Proposed rule to improve efficiency and reduce financial risks from climate change
This is from a White House fact sheet on the Biden-Harris administration’s proposed Federal Supplier Climate Risks and Resilience Rule which would require major Federal contractors to publicly disclose their greenhouse gas emissions and climate-related financial risks and set science-based emissions reduction targets, which President Biden outlined at COP27 .
The Biden-Harris Administration is taking historic action to address greenhouse gas emissions and protect the Federal Government’s supply chains from climate-related financial risks. In support of President Biden’s Executive Orders on Climate-Related Financial Risk and Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability, the Administration is proposing the Federal Supplier Climate Risks and Resilience Rule, which would require major Federal contractors to publicly disclose their greenhouse gas emissions and climate-related financial risks and set science-based emissions reduction targets.
President Biden highlighted this proposed action at the 27th Conference of the Parties to the U.N. Framework Convention on Climate Change (COP27) in Sharm El Sheikh, Egypt. Through this action, the United States would become the first national government to strengthen its supply chain by requiring major suppliers to set Paris Agreement-aligned emissions reduction goals.
As the world’s single largest buyer of goods and services—purchasing over $630 billion in the last fiscal year alone—the Federal Government faces significant financial risks from climate change. Supply chain disruptions over the past year have impacted every sector, including the Federal Government and its critical contractors and subcontractors. The new Federal Supplier Climate Risks and Resilience Rule would strengthen the resilience of vulnerable Federal supply chains, resulting in greater efficiencies and reduced climate risk.
The proposed action is also an integral part of the President’s Federal Sustainability Plan, which set a goal to achieve net-zero emissions procurement by 2050. The Federal Supplier Climate Risks and Resilience Rule covers approximately 85 percent of the emissions associated with the Federal supply chain, which are estimated to be more than twice as large as the emissions from operating the Federal Government’s 300,000 buildings and 600,000 vehicles combined.
Managing emissions builds efficiency and effectiveness, and can reduce costs for Federal suppliers. Since establishing the Federal Government’s own climate goals, energy use by buildings and vehicles has dropped 32 percent, saving taxpayers $11.8 billion annually. Suppliers understand that you cannot manage what you don’t measure—tracking emissions and setting and meeting targets can increase resilience and reduce costs.
Federal Supplier Climate Risks and Resilience Rule
The proposed Federal Supplier Climate Risks and Resilience Rule provides a targeted, risk-based approach by focusing primarily on major Federal suppliers. Under the proposed rule, the largest suppliers including Federal contractors receiving more than $50 million in annual contracts would be required to publicly disclose Scope 1, Scope 2, and relevant categories of Scope 3 emissions, disclose climate-related financial risks, and set science-based emissions reduction targets. Federal contractors with more than $7.5 million but less than $50 million in annual contracts would be required to report Scope 1 and Scope 2 emissions. All Federal contractors with less than $7.5 million in annual contracts would be exempt from the rule. Small businesses with over $7.5 million in annual contracts would only be required to report Scope 1 and Scope 2 emissions under the proposed rule.
This proposed rule leverages widely-adopted third party standards and systems that many Federal contractors already use when disclosing their emissions and setting emissions reduction targets, including the CDP environmental reporting system, the Task Force on Climate-Related Financial Disclosures (TCFD) Recommendations, and the Science Based Targets Initiative (SBTi) criteria.
Today, more than half of major Federal contractors are already disclosing climate related information. These Federal contractors are among the 18,700 companies globally—worth more than half of global market capitalization—that voluntarily disclose emissions and climate risk through CDP, including 1,800 small and medium-sized enterprises. Further, nearly 4,000 companies globally—representing one third of the global economy’s market capitalization—have voluntarily committed to setting science-based targets.
The Federal Acquisition Regulatory Council, composed of the Department of Defense, the General Services Administration, the National Aeronautics and Space Administration, and chaired by the Office of Federal Procurement Policy in the Office of Management and Budget, is issuing this proposed rulemaking, which would amend the Federal Acquisition Regulation (FAR) to implement these changes, if finalized. The FAR is the primary regulation for use by all executive agencies in their acquisition of supplies and services with appropriated funds.
Today, the White House released state fact sheets highlighting how the Inflation Reduction Act tackles the climate crisis in states across the country and how families and communities can benefit from a clean energy future. The fact sheet outlines how families can save on their utility bills, get tax credits for electric vehicles and energy-saving appliances, and access the economic opportunities of the clean energy future.
President Biden and Congressional Democrats beat back special interests to pass this historic legislation, delivering the most significant action in U.S. history to tackle the climate crisis and strengthen U.S. energy security. By signing the Inflation Reduction Act, President Biden is delivering on his promise to lower energy costs, create good-paying jobs, and deliver a clean, secure, and healthy future for families across America.
Historic Actions Include Authorizing Defense Production Act to Lower Energy Costs, Strengthen Power Grid, and Create Good-Paying Jobs
I find it infuriating that the “news” is completely taken over by the latest travesties by Trump, Putin and Supreme Court, fueling anger and cynicism among Democrats and Progressives who may well take their anger out at the polls and simply not vote – that, I would remind you, is how we got Trump and this Christo Fascist Supreme Court. Biden Administration not doing anything on climate change? Inflation? Health care? Nonsense. This administration has been incredibly productive – finding real solutions, not bandaids, rhetoric and hype, that have at their foundation a sense of equity, sustainability and social justice. Want to solve inflation? Not by the Keystone Pipeline or overturning coal plant rules, but investing in EV infrastructure, as Biden wants to do. But you wouldn’t know it from the media, social or otherwise. It is our practice, then, to publish first-hand accounts from the White House, federal agencies and officials. –Karen Rubin/news-photos-features.com
Today’s clean energy technologies are a critical part of the arsenal we must harness to lower energy costs for families, reduce risks to our power grid, and tackle the urgent crisis of a changing climate. From day one, President Biden has mobilized investment in these critical technologies. Thanks to his clean energy and climate agenda, last year marked the largest deployment of solar, wind, and batteries in United States history, and our nation is now a magnet for investment in clean energy manufacturing.
Since President Biden took office, the private sector has committed over $100 billion in new private capital to make electric vehicles and batteries in the United States. We have made historic investments in clean hydrogen, nuclear, and other cutting-edge technologies. And companies are investing billions more to grow a new domestic offshore wind industry.
We are also now on track to triple domestic solar manufacturing capacity by 2024. The expansions to domestic solar manufacturing capacity announced since President Biden took office will grow the current base capacity of 7.5 gigawatts by an additional 15 gigawatts. This would total 22.5 gigawatts by the end of his first term – enough to enable more than 3.3 million homes to switch to clean solar energy each year.
While President Biden continues pushing Congress to pass clean energy investments and tax cuts, he is taking bold action to rapidly build on this progress and create a bridge to this American-made clean energy future. Today, President Biden is taking action to:
Authorize use of the Defense Production Act (DPA) to accelerate domestic production of clean energy technologies, including solar panel parts;
Put the full power of federal procurement to work spurring additional domestic solar manufacturing capacity by directing the development of master supply agreements, including “super preference” status; and
Create a 24-month bridge as domestic manufacturing rapidly scales up to ensure the reliable supply of components that U.S. solar deployers need to construct clean energy projects and an electric grid for the 21st century, while reinforcing the integrity of our trade laws and processes.
Together, these actions will spur domestic manufacturing, construction projects, and good-paying jobs – all while cutting energy costs for families, strengthening our grid, and tackling climate change and environmental injustice. With a stronger clean energy arsenal, the United States can be an even stronger partner to our allies, especially in the face of Putin’s war in Ukraine.
The stakes could not be higher. That is why President Biden also continues to urge Congress to quickly pass tax cuts and additional investments that advance U.S. clean energy manufacturing and deployment. Failing to take these actions would deny consumers access to cost-cutting clean energy options, add risks to our power grid, and stall domestic clean energy construction projects that are critical to tackling the climate crisis. At the same time, President Biden will keep using his executive authority to take bold action to build an American-made clean energy future.
INVOKING THE DEFENSE PRODUCTION ACT FOR CLEAN ENERGY
Today, President Biden is authorizing the use of the Defense Production Act (DPA) to accelerate domestic production of clean energy technologies – unlocking new powers to meet this moment. Specifically, the President is authorizing the Department of Energy to use the DPA to rapidly expand American manufacturing of five critical clean energy technologies:
Solar panel parts like photovoltaic modules and module components;
Heat pumps, which heat and cool buildings super efficiently;
Equipment for making and using clean electricity-generated fuels, including electrolyzers, fuel cells, and related platinum group metals; and
Critical power grid infrastructure like transformers.
In deploying the DPA, the Biden-Harris Administration will strongly encourage the use of strong labor standards, including project labor agreements and community benefits agreements that offer wages at or above the prevailing rate and include local hire provisions. The Administration also will strongly encourage projects with environmental justice outcomes that empower the clean energy transition in low-income communities historically overburdened by legacy pollution.
Following this announcement, the White House and the Department of Energy will convene relevant industry, labor, environmental justice, and other key stakeholders as we maximize the impact of the DPA tools made available by President Biden’s actions and strengthen domestic clean energy manufacturing.
BOOSTING MADE-IN-AMERICA CLEAN ENERGY WITH FEDERAL PROCUREMENT
President Biden is also putting the full power of federal procurement to work spurring additional domestic solar manufacturing capacity. Today, the President directed the development of two innovative tools to accelerate Made-in-America clean energy:
Master Supply Agreements for domestically manufactured solar systems to increase the speed and efficiency with which domestic clean electricity providers can sell their products to the U.S. Government; and
So-called “Super Preferences” to apply domestic content standards for federal procurement of solar systems, including domestically manufactured solar photovoltaic components, consistent with the Buy American Act.
These federal procurement measures can stimulate demand for up to a gigawatt of domestically produced solar modules in the near term, and up to 10 gigawatts over the next decade from U.S. government demand alone. To further increase the impact of these actions, the Administration will also partner with state and local governments and municipal utilities in these innovative arrangements – increasing the potential market impact over the next decade to as much as over 100 gigawatts. These procurement actions will provide a significant demand anchor for a revitalized domestic solar manufacturing industry.
SUPPORT FOR U.S. GRID-STRENGTHENING, CLEAN ENERGY CONSTRUCTION PROJECTS
Because of private investor confidence in President Biden’s leadership and our national commitment to a clean energy future, the United States is now on track to triple its solar manufacturing capacity by 2024. The expansions to domestic solar manufacturing capacity announced since the President took office will grow the current 7.5 gigawatts of capacity by an additional 15 gigawatts of capacity, for a total of 22.5 gigawatts by the end of his first term – enough to enable more than 3.3 million homes to switch to clean solar energy every year. To rapidly build on this progress and create a bridge to this American-made clean energy future, we need to boost short-term solar panel supply to support construction projects in the United States right now. This is because grid operators around the country are relying on planned solar projects to come online to ensure there is sufficient power to meet demand, and to ensure we can continue to deploy solar at the rates needed to keep us on track to meet the President’s climate goals.
