Think tank makes new argument for EPA's climate fund

A major EPA climate grant program in the Inflation Reduction Act would create tens of thousands of jobs and nearly $24 billion in additional wages over the next six years, new analysis first viewed by Axios finds.
Why it matters: The study by Energy Innovation — a firm that backs strong CO2-cutting policies — lands as Capitol Hill Republicans look to end the $27 billion Greenhouse Gas Reduction Fund.
And EPA Administrator Lee Zeldin is already seeking to terminate most of it using existing authorities, alleging various abuses, but the efforts are tied up in court.
The fund is the largest non-tax investment in the 2022 law.
Driving the news: The study of $24 billion targeted for project finance notes that while the fund's main goal is embedded in its name, the program would have big economic spillovers.
Energy Innovation — whose CEO, Sonia Aggarwal, is a former Biden White House climate aide — sees an average of 36,000 to 41,000 extra jobs annually compared to current policies.
It also estimates $52 billion in consumer energy cost savings over 20 years and total investment in the U.S. economy of almost $65.5 billion.
Catch up quick: Much of the fund, dubbed a "green bank," stakes nonprofits that will, in turn, seek to build and sustain a wide network of community finance institutions.
They planned to provide low-cost loans and other aid, and it was designed to leverage private capital.
Zeldin has called the program rife with conflicts and abuses, though a federal judge has called out EPA for failing to provide specific evidence.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Bloomberg

37 minutes ago

• Bloomberg

Medicaid Cuts Will Hurt Nearly Half of America's Kids

Republican lawmakers claim their proposal to cut hundreds of billions of dollars from Medicaid is designed to protect the country's most vulnerable — that by focusing on work requirements, they're simply eliminating waste from the bloated program and ensuring the money goes to those who truly need it. In reality, anyone who relies on public insurance could be affected, including about 37 million kids, nearly half of all American children.

The Hill

43 minutes ago

• The Hill

Senate parliamentarian allows GOP to keep ban on state AI rules

The Senate parliamentarian concluded the controversial push to ban state regulation of artificial intelligence for the next 10 years can remain in President Trump's sweeping tax and spending bill. The decision, announced by lawmakers over the weekend, followed weeks of speculation from both parties over whether the provision would overcome the procedural hurdle known as the Byrd Rule. The parliamentarian's decision will allow the provision to be voted on in the budget reconciliation process with a simple-majority vote. It comes after Sen. Ted Cruz (R-Texas), the chair of the Senate Committee on Commerce, Science and Transportation, altered the language of the House's version in hopes of complying with the Byrd Rule, which prohibits 'extraneous matters' from being included in reconciliation packages. Under their proposal, states would be prohibited from regulating AI if they want access to federal funding from the Broadband Equity, Access and Deployment (BEAD) program. The House's version called for a blanket 10-year moratorium on state laws regulating AI models and systems, regardless of funding. Still, some GOP members remained skeptical it would pass the Byrd Rule. Sen. John Cornyn (R-Texas) said last week it was 'doubtful' the provision survives. The provision has further divided Republicans, while Democrats are largely against it. While many Republicans are concerned with overbearing regulation of the emerging tech, a few GOP members argue it goes against the party's traditional support of states' rights. Republican Sens. Marsha Blackburn (Tenn.) and Ron Johnson (Wis.) told The Hill they are against the provision, while Sen. Josh Hawley (R-Mo.) said he is willing to introduce an amendment to eliminate the provision during the Senate's marathon vota-a-rama if it is not taken out earlier. The provision received pushback from some Republicans in the House as well. A group of hard-line conservatives argued in a letter earlier this month to Senate Republicans that Congress is still 'actively investigating' AI and 'does not fully understand the implications' of the technology. This was shortly after Rep. Marjorie Taylor Greene (R-Ga.) confirmed she would be a 'no' on the bill if it comes back to the House with the provision included. 'I am 100 percent opposed, and I will not vote for any bill that destroys federalism and takes away states' rights, ability to regulate and make laws when it regards humans and AI,' the Georgia Republican told reporters. Several Republican state leaders and lawmakers are also pushing back.

