Both Congress and the White House have recently proposed “direct pay” options for developers of US renewable energy projects—notably, direct pay proposals are part of President Biden’s $2 trillion American Jobs Plan announced March 31, 2021 and included in the Growing Energy and Efficiency Now Act (Green Act) and section 45Q carbon capture legislation (ACCESS 45Q).
On March 31, 2021, President Joe Biden announced the American Jobs Plan (the Plan). The Plan proposes approximately $2 trillion in government funding over the next decade focused on infrastructure, the electric grid, high-speed broadband, climate change, and jobs creation.
President Biden has announced ambitious energy and environmental goals in an effort to combat the effects of climate change. Many of the president’s goals hinge on increasing support for alternative forms of energy production, increased use of low or zero emissions vehicles and fuels, as well as investment in and deployment of carbon reduction technologies, such as carbon capture and storage (“CCS”).
The Biden administration has committed to supporting increased renewable power generating capacity, calling to decarbonize the national electric grid by 2035. President Biden has already begun taking steps to support this goal, including a recent Executive Order directing the Department of Interior to review and assess options for increasing renewable energy production on federal lands and in federal offshore waters, with the goal to double offshore wind energy production in federal waters by 2035.
Late last night, Congress passed the COVID-19 relief bill, which provides extensions for key renewable energy tax credits.
Nationally and globally, there is growing focus on renewable fuels as a potentially profitable part of the strategy to reduce carbon emissions and mitigate climate change.
For anyone tracking the future of energy, 2020 is expected to bring a major milestone: Renewables are poised to generate more electricity in the U.S. than coal for the first time over the course of a full year according to the U.S. Energy Information Association (EIA). Renewable energy, the country’s fastest growing source of electricity…