On January 6th, the White House Council of Environmental Quality ("CEQ") released a new Guidance on Consideration of Greenhouse Gas Emissions and Climate Change ("the Guidance") in permitting decisions, with significant implications for energy and infrastructure projects. Though this Guidance is effective as of the date of publication, it was issued on an interim basis and CEQ will consider comments until March 10th, after which it could be revised further.
CEQ's recommendations will influence the Biden Administration's analysis of greenhouse gas ("GHG") emissions in environmental reviews under the National Environmental Policy Act ("NEPA"), applying immediately to all newly proposed actions as well as some on-going NEPA reviews. While the Guidance is largely framed as a series of recommendations rather than requirements, it highlights best practices for environmental reviews that could help expedite project completions, improve agency decision making, and minimize litigation risks for developers.万博体育app手机登录归根结底,CEQ正努力确保机构和项目开发商充分关注气候影响,不无端延迟机构决策,特别是考虑到加速清洁能源基础设施是Biden爱慕气候议程的一个关键部分。
指南力求加深理解温室气体影响和替代物取舍,从而提高对联邦温室气体分析质量的期望。 项目开发商希望与联邦监管商密切合作,确保NEPA机构审查的充足性。万博体育app手机登录失败可能为项目反对者提供诉讼路径 。
Below万博体育app手机登录Encouraging Consistency in Agency Analysis of GHGs
CEQ's Guidance builds upon an earlier 2016 policy document, and is the latest in a series of efforts aimed at enhancing certainty in agency GHG analysis.[1] This Obama-era 2016 guidance was revoked and replaced by the Trump Administration,[2] and then ultimately reinstated by the Biden Administration in early 2021.[3] In the interim, court decisions have required some kind of analysis of project climate impacts under NEPA, without articulating clear generally applicable guidelines as to what level of review would be sufficient, thus resulting in uncertainty.[4]
CEQ is encouraging more certainty in addressing GHG consequences, while acknowledging that any such analysis must be conducted in a measured, proportional, yet thorough manner.CEQ实现这一点的主要方式是建议机构量化并联系相关温室气体影响
A万博体育app手机登录Quantifying GHG Emissions and Reductions
CEQ recommends agencies first quantify all reasonably foreseeable GHG emissions and reductions of a proposed action, any reasonable alternatives, and a no action alternative. In doing so, CEQ recognizes the unique nature of the climate emissions challenge, where the effects arise from a wide range of emissions activities. It thus notes, "NEPA requires more than a statement that emissions from a proposed Federal action or its alternatives represent only a small fraction of global or domestic emissions."[5] In other words, an agency is not absolved from analyzing GHG emissions because no single agency action has the ability to mitigate climate change on its own. Instead, an agency must recognize that adequate reforms will occur incrementally, and therefore analyze the emissions impacts of significant federal actions that contribute to, or remediate, climate impacts.[6] To do so, CEQ directs agencies to use tools that are commonly deployed by the private sector and government to quantify emissions.[7]
Using these tools, emissions increases and reductions should be quantified individually by constituent greenhouse gases, as well as aggregated in terms of total carbon dioxide equivalency. Additionally, where feasible, agencies are encouraged to represent the proposed action's annual emissions or reductions, especially when those emissions might vary over the life of the project.[8]
CEQ further instructs that agencies evaluate direct, indirect, and cumulative emissions as part of their environmental review. Among other things, CEQ notes that quantifying direct and indirect emissions "is generally essential to reasoned decision making."[9] Cumulative emissions are critical to consider given the nature of the climate problem, where detrimental effects flow from the accumulation of historic GHGs. Consideration of cumulative effects can be accomplished by summarizing and citing to the relevant scientific literature, as well as monetizing and contextualizing emissions as noted in the following section.[10]
Analyzing direct, indirect, and cumulative emissions is likely to be one of the most challenging aspects of CEQ's guidance to implement, and similar recommendations have already been the source of some controversy. For instance, in February 2022, the Federal Energy Regulatory Commission (FERC) issued a policy statement stating that for gas pipeline approvals FERC would review "GHG emissions that are reasonably foreseeable" including those resulting from upstream impacts—such as those tied to construction and operation of the project—and downstream impacts—such as emissions resulting from the combustion of transported gas.[11] Barely a month later, FERC re-designated this policy statement as a draft and invited additional comments after it garnered significant industry and political criticism.
CEQ attempts to tamp down such controversy by making clear that any analysis of GHGs should be bounded by principles of proportionality. They caution against "an in-depth analysis of emissions regardless of the insignificance of the quantity of GHG emissions that the proposed action would cause."[12] For example, "the relative minor and short-term GHG emissions associated with construction of certain renewable energy projects, such as utility-scale solar and offshore wind, should not warrant a detailed analysis of lifetime GHG emissions."[13] In order to further enhance efficiency and avoid duplicative efforts, CEQ expects that agencies will rely on and incorporate scientific and technical information on impacts from other, more expert, agencies, as well as international organizations and academic literature.[14]
B.Monetize and Contextualize GHG Emissions
Agencies should contextualize GHGs associated with a project after quantifying them. This can include monetizing climate damages using the "best available estimates" of the social cost of GHG ("SC-GHG") and placing emissions in the context of relevant climate goals and commitments.