Today, President Biden is using his powers to create a 24-month bridge for certain solar imports while reinforcing the integrity of our trade laws and processes. Specifically, the President is:
Temporarily facilitating U.S. solar deployers’ ability to source solar modules and cells from Cambodia, Malaysia, Thailand, and Vietnam by providing that those components can be imported free of certain duties for 24 months in order to ensure the U.S. has access to a sufficient supply of solar modules to meet electricity generation needs while domestic manufacturing scales up; and
Reinforcing his commitment to safeguarding the integrity and independence of all ongoing trade investigations by career officials at the Department of Commerce and recognizing the vital role these processes play in strengthening our economy.
ADDITIONAL STEPS TO CUT COSTS, SUPPORT GOOD-PAYING JOBS, AND ADVANCE ENVIRONMENTAL JUSTICE
Today’s actions build on this Administration’s existing initiatives to grow domestic clean energy innovation and manufacturing and to lower energy costs for Americans, including:
Permitting More Clean Energy on Public Lands. As part of the Biden-Harris Permitting Action Plan, a new five-agency collaboration is expediting reviews of clean energy projects on public lands through the Department of the Interior, helping us race ahead toward permitting at least 25 gigawatts by 2025 – enough to power around five million homes. These actions have already increased clean energy permitting activities by 35 percent, including major solar project approvals and leases. We have also launched five new Renewable Energy Coordination Offices and reduced rents and fees by more than 50 percent for solar and wind projects on public lands.
Boosting Community-Based Clean Energy in Cities and Rural Areas. The Biden-Harris Administration is helping 17 local communities remove red tape with the SolarAPP+ online tool to enable same-day approvals for residential solar installation permits, and an additional 400 interested communities are in the pipeline. The National Climate Task Force launched new initiatives on increasing deployment of Distributed Energy Resources, including rooftop solar, with a focus on bringing the benefits of these projects to underserved communities. The United States Department of Agriculture provided the largest-ever investment in rural renewable energy last year. In addition, the Department of Energy and the Department of Health and Human Services are partnering to develop and pilot a digital platform that will connect customers who are eligible for the Low Income Home Energy Assistance Program with community solar subscriptions, to further reduce customer energy costs. Likewise, the U.S. Department of Housing and Urban Development is working with municipalities to enable residents of affordable housing to directly benefit from low-cost community solar power without seeing a rent increase or adjustment to their utility allowance.
Supporting a Diverse Solar Workforce with Good-Paying Jobs, including pathways to stable careers with the free and fair choice to join a union. Solar industry jobs consistently rank among the top fastest-growing in the nation, and many require only a high school education or GED. The Economic Development Administration recently awarded funding to support solar employment training in tribal and coal-impacted communities. In addition, the Department of Energy has issued a Request for Information and hosted six workshops to determine common goals and needs from stakeholders, including industry, unions, and training organizations. DOE will continue to explore these issues, including by providing funding, new collaborations with industry, other federal agencies, and state-based job boards to develop equitable worker-centric training and education programs, work-based learning opportunities, and support services such as career counseling, mentorship, and job readiness programs.
Developing Clean Energy Domestic Manufacturing for Export and Building Capacity in Allied Nations. The Export-Import Bank of the United States (EXIM) Make More in America Initiative, approved by the EXIM board in April, will prioritize investments to expand clean energy manufacturing. The U.S. International Development Finance Corporation supports building resilient clean energy manufacturing supply chains in allied nations around the world, reducing global dependence on China.
Investing in Clean Energy for Resilience in Puerto Rico: The Biden-Harris Administration joined forces with the Commonwealth of Puerto Rico to advance dozens of solar energy projects that will enable Puerto Rico to meet its target of 100% renewable electricity, while improving power sector resilience and increasing access to more affordable energy and cleaner air.
Administration Launches $500 million Grant Program from Bipartisan Infrastructure Law Program to Save Schools Money with Energy Upgrades
Vice President Kamala Harris announced the Biden-Harris Action Plan for Building Better School Infrastructure to upgrade our public schools with modern, clean, energy efficient facilities and transportation—delivering health and learning benefits to children and school communities, saving school districts money, and creating good union jobs. The action plan activates the entire federal government in leveraging investments from the Bipartisan Infrastructure Law and American Rescue Plan to advance solutions including energy efficiency retrofits, electric school buses, and resilient design.
The science of learning and development has shown that students need school environments filled with safety, belonging, and health to learn and thrive. Yet many schools rely on outdated heating, ventilation, and air conditioning (HVAC) systems that make classrooms less comfortable and may pose health risks to students and teachers exposed to contaminants or particles in the air that can trigger allergies or asthma attacks and potentially spread infectious diseases – including COVID-19. Dirty diesel buses pose additional health risks for students on board and the neighborhoods they travel through — and exhaust from idling buses can pollute the air around schools. Studies show that poor air quality inside classrooms takes a toll on student concentration and performance, and diesel exhaust exposure is linked to increased school absences. Reducing this pollution will provide better health and educational outcomes — particularly in low-income communities and communities of color that have long faced underinvestment and the burden of high pollution.
The action plan will save schools and taxpayers money. Public K-12 districts spend roughly $8 billion a year on energy bills — the second largest expense after teacher salaries. Energy efficiency improvements to HVAC systems, lighting, insulation, and other energy upgrades can not only protect the health of our children, but also unlock significant savings to go toward students and learning. Off-the-shelf improvements can provide energy savings of 10 to 30 percent and broader upgrades can unlock even more savings for years to come – all while creating opportunities for good paying union jobs for electricians, carpenters, painters, sheet metal workers, plumbers and pipefitters, and more.
The Administration is seizing the opportunity to align classrooms with the science of learning and development to improve educational equity and environmental justice. The new actions build on President Biden signing the American Rescue Plan into law one year ago, which helped reopen more than 99% of schools with resources to put in place critical health and safety measures like ventilation improvements to make in-person learning safe and accessible for students and educators.
The Biden-Harris Action Plan for Building Better School Infrastructure will:
Invest in More Efficient, Energy-Saving School Buildings: The Department of Energy (DOE) is launching a $500 million grant program through President Biden’s Bipartisan Infrastructure Law to make public schools more energy efficient. This new program will lower energy costs, improve air quality, and prioritize schools most in need, enabling schools to focus more resources on student learning.
Improve Classroom Air Quality through the American Rescue Plan: The Administration is supporting states, school districts, and local communities in leveraging American Rescue Plan Elementary and Secondary School Emergency Relief resources to address school infrastructure needs—like repairing, upgrading, or replacing of ventilation systems; purchasing air filters and portable air cleaning devices; and fixing doors and windows so that schools can stay open for in-person learning. Additionally, the Department of Treasury will soon release additional information to help school districts understand how they can use State and Local Fiscal Recovery Funds for a range of air quality and other school facility improvements, including energy efficiency.
Help Schools Access Resources and Best Practices: The White House is releasing a toolkit to help schools and school districts access available funding, as well as technical assistance opportunities and planning tools to help schools improve air quality, energy efficiency, and more. This new toolkit will further support school participation in the Clean Air in Buildings Challenge, which the Administration recently launched to reduce the spread of COVID-19 and improve indoor air quality in buildings of all kinds, including schools. The Department of Energy is also announcing the inaugural honorees of the Efficient and Healthy Schools Campaign, which provides technical assistance to school districts seeking to implement high-impact indoor air quality and efficiency improvements that will reduce energy bills and improve student and teacher health.
Expand Clean and Safe School Transportation: The Environmental Protection Agency (EPA), with support from the Department of Energy (DOE), is releasing new online resources to help school districts and other eligible recipients prepare for the $5 billion Clean School Bus Program created by the Bipartisan Infrastructure Law—with the first opportunity to fund clean and electric buses opening later this spring. The DOE is working closely with the EPA to develop targeted technical assistance programs that assist school districts in implementing clean and electric buses effectively into their fleets–starting with a technical assistance video series on electric buses. To support projects that help students safely walk and bike to school, the Department of Transportation (DOT) has provided state and local governments with new guidance to access $90 billion in available federal funding, including Bipartisan Infrastructure Law programs.
Support for Rural, Tribal, and Puerto Rican Schools: The U.S. Department of Agriculture (USDA) is announcing its full commitment to use its array of rural development loan and grant programs to support electric school bus acquisition, charging station infrastructure, energy efficiency investments at schools, and broadband and distance learning in rural school districts – to accelerate the shift from dirty fuel sources toward school facilities and vehicles powered by clean electricity. DOE is partnering with the Department of the Interior’s Bureau of Indian Education (BIE) to improve the state of our federally-operated schools. And the Administration’s Working Group on Puerto Rico has prioritized supporting school reconstruction.
Today’s announcements build on ongoing efforts to support students, including the Biden-Harris Lead Pipe and Paint Action Plan to reduce lead exposure in 400,000 schools and child care facilities and the Justice40 Initiative, which agencies are implementing to deliver 40 percent of the benefits of federal climate and clean energy investments to disadvantaged communities.
Investments to Improve School Energy Efficiency and Indoor Air Quality
The Administration is advancing a suite of investments to upgrade our K-12 public school facilities, many of which face maintenance backlogs and are long overdue for new equipment. While teachers and education leaders have long raised concerns about the level of comfort and air quality in our classrooms, the pandemic has laid bare disparities in access to healthy facilities, including modern, efficient, and clean HVAC systems. Outdated, inefficient buildings also saddle underserved school districts with higher energy bills and generate significant greenhouse gas emissions, keeping them in a cycle of underfunding operations and overpaying maintenance costs. This Action Plan will help schools make facility improvements that simultaneously deliver health protections, savings, and climate benefits.
Today, the Department of Energy (DOE) released a Request for Information to launch its new $500 million grant program for energy improvements at public school facilities, funded by President Biden’s Bipartisan Infrastructure Law. The projects funded by these grants will improve the quality of the air our students and educators breathe while reducing energy costs and freeing up local funds to invest more in education. These grants can support comprehensive energy efficiency audits and building retrofits, HVAC and lighting upgrades, clean energy installation, and more—along with training to help staff maintain these improvements over the long-term. DOE will prioritize projects in rural and high-poverty schools, and support leveraging of additional private, philanthropic, and public funding to maximize the benefits of these grants. In step with the Administration’s priority to create good union jobs accessible to all workers, the DOE will work to promote high quality labor and equity standards into school improvement grants. The RFI solicits input from schools and other stakeholders on important design considerations to ensure the grant program achieves the greatest reach and impact.
