Biden administration races to cement climate gains
The Biden administration is sprinting to finalize the unfinished pieces of its climate policy, from fully disbursing Inflation Reduction Act (IRA) funds to getting final regulations out the door.
The incoming Trump administration is all but certain to roll back numerous Biden actions, but getting money disbursed can make at least some of Biden’s policies permanent.
In a memo made public this week, White House chief of staff Jeff Zients called on employees to “sprint to the finish line and get as much done as possible for the American people.”
He said that while the administration has already awarded 98 percent of the funds it could legally spend through October under several of Biden’s signature laws, the president “has directed us to keep up this pace and obligate as much funding as possible before the end of the term.”
“Expect more action on high-speed internet funds to states, CHIPS incentives funding, IRA funding, and more,” he wrote, referring to the Inflation Reduction Act, which included historic investments to combat climate change.
Former President Trump has denied the well-established science behind climate change, downplayed its impacts and indicated that he would try to reverse a broad suite of actions taken by Biden that seek to mitigate the problem.
Republicans have indicated that they would seek to claw back or redirect any unspent funds, especially from the IRA, so the White House’s allies see getting those dollars out the door as imperative.
In a letter last week, Sen. Ed Markey (D-Mass.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) called on the administration to ensure the IRA and Bipartisan Infrastructure Law’s climate funds are paid out ahead of Trump’s inauguration.
“To avoid future politicization or manipulation of climate programs, we ask that your agencies move expeditiously to disburse key climate and clean energy programs,” at the White House and various agencies.
Speaking to The Hill last week, Rep. Pramila Jayapal (D-Wash.), who signed the letter, said the administration has since assuaged some of her concerns on the matter.
“I just spoke to the White House about it, and my understanding is that 90 percent [of funds] are already disbursed,” Jayapal said. “And so that's very good. And so our hope is to get that last little bit out. And even if it can't get disbursed, if it's at least committed, that also makes it easy. So it's, it's really, it really is that last little bit, and we're feeling hopeful that it'll happen.”
In another down-to-the-wire process, the Treasury Department this week finalized rules for investment tax credits under the IRA that are more favorable to the biogas industry, following lobbying from both trade groups and members like Rep. Hillary Scholten (D-Mich.). However, without an extension, the rules still require eligible taxpayers to begin construction on such projects by the end of the calendar year.
“We’re in the fourth quarter … the people who are really intended to benefit from it are going to have very limited time,” Scholten told The Hill.
Another office that has made headlines recently for handing out climate money is the Energy Department’s Loans Program Office.
This office recently announced conditional awards of $6.6 billion to electric vehicle company Rivian for a plant in Georgia, as well as a conditional $7.5 billion to a Stellantis and Samsung venture for two electric vehicle battery plants. Following the election, that office also announced a $4.9 billion tentative loan for a major power line that it said would help get renewables connected to the nation’s electric grid.
These loans, however, are not the only unfinished loan deals. As of Monday, the agency had a total of 19 conditional loan commitments, worth $41.29 billion, still open.
Jigur Shah, director of the LPO, said at a roundtable last week with loan recipients that “I don't think anything has changed based on what we were doing in the past” as far as disbursement.
But he indicated that industry may feel an urge to secure their loans in the wake of the election, adding, “I do think borrowers are more motivated to shorten timelines … which we're happy to respond to.”
However, there are some anticipated climate moves that the Biden administration hasn’t yet made.
For one, it has to decide whether to approve California’s effort to phase out new sales of gas-powered cars in the state after 2035. The rule has major implications, as several other states have adopted California’s rule.
A person familiar with the matter told The Washington Post last month that the EPA plans to approve California’s ban on gas car sales. The move is likely to ultimately be undone by Trump, but unraveling it, like other Biden actions, could take time.
Another item that’s still outstanding but could be finalized in the coming weeks is the Treasury Department’s guideline for determining who is eligible for hydrogen energy tax credits under the IRA.
Environmental advocates have warned of “massive emissions ramifications” of how this credit is awarded — saying that because hydrogen is so power hungry, it needs to be paired with another power source to actually have climate benefits.
Meanwhile, the Energy Department is expected to soon issue a study on the climate and other impacts of natural gas exports, which could put information in the record that differs from the agenda of the next administration.
However, some climate advocates are calling on the administration to go even further and outright reject proposed gas export facilities.
“We’re hoping they reject LNG terminal permits,” said Lena Moffitt, executive director of climate advocacy group Evergreen. “That would send a huge signal to the young people who want Biden to protect his climate legacy and it would do so.”