Clean Energy

Subscribe to Clean Energy

Introduction

President Biden signed the Inflation Reduction Act of 2022 (the Act) into law on August 16, 2022.  The Act represents an expansive investment in the energy industry, with many provisions targeting clean energy and climate change issues through funding and tax credits.  However, several notable provisions from an environmental permitting and compliance standpoint are buried amongst the financial and tax provisions.  These environmental provisions relate to permitting and compliance that the regulated industry, especially energy companies, should watch closely.

Funding for Permitting and Programmatic Development

The Act provided significant funding to regulatory authorities for a number of permitting-related activities. 

For example, the National Oceanic and Atmospheric Administration (NOAA) received $20 million to assist with permitting and project review.  The funds are meant to result in more efficient, accurate, and timely reviews for planning, permitting and approval processes through hiring and training personnel and obtaining new technical and scientific services and equipment. 

The United States Environmental Protection Agency (U.S. EPA) received $40 million for its permitting and project review efforts.  The funds will be utilized to develop efficient, accurate, and timely reviews for permitting and approval processes through hiring and training of personnel, development of U.S. EPA programmatic documents, procurement of technical or scientific services for reviews, development of environmental data and new information systems, purchase of new equipment, developing new guidance documents, and more.

The Act provided over $62.5 million to the Council on Environmental Quality to develop programmatic documents, tools, guidance, and improvement engagement.  These funds will also support collection of data regarding environmental justice issues, climate change data, development of mapping/screening tools, and tracking and evaluation of cumulative impacts. 

Several other federal agencies received millions in funding for review and planning of electricity generation infrastructure, like the Federal Energy Regulatory Commission, the Department of Energy, and the Department of the Interior.  Funding will be used to facilitate timely and efficient reviews, as well as generate environmental programmatic documents, environmental data, and increase stakeholder and community involvement. 

In sum, regulators involved in environmental and energy permitting received a substantial boost in funding targeting the permitting process, including supporting the development and build out of programmatic documents and capabilities.  The funding could improve the timing of the permitting processes for these agencies, but it could also lead to additional administrative burdens in the form of new application and compliance materials and increased regulatory scrutiny where a regulator has more time and money to invest in the regulatory process.…

Continue Reading Environmental aspects of the Inflation Reduction Act of 2022

On November 7, 2020, Joe Biden became the projected President-elect of the United States. With an aggressive climate change plan that includes rejoining the Paris Agreement on the first day of his term, President-elect Biden and his administration will likely make significant changes to environmental, health, and safety rules and policies that will rollback Trump administration environmental actions and increase civil and criminal enforcement of environmental laws.

New Regulatory Rollbacks and Expansions

The Trump administration took deregulatory actions that weakened or repealed more than 100 environmental policies and regulations.  For example, President Obama’s Clean Power Plan, which set targets for greenhouse gas emissions for existing power plants, was repealed and replaced with the Affordable Clean Energy rule, which removed emission targets and directed states to determine the best course of action for regulating power plant emissions.  The Trump administration issued the Safer Affordable Fuel-Efficient Vehicles Rule, which authorized the Department of Transportation to establish fuel economy standards and preempted similar state regulations, including California’s regulations regarding greenhouse gas emissions for new passenger cars and light trucks.  The Trump administration’s Navigable Waters Protection Rule significantly narrowed the “Waters of the United States” Rule under the Clean Water Act.  Trump’s Environmental Protection Agency (EPA) repealed Obama-era methane and volatile organic compound emissions standards for new and existing oil and gas operations, and removed the most stringent requirements of newly promulgated revisions to the Risk Management Program rule.  The Occupational Safety and Health Administration (OSHA), meanwhile, largely stalled new rulemakings that had been initiated under the Obama administration, including the Process Safety Management (PSM) standard, and has so far declined to initiate a rulemaking in response to COVID-19 under the current administration.…

Continue Reading Swinging the Pendulum: Significant Shifts in Environmental and Safety Regulation under a Biden Administration