The Administration is also leveraging the American Rescue Plan, which President Biden signed into law one year ago, to address a range of health and safety issues in schools. The American Rescue Plan’s Elementary and Secondary School Emergency Relief program has provided $122 billion to states and districts to help schools stay open and address the significant academic and mental health needs of students resulting from the pandemic. Additionally, the American Rescue Plan also includes$350 billion in State and Local Fiscal Recovery Funds to support a wide range of pandemic response and recovery efforts, including school improvements to ventilation and building energy systems that reduce energy costs and support healthy environments. And, according to independent analysis, school districts are already planning to spend $15 billion of these funds to address facilities issues impacting student and staff health and safety, such as improving indoor air quality. The Department of Treasury will soon provide additional clarity to help recipients of State and Local Fiscal Recovery Funds understand how they can partner with local education agencies to use more of these funds for building upgrades and construction, including pre-project development costs, such as building assessments, energy audits, and feasibility studies. The Department of Education continues to outline how states and districts can use its funds for repairs and renovations, including improving indoor air quality through HVAC upgrades and door and window replacement, and ensuring clean drinking water in schools.
New Resources and Recognition to Support Schools To help schools access funding sources and technical assistance opportunities, the White House is releasing a toolkit mapping out available resources across the federal government for school infrastructure upgrades. By compiling resources and programs from across the federal government, this toolkit will help state and local officials find the support they need for building assessments, air quality improvements, energy efficiency upgrades, lead removal, resilience planning, and more. It builds on the Administration’s priority on improving indoor air quality through the Clean Air in Buildings Challenge, to help reduce the spread of COVID-19 in buildings and to deliver better health outcomes and protection for all building occupants.
To support and uplift schools and districts undertaking this critical work, the Administration is announcing the first round of honorees as part of the Efficient and Healthy Schools Campaign, which provides technical assistance to school districts seeking to implement high-impact indoor air quality and efficiency improvements that will reduce energy bills and improve student and teacher health. This innovative campaign has a goal of reaching 5,000 schools by the end of 2022. To date, 26 school districts across 16 states have joined or are prepared to join the campaign—representing over 1,500,000 students in 2,600 individual schools—more than half way toward the campaign’s goal.
Today, the Campaign announced its first round of awards to eight school districts for their best-in-class efforts across four categories: Efficient HVAC Technologies, Inspection & maintenance, Ongoing Monitoring & Analytics, and Team Approach to Support Strategic Investments. The inaugural honorees include:
Adams 12 Five Star Schools, CO
Boulder Valley School District, CO
Charleston County School District, SC
Columbia Public Schools, MO
Davis School District, UT
Greenville County Schools, SC
Mariposa County Unified School District, CA
Newark Board of Education, NJ
DOE is also accelerating a range of grants, technical assistance, and lending to support schools along each step of the school improvement process. These efforts include the Better Buildings Challenge and its K-12 Sector partnerships; DOE’s new tool—eProject eXpress—that can support state and local governments and K-12 schools in project management for energy saving performance contracts, and help leverage financing to maximize impact; and DOE’s Loan Programs Office Renewable Energy and Efficient Energy Solicitation that can be accessed by schools to provide up to $3 billion in loan guarantees for retrofit projects.
And to ensure that schools are supported in creating healthy, safe, sustainable, 21st century learning environments, the Department of Education is proposing a new Office of Infrastructure and Sustainability, as part of the President’s FY2023 Budget. This office would oversee a proposed National Clearinghouse on School Infrastructure and Sustainability and administer the ongoing U.S. Department of Education Green Ribbon Schools recognition award. The proposed National Clearinghouse on School Infrastructure and Sustainability would provide technical assistance and training to state and local education agencies on issues related to educational facility planning, design, financing, construction, improvement, operation, and maintenance, including green building design and operation practices consistent with the Administration’s commitment to tackling the climate crisis. The Clearinghouse would also develop resources and assemble best practices on issues related to ensuring equitable access to healthy, educationally adequate and environmentally and fiscally sustainable public-school facilities and grounds. To set the stage for this new office, the Department of Education recently named a Special Advisor for Infrastructure and Sustainability to spearhead agency-wide consideration of how existing programs might support school sustainability and infrastructure.
These actions build on the Biden-Harris Administration’s Clean Air in Buildings Challenge, which calls on all building owners and operators, schools, colleges and universities, and organizations of all kinds to adopt key strategies to improve indoor air quality in their buildings and reduce the spread of COVID-19. It serves as a call to action to assess indoor air quality and make ventilation and air filtration improvements to help keep occupants safe. The Environmental Protection Agency (EPA) published a best practices guide for improving indoor air quality and reducing the risk of spreading dangerous airborne particles.
Clean and Safe School Transportation School buses safely transport more than 25 million children every day across America. However, diesel exhaust from buses produces particulate matter and other pollutants that can cause lung damage and aggravate asthma and other health problems in children. Through the Bipartisan Infrastructure Law, the Environmental Protection Agency and the Department of Transportation, with support and technical assistance from the Department of Energy, are making historic investments in cleaner school buses and safer school transportation routes.
Today, the Environmental Protection Agency is building public awareness for the new $5 billion Clean School Bus Program created by President Biden’s Bipartisan Infrastructure Law. Throughout the next month, EPA will regularly post new online resources and webinars for the Clean School Bus Program to help school districts and other eligible recipients prepare for the first round of applications. These resources build upon EPA’s public education and outreach effort, to gather ideas and increase awareness within communities and school districts, particularly for lower-resourced schools—in support of the President’s Justice40 commitment.
The Department of Transportation is helping communities take advantage of funding to support safer routes to schools made available by the Bipartisan Infrastructure Law. The Safe Routes to School (SRTS) program at DOT helps communities plan, design, and construct infrastructure projects that increase healthy transportation choices and substantially improve the ability of students to walk and bicycle safely to school—particularly in communities underserved by safe transportation options. Since 2015, the SRTS program has supported over $1 billion in safe school route projects benefiting nearly 7 million students across more than 17,000 schools—a third of which were in disadvantaged communities and Title I schools.
The Bipartisan Infrastructure Law expanded the eligibility of the SRTS program to schools through 12th grade and added eligibility for safe school route projects through the nearly $17 billion-per-year Highway Safety Improvement Program—including for use in training and education.
Support for Rural, Tribal, and Puerto Rican Schools The U.S. Department of Agriculture announced today a new commitment to support school facility and vehicle electrification, including school buses. In support of this commitment, USDA released a new guidance that informs how Rural Development programs can support rural electric cooperatives to advance electrification projects for schools and other public facilities and vehicles.
These funding and assistance programs can support rural utilities like those in a newly formed Electric Cooperative School Bus Initiative , a collaboration of more than 350 local distribution cooperatives across 32 states, providing educational and administrative support to help rural communities access funding for electric school buses and school bus infrastructure.
Additionally, DOE is partnering with the Department of the Interior’s Bureau of Indian Education (BIE) to improve the state of our federally-operated schools. Aligning with the President’s Justice 40 Initiative, the DOE Federal Energy Management Program (FEMP) is assisting BIE to initiate a set of pilot assessments in Tribal schools for energy efficiency and indoor air quality projects.
The Administration’s Working Group on Puerto Rico has prioritized supporting school reconstruction efforts on the island. Agencies collaborated on a toolkit in both English and Spanish outlining federal resources available to help Puerto Rico recover and rebuild safe, healthy and modernized school facilities. Agencies have also provided technical assistance to Puerto Rican officials on how they can leverage multiple funding streams to rebuild, repair, and modernize their schools.
Support for Training and Workforce Development School improvements provide critical training opportunities for building an effective workforce. Large school projects often last multiple years and draw upon a large mix of trades. This continuity of training and employment makes them ideal opportunities for pre-apprenticeship and apprenticeship programs that lead directly to good-paying careers. And when done alongside the President’s Justice40 Initiative, these investments will prioritize under-resourced schools while also investing in communities that can benefit from long-term training and employment.
The Department of Labor’s Good Jobs Initiative is supporting federal agency partners as they embed job quality and equity policies into their infrastructure investments. The Good Jobs Initiative is supporting federal agency partners as they work to leverage their infrastructure investments to provide meaningful opportunities for all communities to enter good paying union careers.
The wide array of federal offerings can support initiatives such as the Carbon Free and Healthy Schools campaign–which is led by labor unions in collaboration with students, parents, and climate advocates across the country–to create safe, healthy, and cost-effective school environments through building retrofits and solarization, while supporting strong labor standards and robust worker training opportunities. The campaign is currently working with school districts representing more than five million students across Texas, California, Illinois, New York, Connecticut, Rhode Island, Michigan, Maine, and Wisconsin, with more state campaigns in formation.
WASHINGTON, D.C.— As part the new Biden-Harris Action Plan for Building Better School Infrastructure, the U.S. Department of Energy (DOE) released a Request for Information (RFI) for a $500 million grant program from President Biden’s Bipartisan Infrastructure Law for K-12 public school energy upgrades. The program will help deliver cleaner and healthier classrooms, libraries, cafeterias, playgrounds, and gyms where over three million teachers teach and 50 million students learn, eat, and build friendships every day. Energy upgrades to America’s public schools, including leveraging renewable power sources and electric school buses, will bring the nation closer to President Biden’s goal to build a net-zero economy by 2050.
“Children should be able to learn and grow in environments that are not plagued with poor insulation and ventilation, leaky roofs, or poor heating and cooling,” said U.S. Secretary of Energy Jennifer M. Granholm. “President Biden fought for these funds to give schools and their communities the resources they need to improve student and teacher health and cut energy costs, allowing districts to focus more resources on student learning.”
Many of America’s public schools are in desperate need of energy improvements. The American Society of Civil Engineers gave the nation’s 100,000 public K-12 schools a D+ in their 2021 Report Card for America’s Infrastructure report. Dilapidated school facilities can negatively affect student learning and health as indoor air quality problems can aggravate respiratory illnesses, reduce student and teacher attendance and performance, and increase risk of transmission of respiratory infections like COVID-19.
Energy consumption is the second-highest operational expense schools face with a significant portion of this energy lost through leaky school walls, windows, and other inefficient equipment and systems. Districts that serve rural, high poverty, or Hispanic/Latino, African American, and Native American communities experience the greatest burden of failing or antiquated school facilities.
Public school facilities will be eligible for energy improvements that result in a direct reduction in school energy costs, including improvements to the air conditioning and heating, ventilation, hot water heating, and lighting systems. In addition, funding would support any improvement, repair, renovation to, or installation in a school that leads to an improvement in teacher and student health.
President Biden’s Bipartisan Infrastructure Law’s grant funding will also support additional improvements, repairs, or renovations such as the installation of renewable energy technologies, the installation of alternative fueled vehicle infrastructure on school grounds such as school buses or the purchase or lease of alternative fueled vehicles to be used by a school.
DOE encourages Local Education Agencies, school staff, states, local governments, energy service companies, unions, service providers, and utilities to respond to the RFI.
The deadline to submit your response to this RFI is May 18, 2022, at 5 p.m. ET. Download the RFI to see the full list of questions and instructions on how to submit your response.
