LPDD Newsletter: October 2021
New LPDD Model Laws
Since the last newsletter update, the LPDD team has published five new original model laws and legal resources, including three resources particularly addressing nitrous oxide emissions. They are listed below:
- LPDD Model State Electric Bike Rebates Legislation: This model legislation would establish a rebate program for the purchase of new or used E Bikes from participating dealers, with an enhanced rebate for lower-income households. Since E Bikes are orders of magnitude less expensive than other types of alternative fuel vehicles, government subsidies aimed at promoting the sale of E Bikes could achieve GHG reductions at a relatively modest cost, because in the short term E Bike trips can take the place of gas-powered automobile trips . Under this legislation, purchasers of E Bikes would receive a rebate from the State in an amount set by the legislature. As drafted, the bill would provide a different and more generous “enhanced rebate” for “Qualified Residents” of the state, defined as those residents whose household income is less than 300 percent of the federal poverty guidelines.
LPDD Model State Demand Charges Legislation: In many jurisdictions, the current rate structure for electrical service discourages the development of high-performing DC fast chargers for electric vehicles. “Demand charges” attempt to account for the cost of meeting peak demand by keying a portion of the customer bill to the maximum amount of electricity used in any given 15 minute (or one hour) period during the billing cycle. These charges can render high performing DC fast charging unprofitable, as they tend to draw their power in relatively brief bursts. This model law would address this issue. Under the model law, each regulated electric company would be required to submit to the PUC a proposed tariff designed to facilitate DC fast charging for EVs. The submission would be required to evaluate the costs and benefits of alternative rate designs under multiple scenarios of EV adoption. The PUC would be required to provide notice and the opportunity for public comment, and thereafter approve, modify or reject the proposal.
LPDD Analysis on the Climate Action Reserve's Nitrogen Management Protocol: Emissions of nitrous oxide are a significant source of GHG pollution in the United States, amounting to approximately 5 percent of total U.S. GHG emissions on an annual basis. Agricultural soil management as a source category accounts for nearly three quarters of those emissions. California's Climate Action Reserve (CAR) broadly accounts for emission reductions associated with implementation of cropland nitrogen management best practices across a wide range of crops and geographies. States seeking to provide offset credit for reductions in nitrous oxide emissions through improved agricultural management practices would be well-served by incorporating the CAR Protocol itself into state law, either directly or by reference, similar to the manner in which California has adopted some of CAR’s other protocols and/or recognized offset credits issued pursuant thereto within the context of its Cap-and-Trade Regulation. This memorandum provides legal background and tools to better facilitate that process for state and regional policymakers.
LPDD Model Regulation on Controlling N2O Emissions from Large Commercial Farms: This model regulation, implementable at either the federal or the state level, is designed to control emissions of nitrous oxide from large commercial crop farms to reduce impacts of nitrous oxide pollution to the stratospheric ozone layer. The regulation establishes a program that requires development and implementation of farm-specific nitrogen management plans, prepared based on field and crop specific conditions by a certified nitrogen management planner. Plans must include nitrogen application rate targets calculated at the field and crop level, accounting for application of best management practices and cover crops. The program includes training and continuing education elements for planners, along with recordkeeping and reporting requirements for commercial farms. This plan-based regulatory framework has analogous precedent at the state and federal level and provides an appropriate structure to drive significant nitrous oxide emission reductions at commercial farms while providing maximum flexibility to farmers. It is designed for adoption by EPA under section 615 of the Clean Air Act. Alternatively, with minor modifications, the regulation can be adopted as a statute or regulation at the state or federal level.
LPDD Model Healthy Soils Bill for Establishing Nitrous Oxide Management Standards. Nitrous oxide emissions are particularly well-suited to sub-national management standards at the state level. This model legislation establishes a framework for state-level implementation vs. local-level implementation, in light of the wide variety of approaches states take to home rule and municipal authority, and is derived primarily from provisions of New Mexico’s Healthy Soil Act. The management standards are designed to encourage scientifically based strategies and best practices that promote sound environmental stewardship and efficient agricultural production. Scientists and conservationists already know the kinds of agricultural and livestock practices that are effective in reducing nitrous oxide emissions, which tend to focus on optimizing fertilizer use and manure consumption. The model legislation does not treat any one type of implementation technique as the preferred tool for reducing nitrous oxide. Instead, it takes a comprehensive approach by describing a variety of techniques individual states can choose from.
