Climate Policy Updates  June and July 2022

⚡We are excited to kick off a bi-monthly internal Policy Blog that is intended to provide a snapshot of current policy programs, funding, initiatives, and legal decisions that are relevant to BlocPower's work.  ♻️ Read on to find out more! 

Federal Legislation, Decisions, and Regulations

🚫Senator Manchin "rug-pulls" his support for climate provisions in Democratic bill

On July 14, negotiations for the Reconciliation bill meant to implement President Biden's domestic agenda, fell apart when Senator Joe Manchin (D-WV) told Senate majority leader Chuck Schumer that he would not support any climate or energy investments in the bill. Not only did this move squash months of negotiations around climate and energy provisions, but this "rug-pull" at the eleventh hour dooms America's hopes of meeting Paris Agreement targets. In addition, it will also likely worsen inflation, contrary to Manchin's supposed line of reasoning for opposing the provisions. This Scientific American Article has a sadly ironic take on Senator Manchin's actions.  

🔌🇺🇸 Defense Production Act to accelerate domestic clean tech production

On June 6, President Biden authorized the use of the Defense Production Act (DPA) to accelerate domestic production of clean energy technologies – unlocking new powers to meet this moment. The White House Fact Sheet states that the Department of Energy will use the DPA to rapidly expand American manufacturing of critical clean energy technologies including heat pumps, solar panel parts like photovoltaic modules and module components, and critical power grid infrastructure.

🦨SCOTUS deals the Environmental Protection Agency a blow

The Supreme Court in EPA v. West Virginia voted 6-3 to restrict the EPA’s authority to regulate the Clean Power Plan which regulates greenhouse gas emissions, asserting that the EPA cannot set standards in the shift towards renewable energy. Supreme Court Justice Gorsuch interpreted the case through Major Questions Doctrine which seeks to limit the regulatory authority of federal agencies and which Justice Kagan decried as regulatorily destabilizing. Although the decision did not remove EPA’s fundamental authority to regulate GHGs, it limits EPA regulations and states that Congress must address climate change legislation to explicitly vest this authority in EPA. 

🤖DOE announces a breakthrough in heat pump technology

The Department of Energy announced a breakthrough in cold-climate air-source heat pump (ccASHP) technology achieved under its year-old program, the "Residential Cold Climate Heat Pump Technology Challenge." American heat pump manufacturer Lennox, one of nine firms participating in the challenge, developed a heat pump model that can heat homes in cold climates even more effectively than today's models. This breakthrough should further assuage ccASHP performance concerns, which are a legacy of outdated prior technology.

 💙Justice40 at FEMA

As part of President Biden's Justice40 Initiative which set a goal of delivering 40% of the overall benefits of Federal investments in climate and clean energy to disadvantaged communities, FEMA is prioritizing communities that have long been marginalized, overburdened, and underserved. ➡️ The White House announced $2.3 Billion for FEMA's Building Resilient Infrastructure and Communities (BRIC) program available for states, local communities, Tribes, and territories to proactively reduce their vulnerability to heat waves, drought, wildfires, flood, hurricanes, and other hazards boosted by the President’s Bipartisan Infrastructure Law. Smart City Dive article on BRIC

🔥Biden administration proposes new rule for energy efficiency in gas furnaces

The Biden administration, through the DOE, proposed a new rule that would require non-weatherized gas furnaces to achieve annual fuel efficiency of 95 percent. If adopted, the rule would save consumers $1.9 billion and reduce carbon emissions by 373 million metric tons every year. It's also expected to raise annual heat pump sales by 300,000.

🎉Congress – Movers and Shakers
🧊🌶️ (ICEE HOT) → Installing Clean Efficient Energy Hastens Our Transition Act
Sponsored by Sen. Ed Markey (D-MA), this bill would amend the Energy Policy Act of 2005 by expanding an existing rebate program with $10 billion in funding from the 2023 through the 2030 fiscal years. Four other Democratic senators have signed onto the bill.

