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It is a time-honored tradition for Americans who live north of the 39th parallel to mock cities like Washington, D.C., and Atlanta when they shut down over a little bit of snow. It is with great regret, then, that I write now to tell you that New York City has fallen. No longer will it be acceptable for us to roll our eyes at Southerners who abandon their cars over a mere inch of snow; no, we in fact deserve to be razzed by New Englanders and Minnesotans, our former partners in razzing. New Yorkers have become, in effect, weak. We’ve forgotten how to winter.
Maybe it’s because it has been 745 days since our last significant snowfall, or maybe it’s because, at some point, we started to lean into our designation as a “subtropical” climate. But no — I won’t make excuses, either. Outside my window in western Queens, the sidewalks are slushy but navigable, the flakes are light, and the city has lost its mind.
“‘Stay home,’ NYC mayor pleads,” reads one illustrative headline, while The New York Times has at least 16 different reporters assigned to its nor’easter live blog covering — what, exactly? The fact that “the Metropolitan Museum of Art remained open on Tuesday”? (At least we haven’t all lost our senses.) And while the white stuff was still coming down around midday, at the time of this writing, Central Park had reported just 1.2 inches of total accumulation — not even enough to make a proper snowball without scraping the ground bare beneath your glove.
Meanwhile, New York City Mayor Eric Adams, channeling his inner Jim Cantore, posted video from the frontlines of the storm. Even he was forced to admit, however, that “the roads are not bad.” At home, kids robbed of a proper snow day struggled to connect to their remote classrooms after the city preemptively closed schools on Monday, a whole 20 hours before the brunt of the storm even hit.
As tempting as it is to blame meteorologists for overselling the nor’easter (another time-honored American tradition), that’s not what the problem is. More simply, New Yorkers have gotten soft. As recently as 2016, Snowzilla dumped 26.8 inches across the five boroughs, and my street went unplowed for days. There will be longtime New Yorkers who laugh at even that example, pointing to the 2006 storm — 18 years ago to the day! — that was a tenth of an inch deeper and set the standing city record.
Ridiculous snowstorms are, in fact, part of what gives New York its grit. None of this “few are out on the [Prospect Park] loop in the snow” nonsense. Back in 1920, the city deployed the Army’s Chemical Warfare Service to use flamethrowers to melt the snowbanks. The Blizzard of 1888 was so severe that 200 New Yorkers died and you could reportedly walk across the East River from Brooklyn to Manhattan or, if you were less lucky, trip over a frozen horse:
One man suffered a gash on his forehead when he fell into a snow drift. The drift was soft and deep, but his head struck the leg of a dead horse buried there. For some time afterward, the man showed his friends the wound and boasted that he was the first person ever kicked by a dead horse. [NYCSubway.org]
Not everyone has forgotten what it means to be scrappy, though.The more I looked into it on Tuesday, the more I found New Yorkers reacting to the storm with refrains of “this is nothing” and “lame.” It’s not that we need frozen horse legs to feel like proper New Yorkers, but not having them certainly isn’t making us any happier. Having a real winter is part of what makes the city, the City. If we become the kind of people who get worked up over a few inches of snow, then we truly are no better than Washingtonians. Shudder.
But getting wimpier about winter might also be out of our control. New York’s Department of Environmental Conservation says that statewide, snowfall is “likely to decrease … due to warming global temperatures.” As we’re seeing already, our ability to handle a little snow will decrease right along with it. One day, there could even be New Yorkers who don’t know what it means to fatally misjudge the depth of a snow-crusted puddle at the corner of an intersection. Then who are we?
All I’m saying is, we used to be a proper city. And if what’s outside my window is what passes for exciting weather in New York these days — now at the tail-end of the storm, the snowfall is starting to turn to rain — then Boston, do your worst. We deserve it.
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But ... how?
President-elect Donald Trump on Tuesday rocked the energy world when he promised “fully expedited approvals and permits, including, but in no way limited to, all Environmental approvals” for “Any person or company investing ONE BILLION DOLLARS, OR MORE, in the United States of America,” in a post on Truth Social Tuesday.
“GET READY TO ROCK!!!” he added.
Trump has frequently derided regulatory barriers to development, including in his announcements of various economic and policy roles in his upcoming administration. His designee for Secretary of the Interior, Doug Burgum, for instance, will also head a
National Energy Council that will “oversee the path to U.S. ENERGY DOMINANCE by cutting red tape … by focusing on INNOVATION over longstanding, but totally unnecessary, regulation.”
When Trump
announced his nomination of Lee Zeldin to head the Environmental Protection Agency, he said Zeldin would “ensure fair and swift deregulatory decisions that will be enacted in a way to unleash the power of American business.”
Current interpretations of existing laws dictate that any project constituting a major federal action (e.g. one that uses public lands) must be reviewed under the National Environmental Policy Act, the country’s signature permitting law. Federal courts are often asked in litigation to sign off on whether that review process — although not the outcome — was sufficient.
Regardless of any changes Trump may make to the federal regulatory system as president, that infrastructure is already in flux. The D.C. Circuit Court of Appeals recently issued a ruling that throws into doubt decades of NEPA enforcement. Also on Tuesday, the Supreme Court heard a separate case on the limits of NEPA as it relates to aproposed rail line expansion to transport oil from Utah’s Uinta Basin to refineries on the Gulf of Mexico. Although the court is unlikely to issue a decision until next year, its current membership has shown itself plenty willing to scrap longstanding precedent in the name of cutting the regulatory state down to size.
