117th Congress and Biden Administration Energy Expectations

After what felt like one of many longest election seasons in historical past, Washington is making ready to welcome the incoming administration of President-elect Joe Biden and Vice President-elect Kamala Harris. In the meantime, Capitol Hill adjusts to a dramatic shift in energy as Democrats achieved an election night time stunner by profitable each Senate run-off elections in Georgia on January 5, sending Rev. Raphael Warnock and Jon Ossoff to Washington and giving Democrats a 50-seat majority with the brand new incoming vp casting any tie votes. Within the Home of Representatives, Republicans narrowed the Democrats’ majority in November however are nonetheless within the minority and Rep. Nancy Pelosi (D-CA) has been reelected to function Speaker of the Home.

What does this all imply for power and sustainability?

Biden-Harris Presidential Transition

In essentially the most speedy sense, the trail has been cleared for the president-elect’s cupboard nominees. President-elect Biden has continued to spherical out his power, setting, and local weather groups, naming cabinet-level nominees in addition to different roles that don’t require affirmation by the U.S. Senate.

• Jennifer Granholm: The previous governor of Michigan, has been nominated to function Secretary of Power.

• Michael Regan: The 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): The congresswoman, simply elected to her second time period in workplace, has been nominated to function Secretary of the Inside.

• John Kerry: The previous senator and secretary of state, will function Particular Envoy for Local weather (a brand new submit created by the President-elect).

• Gina McCarthy: The previous Administrator of the EPA, will function the White Home Nationwide Local weather Advisor (a brand new submit created by the President-elect).

• Ali Zaidi: Having served within the Obama Administration, he’ll now function Deputy White Home Nationwide Local weather Advisor (a brand new submit created by the President-elect).

• Brenda Mallory: An environmental regulation professional, she is going to function chair of the White Home Council on Environmental High quality.

• Susan Rice: The previous Nationwide Safety Advisor to President Obama will function chair of the Home Coverage Council.

With Democrats holding the Senate majority, the president-elect’s nominees could have a a lot simpler time than they might have had if Republicans had been within the majority, though outgoing Senate Majority Chief Mitch McConnell (R-KY) had beforehand pledged to carry the entire new president’s nominees to the total Senate for consideration.

As we method the January 20 inauguration, we are going to study extra about how President-elect Biden intends to fill extra posts and we anticipate that we are going to know many of those new senior authorities officers.

Biden Agenda for Power, Power Effectivity, and Local weather

Paris Local weather Settlement

The president-elect has routinely said that on “day one” of his administration he could have the U.S. rejoin the Paris Local weather Settlement. Along with rejoining the Paris Local weather Settlement, the vp has stated that in his first 100 days in workplace, he’ll “convene a local weather world summit to immediately have interaction the leaders of the most important greenhouse gas-emitting nations of the world to influence them to hitch the USA in making extra bold nationwide pledges, above and past the commitments they’ve already made.” To rejoin the Paris Settlement, the brand new president merely wants to tell in writing the United Nations of his intent. There’s some dialogue amongst conservatives of a last-minute ploy to dam Mr. Biden on this effort, by asking President Trump, in his closing days in workplace, to submit the Paris Settlement to the Senate as a treaty requiring ratification in a two-thirds vote.

Financial system-wide internet zero emissions by 2050

The president-elect has stated he’ll search, in his first 12 months in workplace, laws that, by the top of his first time period, places the U.S. on an irreversible path to realize economy-wide net-zero emissions no later than 2050. Whereas Democrats management each chambers of Congress, the brand new president should thread the needle on this given the razor-thin margins for the Home and Senate Democratic majorities, however that’s not so say it can’t be performed.

Buildings effectivity

The president-elect plans to set a goal of decreasing the carbon footprint of the U.S. constructing inventory by 50% come 2035, creating incentives for deep retrofits that mix equipment electrification, effectivity, and on-site clear energy technology.

Electrical Automobiles

Mr. Biden has additionally stated he’ll work with governors and mayors to help the deployment of greater than 500,000 new public charging shops by the top of 2030. Though it was not enacted, a Senate bipartisan transportation invoice within the earlier congress included $1 billion for EV charging so there may be already some stage of bipartisan help for this effort.

