The U.S. Department of the Treasury is finalizing rules that will determine which new clean hydrogen projects will receive the IRA’s generous 45V tax incentives, and whether those projects will deliver promised climate benefits. --- The Inflation Reduction Act provides a range of incentives for the development of clean energy resources in the United States. Highest profile among those incentives are hundreds of billions of dollars in tax credits earmarked for new wind and solar power projects. Yet the IRA’s most aggressive incentives aren’t directed at renewables but at clean hydrogen, which is a fuel that is viewed as crucial to decarbonizing parts of the economy that aren’t readily electrified, such as steel making, air travel and shipping. Over the past few months, the Department of the Treasury and the Internal Revenue Service have been developing rules to define what will qualify as clean hydrogen, and what level of financial incentive hydrogen producers should receive based on the climate impact of the hydrogen they will make. Final rules are expected this year, and will ultimately determine whether clean hydrogen delivers on its climate promise. Danny Cullenward, Vice Chair of California’s Independent Emissions Market Advisory Committee and a Senior Fellow at the Kleinman Center, explores the climate stakes surrounding the Treasury’s 45V hydrogen production tax credit. Cullenward explains the draft clean hydrogen rules, and why certain interests would like to see those guidelines relaxed. He also explores what the final rules might mean for the pace of clean hydrogen growth, and for the ability of clean hydrogen producers to thrive after the incentives expire. Danny Cullenward is a Senior Fellow with the Kleinman Center for Energy Policy. He is also Vice Chair of California’s Independent Emissions Market Advisory Committee, and a Research Fellow with the Institute for Carbon Removal Law and Policy at American University. Related Content Coordinated Policy and Targeted Investment for an Orderly and Reliable Energy Transition https://kleinmanenergy.upenn.edu/research/publications/coordinated-policy-and-targeted-investment-for-an-orderly-and-reliable-energy-transition/ Why the IRA’s Carbon Capture Tax Credit Could Increase Greenhouse Emissions (Podcast) https://kleinmanenergy.upenn.edu/podcast/why-the-iras-carbon-capture-tax-credit-could-increase-greenhouse-emissions/   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.edu.See omnystudio.com/listener for privacy information.

Physical attacks on critical European energy infrastructure have risen since the outbreak of the war in Ukraine, threatening energy security and the pace of the low-carbon transition. --- Sabotage of critical energy infrastructure has been on the rise, most prominently in Europe, where multiple attacks have targeted subsea electric transmission cables and natural gas pipelines, including Nordstream, since the start of the war in Ukraine.    These disruptions come at a time of upheaval in the energy system, as nations push forward with the construction of expansive carbon-free energy infrastructure, spanning renewable generation and electric transmission networks. Simultaneously, European countries have raced to develop new LNG import terminals and pipelines to replace natural gas that had been supplied by Russia. Yet, until recently relatively little public attention has been paid to the challenge that physical sabotage presents to energy security and climate goals. Benjamin Schmitt, a senior fellow with the Kleinman Center, explores the daunting task of protecting vast networks of often remote infrastructure from everything from hostile nations to small bands of rogue actors. He also discusses why culprits can be so difficult to identify, and how threats to energy infrastructure might undermine public support for the expansive projects needed to transition to a low-carbon energy system in Europe, the US, and elsewhere. Benjamin Schmitt is a Senior Fellow here at the Kleinman Center whose research has focused on the physical security on the energy system.  Related Content Coordinated Policy and Targeted Investment for an Orderly and Reliable Energy Transition https://kleinmanenergy.upenn.edu/research/publications/coordinated-policy-and-targeted-investment-for-an-orderly-and-reliable-energy-transition/ America’s Electric Power Transmission Crisis https://kleinmanenergy.upenn.edu/podcast/americas-electric-power-transmission-crisis/   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.eduSee omnystudio.com/listener for privacy information.