Trump did not support his announcement with any additional materials laying out the legal authorities he plans to exercise to exempt these projects from regulation or proposed legislation, but it already attracted criticism from environmentalists, with the Sierra Club describing it as a “plan to sell out communities and environment to the highest bidder.It’s also unclear whether Trump was referring to foreign direct investment in the United States, of which there was $177 billion in 2022,according to the Department of Commerce.
Trump’s appointed co-deregulator-in-chief, for one, approved of his message today. “This is awesome 🚀🇺🇸,” Elon Musk wrote on X in response.
Companies are racing to finish the paperwork on their Department of Energy loans.
Of the over $13 billion in loans and loan guarantees that the Energy Department’s Loan Programs Office has made under Biden, nearly a third of that funding has been doled out in the month since the presidential election. And of the $41 billion in conditional commitments — agreements to provide a loan once the borrower satisfies certain preconditions — that proportion rises to nearly half. That includes some of the largest funding announcements in the office’s history: more than $7.5 billion to StarPlus Energy for battery manufacturing, $4.9 billion to Grain Belt Express for a transmission project, and nearly $6.6 billion to the electric vehicle company Rivian to support its new manufacturing facility in Georgia.
The acceleration represents a clear push by the outgoing Biden administration to get money out the door before President-elect Donald Trump, who has threatened to hollow out much of the Department of Energy, takes office. Still, there’s a good chance these recent conditional commitments won’t become final before the new administration takes office, as that process involves checking a series of nontrivial boxes that include performing due diligence, addressing or mitigating various project risks, and negotiating financing terms. And if the deals aren’t finalized before Trump takes office, they’re at risk of being paused or cancelled altogether, something the DOE considers unwise, to put it lightly.
“It would be irresponsible for any government to turn its back on private sector partners, states, and communities that are benefiting from lower energy costs and new economic opportunities spurred by LPO’s investments,” a spokesperson wrote to me in an email.
The once nearly dormant LPO has had a renaissance under the Biden administration and the office’s current director, Jigar Shah. The Inflation Reduction Act supercharged its lending authority to $400 billion, from just $40 billion when Biden took office. Then a week after the election, the office announced that it had recalibrated its risk estimates for the loan guarantees that it makes under the Energy Infrastructure Reinvestment program, which works to modernize and repurpose existing energy infrastructure to make it cleaner and more energy efficient. As the office explained, these projects “may reflect a relatively moderate risk profile in comparison to typical projects LPO finances with higher project risk.” When there’s less risk involved, LPO doesn’t have to set aside as much money to cover a possible default, which in this case has allowed the office to more than quadruple its funding for qualifying projects.
It’s not just that LPO staffers are working fast, though that’s part of it — it’s also that loan beneficiaries have picked up their pace in responding to the LPO. As Shah emphasized today at the LPO’s second annual Demonstrate Deploy Decarbonize conference, finalizing conditional commitments largely depends on companies getting their ducks in a row as quickly as possible. “I do think that right now borrowers are sufficiently motivated to move more quickly than they have probably a year ago,” Shah said. “It's up to the borrowers. Our process hasn’t changed. Their ability to move through it faster is in their control.”
Shah noted that though timelines may be accelerating, the office’s due diligence procedures have remained the same. Thus far, the project that has moved the fastest from a conditional commitment to a finalized loan was for a clean hydrogen and energy storage facility in Utah. That took 43 days, and there are 46 left in Biden’s presidency. Let’s see what the LPO can do.
The expanded investment tax credit rules are out.
In the waning days of the Biden administration, the Treasury Department is dotting the i’s and crossing the t’s on the tax rules that form the heart of the Inflation Reduction Act and its climate strategy. Today, Treasury has released final rules for the Section 48 Investment Tax Credit, which gives project owners (and/or their tax equity partners) 30% back on their investments in clean energy production.
The IRA-amended investment tax credit, plus its sibling production tax credit, are updates and expansion on tax policies that have been in place for decades supporting largely the solar and wind industries. To be clear, today’s announcement does not contain the final rules for the so-called “technology-neutral” clean electricity tax credits established under the IRA, which will supercede the existing investment and production tax credits beginning next year and for which all non-carbon emitting sources of energy can qualify.
But projects that begin construction this year can still qualify for and claim the legacy credits, which were expanded by the Inflation Reduction Act to include things like standalone energy storage. Projects that go into service this year would only be eligible for the legacy credits, while a project that begins construction this year and goes into service next year or later could choose between the legacy credits or the tech neutral credits, but not both.
The proposed rules, released in November of last year, set off a flurry of campaigning and lobbying by the industry, seeking adjustments to their favor. The final regulations largely hew to the earlier release, although they do include clarifications on what precise aspects of an energy system qualify for the credits. Under the final rules, for instance the “upgrading equipment” necessary for “cleaning and conditioning” biogas — i.e. removing other gases to make it a pure gas stream — can qualify for the credit.
Going into the end of the year, the major items left on the Treasury Department’s agenda were the tech neutral tax credits, rules for the advanced manufacturing tax credit, and rules for credits related to the production of clean hydrogen; advanced manufacturing tax credit rules came out in late October. While the Biden Treasury is doing its best to get rules out the door before Donald Trump’s inauguration, the fate of all clean energy tax credits is up in the air as Republicans prepare take power in Washington and start carving up the IRA, whether by “sledgehammer” or by “scalpel.”