BIL/IRA Implementation Digest — November 11, 2024

by Joe Cullen

Nov 11, 2024 | BIL/IRA Implementation Digest

Upcoming BIL/IRA Webinars

  • Tuesday, November 12, 2024 – 12:30PM – 4:30PM — PA DEP CITIZENS ADVISORY COUNCIL Meeting – Agenda Here. Click here to join the meeting – Three individuals are expected to present to the joint meeting on hydrogen hubs: Elliot Gold: Philadelphia Gas Works, Chris Antoni, AED Energy,  Max Schultz, Governor’s Office Director Of Energy Infrastructure Solutions.
  • Thursday, November 14, 2024 – 12:00PM – 5:00PM — Capacity Building for Energy Assets | Host: United States Department of Energy. Register Here – Join the U.S. Department of Energy’s Office of Fossil Energy and Carbon Management (FECM) and the Energy Communities IWG for a virtual workshop on reinvesting in energy assets.
  • November 19, 2024 @ 1:00PM – Inclusiv Credit Union Green Lending Grant Program ($1.87 billion federal award) – Register Here – Prequalification Launch Webinar – opens on Nov. 19, 2024 & full grant application will open in early 2025.
  • November 20, 2024 @ Noon – Inclusiv Credit Union Green Lending Grant Program Register Here – provides grants to credit unions to offer green lending programs that serve low-income and disadvantaged communities (LIDACs).

 

BIL/IRA Webinars Updates/Reports

PA DEP Climate Change Advisory Committee Meeting – October 22, 2024

 

Hydrogen Hub Notes

 

PJM Notes and Updates

Utility Dive: PJM plans to delay upcoming capacity auction by six months — The delay will give the PJM Interconnection time to craft potential market reforms sought by state utility regulators and others, the grid operator said.

Pennsylvania Solar Development Analysis – by Beret Walsh – Landscape – September 9, 2024 – On October 25, Gov. Josh Shapiro joined the governors of Delaware, Illinois, Maryland and New Jersey in calling on the PJM Interconnection to take “swift action” to change its electricity generation capacity auction rules to “prevent unnecessary increases in capacity costs” for their residents and businesses. See Letter Here – In July, we saw the staggering results of PJM’s capacity auction for the 2025/2026 Delivery Year, with clearing prices almost 10 times higher than the previous auction. These record- high prices are a serious concern. The resulting $14.7 billion bill will be paid by our residents and our businesses and could deter future economic development.

 

New BIL/IRA Program Tools/Resources

New State Climate Policy Dashboard – The State Climate Policy Dashboard is an interactive database on state-level climate policy progress in the U.S. Explore by state to learn about enacted policies and opportunities across all 50 states or by policy area for national landscape analyses and resources on 62 climate policies. Through September 5, 2024, $61 billion in climate funding has been awarded for more than 6,100 projects (excluding loans, direct government spending, and tax credits). The Dashboard estimates that the IRA has just over $33 billion (or 35 percent) in remaining funding. Read more here: What climate funding remains from the IRA? – See Pennsylvania Dashboard Here.

Renewables are on the rise — and so are new energy challenges – November 1, 2024 PennEnvironment Report – Renewable energy is more abundant in 2024 than many would have imagined. PennEnvironment Research and Policy Center released new data showing Pennsylvania ranks 48th in the nation for rate of growth in total solar, wind and geothermal generation over the past decade.

DOE Announces New Tools Making it Easier for Home Contractors to Install Energy Saving Appliances and Lower Costs:

  • The Tax Credit Product Lookup Tool can help determine if new heating, air-conditioning, or water-heating equipment may be eligible for the Energy Efficient Home Improvement Credit. Contractors—or even homeowners—can enter information about a particular product to determine if it meets tax credit eligibility criteria and receive a single page report that the homeowner can print or save for their records.
  • The home insulation explainer walks contractors and homeowners through the key elements of home insulation and air-sealing products that can lower utility bills and qualify for tax credits.
  • The new contractor training module provides detailed introductory information on how contractors can leverage residential energy efficiency incentives, including those available from federal, state, local, and utility-run programs. The 30-minute video is available for free on the Building Science Education Solution Center. The training is complementary to DOE’s Energy Skilled recognition program, which contractors can use to find training and certification programs that develop the skills and knowledge needed for clean energy jobs.
  • Other DOE tools: heat pump water heater and cold climate heat pump tools to guide contractors and homeowners through the decision-making process for selecting equipment. Homeowners can also go to the ENERGY STAR website.

