The Commodity Futures Trading Commission’s (CFTC’s) Division of Enforcement announced that it has established a new task force—the Environmental Fraud Task Force—to combat environmental fraud and misconduct in derivatives and relevant spot markets, including the carbon markets.
Power & Pipes
FERC, CFTC, and State Energy Law Developments
One week after the Commodity Futures Trading Commission’s (CFTC) Whistleblower Office issued an alert seeking tips on potential fraud and manipulation in the carbon markets, the CFTC chairman announced that the second voluntary carbon markets convening will be held on July 19.
The development of hydrogen fueling infrastructure across the United States will need to keep pace with the projected production and deployment of hydrogen fuel cell vehicles. The Biden administration has made significant investments through tax incentives and grants to support the continued development of hydrogen fuel cell technologies, and the market for hydrogen fuel cell vehicles is expected to expand to more than $40 billion by 2030.
The transportation sector has been identified as the single largest US source of greenhouse gas (GHG) emissions, and continues to be an area of focus in the nation’s decarbonization efforts. Due to heavy-duty vehicles contributing the second largest amount of GHG emissions in the transportation sector, there has been a continued focus on increasing the use and integration of zero-emission heavy-duty vehicles. Three recent government agency actions seek to promote and accelerate the use of heavy-duty zero-emission vehicles, including those powered by hydrogen fuel cell technologies.
Hydrogen fuel cell vehicles will be a key component in the nationwide effort to achieve net-zero emissions by 2050. The Biden administration’s US National Blueprint for Transportation Decarbonization, which highlighted specific decarbonization opportunities and challenges for various modes of transportation, identified hydrogen as the option with the greatest long-term opportunity for decarbonizing long-haul heavy trucks. However, adoption of hydrogen fuel cell technologies for long-haul heavy trucks is highly dependent on advancing hydrogen fuel cell technologies and expanding the hydrogen refueling infrastructure, as well as the availability of hydrogen supply, the cost of alternative types of transportation, and regulatory drivers.
The Hydrogen and Fuel Cell Technologies Office issued a funding opportunity announcement (FOA) on March 15, 2023 that makes available up to $750 million to support the development of electrolyzer technology, domestic supply chains, and high-throughput manufacturing of electrolyzers and fuel cells. The funding is intended to improve the efficiency, durability, and cost of producing clean hydrogen using electrolyzers; to advance new manufacturing technologies for both electrolyzer and fuel cell technologies; and to create innovative approaches to increase reuse and recycling of clean hydrogen and fuel cell technologies.
The US Department of Energy (DOE) recently issued two funding opportunities for the development of carbon capture large-scale pilot projects and integrated carbon capture and storage projects at coal or natural gas generation facilities and at industrial facilities that are not purposed for electric generation.
The US Department of Energy’s (DOE’s) Office of Energy Efficiency and Renewable Energy (EERE) issued a funding opportunity announcement (FOA) on January 27, 2023, on behalf of the Hydrogen and Fuel Cell Technologies Office that makes available $47 million to support the research, development, and demonstration of affordable hydrogen and fuel cell technologies. The FOA further advances the Biden administration’s goals to achieve carbon pollution-free electricity by 2035 and to achieve net-zero emissions by 2050. It also supports the goals of the H2@Scale Initiative, which aims to advance affordable hydrogen production, transport, storage, and utilization, and aligns with DOE’s Hydrogen Shot, which targets affordable clean hydrogen production at $1/kg within the decade.
While no one has a crystal ball for what 2023 will hold for the energy industry, the seemingly widespread support for green technology and clean energy is expected to carry through this year. In our industry outlook, “The Trends—and Traps—That Will Shape 2023,” we highlight some of the major green energy tax credit trends.
The Biden administration released the US National Blueprint for Transportation Decarbonization (Blueprint) on January 10, 2023, setting forth a strategy for decarbonizing the transportation sector in order to achieve the economy-wide 2030 and 2050 emissions reduction goals.