Major holes found in renewable energy bill

By Knight Ridder Tribune


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Environmentalist groups have pushed for years for a state policy that requires utilities to develop renewable energy and efficiency programs. But many of those groups are fighting a bill in the General Assembly that includes their long-sought goal.

The legislation requires that 12.5 percent of the electricity sold by utilities such as Progress Energy and Duke Energy come from renewable sources and efficiency programs. The measure overwhelmingly passed in the state Senate, but it has bogged down in the House. As opposition increases, state lawmakers spent days scrambling to salvage the bill. Among the concerns:

- Alternative fuels could pollute more than coal-burning power plants.

- There could be an increase in hog waste lagoons, because the bill encourages utilities to buy electricity generated from methane gas in the lagoons.

- Electric utilities could skimp on efficiency programs and renewables and build large power plants instead.

None of these consequences are spelled out in the bill, but they have emerged as issues in recent weeks as lawmakers and activists parsed the proposal.

"Do we want to pursue an energy strategy that's dirtier than coal?" asked Rep. Pricey Harrison, a Guilford County Democrat who leads the committee. "This is incredibly complex, and I don't think any one of us understands all the implications of this bill."

Lobbyists, lawyers and legislative staff spent six months crafting the bill in the Senate.

It started as a renewables and efficiency proposal and grew into a comprehensive energy policy. Scores of participants attended the negotiations, but only five major environmental organizations did. The legislation that emerged from the talks included sweeteners for many interest groups. The environmentalists won concessions: They were able to raise the minimum requirement from renewables and efficiency from 10 percent to 12.5 percent. And utilities agreed to drop opposition to linking their power grids to industrial-scale solar power units. But some say the utilities won the biggest prize: a provision to pass some of the costs of new power plants to customers years before the plants are built.

The state's two Fortune 500 utilities are among the proposal's biggest backers. They say this provision will lower financing costs and save customers money. Opposition grew significantly this month as the bill started being reviewed by the House energy committee. A dozen environmental groups got involved for the first time, and they didn't like what they saw. Groups such as the Sierra Club that considered the bill flawed all along continued seeking an opening to make revisions. Still, several environmental groups that negotiated the bill stand by it. They say the benefits far outweigh the disadvantages, and that the bill's drawbacks are overblown.

The bill contains a new state tax credit for energy efficient homes and a renewable tax break for nonprofit groups, said Ivan Urlaub, executive director of N.C. Sustainable Energy Association. "We've got buy-in from every major stakeholder except for this number of environmental organizations," Urlaub said. "We see an insane amount of opportunity to rapidly move our utilities toward good climate-change solutions. This is just a first step to ean ourselves off our total dependence on coal and nuclear." Less than 2 percent of the state's electricity comes from renewables and efficiency programs.

The proposal would raise the minimum to 12.5 percent for Raleigh-based Progress and Charlotte-based Duke by 2021, and to 10 percent for municipal utilities and electric cooperatives by 2018. But many environmentalists are frustrated that the proposal includes no penalty for utilities that fail to meet the minimum requirements. At the same time, the bill caps how much utilities can spend on renewables and efficiency. About two dozen states h ve requirements for renewables and efficiency, and many include penalties, said Molly Diggins, North Carolina director for the Sierra Club. Possible changes Harrison said her committee will likely consider a proposal that could require utilities to go beyond the 12.5 percent minimum requirement before they are permitted to build new power plants.

Renewables also are getting scrutiny. An engineer from the state's Department of Environment and Natural Resources' Division of Air Quality told the energy committee that solar energy is too expensive for wide-scale deployment and wind powe too controversial in the mountains. The agency said that power plants fueled by wood waste generate more pollution than modern coal-burning power plants. As a result, the committee is likely to consider tightening emission standards for power plants fueled by wood and animal waste, a move that could raise the cost of those fuels considerably.

Despite the last-minute push by environmentalists, the utilities say the bill is sound. "We are confident that the consensus bill will withstand the scrutiny of the legislative process," said Progress Energy spokesman David McNeill. But Jim Warren, director of Durham-based N.C. Waste Awareness and Reduction Network, called it deeply flawed.

"We feel there's a hundred lawsuits in that bill," Warren said. "It needs to be overhauled or it needs to be killed."

