House Energy and Commerce Approves Clean Electricity Performance Program

Sep 21, 2021

by ASME.org

The House Energy & Commerce Committee advanced its portion of the $3.5 trillion budget resolution last week. The Committee’s print includes a centerpiece of the Biden Administration’s clean energy plan, a Clean Electricity Performance Program (CEPP) which will issue grants to electricity suppliers from 2023 through 2030 based on how much qualified clean electricity each supplier provides to customers. The program aims to hit 80% clean power by 2030, broadly impacting the energy industry. 
 
Under the program, electricity suppliers would be eligible for a grant if they increase the amount of clean electricity supplied in the previous year by 4%, according to an outline of the committee’s legislation. The grant will be $150 for each megawatt-hour above 1.5% of the previous year’s clean electricity. Natural gas is not included as clean energy under the program—only electricity with a carbon intensity of less than 0.10 metric tons of carbon dioxide equivalent per megawatt-hour will be eligible.
 
Utilities that fail to increase their clean electricity percentage by at least 4% over the previous year will owe payment to the Department of Energy, one of the revenue-generating measures included in the plan to make it comply with budget reconciliation instructions. A supplier will owe $40 for each megawatt-hour under the 4% threshold.
 
The bill also includes a fee on methane emissions from the oil and gas industry based on based on how much a facility emits. For petroleum and natural gas production industry segments, the fee only applies to the carbon dioxide equivalent tons (CO2e) of reported methane emissions that exceed an intensity threshold of 0.2% of natural gas sent to sales. For nonproduction petroleum and natural gas industry segments, the fee only applies to the CO2e of reported methane emissions above an intensity threshold of 0.05% of natural gas sent to sales.

Other energy funding highlights include: 
  • $13.5 billion for electric vehicle infrastructure in publicly accessible locations, as well as electrification of industrial and medium-heavy duty vehicles.
  • $5 billion in Environmental Protection Agency grants to replace heavy-duty vehicles.
  • $3.5 billion in grants to lower air pollution at ports.
  • $9 billion in financing for electric grid improvements.
  • $18 billion for home and appliance energy efficiency rebates.
  • $2.5 billion to fund solar projects in low-income communities. 
    To view a summary of the Energy & Commerce bill, visit: 
https://energycommerce.house.gov/sites/democrats.energycommerce.house.gov/files/documents/Memo_FC%20MU_2021.9.9_0.pdf
 
 

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