The best available SC-GHG figure is currently in flux. Two years ago, the Biden Administration reconstituted an Interagency Working Group (IWG) on the SC-GHG, which issued an interim estimate of the SC-GHG in the spring of 2021. As detailed in a prior blog post, that estimate has been the subject of litigation and the IWG has yet to issue a final SC-GHG. More recently, EPA issued a regulatory document in the fall of 2022, which previewed a much higher SC-GHG than contemplated in the IWG's interim estimate.[15]
CEQ nonetheless notes that "in most circumstances" agencies should use the SC-GHG to analyze a proposed action and its alternatives. In doing so, the SC-GHG will empower agencies to make clearer comparisons of the GHG impacts of each action.[16] Monetizing emissions is particularly useful if: (a) the NEPA review monetizes other costs and benefits from the proposed action!替代物在不同时间或温室气体排放类型上有差异and (c) the significance of the climate impacts are hard to assess or not readily apparent without monetization.[17] Any such SC-GHG should be global in nature and utilize a discount rate that accurately reflects the harms climate change inflicts on future generations.[18]
Despite encouraging the monetization of GHG impacts, CEQ clearly states that "NEPA does not require a cost-benefit analysis where all monetized benefits and costs are directly compared." Utilizing SC-GHG to estimate the societal cost of GHG emissions does not create a requirement to do so.[19] However, if an agency considers a formal cost-benefit analysis appropriate, it is not prohibited from including or appending this analysis to its NEPA documents.
For any actions "with relatively large GHG emissions or reductions" or that "perpetuate reliance on GHG-emitting energy sources"—such as fossil fuels—agencies should explain how the proposed action and its alternatives would meet or detract from broader climate goals and commitments, such as federal or state goals or international agreements.[20] For example, agencies could discuss how the actions align with the U.S.机构应考虑使用更多语法或无障碍方法描述温室气体排放量,其中一些例子可包括使用“familiar度量法,例如家用每年排放量、公路上一定数车或加仑燃烧汽油平均量值”。 CEQ is also using this Guidance to encourage agencies to take actions that lower GHG emissions by building such considerations into the process. This underlines CEQ's desire to align government decision making with the Biden Administration's net-zero ambitions. Embedded in this approach is the hope that a more complete consideration of GHG impacts will lead to more climate-positive decision-making, even though NEPA does not require agencies to opt for the most environmentally friendly alternative.[22] CEQ provides advice on how to consider reasonable alternatives and mitigation measures that might address short- and long-term climate change effects, with the aim of promoting emission mitigations.[23] CEQ notes that agencies should also acknowledge the impacts of climate change on the proposed action (not just the impact of the proposed action on the climate) and embed considerations of climate adaptation and resilience into the formulation of the proposed action and alternatives.[24] CEQ also recommends evaluating reasonable alternatives that have lower GHG emissions, including technically and economically feasible clean energy alternatives to proposed fossil-fuel projects.[25] CEQ notes how "[s]ome proposed actions, such as those increasing the supply of certain energy resources like oil, natural gas, or renewable energy generation, may result in changes to the resulting energy mix as energy resources substitute for one another on the domestic or global energy market." CEQ encourages agencies to conduct a "substitution analysis" to understand how any energy project proposals will affect the resulting energy mix and GHG emissions. When doing this analysis, agencies should not assume that if any project does not go forward it will be replaced by one that generates identical emissions, such that net emissions relative to a baseline are zero.[26] Instead, agencies should conduct modeling that "accurately account[s] for reasonable and available energy substitute resources, including renewable energy."[27] By encouraging the consideration of renewable energy alternatives to fossil fuel infrastructure early in the NEPA process, CEQ is pushing agencies to prioritize permitting cleaner forms of energy, consistent with the Administration's broader climate policy goals. CEQ鼓励前方社区参赛,重点是考虑环境公义对温室气体排放的影响万博体育app手机登录One of the most effective ways to accomplish this, according to CEQ, is to leverage early planning processes to integrate GHG emissions and climate change considerations into the identification of alternatives to the proposed action, as well as any reasonable mitigation efforts. CEQ recommends that agencies use the scoping process to identify potentially affected communities and provide early notice of opportunities for public engagement, which is especially important "for communities of color and low-income communities, including those who have suffered disproportionate public health or environmental harms and those who are at increased risk for climate change-related harms."[28] Community engagement should begin in the scoping process and should recognize any unique climate-related risks and concerns posed by the proposed action. For example, CEQ discusses how "chemical facilities located near the coastline could have increased risk of spills or leaks due to sea level rise or increased storm surges, putting local communities and environmental resources at greater risk."[29] In these types of scenarios, agencies should meaningfully engage with affected communities in designing the action and selecting alternatives, "including alternatives that can reduce disproportionate effects on such communities."[30] Such early project engagement, before the contours of a project are fully fixed, can assist in improving project outcomes and building greater community-level support for a project. We will continue monitoring developments pertinent to NEPA reviews of energy and infrastructure projects in the coming months, including CEQ's final guidance on GHG analysis expected in March, and other efforts by the Biden Administration and Congress to reform federal permitting processes. [1] CEQ, Final Guidance for Federal Departments and Agencies on Consideration of Greenhouse Gas Emissions and the Effects of Climate Change in National Environmental Policy Act Reviews, 81 FR 51866 (Aug.万博体育app手机登录2016年4月5日CEQ撤销2016年最终指南。CEQ撤销联邦各部门和机构在国家环境政策法评审中审议温室气体排放和气候变化影响最终指南,III.Up-Front社区参与环境公义
[7] Guidance at 1201-1202. CEQ keeps a list of these tools on their website. See CEQ, GHG Tools and Resources, https://ceq.doe.gov/guidance/ghg-tools-and-resources.html.
[8] Id. at 1201.
[9] Id. at 1205.
[10] Id. at 1206.
[11] FERC, Consideration of Greenhouse Gas Emissions in Natural Gas Infrastructure Project Reviews, Docket No.万博体育app手机登录PL21-3-000, February 18, 2022.
[12] Guidance at 1201.
[13] Id.
[14] For instance, CEQ notes that "agencies may summarize and incorporate by reference the relevant chapters of the most recent national climate assessments or reports from the USGCRP and the IPCC" and encourages them to "engage other agencies and stakeholders with knowledge of related actions to participate in the scoping process to identify relevant GHG and adaptation analyses from other actions or programmatic NEPA documents." Guidance at 1208, 1210.