Gasoline financial system requirements for autos

One other “day one” promise from candidate Biden was to start improvement of rigorous new gasoline financial system requirements aimed toward guaranteeing 100% of recent gross sales for light- and medium-duty autos will likely be zero emissions and annual enhancements for heavy-duty autos.

DOE loans

Leftover and unused from the 2009 financial stimulus is $40 billion in DOE mortgage authority. Some are calling for the brand new administration to easily change the language of the mortgage program to permit DOE to make a fast funding in new clear power applied sciences like batteries and power storage know-how.

Banning new oil and fuel leases on public lands

As a candidate Mr. Biden made this pledge, however President Trump has been very actively locking in contracts within the closing months of his time period. There’s additionally Democratic help for such leases from some governors. Whereas the environmental and conservation communities will press arduous for a achievement of Mr. Biden’s promise, this might show troublesome within the speedy future.

Carbon enforcement mechanism (i.e. carbon tax)

As a part of his local weather agenda, the president-elect has referred to as for laws that “establishes an enforcement mechanism” to curb dangerous greenhouse fuel emissions. Though as a candidate through the Democratic primaries Mr. Biden referred to as for a worth on carbon emissions, extra lately his group has indicated what he helps is a mixture of financial stimulus, investments in clear power, in addition to decarbonization requirements on a sector-by-sector foundation. Democrats within the Home and Senate have individually launched studies calling for a carbon tax, however there may be Republican opposition. The idea does have some trade help.

Congressional Agenda

The year-end omnibus laws within the 116th Congress included the primary vital power laws in additional than a decade. The power package deal targeted on power storage; superior nuclear; carbon seize, utilization and storage; carbon removing; renewable power; important 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 Power. The omnibus additionally both made everlasting or prolonged numerous clear power and power effectivity tax provision.

Whereas the omnibus addressed many power and sustainability coverage and tax priorities, there’ll nonetheless be many extra alternatives with the brand new Administration and the 117th Congress. That is very true now that Democrats have taken the Senate majority and can virtually actually search to move a finances reconciliation invoice which solely wants a easy majority vote within the Senate versus the same old 60-vote threshold to advance laws. Though a reconciliation invoice can not create new rules, change present rules, create or instruct on new spending, it does present vital leeway with regard to present obligatory spending and tax coverage.

Learn extra from ML Methods on finances reconciliation HERE.

Even with final 12 months’s profitable power laws, there’ll nonetheless be many alternatives within the 117th Congress:

Home guidelines

The foundations package deal for the 117th Congress waives “pay as you go” (PAYGO) mandates for laws “to forestall, put together for, or reply to financial, environmental, or public well being penalties ensuing from local weather change.” This was a key purpose of the extra progressive wing of the Home Democratic caucus who will proceed to push for the Inexperienced New Deal – or some variation of it.

Power tax provisions

Whereas the 2020 year-end package deal mentioned above made everlasting or prolonged many power and power effectivity tax provisions, it didn’t embody some provisions which were lengthy sought by stakeholders, together with the choice of direct funds in lieu of tax breaks. One other provision that might be pursued is a rise within the present per-manufacturer cap for the all-electric and plug-in hybrid automobile tax credit score. There’s some extent of bipartisan help for this enhance.

Infrastructure

Though “infrastructure week” has turn out to be a little bit of an inside joke in Washington after many failed makes an attempt to move an infrastructure measure, the incoming administration is anticipated to make a robust push for an enormous infrastructure invoice as part of financial restoration and that invoice, seemingly paired with the floor transportation reauthorization, will probably embody grid modernization clear power measures, and electrical autos.

Rules

Following the late push by the Trump Administration to additional the president’s regulatory agenda, the GA run-off victories make it more likely that we are going to see the usage of the Congressional Overview Act (CRA) to undo lots of the rules accredited over the last 60 congressional days. To cancel a rule, the CRA requires only a easy majority vote of each the Senate and the Home of Representatives, and the settlement of the sitting President.