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If Vice President Kamala Harris is elected president in November — as is looking increasingly likely — her term will last until the beginning of 2029. At that point, we’ll have a much better idea whether the planet is on track to hit the 1.5 degrees Celsius climate threshold that some expect it to cross that year; we’ll also know whether the United States is likely to meet the first goal of the Inflation Reduction Act: to reduce national greenhouse gas emissions to half of 2005 levels by 2030.
There is a lot riding on the outcome of the 2024 election, then. But even more to the point, there is a lot riding on how, and how aggressively, Harris extends President Biden’s climate policies. Last week, I spoke to nine different climate policy experts about what’s on their wishlists for a potential Harris-Walz administration and encountered resounding excitement about the opportunities ahead. I also encountered nine different opinions on how, exactly, Harris should capitalize on those opportunities, should she wind up in the White House come January.
That said, the ideas I heard largely coalesced into three main avenues of approach: The first would see Harris use her position to shore up the country’s existing climate policies, doubling down on spending and addressing loopholes in the IRA. A second path would involve aggressively expanding on Biden’s legacy, mainly through major new investments. The final and most ambitious path would involve Harris approaching climate change and the energy transition with an original and bold vision for the years ahead (though your priorities may vary).
The policy proposals that fall under these loosely organized paths aren’t necessarily mutually exclusive, and, as you’ll see, some of the advocate’s proposals fall into multiple categories. But it’s also true that by making everything a priority, nothing is. With that in mind, here are three approaches climate insiders say Harris could take if she wins the White House in November.
Before jumping headlong into expanding the country’s climate policies, the Harris administration could start by shoring up existing legislation — mainly, the loopholes and oversights in the Inflation Reduction Act. “The IRA was the biggest climate investment in history and fundamentally changed the emissions trajectory of the U.S — but the work is not done,” Adrian Deveny, founder of the decarbonization strategy group Climate Vision who previously worked on the IRA as Senate Majority Leader Chuck Schumer’s director of energy and environmental policy, told me.
As things stand, the policies in the IRA alone won’t be enough to meet President Biden’s goal of halving the nation’s greenhouse gas emissions by 2030; to do that, the U.S. would “need to pass another IRA-sized bill,” Deveny said. Until that happens, filling the IRA’s emissions gaps will take a lot of work “in every sector of the economy,” he added.
Lena Moffitt, the executive director of Evergreen Action — which has already released a comprehensive 2025 climate roadmap for a Harris administration — told me that the task of “doubling down on Biden’s climate legacy as a job creator” will run through rebuilding and expanding the grid and revitalizing industry and rural economies, two projects that started in the IRA but remain incomplete. “We’d love to see a day one executive order from the White House outlining a plan to create American jobs and seize the mantle of leadership by building clean energy and clean tech in the United States,” she told me.
Permitting reform is part of that — and could be another piece of yet-unfinished business Harris will need to wrap up. “If that doesn’t get done this year, that is what we have to look to as soon as possible during a future Harris administration,” Harry Godfrey, who leads Advanced Energy United's Federal Investment and Manufacturing Working Group, told me.
That’s not the only regulatory matter still up in the air. Austin Whitman, the CEO of The Climate Change Project, a non-profit that offers climate certification labeling and helps businesses reduce their emissions, told me that the Federal Trade Commission, for example, still hasn’t updated its green guides — “a loose collection of recommendations to companies on how to behave to not violate the FTC Act” — since 2012. “We just need a clear timeline and a sense of direction of where that whole process is going,” Whitman told me. Additionally, he said that the government has a substantial and outstanding role to play in standardizing and streamlining emissions reporting practices for businesses — which, while perhaps not “very sexy,” are necessary to “relieve the administrative burden so companies can focus on decarbonization.”
The last piece: Make sure everything that’s already in place is actually working. “We’re seeing that states and local governments need additional capacity to manage [the IRA] money well,” Jillian Blanchard, the director of Lawyers For Good Government’s climate change program, told me. Harris could help by enacting “more tangible policies like granting federal funding to hire community engagement specialists or liaisons or paying for the time of community leaders to provide local governments with key information on where the communities are that need to be benefited, and what they need.” She also floated the idea of a Community Change Grant extension to help get federal funding to localities more directly.
“One of the criticisms of the Inflation Reduction Act is that it didn’t do ‘X’ — whatever ‘X’ is,” Costa Samaras, the director of the Wilton E. Scott Institute for Energy Innovation at Carnegie Mellon and a former senior White House energy official, told me. “And in reality, it probably did. It just didn’t do it big enough.”