[15] Specifically, the February 2021 IWG estimates places the social cost of carbon at $51/ton, while the EPA in the fall of 2022 estimated the social cost of carbon at $190/ton. This larger estimate was derived in part by using lower discount rates.万博体育app手机登录See Supplementary Material for the Regulatory Impact Analysis for the Supplemental Proposed Rulemaking, "Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review," EPA External Review Draft of Report on the Social Cost of Greenhouse Gases: Estimates Incorporating Recent Scientific Advances, EPA-HQ-OAR-2021-0317 (September 2022).
[16] Guidance at 1202.
[17] Id.
[18] CEQ further notes that in utilizing a SC-GHG, agencies should keep in mind that currently available estimates "may be conservative underestimates because various damage categories (like ocean acidification) are not currently included." Id. at 1203.
[19] Id. at 1211.
[20] Id.
[21] Id.
[22] CEQ itself recognizes that "[n]either NEPA, the CEQ Regulations, or this guidance require the decision maker to select the alternative with the lowest net GHG emissions or climate costs or the greatest net climate benefits." Id. at 1204.
[23] Id. at 1203.
[24] Id. at 1208-1209.
[25] Id.1205 id>#em>
The Greenhouse Gas Protocol ("GHG Protocol" or "Protocol")—a leading standard setter for measuring and managing corporate greenhouse gas emissions, borne of a partnership between World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD)—has opened stakeholder surveys concerning the revision of its Corporate Accounting and Reporting Standard, Guidance on Scope 2 Emissions, and the Scope 3 Standard and Scope 3 Calculation Guidance.
The GHG Protocol's standards and guidance are a foundational element of the Science Based Targets initiative (SBTi), which helps shape and verify corporate emissions reductions targets and ensure they are aligned with the goals of the 2015 Paris Agreement.协议是大企业首选碳核算机制:2016年92%以上Fortune500公司向CDP报告排放数据时,根据Hgorm协议会计标准这样做。万博体育app手机登录自2004年以来公司会计报告标准从未修订过,范围2排放指南-即自2010年代初首次发布以来与公司电热三维排放相关联的排放量从未修订过。
i2022年3月宣布利害关系方调查过程时,《温室气体议定书》宣布,“关键焦点将是通过重大披露举措确保与正在开发的核算规则相统一和一致..信息披露创举多多样,跨行业和司法权限,但关键共性在于依赖温室气体协议当前框架 。
,例如,美国证券交易委员会s/www.cov.com/en/news-and-inights/inights/2022/03/sec-proposes-landmark-climate-证交会在其提案中明确纳入并采纳了由《温室气体协议》开发的许多概念。
II万博体育app手机登录可再生能源证书作用2范围发布指南
A万博体育app手机登录RECs当前在2范围报告
Hrefss/default/files/Scope%2020Guidance_Final_Sept26.pdf>>当前2范围指导 (发布于2015年)为实体报告2范围排放量框架-即购买电耗、蒸气、热和冷却间接排放当前,实体可以通过定位法(基于实体地理区域平均产生能源排放量)或市场法(基于实体购买RECs的具体生成器排放物)报告CLE2排放量。
RECs是再生电源发布并出售给其他实体的工具,这些实体可能与直接购买电力合同捆绑或不可包绑万博体育app手机登录当前指南解释RECs销售传递可再生能源需求信号,这些信号驱动生产变化万博体育app手机登录RECs设计创建需求端市场信号,当前指南不要求实体证明RECs额外性也就是说,实体无需证明将排减纳入REC兆瓦本不会实现万博体育app手机登录数个其他报告机制,如英国绿楼理事会净零碳建框架,包含 这一额外性需求协议正考虑改变RECs
A部分修改中,协议似乎在重新评估是否和如何计算RECs协议2022年3月公告宣布由Anders Bjorn研究范围2,夏季Bjorn 二大建议 For each of these fifteen categories, the Guidance prescribes a time boundary to account for all emissions related to the entity's activities in the reporting year, even if those emissions occurred in a prior year or are expected to occur in a future year.万博体育app手机登录计算指南还就每一类别规定了一套专用计算排放法。万博体育app手机登录举例说,购买商品和服务产生的排放可用供应商专用法报告(有特定供应商提供的数据)、混合法报告(有某些供应商提供的数据和二级信息补缺)、平均数据法报告(有货物质量和平均排放因子数据)或开支法报告(有货物经济值和平均排放因子数据) C拟议的改变将显著效果报告2排放
Upstream Downstream emissions from purchased goods and services downstream transportation and distribution capital goods processing of sold products fuel- and energy-related activities (not included in scope 1 or scope 2) use of sold products upstream transportation and distribution end-of-life treatment of sold products waste generated in operations downstream leased assets business travel franchises employee commuting investments upstream leased assets IVsites/default/files/mocket-bases%20Survey%20Memo.pdf如上所述,基于市场的核算方法涉及使用合同工具或抵减信用量测量排放量性能,而《温室气体议定书》允许这些方法处理范围2排放问题。万博体育app手机登录然而,当前指南不包括基于市场报告直接(范围1)或供应链排放(范围3)的计算方法这份调查请求利害相关方反馈各种市场化计算方法-包括抵减信用额、嵌套信用额、供销棚/价值链干预、批量平衡认证和书籍填报证书-可能应用到范围1和3排放报告上。
V万博体育app手机登录公司应该从此难得机会生成碳规则
As noted in our COP27 recap, this year's climate summit in Sharm el-Sheik involved both the historic creation of a fund to compensate countries most impacted by climate change, as well as lost opportunities to adopt more ambitious and accelerated climate mitigation commitments. Perhaps hidden between these headlines, President Biden announced an initiative with significant implications for federal contractors.Under this proposal, the United States would become the first country to require major government suppliers and contractors to set science-based emissions reduction targets aligned with the Paris Agreement. It would also require contractors to disclose their greenhouse gas (GHG) emissions and climate risks.
