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A year after the federal government promised new rules governing how electric vehicles can qualify for tax credits, the Treasury Department’s official guidance is finally here.
The Biden administration rolled out the guidance last week, including tests to determine if a car contains enough U.S.-made components to qualify for all or some of a $7,500 credit. Vehicles that contain parts or materials from China and a few other countries won’t qualify for full incentives.
The Treasury Department hasn’t yet published a list of what EVs meet the new requirements, which would take effect next year. But an auto industry trade group said the 20 models that currently qualify for federal incentives will continue to do so, E&E News reports.
The new rules could cause problems for Ford and other automakers that have licensed Chinese technology for their EVs. They could lose out on a piece of $6 billion in federal grants for U.S.-made EVs, and sales could suffer in comparison to automakers that qualify for federal tax credits.
Meanwhile, some car buyers could still be apprehensive about the lack of public EV chargers in many parts of the country. Two years ago, Congress allocated $7.5 billion to build tens of thousands of EV chargers, but as Politico reports, the program still hasn’t funded any charger projects, and states and charging companies say complicated requirements to receive the funds are to blame.
How the Biden administration navigates EV chargers, tax credits and more will determine just how quickly Americans decide to swap out their gas cars — and whether the White House can reach its EV deployment goals.
🏭 Methane in the crosshairs: The U.S. EPA unveils new methane emissions standards that will require oil and natural gas producers to upgrade equipment and regularly inspect their pipelines and infrastructure for leaks. (E&E News)
💡 Time to get efficient: The world needs to double the pace at which it’s deploying energy efficiency measures, such as installing heat pumps and LED lightbulbs, if it hopes to meet global climate goals, the International Energy Agency says. (Reuters)
☑️ Biden’s climate to-do list: Environmental advocates release a to-do list of climate actions they want President Biden to take in the last year of his term, including a slew of EPA regulations and other Cabinet-level actions. (Washington Post)
🚘 UAW’s next step: After a successful strike against the Big Three automakers, the United Auto Workers announces plans to organize workers at three non-union electric vehicle companies. (CNN)
☀️ Made in the USA: A solar company says it’ll soon build arrays out of U.S.-produced materials, which could be the first projects to qualify for federal tax credits with domestic production requirements. (Bloomberg)
📉 California’s solar collapse: California rooftop solar installations have plummeted by up to 85% since regulators slashed the rates utilities pay for excess solar power sent back to the grid, according to an industry group. (Canary Media)
👷Tribes turn to solar: Indigenous entrepreneurs in North Dakota and elsewhere are building solar farms on reservations, and training tribal members to install them. (BBC)
World leaders gathered in Dubai last week and through the weekend to discuss climate action. Here are some of the highlights:
A 128-year-old Cleveland-area industrial equipment manufacturer is among the newest makers of fast chargers for the growing electric vehicle market.
Lincoln Electric’s new Velion DC fast charger adapts and adds to technology the company has used for its welding machines and other heavy-duty power equipment.
The innovation is an example of how more U.S. manufacturers outside of the energy sector are beginning to find sometimes unexpected opportunities to participate in the country’s growing clean energy economy.
It all started almost two years ago when a group of senior engineers walked into president and CEO Chris Mapes’ office and explained the similarities between direct-current electric vehicle chargers and the plasma and electronics equipment the company has long manufactured, adding: “We think we can make these.”
“If you were to open up a welding machine or a plasma cutting machine, you would see power electronics,” Mapes explained, following a ribbon-cutting ceremony in Euclid, Ohio, last week for the company’s new fast charger product. Software engineering works with printed circuit boards to manage power, similar to what happens in a DC fast charger.
The company already has its own printed circuit board manufacturing facility. The innovation challenge was developing software to let a charger interface with any electric vehicle. When people plug in a vehicle, it and the charger go through a series of electronic messages and “handshakes.” Those share information about the car and the charger, as well as details about how much electricity is needed, signals and feedback for a precharge test, and then the actual charge.
Reliability has been a challenge for electric vehicle charging. Drivers can plan trips to stop at charging stations along the way, but out-of-order chargers can cause frustration and derail trips. That all adds to range anxiety.
Steve Sumner, vice president for corporate innovation, said some other EV chargers “were born out of designs and manufacturing strategies that were more appropriate for lab-grade equipment — something that would see its whole life inside in perfect conditions.” In the real world, rain, snow, cold temperatures, hot temperatures, wind, dust and other factors can mess with electronics.
“What Lincoln Electric’s really known for, besides being a very good power conversion company, is making devices that last and live their whole lives outside,” Sumner said, noting that the company’s industrial products have been used on ships, in deserts and even in Antarctica. Likewise, the new charger is “purpose-built for ruggedness in the field.”