As opposed to those who thought Harris should take a quieter, dare I say conservative approach to advancing the U.S. climate agenda, Samaras told me he wanted to see Harris pump up the volume. The current climate moment requires “attacking the places where we need to immediately make big emissions cuts and big resilience investments. This is the industrial sector, the cultural sector, heavy transportation, as well as making sure that our cities and communities are built for people.”
There are plenty of existing programs that could take some supersizing. Godfrey of Advanced Energy United brought up the home energy rebate programs, arguing that as things stand, those resources are only serving “a fraction of the eligible population.” Blanchard of Lawyers For Good Government also pointed out that the Environmental Protection Agency had almost 300 Climate Pollution Reduction Grant applications totaling more than $30 billion in requests — but only $4.3 billion to hand out. “There are local governments, state governments, tribal nations, and territories hungry for this money to implement clean energy projects,” she said. “There are plans that are ready to go if there are additional federal award dollars in the future.”
Another place Harris could expand on Biden’s legacy would be by reinstating the U.S. as a climate leader on the world stage. “We need to say, ‘climate is back on the table,’” Whitman of The Climate Change Project told me. “It’s a main course, and we’re going to talk about it” — something that would give us “a more credible seat at the negotiating table at the COPs.”
Perhaps most importantly, though, Harris needs to use her term to start looking toward the future. As Deveny of Climate Vision told me, “We designed the IRA to think about meeting our 2030 target. And now we have to think about 2035.” Looking ahead isn’t “just about extending policies,” in other words, but about anticipating new technologies and opportunities that could arise in the next decade — and Harris, if elected, should step up to the challenge.
Some believe Harris shouldn’t limit herself to the framework of the IRA as it exists now — that she needs to dream bigger and better than anything seen under the Biden administration. “The question is: Are we going to just ride the coattails of the IRA as if this problem is mostly solved? Or are we going to put forward a whole new, bold vision of how we can take things on?” Saul Levin, the political director of the Green New Deal Network, wondered to me.
According to Deveny of Climate Vision, that means continuing to build on “our industrial renaissance.”
“We have really awakened a sleeping giant of clean industrial manufacturing in this country to make solar panels, wind turbines, and batteries,” he explained. “We can also lead the world in clean industrial manufacturing for steel, cement, and other heavy industry projects.” Samaras of Carnegie Mellon, too, shared this vision. “By the end of a potential Harris Administration first term, the path to zero emissions should be visible everywhere,” he told me. Also on his wishlist were “abundant energy-efficient and affordable housing, accessible clean mobility infrastructure everywhere, schools and post offices as community clean energy and resilience hubs, and climate-smart agriculture and nature-based solutions across the country,” plus greater investment in adaptation.
“The fact is that both the Bipartisan Infrastructure Law and Inflation Reduction Act are the largest investments in resilience we’ve ever done,” he said. But “we have to think about it the same way we have to think about mitigation,” he went on. “It’s the largest thing we’ve ever done — comma, so far.”
One of the biggest openings for Harris to distinguish herself from Biden, though, would be by taking a tougher tone with big polluters. Biden had shown less of an appetite for going after businesses, several times kicking the can down the road on a decision to what would have been his second term. Harris, by contrast, is well positioned with her background as a prosecutor and already went as far as to call for a “climate pollution fee” and the creation of an independent Office of Climate and Environmental Justice and Accountability during her 2019-2020 campaign.
“We love seeing her already reference from the stump that there is a lot that she can do with Congress or through the executive branch to hold polluters accountable for the toll that they have taken on families and our climate,” Moffitt of Evergreen Action told me. “That could look like a host of things, from repealing subsidies to using the Department of Justice to hold polluters accountable.” Maria Langholz, the senior director of Arc Initiatives, a strategy group that works with climate-related organizations, told me in an email that her team would also like to see the Harris administration revoke the presidential permit for Enbridge’s Line 5 pipeline as high, in addition to developing a public interest determination “that fully addresses the social, environmental, and economic impacts of LNG.”
But Levin, more than anyone else, wanted to see Harris pursue a “moonshot campaign from day one,” he said. “Hoping that tweaking the IRA is an appropriate solution to climate change is totally out of step with mainstream scientific consensus. It’s absolutely ridiculous. At the end of the day, we need to fundamentally transform our economy so that all people can survive climate change.” To have a prayer of meeting the IRA’s climate goals — let alone putting a meaningful dent in America’s contribution to global emissions — the U.S. must “invest trillions of dollars in transforming our transportation system, our building sector, our food and agriculture sector, and every part of the economy so that we can create a livable, sustainable world forever that works for everyone.”
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The Senate’s reconciliation bill essentially repeals the Corporate Average Fuel Economy standards, abolishing fines for automakers that sell too many gas guzzlers.
A new provision in the Senate reconciliation bill would neuter the country’s fuel efficiency standards for automakers, gutting one of the federal government’s longest-running programs to manage gasoline prices and air pollution.
