LPDD Newsletter: April 2022 — Model Climate Laws Initiative

New LPDD Model Resources

Last week, the LPDD team published an Instruction Memorandum (IM) for geologic carbon sequestration on federal lands. This model document proposes an update to the Bureau of Land Management’s Instruction Memorandum on the same subject, which had been limited to information gathering and expired in 2013. The proposed language would expand the scope of the IM to include both CO2 geologic sequestration characterization (by permit) and implementation (by lease), and revise the IM to incorporate more recent policy direction. This model IM language could allow the Bureau of Land Management to immediately begin efforts to prioritize geologic carbon sequestration on some federal lands. This submission complements our previously published model law, State Legislation for the Geologic Storage of Carbon Dioxide, which offers suggestions for state legislation on carbon capture and storage to be applied to both public and private lands.

New External Resources

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

SEC New Proposed Climate Disclosure Rules: On March 21, the SEC proposed several climate-related disclosure rules, ranging from climate-risk evaluation to the impact of specific climate-related events on financial statements. Disclosure would include physical risks (e.g., impact from extreme weather events, sea-level rise and drought) and transition risks (i.e., the risks associated with a transition to a less carbon-intensive economy); the issuer's process for identifying, assessing, and managing climate-related risks; and, if applicable, any of the issuer's climate-related targets and goals. Issuers would also have to disclose their GHG emissions, including, for some issuers, the GHG emissions associated with their suppliers and consumers, as well. The proposed rules will remain open for comment until May 20, and the SEC has indicated that they would like to move towards swift adoption, providing a hypothetical compliance date of fiscal year 2023.
Massachusetts Senate Unveils Climate Bill: In March, the Massachusetts Senate unveiled a sweeping climate bill aimed at helping the state meet its net-zero greenhouse gas emissions goal by 2050, which had been previously adopted in 2021's Act Creating a Next-Generation Roadmap for Massachusetts Climate Policy. The bill sets out a range of strategies, from lending support to emerging energy technologies (including nuclear fusion, networked geothermal, and deep geothermal energy), to allowing agricultural and horticultural land to be used to locate solar panels. The bill would also increase by $1,000 — to $3,500 — the rebate for qualifying purchases and leases of zero-emission passenger cars and light-duty trucks costing $50,000 or less, while offering another $1,000 for buyers who are trading in an internal combustion vehicle.
Maryland's Proposed Climate Solutions Now Act: In March, both houses of the Maryland legislature passed the Climate Solutions Now Act, which calls for Maryland to reduce GHG emissions by 60% (compared to a 2006 baseline) by 2031 and for the Maryland economy to reach net-zero emissions by 2045. The Act would also expand the state’s electrical vehicle fleet; direct millions of dollars to school systems to build net-zero schools; establish a “green bank” that would invest state funds into private projects that reduce emissions; and require regulators to “study and make recommendations on the electrification of buildings in the state” by the end of 2023, among other provisions. As of the time of this writing, the bill is awaiting the governor's signature.
IREC Toolkit on Interconnecting Solar and Storage: In March, the Interstate Renewable Energy Council (IREC) published its BATRIES Toolkit, which provides solutions to eight regulatory and technical barriers to the interconnection of solar-plus-storage systems to the distribution grid. These recommendations are based on over a year of research and analysis by IREC's utility and industry experts. The Toolkit also includes model language that utility regulators can use to update state interconnection rules to reduce the costs and time to safely interconnect energy storage and solar-plus-storage systems. The solutions are nationally applicable and can be applied in diverse states and markets across the U.S.
Connecticut Launches New Pilot Program Designed for Fast Results: In March, Connecticut regulators approved a new Innovative Energy Solutions (IES) program, designed to accelerate the state's grid modernization efforts by facilitating partnerships among private companies, the state's electric utilities and other stakeholders. The IES will consider "innovative pilot programs, technologies, products, and services" that could be deployed on a limited basis, evaluated and potentially scaled up. The initiative is expected to launch in January 2023. The program will set up innovation cycles to enable rapid collaboration between private industry and utilities, to test pilots quickly, "fail fast," and then make a decision on whether to go forward with a broader rollout.
States Direct Efficiency Funding to Low-Income Residents: In April, both houses of the Maryland legislature passed legislation that would steer energy efficiency funding towards low-income residents. The existing EmPOWER Maryland program requires investments in efficiency upgrades for businesses and homes, but the program largely benefits upper- and middle-class residents in practice. SB 524 (2022) would require the state to provide funding to achieve 1 percent annual energy savings for low-income households by 2026. This funding is projected to lower energy bills for 32,000 low-income households each year and lower energy bills for all 450,000 low-income Marylanders over the next 13 years. As of this writing, the legislation is awaiting the governor's signature. And in February, New Mexico also enacted a law that creates a grant program to implement energy efficiency measures in low-income households. HB 037 authorizes a county, municipality, Indian nation, tribe, pueblo, or the New Mexico Mortgage Finance Authority to apply for the grant for energy efficiency projects for underserved communities. It also authorizes utility rate preferences for low-income customers.
Washington's All-EV 2030 Target: In March, Washington State enacted a bill requiring a planning process aiming to prohibit the sale or registration of gas-powered vehicles in the state by 2030, the fastest such target in the nation. The legislation establishes an interagency council tasked with creating a plan for achieving the 2030 target.
Duke Files for New EV Charging Pilot: As states continue considering new rate designs to incorporate EVs and EV infrastructure at scale, Duke Energy in North Carolina recently proposed new pilot programs to test a subscription and active management model. The pilot would allow EV drivers to pay a monthly subscription fee for EV charging and enable Duke Energy to actively manage EV charging loads, combining a subscription model with the opportunity to centrally manage and use EVs as a grid resource. Participants would pay between $20 and $25 per month. The pilots would target 200 households and last for twelve months.
Virginia Bill on Natural Gas Alternatives: In April, both houses of the Virginia legislature passed legislation that allows natural gas utilities to include in their fuel portfolios supplemental or substitute forms of gas sources -- defined as biogas, low-emissions natural gas, and hydrogen -- that meet pipeline quality gas standards and reduce greenhouse gas emissions intensity. It also allows pipeline leak repair projects to be eligible for cost recovery. Natural gas utilities using cost of service methodology or performance based regulation plans are eligible to file biogas supply investment plans, procuring biogas up to 15% of the utility's annual volume of sales, and this bill details what a utility must include in any proposal. As of the time of this writing, the legislation is awaiting the governor's signature.