One reason for that reliability is that the company coats its printed circuit boards with a clear plastic epoxy. Two circuit boards go together in a metal casing to make 50-kilowatt modules.
Three of those modules make up the heart of the charger’s power tower, which typically sits behind a fence near a grid connection. The relatively few electrical connections between the modules and other parts of the equipment also provide protection from the elements.
“Because it’s so ‘simple’ and clean in design, and well protected, that’s where we believe the inherent reliability comes from,” Sumner said.
As an established company that began in the United States, Lincoln Electric was already compliant with Federal Highway Administration’s Buy America standards, levy standards and other regulatory programs, said Sheila Cockburn, who works with the U.S. Department of Transportation’s Joint Office of Energy and Transportation that advises on those standards.
“They’re leveraging their current technology to enter a newer market,” Cockburn said. “And they’ve been smart in being able to see the vision of where things are going and being able to pivot to use what they have to supply the new market.”
The move is an example of how companies can play a role in the clean energy economy, even if they aren’t currently part of the energy sector, said Rick Stockburger, president and CEO of BRITE Energy Innovators, based in Warren, Ohio. The organization acts as a hub to provide business and technical expertise to entrepreneurs looking to serve the energy sector.
“It’s exactly the type of leadership we need to see from all of our legacy manufacturers in developing new products,” Stockburger said.
The Bipartisan Infrastructure Act, the Inflation Reduction Act, and other recent federal policies and funding programs can help private manufacturers make that transition.
“If you look at what came down in legislation from the past three years, we’re not leaving behind American manufacturing like we did with the solar tax credits in the Obama administration,” Stockburger said. “We put American-made caveats in all of these bills.” And he looks forward to seeing what comes next from other companies.
“The one thing I’ll never underestimate is the power of American innovation,” Stockburger said. “There are just really, really smart people that look at opportunity and frankly are interested in seizing it.”
A year after the war in Ukraine drove record-high fossil fuel prices for winter heating in oil-dependent Maine, demand for efficient electric heat pumps remains steady despite new challenges.
Spikes in fuel prices don’t tend to immediately translate to increased heat pump demand, officials said, but rather may spark new interest in oil and gas alternatives and other ways to cut back on heating costs.
“We do see a lot more visits (after a price spike) to the Efficiency Maine website and call center, looking for information about rebates and how to find a contractor,” said Michael Stoddard, the executive director of the quasi-governmental agency, which provides rebates for energy-saving upgrades.
In the months after such a spike, he said, heat pump contractors may start to get busier with new jobs.
“Traditionally these consumers were curious to learn if they could save money by switching to propane or natural gas, or burning firewood or pellets,” he said. “But now it seems they are mostly interested in switching to heat pumps because they cost less to operate and deliver air conditioning in the summer.”
Many Maine contractors say summer is their busiest time for this reason, and have been booked out months on heat pump installations since well before heating oil prices neared $7 a gallon a year ago.
“I am busy all year round,” said Sam Black, the owner and operator of Blacks Heat Pumps in Glenburn. He said he’s already had a few prospective customers ask about new rebates expected from the Inflation Reduction Act in 2024. Maine is still deciding on how it will allocate billions in funding from that package.
A note on the website of Midcoast Energy Systems, an HVAC contractor based in Damariscotta, Maine, says “manufacturer and distribution supply chain issues” have been making it tough to maintain a consistent heat pump inventory.
“Unfortunately, this does delay our ability to schedule installs as quickly and regularly as we’d like,” the company’s website says. “We are, however, doing the best we can with these market restrictions to work with customers as efficiently as possible.”
In the year since last winter’s fuel price crisis, Black has also heard “a lot of complaining” from his heat pump customers about high electricity rates. Already among the highest in the contiguous U.S., these rates increased sharply in Maine in January 2023.
The increase was largely due to the same geopolitical factors that made heating oil so expensive last winter — constrained global fossil fuel supplies and high prices, especially for fracked gas, which powers much of the New England grid and also supplies far more heating in most of the region outside Maine.
By the same token, Maine regulators announced this week that electric rates will be reduced in 2024. “This is a much different scenario than we saw last year at this time, with natural gas prices coming down significantly since then,” said state Public Utilities Commission chair Phil Bartlett in a statement.
People who installed a heat pump in summer 2022, Black said, may have been caught off guard by a high electric bill after the new rates took effect at the height of the cold season — though an electric bill for one or two home heat pumps would still be far less than a typical oil bill, even at more average prices.
The Maine Governor’s Energy Office tracks heating fuel prices on a weekly basis. They reported that the high heating oil price in the state was $4.65 per gallon as of Nov. 13, 2023, compared to $6.74 in the same week in 2022. In that week, even the low-end oil price was higher than the current highest price in the state.