With the Russian invasion of Ukraine likely to take up a large measure of President Joe Biden’s first State of the Union speech, he is unlikely to have enough time or space to detail his accomplishments and his agenda going forward. Here are more details from the White House about what the President will say about clean energy manufacturing, strengthening the US energy sector, and cutting consumer costs and creating good-paying jobs:
President Biden campaigned on a bold vision of tackling the climate crisis with the urgency that science demands by seizing the opportunity to build a strong domestic energy sector that can manufacture and deploy clean energy for the benefit of all Americans—with lower costs for families, good-paying jobs for workers, and healthier air and cleaner water for communities.
Since Day One, he has delivered. After rejoining the Paris Agreement, restoring scientific integrity, and reinvigorating U.S. leadership on the world stage, President Biden mobilized every federal agency to achieve groundbreaking goals: reducing greenhouse gas emissions 50-52% below 2005 levels in 2030, reaching 100% carbon pollution-free electricity by 2035, and delivering 40% of the benefits from federal investments in climate and clean energy to disadvantaged communities. The President formed the first-ever National Climate Task Force, bringing together Cabinet leaders to drive decisive action toward those goals.
Alongside historic executive actions, President Biden also made climate action and environmental justice a centerpiece of his Bipartisan Infrastructure Law—which includes the largest federal investments ever in upgrading the power grid, improving public transit and investing in zero-emission transit and school buses, installing a nationwide EV charging network, cleaning up legacy pollution, delivering clean water and replacing lead pipes, demonstrating innovative climate technologies, and increasing climate resilience to safeguard against extreme weather, which last year caused more than $145 billion in damages from the biggest 20 disasters alone.
CALLING ON CONGRESS TO DELIVER
President Biden knows that we need to move even faster to combat climate change—and that to meet the moment and fully seize the economic opportunity in front of us, Congress must act. In his first State of the Union address, the President will call on Congress to deliver on a legislative agenda for clean energy and climate action that has overwhelming support from the American people—Republicans, Democrats, and Independents.
Specifically, the President will lift up the benefits we can secure for American consumers, companies, and communities by enacting critical investments and tax credits for domestic clean energy manufacturing and deployment. He will also highlight how the investments and tax credits would cut energy costs for American families an average of $500 per year.
As part of the President’s unwavering support for climate solutions, these investments will reduce emissions, lower costs for families, create good-paying jobs for workers, and advance environmental justice.
BOLD ACTIONS TWO MONTHS INTO 2022
As the President works with Congress to deliver on this legislative agenda, he will continue taking decisive and bold action—building on the surge of momentum he has spearheaded to tackle the climate crisis. During just the first two months of 2022, the Biden-Harris Administration:
Announced actions from seven agencies on clean energy deployment, including new investments and partnerships to advance offshore wind; steps to fast-track solar, onshore wind, and geothermal energy on public lands; and the “Building a Better Grid” initiative to build out long-distance transmission lines and unlock clean energy resources.
Launched the Building Performance Standards Coalition with more than 30 state and local governments to reduce emissions, create good-paying union jobs in energy efficiency and electrification, and lower energy bills, with federal assistance for policy design and implementation.
Built on the Methane Emissions Reduction Action Plan by announcing an initial $1.15 billion to clean up orphaned oil and gas wells, $725 million to reclaim abandoned mine lands, a new interagency initiative on measurement and monitoring of methane and other greenhouse emissions, enforcement efforts to minimize methane emissions from pipeline systems, and more.
Advanced America’s electric vehicle future, standing with CEOs to announce new manufacturing facilities for electric vehicles, batteries, and chargers and issuing state allocations and guidance for the Bipartisan Infrastructure Law’s $5 billion National Electric Vehicle Infrastructure Formula Program.
Convened a roundtable of electric utility CEOs to discuss their support for Congressional investments in clean energy to reduce costs for families, make the power grid more resilient and reliable, and advance American innovation, job creation, and economic competitiveness.
Took major steps to reduce industrial emissions and advance clean manufacturing, including clean hydrogen investments, the first Buy Clean Task Force for federal purchasing of low-carbon construction materials, progress on carbon-based trade policies to reward clean steel and aluminum manufacturing, guidance on responsible deployment of Carbon Capture, Utilization, and Sequestration technologies, and new initiatives to ensure that industrial innovation benefits American workers and communities.
Released the Climate and Economic Justice Screening Tool for public feedback, to help agencies deliver benefits to disadvantaged communities and fulfill the President’s Justice40 commitment.
Announced major investments to secure a Made in America supply chain for critical minerals and sustainably source key inputs (including lithium and rare earth elements) for clean energy technologies like batteries, electric vehicles, wind turbines, and solar panels. This includes taking action to update outdated mining regulations and laws to ensure that extraction and production adheres to strong environmental, labor, and community and Tribal engagement standards.
ReleasedAmerica’s Strategy to Secure the Supply Chain for a Robust Clean Energy Transition,a first-of-its-kind energy sector industrial base strategy, which includes the creation of a new Manufacturing and Energy Supply Chains Office at the Department of Energy to strengthen, secure, and modernize the nation’s energy infrastructure and support clean energy manufacturing jobs.
Held a record-shattering offshore wind auction in the New York Bight, with winning bids for six lease areas totaling $4.37 billion, signaling the arrival of a strong American industry that’s here to stay. Innovative lease stipulations will promote projects built with union labor and Made in America materials, and these projects will generate clean electricity to power millions of homes.
HISTORIC YEAR OF PROGRESS This wave of climate action to kick off 2022 builds on historic progress President Biden achieved during his first year in office, when he:
For the first time, set an official target to reach net-zero greenhouse gas emissions, economy-wide, by no later than 2050 and cut greenhouse gas pollution by more than half in 2030.
Fast-tracked clean energy, setting national records with hundreds of new solar, wind, and storage projects—which are creating good-paying, union jobs and lowering energy costs.
Jumpstarted an electric transportation future that’s Made in America, uniting automakers and autoworkers to get to 50% electric vehicle sales share in 2030 and spurring investments of over $100 billion in the American EV and battery manufacturing industry.
South Fork Wind Project to Kickstart New York’s Offshore Wind Industry, Provide Clean Energy to Long Island
Supports the Climate Leadership and Community Protection Act Goal to Develop 9,000 Megawatts of Offshore Wind by 2035
New York State Governor Kathy Hochul, alongside United States Secretary of the Interior Deb Haaland and other elected officials, on February 11 celebrated the start of construction of South Fork Wind, New York’s first offshore wind project, jointly developed by Ørsted and Eversource off the coast of Long Island. Building on the Bureau of Ocean Energy Management’s (BOEM) January issuance of the Final Sale Notice for the New York Bight, the recent key offshore wind contract milestone, and the State of the State announcement of a nation-leading $500 million investment in offshore wind ports, manufacturing, and supply chain infrastructure to accompany New York’s next offshore wind solicitation, New York continues to advance the Climate Leadership and Community Protection Act goal to develop 9,000 megawatts of offshore wind by 2035.
“The harsh impacts and costly realities of climate change are all too familiar on Long Island, but today as we break ground on New York’s first offshore wind project we are delivering on the promise of a cleaner, greener path forward that will benefit generations to come,” Governor Hochul said. “South Fork Wind will eliminate up to six million tons of carbon emissions over the next twenty-five years benefiting not only the Empire State, but our nation as a whole. This project will also create hundreds of good-paying jobs, helping spur economic growth across the region as we continue to recover from COVID-19. This is a historic day for New York, and I look forward to continue working with Secretary Haaland as we lead our nation toward a greener, brighter future for all.”
“America’s clean energy transition is not a dream for a distant future – it is happening right here and now,” US Department of Interior Secretary Deb Haaland said. “Offshore wind will power our communities, advance our environmental justice goals, and stimulate our economy by creating thousands of good-paying union jobs across the nation. This is one of many actions we are taking in pursuit of the President’s goal to improve both the lives of American families and the health of our planet.”
The Governor, who made today’s announcement in Wainscott, celebrated South Fork Wind kickstarting New York’s offshore wind generation when it becomes operational in late 2023. South Fork Wind will be one of the first commercial-scale offshore wind projects to commence operation in North America. Selected under a 2015 Long Island Power Authority (LIPA) request for proposals to address growing power needs on the east end of Long Island, the project will be located about 35 miles east of Montauk Point and its 12 Siemens-Gamesa 11 MW turbines will generate approximately 130 megawatts of power – enough to power over 70,000 homes. Its transmission system will deliver clean energy directly to the electric grid in the Town of East Hampton. Over a 25-year period, South Fork Wind is expected to eliminate up to six million tons of carbon emissions, or the equivalent of taking 60,000 cars off the road annually.
NYSERDA President & CEO Doreen M. Harris said, “With construction beginning on the South Fork Wind project, we are solidifying New York State’s clean energy vision and blazing a trail as we lead the nation in offshore wind development. As our state’s first offshore wind project, South Fork is helping to usher in the grid of the future as New York continues to build the most robust offshore wind project and supply chain in the nation, strengthen workforce development and partnerships with labor to provide a pipeline of talent for these critical projects, and establish the green economy that will power New York for years to come.”
Long Island Power Authority CEO Thomas Falcone said,”In 2017, the forward-thinking approach of the LIPA Board of Trustees led to the approval of the South Fork Wind project at a time when there were no other power purchase agreements for offshore wind in the country,” Long Island Power Authority CEO Thomas Falcone said. “As the first offshore wind farm in New York, South Fork Wind is the beginning of a new industry for our region that will be vital to New York meeting its goal of a zero-carbon electric grid by 2040.”
Indeed, the campaign to get offshore wind power for Long Island and New York State has been years in the making – activists had to battle back against efforts by fossil fuel industry to create NLG terminals in the very area the best in the nation for an offshore wind farm. But just as everything was in place, in 2017, Trump reversed course on promoting clean, renewable energy in favor of fossil fuel and even reignited the prospect of off-shore drilling. The Biden Administration moved swiftly to restart offshore windpower – in California and in New York, seeing the benefits of climate-action initiatives as not only protecting the environment and the economy but promoting jobs.
Department of Environmental Conservation (DEC) Commissioner Basil Seggos said,”New York is setting the example for the nation on tapping into the potential of offshore wind to help meet our energy needs while the state transitions to a cleaner, greener energy future. South Fork Wind is an exciting and transformative project that will help achieve our state’s ambitious goals to reduce greenhouse gas emissions and ramp up renewable energy sources while safeguarding our natural resources and driving new economic opportunities here on Long Island and across the state.”
“South Fork Wind’s groundbreaking is a historic milestone for New York’s offshore wind industry and for all New Yorkers in our efforts to address climate change,” Acting Secretary of State Robert J. Rodriguez said. “The Department of State continues to work with our stakeholders and government partners to minimize potential project impacts and avoid disruptions to our coastal economy as we transition to a cleaner, greener future. Through our combined efforts, New Yorkers will continue to enjoy Long Island’s pristine beaches and the rich ocean resources off our State as we reduce the State’s carbon footprint.”