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This update highlights and summarizes recent additions to the Legal Pathways to Deep Decarbonization (LPDD) website, which houses actual and model laws addressing the causes of climate change in the United States.

The Legal Pathways to Deep Decarbonization Model Law Project (LPDD-MLP) is a pro bono effort to draft model laws for use by legislators at the federal, state and local levels to support their efforts to achieve deep reductions in fossil fuel use and greenhouse gas emissions. The project is based on recommendations from the groundbreaking book Legal Pathways to Deep Decarbonization in the United States (Michael Gerrard and John C. Dernbach, eds., 2019). The work is supported by Columbia University's Sabin Center for Climate Change Law and Widener University Commonwealth Law School’s Environmental Law and Sustainability Center. Dozens of law firms and individual lawyers are contributing to this pro-bono effort as drafters, peer reviewers or in reaching out to policymakers.

Our website, modelclimatelaws.org, contains over 50 model laws that are a starting place for discussion and collaboration among elected officials, non-profit groups, and the private sector for enabling the U.S. to address climate change by reducing U.S. GHG emissions to zero by 2050 or earlier. The site includes several Top 10 lists for some of the key categories, like electric vehicles, PUC’s, buildings and other topics as a short-hand introduction. In addition, the site references hundreds of other actions that states and other governmental bodies have taken to move towards decarbonization more rapidly. By providing policymakers the tools to achieve deep decarbonization, the Project will help achieve a restructuring of the energy economy, thus alleviating the worst effects of climate change, which are disproportionately suffered by marginalized communities, while providing such positive benefits as economic security, social equity, and environmental justice (EJ).

Please contact us to talk about getting involved in drafting and peer reviewing legislation, to provide suggestions and feedback on the drafts and to talk about how we can help you support your climate change efforts.