Kerosene prices were above $7 per gallon last November and now stand at $4.99 on average in Maine. Propane for home heating has decreased in price by about a quarter, down to just over $3 a gallon to end November.
“As we approach winter, energy prices are expected to be lower than the prior two years,” said energy office director Dan Burgess in a Nov. 9 press release announcing a state guide to saving money on home heat. “However, volatile energy markets around the world continue to impact heating bills here at home.”
Maine relies more on oil for home heat than any other state, but this is slowly changing. The state said in its press release that about 56% of Mainers used heating oil in 2022, down from more than 60% in much of the past decade, according to the U.S. Energy Information Administration.
Electric heat users increased from about 6% of the state’s population to nearly 11% in the same period.
“From 2018-2022, Maine saw a 10 percent decrease in heating oil as a primary fuel for home heating with an increase in households utilizing electricity during that time,” the state energy office said in its release. “The period coincides with record adoption of high efficiency air source heat pumps in Maine.”
Efficiency Maine did not have data immediately available to illustrate the relationship between heat pump demand and fossil fuel prices. But the agency told The New York Times that as of early November, they’d given rebates for more than 32,000 new heat pumps so far in 2023, compared to 28,000 last year.
The state announced this past summer that it had surpassed a target of installing 100,000 new heat pumps by 2025. Gov. Janet Mills upped the goal to 175,000 more heat pumps by 2027.
The state climate plan, due for its first four-year update at the end of next year, seeks to encourage more multi-unit or “whole home” heat pump systems as total fossil fuel replacements by 2030. Officials have said these goals are directly based on modeled reductions in carbon emissions.
EMISSIONS: The U.S. EPA is set to release new methane regulations tomorrow as the oil and gas industry contends the proposed rules clash with other federal and state standards. (E&E News)
SOLAR: California rooftop solar installations have plummeted by up to 85% since regulators slashed net-metering rates in April, putting some 17,000 jobs at risk by the end of the year, according to an industry group. (Canary Media)
CLIMATE: Environmental advocates release a to-do list of climate actions they want President Biden to take in the last year of his term, including a slew of EPA regulations and other Cabinet-level actions. (Washington Post)
ENVIRONMENTAL JUSTICE: The Federal Energy Regulatory Commission has taken steps toward including environmental justice in its decisions but still has further to go, advocates say. (Utility Dive)
WIND:
POLITICS:
ELECTRIC VEHICLES: General Motors’ chief financial officer expects the automaker to start making a profit on electric vehicle sales in 2025 as it produces higher-margin models. (Associated Press)
COAL: West Virginia’s fund to clean up abandoned coal mines is sagging so badly that even one bankruptcy by a significant mining company could wipe it out and leave state taxpayers stuck paying for cleanup costs. (Mountain State Spotlight/ProPublica)
OIL & GAS:
STORAGE: Georgia leans into battery storage to leverage around-the-clock power from its rapidly growing solar energy sector, highlighted by Georgia Power’s impending completion of a 65 MW battery facility. (Atlanta Journal-Constitution)
GRID: Utility regulators in PJM’s region urge the grid operator to shift from a reactive planning approach to more proactive and affordable ways of planning grid reliability. (Utility Dive)
NUCLEAR: TerraPower and a mining company partner on an effort to restore domestic uranium supply chains and to fuel the Bill Gates-backed firm’s proposed advanced nuclear reactor in Wyoming. (Cowboy State Daily)
SOLAR: Data show new California rooftop solar installations have plummeted by up to 85% since regulators slashed net-metering rates in April, potentially wiping out some 17,000 jobs by the end of the year. (Canary Media)
ALSO:
WIND: California officials remain confident in offshore wind’s future in the state even though the industry is experiencing setbacks on the East Coast. (San Diego Union-Tribune)
TRANSMISSION: The federal Bureau of Land Management seeks public input on proposed changes to designated Western energy corridors aimed at expediting clean energy transmission development. (RTO Insider, subscription)
TRANSPORTATION: Colorado transportation officials say proposed passenger rail in the northwestern part of the state could be operational in less than a decade. (CPR)
UTILITIES:
NUCLEAR: TerraPower and a mining company partner on an effort to restore domestic uranium supply chains and to fuel the Bill Gates-backed firm’s proposed advanced nuclear reactor in Wyoming. (Cowboy State Daily)
STORAGE:
CARBON CAPTURE: New Mexico researchers study the feasibility of geologically sequestering captured carbon in the San Juan Basin oil and gas fields in the northwestern part of the state. (Santa Fe New Mexican)
HYDROPOWER: California lawmakers work to expedite wave energy development, but industry analysts say grid-scale implementation is at least a decade away. (CalMatters)
GEOTHERMAL: A western Colorado town begins studying the feasibility of developing a geothermal loop district heating system. (Aspen Times)
The following commentary was written by Alli Gold Roberts, state policy director, and Zach Friedman, federal policy director, at Ceres. See our commentary guidelines for more information.