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Gas-electric hybrid vehicles get a boost in the US from Ford, others

U.S. Hybrid Vehicle Sales Outlook highlights rising hybrid demand as an EV bridge, driven by emissions rules, range anxiety, charging infrastructure gaps, and automaker strategies from Ford, Toyota, and Stellantis across U.S. markets.

 

Key Points

Forecast of U.S. hybrid sales shaped by EV adoption, emissions rules, charging access, and automaker strategies.

✅ S&P sees hybrids at 24% of U.S. sales by 2028

✅ Bridges ICE to EV amid range and charging concerns

✅ Ford, Toyota, Stellantis expand U.S. hybrid lineups

 

Hybrid gasoline-electric vehicles may not be dying as fast as some predicted in the auto sector’s rush to develop all-electric models.

Ford Motor is the latest of several top automakers, including Toyota and Stellantis, planning to build and sell hundreds of thousands of hybrid vehicles in the U.S. over the next five years, industry forecasters told Reuters.

The companies are pitching hybrids as an alternative for retail and commercial customers who are seeking more sustainable transportation, but may not be ready to make the leap to a full electric vehicle.

"Hybrids really serve a lot of America," said Tim Ghriskey, senior portfolio strategist at New York-based investment manager Ingalls & Snyder. "Hybrid is a great alternative to a pure electric vehicle (and) it's an easier sell to a lot of customers."

Interest in hybrids is rebounding as consumer demand for pure electrics has not accelerated as quickly as expected, with EV market share dipping in Q1 2024 according to some analyses. Surveys cite a variety of reasons for tepid EV demand, from high initial cost and concerns about range to lengthy charging times and a shortage of public charging infrastructure in many regions.

“With the tightening of emissions requirements, hybrids provide a cleaner fleet without requiring buyers to take the leap into pure electrics,” said Sam Fiorani, vice president at AutoForecast Solutions.

S&P Global Mobility estimates hybrids will more than triple over the next five years, accounting for 24% of U.S. new vehicle sales in 2028. Sales of pure electrics will claim about 37%, supported by strong U.S. EV sales into 2024 momentum, leaving combustion vehicles — including so-called “mild” hybrids — with a nearly 40% share.

S&P estimates hybrids will account for just 7% of U.S. sales this year, and pure electrics 9%, underscoring that EV sales still lag gas cars as internal combustion engine (ICE) vehicles take more than 80%.

Historically, hybrids have accounted for less than 10% of total U.S. sales, with Toyota’s long-running Prius among the most popular models. The Japanese automaker has consistently said hybrids will play a key role in the company's long-range electrification plans as it slowly ramps up investment in pure EVs.

Ford is the latest to roll out more aggressive hybrid plans. On its second-quarter earnings call in late July, Chief Executive Jim Farley surprised analysts, saying Ford expects to quadruple its hybrid sales over the next five years after earlier promising an aggressive push into all-electric vehicles.

“This transition to EVs will be dynamic,” Farley told analysts. “We expect the EV market to remain volatile until the winners and losers shake out.”

Among Ford’s competitors, General Motors appears to have little interest in hybrids in the U.S., while Stellantis will follow Toyota and Ford’s hedge by offering U.S. buyers a choice of different powertrains, including hybrids, until sales of pure electric vehicles start to take off after mid-decade, a potential EV inflection point according to forecaster GlobalData.

In a statement, GM said it, echoing leadership's view that EVs won't go mainstream until key issues are addressed, "continues to be committed to its all-electric future ... While we will have hybrid vehicles in our global fleet, our focus remains on transitioning our portfolio to electric by 2030.”

Stellantis said hybrids now account for 36% of Jeep Wrangler sales and 19% of Chrysler Pacifica sales. In addition to new pure electric models coming soon, "we are very bullish on hybrids going forward," a spokesperson said.

This year, manufacturers are marketing more than 60 hybrids in the U.S. Toyota and its premium Lexus brand are selling at least 18 different hybrid models, enabling the Japanese automaker to maintain its stranglehold on the sector.

Hyundai and sister brand Kia offer seven hybrid models, with Ford and Lincoln six. Stellantis offers just three, and GM’s sole entry, due out later this year, is a hybrid version of the Chevrolet Corvette sports car.

But hybrids remain in short supply at many U.S. dealerships.

Andrew DiFeo, dealer principal at Hyundai of St. Augustine, south of Jacksonville, FL, doesn't see EV adoption hitting the levels the Biden administration wants until EV charging networks are as ubiquitous as gas stations.