The new provision — which was released on Thursday by the Senate Commerce Committee — would essentially strip the government of its ability to enforce the Corporate Average Fuel Economy standards, or CAFE standards.
The CAFE rules are the government’s main program to improve the fuel economy of new cars and light-duty trucks sold in the United States. Over the past 20 years, the rules have helped push the fuel efficiency of new vehicles to record highs even as consumers have adopted crossovers and SUVs en masse.
But the Republican reconciliation bill would essentially end the program as a practical concern for automakers. It would set all fines issued under the program to zero, stripping the government of its ability to punish automakers that sell too many polluting vehicles.
“It would essentially eviscerate the standard without actually doing so directly,” Ann Carlson, a UCLA law professor who led the National Highway Traffic Safety Administration from 2022 to 2023, told me.
“It says that, ‘We have standards here, but we don’t care if you comply or not. If you don’t comply, we’re not going to hold you responsible,’” she said.
Representatives for the Senate Commerce Committee did not respond to an immediate request for comment. A talking points memo released by the committee on Thursday said that the new bill would “[bring] down automobile prices modestly by eliminating CAFE penalties on automakers that design cars to conform to the wishes of D.C. bureaucrats rather than consumers.”
Since 1975, Congress has required the National Highway Traffic Safety Administration (pronounced NIT-suh) to set annual fuel efficiency standards for new cars and light trucks sold in the United States. The rules generally require new vehicles sold nationwide to get a little more fuel efficient, on average, every year.
The rules have remained in effect — with varying levels of stringency — for 50 years, although they have generally encouraged automakers to get more efficient since Congress strengthened the law on a bipartisan basis in 2007.
In model-year 2023, the most recent period for which data is available, new cars and light trucks achieved a real-world fuel economy of 27.1 miles per gallon, an all-time high. The vehicle fleet was set to hit another record high in 2024, according to last year’s report.
Opponents of the fuel economy rules argue that the regulations increase the sticker price of new cars and trucks and push automakers to build less profitable vehicles. The Heritage Foundation, the conservative think tank that published Project 2025, has called the rules a “backdoor EV mandate.”
The rules’ supporters say that the standards are necessary because consumers don’t take fuel costs — or the environmental or public health costs of air pollution — into account when buying a vehicle. They say the rules keep gasoline prices low for all Americans by encouraging fuel efficiency across the board.
The strict Biden-era rules were projected to save consumers $23 billion in gasoline costs, according to an agency analysis. The American Lung Association said that the rules would prevent more than 2 million pediatric asthma attacks and save hundreds of infant lives by 2050.
Secretary of Transportation Sean Duffy has targeted the fuel economy rules as part of a wide-ranging effort to roll back Biden-era energy policy. On January 28, as his first official act, Duffy ordered NHTSA to retroactively weaken the rules for all cars and light trucks sold after model-year 2022.
On Friday, Duffy separately issued a legal opinion that would restrict NHTSA’s ability to include electric vehicles in its real-world estimates of the country’s fuel economy rules. The opinion sets up the next round of CAFE rules to be considerably weaker than existing law.
But the new Republican reconciliation bill, if adopted, would render those rules moot.
Under current law, automakers must pay a fine when the average fuel economy of the vehicles they sell exceeds the fuel economy standard set for that year. Automakers can avoid paying that penalty by buying “credits” from other car companies that have done better than the rules require.
The fine’s size is set by a formula written into the law. That calculation includes the number of cars sold above the fuel-economy threshold, how much those cars exceeded it, and a $5 multiplier. The GOP tax bill rewrites the law to set the multiplier to zero dollars.
In essence, no matter how much an automaker exceeds the fuel economy rules, the GOP reconciliation bill will now multiply their fine by zero.
The original CAFE law contains a second formula allowing the government to set even higher penalties if doing so would achieve “substantial energy conservation.” The new reconciliation bill sets the multiplier in this formula, too, to zero dollars.
The CAFE law’s penalties can be significant. The automaker Stellantis, which owns Fiat and Chrysler, recently paid more than $426 million in penalties for cars sold from model year 2018 to 2020. Last year, General Motors paid a $38 million fine for light trucks sold in model year 2020.
The CAFE provision in the GOP mega-bill seems designed to skirt past the Byrd rule, a Senate rule that policies in reconciliation bills must affect revenue, spending, or generally have more than a “merely incidental” effect on the federal budget.
But Carlson, the former NHTSA acting administrator, doubted whether the provision should really survive a Byrd bath.
Zeroing out the fines is “not really about revenue,” she said, but about compliance with the law. “This is a way to try to couch repeal of CAFE in revenue terms instead of doing it outright.”