DOE Loan Program Office (LPO) Publishes First Set of Community Benefits Plans
DOE’s LPO published Community Benefits Plans (CBPs) for several projects that have recently finalized financing from DOE to highlight the community engagement process and demonstrate how LPO’s investments deliver tangible benefits to communities across the country. Three featured projects are: CelLink, the Viejas Microgrid, and Holtec Palisades. In total, these projects will support over 400 construction jobs and over 2,800 operations and maintenance jobs.

 

NEW PA State & Local BIL/IRA Implementation Announcements

 

New Federal BIL/IRA Program Funding Announcements

Biden-Harris Administration Announces More Than $279 Million in New Housing Investments – October 2, 2024 – New awards will support climate resilience and energy efficiency renovations. The U.S. Department of Housing and Urban Development (HUD) today announced nearly $279 million in awards to properties across 23 states and territories under its Green and Resilient Retrofit Program (GRRP) to support significant energy efficiency and climate resilience renovations of more than 3,500 homes.

Coal-to-solar developer BrightNight lands $440M investment – By Maria Gallucci — October 8, 2024 – Canary Media – The funding from Goldman Sachs will help BrightNight to begin its 31-GW pipeline of renewables projects, including the Starfire solar farm in KTY.

DOE announced an investment of $1.5 billion in four transmission projects that will improve grid reliability and resilience, relieve costly transmission congestion, and open access to affordable energy to millions of Americans across the country. October 3, 2024 DOE’s Grid Deployment Office (GDO), selected projects for $1.4 Billion in funding under BIL for the Transmission Facilitation Program will enable nearly 1,000 miles of new transmission development and 7,100 MW of new capacity throughout Louisiana, Maine, Mississippi, New Mexico, Oklahoma, & Texas, creating nearly 9,000 good-paying jobs.

Biden admin awards $2B in new grid resilience grants – by Jeff St. John – October 18, 2024 – Canary Media – The third round of Bipartisan Infrastructure Law grants target the hurricane-ravaged Southeast U.S. as well as nationwide projects to bolster the grid.

DOE’s Office of Clean Energy Demonstrations (OCED) opened applications for up to $400 million to spur innovative, community-focused, clean energy solutions for rural and remote communities across the U.S. – October 4, 2024. The funding announced today is part of the Energy Improvements in Rural or Remote Areas (ERA) Program, which aims to fund community-driven projects that demonstrate clean energy systems, deliver measurable benefits to rural areas with fewer than 10,000 people.

$3 Billion to Strengthen Port Infrastructure, Create Good-Paying and Union Jobs, Bring Cleaner Air to Communities – Read the full announcement from the White House
Read the full EPA announcement. Scroll down here to see where the projects are being funded in CA FL IL IN MD MI NJ/NY, NJ/DE, OR, PA, SC, TX, GA, OH & VA.

US Treasury released final rules for the Advanced Manufacturing Production Credit (45X). The final rules will “accelerate the buildout of domestic critical mineral supply chains by allowing taxpayers to include materials costs and extraction costs in production costs for applicable critical minerals and electrode active materials, provided certain conditions are met.”

DOE announced nearly $473.6 million for 49 states to modernize the electric grid to reduce the impacts of extreme weather events while also ensuring the reliability of the power sector. The funding announced advances the Justice40 Initiative.

DOI announced more than $244 million from to address dangerous and polluting abandoned mine lands, create good-paying, family-sustaining jobs, and catalyze economic opportunity in coal communities across Pennsylvania. This is the largest annual state allocation under the Abandoned Mine Land (AML) program, a Justice40 covered program, and is funded from the once-in-a-generation investment of $11.3 billion in AML funding provided by the Bipartisan Infrastructure Law.

DOE announced $149.87 million for 67 energy conservation and clean energy projects at federal facilities across 28 U.S. states and territories and six international locations. The selected projects will advance the adoption of cleaner, more cost-effective technologies to reduce pollution, improve air quality, create good-paying jobs, and slash the federal government’s carbon footprint.