We are at a crucial period in the shift to electric vehicles. A growing number of companies are moving to electrify their corporate fleets to reduce costs on fuel and maintenance, and the auto industry is making significant investments into battery and vehicle production in the United States — recognizing they need to stay competitive in a changing global market toward clean cars and trucks.
Ambitious public policy — from federal tax credits to the clean vehicle standards adopted by a growing number of states — is helping to grow the market for electric vehicles. Still, there is more work to be done to create the strong, advanced domestic auto and trucking industries we need to meet the growing demand. Achieving that vision will require more collaboration, investments, and policy action. And much of that must go toward building out the infrastructure to support electric vehicles — the charging stations, the supply chains, the workforces, and more.
That is why Congress rightly included strategic investments in domestic electric vehicle and charging infrastructure manufacturing and deployment in the bipartisan Infrastructure Investment and Jobs Act of 2021, a historic investment in U.S. competitiveness that was signed into law two years ago this week.
The law delivered on a generation of urgent calls to invest in U.S. infrastructure, and has already begun delivering billions upon billions of dollars to upgrade and modernize bridges, roads, tunnels, railways, airports, electric grids, water pipes, and much more. Widely supported by the public and private sectors alike, the bipartisan achievement is a testament to the virtue of good-faith collaboration to address a long-term challenge. And that includes building the infrastructure we need to create a more sustainable and forward-looking transportation system by supporting the growth of electric vehicles.
The law’s investments include programs designed to increase ease of electric vehicle charging. Most prominently is the creation of the first-ever national electric vehicle charging network, a $7.5 billion partnership between the federal and state governments. By helping to fund a half-million new chargers across the nation’s highways, the National Electric Vehicle Initiative will provide predictability to motorists that they will be able to charge up on the interstate system every 50 miles or so. Every state submitted a plan to participate in the program, with Ohio as the first to break ground at a charging station near Columbus in October and more states quickly following suit.
The package also brought a $7 billion investment to U.S. electric vehicle supply chains, helping to ensure the most crucial electric vehicle components are made, processed, and assembled here in the U.S. These programs will bolster U.S. energy security by reducing our dependency on international markets as electric vehicles grow in popularity.
And the law’s electric vehicle investments provide a robust foundation for the market to build upon. Manufacturers like Siemens, for example, have expanded their footprint in the U.S. to support the build-out of the charging network, including at a new manufacturing hub in Texas. And through their strike this fall, the United Auto Workers won union representation at battery plants that received investments under the bipartisan infrastructure law — including at Ultium Cells, a joint venture from General Motors that received a $2.5 billion Department of Energy loan for facilities in Michigan, Ohio, and Tennessee. This victory supports the creation of good-paying jobs and ensures workers and communities benefit from the clean vehicle transition.
At Ceres, the sustainability nonprofit where we each work with companies to support public policies that are good for the climate and the economy, we have seen firsthand as businesses increasingly prioritize technology and solutions that are good for the climate and for their bottom lines. That is why they are increasingly vocal advocates for public policies that help expand electric vehicle growth and reduce vehicle miles traveled.
In 2022, they pushed for passage of the nation’s largest-ever federal climate and clean energy investment, the Inflation Reduction Act and its tax credits designed to encourage both manufacturing and sales of electric vehicles in the U.S. — leading to even greater private investment in electric vehicle manufacturing and infrastructure. And this year, leading businesses are pushing the U.S. Environmental Protection Agency to finalize strong anti-pollution standards that would further accelerate the widespread adoption of electric and other clean vehicles, while also providing certainty for their investments, and strengthening the competitiveness of the U.S. auto and trucking industries.
Businesses have long been among the strongest champions of upgrades to the infrastructure the economy depends on, as seen in the strong corporate support for the 2021 infrastructure bill. And just like roads and bridges are key drivers of economic activity, electric vehicle growth and the ambitious policies to encourage it are only possible with the right infrastructure in place. Two years in, thanks to continued partnership between the public and private sectors, the Infrastructure Investment and Jobs Act is now beginning to deliver it.
New Hampshire’s Department of Energy has requested a $70 million federal grant to expand community solar programs for low-income residents, an infusion of funds that supporters said could lower energy bills, accelerate decarbonization, and perhaps even catalyze the development of much-needed affordable housing.
“It’s just going to be life-changing for the communities we do this with,” said Jeannie Oliver, a senior director at the New Hampshire Community Loan Fund, which partnered with the state on the proposal.