“This significant milestone solidifies New York’s global leadership in the clean economy,” New York State Department of Labor Commissioner Roberta Reardon said. “The groundwork we lay today is creating new, exciting employment opportunities for New Yorkers while also protecting our environment for future generations. As Co-chair for the Just Transition Working Group, I thank Governor Hochul for leading the charge and for her unending commitment to ensuring the inclusion of disadvantaged communities in this movement.”
Public Service Commission Chair Rory M. Christian said, “The South Fork project will play a key role in developing much needed clean-energy for New York State and it will help New York achieve its nation-leading renewable energy goals while creating jobs and opportunities for individuals and industries. South Fork is a win for Long Island, and a win for all New Yorkers.”
Office of General Services (OGS) Commissioner Jeanette M. Moy said, “The start of the first off-shore wind project in New York State demonstrates Governor Hochul’s strong commitment to meeting the challenges of sustainability and ensuring New York’s future is green. OGS is proud to have a role in the South Fork Wind project and in advancing the State’s forward-looking climate and green-energy initiatives.”
“Offshore wind is crucial to fueling a green economy and promoting sustainable economic opportunities,” Empire State Development Acting Commissioner and President & CEO-designate Hope Knight said. “The start of construction at New York State’s first offshore wind project at South Fork Wind signifies at important step towards achieving clean energy goals and creating green jobs, which advances Empire State Development’s mission to prepare our economy for the future. With today’s announcement, New York State will continue to be leaders in the fight against climate change while strengthening our standing in offshore wind manufacturing.”
This milestone follows BOEM’s approval last month of the project’s Construction and Operations Plan (COP). The COP outlines the project’s one nautical mile turbine spacing, the requirements on the construction methodology for all work occurring in federal ocean waters, and mitigation measures to protect marine habitats and species. BOEM’s final approval of the COP follows the agency’s November 2021 issuance of the Record of Decision, which concluded the thorough BOEM-led environmental review of the project.
Senator Todd Kaminsky said,”Today’s announcement helps solidify New York as a leader in the green economy. The CLCPA set the most aggressive goals in the country and offshore wind on Long Island is central to meeting them. This project is a catalyst and shows that you can think big and get it done on Long Island.”
Assemblymember Steve Englebright said,”The South Fork Wind Project is a key first step to our state’s commitment to reducing greenhouse gases and meeting the challenge of climate change. I applaud Governor Hochul’s vision and determination to advance and enhance New York’s renewable wind energy portfolio.”
Assemblymember Fred Thiele said,”I’m proud to say that Long Island is an emerging trailblazer in renewable energy and will soon lead the state and the nation in offshore wind energy production. South Fork Wind Farm opens an exciting new chapter for us here on the East End, and I look forward to soon having a greener grid powered by this historic investment. I thank Governor Hochul for her continuous leadership and support.”
“Long Island has been a leader in all things clean energy, and as we begin construction on New York’s first wind farm, we are changing how we power our homes and businesses here in Suffolk,” Suffolk County Executive Steve Bellone said. ”This historic project, which puts Suffolk County at the heart of the offshore wind industry and will power roughly 70,000 homes, is a major victory for our economy, for labor, and for our environment as we remain committed to addressing the impacts of climate change on our region.”
East Hampton Town Supervisor Peter Van Scoyoc said,”In 2014 East Hampton was the first municipality in New York to adopt a 100% renewable energy goal. Today, with the beginning of the construction of New York’s first offshore wind farm we are very close to reaching that goal. We applaud Governor Hochul’s nation leading investment in offshore wind energy which puts New York at the forefront of our country’s efforts to combat climate change.”
New York League of Conservation Voters President Julie Tighe said, “Today, we are moving from concept to reality with the groundbreaking of South Fork Wind Farm, New York’s first offshore wind project. Congratulations to Ørstedand Eversource! This day is the culmination of years of perseverance to launch this project and new industry that will change the way we power our economy. We have a long way to go to meet our climate goals, but major investments like this combined with the leadership and commitment of Governor Hochul, Secretary Haaland, and BOEM Director Lefton are setting us on the course for a clean energy revolution.”
“With the start of construction on New York’s first offshore wind farm, we continue to deliver on our vision of a new U.S. energy industry that will generate clean power, jobs, and economic opportunity,” Ørsted Offshore North America CEO David Hardy said. “I am grateful for the many champions who have supported South Fork Wind to get us to this critical moment, and for the Biden Administration and New York’s leadership and commitment to the offshore wind industry.”
Eversource Energy President & CEO Joe Nolan said, “Today we make history as we celebrate the start of construction on New York’s first offshore wind farm. As homegrown experts in regional energy transmission, we have led the way on countless infrastructure projects, but today, we commemorate something entirely new and different. For the very first time, we will be leveraging our expertise to harness the vast, untapped potential of offshore wind.”
Nassau Suffolk Building and Construction Trades Council President Marty Aracich said, “The start of the construction phase for Offshore Wind marks a new era in reaching New York State’s goal of significantly reducing emissions. The skilled trades have a role by placing shovels in the ground as they implement the last leg of this relay race and position NYS to reign supreme along the Eastern Seaboard in combating climate change. Governor Hochul’s shared vision and commitment with NYSERDA enhances the alliance of Orsted/Eversource and North America’s Building Trades Unions. New York State remains focused on providing opportunities that will create a local workforce leading to a brighter, cleaner future for generations to come. Many thanks to Governor Hochul, Secretary of Interior Deb Harland, Amanda Lefton, Doreen Harris, and our partners in Labor for providing leadership as well as a moral compass guiding the earth on a path to heal itself.”
Long Island Federation of Labor, AFL-CIO President John R. Durso said,”This is a victory for Long Island and all New Yorkers. This is not only a crucial step forward in the fight against climate change, but it means jobs and new clean energy resources on Long Island where it is needed most. After many years of hard work in planning and development by Ørsted and Eversource, with support from labor and community allies, we are realizing the success we have all been waiting for.”
South Fork Wind will be built under industry-leading project labor agreements and specific partnerships with local union organizations, ensuring local union labor’s participation in all phases of construction on the project. Onshore construction activities for the project’s underground duct bank system and interconnection facility are the first to begin and will source construction labor from local union hiring halls. Ørsted and Eversource reached these provisions and protections working closely with a range of external organizations and experts, a commitment the companies carry to all stakeholder relationships to support coexistence.
Long Island-based contractor Haugland Energy Group LLC (an affiliate of Haugland Group LLC) was selected to install the duct bank system for the project’s underground onshore transmission line and lead the construction of the onshore interconnection facility located in East Hampton. This agreement will create more than 100 union jobs for Long Island skilled trades workers, including heavy equipment operators, electricians, lineworkers, and local delivery drivers who will support transportation of materials to the project site. Fabrication of the project’s offshore substation is already underway.
New York State has five offshore wind projects in active development, the largest portfolio in the nation. This current portfolio totals more than 4,300 megawatts and will power more than 2.4 million New York homes, and it is expected to bring a combined economic impact of $12.1 billion to the state. The projects are also expected to create more than 6,800 jobs in project development, component manufacturing, installation, and operations and maintenance. Achieving the State’s 9,000 megawatt by 2035 goal will generate enough offshore wind energy to power approximately 30 percent of New York State’s electricity needs, equivalent to nearly 6 million New York State homes, and spur approximately 10,000 jobs.
New York State’s Nation-Leading Climate Plan
New York State’s nation-leading climate agenda is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as New York State recovers from the COVID-19 pandemic. Enshrined into law through the Climate Leadership and Community Protection Act, New York is on a path to achieve its mandated goal of a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and to reach economy wide carbon neutrality.
It builds on New York’s unprecedented investments to ramp-up clean energy including over $33 billion in 102 large-scale renewable and transmission projects across the state, $6.8 billion to reduce buildings emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.6 billion in NY Green Bank commitments. Combined, these investments are supporting nearly 158,000 jobs in New York’s clean energy sector in 2020, a 2,100 percent growth in the distributed solar sector since 2011 and a commitment to develop 9,000 megawatts of offshore wind by 2035.
Under the Climate Act, New York will build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while ensuring that at least 35 percent with a goal of 40 percent of the benefits of clean energy investments are directed to disadvantaged communities, and advance progress towards the state’s 2025 energy efficiency target of reducing on-site energy consumption by 185 trillion BTUs of end-use energy savings.
New York State Governor Kathy Hochul today at the Port of Albany, alongside U.S. Secretary of Energy Jennifer M. Granholm, Congressman Paul Tonko and other elected officials, announced the finalization of contracts between the New York State Energy Research and Development Authority (NYSERDA) and Empire Wind Offshore LLC and Beacon Wind LLC, each a 50-50 partnership between Equinor and bp, for the Empire Wind 2 and Beacon Wind offshore wind projects, representing a key milestone in the advancement of offshore wind development in New York State.
“We know what it takes to build and sustain for the future, it’s in our DNA as New Yorkers,” Governor Hochul said. “By advancing these significant offshore wind projects, we can maintain our cadence for developing projects that will spur much-needed green job creation and investment. No state has felt the impacts of climate change more than New York State, and now more than ever, we can continue to lead the way with our ambitious, nation-leading vision to transition to a renewable energy and a cleaner, greener future.”
Today’s announcement formally closes the State’s second offshore wind competitive solicitation and also includes the first awards for the State’s Offshore Wind Training Institute. Coupled with this week’s issuance of the Bureau of Ocean Energy Management’s (BOEM) Final Sale Notice for the New York Bight and the State of the State announcement of a nation-leading $500 million investment in offshore wind ports, manufacturing, and supply chain to be integrated within NYSERDA’s 2022 solicitation, these events represent a significant step forward in advancing the Climate Leadership and Community Protection Act goal to develop 9,000 megawatts of offshore wind by 2035.
“Hats off to Governor Hochul for taking a huge step towards lowering energy bills for New York households, creating thousands of good-paying jobs, and advancing President Biden’s goal of a robust offshore wind industry in America,” U.S. Secretary of Energy Jennifer M. Granholm said. “We can and will overcome the challenge of climate change, and we’ll do it one clean energy worker at a time.”
Senator Gillibrand said,”As we celebrate New York’s innovation in clean energy this week in Albany, I’m thrilled to announce this key partnership between the New York State Energy Research and Development Authority and Empire Wind Offshore LLC and Beacon Wind LLC. This marks another milestone in our state’s leadership and innovation in clean energy and offshore wind development. I look forward to continuing our great work to bring clean energy jobs and technology to New York.”
“We know New York’s potential for offshore wind development is tremendous,” Congressman Paul Tonko said. “Today’s exciting news will play a pivotal role in expanding this industry, creating good-paying jobs, training the energy workforce of the future, and helping address our most pressing climate challenges. Thanks to all involved in this forward-thinking announcement that invests in our region and pushes New York further down the path to becoming a powerhouse of wind manufacturing.”