USDA announced a historic $1.5 billion for 92 partner-driven conservation projects through the Regional Conservation Partnership Program (RCPP), a partner-driven approach to conservation that funds solutions to natural resource challenges on agricultural land. Selected RCPP projects will help farmers, ranchers, and forest landowners adopt and expand voluntary, locally led conservation strategies to enhance natural resources while tackling the climate crisis. RCPP is a Justice40 covered program.

The U.S. Department of Health and Human Services (HHS), through the Administration for Children and Families (ACF), released nearly $3.7 billion in Low Income Home Energy Assistance Program (LIHEAP) funding to help households with their home energy costs. The funding will help ensure households across the country have the support they need to maintain safe and healthy indoor temperatures, especially as the winter season approaches. ACF also officially launched the LIHEAP eligibility tool, which allows households across the country to quickly identify if they might be eligible. LIHEAP is a Justice40 covered program.

DOE announced nearly $2 billion for 38 projects in 42 states that will protect the U.S. power grid against growing threats of extreme weather, lower costs for communities, and increase grid capacity to meet load growth stemming from an increase in manufacturing, data centers, and electrification.

 

Pennsylvania News Clips on BIL/IRA Implementation

The Inflation Reduction Act is Building a Cleaner, Stronger Future for All PA – By Joanna McClinton – op ed – November 5, 2024 – The Philadelphia Tribune

More Jobs, Lower Costs: Solar for Schools Grants Opening Soon – by Robert Routh, NRDC Policy Director, PA – October 17, 2024 – PA DCED guidelines are now available.

Maintaining a robust economy is also a public health issue – By Ken Zapinski, Pittsburgh Works Together, Trib Live op ed, Wednesday, Nov. 6, 2024

Biden-era solar program for lower-income homeowners could be ‘in jeopardy’ under a Trump administration – by Reid Frazier – Allegheny Front – October 18, 2024

Restarting Old Nuclear Reactors: Can It Be Done? By Thomas Beresnyak, Penn State Extension – November 7, 2024 – As the electricity demand grows, restarting old nuclear reactors to increase electricity production is gaining traction.

PA didn’t plan for the end of coal. This community is trying to find a way forward – by Rachel McDevitt – StateImpact-PA – October 17, 2024

Can energy-rich Pennsylvania chart a path toward decarbonization? By Julian Spector – October 15, 2024 – Canary Media – The pivotal swing state has run on coal, oil, and gas, but it’s seeking a new era of economic growth from low-carbon industry and cleantech manufacturing. For JM Steel, the imperative to decarbonize has given new urgency to the skills and products that Pittsburgh long excelled at.

Nobody is using $2.6B in Pa. tax credits. Gov. Josh Shapiro wants a rewrite to boost electricity production. – by Stephen Caruso and Kate Huangpu of Spotlight PA | Oct. 14, 2024 – Companies have yet to claim a single dollar from a $2.6 billion tax credit package Pennsylvania enacted in 2022 to encourage natural gas use, hydrogen production, milk processing, and more. Now, the Shapiro administration is floating a union-backed rewrite that would subsidize energy production and lower the bar to claim the credits. However, the legislature appears unlikely to take up such proposals before the end of the year.

Fracking in Pennsylvania hasn’t gone as well as some may think – By Susan Phillips – October 1, 2024 – StateImpact-PA – Twenty years after the state’s first shale gas well was drilled, jobs comprise less than 1% of the workforce, residents fear health impacts and environmental damage continues. With all the talk of fracking in Pennsylvania during this presidential race, it’s worth looking at what is at stake for workers, leaseholders and residents who live near oil and gas operations.

 

Featured Opinion Piece on Economic Development in PA

Donna Kohut | Transitioning Beyond Coal: Crafting economic pathways for Pennsylvania’s communities in energy transition – By Donna Kohut policy manager for Sustainable Economics at PennFuture – Tribune-Review – October 30, 2024

 

National News Clips on BIL/IRA Implementation

States work to cap methane leaks from abandoned wells – 10/24/2024 – PBS News Hour – Two major laws passed by Congress and signed by President Biden provide new money and new requirements for reducing potent methane emissions, including those coming from abandoned oil and gas wells. The federal government has started awarding some contracts for capping those wells, but the election could impact whether this work will continue. Science correspondent Miles O’Brien reports.