The request is part of the Environmental Protection Agency’s Solar for All competitive grant program, created under the umbrella of the 2022 Inflation Reduction Act. The goal of the $7 billion program is to increase access to solar for people living in low-income and disadvantaged communities. Up to 60 grants will be awarded.
Community solar is a model in which energy consumers own a stake in or subscribe to a share of output from a solar development. They then receive credits for a portion of the power sold back to the grid, offsetting their utility bill. Community solar is often considered an option for consumers who can’t or don’t want to install solar on their own home, but who still want to participate in the environmental or financial benefits of renewable energy.
New Hampshire authorized community solar in 2013, but it hasn’t gotten much traction. In the state, larger, non-municipal solar projects are only credited for generation on projects up to 1 megawatt in capacity. At that size, however, the finances just don’t work for developers, said Sam Evans-Brown, executive director of the nonprofit Clean Energy New Hampshire. It’s not until an array reaches around 3 megawatts – with net metering – that the economics start to make sense.
Reaching lower-income residents with community solar is even trickier. There are no easily available lists of what households qualify as low or moderate income, so acquiring customers can be prohibitively difficult.
An influx of federal money could change that equation. The grant money would be used to expand the existing program and to create new ones targeting affordable housing and resident-owned manufactured housing communities. The proposal calls for funding to be split between the state energy department, the New Hampshire Community Loan Fund, and New Hampshire Housing.
If the grant is awarded, these partnerships will be key to maximizing the impact the funds can have on low- and moderate-income residents, said Joshua Elliott, director of the division of policy and programs at the New Hampshire Department of Energy.
“It made sense to leverage existing relationships,” he said. “We thought meeting people where they are rather than having them come to us whenever possible would make for an attractive proposal.”
The portion of the money going to the state energy department would be used to expand the existing program for low-to-moderate-income community solar. The program will fund some of the project if a majority of the power generated benefits low-income households and up to 100% of a new development if at least 80% of the participating households qualify as low-income.
The state program has awarded $1 million each of the last two years. Last year, it funded four developments with a total of 61 households participating. More money could help both by funding more projects, and making it easier for potential developers to plan, Elliott said.
“Having additional funding available consistently helps these organizations as they are trying to sketch out a project and figure out if it works,” Elliott said.
The Community Loan Fund’s portion would be used to help resident-owned manufactured home communities build solar arrays to service residents. A resident-owned community is a manufactured home park in which the residents have come together as in a cooperative to buy the land on which their homes sit, creating for themselves a more stable housing future.
The community loan fund has been working on developing community solar with these groups since 2018 when it led the creation of an array in the western New Hampshire city of Lebanon. Today, they have four projects either in operation or under construction.
“The reason that has been slow is that the financial barriers to low income solar are pretty immense,” said Oliver, who leads the organization’s resident-owned communities program. “What the Solar for All program would do is really help us scale up.”
The remaining money would flow through New Hampshire Housing, a public corporation that promotes housing affordability and access throughout the state. It already works closely with the state’s 18 public housing authorities, so it has relationships and experience with the low-income population the funded programs would be targeting.
Much of the New Hampshire Housing money would be used to connect renters in multifamily buildings with community solar.
Traditionally, bringing solar to renters has been difficult because of what is often called the split incentive – if tenants pay their own electricity bills, landlords have little motivation to spend money on solar panels when the renters will reap the financial benefits. The grant proposal would encourage landlords to take over tenants’ utility bills, and roll the cost into the rent, reflecting the discounts community solar would create.
“The Solar for All proposal takes a huge step in moving things in a more positive direction,” Evans-Brown said. “It’s giving landlords a carrot to figure this out.”
The EPA should be announcing the grant recipients in March 2024 and distributing the funds in July, Evans-Brown said. Solar projects using the money should start popping up by 2025.
If New Hampshire receives the grant, it could be transformative, supporters said, by both accelerating the state’s decarbonization efforts and making a significant difference for financially struggling households. In concert with other federal programs pouring money into home electrification and energy efficiency, the Solar for All funds could jumpstart significant and much-needed growth in green housing development, Evans-Brown said.
“The thing I am excited about is this influx of money is going to result in a large amount of multifamily, sustainable housing getting built that’s going to be really affordable,” Evans-Brown said. “I am really optimistic.”
Environmental groups filed an appeal Thursday, challenging recent decisions by an Ohio regulatory commission to allow drilling under a state park and two state wildlife areas.
Those decisions currently call for sections of Salt Fork State Park, Zepernick Wildlife Area and Valley Run Wildlife Area to be leased to the highest and best bidder, with the bidding period set to start in January.
Among other things, the groups say the Ohio Oil and Gas Land Management Commission failed to consider all of the factors it was required to weigh under state law. The groups also allege that the commission failed to provide an opportunity for public hearing under state law.
