U.S. EPA Opens Public Comment on Funding for Zero-Emission Vehicles and Charging Infrastructure Under Inflation Reduction Act
The U.S. Environmental Protection Agency (EPA) issued, on May 5, 2023, a request for information seeking input on the availability of zero-emission technologies in the heavy-duty vehicle and port sectors toward establishing funding programs under the Inflation Reduction Act (IRA). EPA requests comment from manufacturers, distributors, installers, fleet operators, and port operators about their products and experience with zero-emission technologies.
EPA Proposes Granting Louisiana Primacy Over Carbon Sequestration Well Program
The U.S. Environmental Protection Agency (EPA) proposed to approve Louisiana’s request for control over the permitting of carbon sequestration wells in the state. EPA’s approval would provide Louisiana authority under the Safe Drinking Water Act (SDWA) Underground Injection Control (UIC) program to administer a “Class VI” injection well program for the geologic sequestration of carbon dioxide, following similar such approvals for North Dakota and Wyoming. Stakeholders should take note of this proposed action because EPA approval of Louisiana’s program could advance carbon capture and sequestration (CCS) projects stymied by the backlog of permit applications pending before the EPA.
DOE Announces Over $4B in Energy Transition Project Tax Credit and Grant Programs
The U.S. Department of Energy (DOE), alongside the Internal Revenue Service (IRS) and Department of the Treasury, has announced plans to implement programs funded by the Inflation Reduction Act and the Bipartisan Infrastructure Law: the Low-Income Communities Bonus Credit Program (48(e)), the Qualifying Advanced Energy Project Credit (48C)), and the Advanced Energy Manufacturing and Recycling Grant Program. Together, these programs will make available more than $4 billion in federal tax credits and grants for energy transition projects in an effort to “accelerate domestic clean energy manufacturing and ensure traditionally underserved communities benefit from clean energy technologies.”
IRA-Driven Carbon Capture Needs Strategic Approach
Sidley Austin lawyers say that developers should proactively engage agencies in order to effectively leverage Inflation Reduction Act tax credits and federal funds for carbon capture and sequestration projects. The permitting and approval process is ripe for reform, they say.
Fifth Circuit Vacates and Remands Injunction on Nationwide Oil and Gas Lease Pause
On August 17, 2022, the U.S. Court of Appeals for the Fifth Circuit (the Court) vacated and remanded an order by the federal district court for the Western District of Louisiana (the District Court) of a nationwide preliminary injunction enjoining the Biden administration (the Government) from pausing oil and gas lease sales. The Court found that the District Court’s decision lacked specificity.