🥵💲(HEATR) The Heating Efficiency and Affordability through Tax Relief Act
Sponsored by Sen. Amy Klobuchar (D-MN), HEATR would offer manufacturers tax credits for making heat pumps and heat-pump water heaters. Six other Democratic senators have signed onto the bill.

State News 

💰New York state limits gas-intensive cryptocurrency mining

The NYS legislature passed a two-year ban on a method of cryptocurrency mining that involves re-opening shuttered power plants and using their power exclusively for mining operations. This method is incredibly energy-intensive, with a single operation in Dresden, NY, using enough natural gas to power 35,000 homes. It became popular in New York due to the large number of shuttered power plants present throughout the state.

New York state fails to pass the All-Electric Buildings Act

Despite some climate policy wins, the NYS Senate closed its legislative session in June without passing the All-Electric Buildings Act, a bill that would eventually require all newly constructed buildings to use only electricity for heating and appliances. If the bill passes in a future session, it would make New York the first state to pass legislation of that kind — fittingly so, since New York has the most building emissions of any state.

🎐🍃 Massachusetts Legislature Passes Climate Bill; Gov. Baker has until July 31 to sign or veto 

The Massachusetts Legislature passed Climate Legislation on July 21.  The climate bill that will expand clean energy, transportation electrification, and building decarbonization measures to create jobs and help reach statewide emissions reduction targets. The provisions in this bill will support much-needed progress to reduce emissions by 50% by 2030 as required by law. Governor Baker must now sign the bill into law by the end of the month. WBUR Summary of the Massachusetts Climate Bill

🌊 Rhode Island Governor signs historic Renewable Energy Law

On July 1st, Governor Dan McKee signed into law historic legislation to increase renewable energy production and supply by requiring that 100 percent of Rhode Island’s electricity be offset by renewable production by 2033. Rhode Island is the first state in the country to commit to 100 percent renewable energy by 2033. Fun fact: Rhode Island, with a population of just under 1.1 million people, consumes less energy on a per capita basis than any other state.

Gov. Newsom, CA State Senate & General Assembly reach a budget agreement

As part of the budget, they announced a $19.3 billion Climate-Energy Package ($4.89 billion in 2021-22, $4.83 billion in 2022-23, and $9.59 billion for the out-years) with details to be determined in future legislation including $3.11 billion Flexible Climate Set-Aside; $8.09 billion Energy; $300 million Extreme Heat; $773 million Nature-Based Solutions; $3.53 billion 2022 Zero-Emission Vehicles

Local News

🎊 Washington, D.C:  Washington, DC Set to Be 2nd East Coast City with Gas Ban

The City Council passed legislation to ban most natural gas use in new buildings by 2026.  All new buildings and substantial renovations in D.C. will have to be net-zero construction, meaning they produce as much energy as they consume, under legislation passed unanimously by the D.C. Council on July 14. The Council passed separate climate legislation committing to making the entire city carbon-neutral by 2045. Both pieces of legislation are under review by Mayor Muriel Bowser. Two great links are here and a background report: Natural Gas Leaks Contribute To Climate Change

🌳New Lebanon, NY, invests in its green economy

The town of New Lebanon, NY, is taking action to grow its green economy by investing in workforce training and development. To create a blueprint for this transition, the municipality commissioned a study from graduate students at Cornell University. The study identified eleven green jobs that would suit the small town's workforce, including solar panel and heat pump installation, electric vehicle repair, and hydrogen cell engineer. With this effort, New Lebanon has positioned itself as a regional leader in climate change mitigation and hopes other communities will use the blueprint to transition their own economies to the green side.

Several California cities ban the construction of new gas stations

After Petaluma, CA, banned new gas stations last year, four other municipalities in the Bay Area have followed suit. It's estimated that, by 2035, 80 percent of all gas stations will be unprofitable, so banning new ones makes financial sense. Additionally, these policies will help reduce the environmental contamination of both air and ground that gas stations produce. According to the EPA, around half of the 450,000 brownfield sites in the United States are contaminated with petroleum.

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