, building new technology with American workers. U.S. factories will produce more than 4,600 of these new buses. See FY24 FTA Bus and Low- and No-Emission Grants. Note: Washington Co. Transportation Authority received $15 million.

Reconnecting Communities Pilot Program – July 3, 2024 – US DOT announced up to  $607 million is available for planning, capital construction, and technical assistance in the Reconnecting Communities Pilot (RCP) Program to fund locally-driven projects such as interstate caps, highway removals, complete streets, and Main Street revitalizations. More Info Here. Applications are due: Sept. 30, 2024. The Reconnecting Communities Institute (RCI) is providing technical assistance for potential grantees. Grant Writing Clinics:

 

Governors’ Letter on PJM Planning Process

Governors seek more say over grid planning process – Push comes as demands increase for reliable, cleaner electricity supplies – By: Josh Kurtz – June 27, 2024 – Maryland Matters – Gov. Moore, along with NJ Gov. Phil Murphy, PA Gov. Josh Shapiro and Illinois Gov. JB Pritzker, have written to PJM Interconnection, the grid operator for 13 states seeking a “robust” planning process, that includes the states, and stating that “close coordination” is necessary between PJM and the states to achieve “a collective vision.”

Copy of June 12, 2024 Letter to Mark Takahashi, Chair, PJM Board of Managers

 

New State MOU on BIL/IRA Implementation (PA Not Participating)

10 Northeast states agree to collaborate on interregional transmission development

by Robert Walton – Utility Dive – July 10, 2024. – Memorandum of Understanding NE States Collaborative on Transmission – (“Collaborative”) – The MOU sets a framework for planning “robust interregional transmission infrastructure” but specifies each state is responsible for its own costs. The states also said they plan to produce a strategic action plan for “promoting the development of interregional transmission projects for offshore wind.” The Grid Innovation Program is managed through DOE’s $10.5 billion Grid Resilience Partnerships program. Awards are capped at $250 million unless projects have a significant transmission investment, in which case they can receive up to $1 billion.

 

New BIL/IRA Implementation Reports

Federal Funding Programs for Clean Industrial Innovation: A Guide for States – June 24, 2024 – Clean Air Task Force – Excellent summary of BIL & IRA funding programs designed to accelerate industrial sector decarbonization. These include financial support for multiple industrial sectors and funding for programs to advance capacity building, pollution reduction projects & community engagement. (See Appendixes at pages 5 – 23).

Batteries and Rooftop Solar Can Lead to Huge Savings for the Entire Grid – A New Study Shows How—and How Much – By Dan Gearino – June 27, 2024 – Inside Clean Energy – How much money? A new paper from University of Texas at Austin researchers shows savings of about 40 percent – mostly by reducing demand for electricity and less need to add new wires and grid equipment. See Valuing distributed energy resources for non-wires alternatives in Electric Power Systems Research, September 2024.

Virtual Power Plants: Financing a Distributed Energy SystemYakov Feygin

July 16, 2024 – Center for Public EnterpriseVirtual power plants (VPPs) are a nascent technology that allows a power provider to optimize the operation of distributed energy resources (DERs) such as rooftop solar and small-scale battery storage in order to aggregate and operate them as a grid-scale energy source. This report shows how green banks, as mission-driven public lenders, can help finance VPPs using tools already present in the Inflation Reduction Act. Summary Here.

 

Comments and Updates on Gov. Shapiro’s 10 Year Plan

Pennfuture Unveils Policy Report for PA DCED – to redirect financial resources from fossil fuels towards decarbonization & economic diversificationJune 20, 2024

Pennfuture Report: ECONOMIC POLICY IS ENVIRONMENTAL POLICY – June 20, 2024

Pennsylvania’s economic focus must shift away from fossil fuels, environmental nonprofit says – A PennFuture report calls for reform in the state Department of Community and Economic Development – by Peter Hall – June 20, 2024 – PA Capital Star.

 

Clean Energy, Methane Gas, LNG Exports & Consumer Price Impacts

Report: Clean Energy Isn’t Driving Power Price SpikesJuly 9, 2024 – Energy Innovation

Don’t blame clean energy for rising electric billsA new report links rising U.S. power bills to fossil gas price spikes and utility incentives — not solar, wind, and batteries, as clean energy foes suggest. – by Jeff St. John – July 15, 2024 – Canary Media

The Impact of LNG Exports on U.S. Energy Bills and Inflation – May 2024 – Public Citizen

Status of U.S. LNG Export Permits & Associated Greenhouse Gas Emissions – Nov 2023

Webinar PPT Slides: Pennsylvania Utility Law Project 3/15/2024 “Exploring the Impact of LNG Exports on Pennsylvania Families” by Tyson Slocum, Energy Program Director at Public Citizen Inc. and Mark Wolfe, Executive Director at the Center for Energy Poverty and Climate. PPT Slides Here (Scroll down to the 5th item).

Federal court blocks Biden’s pause on approving gas export projects – by Maxine Joselow – July 1, 2024 – The Washington Post – A federal court on Monday blocked the Biden administration’s pause on approving new facilities that export liquefied natural gas, dealing another legal blow to the president’s ambitious climate agenda.

 

PA BIL/IRA and Related News Clips

Are Philadelphia farmers the key to making the city a cleaner and healthier place to live? by Lynette Hazelton – July 11, 2024 – Philadelphia Inquirer – Federal agency is pushing urban agriculture as a climate change and social issues solution – USDA received almost $20 billion through President Biden’s Inflation Reduction Act for conservation projects that mitigate the climate crisis, the single largest investment in climate and clean energy solutions in American history. Cosby called it a “once-in-a-generation opportunity.”

Pa. lawmakers begin debate on new renewable energy goals by Rachel McDevitt, June 27, 2024 – StateImpact Pennsylvania

Philly home repair program seen as climate resilience tool gets its first city funding – By Sophia Schmidt – June 17, 2024 – WHYY.  Built to Last, which staff say helps “future-proof” Philly homes, got $5 million in the budget City Council passed Thursday.

How Biden’s promise to coal country became a warning for Democrats – By Maxine Joselow – June 24, 2024 – Washington Post – A fading coal town in Pennsylvania is struggling to replace the jobs and money that the fossil fuel industry once offered. INDIANA COUNTY, Pa. — Biden administration officials came here this month with an upbeat message for residents: We will help you navigate the nation’s transition away from fossil fuels. During a roughly two-hour meeting in a stuffy conference room, officials assured the audience that the federal government hasn’t forgotten about this spot about an hour east of Pittsburgh, where coal mines began closing in the 1980s and the state’s largest coal-fired power plant shut down last year.

 

National & Regional BIL/IRA and Related News Clips

The US is about to get its first solar-covered canal – by Eric Wesoff – July 8, 2024 – Canary Media – Thousands of miles of canals stretch across the U.S. A pilot project on tribal land in Arizona shows the benefits of covering these waterways with solar panels.

Don’t think heat pumps are sexy? This slow jam could change your mind – July 15, 2024 – By Laura Klivans –  KQED – National Public Radio

Trump Says Clean Energy Is a Scam. That Could Benefit China, Experts Say – By Lisa Friedman, June 26, 2024 – New York Times – President Biden’s landmark climate law could be repealed in a Trump administration. Economists said that would jeopardize $488 billion in American investments.