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CCUS and clean hydrogen will play a significant role in the Administration’s efforts to address hard-to-decarbonize industries to promote clean US manufacturing.

By Janice Schneider, Nikki Buffa, and Kevin Homrighausen

On February 15, 2022, the White House announced important actions in furtherance of the Biden Administration’s broader decarbonization goals — this time with an eye toward clean domestic manufacturing. Framing the rollout, the White House released a fact sheet highlighting the Administration’s efforts for a “Cleaner Industrial Sector to Reduce Emissions and Reinvigorate American Manufacturing,” including “Buy Clean,” hydrogen, and carbon capture, utilization, and storage (CCUS) announcements.

These efforts include kicking off multibillion-dollar hydrogen funding opportunities provided by the Infrastructure Investment and Jobs Act (IIJA, also known as the Bipartisan Infrastructure Law) and new draft guidance from the White House Council on Environmental Quality (CEQ) titled Carbon Capture, Utilization, and Sequestration Guidance to assist federal agencies with the regulation and permitting of CCUS projects.

As more companies jockey for position and federal funding on both clean hydrogen and CCUS, the announcements are timed to provide critical guidance on these emerging areas of opportunity.

By Michael Gergen, David E. Pettit and Christopher Randall

solar panelsOn September 14, 2017, the New York Public Service Commission (NYPSC or the Commission) issued its Order on Phase One Value of Distributed Energy Resources Implementation Proposals, Cost Mitigation Issues, and Related Matters (the Implementation Order). The Implementation Order sets the methodologies by which utilities throughout the state of New York will determine the Value of Distributed Energy Resources (VDER). It follows the Commission’s March 9, 2017 Order on Net Metering Transition, Phase One of Value of Distributed Energy Resources, and Related Matters (the VDER Phase One Order), which the Commission issued in furtherance of the State’s Reforming the Energy Vision (REV) initiative and is analyzed in a prior Latham & Watkins Client Alert.

In accordance with the VDER Phase One Order, each utility in the state submitted an Implementation Proposal addressing calculation and compensation methodologies for Distributed Energy Resources (“DERs”). The Implementation Order largely approves the utilities’ Implementation Proposals, with certain modifications relating to the recovery of VDER costs, the methodology behind the Installed Capacity credit, and the calculation of Market Transition Credits. The Order also addresses certain issues associated with the Value Stack for DERs and cost mitigation.