Plans to drill under Ohio state parks and wildlife areas were jump-started earlier this year by House Bill 507, which began as a two-page bill about poultry regulations and grew to more than 80 pages when lawmakers heaped in provisions about natural gas and other unrelated topics last December. Environmental groups challenged the constitutionality of the law earlier this year, and that case is still pending.
The new case appealing the commission’s decisions was filed on Nov. 30 with the Franklin County Court of Common Pleas. A notice of appeal was also filed with the Ohio Oil and Gas Land Management Commission.
Parties to the appeal include Save Ohio Parks, the Ohio Environmental Council, the Buckeye Environmental Network and Backcountry Hunters and Anglers. Lawyers at Earthjustice are acting as counsel, and the Ohio Environmental Council also has its own attorneys on the complaint.
HB 507 would have required approval of drilling under state-owned lands until the commission adopted a standard lease form and other rules to allow drilling on different parcels.
Now, under the law, Ohio statutory law calls for the commission to consider nine factors, including environmental impacts, effects on visitors or users of state-owned lands, public comments or objections, economic benefits and more. Commission Chair Ryan Richardson also recited those factors in an affidavit filed in the constitutional challenge case.
The opponents’ appeal alleges that the commission failed to duly consider all those factors. The commission also did not allow people attending the meetings to present testimony in opposition to particular proposals.
Even after the Ohio Oil and Gas Land Management Commission adopted rules this spring, comments by its members indicated they still viewed HB 507 as a legislative mandate preventing them from rejecting parcel nominations outright.
“We’ve been directed to open these lands up,” Richardson said at a Sept. 18 commission meeting.
In a similar vein, commission member Jim McGregor told the Energy News Network this summer, “we have a mandate from the legislature that says we shall lease public lands for fracking.”
The commission did not discuss all the statutory factors for voting either yes or no at its Nov. 15 meeting. Yet it voted to allow opening up lands under the state park and wildlife areas for bid next quarter. No written opinion explaining the decisions has been posted on the commission’s website.
“The commission is not required to submit a written opinion, and they are not expecting to write one,” said Andy Chow, spokesperson for the Ohio Department of Natural Resources, in response to a question by the Energy News Network the next day. “And there is no appeals procedure.”
“The Commission’s refusal to issue a written decision, failure to engage in meaningful discussion of the statutory criteria, and its belief that decisions are not appealable, show a concerning disregard for the process and rigor contemplated by their statutory mandates,” said Megan Hunter, a lawyer for Earthjustice who is representing opponents in the appeal and in the constitutional challenge case.
“As seen in the Commission’s meetings, the Commission did not publicly consider all nine statutory factors prior to opening up Salt Fork State Park, Valley Run Wildlife Area, and Zepernick Wildlife Area for oil and gas development. The Commission should be held accountable for this failing,” she added.
An unlikely collaboration between a Kentucky coalfield county and Kentucky’s largest city began when a former high school English teacher, Megan Downey, walked into the Lawrence County courthouse in Louisa in August.
Inspired by a personal desire to find ways to tackle the impacts of climate change, Downey had launched a nonprofit called The Solar Collaborative last year in Virginia dedicated to helping Appalachian communities transition to renewable energy.
She had been pitching an idea to local governments across Eastern Kentucky: Seek some of the billions in federal funding up for grabs in the Solar for All competition. Through the competition, the U.S. Environmental Protection Agency plans to invest $7 billion through 60 grants to states, local governments, nonprofits and tribal governments to “increase access to affordable, resilient, and clean solar energy for millions of low-income households.” The money comes from the Inflation Reduction Act’s Greenhouse Gas Reduction Fund.
When Downey talked with Deputy Judge-Executive Vince Doty about the opportunity, he agreed “within minutes” to sign up.
“He’s the biggest advocate, I think, in the whole region for this type of project,” Downey said. “A lot of low-income communities don’t have access to that economic savings that’s associated with solar, and so it’s just one more way in which a wealth gap is continuing to increase.”
Doty brought other Eastern Kentucky counties on board for an application to the competition; judge-executives in Lawrence, Johnson, Martin, Floyd, Pike, Boyd, Greenup counties all wrote letters of support. After learning they had both submitted letters of intent to apply for the federal funding, the mountain counties teamed up with Louisville’s government to submit a unified application that could provide affordable access to solar energy for thousands of low-income homes in Kentucky from its largest cities to its rural Appalachian counties.
It’s one of two competing applications from Kentucky. The other was submitted by the Kentucky Energy and Environment Cabinet; solar advocates say it could be a significant boost for the use of residential solar across the state.
Advocates argue more distributed solar, for example via solar panels on rooftops, could mean utility bill savings for Kentuckians and a curbing of greenhouse gas emissions connected to Kentucky’s fossil fuel-reliant electricity grid.