This initiative—the proposed Federal Supplier Climate Risks and Resilience Rule—would have wide-reaching impacts if ultimately finalized. Collectively, the proposed rule would cover about 86 percent of the federal government's supply chain GHG impacts and 86 percent of federal annual spending. To put this in perspective, in the last fiscal year alone the United States purchased $630 billion in goods and services.
The comment period for the proposed Federal Supplier Climate Risks and Resilience Rule closes on January 13, 2023.大型承包商的拟议守法要求自发布最后规则两年后启动,如果发布,可按拜顿政府为联邦承包商规定的COVID-19疫苗任务向法庭质疑该规则
spanid表示'More-8294'/span>gsa.gov/policy-structions/federal-cap-control-far#:~text=%20Federal%20Actition%20最大联邦提供商-即接受5千万美元以上年度合同的majectors-a和(3)设置科学排减目标The first and second requirements would be fulfilled through an annual climate disclosure report. Contractors receiving between $7.5 million and $50 million in annual contracts would only be required to report Scope 1 and Scope 2 emissions, and all other federal contractors would be exempt from disclosures. The proposed rule does not discuss what enforcement mechanisms—if any—could be deployed against a contractor that fails to meet its emissions reduction target.Certain entities would be exempt from the proposal irrespective of the size of their annual contracts. For instance, tribally owned entities, higher education institutions, nonprofit research entities, state and local governments, and certain management and operating contracts figure to be exempt from the proposed emissions disclosures and science-based target requirements. Additionally, if a major contractor is considered a "small business" according to the North American Industry Classification System (NAICS) code in its System for Award Management (SAM) registration, or if it is a nonprofit organization, then it would not be required to complete an annual climate disclosure or to set science-based targets.
拟议规则将利用现有第三方标准和系统,包括与气候有关的财务披露建议工作队、CDP报告系统(原碳披露项目)和科学目标倡议标准下图概述(1)温室气体清单需求2) 年度气候披露报告和 3 基于科学目标需求.
清单将在连续12个月期间编目排放,结束时间不超过清单编全前12个月实体可使用环境保护局简化排量 万博体育app手机登录信息披露必须同TCFD建议保持一致,除范围1和2外,还必须包括CLE3排放清单。报告还必须描述实体的气候风险评估过程和通过该过程识别的任何风险。建议规则目前设想承包商通过完成CDP
As noted above, major contractors would be required to develop science-based targets. The Federal Register notice for the proposed rule defines a science-based target as "a target for reducing GHG emissions that is in line with reductions that the latest climate science deems necessary to meet the goals of the Paris Agreement to limit global warming to well below 2 °C above pre-industrial levels and pursue efforts to limit warming to 1.5 °C." According to the proposed rule, these targets must be validated by SBTi and be made publicly available. Though only applying to major contractors, it is estimated that these targets would address 64 percent of federal government spending and approximately 69 percent of supply chain GHG impacts.
II.Related Federal Sustainability Initiatives
The proposed rule fits within two larger Biden Administration initiatives. The first is the President's Federal Sustainability Plan, which we previously summarized in another blog entry. That plan sets a number of goals, including: 100% carbon-free electricity by 2030, and net-zero emissions in federal government procurements by 2050. To achieve the net-zero-emissions procurement goal, the government previously announced a "Buy Clean Task Force" to prioritize the procurement of low-carbon building materials, such as steel and concrete. The proposed Federal Supplier Climate Risks and Resilience Rule furthers net-zero procurement by requiring 85 percent of the emissions associated with the Federal supply chain to set net-zero targets and disclose their emissions.
The second initiative is a "comprehensive, government-wide strategy to measure, disclose, manage, and mitigate the systemic risks" of climate change. Within this bucket, the Biden Administration points to the Department of Labor's proposal to remove barriers to the consideration of climate risks and other environmental, social and governance factors by ERISA plan fiduciaries!证券交易委员会待定study climate-related risks to the financial system.
[1] Scope 1 emissions include GHG emissions from sources that are owned or controlled by the reporting company.
[2] Scope 2 emissions include GHG emissions associated with the generation of electricity, heating and cooling, or steam, when these are purchased or acquired for the reporting company's own consumption but occur at sources owned or controlled by another entity.
[3] Scope 3 emissions are a consequence of the operations of the reporting entity but occur at sources other than those owned or controlled by the entity.
In a series of prior blog posts, we previously highlighted the historic implications of the Inflation Reduction Act (IRA) for the U.S.'s international climate commitments, as well as for private companies navigating the energy transition. Shortly after our series published, the Senate passed the IRA on Sunday August 7th with only minor modifications to the bill's $369 billion in climate and clean energy spending. Today, the House passed the IRA without any further changes, and soon hereafter President Biden is expected to sign it into law.
However, this is only the beginning of the road!IRA四角将产生广度效果。 未来数月和数年中,我们期望看到对机构规则的强力操纵将决定IRA实施,并判定它作为能源策略的最终成功
As an initial matter, it seems Congress has not finished its work revamping the nation's climate and energy laws. As part of his agreement to support the IRA, Senator Joe Manchin (D-WV) announced that "President Biden, Leader Schumer and Speaker Pelosi have committed to advancing a suite of commonsense permitting reforms this fall that will ensure all energy infrastructure, from transmission to pipelines and export facilities, can be efficiently and responsibly built to deliver energy safely around the country and to our allies." While the exact contours of this legislation are not currently known, Senator Manchin's office recently released a legislative framework, which includes proposals to, among other things:
- tighten environmental reviews under the National Environmental Policy Act (NEPA);
- clarify the permitting and regulatory authorities of the Department of Energy and the Federal Energy Regulatory Commission;
- reform Clean Water Act provisions that allow state and local governments to impose additional requirements on federal permits!and
- create a list of strategically important energy projects, that the President can designate and periodically update, for streamlined permitting reviews.
