Net Zero Energy

On February 12, the U.S. Department of Energy (DOE)’s Office of Fossil Energy and Carbon Management (FECM) announced that it will award up to $100 million to support U.S. pilot projects and testing facilities demonstrating and scaling carbon dioxide removal (CDR) technologies.  The funding will support projects and facilities that remove carbon dioxide (CO2) directly from the atmosphere and store it in geological, bio-based, or ocean reservoirs, or that convert the captured CO2 into value-added products.  The funding is intended to support the development of a commercially viable U.S. CDR industry, in advancement of the goal of DOE’s Carbon Negative Shot of reducing the cost of capturing CO2 from the atmosphere and storing it at gigaton scales to less than $100 per net metric ton of CO2-equivalent by 2032.  The funding is a significant opportunity for developers and investors in CDR ventures that are prepared to deploy a pilot project in an area of interest for DOE.Continue Reading DOE Announces $100 Million in Funding to Accelerate Carbon Removal

Laws and regulations that require companies, both private and public, to disclose their greenhouse gas (GHG) emissions continue to expand in the European Union and in the United States.  Under the EU Corporate Sustainability Reporting Directive (CSRD), beginning in 2025, EU-based public companies and large EU-based private companies will be required to report all material Scope 1, 2, and 3 GHG emissions as set forth in the European Sustainability Reporting Standards.  In the United States, California recently passed landmark climate-related disclosure legislation that will require U.S. companies that do business in California and have greater than $1 billion in annual revenues to file annual reports publicly disclosing their Scope 1 and 2 GHG emissions beginning in 2026 and Scope 3 GHG emissions in 2027.  This legislation is expected to be joined by the U.S. Securities and Exchange Commission’s (SEC) proposed climate-related disclosure rule.  Initially proposed in March 2022, if finalized, the SEC rule would require public companies to disclose their Scope 1 and Scope 2 emissions and material Scope 3 emissions.  And later this year, world policymakers, activists, and business leaders will convene at COP28 to discuss global progress towards achieving the net-zero GHG emissions targets set by the Paris Agreement.

The Greenhouse Gas Protocol (GHG Protocol) sits at the center of all these efforts.  Established by the World Resources Institute and the World Business Counsel for Sustainable Development in 2001, the GHG Protocol establishes comprehensive standards for private and public entities to calculate and report their GHG emissions and track progress towards their emissions targets.

Continue Reading Calculating and Reporting Greenhouse Gas Emissions: A Primer on the GHG Protocol

On May 24, 2023, EPA released a guidance memorandum addressing the hazardous waste status of lithium ion batteries under the Resource Conservation and Recovery Act (“RCRA”).  EPA released the guidance to “both remove uncertainties for the states and industry about the regulatory status of these materials,” and to ensure that lithium ion batteries are properly handled when they are recycled.Continue Reading EPA Clarifies Hazardous Waste Requirements Applicable to Lithium Ion Batteries

The European Parliament and Council are about to adopt an agreed text on a Regulation on Batteries and Waste Batteries (“Sustainable Batteries Regulation” or “SBR”) that will impose a broad range of requirements on the safety, sustainability and circularity of batteries, including batteries that are part of devices (e.g., laptop batteries), industrial batteries (e.g., large stationary storage applications) and means of transport batteries (e.g., car batteries), as well as extended producer responsibility obligations (including waste take back) on producers marketing them.  The SBR is likely to be published in the official journal of the EU within the next couple of months and will repeal and replace the existing EU Directive on Batteries and Waste Batteries.

This post outlines the specific removability and replaceability requirements that the SBR will impose on portable batteries and light means of transport (“LMT”) batteries (e.g., batteries for electric bicycles) marketed in the EU/EEA as of around September/October 2026.  The new requirements will oblige producers of appliances to introduce design changes to their appliances and the batteries they incorporate.  Moreover, clarifying the details of such requirements is likely to create much controversy and debate among the European Commission, Member States and other stakeholders within the next two years.  In effect, the SBR leaves it to the Commission to adopt guidelines interpreting the different removability and replaceability requirements. 

The post also briefly mentions the political compromise that the European Parliament and Council reached on the removability and replaceability of electrical vehicle batteries and “starting, lighting and ignition” (“SLI”) batteries, and its emphasis on ensuring that such batteries be removable and replaceable by “independent professionals” (and not just authorized dealers).Continue Reading New Removability and Replaceability Requirements for Batteries Marketed in the European Union

On October 5, 2022, the U.S. Environmental Protection Agency (“EPA”) announced its plan to streamline the typical review process for Mixed Metal Oxides (“MMOs”), including certain cathode active materials, which are key components in electric vehicles’ lithium-ion batteries, as well as clean energy generation and storage technology, including wind turbines and solar cells.  MMOs can also be used in semiconductors. 

As we have written about previously, increasing the domestic supply of EVs and semiconductors, and expanding the country’s clean energy capacity are among the core policy objectives of the Biden Administration.Continue Reading EPA to Streamline the Review Process for Certain EV and Clean Energy Chemicals

On July 27, New York Governor Kathy Hochul announced the release of the state’s third competitive offshore wind solicitation (RFP), seeking to procure a minimum of 2,000 megawatts (MW) of new offshore wind generation capacity, as well as significant capital investment in New York’s bourgeoning offshore wind energy supply chain.  New York’s Climate Leadership and Community Protection Act of 2019 established the goal of developing 9,000 MW of offshore wind capacity, the largest statutory goal to-date of any state in the country, by 2035.  Combined with the 4,300 MW of offshore wind generation capacity procured through its prior two solicitations, the RFP will put the state more than two-thirds of the way towards reaching that target. Continue Reading New York Remains Offshore Wind Pacesetter with Third Solicitation

The Inflation Reduction Act of 2022 (the “IRA”) features $260 billion in clean-energy tax credits. While the IRA extends many existing clean-energy tax credits, like the energy production tax credit and investment tax credit for wind and solar, it also establishes new credits, including credits for advanced manufacturing and hydrogen production. Additionally, beginning in 2025, taxpayers with zero emissions facilities would have added flexibility to choose between using a new technology neutral production tax credit or investment tax credit.Continue Reading Expansion and Long-Term Stability of Climate and Energy Tax Credits

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. Continue Reading Inflation Reduction Act Sets the Stage for a National Green Bank

The environmental justice provisions included in the Inflation Reduction Act of 2022 (“IRA”) continue the Biden Administration’s commitment to environmental justice.  The administration has already demonstrated a consistent desire to build environmental justice into its programs through programs such as the Justice40 Initiative.  This initiative directs 40% of the climate change, sustainability, and other

The transportation sector constitutes the largest source of greenhouse gas emissions in the United States, and the Inflation Reduction Act (IRA) takes significant steps to transition the U.S. vehicle fleet to zero-emissions technology.  The proposed legislation takes a multi-faceted approach in doing so: it not only provides incentives for increased consumer use of electric vehicles, it also promotes domestic zero-emissions vehicle manufacturing. Continue Reading Inflation Reduction Act Shows Strong Support for the Electric Vehicle Sector and Domestic Supply Chains