"Hybrids are a great bridge to whatever the future holds,” said DiFeo, adding, “I've got zero in stock (and) I've got customers that want all of them."

 

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California's solar energy gains go up in wildfire smoke

California Wildfire Smoke Impact on Solar reduces photovoltaic output, as particulate pollution, soot, and haze dim sunlight and foul panels, cutting utility-scale generation and grid reliability across CAISO during peak demand and heatwaves.

 

Key Points

How smoke and soot cut solar irradiance and foul panels, slashing PV generation and straining CAISO grid operations.

✅ Smoke blocks sunlight; soot deposition reduces panel efficiency.

✅ CAISO reported ~30% drop versus July during peak smoke.

✅ Longer fire seasons threaten solar reliability and capacity planning.

 

Smoke from California’s unprecedented wildfires was so bad that it cut a significant chunk of solar power production in the state, even as U.S. solar generation rose in 2022 nationwide. Solar power generation dropped off by nearly a third in early September as wildfires darkened the skies with smoke, according to the US Energy Information Administration.

Those fires create thick smoke, laden with particles that block sunlight both when they’re in the air and when they settle onto solar panels. In the first two weeks of September, soot and smoke caused solar-powered electricity generation to fall 30 percent compared to the July average, according to the California Independent System Operator (CAISO), which oversees nearly all utility-scale solar energy in California, where wind and solar curtailments have been rising amid grid constraints. It was a 13.4 percent decrease from the same period last year, even though solar capacity in the state has grown about 5 percent since September 2019.

California depends on solar installations for nearly 20 percent of its electricity generation, and has more solar capacity than the next five US states trailing it combined as it works to manage its solar boom sustainably. It will need even more renewable power to meet its goal of 100 percent clean electricity generation by 2045, building on a recent near-100% renewable milestone that underscored the transition. The state’s emphasis on solar power is part of its long-term efforts to avoid more devastating effects of climate change. But in the short term, California’s renewables are already grappling with rising temperatures.

Two records were smashed early this September that contributed to the loss of solar power. California surpassed 2 million acres burned in a single fire season for the first time (1.7 million more acres have burned since then). And on September 15th, small particle pollution reached the highest levels recorded since 2000, according to the California Air Resources Board. Winds that stoked the flames also drove pollution from the largest fires in Northern California to Southern California, where there are more solar farms.

Smaller residential and commercial solar systems were affected, too, and solar panels during grid blackouts typically shut off for safety, although smoke was the primary issue here. “A lot of my systems were producing zero power,” Steve Pariani, founder of the solar installation company Solar Pro Energy Systems, told the San Mateo Daily Journal in September.

As the planet heats up, California’s fire seasons have grown longer, and blazes are tearing through more land than ever before, while grid operators are also seeing rising curtailments as they integrate more renewables. For both utilities and smaller solar efforts, wildfire smoke will continue to darken solar energy’s otherwise bright future, even as it becomes the No. 3 renewable source in the U.S. by generation.

 

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How Should California Wind Down Its Fossil Fuel Industry?

California Managed Decline of Fossil Fuels aligns oil phaseout with carbon neutrality, leveraging ZEV adoption, solar and wind growth, severance taxes, drilling setbacks, fracking oversight, CARB rules, and CalGEM regulation to deliver a just transition.

 

Key Points

California's strategy to phase out oil and gas while meeting carbon-neutral goals through policy, regulation, and equity.

✅ Severance taxes fund clean energy and workforce transition.

✅ Setbacks restrict drilling near schools, homes, and hospitals.

✅ CARB and CalGEM tighten fracking oversight and ZEV targets.

 

California’s energy past is on a collision course with its future. Think of major oil-producing U.S. states, and Texas, Alaska or North Dakota probably come to mind. Although its position relative to other states has been falling for 20 years, California remains the seventh-largest oil-producing state, with 162 million barrels of crude coming up in 2018, translating to tax revenue and jobs.

At the same time, California leads the nation in solar rooftops and electric vehicles on the road by a wide margin and ranking fifth in installed wind capacity. Clean energy is the state’s future, and the state is increasingly exporting its energy policies across the West, influencing regional markets. By law, California must have 100 percent carbon-free electricity by 2045, and an executive order signed by former Governor Jerry Brown calls for economywide carbon-neutrality by the same year.

So how can the state reconcile its divergent energy path? How should clean-energy-minded lawmakers wind down California’s oil and gas sector in a way that aligns with the state’s long-term climate targets while providing a just transition for the industry’s workforce?

