department of energy

An additional piece of the section 30D puzzle arrived last Friday when the Department of the Treasury (Treasury) and Department of Energy (DOE) released final rules (Treasury Rule and DOE Rule).  Largely tracking the proposed regulations, which we described in our prior blog posts (here and here), but with notable changes, these rules provide further clarity to the electric vehicle sector, essential to foster the widespread EV adoption in the United States.Continue Reading Further Clarity to the Electric Vehicle Industry and Consumers Is Here, But It Is Not Done

First observed on April 22, 1970, Earth Day has long been recognized as a watershed moment for the modern environmental movement.  On that day, over 20 million demonstrators nationwide marched to raise awareness of the need to protect and preserve the environment.  The energy generated from that day galvanized the country to action, leading to the creation of the U.S. Environmental Protection Agency (EPA) in December 1970 and the passage of several statutes later that decade—including the Clean Air Act (CAA) the Clean Water Act (CWA), the Endangered Species Act (ESA), and the Resource Conservation and Recovery Act (RCRA)—that serve as the foundation of U.S. environmental legislation.  Today, Earth Day is recognized by countries around the world, and has expanded from its initial focus on pollution control to include elevating environmental justice in low-income, disadvantaged, and indigenous communities and promoting domestic and international climate action.

Beginning with a proclamation on April 19 declaring climate change to be “the existential crisis of our time,” the Biden-Harris Administration marked Earth Day and the week after by announcing a suite of final rules and grant programs aimed at fossil fuel abatement and pollution control, accelerating electric transmission grid modernization and solar energy development, and reducing greenhouse gas (GHG) emissions from the transportation sector.  These actions underscore not only the continued “whole-of-government” approach that the Administration has taken to combat climate change but also the urgency with which federal agencies have moved to promulgate final rules and protect them from potential congressional revocation ahead of the Congressional Review Act deadline later this spring. 

To assist industries and markets as they evaluate the impact of these final rules and programs, we’ve spotlighted several of these Earth Week regulatory and grant-funding actions.Continue Reading A Week of Climate Action: Spotlight on the Biden-Harris Administration’s Earth Week Regulatory and Grant-Funding Actions

On December 1, the Department of Energy (DOE) and the Department of the Treasury (Treasury) published highly-anticipated proposed rules that will significantly impact China’s and other covered nations’ roles in the battery supply chain for electric vehicles (EVs) sold to U.S. consumers.  The proposed DOE Interpretive Rules and proposed Treasury Regulations interpret the term “foreign entity of concern” (FEOC) in the same manner for purposes of the Battery Manufacturing and Recycling Grant program under the Bipartisan Infrastructure Law and the EV credit under section 30D of the Internal Revenue Code introduced by the Inflation Reduction Act (IRA).  The proposed rules take a more nuanced approach than the proposed and final rules that appeared in the context of the CHIPS and Science Act over the past year (discussed here, here, and here), but nevertheless purport to adopt bright-line rules.  As we have previously noted, adopting a different approach to such term in section 30D is justified to balance the IRA’s dual policy goals of onshoring and “friendshoring” the U.S. EV battery supply chain while making credits sufficiently available to accelerate the electrification of the U.S. consumer vehicle fleet.Continue Reading The Biden Administration Unveils the Long-Waited Guidance on “Foreign Entity of Concern”

The Department of Energy (“DOE”) is proposing to extend to December 31, 2050 the standard twenty-year term for authorizations to export natural gas and liquefied natural gas (LNG) from the U.S. lower-48 states.  According to DOE, the longer term would better match the operational life of LNG export facilities, provide more security in their financing, and maximize the ability to contract for exports.  This change in DOE policy will be of interest to gas and LNG export authorization holders and their counterparties in sales contracts, and to proposed export applicants that are now seeking or will seek such authorizations from DOE.
Continue Reading DOE Proposes to Lengthen LNG Export Terms

As expected, with the inauguration of President Trump all Obama Administration content on the White House website has been replaced with content of the new Administration. The new content includes “An America First Energy Plan”, the entire focus of which is national security and job creation benefits of the Administration’s “embrace” and promotion of…

Official publications of the Trump campaign and transition team propose significant changes in energy policies.   The principal focus of the proposed policy changes addresses energy independence and job creation through greater production of fossil fuel resources.  But apart from pronouncements to “scrap … the Clean Power Plan” there is little to glean from the official publications regarding the incoming administration’s plans to address the much needed transformation of the Nation’s electricity system.

Additional insights about potential Trump administration policies affecting the electric power sector can be gleaned from assorted comments by the President-elect and transition team officials. Since the election, they have signaled possible policy initiatives to scrutinize wind energy subsidies and bird kill impacts, promote nuclear energy and lift restrictions on “clean coal”.  But these hints at policy direction, coupled with an intention to move away from the Clean Power Plan, still leave the electric power industry awash in uncertainty regarding future federal policies to modernize and increase the efficiency, resiliency and security of the Nation’s power grid.

Meanwhile the corporate sector continues to demand federal policies to promote American prosperity through clean energy transformation and is focused on locating business operations in states that facilitate corporate procurement of clean energy.  Independent of clean energy and climate change considerations, the leading trade association of the electric utility industry is highly focused on grid modernization through efforts to redesign and transform the use and operation of the grid to integrate distributed energy resources, replace distribution lines and deploy new technologies and systems that will enhance reliability, resiliency and efficiency.    
Continue Reading Transforming the Nation’s Electricity System: Survivable Elements of Obama’s Policy Roadmap for the Trump Administration

The Department of Energy (“DOE”) issued a draft solicitation yesterday for a new Renewable Energy and Energy Efficient Projects Loan Guarantee Program.  Once finalized, the Program is expected to make as much as $4 billion in loan guarantees available to innovative clean energy technology projects that are not currently in commercial use.  Based on DOE’s…