Michigan bets on EVs to revive its economy — and hopes jobs will follow — October 2, 2024  – By Julian Spector – Canary Media – The swing state’s Democratic leaders want to channel historic manufacturing prowess toward clean energy. Success will hinge on the November election.

Ohio Reaps Benefits From a Climate Law JD Vance Repeatedly Attacks –By Madeleine Ngo and Alan Rappeport – October 1, 2024 – New York Times – Former President Donald J. Trump has called for clawing back unspent funds included in the Inflation Reduction Act, President Biden’s landmark climate bill. That could have adverse impacts in Ohio.

Booming power demand is slowing climate progress for US utilities – by Jeff St. John — October 9, 2024 – Canary Media – Sierra Club analysis finds that U.S. utilities are planning a huge expansion of fossil gas-plants — a shift that’s incompatible with climate goals.

Supreme Court refuses to interfere in EPA litigation, for now – By Ilana Dutton – WESA/NPR – October 16, 2024

The Dirty Truth About Utility Climate Pledges – Utilities are trying to greenwash their dirty plans. October 2024 – Sierra Club – Dozens of utilities may have pledged to become “carbon neutral” by 2050, but research conducted by the Sierra Club in the Dirty Truth Report shows that those pledges are largely greenwashing.

Opinion | Why You Won’t Hear the Military Arguing About Climate Change – by Sherri Goodman and Leah Emanuel – Politico – October 10, 2024 – As hurricanes pummel the U.S., the military has become example of the steady progress that can occur when the U.S. government takes climate change seriously.

How is clean energy manufacturing playing out in swing states? – By Julian Spector – November 4, 2024 – Canary Media – New factories are already revitalizing parts of GA,  Michigan, and PA, but the benefits of this onshoring will take years to fully materialize.

The tax code change unleashing $25B in clean energy investment – by Jeff St. John — Canary Media – Oct. 28, 2024 – The IRA’s transferability provision is expanding opportunities to turn the value of clean energy tax credits into real-world projects.

See how the Inflation Reduction Act is affecting your community – By Niko Kommenda, Shannon Osaka & John Muyskens – Washington Post – October 28, 2024 – Two years after the Inflation Reduction Act, some areas of the country have won big. Others have lagged.

‘Renewable energy growth is truly a 50-state story now’: New report shows big jump in solar, wind, EVs – Kristi E. Swartz/Floodlight – Oct 23, 2024 – A coalition of environmental groups finds U.S. renewable energy development has tripled in the past decade

Five smart policies can turbocharge clean US manufacturing – by Jeffrey Rissman – Canary Media – August 25, 2024 – Federal investments have helped launch a clean manufacturing renaissance. Here are practical steps to take to ensure success.

 

Post Election Notes on BIL/IRA Program Implementation & Tax Credits

Democrats retain 1-seat majority control of the Pennsylvania House – by  MARK SCOLFORO AP – November 8, 2024

Yass-backed fund spent $4.4 million to flip vulnerable Dem districts in Pa. but came up empty – by: Peter Hall – Pennsylvania Capital-Star – November 10, 2024

Longtime environmental official on Pennsylvania election results: People will need to be ‘as tenacious as the industry’ – by Kara Holsopple November 8, 2024 (Interview with David Hess) – The Allegheny Front

What Pennsylvania voters say about the environment – By Kathy Knauer, Julie Grant, Reid Frazier and Kara Holsopple – November 8, 2024 – The Allegheny Front

The Climate and Justice Movement Is Stronger Than a Trump Presidency – The struggle continues, but we can defend progress together – Evergreen Action – November 7, 2024 – Three Steps We Can Take Now to Preserve Climate Progress

Six Climate and Environment Takeaways from the Election – Trump is coming back to power. Now what?  by Jason Mark, November 7, 2024 – Sierra Club

Pennsylvania state senators weigh in on possible changes under Trump administration – by Sheldon Ingram, WTAE, November 6, 2026

Bloomberg: From Oil To EVs, Here’s How Republican Victory Affects Energy, November 6, 2024 – PDF of Article

Trump win is ‘setback’ for climate protection, but clean energy advocates say progress will continue – by Rober Walton, Utility Dive – November 6, 2024 – Trump’s victory means a Republican will be selected to lead FERC, which will likely work to reign in transmission incentives, said Tyson Slocum, director of Public Citizen’s Energy Program.

