News from Novi: 10 Headlines that Stood Out to Us this Week
Issue 1 – Week of April 21
1. Want to build a gas plant? Get in line
What's happening in Texas serves as a warning to the rest of the country about the state of the U.S. power sector. Though Texas announced last year that it would be providing low-interest, state-backed loans to 17 energy projects that would add new gas plants, it seems that the market is not ready to build these new plants as projects continue to withdraw.
Novi's Take: As we try to build out the energy system, including clean firm power, to address our energy needs, this reminds us that supply chains and infrastructure constraints need to be addressed to achieve these goals.
2. Hundreds of EPA employees face layoffs or transfers
As the current administration continues with its eradication of programs that have connection with DEI, many EPA employees are facing the risk of layoffs.
Novi's Take: Less human capital means that there are less people to get the business of government done, affecting time to permit and secure other governmental authorizations.
3. Trump Energy Secretary: Clean Energy tax credits a 'big mistake'
Energy Secretary Wright took time on Earth Day to criticize the tax credits that are incentivizing renewable energy. Wright pointed to the fact that he believes that the term ‘clean energy’ is just a marketing term and all energy production is going to have pros and cons.
Novi's Take: While Secretary Wright's comments are consistent in his “all energy has environmental costs” argument, query whether the energy projects incentivized by those tax credits need to carry through ASAP to provide the power we need for economic growth.
4. White House says it’s not targeting green groups’ tax status - POLITICO
It was rumored that the White House would be issuing an Executive Order that would target nonprofit organizations tax-exempt status, but a White House official said that “no such orders are being drafted or considered at this time.”
Novi Take: Good news that the White House held back on the rumored EO, but not a guarantee that it won't happen. As use of EO's proliferates and potentially extends to targeting tax exempt status, it is important to realize that revoking tax exempt status requires a long adjudicatory process.
A leaked email showed that the administration is aware that efforts to pull back Greenhouse Gas Reduction Fund disbursements to capitalize green banks were motivated by a drive for a short-term political win and that those behind the take back did not believe the alleged criminal and civil investigations would uncover any evidence of waste, fraud, or conflicts of interest.
Novi Take: As litigation winds its way through the courts, there appears to be a lack of evidence of any waste or fraud in the creation of the Greenhouse Gas Reduction Fund.
6. Supreme Court weighs arguments from fuel producers over California's EV push - Washington Times
This week the Supreme Court heard arguments from fuel producers objecting to California's waiver granted under the federal Clean Air Act, which allowed California to set its own - more stringent - state emissions standards. The Court must decide if the producers have shown sufficient legal injury for the case to proceed.
Novi Take: The balance between federal and state authority - with the scales tipping toward states' rights - seems to be in the process of reexamination by the unlikeliest of sources: a Republican Administration.
7. E&E News | Article | ‘Russian roulette’: Why Trump’s bid to trim NEPA could backfire
The administration is moving to cut down environmental reviews to less than a month under the National Environmental Policy Act, leaving those involved in the process open to many legal risks.
Novi Take: Time will tell if this saves or costs time.
8. E&E News | Article | GE Vernova: Gas is up and wind is down under Trump
GE Vernova reported in its first quarter earnings report a rise in orders for gas turbines, transformers, and switchgear, while their wind related sales have fallen greatly under this administration.
Novi take: Markets react to signals, and the signals to the market could not be clearer when it comes to wind. However, “Want to build a gas plant? Get in line” reminds us that natural gas is going to take some time to get up and running, and if you are in an energy emergency, perhaps it’s not the best strategy to exclude some things from an all-of-the-above strategy.
9. House set to vote on overturning California gas car ban – defying internal watchdog
Overview: The House will be voting next week on California state regulations that were approved under Biden, which includes the ban of new sales of gas powered cars. Under the Congressional Review Act they would just need a congressional majority and presidential approval.
Novi take: Again, this marks an unlikely source of push back against state authority, and one that might feel different when power is distributed differently in the executive branch.
10. Increasing Levels of Methane Transparency
This week RMI produced an interactive methane transparency graphic to illustrate how various methane detection technologies work in concert to identify emissions of this super pollutant (in the realm of 30x GWP over a 100-year period and 80x over a 20-year period) to hasten mitigation. The graphic offers real world examples to show users how these technologies work. Part of the graphic is pasted below:
Novi Take: Methane Emissions Monitoring capability is increasing at an exponential pace, providing greater insight into who emits what methane where. Great to see this attention on methane.