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This is the 18th in our series, “The ABCs of the AJP.”

In August 2020, a wildfire broke out along Route 70 in Glenwood Canyon, a major thoroughfare across the Rocky Mountains in central Colorado. The fire quickly burned through vegetation on either side of the canyon, loosing rocks that shut down Route 70 for two weeks. As the fire spread, it temporarily shuttered the Shoshone Generating Station, a hydroelectric power station that controls water flow in the upper Colorado River, and forced residents of several communities to evacuate to Glenwood Springs, a nearby town of 10,000. By the time the fire was put out in December, it had burned over 30,000 acres and cost over $30 million to contain.
Continue Reading Readying for Resilience through Infrastructure

In two recent certificate orders issued on May 20, 2021, the Federal Energy Regulatory Commission (“FERC”) did not assess the significance of the greenhouse gas (“GHG”) emissions of natural gas pipeline projects in terms of their contribution to climate change. This seems to be a step back from a March, 2021 order, which indicated that FERC would consider the significance of natural gas emissions in the context of a certificate involving pipeline replacement facilities, but reflects an unusual last-minute compromise reached during an open meeting in order to gain sufficient votes to approve the certificates.
Continue Reading FERC Policy on GHG Impact of Gas Pipelines on Climate Still in Flux

This is the fifteenth in our series on “The ABCs of the AJP.”

Historically, offshore wind has made up a very small percentage of America’s total electricity generation portfolio.  The winds of change are blowing, though, as the Biden Administration’s American Jobs Plan (“AJP”), among other federal actions, signals a new commitment to harnessing this renewable energy source.
Continue Reading Optimism Abounds for Offshore Wind

This post is the 13th in a series, “The ABCs of the AJP.”

As made clear by its name, the Biden Administration intends for its “infrastructure” plan to be a jobs plan.  As is also apparent from the Administration’s proposal, it views requirements to ensure that goods are actually made in America as critical to creating new American jobs.  According to the White House, “by ensuring that American taxpayers’ dollars benefit working families and their communities, and not multinational corporations or foreign governments, the plan will require that goods and materials are made in America.”  Such rules should also help give the United States a boost in its competition with other countries, particularly China.
Continue Reading Made in America: Spurring Domestic Job Creation and Production Through Buy America Rules and Beyond

The European Commission has published a proposal for a Corporate Sustainability Reporting Directive (2021/0104) (“CSRD”), which forms just one part of a comprehensive package of sustainable finance measures (see our blog here).  The Commission has put forward these measures in response to demand for stronger and wider sustainability reporting standards, over and above what the EU Non-Financial Reporting Directive currently provides.  The CSRD seeks to mandate sustainability reporting and assurance through the amendment of existing EU laws, including the Transparency Directive, the Accounting Directive, and the Audit Directive.  More fundamentally, according to the Commission, it will move the EU one step closer to realizing its aim of having sustainability reporting be “on a par” with financial reporting, in terms of attached weight and importance.  This is reflected in the change of terminology used in the CSRD proposal, from a focus on “non-financial” information reporting, to “sustainability”.

We cover below the background and detail, but in summary, these are the key elements of the CSRD proposal that corporates should be aware of:

  • Scope: The CSRD reporting requirements will apply to all large EU companies and all listed companies, including listed small and medium-sized enterprises (“SMEs”). This is estimated to cover around 49,000 companies.
  • Reporting: The so-called “double materiality” principle remains, but in-scope companies will now have to report according to mandatory sustainability standards. Simpler and “proportionate” standards will apply to listed SMEs.
  • Audit: The CSRD will require, for the first time, a general EU-wide audit (assurance) requirement for sustainability information.
  • Digitization: The sustainability information must be published in companies’ management reports — and not separately reported — and the information will need to be digitized or “tagged” so it can be incorporated into a planned European Single Access Point.
  • Timing: If the proposal is adopted and standards can be agreed in line with current ambitious estimates, large in-scope companies must comply from financial years starting on or after 1 January 2023, publishing reports from 2024; whilst SMEs have to comply from 1 January 2026.

Continue Reading The EU Corporate Sustainability Reporting Directive Proposal: What Companies Need to Know

This blog is the seventh in a series, “The ABCs of the AJP.”

Grid Modernization and Resiliency

Grid modernization and resiliency are critical and intertwined issues that only grow more important as climate change increases the frequency and severity of extreme weather events. As the Biden Administration notes in its American Jobs Plan fact sheet, recent power outages in Texas took a tremendous human and economic toll, and power outages generally cost the country $70 billion dollars a year in lost productivity. In light of that figure, the American Jobs Plan’s proposed $100 billion dollar investment in grid modernization may be too conservative. When factoring in health and environmental benefits, the return on investment for an improved grid looks to be extraordinarily robust.
Continue Reading Grid Modernization and Greenhouse Gases

This blog is the sixth in a series, “The ABCs of the AJP.”

One of the key underpinnings of the case for climate legislation is the idea that natural and working lands will suffer without swift and meaningful action. President Biden’s American Jobs Plan (AJP) proposes to “protect and, where necessary, restore nature-based infrastructure – our lands, forests, wetlands, watersheds, and coastal and ocean resources.” But what should that look like? And how will the new administration find common ground with lawmakers who fear that forest conservation can only come at the expense of rural communities and the industries that rely on these resources?
Continue Reading Finding the Common Ground for Forests

This is the fourth in our series on “The ABCs of the AJP.”

The White House’s recent announcement of the American Jobs Plan (AJP) highlights the establishment of a “$27 billion Clean Energy and Sustainability Accelerator to mobilize private investment into distributed energy resources.”  While distributed energy resources (DERs) are only mentioned once in the announcement, they figure to play an important role in the Administration’s overall goals.
Continue Reading Distributed Energy Resources

FERC recently took two actions regarding its transmission rate incentives policies.  FERC proposed to scale back an earlier proposed increase in the return on equity (ROE) premium allowed in the rates of transmission owners that join Transmission Organizations such as RTOs/ISOs and proposed to clamp limits on its term.  The Commission also scheduled a workshop to address performance-based incentives for transmission technology deployment.  Both actions were taken in the context of a March 2020 Notice of Proposed Rulemaking (NOPR) aimed at, in part, awarding rate incentives for certain beneficial transmission investments.
Continue Reading FERC Focusing On Electric Transmission Incentives

The Federal Energy Regulatory Commission (FERC) has for the first time ruled on whether the greenhouse gases (GHG) emitted during the construction and operation of a proposed natural gas pipeline has a significant impact on climate change in determining whether to authorize a project as consistent with public convenience and necessity under Section 7 of the Natural Gas Act.  In earlier orders, FERC concluded that it was unable to assess the significance of a project’s GHG emissions or those emissions’ contribution to climate change.  In a recent order approving Northern Natural Gas Company’s proposal to replace a pipeline segment, FERC stated that is no longer the case and then assesses the significance of the project’s GHG emissions and their contribution to climate change.
Continue Reading FERC Assesses Impact of Pipeline Project’s GHG Emissions On Climate Change