Politico

an hour ago

• Politico

Rate cushion confusion

Good morning and welcome to the weekly Monday edition of the New York & New Jersey Energy newsletter. We'll take a look at the week ahead and look back on what you may have missed last week. MANY CUSHIONS — New Jersey Gov. Phil Murphy's administration has created so many overlapping credits to deal with rising energy rates it's now hard to keep track of them and where the money is coming from. Some of the money is basically a loan from utility companies that customers have to pay back. Some of it comes from surcharges and fees that customers have already paid or will pay to the state but that some customers, particularly low- and moderate-income households, are getting back as targeted rate relief. Republicans have criticized Democrats for focusing on rate relief without tackling larger supply-demand issues that have driven up the prices in the first place. To clarify, here's each major bucket: $30 for two months, all residential customers: These are utility bill deferrals given by utility companies at the BPU's request. The credits will come off the July and August bills for all of the state's 3.9 million residential customers. The $60 must be paid back in $10 interest-free installments over the next six months, from September through February. $100 once, all residential customers: This comes out of the $430 million ratepayer relief package Gov. Phil Murphy and legislative Democrats announced just before the June primary election. The package includes monies from the state's Clean Energy Fund, the BPU's share of Regional Greenhouse Gas Initiative proceeds, and the Solar Alternative Compliance Payment account. The BPU still needs to approve the details of this one. About $150, low to moderate income customers: Another chunk of money that comes out of the $430 million package. About 280,000 customers are expected to receive a $25 per month bill credit paid for by state subsidies from August through February. $20 to $200 per month, low-income customers: This money comes from the universal service fund, which is funded by ratepayers, and is generally for households with income at or below 60 percent of the state median income. The BPU recently approved a plan to increase the minimum and maximum credit, which was $5 and $180 in past years, and is pushing to enroll far more people because 80 percent of people who are eligible are not enrolled. — Ry Rivard HEAT WATCH: New York and New Jersey along with a large swath of the country are bracing for a brutal heat wave to kick off summer — just in time for primary day in New York. Gov. Kathy Hochul declared a state of emergency in 32 counties, including New York City, after Saturday's thunderstorms and heavy rains knocked out power and drenched parts of upstate New York. Outages impacted more than 50,000 people, according to Hochul's office. Three people, including two children, were killed in Oneida County after a tree fell on their homes. New York's grid operator says the state has plenty of power to meet demand on the system during the heat wave. Some schools have announced modified schedules. Hundreds of cooling centers will be open in New York City as voters head to the polls. New Jersey's grid operator, PJM, issued an emergency alert saying it may require all generators to operate at maximum output capability. The projected demand for Monday, as of Sunday, was 160 GW. The 13-state grid's all-time, one-day highest power use was more than 165 GW in summer 2006. — Ry Rivard ICYMI: LOVETT TO HOCHUL: Former Daily News and New York Post scribe Ken Lovett is joining the Hochul administration. Lovett, a former Eichor Strategies consultant, will serve as a senior communications adviser for energy and environment — a crucial issue area for Hochul ahead of her reelection bid. The governor has discussed energy projects with President Donald Trump, conversations that have included a controversial pipeline and wind energy efforts. Lovett, a former senior adviser at the Metropolitan Transportation Authority, will serve as a direct adviser to Hochul and communications director Anthony Hogrebe. 'Nobody knows state government better than Ken Lovett, and we're thrilled to have his experience and expertise as we continue to bring Governor Hochul's message to New Yorkers.' — Nick Reisman — Lovett authored an opinion piece a few months ago praising New York's progress toward renewables and supporting Hochul's exploration of nuclear energy. HAPPY MONDAY MORNING: Let us know if you have tips, story ideas or life advice. We're always here at mfrench@ and rrivard@ And if you like this letter, please tell a friend and/or loved one to sign up. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Here's what we're watching this week: MONDAY— Gov. Kathy Hochul makes an announcement at the New York Power Authority's Niagara Power Project, 11 a.m. — Environmental activists hold a press conference and rally on the 'Formosa Four' protesters' case ahead of a court hearing, 8:15 a.m., the lawn of Livingston Town Hall and Municipal Court, 357 S. Livingston Ave., Livingston, New Jersey. — The New Jersey budget deal is expected to drop early this week, with a vote expected mid to late week ahead of the June 30 deadline. TUESDAY— NYSERDA's board has committee meetings, starting at 10 a.m. WEDNESDAY— The Long Island Power Authority board of trustees meets, 11 a.m., LIPA Office, 333 Earle Ovington Blvd., 4th Floor, Uniondale. — The New York State Energy Planning Board meets, 1 p.m., Albany Capital Center. — The Hudson River PCBs Superfund Site community advisory group meets, 1 p.m., Saratoga Town Hall, 12 Spring St., Schuylerville. AROUND NEW YORK — Republican Long Island lawmakers want to save the clean energy tax credits that Congress looks poised to kill. — Newsday details the lobbying efforts that defeated a plastics and packaging reduction measure in the final days of session. — Duane Lake residents still fighting to get inclusion in septic replacement program. Around New Jersey — New Jersey lawmakers scrutinize energy-hungry data centers. — More pollution expected from New Jersey sites. — Roselle Park employees fear retaliation as town shutters site of possible toxic exposure. What you may have missed PACKAGING FALLOUT — POLITICO's Marie J. French: State lawmakers whiffed on an aggressive measure to reduce plastic and packaging waste in New York on the final day of Albany's legislative session. The Assembly did not pass the sweeping proposal to mandate reductions in packaging by producers and charge them for disposal costs. Supporters had hailed it as the strongest proposal in the country while business opponents argued it would lead to higher consumer costs and the unavailability of some packaged food products. STORAGE BIDS — The BPU approved new subsidies for batteries at its board meeting. The subsidies are dubbed the Garden State Energy Storage Program. The bid period opens next week. According to the board order, the state will target procuring 'at least 1,000 MW of transmission-scale energy storage over the course of multiple solicitations.' The first solicitation aims to award 350-750 MW by Oct. 31, with a prequalification process commencing on June 25 and final bids due Aug. 20. The board will have one or more rounds of bidding in 2026. — Ry Rivard E-BIKE BATTERY RETURNS: The Assembly gave final passage to a measure expanding the state's battery recycling requirements to cover e-bike batteries. Problems with lithium-ion e-bike batteries have caused deadly fires in New York City, with some fires starting in the waste stream once those batteries are thrown out. This bill would address disposal, requiring manufacturers of the batteries to work with retailers to accept back depleted batteries. The Department of Environmental Conservation would consult with the New York City Fire Department and others before developing regulations. Firefighters have raised concerns about the measure, proposing restrictions on accepting batteries at residential and mixed-use locations, Republican lawmakers said during the debate on the bill. 'It endangers the lives of people living in those buildings,' said Republican Assemblymember Michael Durso. Assemblymember Deborah Glick, who sponsored the bill, said she hopes the consultation requirements address some of those concerns. She said the bill would improve safety overall by removing these batteries from the waste stream. 'We have no restrictions on the sale, the repair, or the charging in any of the locations currently,' Glick said. 'They're charging them now and there are no regulations, so it seems to me this is a fairly modest proposal.' — Marie J. French 100-FOOT RULE PASSES — POLITICO's Marie J. French: Property owners looking to hook up to the state's existing gas system would face higher costs under a bill headed to Gov. Kathy Hochul's desk. Lawmakers passed an incremental measure Monday aimed at reining in the expansion of gas service. The bill requires that residential customers pay the full cost of any new pipeline to connect to the gas system. Right now, utilities pay for up to 100 feet of new pipe and pass those expenses on to other ratepayers. 'If you are putting up a new home, you should pay for the connection. That's all this says,' said Assemblymember Jo Anne Simon, the sponsor of the bill. 'And the connection, by the way, should be paid for by the person who's putting it in, instead of your neighbors — which is not a good way to get off on the right foot with your neighbors.'