According to Senator Manchin's office, permitting reform will receive a vote before the end of the fiscal year on September 30, 2022. Unlike the Inflation Reduction Act, which passed through arcane rules of reconciliation—and thus required only a simple majority—permitting reform will be subject to the Senate filibuster and require the support of at least 60 senators (and bipartisan agreement) to become law. At the moment, it is unclear whether broad bipartisan support exists for this measure!some Republicans have publicly signaled skepticism, and environmental activists have long opposed expedited fossil fuel permitting.However, in the past Republican Senators have expressed an interest in speeding the nation's permitting system. During this Congress, a bipartisan group of Senators introduced a law to accelerate infrastructure permitting, and all Republicans and Senator Manchin supported a resolution to disapprove of recent revisions to NEPA. Together, these actions suggest there may be some interest within the Republican caucus in implementing meaningful changes to current law, partisan divisions notwithstanding.
II.万博体育app手机登录减通货膨胀法关键赋值指南 外加,IRA本身有几部分未来数月将通过行政引导和规则制定过程予以澄清和实施守法标准支付工资、学徒和家用内容要求并计算温室气体排放法新税抵免 。
ahrfss/www.insideEnergyandense.com/2022/07/enger-support-for-电机-车-车-车-门-电-电-电-电-电-电-电-电-电-电-电-电-电-电-电-电-电-电-电-电链/>这些规定并不适用于商业电车信用分量 。 具体地说,法律要求电电池组件的一定比例为“制造或组装北美 ”, 并适用百分比逐年变化 。 法律还要求电池中关键矿产品中一定比例为“提取或处理 ”, 在美国或与美国相邻的任何国家中实现“提取或处理 ” 。IRA § 13401(e).鉴于电车供应链的现状,预计许多汽车制造商难以满足这些外包需求万博体育app手机登录
However, key features of these clean vehicle credits have yet to take shape. By the end of this year, the IRA requires the Treasury Department to issue regulatory guidance to help shape and administer the battery and mineral sourcing requirements. Id. Among the questions open for interpretation are acceptable methods for calculating the "percentage of the value" for critical mineral and battery components, as well as better defining the terms "manufacture or assembly" and "extraction or processing." How Treasury addresses these points will have significant ramifications for the short- and medium- term value of the clean vehicle credits.
A much broader set of IRA tax credits seek to promote investment in, and use of, clean electricity, but their value depends on the interpretation of key labor and domestic content requirements. As currently structured, the IRA extends and modifies the Investment Tax Credit and Production Tax Credits that apply to certain renewable sources of power through the end of 2024. Id. §§ 13101, 13102. Beginning in 2025, similar projects will also be eligible for a new technology-neutral Clean Electricity Production Credit and a Clean Electricity Investment Credit, which apply to any domestically produced electricity source with a greenhouse gas emissions rate of zero. Id. §§ 13701, 13702. These credits, and others throughout the IRA, are keyed to the satisfaction of prevailing wage and apprenticeship requirements.
Specifically, if these wage and apprenticeship requirements are not satisfied the credits are worth five times less than they otherwise would be. Additionally, the IRA creates a 10% "domestic content bonus" when facilities certify that certain percentages of steel, iron, and other manufactured products used in the facility are made in America, and further increases the value of the credit for projects located in "energy communities," i.e.棕田网站或经济困境前化石燃料生产网站解释应用将极大影响政府可用支持值。 未来清洁能源项目必须注意确保适当文档并遵守这些条款Finally, many IRA tax credits are pegged to a demonstration of the life-cycle emissions of the underlying facility or fuel. For instance, the value of the clean hydrogen credit varies based on the project's "lifecycle greenhouse gas emissions rate." On the high end, a 100% credit value is awarded to projects with a lifecycle emissions rate of less than .45 kilograms (kgs) of carbon dioxide equivalent (CO2e), but on the low end, projects only receive 20% of the credit value if their emissions rate is between 4 and 2.5 kgs of CO2e. Id. § 13204. Additionally, the availability of the new credit for sustainable aviation fuels depends on a certification that the applicable fuels achieve at least a 50% life cycle greenhouse gas reduction percentage compared to petroleum-based jet fuel!燃料项目再为生命周期温室气体排放量增量百分比增量增益Id.
The full implications of the IRA are yet to be understood. The law is likely to have significant implications for our energy future, leading to sharp growth in the nation's clean energy production and a decline in national greenhouse gas emissions. Though we have laid out some initial consequences, there are undoubtedly many more interpretive questions that will arise in the coming weeks, months, and years. Additionally, by subsidizing and lowering the costs of clean electricity and other low-emissions technology, the IRA could improve the benefit-cost analysis for a variety of environmental regulations, leading to more stringent and durable rules. Further, by bolstering the domestic energy industry, the IRA could alter the political economy of climate policy, creating a broader base of support for future government investments in clean energy production or greenhouse gas curtailment. Regardless of how this future unfolds, it will surely be a dynamic time for energy and environmental law and policy.
In addition to the extension of the solar investment tax credit, the IRA renews the previously expired production tax credit for solar energy and extends the credit to include qualifying facilities that begin construction before January 1, 2025. IRA § 13101. Taxpayers would also be eligible for a bonus 10% production tax credit if certain "domestic content requirements" are met or if the project is located in an "energy community." [1] The production tax credit is calculated by multiplying the amount of kilowatt-hours product by 0.3 cents or, if certain wage and apprenticeship requirements are met, 1.5 cents. Id.
