Energy sector innovation and broader efforts to address climate change should resemble the best of the tech start-ups in the U.S.: fast, disruptive, exciting and good for consumers. But the complexity of the energy tax code and market can stymie American ingenuity.
A new bipartisan bill called the Energy Sector Innovation Credit (ESIC) led by Rep. Tom Reed (R-N.Y.) and Rep. Jimmy Panetta (D-CA.) – especially when added to the recent suite of bipartisan proposals to right-size the U.S. innovation engine and regulatory code – could be a major missing financing piece of the clean energy innovation puzzle.
Reps. Darrin LaHood (IL-18), Tom Suozzi (NY-3), David Schweikert (AZ-6) and Josh Gottheimer (NJ-5) are original cosponsors, and Ways and Means Committee Ranking members Kevin Brady (R-TX) had this to say:
“The key to tackling climate change is American innovation, not through burdensome regulations and tax hikes. We also know that any solution must be bipartisan, and I want to applaud Tom for leading the charge on this bill, reaching across the aisle to build consensus and support. I look forward to continuing our work together to advance policies that support American innovation, lower energy costs, and continue to drive our economy.”
In addition to ClearPath Action, the legislation has already been endorsed by Bipartisan Policy Center, Southern Company, American Public Power Association, National Rural Electric Cooperative Association, United States Energy Association, Citizens for Responsible Energy Solutions, Clean Air Task Force, Energy Storage Association, Nuclear Energy Industry, The United States Nuclear Industry Council (USNIC), National Electrical Contractors Association, Information Technology and Innovation Foundation.
VIDEO: Republicans Lead with Solutions to Lowering Emission
House Energy & Commerce Republicans hosted the first-ever “Energy & Environment Innovation Showcase” – an exhibition designed to celebrate a host of American innovators and outline a clear legislative agenda to support realistic climate solutions. Read more
Energy Storage Grand Challenge
This week, Secretary of Energy Dan Brouilette rolled out the “Energy Storage Grand Challenge.” This exciting effort will use DOE expertise to spur advances in energy storage that will ultimate drive new technologies to market and ensure U.S. industry reaps the benefits. Read more
RICH’S TAKE
“The DOE has historically tackled some of the nation’s most complicated energy challenges by aligning the U.S. innovation machine’s resources and competencies towards ambitious goals. Over $100 million annually is spent on the research and development of different energy storage technologies across the DOE, but that work is not aligned towards unified outcomes. The Energy Storage Grand Challenge is, for the first time, a bold outcome-oriented program. Kicking off this new cross cutting initiative to focus the various storage-related R&D programs around the development of grid-scale non-lithium ion storage technologies would increase stewardship of taxpayer dollars, facilitate efficiency and reliability improvements for the American electricity grid, and provide the best shot at an innovation breakthrough.”
Happy Birthday Petra Nova
Today marks the third birthday of Petra Nova, the first large scale carbon capture plant at a U.S. power plant. In case you missed the first two years, Mitsubishi — not just a maker of fast cars — in partnership with the U.S. Department of Energy (DOE), worked to deploy one of the largest carbon capture projects in the world at the W.A. Parish coal-fired power plant outside Houston, Texas. To date, only two carbon capture projects in the world have been installed at a power plant. One of the two – NRG’s Petra Nova project- can capture up to 5,000 tons of carbon dioxide each day from the Texas coal plant.
In the three years Petra Nova has captured over 3 million tons of carbon dioxide and shows that with smart public private partnerships, the U.S. is able to innovate and deploy commercial scale projects to make clean energy more affordable. In Texas, carbon-free resources make up more than 30 percent of its energy generation. Even in the state of Texas, home to the largest U.S. wind power plants, Petra Nova is in the top ten percentile of largest clean energy sources. Read more
Natural Gas & Oil Industry Launch Climate Campaign
The American Petroleum Institute (API) created headlines with the annual state of the industry event this week as they boldly launched a climate campaign. In addition to their advertising campaign and new website, energyforprogress.org, they endorsed carbon capture policy including the LEADING Act and the USE IT Act.
API’s efforts are follow on the National Petroleum Council (NPC) report which discussed the dual environmental and economic benefits of accelerated carbon capture deployment at natural gas-fired power plants. The aggressive RD&D program recommended by the NPC report is already reflected in bipartisan legislation advancing in Congress, the Enhancing Fossil Fuel Energy Carbon Technology (EFFECT) Act and the Fossil Energy R&D Act (FE R&D) Act.
American Action Forum:
The Recent Record On U.S. Greenhouse Gas Emissions
Doug Holtz Eakin of the American Action Forum published a column this week regarding climate change and policies to address emissions. He cites the Rhodium Group’s estimate of 2019 emissions, which showed a decline of 2.1 percent. Read more
E&E:
Haiwee Geothermal Leasing Area approved by Admin
E&E News reported this week that the Haiwee Geothermal Leasing Area will offer more than 21,000 acres in California for utility-scale geothermal power development.The Administration has estimated this leasing area could spur $1 billion in investment in geothermal power projects capable of producing enough electricity to power about 117,000 homes. Read more
NREL:
Declining Renewable Costs Drive Focus on Energy Storage
A blog post by the National Renewable Energy Lab highlights some intermitancy challenges with renewable energy and how declining costs are driving innovators to find solutions on storing the energy until it’s needed. Read more
THE PATH AHEAD
January 10, 2020: U.S. Department of Energy Assistant Secretary for Nuclear Energy Rita Baranwal announced that Battelle Energy Alliance, LLC (BEA), the managing and operating contractor for the Department of Energy’s Idaho National Laboratory (INL), is seeking an Expression of Interest (EOI) for partnerships on the deployment of the Versatile Test Reactor (VTR). Click here for details on the Versatile Test Reactor Program Seeking Expressions of Interest
January 15, 2020: At 11:30 am in the House Rayburn Office Building, the U.S. Department of Energy Office of Nuclear Energy will be hosting an Atomic Wings Lunch and Learn entitled Movers & Milestones in Nuclear Energy. ClearPath will moderate. Learn more and register here
2019 – 2020 School Year: The Energy Impact Center in partnership with the University of Michigan has created the first ever Nuclear Energy Grand Challenge: Reimagining Nuclear Waste which will engage collegiate innovators and entrepreneurs to tackle one of the most unique challenges facing the nuclear energy industry – the perception of nuclear waste. The winning team will be awarded a cash prize. Learn more about the Nuclear Energy Grand Challenge here.
Bipartisan Tech-Neutral Energy Innovation Tax Credit
Happy Birthday Petra Nova