NYSERDA President and CEO Doreen M. Harris said, “New York State has been steadfast in its commitment to establish itself as the leading offshore wind market in the nation and a global wind energy manufacturing powerhouse. These contracts with Equinor further solidify our progress and will create new economic opportunities while building a new electric grid powered by clean, renewable energy that paves our way to a healthier and more sustainable future.”
The 1,260-megawatt Empire Wind 2 and 1,230-megawatt Beacon Wind projects were provisionally awarded in January 2021 as a result of NYSERDA’s second offshore wind competitive solicitation. Expected to enter into commercial operation in 2027 and 2028, respectively, the projects will strengthen New York’s economy and further drive investments in ports to directly support offshore wind projects while establishing New York as the hub of the offshore wind supply chain. NYSERDA payments to the projects will commence once they obtain all required permits and approvals, complete construction, and begin delivering power to New York.
The final project contracts are available on NYSERDA’s website and include commitments to the following key benefits:
Unprecedented public and private funding commitments of $644 million in port infrastructure, including:
$357 million in the nation’s first offshore wind tower manufacturing facility to be built at the Port of Albany
More than $287 million in an offshore wind staging and assembly facility at the South Brooklyn Marine Terminal (SBMT), owned by the City of New York and managed by New York City Economic Development Corporation (NYCEDC)
More than $8.9 billion in anticipated in-state spending and the creation of more than 5,200 jobs backed by prevailing wage and project labor agreement commitments.
The average bill impact for customers will be approximately 0.8 percent, or about $0.95 per month. Total project costs, including a cost-effective average all-in development cost of $80.40 per megawatt hour, are approximately seven percent lower than those of NYSERDA’s 2018 awards, signaling offshore wind is a competitively priced renewable energy resource with tremendous benefits.
Equinor Wind US President Siri Espedal Kindem said, “Today’s announcement sets Equinor and bp on the path to provide over 3.3 GWs of offshore wind power for New York. It also offers a large-scale, tangible demonstration of the incredible economic activity and carbon reduction potential being driven by New York’s green energy transition. We are proud to help lead the growth of this exciting industry in New York.”
“These are world class assets and we are moving quickly and safely to get them producing the energy people need in the way that they want it – all the while creating positive ripple effects for the surrounding communities and industry,” bp Senior Vice President for Zero Carbon Energy Felipe Arbelaez said. “Today’s milestone is a critical step forward and we will continue to work hard to deliver the Empire Wind and Beacon Wind projects, providing clean energy and stable returns for decades to come.”
Director of the New York Offshore Wind Alliance Fred Zalcman said, “Today’s suite of announcements moves the state inexorably closer to realization of its’ nation-leading goal of 9,000 MW by 2035 and secures New York as the undisputed economic epicenter for the emerging offshore wind industry. We congratulate NYSERDA and the Equinor-bp joint venture on achieving this major commercial milestone, as well as the recipients of the first training grants to support the first generation of skilled workers to be deployed on these New York’s groundbreaking projects.”
“This is another important step toward reducing emissions, securing New York’s place in the offshore wind industry, and creating good union jobs and careers in communities across the state,” Executive Director of Climate Jobs NY Jeff Vockrodt said. “We look forward to working with the Hochul administration to ensure that these projects move forward expeditiously, that the jobs created are good family-sustaining union jobs, and that New Yorkers see the economic benefits of these investments. We are also encouraged to see that NYSERDA plans to issue the next solicitation for offshore wind power soon, which together with Governor Hochul’s recent announcement of $500 million in new supply chain investments will help build out ports and other essential offshore wind infrastructure.”
This week, Governor Hochul joined United States Secretary of the Interior Deb Haaland, and New Jersey Governor Phil Murphy to announce BOEM’s Final Sale Notice of six new leases, comprised of 488,000 total acres for offshore wind development in the New York Bight, and the release of the document “A Shared Vision on the Development of an Offshore Wind Supply Chain,” which describes a coordinated offshore wind supply chain effort between New York, New Jersey and BOEM. These additional lease areas are needed for New York and New Jersey to achieve their respective offshore wind goals and support the federal government’s offshore wind goal of 30,000 megawatts by 2030.
Keeping pace to be the U.S. leader in the offshore wind industry, New York will launch its third statewide solicitation round in early 2022. As announced in Governor Hochul’s 2022 State of the State address, NYSERDA’s next solicitation is expected to result in at least 2 gigawatts of new projects — enough to power 1.5 million homes, bringing the state’s combined total to more than 4.5 million homes powered by offshore wind. NYSERDA will couple this procurement with a $500 million offshore wind infrastructure investment to catalyze private investments to build the critical infrastructure needed to assure New York’s prominence as the hub for this burgeoning industry. The solicitation will include improvements to the approach for offshore transmission based on recommendations from the New York State Power Grid Study, increased emphasis on in-state manufacturing, inclusive economic development and climate equity, an emphasis on close relations with New York’s labor force including construction backed by prevailing wage and project labor agreements, and additional scoring credit for projects that propose to repurpose existing downstate fossil-based electric generation infrastructure and utilize energy storage to enhance future system reliability.
New York State Department of Labor Commissioner Roberta Reardon said, “Offshore wind is breathing fresh air into New York’s economy. With the support of a well-trained workforce, this emerging sector will bring economic prosperity for years to come. I thank Governor Hochul for continuing to strategically invest in our economy, our environment, and New York’s workforce.”
“Offshore wind ports will fuel both a green economy and economic opportunities,” Empire State Development Acting Commissioner and President & CEO-designate Hope Knight said. “Empire Wind 2 and Beacon Wind will make New York State greener and create green jobs, which advances Empire State Development’s mission to prepare our economy for the future. With today’s announcement, New York will continue to be leaders in the fight against climate change and production of green energy and green jobs – bringing us closer to the State’s ambitious climate goals.”
President and CEO of the Center for Economic Growth Mark Eagan said,”We are witnessing the birth of a sector that is not only new to New York State, but the entire country. It’s real and it’s concentrating here – in the Capital Region. New York State is a pioneer in the offshore wind industry, and we are deeply thankful for the vision and commitment of Governor Hochul and NYSERDA. We congratulate Equinor, bp, and the Port of Albany on this contract, which will help transform our economy and provide good-paying jobs. CEG started globally marketing the region’s offshore wind potential three years ago, and that has helped yield this nation-leading investment with more on the way. CEG will continue to work with its partners to leverage state and federal dollars to further build out the Capital Region as the location-of-choice for offshore wind component manufacturing.”
Adrienne Esposito, Executive Director, Citizens Campaign for the Environment said, “This announcement is one step forward for wind power, and a giant leap for a cleaner energy future. It is thrilling to see significant progress that guides our transition from fossil fuels to renewable energy. The public strongly supports this transition and New York is delivering! As we build a green economy and advanced offshore wind, we are fulfilling the commitment to make New York a leader in the battle to fight climate change. Thank you to Governor Hochul and NYSERDA for continuing to forge a pathway of progress.”
These advancements build on New York’s continued responsible and cost-effective approach to developing offshore wind, including NYSERDA’s recently published Guiding Principles for Offshore Wind Stakeholder Engagement, and Request for Information seeking feedback from the public and interested stakeholders to identify topics to consider in the analysis of offshore and onshore cable corridors. NYSERDA will also initiate a new Offshore Wind Master Plan 2.0: Deep Water to unlock the next frontier of offshore wind development this year.
New York State has five offshore wind projects in active development, the largest portfolio in the nation. This initial portfolio totals more than 4,300 megawatts and will power more than 2.4 million New York homes and is expected to bring a combined economic impact of $12.1 billion to the state. The projects are also expected to create more than 6,800 jobs in project development, component manufacturing, installation, and operations and maintenance. Achieving the State’s 9,000 megawatt by 2035 goal will generate enough offshore wind energy to power approximately 30 percent of New York State’s electricity needs, equivalent to nearly 6 million New York State homes, and spur approximately 10,000 jobs.
Offshore Wind Training Institute
Also announced today were the first round of competitive awards under the State’s $20 million Offshore Wind Training Institute, the largest public investment in offshore wind workforce development by any state in the U.S. Through a partnership between the State University of New York’s Farmingdale State College and Stony Brook University on Long Island, the training institute aims to advance offshore wind training programs and the educational infrastructure needed to establish a skilled workforce that can support the emerging national offshore wind industry. The Institute will certify and train 2,500 New York workers beginning this year to support both offshore and onshore renewable energy projects.
The first two winning proposals will receive a combined $569,618 to support early training and skills development for disadvantaged communities and priority populations – including veterans, individuals with disabilities, low-income individuals, homeless individuals, and single parents – in both the Capital Region and New York City. Awardees include:
Hudson Valley Community College in Troy, NY (HVCC)
LaGuardia Community College in Queens, NY (LAGCC)
To help build a strong pipeline for the Capital Region’s offshore wind initiative, HVCC recently began offering a two-year associate degree in welding and fabrication and will focus student recruitment efforts on priority populations in urban and rural disadvantaged communities, providing full or partial scholarships to participants. Foundational welding skills training will be provided by the Capital Region Educational Opportunity Center, a division of HVCC with additional non-credit training and certifications be provided at the college’s main campus. The college will also partner with regional manufacturers building turbine components to provide a skilled workforce pipeline of welders and fabricators, aiming to train 75 individuals, including 65 from priority populations and disadvantaged communities.
LAGCC is partnering with Siemens Gamesa to build an inclusive offshore wind workforce that ensures a robust local talent pipeline for the construction, repair, and maintenance of offshore wind facilities in the New York City metro area. The college will convene employers to detail the skill gaps for both new entrants to the workforce and incumbent workers in the construction trades to help inform and develop a best-in-class custom curriculum. A total of fifty low-income individuals from the Brooklyn-Queens waterfront will be trained to work as offshore wind technicians.
Penny Hill, Dean of Economic Development and Workforce Initiatives for HVCC, said, “Hudson Valley Community College is committed to helping supply the workforce for New York State’s clean energy future. In addition to those trained in welding and fabrication, the college is ready to provide other educational opportunities to support the offshore wind industry. We look forward to partnering with manufacturers to provide job training and build stronger, more resilient communities.”
“Building an inclusive offshore wind workforce will allow us to ensure that low-income communities of color and other communities that have been left behind in the past have a chance to lead the green economy of the future,” Hannah Weinstock, Senior Director of Workforce Development for LAGCC, said.