Another key provision is an extension of the energy investment tax credit to include qualifying facilities that begin construction before January 1, 2025, with tax credits for geothermal energy being extended to 2035.13102. 类似于生产税抵免,纳税人有资格额外获得10%投资税抵免,如果满足某些“家庭内容”要求或项目位于“能源社区”。投资税抵免计算法是将设施投入服务成本乘以6%或如果满足某些工资和学徒需求则乘以30%。 Id. IRA包括扩展和修改45Q固碳ARA 1344. 碳捕获45Q信用额定为每公吨合格氧化碳17美元,或如果满足某些工资和学徒需求,则定值85美元。 Id. 45Q信用额也扩展至包括直接航空捕获量,并定值每公吨合格氧化碳36美元,或如果满足某些工资和学徒需求,定值180美元。 Id. IRA还包含高级能源项目信用额扩展至100亿美元,其中40亿美元预留用于 " 能源社区 " 。除其他外,该信用扩展包括水电设施、能源存储系统、重力电机和燃料电池及其相关收费基础设施、关键矿处理、精炼或回收以及用碳捕获存储设备对能源设施进行改换。 Id. em>Id. 它还将包括一个新的净化氢生产税抵免,可达60美分/千克合格净化氢,或,如果满足某些工资和学徒需求,可达3.00美分/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒/秒
For three of these tax credits, the IRA makes a "direct pay" option available to any taxpayer claiming the clean hydrogen credit, the carbon capture credit, or the advance manufacturing production tax credit. IRA § 13801. Direct pay allows taxpayers to receive a refundable tax credit even if they don't otherwise have any tax liability to absorb the credit (e.g., the taxpayer is operating at a loss). In this way, the credit is particularly beneficial for early-stage companies. With respect to clean hydrogen and carbon capture facilities, the "direct pay" option is only available in the taxable year in which the facility is placed into service, and the four years following that. Apart from these three tax credits, the "direct pay" option is also available for a longer list of other energy-related credits, but only if the organization claiming them is a tax-exempt organization, state or local government, tribal government, or the Tennessee Valley Authority. Id.
The IRA includes a provision that allows taxpayers to transfer certain enumerated clean-energy credits to unrelated taxpayers.[2] IRA § 6418(a). Consideration paid for a transferrable credit must be paid in cash, and is not includable in the income of the transferor, nor deductible by the transferee. Id. § (b). Excessive transferability payments could result in an addition to tax of the transferee equal to the sum of the excessive payment amount plus a penalty of 20% of the excessive payment amount. Id. § (g)(2). This provision is particularly beneficial for taxpayers with low tax liability that cannot otherwise take advantage of the direct pay option for credits other than the three enumerated above, and instead have to turn to the tax equity markets to facilitate use of the credits.IRA创建或扩展多项附加税收抵免,包括:(1)清洁电生产抵免,§13701清洁电投资信用第13702条3)与低收入社区连通的太阳能和风能信用第13103节+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++有大量就业领域提取、处理、运输或存储化石燃料自2000年起关闭煤矿自2009年起煤厂停产或停产的普查段
One of the Inflation Reduction Act's (IRA) notable features is the creation of a Greenhouse Gas Reduction Fund (GGRF). This fund could create a mechanism to quickly disburse up to $27 billion to clean energy technologies, without undergoing the sometimes laborious reviews required by the National Environmental Policy Act (NEPA). IRA § 60103.
The GGRF would allow the EPA Administrator to disburse $20 billion to "eligible recipients," which are defined as non-profit green banks that "provide capital, including by leveraging private capital, and other forms of financial assistance for the rapid deployment of low- and zero-emission products, technologies, and services." Id. Among these $20 billion, $8 billion would be dedicated to providing financial and technical assistance in low-income and disadvantaged communities. Id. Additionally, this provision of the IRA allocates $7 billion for the EPA Administrator to provide to either states, municipalities, tribal governments, or "eligible recipients." Id.
Because the IRA does not establish a minimum or maximum number of grant recipients—it only mandates that the Administrator make the grants "on a competitive basis"—it is conceivable that all the funds could be disbursed to a single National Green Bank. This potential model bears several similarities to the $27 billion Clean Energy and Sustainability Accelerator the White House previously announced as part of the American Jobs Plan (AJP), which we have previously covered. Indeed, the GGRF has been lauded by members of Congress who previously proposed the creation of a National Climate Bank or Clean Energy Accelerator as part of the AJP,[1] who have noted that the GGRF could be used to launch a National Green Bank.[2]
A central bank is only one option. The Administrator could also fund several regional banks, or provide additional capital to pre-existing green banks in states like Connecticut and New York.[3]
Whether central or regional, proponents of the green bank model are optimistic about the model's ability to increase the pace and scale of investment. For this reason, proponents of the green bank model sometimes refer to the model as an "accelerator" given the ability for these funds, through focused investments, to "accelerate" investment in certain clean energy technologies. Those champions believe that an investment in a National Green Bank (or several regional green banks) will catalyze additional private spending, and result in a larger proportional increase in the development and deployment of clean energy technologies. Accordingly, if the initial investments and grants are successful, the green banks may be self-perpetuating and not require additional appropriations from Congress.
Finally, there is some optimism that this green bank model could result in streamlined funding for certain projects. Because the EPA administrator would be providing funding directly to the green bank(s)—not to the qualifying emissions-reduction projects—there is no federal government involvement in the administration of loans, grants, or other financial assistance for these projects. While the initial decision by the administrator to provide financing to a green bank or state, local, or tribal government might itself be subject to some sort of judicial or environmental review, the subsequent disbursement of funds from the green bank would not be a "federal action." Without "federal action," NEPA's environmental analysis requirement may be inapplicable, accelerating the timeline by which capital could be transferred to certain clean energy projects. While it is debatable how much NEPA currently slows down environmental permitting, streamlining the permitting process for energy projects is a priority for certain key members of Congress. Notably, in Senate Majority Leader Chuck Schumer (D-NY) and Senator Joe Manchin's (D-WV) joint statement announcing the IRA, the senators explained that they have an agreement with President Biden and Speaker of the House Nancy Pelosi (D-CA) to "pass comprehensive permitting reform legislation before the end of this fiscal year." This emphasis on speed echoes and underscores the IRA's commitment to rapid decarbonization.