For Doty, seeking funding for solar was foremost about easing the financial burden of his constituents in a region that faces continued economic challenges from the decline of the coal industry. Lawrence County is one of 20 Eastern Kentucky counties served by electric utility Kentucky Power, which has the highest monthly residential utility bills in Kentucky, according to a state analysis.
“We always try to put our citizens first,” Doty said. “If there’s a chance that we can save somebody $300 a month off their electric bill, that’s worth trying for.”
Both the Louisville-Eastern Kentucky and state government proposals are wide in scope, highlighting specific ideas for how to use tens of millions of dollars in federal funding. Both applications could mean integrating solar energy into thousands of homes, whether through direct ownership of rooftop solar installations or better access to existing or planned community solar projects.
The Louisville-Eastern Kentucky application is asking for $150 million to be spent over five years, proposing:
Downey said Doty had advocated in a number of meetings as the Louisville-Eastern Kentucky application was being developed that it was a “non-negotiable” that Kentuckians should own the solar installations themselves
The application anticipates, if awarded funding, at least a 20% energy bill reduction for approximately 7,300 households in Kentucky taking part in the proposal. Households that ultimately receive a six-kilowatt solar installation for free could see energy bill reductions up to 50%, according to the application.
“If you put solar on your home, you immediately have benefits economically from the savings that you garner. It also increases the value of your home,” Downey said. “So this has the potential for a really significant impact if you look at it over 25 years as far as wealth generation goes.”
The Louisville-Eastern Kentucky application estimates the results of the funding would add another approximate 44 megawatts of distributed solar power onto Kentucky’s grid. That would increase distributed solar in the state by about 70%, with 63.5 megawatts of distributed solar already in Kentucky.
The application also estimates about 1,300 “green jobs” will be created through the proposed solar investment. Steve Ricketts, the board chair of the advocacy group Kentucky Solar Energy Society, said while construction work associated with larger, utility-scale solar projects is temporary, ending once the project is completed, those workers also can work on installing solar in their own communities.
“They can be working on homes in their own town, they can be working on businesses and around town. So the two are incredibly complementary, and, frankly, have to go together to make it all work,” Ricketts said.
Sumedha Rao, the executive director of Louisville Metro Government’s Office of Sustainability, said the estimates of solar power added, households helped and renewable energy jobs created through the funding proposal are somewhat conservative and that the impact of the grant could be even more.
Given that Kentucky has historically relied on fossil fuels, she said, a transition to renewables can be a “scary proposition” for some Kentuckians. But she believes the Solar for All grant competition has a lot of upside with helping the state transition economically.
“We really feel like this is something that can have a massive impact for years to come,” Rao said.
The Solar for All application submitted by state officials leads with its own idea of how residential solar can be deployed across the state, particularly in areas hit by devastating floods and tornadoes in recent years.
Requesting $100 million from the Solar for All competition, one of the state’s proposals is to put residential solar and an electricity battery storage system on 850 “disaster recovery” homes that could result in 70% utility bill savings for each home — or up to $1,000 in annual bill savings per home — over the course of 20 years.
For Kenya Stump, the executive director of the state’s Office of Energy Policy, eliminating most of the energy bills is just one way to help people recovering from natural disasters who may have lost every material thing they own.
“If they can live in a home from here on out that is more resilient, that also has the burden of that kind of cost is no longer there — shouldn’t we kind of strive for that?” Stump said.
Stump said in many instances low-income Kentuckians live in homes that are old and energy inefficient, leading to higher energy usage and subsequently higher utility bills. She said by enrolling LIHEAP recipients in community solar programs — such as ones offered by East Kentucky Power Cooperative and Louisville Gas and Electric and Kentucky Utilities (LG&E and KU) — they can get a direct credit on their bill and get more value from the utilized renewable energy.
“The energy regardless of the source will just still leak out” of poorly insulated, inefficient homes, Stump said. “We also hope that this will incentivize the growth of more municipal and utility community solar offerings that would be eligible to have LIHEAP carve-outs as well.”
Some stakeholders involved in the Louisville-Eastern Kentucky application, while supportive of community solar projects in general, were skeptical of using Solar for All funds on such projects out of concerns that some community solar models, specifically LG&E and KU’s “Solar Share” program, subsidize an asset of an investor-owned utility with taxpayer funds.
Stump said while stakeholders may wish some existing community solar projects were designed differently, it’s what is currently offered by Kentucky utilities and “can provide some benefit” to low-income Kentuckians that haven’t been able to take advantage.
The two Kentucky applications submitted to Solar for All do align on ways to boost the workforce needed to install residential solar on homes, though Stump added that developing a renewable energy workforce needs to be paced with the deployment of solar.
