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Headaches, coughs, and questions linger.
This time last year, the 151 cars of Norfolk Southern train 32N were still rolling along somewhere between Madison, Illinois, and Ohio’s eastern border. The train had suffered a brief breakdown on its northeast journey to Toledo, where a new crew came on before the double locomotives turned southeast, following the shore of Lake Erie into Cleveland, a metropolitan area of 2.18 million residents. It’d have been an irritating train to encounter at a railroad crossing: It stretched almost two miles long.
32N also weighed 18,000 tons, and in its 20 hazardous material tank cars, it carried some 700,000 pounds of vinyl chloride, a known carcinogen, which had originated in a chemical plant outside of Houston — a crucial hub in the American plastics machine, booming thanks to cheap shale gas. Some rail workers reportedly referred to the train as “32 Nasty,” due to its reputation for being difficult to handle.
On February 3, 2023, around 8:12 p.m., 32N passed a metal processing plant in Salem, Ohio, where surveillance footage showed flames and sparks coming from the wheels of one of the cars. About half an hour later, 38 of its cars derailed due to an overheated wheel bearing that engineers detected only after it was too late to stop the rupture. Eleven of the derailed cars carried hazardous materials, which immediately began leaking into the soil, nearby water, and air. The train came to rest a little less than 200 miles away from its final destination, abruptly terminating in a burst of flames in East Palestine, Ohio, population 4,700.
A year on, what we still don’t know about the Norfolk Southern derailment is almost as shocking as what we do. For all the attention of the Environmental Protection Agency, which was on site almost immediately after the accident, there are glaring pieces of information missing: the concentration of the chemicals locals were exposed to; how much of the surrounding environment is still polluted; and what health issues could still arise. Even “the plan for documenting and responding to long-term health effects experienced by residents is still being ironed out,” Bloombergreports, 364 days later.
Days after the initial derailment and the town’s first round of evacuation orders, emergency responders and Norfolk Southern made the decision to vent and then ignite the train’s remaining vinyl chloride days later, reportedly to prevent an explosion. This sent an alarming black plume into the sky over the town. Locals subsequently reported headaches, nausea, rashes, and coughs, among other ailments; some said they saw animals get sick or die. “We basically nuked a town with chemicals so we could get a railroad open,” one hazardous materials expert toldThe Associated Press in the aftermath.
Former President Donald Trump visited three weeks after the derailment to hand out Trump-branded water bottles and tell the residents, “You are not forgotten.” Marianne Williamson, who is mounting a longshot challenge to President Joe Biden in the 2024 Democratic primary, recalled to Heatmap last summer that on her own visit after the disaster, “I saw the frustration, the bitterness, the despair, and in some cases, the hopelessness of people who had been not only neglected, abandoned, abused, and traumatized by Norfolk Southern, but had been re-traumatized by the neglect of their state and federal government.” Transportation Secretary Pete Buttigieg visited the day after Trump; Biden is expected to make his first visit to the disaster zone this month.
Despite bipartisan hand-wringing, little has been done to prevent another disaster. A rail safety bill that would enhance safety protocols for trains carrying hazardous materials sponsored by Ohio’s Senators, Democrat Senator Sherrod Brown and its Republican JD Vance, has yet to go to the floor. Experts don’t believe it will get the nine necessary Republican votes to advance, partly because Republican Senate Leader Mitch McConnell opposes it.
Yet Toxic-Free Future reports that some 3 million people live along vinyl chloride transportation routes between the plants in Texas and the plastic factories in New Jersey, and train derailments have been on the rise.
Politicians and pundits will mark Saturday’s derailment with their cases and appeals for this and that. But locals are uncomfortably aware that it will be years more before they know what their lingering coughs and headaches mean — for them, for their children, and everything else attempting to live in their town. Whatever eventually becomes clear may be a help to others down the line, but will likely come too late for East Palestine.
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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.”