[2] The statement of Senator Chris Van Hollen (D-MD), one of a the GGRF's key proponents, seems to imply that the law is meant to create a National Green Bank.
[3] Senator Van Hollen has previously referred to the success of state-level green banks when discussing his proposed Clean Energy And Sustainability Accelerator.
通缩法(IRA)将大步限制并减少甲烷污染甲烷证明是气候问题的重要部分ips/unep.org/news-andssories/story/are-raistriew-climate-heres-show-redues-thes#:~Text=me%20is%20By implementing a Methane Emissions Reduction Program, the IRA takes a significant step towards reducing methane-related warming. This program implements a carrot-and-stick regulatory regime, whereby the Environmental Protection Agency (EPA) rewards methane reduction efforts with financial assistance, and penalizes excess methane waste with a set fee.
The IRA is the latest in a series of efforts by the United States to reduce methane emissions from the petroleum and natural gas sectors. Since taking office, the Biden Administration has recognized the challenges posed by methane emissions and prioritized cutting their emissions. In advance of the 2021 UN Climate Change Conference in Glasgow (COP 26), the United States and the European Union jointly launched the Global Methane Pledge, which asked countries to band together and commit to a collective goal of reducing global methane emissions at least 30% from 2020 levels by 2030. As of this summer, the State Department has announced that 120 countries have joined the pledge. In November of 2021, the Biden Administration further announced a series of regulatory actions to tackle methane emissions, from the oil and gas sector, landfills, abandoned coal mines, and agriculture.
The Methane Emissions Reduction Program complements each of these efforts and is the next significant step in the country's attempt to tackle methane-related warming. It would reduce methane emissions through two key mechanisms. IRA § 60113.First, it would provide $1.5 billion for EPA to support emissions monitoring and methane reduction efforts in petroleum and natural gas systems, through grants, rebates, contracts, loans and other forms of financial support. Id. These funds are directed at permanently shutting in and plugging wells on non-federal lands, to improving and deploying equipment that reduces methane emissions, and to supporting innovation in reducing methane emissions. Id.
Second, these incentives are coupled with a methane waste emissions fee applied to petroleum and natural gas systems emitting more than 25,000 metric tons of carbon dioxide equivalent gas. The fee will be calculated by multiplying the metric tons of methane emissions exceeding waste emissions thresholds by: (a) $900 for emissions in 2024!2025年排放1200元and (c) $1,500 for emissions in 2026 and each year thereafter. Id. Fees will only be imposed on emissions above a certain waste emissions threshold, which vary by industry segment and represent the leakage rate from well-designed and maintained systems in that segment, in turn providing an incentive for oil and gas systems to reduce methane leakage.
The Methane Emissions Reduction Program further promotes EPA's regulatory authority under the Clean Air Act, by exempting from the payment requirement any facilities that are in compliance with methane emissions requirements established for new and existing sources, so long as standards and plans have been approved and are in effect in all States and compliance with the requirements imposed by those standards and plans will result in equivalent or greater emissions reductions than can be achieved by EPA's November 2021 proposed rule to reduce methane in the oil and natural gas industry. This is a powerful floor!EPAss/www.epa.gov/system/files/documents/2021-11/2021-oil-and-gas-subject.-overview-fact-she..大于2019年全美释放的二氧化碳量passenger cars and commercial aircraft combined." By imposing a tax on emitters that are lagging behind and providing an exemption once all States are enforcing requirements that would achieve equivalent or greater reductions, the IRA's Methane Emissions Reduction Program creates strong incentives for both States and industry to adopt and comply with strong methane emissions standards.
As noted in another blog post, the Rhodium Group has estimated the IRA, if enacted, would cut domestic greenhouse emissions 44% from 2005 levels. In an earlier study of the emissions reductions associated with a prior iteration of the IRA, Rhodium described the methane emissions fee as one of six "big-ticket items that stand out" for its impact on reducing emissions. That the Methane Emissions Reduction Program is just one of many, game-changing provisions in the IRA underscores the potential impact of this bill for the energy sector and for achieving our nation's climate objectives.
Most notably for consumers, the IRA provides clean vehicle tax credits of up to $7,500 for new vehicles, IRA § 13401, and up to $4,000 for used vehicles, § 13402. It also eliminates a 200,000 vehicles per manufacturer cap, that was barring some companies—such as Tesla, Toyota, and General Motors—from benefiting fully from electric-vehicle tax incentives. Id. § 13401.
High-income earners are barred from claiming both credits. For the new vehicles, the credit is limited to couples making less than $300,000, and individuals earning less than $150,000. For used vehicles, the limits are $150,000 for couples and $75,000 for individuals. The clean vehicle credit is limited by the actual retail price of the vehicle: it cannot be used to purchase vans, SUVs, or pick-up trucks retailing above $80,000 or any other vehicles retailing above $55,000.