NYS’s Nation-Leading Climate Plan
New York State’s nation-leading climate agenda is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as New York State recovers from the COVID-19 pandemic. Enshrined into law through the Climate Leadership and Community Protection Act, New York is on a path to achieve its mandated goal of a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and to reach economy wide carbon neutrality. It builds on New York’s unprecedented investments to ramp-up clean energy including over $33 billion in 102 large-scale renewable and transmission projects across the state, $6.8 billion to reduce buildings emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.6 billion in NY Green Bank commitments. Combined, these investments are supporting nearly 158,000 jobs in New York’s clean energy sector in 2020, a 2,100 percent growth in the distributed solar sector since 2011 and a commitment to develop 9,000 megawatts of offshore wind by 2035. Under the Climate Act, New York will build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while ensuring that at least 35 percent with a goal of 40 percent of the benefits of clean energy investments are directed to disadvantaged communities, and advance progress towards the state’s 2025 energy efficiency target of reducing on-site energy consumption by 185 trillion BTUs of end-use energy savings.
New York Bight lease sale has potential to generate up to seven gigawatts of clean energy, power nearly two million homes
WASHINGTON — Secretary of the Interior Deb Haaland announced today that the Bureau of Ocean Energy Management (BOEM) will hold a wind auction next month for more than 480,000 acres offshore New York and New Jersey, in the area known as the New York Bight. Secretary Haaland was joined by New Jersey Governor Phil Murphy, New York Governor Kathy Hochul, and Liz Shuler, President of the American Federation of Labor and Congress of Industrial Organizations, to highlight what will be the first offshore wind lease sale under the Biden-Harris administration.
The Feb. 23 auction will allow offshore wind developers to bid on six lease areas – the most areas ever offered in a single auction – as described in BOEM’s Final Sale Notice. Leases offered in this sale could result in 5.6 to 7 gigawatts of offshore wind energy, enough to power nearly 2 million homes. As offshore wind technology continues to advance, these areas may have the potential to produce even more clean energy.
“The Biden-Harris administration has made tackling the climate crisis a centerpiece of our agenda, and offshore wind opportunities like the New York Bight present a once-in-a-generation opportunity to fight climate change and create good-paying, union jobs in the United States,” said Secretary of the Interior Deb Haaland. “We are at an inflection point for domestic offshore wind energy development. We must seize this moment – and we must do it together.”
On today’s call, the leaders outlined a shared vision for developing a robust offshore wind domestic supply chain that will deliver benefits to residents of New York and New Jersey and the surrounding region, including underserved communities. This collaboration will serve as a model for future engagement and establish the U.S. as a major player in the global offshore wind market.
The Biden-Harris administration’s goal to install 30 GW of offshore wind by 2030 is complemented by state offshore wind policies and actions throughout the Northeast and Mid-Atlantic. Collectively, New York and New Jersey have set the nation’s largest regional offshore wind target of installing over 16 GW of offshore wind by 2035.
“Offshore wind holds the tremendous promise for our future in terms of climate change, economic growth, strengthening our work force, and job creation,” said Governor Phil Murphy. “New Jersey is already committed to creating nearly one-quarter of the nation’s offshore wind-generation market and these transformative projects are proof that climate action can drive investments in infrastructure and manufacturing, while creating good-paying, union jobs. By acting on this this shared vision, we can promote our joint offshore wind goals, and deliver benefits to residents of both states, particularly those in overburdened communities. Together, with this critical cooperation with the Biden-Harris administration and our state partners, we will turn this vision of becoming a leader in the global offshore wind market into a reality.”
“Here in New York, we are already living with the disastrous effects of climate change through extreme weather that pose a direct threat to our way of life,” said Governor Hochul. “We must chart an ambitious path toward a cleaner energy economy now more than ever, and today’s milestone further highlights New York’s commitment creating a greener tomorrow. This effort will require collaboration at all levels, and I applaud the Biden Administration for their action and thank Secretary Haaland and BOEM, as well as New Jersey Governor Murphy, for their partnership as we confront the climate crisis.”
A recent report indicates that the United States’ growing offshore wind industry presents a $109 billion opportunity in revenue to businesses in the supply chain over the next decade.
The New York Bight offshore wind auction will include several innovative lease stipulations designed to promote the development of a robust domestic U.S. supply chain for offshore wind and enhance engagement with Tribes, the commercial fishing industry, other ocean users, and underserved communities. The stipulations will also advance flexibility in transmission planning and make use of project labor agreements throughout the construction of offshore wind projects. Stipulations include incentives to source major components domestically – such as blades, turbines, and foundations – and to enter into project labor agreements to ensure projects are union-built.
To advance the Department’s environmental justice and economic empowerment goals, the Sale Notice also requires lessees to identify Tribes, underserved communities and other ocean users who could be affected by offshore wind development. The Interior Department will hold companies accountable for improving their engagement, communication and transparency with these communities.
These additions are intended to promote offshore wind development in a way that coexists with other ocean uses and protects the ocean environment, while also facilitating our nation’s energy future for generations to come.
BOEM initially asked for information and nominations of commercial interest for 1,735,154 acres in the Bight. Based on the bureau’s review of scientific data, and extensive input from the commercial fishing industry, Tribes, partnering agencies, key stakeholders, and the public, BOEM reduced the acreage by 72% to avoid conflicts with ocean users and minimize environmental impacts. BOEM will continue to engage with stakeholders as the process unfolds.
More information about the auction, lease stipulations, list of qualified bidders for the auction and Interior’s collaboration with New York and New Jersey can be found on BOEM’s website.
The Biden-Harris administration catalyzed the offshore wind industry by announcing the first-ever national offshore wind energy goal, creating a clear vision for the future of this innovative industry. This goal is reinforced by the Bipartisan Infrastructure Law, which will make robust investments in sustainable economies, clean energy, and climate resilience.
The Administration has already made significant progress toward creating a pipeline of projects. It has approved the nation’s first two commercial-scale offshore wind projects in federal waters: the 800-megawatt Vineyard Wind project (approved on May 11, 2021) and the 130-megawatt South Fork Wind project (approved on November 24, 2021). BOEM expects to review at least 16 plans to construct and operate commercial offshore wind energy facilities by 2025, which would represent more than 22 GW of clean energy for the nation.
This past fall Secretary Haaland announced a new leasing path forward, which identified up to seven potential lease sales by 2025, including the New York Bight and offshore the Carolinas and California later this year, to be followed by lease sales for the Central Atlantic, Gulf of Maine, the Gulf of Mexico, and offshore Oregon.
In addition, Governor Hochul announced plans to invest in offshore wind infrastructure, procure enough wind energy to power at least 1.5 million homes, initiate planning for an offshore wind transmission network, and launch the offshore wind Master Plan 2.0 Deep Water in her 2022 State of the State address. This will ensure that the state has the strongest offshore wind energy market along the Eastern Seaboard. The Governor’s plan for offshore wind will support more than 6,800 jobs, a combined economic impact of $12.1 billion statewide, and more than 4.3 gigawatts of energy, enough to power nearly 3 million homes in New York.
New Actions Advance Offshore Wind, Leverage Public Lands for Clean Energy, and Build the Bipartisan Infrastructure Law’s Transmission Lines
When President Biden came into office nearly a year ago, he pulled every lever to position America to scale up clean energy that creates good-paying, union jobs and lowers energy bills for consumers. Since then, the Biden-Harris Administration has readied offshore areas to harness power from wind, approved new solar projects on public lands, and passed the Bipartisan Infrastructure Law to build thousands of miles of transmission lines that deliver clean energy.
Today, the Biden-Harris Administration is making major leaps forward on wind, solar, transmission, and other clean energy projects to create high-quality jobs and deliver affordable, carbon pollution-free electricity across the country. Seven federal agencies are announcing clean energy projects and plans that demonstrate the Administration’s unwavering commitment to creating cleaner and cheaper energy, and the actions showcase President Biden’s unprecedented coordination activating the entire government to fight climate change, produce good-paying, union jobs, and accelerate America’s clean energy economy.
These actions include:
The Department of the Interior is holding a record-breaking offshore wind lease sale, with the most lease areas ever offered, in the New York Bight off the coasts of New York and New Jersey. The upcoming lease sale is projected to generate up to 7 gigawatts (GW) of clean energy, power two million homes, and create thousands of jobs in manufacturing, construction, operations, maintenance, and service industries in nearby communities. The sale includes innovative lease provisions that will lead to offshore wind projects being built with union labor and Made in America materials. Working together, New York, New Jersey and the federal government will build on these new lease stipulations through a new federal-state partnership that will ensure local residents—including underserved communities—benefit from new developments.
A number of agencies are working together to drive the rapid build-up of offshore wind—a brand new U.S. clean energy industry that can create nearly 80,000 good-paying jobs by 2030. For example, the Department of Transportation recently announced port investments to help develop areas that will be used to build and stage offshore wind turbine components, and efforts are underway across the Departments of Commerce, the Interior, and Energy to promote biodiversity and cooperative ocean use and support innovation across the supply chain.
The Departments of the Interior, Agriculture, Defense, Energy, and the Environmental Protection Agency are forming a new collaboration to improve the efficiency and effectiveness of reviews of clean energy projects on public lands, in order to expand solar, onshore wind, and geothermal energy, building on the Department of the Interior’s approvals over the past year of 18 onshore projects that will deliver 4.175 GW of clean energy.
The Department of Energy is launching a new Building a Better Grid initiative to accelerate the deployment of new transmission lines—as enabled by the Bipartisan Infrastructure Law—to connect more Americans to cleaner, cheaper energy. This transmission buildout will make our grid more reliable and resilient in the face of intensifying extreme weather and is critical to achieving the President’s goal of 100% carbon pollution-free electricity by 2035.
To ensure that these benefits reach all Americans, the Department of Agriculture is creating a new pilot program to support clean energy in underserved rural communities and the Department of Commerce is awarding American Rescue Plan funds to support regional coalitions to grow new industry clusters focused on clean energy deployment and job training. And the release of a new report from the National Renewable Energy Laboratory shows that the Administration’s SolarAPP+ tool is reducing permitting times for residential installations to less than one day, helping local governments fast-track rooftop solar.
Today’s announcements build on a year of unprecedented progress on clean energy deployment. Before President Biden took office, projects were stalled and agencies were hollowed out. But during his first week, the President issued an Executive Order on Tackling the Climate Crisis at Home and Abroad, which mobilized the entire federal government to activate and deploy clean energy so that Americans can reap the immense climate and economic benefits of the clean energy future.
The Administration continues to use every tool available to deploy clean energy at a record pace. But to fully seize the opportunities of a clean energy economy, President Biden is pressing forward on passing the Build Back Better Act. The historic legislation will amount to the nation’s largest investment in combatting climate change, lowering energy costs for working families, and building a clean energy future. It will support domestic manufacturing of wind turbines, solar panels, and other clean technologies; invest in workforce development programs to launch careers in these growing industries; and provide a historic set of clean energy tax credits that are more powerful and accessible. With these investments, the U.S. will lead the world on innovative climate solutions and save the average American family hundreds of dollars each year in energy costs.