Any efforts to reduce fossil fuel supply must run parallel to aggressive demand-reduction measures such as California’s push to have 5 million zero-emission vehicles on the road by 2030, said Ethan Elkind, director of Berkeley Law's climate program, especially amid debates over keeping the lights on without fossil fuels in the near term. After all, if oil demand in California remains strong, crude from outside the state will simply fill the void.

“If we don’t stop using it, then that supply is going to get here, even if it’s not produced in-state,” Elkind said in an interview.

Lawmakers have a number of options for policies that would draw down and eventually phase out fossil fuel production in California, according to a new report from the Center for Law, Energy and the Environment at the UC Berkeley School of Law, co-authored by Elkind and Ted Lamm.

They could impose a higher price on California's oil production through a "severance" tax or carbon-based fee, with the revenue directed to measures that wean the state from fossil fuels. (California, alone among major oil-producing states, does not have an oil severance tax.)

Lawmakers could establish a minimum drilling setback from schools, playgrounds, homes and other sensitive sites. They could push the state's oil and gas regulator, the California Geologic Energy Management Division, to prioritize environmental and climate concerns.

A major factor holding lawmakers back is, of course, politics, including debates over blackouts and climate policy that shape public perception. Given the state’s clean-energy ambitions, it might surprise non-Californians that the oil and gas industry is one of the Golden State’s most powerful special interest groups.

Overcoming a "third-rail issue" in California politics
The Western States Petroleum Association, the sector’s trade group in California's capital of Sacramento, spent $8.8 million lobbying state policymakers in 2019, more than any other interest group. Over the last five years, the group, which cultivates both Democratic and Republican lawmakers, has spent $43.3 million on lobbying, nearly double the total of the second-largest lobbying spender.

Despite former Governor Brown’s reputation as a climate champion, critics say he was unwilling to forcefully take on the oil and gas industry. However, things may take a different turn under Brown's successor, Governor Gavin Newsom.

In May 2019, when Newsom released California's midyear budget revision (PDF), the governor's office noted the need for "careful study and planning to decrease demand and supply of fossil fuels, while managing the decline in a way that is economically responsible and sustainable.”

Related reliability concerns surfaced as blackouts revealed lapses in power supply across the state.

Writing for the advocacy organization Oil Change International, David Turnbull observed, “This may mark the first time that a sitting governor in California has recognized the need to embark upon a managed decline of fossil fuel supply in the state.”

“It is significant because typically this is one of those third-rail issues, kind of a hot potato that governors don’t even want to touch at all — including Jerry Brown, to a large extent, who really focused much more on the demand side of fuel consumption in the state,” said Berkeley Law’s Elkind.

California's revised budget included $1.5 million for a Transition to a Carbon-Neutral Economy report, which is being prepared by University of California researchers for the California Environmental Protection Agency. In an email, a CalEPA spokesperson said the report is due by the end of this year.

Winding down oil and gas production
Since the release of the revised budget last May, Newsom has taken initial steps to increase oversight of the oil and gas industry. In July 2019, he fired the state’s top oil and gas regulator for issuing too many permits to hydraulically fracture, or frack, wells.

Later in the year, he appointed new leadership to oversee oil and gas regulation in the state, and he signed a package of bills that placed constraints on fossil fuel production. The next month, Newsom halted the approval of new fracking operations until pending permits could be reviewed by a panel of scientists at Lawrence Livermore National Laboratory. The California Geologic Energy Management Division (CalGEM) did not resume issuing fracking permit approvals until April of this year.

Not all steps have been in the same direction. This month Newsom dropped a proposal to add dozens of analysts, engineers and geologists at CalGEM, citing COVID-related economic pressure. The move would have increased regulatory oversight on fossil fuel producers and was opposed by the state's oil industry.

Ultimately, more durable measures to wind down fossil fuel supply and demand will require new legislation, even as regulators weigh whether the state needs more power plants to maintain reliability.

A 2019 bill by Assemblymember Al Muratsuchi (D-Torrance), AB 345, would have codified the minimum 2,500-foot setback for new oil and gas wells. However, before the final vote in the Assembly, the bill’s buffer requirement was dropped and replaced with a requirement for CalGEM “to consider a setback distance of 2,500 feet.” The bill passed the Assembly in January over "no" votes from several moderate Democrats; it now awaits action in the Senate.