The IRA also takes many steps to secure the American electric vehicle supply chain, and puts stringent eligibility limits based on where battery components are manufactured or the underlying critical minerals are processed or mined. For instance, the Clean Vehicle Credits can only be redeemed when the new vehicles meet certain critical mineral requirements. A percentage of the value of the critical minerals in the battery must be extracted or processed in countries with which the U.S.has either (1) a free trade agreement in effect, or (2) recycled in North America. In 2023, this percentage starts at 40% and rises 10% each year until 2027 at which point the percentage will remain steady at 80%. The IRA imposes similar requirements on battery components, allowing the Clean Vehicle Credit to be redeemed only when the percentage of the battery value of the components manufactured or assembled in North America meets a certain percentage, which starts at 50% in 2023, and increases 10% each year until reaching 100% in 2029. The IRA also bars any application of the Clean Vehicle Credit to cars with battery components or critical minerals sourced from a "foreign entity of concern," starting in 2024 and 2025 respectively. [1]
These restrictions are likely to prove problematic for critical minerals produced in China, and Sen.manchin < ahrfss/www.manchin.senate.gov/newsroom/press-releases/manchin-supports-万博体育app手机登录决策人劝阻公司在中国进一步投资并鼓励家庭生产。例如,上年末下院以压倒性
Recognizing the potential supply constraints caused by the battery and mineral sourcing limitations, the IRA also implements a variety of measures to promote domestic manufacturing of electric vehicles and battery supply chains. For instance, the Advanced Energy Project Credit, which provides investment tax credits for projects that equip or expand manufacturing facilities producing specified renewable energy equipment, is revised and expanded to encompass electric and hybrid vehicles production. IRA § 13501. The base credit is 6%, but an increase 30% rate is available if prevailing wage and apprenticeship requirements are met. Id. Additionally, the IRA makes a $1 billion investment in clean heavy-duty vehicles, IRA § 60101, provides $2 billion in grants to retool existing auto manufacturing facilities to manufacture clean vehicles, § 50143, and expands the Department of Energy's lending authorities under the Advanced Technology Vehicle Manufacturing ("ATVM") program, § 50142. In the past, the ATVM loan program has successfully catalyzed domestic electric vehicle production, most famously by supporting Tesla with a $465 million loan in January 2010. Finally, the IRA takes steps to decarbonize the federal government's own fleet of vehicles, providing up to $3 billion to electrify Postal Service delivery trucks. IRA § 70002.
If enacted, these measures are sure to reshape and define the electric vehicle landscape.
[1] Foreign Entity of Concern, is defined by reference to the Bipartisan Infrastructure Law, 42 U.S.C.§1871和手段:外国实体国务大臣根据标题8第1189(a)节指定为外国恐怖主义组织列入财政部外国资产控制局维护的专用国民和阻塞者清单(通称SDN链表)受覆盖国外国政府拥有、控制或受管辖或指令约束(按标题10第2533cd节定义)D) 被总检察长指称参与活动,并依据-i第18章第37章(通称Espionage法)定罪951或1030标题18标题18第90章(通称1996年经济渗透法)武器出口管制法(22 U.S.C.2751等)1954年原子能法第224、225、226、227或236节2274 2275 2276 2277 和222842018年出口管制改革法(50 U.S.C.4801等)或国际紧急经济权法1701等)或(E)由秘书经与国防部长和国家情报局局长协商判定从事有损美国国家安全或外交政策的未经授权行为
A recent analysis by the Rhodium Group largely confirms the claims of Senators Manchin and Schumer, noting that the law "can cut US net greenhouse gas emissions down to 31% to 44% below 2005 levels in 2030 compared to 24% to 35% under current policy." If these projections hold, the IRA would constitute a sizable down payment towards meeting the United States nationally determined contributions ("NDCs") under the Paris Agreement, pushing the country much closer to meeting President Biden's goal of cutting greenhouse gas emissions 50-52 percent from 2005 levels by 2030.
International Energy Agency found that global carbon dioxide emissions hit their highest level in record history as coal use-increased during economic recoveries from the Covid-19 pandemic. And, in 2022, with the Russian invasion of Ukraine, Europe is increasingly turning to coal to counter natural gas shortages caused by the war. With this backdrop, the U.S.最高法院六月底宣布一项决定限制美国可用工具环境保护局监管电厂产生的温室气体,这反过来又质疑其他减少碳排放监管选项的可行性Virginia v.env'tprot代理 ,142SCt.2587 (2022). 在这种环境里,IRA通过允许大量减少国内温室气体排放而成为值得注意的抗衡量。 a hrefss/www.democrats.senate.gov/imo/doc/summary_ofthe_evene_security_金融援助形式包括贷款、税收抵免和赠款,以促进国内能源生产和先进制造3投资减少大量高排放行业的排放量,特别注重电工、交通、工业制造、建筑和农业4)促进公平和环境公正,针对历史上弱势社区减少排放投资and (5) investments in rural communities to promote climate-smart agricultural practices, wildfire resilient forests, and sustainable biofuels.
We are analyzing the over 700 pages of legislative text in detail, and have provided additional information on key sections in the following blog posts:
This package presents the opportunity for Congress to finish legislating President Biden's Build Back Better agenda, completing the story detailed in our series The ABCs of the AJP. As we left the saga last summer, we noted that the effort to enact that agenda was Not Broken, Simply Unfinished. Today we are updating that series to detail the following energy related elements of the IRA:
- Accelerating efforts to decarbonize the economy and address climate change
- Ten year stability for expanded clean energy tax credits
- New funding for a National Green Bank through a Greenhouse Gas Reduction Fund
- The Creation of a Methane Emissions Reduction Program
- Strong support for the electric vehicle sector and domestic supply chain
- Empowerment of environmental justice
As President Biden noted yesterday, "Sometimes seem like nothing gets done in Washington ...但政府工作可能缓慢和沮丧,有时甚至令人厌烦。 之后拒绝放弃支付的人辛勤工作时日月数计算。历史成真。生活变换 。 至此,这些情感可能还为时过早!Arizona-Has/news/2022/07/28/dmocrats-climate-xacco-Service-Bill-reces-00048459能源和气候政策,随着法案跨过立法过程最后阶段,我们将继续更新和补充覆盖量。