Speaking Sustainability

Key topics in Akin’s July 2024 Sustainability/ESG Policy and Regulatory Update include:

Key topics in Akin’s June 2024 Sustainability/ESG Policy and Regulatory Update include:

The Biden administration has issued a Joint Statement of Policy and New Principles for Responsible Participation in Voluntary Carbon Markets (VCMs) outlining the U.S. government’s strategy to promote high-integrity VCMs. The U.S. Department of the Treasury and Internal Revenue Service (IRS) have released proposed guidance on the Clean Electricity Production Credit and Clean Electricity Investment Credit, aiming to provide clarity to developers of clean electricity projects. Finally, the Biden administration launched the Federal-State Modern Grid Deployment Initiative to unite states, federal bodies and industry stakeholders to expedite grid modernization efforts to tackle the challenges and opportunities posed in the 21st century.

The Senate Energy and Natural Resources Committee held a hearing on Demand for Electric Power in the U.S., highlighting the growing challenges and opportunities related to artificial intelligence (AI), data centers, semiconductor manufacturing and energy. The leading utility trade association, Edison Electric Institute, is suing the Biden administration over its recent ruling mandating fossil fuel power plants to utilize carbon capture and storage. The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have issued further instructions regarding the domestic content bonus of the Inflation Reduction Act (IRA) to support American workers and businesses in their efforts to advance the clean energy economy.

The Federal Energy Regulatory Commission (FERC) issued a landmark rule instructing U.S. electricity grid operators to create new transmission infrastructure. The Department of Energy (DOE) released their initial 10 federal corridors for the development of multistate, ultra-high-capacity electric transmission lines. Special Presidential Envoy for Climate John Podesta and his Chinese counterpart Liu Zhenmin met in Washington to discuss efforts to cut methane pollution and promote clean energy, building on commitments the two nations made in November 2023. Meanwhile, the White House announced new tariffs to counter China’s influence in strategic sectors including manufacturing, technology, clean energy and related supply chains.

The Department of Energy (DOE) has issued final interpretive guidance to define the term “foreign entity of concern,” which will help to strengthen the development of domestic and friend-shored battery materials processing and manufacturing. The Department of the Treasury and the Internal Revenue Service (IRS) have also released final regulations regarding the clean vehicle provisions of the Inflation Reduction Act (IRA). Special Presidential Climate Envoy John Podesta is scheduled to meet his Chinese counterpart in May to discuss climate cooperation amidst growing U.S. trade policies aimed at countering China’s dominance in electric vehicles, renewable energy, battery production and critical mineral supply chains.

The Environmental Protection Agency (EPA) issued four major regulations regarding power plants while the Department of Energy (DOE) finalized a rule to expedite the permitting of transmission lines. In California, the first commercial fuel station for big-rick trucks is now in operation. Finally, Special Presidential Climate Envoy John Podesta will meet his Chinese counterpart in May to discuss climate cooperation.

On Earth Day, President Joe Biden touted clean energy investments in hopes of garnering support ahead of the 2024 election. At the state level, 24 attorneys general filed a motion with the U.S. Court of Appeals for the District of Columbia Circuit to pause the implementation of the Environmental Protection Agency’s (EPA) methane emissions regulations. Finally, the European Union’s (EU) demand for liquefied natural gas (LNG) is slated to peak this year.