As work continues to pass the Build Back Better Act, today’s announcements further the Administration’s ongoing commitment to powering our economy with clean American energy:
ADVANCING OFFSHORE WIND TO CREATE JOBS
To deploy offshore wind at the speed and scale necessary to achieve our climate goals and create tens of thousands of jobs, the Administration is announcing:
Record-Breaking Lease Sale in the New York Bight. Last year, the Administration established a Wind Energy Area in the New York Bight off the coasts of New York and New Jersey. Today, the Department of the Interior’s Bureau of Ocean Energy Management (BOEM) is announcing the Final Sale Notice of six commercial lease areas—the most ever offered—with the potential to generate 5.6 to 7 GW of clean energy across 488,201 acres. Innovative leasing provisions will encourage winning bidders to enter into Project Labor Agreements (PLA) that support union jobs. They also will financially incentivize lessees to utilize wind turbine blades, towers, and cables made in America. To promote meaningful stakeholder engagement, lessees must identify any Tribes, ocean users, underserved communities, and others potentially affected by projects and report on engagement activities.
New State-Federal Partnership. Today, Interior Secretary Deb Haaland joined New York Governor Kathy Hochul and New Jersey Governor Phil Murphy to celebrate progress in the New York Bight and announce a new collaboration between BOEM, New York, and New Jersey on offshore wind with a focus on job creation and environmental justice. Through a new shared vision and working group, these partners will work together on strengthening regional supply chains and delivering benefits to underserved communities.
DOT Port Investments for Manufacturing and Staging Hubs. The Department of Transportation (DOT) recently awarded Port Infrastructure Development Program Grants to two hubs that will strengthen the U.S. offshore wind supply chain. In Virginia, the Portsmouth Marine Terminal will receive $20 million to construct staging and storage areas for wind turbine components—supporting union jobs for dockworkers, crane operators, and building trades members. In New York, the Port of Albany will receive $29.5 million for the Offshore Wind Tower Manufacturing Port Project, which will develop vacant areas along the Hudson River for a first-of-its-kind U.S. facility for fabrication and assembly of offshore wind towers, creating hundreds of jobs in construction, manufacturing, and maritime activities. DOT announced in March 2021 that this discretionary port funding would be available to support offshore wind activities, and that climate and environmental justice considerations would factor into the review process. The Bipartisan Infrastructure Law significantly increases funding for the Port Infrastructure Development Program Grants to expand federal investments in ports.
Funding for Innovative Supply Chain and Maintenance Projects. The National Offshore Wind Research and Development Consortium is awarding over $3 million to six offshore wind R&D projects, bringing total investment through NOWRDC over the past year to $14 million. The competitive awards will fund three new supply chain projects to facilitate U.S. manufacturing, ensure quality component production, and simplify transportation of major wind plant components. Three additional projects will support asset monitoring and inspection to reduce operational costs for offshore wind farms. The NOWRDC was established in 2018 with a $20.5 million Department of Energy (DOE) investment and matching funds from the New York State Energy Research and Development Authority (NYSERDA), with follow-on contributions from state agencies in Maryland, Virginia, Massachusetts, Maine, and New Jersey—all resulting in approximately $48 million in committed funds.
NOAA-BOEM Memorandum of Understanding. The Commerce Department’s National Oceanic and Atmospheric Administration (NOAA) and BOEM are entering an interagency agreement to collaboratively advance offshore wind energy while protecting biodiversity and promoting cooperative ocean use. This partnership underscores NOAA and BOEM’s commitment to leverage their resources and expertise to responsibly deploy 30 GW by 2030 in a way that protects environmental quality, creates jobs, and advances environmental justice.
DOE Report Underscoring Need for Continued Offshore Wind Investment. The Department of Energy will be issuing a report on “Offshore Wind Energy Strategies: Regional and National Strategies to Maximize the Effectiveness, Reliability, and Sustainability of U.S. Offshore Wind Energy Development and Operation.” It outlines five strategic priorities for tapping into the enormous potential for growth and job creation in the offshore wind industry: expanding targeted federal incentives, reducing costs through innovation, improving siting and permitting processes, investing in supply chain development, and facilitating grid integration of offshore wind projects. The President’s Build Back Better Act would advance these priorities with expanded investment and production tax credits for offshore wind deployment, advanced manufacturing credits to incentivize Made in America wind turbine components, and investments across transmission planning, port infrastructure, and improved leasing and permitting processes.
These actions follow a year of interagency collaboration to jumpstart the U.S. offshore wind industry—in 2021, the Administration:
Approved the nation’s first two commercial-scale offshore wind projects, Vineyard Wind 1 and South Fork Wind, which will be built by a highly skilled, well-paid union workforce.
Developed a roadmap for holding seven offshore wind lease sales and completing reviews of 16 multi-billion dollar offshore wind projects—representing 22 GW of clean energy—by 2025.
Moving ahead in 2022, BOEM will conduct reviews of wind energy areas offshore northern California (Humboldt) and central California (Morro Bay); explore new potential Wind Energy Areas in the Gulf of Mexico and off the coasts of Oregon and the central Atlantic; and advance lease sales in the Carolina Long Bay and offshore California.
FAST-TRACKING CLEAN ENERGY ONSHORE
America’s public lands have substantial potential to support solar, wind, and geothermal energy projects. As part of ongoing efforts to advance these projects in an environmentally sound way and in close collaboration with community stakeholders, the Administration is announcing:
Five-Agency Collaboration to Expedite Reviews. The Departments of the Interior, Agriculture, Defense, Energy, and the Environmental Protection Agency have issued a new Memorandum of Understanding to improve federal agency coordination and prioritize reviews for renewable energy projects located on public lands managed by the Interior and Agriculture Departments. This collaboration will expedite decision-making by establishing interagency coordination teams with qualified staff to facilitate environmental reviews and other federal reviews.
Renewable Energy Coordination Offices. The Department of the Interior is developing plans for new Renewable Energy Coordination Offices (RECOs), authorized by the Energy Act of 2020. The RECOs will realign Bureau of Land Management resources to consolidate renewable energy work, and support collaboration on public lands renewable energy project permitting across Interior and other federal agencies.
Major Progress toward 25 GW by 2025. Since President Biden took office, the Administration has approved 18 onshore projects totaling 4.175 GW (including eight located on public lands and ten with interconnection lines on public lands) and initiated processing of another 54 priority projects with the potential to add at least 27.5 GW of clean energy. Most recently, the Bureau of Land Management approved the Arica and Victory Pass solar projects in California, which will provide up to 465 megawatts of electricity with up to 400 megawatts of battery storage. With today’s actions, the Administration will continue advancing toward the goal of permitting 25 GW of solar, onshore wind, and geothermal energy on public lands by 2025.
BUILDING CLEAN TRANSMISSION LINES
The President’s Bipartisan Infrastructure Law is the largest-ever investment in America’s power grid, including funding to build out thousands of miles of new transmission lines that are critical to unlocking clean energy resources and providing American homes, schools, and businesses with electricity that is more affordable and reliable in the face of extreme weather, wildfires, and other disasters.
To harness the new funding in the Bipartisan Infrastructure Law, today the Department of Energy is announcing a coordinated transmission deployment program, which will catalyze nationwide buildout of long-distance, high-voltage transmission lines. As outlined in a new Notice of Intent, the pillars of the “Building a Better Grid” initiative are:
Financing transmission lines and other grid upgrades, including through the Bipartisan Infrastructure Law’s new $2.5 billion Transmission Facilitation Program, a revolving fund for new, replacement, or upgraded transmission lines; $3 billion expansion of the Smart Grid Investment Grant Program, focused on advanced technologies that increase capacity and enhance flexibility of the existing grid; and more than $10 billion in grants for states, Tribes, and utilities to enhance grid resilience and prevent power outages. DOE will also leverage existing financing, including the $3.25 billion Western Area Power Administration (WAPA) Transmission Infrastructure Program, which facilitates deployment of renewable energy in WAPA’s 15-state service territory, and a number of loan guarantee programs through the Loan Programs Office.
Strengthening coordination with state and local governments, Tribal nations, and other stakeholders, including through participation in regional convenings with independent system operators (ISOs), regional transmission organizations (RTOs), state regulatory commissions, utilities, and others.
Modernizing transmission planning to drive investment to the highest-need projects, including through a new National Transmission Planning Study, National Transmission Needs Study, Offshore Wind Transmission Study, and expanded technical assistance to help states and regions with policy implementation.
Improving permitting processes, in coordination with the Infrastructure Implementation Task Force and other federal initiatives, including by helping developers provide early information to permitting agencies; using public-private partnerships to advance new transmission lines and system upgrades; and designating National Corridors in areas with transmission capacity constraints that harm consumers.
Supporting research, development, and demonstration (RD&D) of next-generation transmission technology, including through collaborations with the National Laboratories and industry partners.
Last year, the Administration laid the foundation for these efforts by revitalizing Department of Energy transmission financing assistance programs and through Department of Transportation actions to help states host transmission lines along public highways and other transportation rights-of-way.
DELIVERING BENEFITS TO COMMUNITIES ACROSS THE COUNTRY
The Administration has prioritized clean energy deployment in rural communities, providing financing for agricultural producers and rural small businesses to install solar arrays and other clean energy infrastructure and for grid upgrades across rural areas. To build on these investments, the Department of Agriculture is creating a new Rural Energy Pilot Program with $10 million in available grants for rural communities that are particularly underserved to deploy community-scale clean energy technologies, innovations, and solutions. This upcoming pilot program will also help economically distressed rural communities conduct community energy planning to advance local goals for clean, affordable, and reliable power.
Additionally, President Biden’s American Rescue Plan is driving historic economic recovery from the pandemic—including by helping communities create new jobs and industries in clean energy. The Department of Commerce’s Economic Development Administration (EDA) recently announced the finalists for Phase 1 of the Build Back Better Regional Challenge, which uses American Rescue Plan funds to support regional industry clusters that will promote equitable economic growth and workforce development. The finalists include 14 regional coalitions focused on clean energy and other climate-related industries, which will receive a combined $7 million in planning grants and compete to win awards of $25 million to $100 million for implementation. Among these finalists are projects to reuse abandoned mine lands for solar, wind, and geothermal energy generation; utilize offshore wind as a power source for hydrogen production in industrial areas; and support clean energy job training, entrepreneurship, and innovation in areas historically dependent on fossil fuel economies.
The Administration is also helping local governments speed up approvals for rooftop solar in order to unlock economic and health benefits for their communities. In July 2021, the Department of Energy launched the Solar Automated Permit Processing (SolarAPP+) tool, an online platform that enables jurisdictions to rapidly approve residential solar installation permits. Now, a new report from the National Renewable Energy Laboratory shows that in a pilot conducted in Arizona and California, the SolarAPP+ tool reduced the average permit review time to less than one day. More than 125 localities have already signed up to consider using SolarAPP+, and the Department of Energy is continuing to recruit additional communities across the country.