Released January 12, 2021 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Year-end "must pass" bills in Congress typically include funding for many pet congressional projects, but the $2.3 trillion omnibus budget and COVID-19 relief bill passed by Congress on December 21 and signed into law by President Donald Trump on December 27 was truly a Frankenstein monster. Weighing in at 5,593 pages, the longest bill ever passed by Congress, the bill included $900 billion in COVID-19 relief funds tacked on to a $1.4 trillion bill that funds government agencies through September 30, 2021.
At risk of being lost amid the traditional "pork" projects in the bill and the chaos at the end of Trump's term, the omnibus bill contained a number of significant energy and environment measures. It is doubtful many of those measures would have been approved earlier in Trump's presidency or in a second Trump term.
Sandwiched around a $25 million grant to Pakistan for "gender" and "democracy" programs in Pakistan and a repeal of criminal punishments for people who used Smokey the Bear's likeness without permission, the bill:
As in past years, enactment of the budget was praised by energy groups that stand to benefit from it, and criticized by small-government and free-market groups.
"Christmas has come early for the renewable energy lobby, as Congress has once again reached into taxpayers' wallets to generously subsidize wind, solar, and biofuel producers," complained Thomas Pyle, president of the American Energy Alliance (Washington, D.C.). "Particularly shameful is the year-long extension of the production tax credit for onshore wind, which the industry had promised to phase-out but continues to go back on their word."
Not surprisingly, Heather Zichal, chief executive of the American Clean Power Association (ACP), had a different perspective. "This bipartisan agreement is a major win for American energy consumers, providing more opportunities for them to receive reliable, zero-carbon, and pollution-free electricity in their local communities," she said in a statement December 21. "We appreciate that Congress has recognized clean energy's significant contributions to our nation's economy and role in providing jobs and investments during the recovery from the COVID-19 pandemic. ... We also applaud Congress for recognizing the enormous potential of offshore wind, America's largest untapped electricity source, as a brand-new provider of jobs for American workers and clean power for American families."
John Bowman, managing director for government affairs at the Natural Resources Defense Council, called the energy provisions a "mixed bag," praising the tax credits and renewable support but noting that lawmakers also included provisions for fossil fuels, according to a report in E&E News. That news organization also quoted Rob Cowin, director of government affairs for climate and energy at the environmental group Union of Concerned Scientists (Washington, D.C), as criticizing the package because it lacked support for clean vehicles: "We are going to need a real commitment from Congress on sustained support for clean energy and clean transportation going forward."
And there's reason to believe more energy and environmental legislation will be forthcoming. Following the enactment of this 5,593-page bill, Georgia held runoff elections for two U.S. Senate seats, both of which were won by Democrats. The Senate now is split evenly 50-50 between Republicans and Democrats but Vice President-elect Kamala Harris will be able to vote to break ties. After the bill was passed but before the Georgia runoff races concluded, Senator Chuck Schumer (Democrat-New York), who could be the majority leader, predicted a Biden administration would "deliver bold climate action." Speaking of energy portions of the new bill, he said, "Let's be clear: are these provisions enough to meet the demands of the science? No. But are they a significant step in the right direction? Yes."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
At risk of being lost amid the traditional "pork" projects in the bill and the chaos at the end of Trump's term, the omnibus bill contained a number of significant energy and environment measures. It is doubtful many of those measures would have been approved earlier in Trump's presidency or in a second Trump term.
Sandwiched around a $25 million grant to Pakistan for "gender" and "democracy" programs in Pakistan and a repeal of criminal punishments for people who used Smokey the Bear's likeness without permission, the bill:
- Extends the Production Tax Credit for windpower for one year and the Investment Tax Credit for solar power for two years
- Creates a 30% investment tax credit for offshore windpower projects that begin construction between January 1, 2017 and December 31, 2025
- Boosts funding by $72 million for research into energy efficiency and renewable energy technologies
- Allocates $1.5 billion for nuclear energy research and development, a $14 million increase over fiscal year (FY) 2020 funding
- Provides $750 million for fossil energy research and development, the same level as was in the FY 2020 budget
- Extends a tax credit for research &and development of carbon capture & sequestration (CCS) technologies, including provision to research so-called direct air carbon capture, in which carbon dioxide is removed from the atmosphere. The so-called section 45Q CCS tax credit was extended for two years. Now, those projects seeking tax credits must begin construction by the end of 2025. Previously, developers of CCS had until the end of 2023 to start construction to be eligible to claim the credit.
- Increases funding by $171 million for the Department of Energy's environmental management initiatives. Most of that, about $6.42 billion, is earmarked for cleanup activities associated with past nuclear weapons production and $319 million dedicated to non-defense environmental cleanup.
- Instructs the Department of Interior (DOI) to set goals for renewable energy production on federal land by 2022 and permit at least 25 gigawatts (GW) of solar, wind or geothermal electricity projects by 2025.
- Creates a measure to identify and support new uses of coal. The bill calls for research, development, demonstration and commercialization of a "carbon utilization program" aside from its existing uses in generators' boilers and steelmakers' furnaces. This measure would seek out alternative uses of raw and processed coal that don't cause "significant" carbon dioxide emissions.
- Mandates an 85% reduction in the use of hydrofluorocarbons (HFCs) by 2035. HFCs, a refrigerant, is many times more potent that carbon dioxide as a greenhouse gas.
As in past years, enactment of the budget was praised by energy groups that stand to benefit from it, and criticized by small-government and free-market groups.
"Christmas has come early for the renewable energy lobby, as Congress has once again reached into taxpayers' wallets to generously subsidize wind, solar, and biofuel producers," complained Thomas Pyle, president of the American Energy Alliance (Washington, D.C.). "Particularly shameful is the year-long extension of the production tax credit for onshore wind, which the industry had promised to phase-out but continues to go back on their word."
Not surprisingly, Heather Zichal, chief executive of the American Clean Power Association (ACP), had a different perspective. "This bipartisan agreement is a major win for American energy consumers, providing more opportunities for them to receive reliable, zero-carbon, and pollution-free electricity in their local communities," she said in a statement December 21. "We appreciate that Congress has recognized clean energy's significant contributions to our nation's economy and role in providing jobs and investments during the recovery from the COVID-19 pandemic. ... We also applaud Congress for recognizing the enormous potential of offshore wind, America's largest untapped electricity source, as a brand-new provider of jobs for American workers and clean power for American families."
John Bowman, managing director for government affairs at the Natural Resources Defense Council, called the energy provisions a "mixed bag," praising the tax credits and renewable support but noting that lawmakers also included provisions for fossil fuels, according to a report in E&E News. That news organization also quoted Rob Cowin, director of government affairs for climate and energy at the environmental group Union of Concerned Scientists (Washington, D.C), as criticizing the package because it lacked support for clean vehicles: "We are going to need a real commitment from Congress on sustained support for clean energy and clean transportation going forward."
And there's reason to believe more energy and environmental legislation will be forthcoming. Following the enactment of this 5,593-page bill, Georgia held runoff elections for two U.S. Senate seats, both of which were won by Democrats. The Senate now is split evenly 50-50 between Republicans and Democrats but Vice President-elect Kamala Harris will be able to vote to break ties. After the bill was passed but before the Georgia runoff races concluded, Senator Chuck Schumer (Democrat-New York), who could be the majority leader, predicted a Biden administration would "deliver bold climate action." Speaking of energy portions of the new bill, he said, "Let's be clear: are these provisions enough to meet the demands of the science? No. But are they a significant step in the right direction? Yes."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