What Trump’s reelection could mean for the IRA, offshore wind – By Diana DiGangi – Utility Dive – Nov. 6, 2024 – President-elect Trump has vowed to repeal the Inflation Reduction Act and stop offshore wind development, but clean energy advocates say his administration could benefit from both.

With Ready Orders and an Energy Czar, Trump Plots Pivot to Fossil Fuels – by Coral Davenport and Lisa Friedman – November 8, 2024 – New York Times – President-elect Donald J. Trump’s transition team for climate and the environment is considering relocating the E.P.A. out of Washington and other drastic changes. Some people on the transition team are discussing moving the E.P.A. headquarters and its 7,000 workers out of Washington, D.C., according to multiple people involved in the discussions.

What Trump’s Victory Means for Climate Change – by Coral Davenport and Lisa Friedman — November 6, 2024 – New York Times – President-elect Donald J. Trump promised to delete climate policy. He could face pushback from Republicans benefiting from a boom in clean energy. But Mr. Trump’s zeal to repeal the 2022 Inflation Reduction Act, the landmark climate law that is pouring more than $390 billion into electric vehicles, batteries and other clean energy technology, will quickly face a political test. Roughly 80 percent of the money spent so far has flowed to Republican congressional districts, where lawmakers and business leaders want to protect that investment and the jobs they bring.

Trump return likely to slow, not stop, US clean-energy boom – By Richard Valdmanis — November 6, 2024 – Reuters – A Biden-era law providing a decade of lucrative subsidies for new solar, wind and other clean-energy projects would be near-impossible to repeal, however, thanks to support from Republican states, while other levers available to the next president would only have marginal impact, analysts say. “I don’t think a Trump president can slow the transition,” said Ed Hirs, energy fellow at the University of Houston. “This is well under way.”

Trump victory rattles US energy policy – by Peter Behr, Brian Dabbs – E&E News/Politico – November 6, 2024 – The former president’s return to the White House boosts the oil industry and raises questions about the future of the Inflation Reduction Act. The consulting firm Wood Mackenzie predicted before the election that Trump would not find enough congressional votes to repeal the Inflation Reduction Act. However, if Trump ends up with GOP majorities in both chambers of Congress, the IRA tax incentives could be significantly pared back.

Experts: What does a Trump presidency mean for climate action? – by Molly Lempriere – November 7, 2024 – Carbon Brief

How Trump’s second term could derail the clean energy transition – By Jeff St. John, November 6, 2024 – The Inflation Reduction Act might not be completely repealed, but plenty of other climate policies could be undone.

How Trump’s election could affect the startup-friendly Inflation Reduction Act – by Tim De Chant, Techcrunch – But given support from moderate Republicans and the public popularity of certain provisions of the law, it’s unlikely that Trump will be able to eliminate the law entirely.

In new term, Trump set to go after measures that are doing the most to fight climate change – by Jennifer McDermott and Matthew Daly – AP – November 6, 2024

Trump’s victory promises to shake up U.S. energy and climate policy, analysts and activists say – By Michael Copley NPR/WESA – November 6, 2024

Analysts see ‘a real fear in the market’ as renewable energy stocks plummet on election results – By Emma Penrod – Utility Dive – Nov. 7, 2024 – Tariffs and other policy actions favored by Trump could drive renewable energy prices higher over the next four years, industry analysts say.

 

In Case You Missed It – Columbia Univ/Sabin Center Study on IRA

Columbia Law School Report – Implementing the Inflation Reduction Act: Progress to Date and Risks from a Changing Administration  – September 10, 2024 – Sabin Center – Columbia Law School – The IRA is the largest investment in climate change mitigation and adaptation in American history:

  • The IRA appropriates more than $142 billion to carry out activities designed to reduce greenhouse gas emissions and protect against the impacts of climate change. This includes up to $37 billion in appropriations for federal loans and loan guarantees, and nearly $105 billion allocated for grants, awards, and other direct spending by federal agencies.
  • The IRA created and expanded a number of tax credit programs designed to support a broad range of climate-related activities, including investments in clean and renewable energy, electric vehicles and vehicle charging infrastructure, and energy efficiency projects.
  • The total value of these tax credits is hard to evaluate since many of the IRA’s credits are not capped, but recent studies estimate that Americans may claim between $780 billion and $1.2 trillion in tax credits over the IRA’s 10-year life.