In this engaging discussion, Alexandra Klass, a law professor at the University of Michigan, explores the innovative concept of 'repurposed energy.' She highlights how redirecting clean energy projects to abandoned fossil fuel sites can ease community resistance and accelerate the energy transition. Klass delves into significant provisions from the Inflation Reduction Act and the Bipartisan Infrastructure Law that support this approach. She also offers impactful policy recommendations to enhance clean energy development in legacy energy communities.

Each fall, the Kleinman Center for Energy Policy hosts a student blog competition, where students from any field of study can showcase their creativity, innovation, and passion for energy policy and sustainability. This year, we welcomed audio submissions, and we’re featuring our first-place audio blog here. This year’s winner is Benjamin Chen, a junior majoring in economics and minoring in computer science and environmental management. Ben’s winning audio blog is titled “Corporate Disclosure Law on Energy Policy”. Benjamin Chen is a junior majoring in economics at the University of Pennsylvania.See omnystudio.com/listener for privacy information.

A national network of CO2 and biomass transportation infrastructure, spanning pipelines to rail routes, will be needed to support the permanent removal of atmospheric CO2. Can the network be economically built? --- In December the Lawrence Livermore National Laboratory published Roads to Removal: Options for Carbon Dioxide Removal in the United States, which explores pathways to permanently remove carbon dioxide from Earth’s atmosphere. The report provides a granular, county-by-county look at the potential for atmospheric carbon to be captured and stored across the U.S., and highlights the fact that the best places for carbon to be captured, and stored, are frequently not the same. On the podcast, two report authors explore the need to develop a nationwide, multi-modal transportation network to move carbon dioxide and a related climate commodity, biomass, at scale, and potentially over great distances, to permanent geologic storage sites. Pete Psarras is a research assistant professor in chemical and biomedical engineering at the University of Pennsylvania’s School of Engineering and Applied Sciences. Hélène Pilorgé is a research associate whose work focuses on carbon management. The two explore the geography of carbon removal and storage, the challenging logistics of a future, multi-modal carbon transportation network, and how that network might be most economically built. Pete Psarras is a research assistant professor in chemical and biomedical engineering at the University of Pennsylvania’s School of Engineering and Applied Sciences, and a researcher with the University of Pennsylvania’s Clean Energy Conversions Laboratory. Hélène Pilorgé is a research associate with the University of Pennsylvania’s Clean Energy Conversions Laboratory. Related Content A New Era of Policy in Solar Geoengineering https://kleinmanenergy.upenn.edu/research/publications/a-new-era-of-policy-in-solar-geoengineering/ Ammonia's Role in a Net-Zero Hydrogen Economy https://kleinmanenergy.upenn.edu/research/publications/ammonias-role-in-a-net-zero-hydrogen-economy/ Why the IRA's Carbon Capture Tax Credit Could Increase Greenhouse Emissions (Podcast) https://kleinmanenergy.upenn.edu/podcast/why-the-iras-carbon-capture-tax-credit-could-increase-greenhouse-emissions/   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.eduSee omnystudio.com/listener for privacy information.

Cary Coglianese, director of the Penn Program on Regulation, discusses AI’s potential in optimizing energy regulation and measuring its effectiveness. Topics include managing a complex energy grid, challenges of regulating distributed energy sources, AI in forecasting energy demand and detecting methane leaks, and assessing regulation and algorithm transparency. The podcast also explores the balance between AI's energy consumption and renewable energy development.

Ari Peskoe, from Harvard Law School, dives into FERC's pending transmission reforms, discussing the need for expanded infrastructure, challenges in current planning systems, and legal hurdles expected. Topics include the impact of transmission regulations on clean energy growth, concerns around cost distribution, and the role of state involvement in planning amidst political debates. The podcast explores the complexities of utility decision-making, the importance of stakeholder diversity, and the need for flexibility in reform while addressing legal vulnerabilities and proposals for connectivity improvements in transmission infrastructure.