A bill previously introduced by Assemblymember Phil Ting (D-San Francisco), AB 1745, didn’t even make it that far. Ting’s bill would have required that all new passenger cars registered in the state after January 1, 2040, be zero-emission vehicles (ZEV). The bill died in committee without a vote in April 2018.

But the backing of the California Air Resources Board (CARB), one of the world's most powerful air-quality regulators, could change the political conversation. In March, CARB chair Mary Nichols said she now supports consideration of California establishing a 100 percent zero-emission vehicle sales target by 2030, as policymakers also consider a revamp of electricity rates to clean the grid.

“In the past, I’ve been skeptical about whether that would do more harm than good in terms of the backlash by dealers and others against something that sounded so un-California like,” Nichols said during an online event. “But as time has gone on, I’ve become more convinced that we need to send the longer-term signal about where we’re headed.”

Another complicating factor for California’s political leaders is the lack of a willing federal partner — at least in the short term — in winding down oil and gas production, amid warnings about a looming electricity shortage that could pressure the grid.

Under the Trump administration, the Bureau of Land Management, which oversees 15 million acres of federal land in California, has pushed to open more than 1 million acres of public and private land across eight counties in Central California to fracking. In January 2020, California filed a federal lawsuit to block the move.

 

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Egypt, Eni ink MoU on hydrogen production projects

Egypt-ENI Hydrogen MoU outlines joint feasibility studies for green and blue hydrogen using renewable energy, carbon capture, and CO2 storage, targeting domestic demand, exports, and net-zero goals within Egypt's energy transition.

 

Key Points

A pact to study green and blue hydrogen in Egypt, leveraging renewables, CO2 storage, and export/demand pathways.

✅ Feasibility study for green and blue hydrogen projects

✅ Uses renewables, SMR, carbon capture, and CO2 storage

✅ Targets local demand, exports, and net-zero alignment

 

The Egyptian Electricity Holding Company (EEHC) and the Egyptian Natural Gas Holding Company (EGAS) signed a memorandum of understanding (MoU) with the Italian energy giant Eni to assess the technical and commercial feasibility of green and blue hydrogen production projects in Egypt, which many see as central to power companies' future strategies worldwide today.

Under the MoU, a study will be conducted to assess joint projects for the production of green hydrogen using electricity generated from renewable energy and supported by regional electricity interconnections where relevant, and blue hydrogen using the storage of CO2 in depleted natural gas fields, according to a statement by the Ministry of Petroleum on Thursday.

The study will also estimate the potential local market consumption of hydrogen and export opportunities, taking cues from Ontario's hydrogen economy proposal to align electricity rates for growth.

This agreement is part of Eni's objective to achieve zero net emissions by 2050 and Egypt's strategy towards diversifying the energy mix and developing hydrogen projects in collaboration with major international companies, taking note of Italy's green hydrogen initiatives in Sicily as a comparable effort.

It signed the deal with Egyptian Natural Gas Holding (EGAS) and Egyptian Electricity Holding Co. (EEHC).

The companies will carry out a joint study on producing renewable energy powered green hydrogen, informed by electrolyzer investments in similar projects, where applicable. They will also work on blue hydrogen. This involves reforming natural gas and capturing the resulting CO2, in this instance in depleted natural gas fields.

The study will also consider domestic hydrogen use and export options, including funding models like the Hydrogen Innovation Fund now in Ontario.

Eni said the MoU was in line with its plans to eliminate net emissions and emissions cancel emission intensity by 2050. The company noted the agreement was in line with Egypt’s plan for the energy transition, in which it pursues hydrogen plans with major international companies, alongside broader clean-tech collaboration such as Tesla cooperation discussions in Dubai, to accelerate progress.

 

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National Steel Car appealing decision in legal challenge of Ontario electricity fee it calls an unconstitutional tax

Ontario Global Adjustment Appeal spotlights Ontario's electricity fee, regulatory charge vs tax debate, FIT contracts, green energy policy, and constitutional challenge as National Steel Car contests soaring power costs before the Ontario Superior Court.

 

Key Points

Court challenge over Ontario's global adjustment fee, disputing its status as a regulatory charge instead of a tax.

✅ Challenges classification of global adjustment as tax vs regulatory charge.

✅ Focuses on FIT contracts, renewable energy payments, power cost impacts.

✅ Appeals Ontario ruling; implications for ratepayers and policy.

