Energy & Sustainability Washington Updates – January 2021 – Energy and Natural Resources

As we method the top of the present 116th Congress on January
3, there was a flurry of energy-related exercise on Capitol
Hill in addition to with the Biden-Harris presidential transition as
President-elect Biden prepares for his inauguration on January
20.

Biden-Harris Transition Updates

President-elect Biden has continued to spherical out his power,
surroundings, and local weather groups, naming cabinet-level nominees as
properly as different roles that don’t require affirmation by the U.S.
Senate.

• Jennifer Granholm, the previous governor of Michigan, has been
  nominated high function Secretary of Vitality.




• Michael Regan, Secretary of the North Carolina Division of
  Environmental High quality, has been nominated to function Administrator
  of the Environmental Safety Company.




• Rep. Deb Haaland (D-NM) has been nominated to function
  Secretary of the Inside.




• John Kerry, former senator and secretary of state, will serve
  as Particular Envoy for Local weather (a brand new publish created by the
  President-elect).




• Gina McCarthy, former Administrator of the EPA, will function
  the White home Nationwide Local weather Advisor (a brand new publish created by the
  President-elect).




• Ali Zaidi, who served within the Obama Administration, as Deputy
  White Home Nationwide Local weather Advisor (a brand new publish created by the
  President-elect).




• Brenda Mallory, an environmental legislation professional, will function
  chair of the White Home Council on Environmental High quality.




• Susan Rice, former Nationwide Safety Advisor to President
  Obama, will function chair of the Home Coverage Council.

Congress Approves Bipartisan Vitality
Package deal

The Fiscal 12 months 2021 Consolidated Appropriations Act, finalizing
the federal authorities’s appropriations for the present fiscal
yr which began on October 1, included a bipartisan, bicameral
settlement (the Vitality Act of 2020) which mixed the Senate’s
American Vitality Innovation Act (S. 2657) and the Home of
Representatives’ Clear Financial system Innovation and Jobs Act (H.R.
4447). That is the primary complete power laws in additional
than a decade.

The bundle focuses on power storage; superior nuclear; carbon
seize, utilization and storage; carbon removing; renewable power;
vital minerals and supplies; fusion; industrial applied sciences;
good manufacturing; and grid modernization, amongst different areas. It
additionally reauthorizes ARPA-E and the Weatherization Help program,
and features a vary of measures aimed toward boosting power
effectivity and brings administrative reforms to enhance the
Division of Vitality.

A high-level abstract of the Vitality Act may be discovered by clicking
HERE.

A extra detailed section-by-section abstract of the Vitality Act can
be discovered by clicking HERE.

Vitality Tax Provisions Made Everlasting or
Prolonged

The tip-of-year omnibus laws, overlaying FY21
appropriations and COVID reduction measures, additionally included quite a few
provisions that both made everlasting or prolonged sure power
and power effectivity tax provisions. The “tax extenders”
language within the omnibus extends the funding tax credit score for 2
years and the manufacturing tax credit score for one yr; expands tax
incentives for offshore wind, waste warmth to energy property, and
environment friendly biomass stoves; incentivizes power environment friendly business
buildings by making everlasting the deduction for sure power
environment friendly property; and extends credit for power environment friendly and
renewable power property for owners, new power environment friendly
properties, EV charging and gas cell refueling stations, and sure
zero-emissions autos.

Extra particularly, the invoice:

• Extends the manufacturing tax credit score for renewable energy
  services that start building by the top of 2021. For wind
  services that start building by the top of 2021, the credit score
  continues to be decreased by 40 p.c.




• Extends the present 26 p.c funding tax credit score for photo voltaic
  power property, fiber-optic photo voltaic gear, gas cell property,
  and small wind power property that start building by the top
  of 2022, and at a 22 p.c price for property that start
  building by the top of 2023, after which the credit score is decreased
  to 10 or zero p.c. The invoice extends the ten p.c funding
  credit score for microturbine property, geothermal warmth pumps, and
  mixed warmth and energy property that begins building by
  2023.




• Extends by 2021 a credit score for purchases of nonbusiness
  power property. The supply permits a credit score of 10 p.c of the
  quantities paid or incurred by the taxpayer for certified power
  enhancements to the constructing envelope of principal residences. The
  provision permits credit of mounted greenback quantities starting from $50
  to $300 for energy-efficient property together with furnaces, boilers,
  biomass stoves, warmth pumps, water heaters, central air
  conditioners, and circulating followers, and is topic to a lifetime
  cap of $500.




• Extends, by 2021, a credit score for purchases of latest certified
  gas cell motor autos. The supply permits a credit score of between
  $4,000 and $40,000, relying on the load of the car.




• Extends, by 2021, a credit score for the set up of
  various gas car refueling property, which incorporates
  property that dispenses various fuels together with ethanol,
  biodiesel, pure gasoline, hydrogen, and electrical energy. The credit score is
  capped at $30,000 per location for enterprise property and $1,000 for
  property put in at a principal residence.




• Extends, by 2021, a 10-percent credit score for highway-capable,
  two-wheeled plug-in electrical autos. The credit score is capped at
  $2,500. Batter capability inside the autos have to be larger than or
  equal to 2.5 kilowatt-hours.




• Extends, by 2021, the credit score of as much as $2,000 for certified
  new power environment friendly properties.




• Extends, by 2021, the $0.50-per-gallon excise tax credit score
  or fee for various gas and $0.50-per-gallon credit score for
  various gas mixtures.




• Extends, by 2022, the credit score for residential power
  effectivity property on the present 26 p.c price for property
  positioned in service by 2022, with the speed decreased to 22 p.c
  for property positioned in service in 2023. Beginning in 2021, the
  provision expands the definition of eligible property to incorporate
  certified power environment friendly biomass gas property with a thermal
  effectivity score of at the least 75 p.c. Biomass stoves will no
  longer qualify underneath part 25C to stop a double profit.




• Makes waste power restoration property eligible for the power
  funding tax credit score. Waste power property that begins
  building after 2021 or 2022 is eligible for a 26 p.c
  credit score, and property that begins building in 2023 is eligible
  for a 22 p.c credit score.




• Extends the funding tax credit score for electing offshore wind
  services that start building by 2025. Offshore wind
  services that start building throughout 2017 to 2025 are usually not
  topic to the onshore-wind services phase-out charges and are
  eligible for the complete credit score quantity.

A Senate Finance Committee abstract of the tax provisions may be
discovered by clicking HERE.

Home Democrats Finalize 117th Congress Committee
Assignments

The Home Democratic Steering Committee has finalized committee
assignments for the 117th Congress, which convenes on January 3,
with quite a lot of new members for the Home Vitality & Commerce
Committee: Rep. Angie Craig (D-MN), Rep. Lizzie Fletcher (D-TX),
Rep. Kathleen Rice (D-NY), Rep[. Kim Schrier (D-WA), and Rep. Lori
Trahan (D-MA). The House Ways & Means Committee, which has
jurisdiction over tax matters, will also gain one new Democratic
member with Rep. Stacey Plaskett (D-VI).

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