Trump vows to pull back climate law’s unspent dollars – By Kelsey Tamborrino, Politico, September 5, 2024 (Describes House Republican member letter on IRA).

August 6, 2024 Letter to Honorable Mike Johnson, Speaker U.S. House, from 18 Members of the House Republican Conference – House Republicans who’ve urged protecting the investments in their districts stemming from the law.

 

In Case You Missed It – PA Polling on Fracking

Pennsylvania Voters Don’t Think Fracking Is A Big Issue Despite Trump’s Focus On It — October 9, 2020 – WHYY – by Susan Phillips  – Pa. voters split on fracking but show widespread support for stronger regulations. Although bipartisan support for fracking remains high among public officials, PA voters continue to be divided and support increased regulation.

Pennsylvanians overwhelmingly support stricter regulations on fracking – Ohio River Valley Institute (ORVI) – Pennsylvania voters are broadly concerned about air and water pollution and support spending taxpayer dollars on renewable energy development, new polling finds. ORVI Poll Results Memo – ORVI Power Point Presentation

 

In Case You Missed It – Scranton to New York City Amtrak Funding  

Casey, Cartwright Secure Funding to Begin Construction on Scranton to New York Rail Line – Published: October 29, 2024 – Press Release – U.S. Senator Bob Casey (D-PA) and U.S. Representative Matt Cartwright (D-PA-8) announced $8,958,919 in federal funding to begin construction to bring back Amtrak passenger rail service between Scranton, PA and New York, NY. The funding comes from the Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant program, made possible by the Infrastructure Investment and Jobs Act (IIJA), which Casey and Cartwright fought to pass.

Bob Casey and Matt Cartwright revive Scranton’s rail service to New York City – By Sean Kitchen – October 29, 2024 – The Keystone – Sen Bob Casey (D-Pennsylvania), along with Congressman Matt Cartwright (D-Lackawanna), announced $8.9 million in funding to restore rail service between Scranton and New York City. After the passage of the Biden-Harris’ Bipartisan Infrastructure Law in 2021, Casey and Cartwright began pushing for the restoration of the rail line and they were able to deliver.

Planning the return of passenger rail service WNEP-TV ABC – October 30, 2024 — Federal and state lawmakers look to take another step forward in bringing AMTRAK to NEPA.

‘Not study money’: Scranton-NYC Amtrak project gets $9 million for construction work — by Kathryne Rubright, Pocono Record, October 30, 2024 – The effort to restore passenger rail between Scranton and New York City has received $9 million toward construction, officials announced Tuesday.

Funding secured to begin construction on Scranton to New York rail line – October 30, 2024, Times-Leader by Bill O’Boyle | Times Leader – Cartwright spoke at Tuesday’s announcement of a $9 million infusion of federal funding through the Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant program to begin construction for the Amtrak passenger rail service between Scranton and New York City.

$9M in federal funding for Scranton-NYC train infrastructure comes at critical political moment – By Roger DuPuis | WVIA News – October 30, 2024 – Scranton’s decades-long dream of renewed rail service to New York City will soon take a key step forward thanks to nearly $9 million in federal infrastructure funding.

Sen. Bob Casey secures nearly $9 million in funding to help restore Amtrak passenger rail service between Scranton and New York – Fox News – 43 – October 30, 2023: Casey is joined in the effort by U.S. Rep. Matt Cartwright, who helped secure the Consolidated Rail Infrastructure and Safety Improvements funding.

Casey, Cartwright announce $9M toward restoring passenger trains between Scranton and New York City – Scranton Times – By Jim Lockwood – October 30, 2024 — The funding comes from the Consolidated Rail Infrastructure and Safety Improvements grant program, which was made possible by the Infrastructure Investment and Jobs Act that Casey and Cartwright backed.

 

Joe Cullen