 

A manufacturer of steel rail cars is pursuing an appeal after its lawsuit challenging the constitutionality of a major Ontario electricity fee was struck down earlier this year.

Lawyers for Hamilton, Ont.-based National Steel Car Ltd. filed a notice of appeal in July after Ontario Superior Court Justice Wendy Matheson ruled in June that an electricity fee known as the global adjustment charge was a regulatory charge, and not an unconstitutional tax used to finance policy goals, as National Steel Car alleges.

The company, the decision noted, began its legal crusade last year after seeing its electricity bills had “increased dramatically” since the Ontario government passed green energy legislation nearly a decade ago, and amid concerns that high electricity rates are hurting Ontario manufacturers.

Under that legislation, the judge wrote, “private suppliers of renewable energy were paid to ’feed in’ energy into Ontario’s electricity grid.” The contracts for these so-called “feed-in tariff” contracts, or FIT contracts, were the “primary focus” of the lawsuit.

“The applicant seeks a declaration that part of the amount it has paid for electricity is an unconstitutional tax rather than a valid regulatory charge,” the judge added. “More specifically, it challenges part of the Global Adjustment, which is a component of electricity pricing and incorporates obligations under FIT contracts.”

Chiefly representing the difference between Ontario’s market price for power and the guaranteed price owed to generators, global adjustment now makes up the bulk of the commodity cost of electricity in the province. The fee has risen over the past decade, amid calls to reject steep Nova Scotia rate hikes as well — costing electricity customers $37 billion in global adjustment from 2006 to 2014, according to the province’s auditor general — because of investments in the electricity grid and green-energy contracts, among other reasons.

National Steel Car argued the global adjustment is a tax, and an unconstitutional one at that because it violated a section of the Constitution Act requiring taxes to be authorized by the legislature. The company also said the imposition of the global adjustment broke an Ontario law requiring a referendum to be held for new taxes.

The province, Justice Matheson wrote, had argued “that it is plain and obvious that these applications will fail.” In a decision released in June, the judge granted motions to strike out National Steel Car’s applications.

“The Global Adjustment,” she added, “is not a tax because its purpose, in pith and substance, is not to tax, and it is a regulatory charge and therefore, again, not a tax.”

Now, National Steel Car is arguing that the judge erred in several ways, including in fact, “by finding that the FIT contracts must be paid, when they can be cancelled.”

There has been a change in government at Queen’s Park since National Steel Car first filed its lawsuit last year, and that change has put green energy contracts under fire. The Progressive Conservative government of new Premier Doug Ford has already made a number of decisions on the electricity file, such as moving to cancel and wind down more than 750 renewable energy contracts, as well as repealing the province’s Green Energy Act.

The Tories also struck a commission of inquiry into the province’s finances that warned the global adjustment “may be struck down as unconstitutional,” a warning delivered amid cases where Nova Scotia's regulator approved a 14% rate hike in a high-profile decision.

“There is a risk that a court may find the global adjustment is not a valid regulatory charge if shifting costs over a longer period of time inadvertently results in future ratepayers cross-subsidizing today’s ratepayers,” the commission’s report said.

A spokesperson for Ontario’s Ministry of Energy, Northern Development and Mines said in an email that it would be “inappropriate to comment about the specifics of any case before the courts or currently under arbitration.”

National Steel Car is also prepared to fight its case all the way up to the Supreme Court of Canada, according to its lawyer.

“What is clear from our proceeding with the appeal is National Steel Car has every intention of seeing that lawsuit through to its conclusion if this government isn’t interested or prepared to reasonably settle it,” Jerome Morse said.

 

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Sen. Cortez Masto Leads Colleagues in Urging Congress to Support Clean Energy Industry in Economic Relief Packages

Clean Energy Industry Support includes tax credits, refundability, safe harbor extensions, EV incentives, and stimulus measures to stabilize renewable energy projects, protect the workforce, and ensure financing continuity during economic recovery.

 

Key Points

Policies and funding to stabilize renewables, protect jobs, and extend tax incentives for workforce continuity.

✅ Extend PTC/ITC and remove phase-outs to sustain projects

✅ Enable direct pay or refundability to unlock financing

✅ Preserve safe harbor timelines disrupted by supply chains

 

U.S. Senator Catherine Cortez Masto (D-Nev.) led 17 Senate colleagues, as the Senate moves to modernize public-land renewables, in sending a letter calling on Congress to include support for the United States' clean energy industry and workforce in any economic aid packages.

