LPDD Newsletter: April 2021 — Model Climate Laws Initiative

Upcoming Events

Join us this Wednesday, April 14, from 12:00 to 1:00 EST for a webinar with the Law Firm Sustainability Network. Registration is open here. Our team will be discussing how lawyers are working to prepare model laws to implement the recommendations in the text, Legal Pathways to Deep Decarbonization in the United States. Join us to explore opportunities for pro bono work addressing climate change - through drafting or peer reviewing model laws, or assisting in reaching out to policymakers.

Check Out Our Video

With the help of our friends at Climate Nexus, we've put together a short video highlighting the LPDD project, and encouraging more lawyers to get involved helping us draft the laws that will shape America's carbon transition. You can check it out at our homepage or on Youtube, and please share!

New Model Laws from the LPDD Team

Since the last monthly update, the LPDD team has published two new model laws, both of which will help states build out the EV charging infrastructure necessary to support a robust EV transportation network.

Model State EV Charging Station Tax Credits Law: This model law would establish a credit against state income tax and further incentivize the development of EV charging infrastructure in the state. The model law provides for different levels of tax credits, as follows: (i) up to a 20% credit for the cost of the purchase and installation of new electric vehicle charging equipment that is at least a “Level 2” charger, without restriction on use or location; (ii) up to a 30% credit for the cost of the purchase and installation of new electric vehicle charging equipment charging equipment that is at least a “Level 2” charger and is made available to the public; and (iii) up to a 35% credit for the cost of the purchase and installation of new electric vehicle charging equipment that is at least a “Level 2” charger, and is made available to the public and located along a critical travel corridor designated by the tax administrator in consultation with the state’s transportation commissioner. (The credit amounts set forth in the model law are suggestions only, and would be at the discretion of state legislatures.)
Model State EV Charging Station Rebates Law: This model state law provides rebates to subsidize the installation of publicly accessible electric vehicle charging equipment. Under the law, the state would provide a one-time payment for the cost of the purchase and installation of electric vehicle charging equipment that is: (i) readily accessible to the public, and (ii) provides at least “Level 2” charging. The amount of the rebates (and the overall limit for state expenditures under the program) would be at the discretion of the legislature. However, the model law is drafted to create a two-tier structure whereby a higher rebate would be issued for the purchase and installation costs of equipment installed at a location where none had previously existed, or for additional equipment at an existing charging location; and (ii) a lesser rebate would be provided for installing upgraded equipment to replace equipment previously installed at a given location.

Highlighted New External Resources

modelclimatelaws.org is being continually updated with new, external legal resources. Below is a brief selection of recently added resources of special interest.

Rhode Island's Act on Climate: On Saturday, Rhode Island's Governor signed legislation making Rhode Island the ninth state to require comprehensive GHG neutrality by 2050. The eight-page H5445A requires the state to develop a plan to reduce all climate emissions from transportation, buildings/heating & electricity used economywide in the state to 10% below 1990 levels in 2021, 45% by 2030, 80% by 2040, and net-zero by 2050. The bill empowers the state's Executive Climate Change Coordinating Council to draft plans to hit the bill's goals. Significantly, H5445A creates a citizen suit cause of action against the government if it fails to meet its GHG reduction targets.
**Virginia's Recent Transportation Legislation:**With the signing of **HB1965**in March, Virginia took a step towards integrating low-emissions vehicles (LEV) and zero-emissions vehicles (ZEV) into its emissions regulations. This bill created Virginia's Advanced Clean Cars Program, expanding the powers and duties of the State Air Pollution Control Board relating to LEVs and ZEVs, in effect giving the board the power to adopt and enforce any model year standards relating to the control of emissions from new motor vehicles or new motor vehicle engines. The board must also publicize final regulations for an Advanced Clean Cars Program that includes a LEV and ZEV program. These programs shall be applicable to motor vehicles beginning with the 2025 model year or the first model year when the adoption of these standards becomes practical .... Also in March, Virginia approved HB2282, requiring the State Corporation Commission to develop a statewide Transportation Electrification plan, in coordination with utilities and stakeholders. The legislation requires the Commission to consider access and equity concerns, utility efforts to expand charging infrastructure, rate design, the integration of renewables into the grid, and more. The Commission's plan will be due in May, 2022.
Utah's Tax Incentives for Hydrogen Production: In March, Utah expanded its tax incentives for Alternative Energy to include hydrogen production facilities entering into service after Jan. 1, 2022. HB0223 provides that a taxpayer may claim a refundable tax credit of 12 cents per kg of hydrogen produced during the first two years of production, with an annual cap at 5,600 metric tons per year, for any hydrogen production system starting next year. The taxpayer must sell the hydrogen produced from the system as a commercial enterprise, and may not claim additional electricity or hydrogen-related tax credits. The same tax credit applies to nonrenewable hydrogen.
Massachusetts Climate Bill Finally Signed: As we've noted before in this newsletter, Massachusetts has been working towards a comprehensive climate bill, which suffered a setback in January with the Governor's veto. In March, the Governor finally signed a substantially similar version of the bill after it passed again by veto-proof majorities. Both versions are available in our database.
New Mexico Methane Venting and Flaring Rules: In March 2020, New Mexico's Oil Conservation Commission banned routine venting and flaring of methane from oil and gas production facilities. The first phase of implementation will include data collection and reporting to identify natural gas losses at every stage of the process. Once this information is in hand, regulators will then require operators — from those that manage pipelines to stripper wells and other infrastructure — to capture more gas each year. The target will be capturing 98% of all natural gas waste by the end of 2026. If operators fail to meet the state’s targets, regulators can deny drilling permits. The rule as approved defines the release of natural gas through venting or its burning via flaring as waste and requires operators to not vent or flare gas unless in an emergency or equipment malfunction.
New Mexico Community Solar Act. In March, New Mexico passed SB84, the Community Solar Act. Under this program, community solar projects will have a nameplate rating of less than 5 MW, have at least 10 subscribers, any one of whom cannot subscribe to over 40% of the generating capacity of the facility or to more than 120% of their average annual electricity consumption, make at least 40% of the total generating capacity available in subscriptions of 25 kW or less, and be located in the service territory of a qualifying utility and be interconnected to that utility’s distribution system. The Act requires the Public Regulation Commission to promulgate further program rules by November of this year, and establishes a 100 MW cap on the program until 2024, at which point a new cap will be determined.
ACEEE report, Siting Electric Vehicle Supply Equipment with Equity in Mind: This April 2021 report from ACEEE analyzes the extent to which states and utilities are including equity in their electric vehicle supping equipment siting efforts, and offers considerations to help ensure the benefits of transportation electrification reach all communities. It argues that states and utility commissions should direct utilities to include the needs of underserved communities in their electrification planning and dedicate funding to these communities if they are not already doing so. These communities need direct investment to take advantage of the benefits from the expected expansion in EVs over the next decade or two. The report argues that there should also be statewide metrics for success and criteria for eligibility, recognizing that equity is multifaceted and involves considerations of socioeconomic status, race, and more.
EDF/RFF Report, Enabling Fairness for Energy Workers and Communities in Transition: A March 2021 report from the Environmental Defense Fund and Resources for the Future compiles findings from a series of reports that unpack existing US and European policies related to just transition. To help policymakers identify the components of a comprehensive just transition policy package in the United States, the report groups more than 100 policies into four primary categories, as well as four crosscutting policy areas. Together, these policy mechanisms address the major challenges associated with energy transition and are likely help facilitate a just transition.