Energy News & Law Update January 2021

Thursday 7th January 2021

NORTH EAST AND CENTRAL ATLANTIC COUNTRIES TAKE OVER THE INITIATIVE PROGRAM FOR TRANSPORT AND CLIMATE

On December 21, 2020, the states of Connecticut, Massachusetts, Rhode Island and the District of Columbia signed a Memorandum of Understanding (MOU) to implement the Program for Transportation and Climate Action Initiatives (TCIP). The TCIP is a multi-jurisdictional collaboration that aims to improve transport networks, create clean energy jobs and reduce CO2 emissions from the transport sector. The initiative intends to achieve these goals through a “cap-and-invest” regime. As part of the program, large gasoline and diesel fuel suppliers are required to purchase emission certificates. The sale of carbon credits is expected to generate $ 300 million per year. The proceeds will be invested in less carbon-intensive fuels and more resilient transportation methods. For example, the proceeds can also be used to buy electric school and transit buses, fund the electrification of ports and cargo facilities, develop charging corridors for interstate electric vehicles, or other programs to reduce CO2 emissions from traditional modes of transport. The letter of intent includes a commitment to use at least 35 percent of the proceeds of each jurisdiction for social justice goals, such as: B. to ensure that communities that are underserved by the transport system and / or most vulnerable to the adverse effects of CO2 emissions benefit from clean transport projects. Eight other countries have issued a declaration in which they undertake to continue working with the TCIP while pursuing country-specific strategies to reduce emissions.

MASSACHUSETTS LEGISLATION REACHES NEW CARBON EMISSIONS TARGET

On January 3, 2021, the Massachusetts Senate and House of Representatives passed laws to update the Commonwealth’s clean energy policies. If enacted, the “Next Generation Roadmap for Massachusetts Climate Change Act” would set a target for net carbon dioxide emissions by 2050. To achieve this goal, the draft law sets standards for reducing carbon dioxide emissions by 50 percent from 1990 to 2030 and by 75 percent by 2040. Additionally, the legislation would raise the standard for renewable portfolios in Massachusetts by five percent by 2030 and require state utilities to purchase an additional 2,400 MW of offshore power by that time.

If enacted, Massachusetts would join the coterie of eleven other states that have set net carbon emissions standards by 2050.

2021 SEE BATTERY RECYCLING CONTINUED IN NORTH AMERICA

The combination of increased use of renewable energy, large batteries, and projected significant growth in global electric vehicle sales (which is projected to increase from 1.7 million in 2020 to 26 million in 2030) has led to more serious global efforts to recycle materials made from used batteries . In the past such recycling projects have been in Asia, but at least two new recycling facilities will soon be built in the US. The first will be in New York as Canadian company Li-Cycle is due to begin building a $ 175 million plant in Rochester, New York later this year. The facility will ultimately have a capacity of 25 kilotons of input material, making it the largest recycling facility for lithium-ion batteries in North America. With this capacity, 95 percent or more of the cobalt, nickel, lithium and other valuable elements are to be recovered, which are recycled via an emission-free and emission-free process.

The second plant will be in Nevada. In June 2020, the American Battery Technology Company secured land for its first recycling facility for lithium-ion batteries in Nevada. The company has since selected a contractor to lead it through the construction and approval process this year. At full capacity, the plant will recycle 20,000 tons of raw materials annually.

SANTA MONICA WILL ESTABLISH THE NATION’S FIRST ZERO EMISSIONS DELIVERY ZONE

In February 2021, Santa Monica, California will unveil the country’s first zero-emission delivery zone pilot program. The aim of the pilot program is to neutralize the carbon footprint of food and parcel deliveries within a designated zone of one square mile. For this purpose, Santa Monica will set up up to 20 loading zones in parking lots that are exclusively available to emission-free delivery vehicles. In addition, Santa Monica has partnered with a variety of dealers who have jointly agreed to make their deliveries using electric vehicles that have been leased through a truck-sharing service. Other companies, like a manufacturer of an all-electric three-wheel delivery vehicle that can carry 20 cubic feet of cargo space, are also applying to join the pilot.

The need to reduce carbon footprints on deliveries was highlighted during the pandemic in Santa Monica and across the country, where good shopping and grocery orders are being made online and more than ever delivered to every customer’s door.

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