“That’s our greatest challenge is to make sure we get the timing right so that it aligns with the deployment of projects. We don’t want to give someone hope, and then there not be any work,” Stump said.
For Stump, the Solar for All competition is just one federal program and incentive among many that will ultimately “shift and transform our energy landscape.”
Lane Boldman, the executive director of the environmental advocacy group Kentucky Conservation Coalition, believes both applications are “really solid” but points out the federal government is only giving out 60 grants. Competition for the grants is stiff: More than 30 states have submitted notices that they’re applying along with a number of local governments and nonprofits across the country.
Lawrence County and Louisville decided to collaborate, in part, to increase the chances that their Solar for All application would get awarded. The stakeholders with Lawrence County and Louisville also tried unsuccessfully to unify their application with the state’s proposal.
Boldman said a big question became if a single grant application could ask for enough funding to cover all of the “great ideas” being proposed for the competition.
“The decision really was that it was better to keep them as two separate applications,” Boldman said. “I have to say that I think both grants are very strong and deserving, and so we just have to wait and see what the federal government decides.”
A group of Massachusetts solar installers are working with the state to modify fire codes that they say are too restrictive and are limiting the scale of residential solar arrays.
“We are not at the finish line, but both sides have been extremely cooperative and collaborative,” said Nick D’Arbeloff, vice president of commercial for SunBug Solar and the vice president of the Solar Energy Business Association of New England. “The dialogue is producing good results.”
At the heart of the debate are provisions of the most recent state fire code, which went into effect in December 2022.
For the first time, the code includes restrictions on the positioning of rooftop solar arrays intended to make it easier and safer for firefighters to move around on top of burning houses. The code calls for a setback from the ridgeline of a roof, leaving enough space for firefighters to cut into the roof to ventilate the home and allow smoke to escape. It also requires pathways through and around panels so firefighters can get where they need to go.
“It sets requirements on how much space is necessary or required to be there so firefighters can travel unimpeded by solar panels,” said Jake Wark, spokesman for the state Department of Fire Services.
The solar industry objected to the changes for a few reasons. The setbacks and pathways required mean reducing the total area of just about every rooftop array from 10% to 20%, and smaller arrays mean less revenue for installers. Some potential customers even pulled out entirely because the economics of the system didn’t work for them with fewer panels.
Some installers also objected that clearing so much room for firefighters isn’t necessary. All modern solar installations, they said, include a switch that can instantly stop the flow of any electricity through the panels, which would allow firefighters to easily and safely break through with a swing of an axe. The state, however, was not convinced these switches could be thrown quickly enough or provide enough safety.
“Panels always provide an electrocution hazard,” Wark said.
The suddenness of the new code also made for a rough transition, installers said. For years, similar rules have been part of the national model code many states use as a template for their own codes. In Massachusetts, however, the solar provisions had always been removed, with the understanding that the state building code would eventually address the issue, Wark said. So the solar rules in the new fire code were unexpected by many in the industry.
“The transition was absolutely awful, and we ended up having to redesign a lot of arrays,” said Mark Durrenberger, president of solar installation company New England Clean Energy. “The code we’re answering to is not entirely clear, so it leaves lots of room for interpretation”.
The municipal code officials in charge of inspecting solar installations were also caught somewhat unprepared. From town to town, building and fire inspectors interpreted the rules with different degrees of stringency. Sometimes, Durrenberger said, they just got it plain wrong – in one case applying the rules for residential installations to an array atop a barn – for example. For installers working on projects in multiple towns, the whole situation was rife with uncertainty.
“Fire chiefs weren’t necessarily as prepared as they perhaps should have been with regards to how best to review designs and enforce this new code,” D’Arbeloff said.
In the face of this upheaval, the Solar Energy Business Association of New England, MassSolar, and the Northeast Clean Energy Council reached out to the state to see if they could find a compromise. The Department of Fire Services agreed to create a working group, including representatives of the solar industry, to look for solutions. Several months in, the participants have made significant headway, and the solar industry has accepted the need to make some concessions.
“The solar industry’s concern was that we would be unable to put in place a system capable of offsetting the full load of the household as a result of these setbacks,” D’Arbeloff said. “While that still may be the case, we fully understand why compromise is called for here.”
Whatever adjustments to the rules come out of the process, both sides will have to take responsibility for making implementation go as smoothly as possible, D’Arbeloff said. The Department of Fire Services will need to offer additional training in the new code, but installers will also have to make sure their designs and drawings clearly communicate the ways in which their plans adhere to the rules.
There is still plenty of work to do, but Durrenberger is hopeful that a modified code will be in place some time next year.
“I suspect that there will be a lot of back-and-forth to try to refine the language,” he said “With luck, maybe at the beginning of next year, we’ll have a revised fire code that can take back some of the roof we lost.”
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