And more of the week’s top news about renewable energy conflicts.
1. Nassau County, New York – Opponents of Equinor’s offshore Empire Wind project are now suing to stop construction after the Trump administration quietly lifted its stop-work order.
2. Somerset County, Maryland – A referendum campaign in rural Maryland seeks to restrict solar development on farmland.
3. Tazewell County, Virginia – An Energix solar project is still in the works in this rural county bordering West Virginia, despite a restrictive ordinance.
4. Allan County, Indiana – This county, which includes portions of Fort Wayne, will be holding a hearing next week on changing its current solar zoning rules.
5. Madison County, Indiana – Elsewhere in Indiana, Invenergy has abandoned the Lone Oak solar project amidst fervent opposition and mounting legal hurdles.
6. Adair County, Missouri – This county may soon be home to the largest solar farm in Missouri and is in talks for another project, despite having a high opposition intensity index in the Heatmap Pro database.
7. Newtown County, Arkansas – A fifth county in Arkansas has now banned wind projects.
8. Oklahoma County, Oklahoma – A data center fight is gaining steam as activists on the ground push to block the center on grounds it would result in new renewable energy projects.
9. Bell County, Texas – Fox News is back in our newsletter, this time for platforming the campaign against solar on land suitable for agriculture.
10. Monterey County, California – The Moss Landing battery fire story continues to develop, as PG&E struggles to restart the remaining battery storage facility remaining on site.
A conversation with Biao Gong of Morningstar
This week’s conversation is with Biao Gong, an analyst with Morningstar who this week published an analysis looking at the credit risks associated with offshore wind projects. Obviously I wanted to talk to him about the situation in the U.S., whether it’s still a place investors consider open for business, and if our country’s actions impact the behavior of others.
The following conversation has been lightly edited for clarity.
What led you to write this analysis?
What prompted me was our experience in assigning [private] ratings to offshore wind projects in Europe and wanted to figure out what was different [for rating] with onshore and offshore wind. It was the result of our recent work, which is private, but we’ve seen the trend – a lot of the big players in the offshore wind space are kind of trying to partner up with private equity firms to sell their interests, their operating offshore wind assets. But to raise that they’ll need credit ratings and we’ve seen those transactions. This is a growing area in Europe, because Europe has to rely on offshore wind to achieve its climate goals and secure their energy independence.
The report goes through risks in many ways, including challenging conditions for construction. Tell me about the challenges that offshore wind faces specifically as an investment risk.
The principle behind offshore wind is so different than onshore wind. You’re converting wind energy to electricity but obviously there are a bunch of areas where we believe it is riskier. That doesn’t mean you can’t fund those projects but you need additional mitigants.
This includes construction risk. It can take three to five years to complete an offshore wind project. The marine condition, the climate condition, you can’t do that [work] throughout the year and you need specialized vehicles, helicopters, crews that are so labor intensive. That’s versus onshore, which is pre-fabricated where you have a foundation and assemble it. Once you have an idea of the geotechnical conditions, the risk is just less.
There’s also the permitting process, which can be very challenging. How do you not interrupt the marine ecosystem? That’s something the regulators pay attention to. It’s definitely more than an onshore project, which means you need other mitigants for the lender to feel comfortable.
With respect to the permitting risk, how much of that is the risk of opposition from vacation towns, environmentalists, fisheries?
To be honest, we usually come in after all the critical permitting is in place, before money is given by a lender, but I also think that on the government’s side, in Europe at least, they probably have to encourage the development. And to put out an auction for an area you can build an offshore wind project, they must’ve gone through their own assessment, right? They can’t put out something that they also think may hurt an ecosystem, but that’s my speculation.
A country that did examine the impacts and offer lots of ocean floor for offshore is the U.S. What’s your take on offshore wind development in our country?
Once again, because we’re a rating agency, we don’t have much insight into early stage projects. But with that, our view is pretty gloomy. It’s like, if you haven’t started a project in the U.S., no one is going to buy it. There’s a bunch of projects already under construction, and there was the Empire Wind stop order that was lifted. I think that’s positive, but only to a degree, right? It just means this project under construction can probably go ahead. Those things will go ahead and have really strong developers with strong balance sheets. But they’re going to face additional headwinds, too, because of tariffs – that’s a different story.
We don’t see anything else going ahead.
Does the U.S. behaving this way impact the view you have for offshore wind in other countries, or is this an isolated thing?
It’s very isolated. Europe is just going full-steam ahead because the advantage here is you can build a wind farm that provides 2 or 3 gigawatts – that’s just massive. China, too. The U.S. is very different – and not just offshore. The entire renewables sector. We could revisit the U.S. four or five years from today, but [the U.S.] is going to be pretty difficult for the renewables sector.