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May 4, 2022

Summary

›	Community benefits agreements secure union jobs in clean energy manufacturing for marginalized workers.
›	Major transmission projects are inching closer to approval.
›	The Biden administration will fund $3 billion in battery supply chain grants.
›	Renewable energy outperforms gas in Texas and out-produced nuclear energy in 2021.
›	Florida Governor’s veto will preserve the state’s rooftop solar industry.

Quote of the Week:

“Transmission projects like those advanced today offer a promising path for diversifying our national energy portfolio and connecting more renewable energy, while at the same time combatting climate change and investing in communities,” said Interior Secretary Deb Haaland.

CLEAN ENERGY

Must Be Equitable

Electric bus manufacturers recruit workers from marginalized communities. A community benefits agreement between battery and bus manufacturer Proterra, United Steelworkers Local 675, and Los Angeles-based non-profits are helping workers from under-represented communities find a place in the growing clean energy economy. As part of the agreement, Proterra agreed to hire from harder-to-employ groups like veterans, single parents, and formerly incarcerated workers, and runs a pre-hire training program for prospective employees. Similar agreements and programs are in place with a handful of other manufacturers, and advocates hope to secure more as the clean energy manufacturing economy expands. (Capital & Main)

CLEAN ENERGY

Is Replacing Fossil Fuels

Major transmission projects pass key hurdles. A transmission line that would carry clean wind energy from New Mexico to the West Coast has passed its federal environmental review, and reviews for two other major lines in Utah and Nevada are planned. More transmission capacity will be necessary to accommodate new clean energy projects and achieve the Biden administration’s goal of a pollution-free power sector by 2035. The administration has promised to expedite the permitting process. The New Mexico transmission project has been in development for over a decade, and a final decision is expected in the summer. (Associated Press)

U.S. renewables out-produce nuclear energy. In 2021, utility-scale renewables produced more energy (795 million megawatt hours) than nuclear plants (778 million megawatt hours) for the first time in U.S. history. Investment in renewable energy is growing fast thanks to falling prices: solar installation costs have dropped by 70% over the last decade. While nuclear power has been declining, investment in renewable energy is increasing, and the Energy Information Administration projects that solar power will become the dominant source of U.S. energy by 2050. (Utility Dive)

CLEAN ENERGY

Is a Good Investment

Biden administration commits $3 billion to clean energy supply chains. Energy Secretary Granholm announced $3.1 billion in grants to boost the domestic battery supply chain, as well as $60 million for battery recycling. The administration aims to reduce reliance on China and volatile foreign supply chains to help accelerate the production and adoption of clean energy and electric cars and trucks. The announcement comes amid concerns from automakers and analysts that global demand for critical minerals needed for batteries is outpacing supply, driving up prices and threatening to slow the energy transition. The market for lithium-ion batteries is expected to increase by 20 to 30 times by 2030. (New York Times $)

Texas renewables set new records, outpacing gas. Wind and solar energy powered a record 34 percent of the Texas grid in the first three months of 2022, outperforming the state’s gas-powered turbines and coal plants. And this is not the first time: In the first four months of 2021, Texan renewable energy also outproduced gas turbines. Clean energy is expected to continue growing rapidly in Texas, with officials expecting a 54 percent increase in solar by the end of the year compared to the end of 2021. (Houston Chronicle $)

CLEAN ENERGY

Is Affordable

DeSantis vetoes damaging bill aimed at rooftop solar. Citing inflation, Florida Governor DeSantis rejected a bill that would have imposed high fees on homeowners and businesses that install rooftop solar. The bill would have charged solar customers for the costs of accessing transmission lines and backup energy, while receiving no benefits for reducing electricity demand. Despite support from utilities like Florida Power & Light, Florida residents were overwhelmingly opposed to the proposed bill. Solar businesses employ 9,000 people and generate $10 billion a year in economic revenue in the Sunshine state. (Miami Herald)

CLEAN ENERGY

Is Challenging

Trade probe threatens the future of U.S. solar. A Commerce Department probe is leaving the $30 billion U.S. solar industry in limbo, with projects stalled across the country as solar developers await a decision. The Department is investigating whether companies are avoiding import duties on Chinese solar cells by assembling the products in other Southeast Asian countries. Tariffs could potentially rise as high as 239 percent the value of the equipment, which would severely disrupt planned domestic solar developments since the industry already operates on slim margins. At least 65 percent of U.S. solar capacity set to come online between 2022 and 2023 is at risk of cancellation or delay, according to advocates. (Bloomberg $)