New research raises doubt around the climate benefits of the 45Q tax credit for carbon capture and storage for fossil fuel powerplants. --- The Inflation Reduction Act earmarks billions of dollars of incentives for carbon capture and storage from coal and gas-fired powerplants. Ideally, the incentive will provide a path for fossil generators to reduce their greenhouse gas emissions as the electric grid transitions to cleaner resources and to net zero. Yet recent research calls into question the climate impact of the IRA’s carbon capture tax credit, known as 45Q. The report, co-authored by a former deputy assistant secretary for the Department of Energy’s Office of Carbon Management, finds that 45Q could lead to an increase in greenhouse gas emissions by incentivizing coal and gas generators to extend their working lives and maximize their output. The result could be billions of dollars of taxpayer money spent with no climate benefit. Emily Grubert, report co-author and now an associate professor of sustainable energy policy at the Keough School of Global Affairs at the University of Notre Dame, examines the costs and climate impacts of carbon capture and storage under the IRA. Grubert explains how the 45Q tax credit could lead to unintended climate impacts. She also discusses the need for robust review of proposed carbon capture projects, and strong regulatory guardrails, if 45Q and CCS are to deliver climate benefits. Emily Grubert is an associate professor of sustainable energy policy at the Keough School of Global Affairs at the University of Notre Dame, and former deputy assistant secretary in the Office of Carbon Management at the U.S. Department of Energy. Related Content Are Those Who Most Benefit from the IRA Aware It Exists?  https://kleinmanenergy.upenn.edu/research/research-projects/are-those-who-most-benefit-from-the-ira-aware-it-exists-guidance-for-stakeholders-and-policymakers/ What Impact Will the IRA Have on Consumer Energy Costs? https://kleinmanenergy.upenn.edu/podcast/what-impact-will-the-ira-have-on-consumer-energy-costs/ Agricultural Provisions in the Inflation Reduction Act and Beyond https://kleinmanenergy.upenn.edu/news-insights/agricultural-provisions-of-the-inflation-reduction-act-and-beyond/ Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.eduSee omnystudio.com/listener for privacy information.

The podcast discusses the importance of communication and coordination between energy policymakers and grid operators. It highlights the challenges of maintaining grid reliability during the energy transition and the need for deliberate planning. The chapter explores the challenges of aligning clean energy policy with grid reliability, emphasizing the importance of sufficient capacity and reliable operation. It also discusses New York's approach to clean resources and the potential impact of EPA's proposed greenhouse gas rules on grid reliability. Lastly, it emphasizes the coordination between policymakers and grid operators for a reliable transition.

Brazilian economist and IPCC lead author Roberto Schaeffer examines what constitutes a “fair share” of emissions reductions under the Paris climate process, and how fairness is defined. -- This December, at COP 28 in Dubai, countries will consider the results of the first “global stocktake,” which is a global report card that compares real climate commitments and actions with the level that’s in fact needed to achieve global net zero and avoid the worst of climate outcomes. Following COP, countries will be expected to intensify their efforts to reduce their climate impacts and keep the targets of the Paris Climate Agreement in sight.  As they consider their future commitments, countries will grapple with their capacity to reduce emissions, whether that level is in fact “fair” in a global sense, and what the climate implications of their efforts may be. Roberto Schaeffer, a professor of energy economics at the Federal University of Rio de Janeiro, explores paths to deliver the dual imperatives of fairness, and maximum carbon reductions, in the global climate context. Schaeffer is a lead author for the Intergovernmental Panel on Climate Change Assessment Reports, and a co-recipient of the Nobel Prize. His work focuses on frameworks to maximize individual country contributions to the global climate effort. Roberto Schaeffer is a professor of energy economics at the Federal University of Rio de Janeiro. Related Content The Net Zero Governance Conveyor Belt https://kleinmanenergy.upenn.edu/research/publications/the-net-zero-governance-conveyor-belt/ East Meets West: Linking the China and EU ETS’s https://kleinmanenergy.upenn.edu/research/publications/east-meets-west-linking-the-china-and-eu-etss/ Accelerating Climate Action https://kleinmanenergy.upenn.edu/podcast/accelerating-climate-action/   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.eduSee omnystudio.com/listener for privacy information.