In the absence of federal legislation to address Climate Change and to improve the reliability of delivery of different energy sources (infrastructure), a number of states and cities are passing legislation. While any action is better than inaction on these matters, this is also resulting in a “quilt” of different requirements all intended to address primarily local issues affecting those states and cities.
Texas
Remember the big winter storm much earlier this year that led to zero-degree temperatures throughout Texas and power plants to fail because of freezing? It got lost in the next news cycle, but in response to it, the Texas Legislature passed several bills to address energy-related issues, including imposing weatherization requirements on electric generation and transmission assets and on some of natural gas infrastructure, and a redesign of the electric market to ensure grid reliability.
All that said, officials are also working to help Texas increase energy generation to respond to growth and have adequate energy reserves. This includes encouraging implementation of electric generation resources that can respond within 30 minutes and provide uninterruptible power for 24 hours and encouraging investment (incentives) for new thermal generation.
Boston
On October 5, 2021, Boston enacted an amendment of its current ordinance called Building Energy Reporting and Disclosure (BERDO), imposing greenhouse gas emissions performance standards on existing buildings, with the goal of achieving zero emissions from large buildings by 2050. Now they along with New York City (Local Law 97) and Washington, D.C. have such performance standards on buildings.
BERDO now contains greenhouse gas emissions standards that applicable buildings must meet beginning in 2025, measured in metric tons of carbon dioxide equivalent (CO2e) per square foot. All energy usage for a building must be accounted for, excluding emergency backup power and EV charging. BERDO has some flexibility for compliance. For example, certain owners can apply for an “Individual Compliance Schedule”, that must ultimately plan for emission reductions of at least 50% by 2030 and 100% by 2050. Owners may also qualify for a “Hardship Compliance Plan” for those with financial hardships, certain affordable housing, historic buildings, and those with long-term, pre-existing energy contracts.
BERDO presents potential compliance strategies, besides energy efficiency and fuel switching, to achieve the required GHG emissions reductions, such as renewable energy measures, such as Renewable Energy Portfolio Standard (RPS) Class I eligible Renewable Energy Certificates (RECs) and Power Purchase Agreements (PPAs) with non-CO2e emitting renewable sources. Fines for excessive emissions ($234 per metric ton of CO2e exceedance will be placed into an “Equitable Emissions Investment Fund” to support local emissions reduction projects within Boston.
Oregon
On September 25, 2021, a sweeping climate change rule for retail electricity generation in Oregon went into effect. H.B. 2021 sets aggressive GHG emission reductions targets for electricity sold to Oregonians, including 100% GHG-free electricity by mid-century.
HB 2021 has interim targets, such as 80% non-GHG emitting by 2030 and 90% by 2035. Non-GHG emitting includes hydropower and nuclear. Provisions encourage community-based renewable energy projects and encourage environmental justice.
Oregon is now one of 17 states to severely restrict usage of GHG-emitting energy sources for electricity generation by mid-century.
Please note that this is not a legal evaluation of these new laws, but one written by an engineer. Therefore, making any decisions based on these new rules, please consult a qualifying legal professional.
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