Climate Policy News You Can Use — May 2023

Published: May 1, 2023 by Victoria Mills

Climate Policy Leadership

Happy Earth Month! Lots of updates in this May 2023 edition on the Inflation Reduction Act, developments in Congress and new EPA regulations on vehicles and power plants. Read on to learn where you can weigh in now.  

I. Inflation Reduction Act: new guidance, grant programs and resources

In an important milestone for clean transportation, the U.S. Treasury released proposed guidance on the Section 30d passenger vehicle tax credit, which addresses critical minerals and battery component requirements for companies in the EV supply chain. EPA also unveiled its implementation framework for the Greenhouse Gas Reduction Fund, which will provide $27 billion for clean energy projects in disadvantaged neighborhoods. EPA will begin accepting applications for the grant programs as early as June. Finally, the Department of Energy is accepting applications for its grant and loan programs to support clean energy R&D and pilot programs.

➢ Take Action:

  • File comments with Treasury by June 16th on the proposed guidance for new clean vehicle tax credits, urging their timely implementation.

➢ Go Deeper:  

 

II. Congress: clawback attempts continue; business voices needed on Farm Bill

Yesterday, the House passed a bill to raise the debt ceiling that would roll back major provisions of the Inflation Reduction Act including billions of dollars in clean energy tax credits. See EDF’s statement. And the Senate narrowly approved a Congressional Review Act resolution to overturn EPA’s final rule for more protective NOx standards for trucks, which are critical to protect communities from harmful air pollution. President Biden has promised to veto the measure if it reaches his desk. Both votes highlight the critical need for companies and investors to defend the policies that will help them reach their business and environmental goals.
 
Case in point: as Congress continues work on the Farm Bill, which expires September 30, 2023. Support from businesses in the food and agriculture sector will be critical to preserve incentives for climate-smart farming practices, including programs expanded by the Inflation Reduction Act. Key funding programs include the Environmental Quality Incentives Program, the Conservation Stewardship Program, the Regional Conservation Partnership Program and Rural Energy for America Program.

➢ Take Action:  

  • Thank your members of Congress who voted NO on the debt ceiling bill and NOx CRA; share your disappointment with those who voted for them. Stay tuned for a possible House vote on the NOx CRA, which could occur in the next few weeks. 
  • Ask your members of Congress to maintain mandatory funding levels for conservation programs during the appropriations process, and to protect new funding that the Inflation Reduction Act allocated to such programs last year. 

➢ Go Deeper:  

 

III. EPA: new rules on vehicles and power plants

April was a busy month for EPA, with new proposed emissions standards announced for vehicles and in the works for power plants. The proposed standards for light and medium-duty and heavy-duty vehicles are great news for companies that want to reduce their transportation-related emissions. With these new standards, EPA estimates that in 2032 about two-thirds of new cars and passenger trucks, and up to half of new urban delivery and freight vehicles sold in America will be zero-emitting. This rapid progress is achievable thanks to private-sector investment in EV manufacturing, federal incentives in the Inflation Reduction Act and state policies such as the Advanced Clean Trucks rule.
 
In parallel, EPA is taking action to ensure that the energy that powers our economy is clean. The new limits on power plant pollution – based on sections 111 (b) and 111(d) of the Clean Air Act – will be part of a suite of regulations to clean up the power sector, including the Mercury and Air Toxics Rule and  Good Neighbor Rule.

➢ Take Action:  

  • File comments by June 16th on the proposed rule for heavy-duty vehicles, urging EPA to finalize standards this year ensuring that half of such vehicles are zero-emitting in 2032. 
  • As soon as the proposed rule for light-duty vehicles is published in the federal register, file comments urging EPA to finalize standards this year ensuring at least half of new vehicles are zero-emitting in 2030 and at least two-thirds in 2032. 
  • File comments supporting the Mercury and Air Toxics rule by June 23rd and attend the virtual public hearing on May 9th. 
  • Watch for publication of the power plant pollution limits and opportunities to file comments. 

➢ Go Deeper:  

 

Last but not least: FERC and LEAD

The Federal Energy Regulatory Commission (FERC) is still seeking input on its proposal to establish a minimum level of transmission linkage between regions. This would benefit major energy users by enabling them to buy more renewable energy without being limited to their particular region. The deadline to file comments by May 15th.
 
FERC also needs a fifth Commissioner to enable rapid action on critical reforms to electricity transmission and interconnection. Urge the administration to nominate a fifth FERC Commissioner, and your members of Congress to confirm that person quickly.
 
Finally, please join the Lawmaker Education and Advocacy Days May 16-18th. Led by Ceres and supported by EDF and other NGOs, this year’s fly-in will call on the U.S. Congress and the Biden administration to invest in America and accelerate the just transition to an advanced, clean economy.  

 

Thanks for reading, and don’t hesitate to forward this newsletter to anyone you think might find it interesting.

Best,
Victoria