"As Congress takes steps to ensure that our nation's workforce is prepared to emerge stronger from the coronavirus health and economic crisis, we must act to shore up clean energy businesses and workers who are uniquely impacted by the crisis, echoing a power-sector call for action from industry groups," said the senators. "This action, which has precedent in prior financial recovery efforts, could take several forms, including tax credit extensions or removal of the current phase-out schedule, direct payment or refundability, or extensions of safe harbor continuity."

"We need to make sure that any package protects workers and helps families stay afloat in these challenging times. Providing support to the clean energy industry will give much-needed certainty and confidence, as the sector targets a market majority, for those workers that they will be able to keep their paychecks and their jobs in this critical industry," the senators also said.

In addition to Senator Cortez Masto, the letter was also signed by Senators Ed Markey (D-Mass.), Martin Heinrich (D-N.M), Sheldon Whitehouse (D-R.I.), Debbie Stabenow (D-Mich.), Tina Smith (D-Minn.), Jack Reed (D-R.I.), Cory Booker (D-N.J.), Richard Blumenthal (D-Conn.), Amy Klobuchar (D-Minn.), Chris Van Hollen (D-Md.), Dianne Feinstein (D-Calif.), Jacky Rosen (D-Nev.), Tammy Duckworth (D-Ill.), Chris Coons (D-Del.), Mazie Hirono (D-Hawaii), Dick Durbin (D-Ill.), and Kyrsten Sinema (D-Ariz.).

Dear Leader McConnell, Leader Schumer, Chairman Grassley, Ranking Member Wyden:

As Congress takes steps to ensure that our nation's workforce is prepared to emerge stronger from the coronavirus health and economic crisis, we must act to shore up clean energy businesses and workers who are uniquely impacted by the crisis, with wind investments at risk amid the pandemic. This action, which has precedent in prior financial recovery efforts, could take several forms, including tax credit extensions or removal of the current phase-out schedule, direct payment or refundability, or extensions of safe harbor continuity.

First and foremost, we need to take care of workers' health and immediate needs to stay in their homes and provide for their families, and the Families First Coronavirus Response Act is a critical down payment. Now, we must make sure the workforce has jobs to return to and that employers remain able to pay for critical benefits like paid sick and family leave, healthcare, and Unemployment Insurance.

The renewable energy industry employs over 800,000 people across every state in the United States. This industry and its workers could suffer significant harms as a result of the coronavirus emergency and resulting financial impact. Renewable energy businesses are already seeing project cancellations or delays, as the Covid-19 crisis hits solar and wind across the sector, with the solar industry reporting delays of 30 percent. Likewise, the energy efficiency sector is susceptible to similar impacts. As the coronavirus pandemic intensifies in the United States, that rate of delay or cancellations will only continue to skyrocket. Global and domestic supply chains are already facing chaotic changes, with equipment delays of three to four months for parts of the industry. A major collapse in financing is all but certain as investment firms' profits turn to losses and capital is suddenly unavailable for large labor-intensive investments.

To ensure that we do not lose years of progress on clean energy and the source of employment for tens of thousands of renewable energy workers, Congress should look to previous relief packages as an example for how to support this sector and the broader American economy. The American Recovery and Reinvestment Act of 2009 (also known as the Recovery Act or ARRA) provided over $90 billion in funding for clean energy and grid modernization, along with emergency relief programs. Specifically, ARRA provided immediate funding streams like the 1603 Cash Grant program for renewables and the 30 percent clean energy manufacturing tax credit to give immediate relief for the clean energy industry. As Congress develops this new package, it should consider these immediate relief programs for the renewable and clean energy industry, especially as analyses suggest green energy could drive Covid-19 recovery at scale. This could include direct payment or refundability, extensions of safe harbor continuity, tax credit extensions, electric vehicle credit expansion, or removal of the current phase-out schedules for the clean energy industry.

We need to make sure that any package protects workers and helps families stay afloat in these challenging times. Providing support to the clean energy industry will give much-needed certainty and confidence for those workers that they will be able to keep their paychecks and their jobs in this critical industry.

These strategies to provide assistance to the clean energy industry must be included in any financial recovery discussions, particularly if the Trump Administration continues its push to aid the oil industry, even as some advocate a total fossil fuel lockdown to accelerate climate action. We appreciate your consideration and collaboration as we do everything in our power to quickly recover from this health and economic emergency.

 

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