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.
On December 29, 2022, Treasury released a white paper indicating the anticipated direction of proposed guidance on the critical mineral and battery component requirements for the new clean vehicle credit under section 30D. The guidance will be critical to automakers and consumers seeking to qualify for tax credits available for purchase of EVs under the Inflation Reduction Act.
Continue Reading Treasury and the IRS provide its first set of proposed guidance and a white paper on the clean vehicle credit
Today, the IRS released Revenue Procedure 2022-42 to address the reporting requirements for vehicle manufacturers and sellers. These reporting requirements are prerequisites for purchasers’ eligibility for clean vehicle tax credits under Sections 25E, 30D, and 45W. Section 30D(d)(3) requires that a manufacturer enter into a written agreement to become a qualified manufacturer, which requires periodic written reports to the IRS. Similarly, Section 30D(1)(H) requires that the person who sells a vehicle furnish a report to purchasers and the IRS.…
On October 5, 2022, the Treasury Department and the IRS issued notices requesting comments on different aspects of the energy tax benefits in the Inflation Reduction Act (“IRA”). All comments are due by Friday, November 4, either electronically on www.regulations.gov or alternatively by mail to the IRS. Written comments submitted after that date will be considered as long as such consideration will not delay the issuance of guidance.…
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.…
The European Parliament and Council are in the last stages of the legislative procedure to adopt a Regulation on Batteries and Waste Batteries (“Sustainable Batteries Regulation”), which the European Commission proposed in December 2020. Among other many requirements, the proposed Sustainable Batteries Regulation will require manufacturers to ensure that the portable batteries contained in their electronic devices are removable and replaceable. These requirements will apply to a large variety of electronic devices, including household appliances, IT, telecommunications equipment, and medical devices. They are part of a broader sustainable products package that includes other legislative proposals, such as the Commission proposal for a Regulation on Ecodesign Requirements for Sustainable Products and an upcoming legislative initiative on the right to repair, and will require manufacturers to redesign the electronic devices that they market in the European Union and European Economic Area (“EU/EEA”).…
The Environmental Protection Agency has issued three requests for information regarding recycling issues, a first step towards distributing funds and carrying out mandates contained in the last year’s Infrastructure Investment and Jobs Act, commonly known as the Bipartisan Infrastructure Law. The programs for which EPA is requesting information are primarily directed toward improving recycling of…
This blog is the nineteenth in our series, “The ABC’s of the AJP.”
Increasing grid-scale energy storage in the United States is a critical part of infrastructure development. President Biden’s American Jobs Plan (AJP) would place investments in energy storage at the center of his goals of achieving a net-zero electricity sector by 2035 and making the electricity grid more resilient. These investments would also support the Administration’s efforts to secure an end-to-end domestic supply chain for high-capacity batteries and the critical minerals that go into them.
Continue Reading Scaling Energy Storage Solutions and Securing Supply Chains
This blog is the second in a series, “The ABCs of the AJP.”
The American Jobs Plan recognizes that a net-zero economy will require significant innovation in and deployment of energy storage technology. For example, the President’s efforts to decarbonize the power sector by 2035 will include increased reliance of renewable energy sources, which will benefit greatly from utility-scale battery systems. The push to electrify the transportation sector also depends on cost-competitive batteries powering vehicles. Here, we present three ways in which AJP seeks to advance battery technology and adoption.
Continue Reading Building Back Better with Batteries
In December 2020, the European Commission presented a proposal for a new Regulation on Batteries and Waste Batteries (see Covington’s webinar on the proposal). The proposed Regulation seeks to achieve the objectives set out in the European Green Deal and subsequent strategies, such as the transition to a carbon neutral and circular economy and the growth of renewable energies and clean mobility. The European Parliament and Council are currently considering the proposal for its adoption through the ordinary legislative procedure, which is not likely to be completed before mid-2022.
Continue Reading Upcoming EU Environmental and Human Rights Supply Chain Due Diligence Requirements for Rechargeable Industrial Batteries and E-Vehicle Batteries