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:
- Illinois' Climate and Equitable Jobs Act: In September, Illinois enacted a sweeping climate and energy bill touching on myriad programs affecting electricity, transportation, a just transition, and financing. The law raises the state's renewable portfolio standard to require 40 percent renewable energy by 2030 and 50 percent by 2040, with the goal of a zero-carbon electricity sector by 2045 — and beyond that, a net-zero-carbon state economy by 2050. Subsidies to renewable energy will roughly double to around $580 million per year. The state will offer new funding for electric vehicle infrastructure and rebates. Two new workforce programs will be established addressing underserved communities and displaced workers. Beyond this, many more provisions than can be summarized in this newsletter are detailed in the 900-page law.
North Carolina's 2030 Electric Sector Emissions Target: In October 2021, the North Carolina legislature passed H.951, which set the state’s first targets for cutting electricity-sector carbon emissions, with a goal to bring emissions down 70 percent below 2005 levels by 2030. The legislation will require the North Carolina Utilities Commission to develop a plan by the end of 2022 to meet the emissions-reduction standard and prioritize the lowest-cost options when determining what mix of resources Duke Energy, the state's large utility, might be allowed to build to meet those goals. This puts the North Carolina Utilities Commission in charge of assessing the relative cost and reliability of the mix of resources Duke may propose to replace the roughly 6.7 gigawatts of coal-fired power plants it operates in North Carolina.
Vermont Considers Energy Storage Integration Rules. In June, Vermont enacted Act 54, directing the Public Utility Commission to develop rules governing energy storage integration. In September, Vermont's PUC launched a new proceeding, which will consider how to simplify the siting process for storage, enable aggregations and interplay between owners, operators, and utilities, how energy storage can help shift renewables to cover peak times, and how the benefits of energy storage can be shared equitably with disadvantaged communities.
Delaware Law Expanding Community Renewables: Of interest to advocates for community renewables, regarding how projects are qualified, Delaware recently passed legislation expanding the state's community solar program. SB 2 allows for multiple types of ownership models to exist and compete; increases the maximum size of these systems to 4 megawatts; eliminates the requirement that all customers of a system must be located on the same distribution feeder; eliminates the requirement that all customers of a system must be identified before the system can be built; provides compensation to the system owner for 10% or less of unsubscribed energy; requires each system owner to certify that it serves at least 15% low income customers; and more.
California's Autonomous EV Mandate: This bill requires, beginning January 1, 2030, an autonomous vehicle operating on a public road in California to be a zero-emission vehicle. It was signed into law in September 2021. By confronting this emerging industry early, California helps assure a fossil-powered autonomous vehicle industry never becomes entrenched in the first place.
California Building Electrification Awards and Resources: In September, California enacted SB 68, which would require the California Energy Commission to publish guidance and best practices to help building owners, the construction industry, and local governments overcome barriers to electrification of buildings and installation of electric vehicle charging equipment. It also requires the Commission to spend moneys in the state's existing Electric Program Investment Charge (EPIC) program for projects that will benefit electricity ratepayers and lead to technological advancements to reduce the costs of building electrification.
Delaware Law Allowing State-Sponsored EV Charging Equipment: In September, the Delaware legislature adopted an Act permitting State agencies to install charging infrastructure at state-owned or state-leased properties used by state employees or visitors, paid for by fees on public or employee use of the supply equipment, as long as those fees do not exceed the agency’s costs.
LPDD Passes Fifty Model Law Milestone!
We're thrilled to announce that, with the publication of the model laws highlighted in this newsletter, our project has now published over 50 original model laws addressing the recommendations in the LPDD text. This milestone proves that lawyers across the country are eager to fight for climate action, and have found LPDD's recommendations key for framing the legal tools that different levels of government will need. A special thank you to all drafters and peer reviewers who contributed to this milestone! We look forward to the next fifty!
Upcoming Events
On Sunday, October 17th, at 1 PM PDT on Zoom, members of the LPDD team will meet with Congregation Beth Am from Los Altos Hills, CA. Our presentation will focus on legislative and policy strategies to reduce greenhouse gases, and is open to the entire community, including Beth Am members and anyone else who is interested in addressing climate change through legal and policy solutions. Our team will share progress in creating model and actual federal, state and local laws that legislatures can customize and adopt in order to achieve deep reductions in fossil fuel use and greenhouse gas emissions, and the opportunity for legal professionals and others to volunteer to help draft and promote model laws to promote decarbonization. You can register here.
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