Senate Finance Committee Modifies Clean Energy Tax Proposals in Build Back Better Reconciliation Bill

Early on December 11, 2021, the Senate Finance Committee released its version of the Build Back Better Act (the “Act”). While the Senate Finance Committee version of the Act largely replicates the clean energy proposals included in the version of the Act the House passed on November 19, 2021, it does include a few substantive revisions along with clean-up changes to the legislative text. If the Senate passes the Act, as revised by the Senate Finance Committee, the revised legislation will need to be approved by the House.

The Act would also extend and enhance the carbon sequestration tax credit, …

Carbon Management Provisions in the Infrastructure Investments and Jobs Act

The Infrastructure Investments and Jobs Act (IIJA), signed into law on November 15, contains the largest single investment in carbon management provisions since the Department of Energy (DOE) began funding carbon capture research in 1997.

Importantly, IIJA takes a holistic approach to building out the carbon management ecosystem by funding four major policy areas: carbon capture, utilization & storage (CCUS) research, development, and demonstration (RD&D); carbon transport and storage infrastructure & permitting; carbon utilization market development; and carbon removal priorities.

In conjunction with the 45Q tax credit enhancements proposed in the Build Back Better Act (BBBA), IIJA is one half …

Why Supporting Hydrogen in Build Back Better is Good for the Climate

Six reasons that the hydrogen production tax credit (PTC) in the Build Back Better Act (BBBA) is good policy and essential to kickstart full decarbonization.…

Federal Revenue and Economic Impacts from BOEM Offshore Wind Leasing

In October 2021, BOEM announced a proposed schedule for seven new lease area auctions across the United States by 2025. These include areas in the New York Bight, Northern & Central California, Carolina Long Bay, Oregon, the Gulf of Mexico, the Gulf of Maine, and the Central Atlantic. In the first three lease areas—New York Bight, California, and Carolina Long Bay—BOEM has already progressed to the Proposed Sale Notice (PSN) phase of the leasing process within previously identified Wind Energy Areas (WEAs). This study forecasts the revenue that BOEM could expect to accrue both from the sale of the area …

Oil and Gas Investment Outlook: Investment Crisis Threatens Energy Security

Oil and gas upstream investment will need to increase and be sustained at near pre-COVID levels of $525 billion through 2030 to ensure market balance despite slowing demand growth. Upstream investment in the oil and gas sector in 2021 was depressed for a second consecutive year at $341 billion – nearly 25% below 2019 levels. Meanwhile, oil and gas demand is now near pre-pandemic highs and will continue to rise for the next several years, particularly in developing countries.

The investment environment for the oil and gas sector is becoming more challenging in the face of unprecedented uncertainty and risks, …

How Private Capital Is Shaping the Energy Evolution

As the energy industry transitions to renewables, private investment trends remain dynamic. Billions of VC dollars are flowing into cleantech, while PE firms consolidate traditional producers and expand holdings of wind and solar.

This report reviews the full spectrum of private investment in depth, with key findings including:

After a sluggish 2020, dealmaking is ramping back up, with record buyout multiples raising the stakes for PE fund managers. Alternative and nontraditional energy companies account for growing proportions of energy M&A, as E&P compress somewhat. Venture funding is diversifying across a wider array of cleantech than ever before, from greener building

Energy Bill Security for American Households through Electrification

The brief highlights the need for Congress to pass the Build Back Better Act, whose rebates and incentives for efficient, electric machines will provide American families a way to save money on their energy bills today and protect against the price volatility that comes with having fossil fuel-powered appliances and vehicles.…

Oil and Gas Leasing: BLM Should Update Its Guidance and Review Its Fees

The Bureau of Land Management seeks to facilitate safe and responsible oil and gas development on federal lands while providing a fair return for the American people.

There have been several changes to the Bureau’s oil and gas leasing process since it was established in 1987, but guidance and related fees haven’t kept pace with those changes. For example, lease application fees were intended to cover the costs of administering the process—but the Bureau hasn’t fully reviewed its application fees and the costs they cover since 2005.

Our recommendations are to help the Bureau update its oil and gas leasing …

Advancing Corporate Procurement of Zero-Carbon Electricity in the United States: Moving from RE100 to ZC100

Corporate pledges to purchase renewable electricity have led to significant new solar and wind capacity investments and driven down the carbon intensity of the power sector in the United States. Participating companies have increasingly procured this power, many with a goal of procuring quantities that are equal or proportional to the amount of electricity that they consume at their facilities on an annual basis. Corporate buyers can reap many benefits from renewables procurement, including hedging against power price fluctuations and enjoying positive brand association, helping them meet shareholder demands around climate or other environmental, social, and governance (ESG) goals. However, …

Navigating the Supply Chain for Battery Energy Storage Systems

In the current boom market for lithium-ion battery energy storage systems, trust in the supply chain may be the most limited resource. For stationary projects slated for deployment in the next 2-5 years: How can North American utilities, independent power producers (IPPs), and storage project developers trust that these critical systems will arrive on time, and perform as promised?…