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Sparks

Los Angeles Spreads the EV Wealth Around

Officials announce higher rebates and new fast chargers in underserved areas of the city.

Los Angeles.
Heatmap Illustration/Getty Images

Los Angeles officials on Thursday announced a plan to make the clean energy transition cheaper for low-income residents, The New York Timesreports. “Working families in our city need to be assured that our city’s clean energy future won’t leave them trapped in the past,” Mayor Karen Bass said. “Many working families — some working two to three jobs to make ends meet — won’t buy or lease EVs if they don’t have access to convenient, timesaving, cost-saving places to charge them.”

The move comes in response to a study, also released Thursday by a coalition of city, state, and national groups, showing that most of the money for Los Angeles’ green incentives has so far flowed to its wealthier residents. From 1999 to 2022, for instance, just 38% of the $340 million invested in residential solar panels went to disadvantaged communities. And of the $5 million in electric vehicle rebates given from 2013 to 2021, just 23% went to underserved communities. The new plan will offer qualified buyers $4,000 toward the purchase of used EVs, up from $2,500, and install fast chargers in areas that have so far received little attention from private industry. The arrival of cheaper EVs next year should also help.

Los Angeles isn’t alone in tackling the issue of an equitable energy transition. Michigan recently proposed a suite of ambitious climate laws, one of which would establish a Just Transition Office to help workers hurt by decarbonization. New York State’s Climate Leadership and Community Protection Act, passed in 2019, requires that 35% to 40% of “benefits from investments in clean energy and energy efficiency programs” go to disadvantaged communities. Even earlier, Minneapolis designated an area in its economically troubled north as The Northside Green Zone, which involves “a plan of action to improve environmental and population health, and social, economic and environmental justice.”

Such efforts will be crucial in the coming years, as financially strapped homeowners grapple with the high up-front costs of the clean-energy conversion, experts told the Times. “In order to reach a 100% clean energy transition you really need to bring everyone along,” said Kate Anderson, of the National Renewable Energy Laboratory, one of the authors of the study. “It’s going to depend on everyone making changes in their households. The affordability piece is a huge challenge.”

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Sparks

The Mad Dash to Lock Down Biden’s Final Climate Dollars

Companies are racing to finish the paperwork on their Department of Energy loans.

A clock and money.
Heatmap Illustration/Getty Images

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.

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Sparks

Treasury Finalizes Another IRA Tax Credit Before You Know What

The expanded investment tax credit rules are out.

The Treasury Department building.
Heatmap Illustration/Getty Images

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.

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Sparks

Trump’s OMB Pick Wants to Purge the Government of ‘Climate Fanaticism’

Re-meet the once and future director of the Office of Management and Budget, Russell Vought.

Russ Vought.
Heatmap Illustration/Getty Images, Library of Congress

President-elect Donald Trump spent the Friday evening before Thanksgiving filling out nearly the rest of his Cabinet. He plans for his Treasury secretary to be a hedge fund manager who’s called the Inflation Reduction Act “the Doomsday machine for the deficit”; he’s named a vaccine safety skeptic to lead the Centers for Disease Control and Prevention; and his pick to head the Department of Labor is a Republican congresswoman who may want to ease the enforcement of child labor rules if confirmed.

And — in one of the most consequential moves yet for America’s standing in the fight to mitigate climate change — Trump also named Russ Vought to lead the Office of Management and Budget. The decision comes as no surprise — Vought served as deputy director of the OMB under Trump in 2018 and took over the top job in 2019, serving until the end of Trump’s first presidency. The strategic communications group Climate Power had been sounding the alarm on his potential return to the office since this spring, which included sharing their research on him with me.

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