Below you will find some of the latest agriculture, energy, environment and transportation policy issues we are following in Washington, D.C. If you have questions about any of the stories below, please reach out to me, Ben Husch Husch (ben.husch@ncsl.org), or my colleague Kristen Hildreth (kristen.hildreth@ncsl.org), and we will point you in the right direction.
Top Stories
Administration Unveils New Electric Vehicle Charging Infrastructure Program
The Departments of Transportation Energy unveiled the National Electric Vehicle Infrastructure Formula Program that was included in the Infrastructure Investment and Jobs Act. Known as NEVI, the program includes approximately $4.6 billion in grants to states with $660 million available this year, fiscal year 2022, and $1 billion annually in FYs 2023-2026. As part of the announcement, the administration also released a 31-page guidance document clarifying eligible uses of the funds and the steps states must take to access them. This primarily includes submitting a report that establishes how the state plans to use its formula funding. Vehicle chargers must be located on an “alternative fuel corridor,” as named by state, unless given separate approval by DOT. The guidance makes clear that states have the option to work with the private sector in many ways, from construction to operation and maintenance. There is also a separate competitive grant that will fund EV charging infrastructure, but those funds are not yet available, and it will likely be a few months before grant applications can begin. And while states can apply for those grants, they will be competing with local governments and with private and nonprofit organizations.
Federal Judge Blocks Social Cost of Carbon, Disrupting Oil and Gas Lease Permits, Transit Projects and Dozens of Rulemakings
A nationwide injunction issued on Feb. 11 blocked a 2021 executive order establishing a social cost of carbon (SCC) for agencies to use in rulemakings with greenhouse gas emission implications. While appealed by the administration, the judge’s decision barred federal agencies from using the SCC and from considering the foreign impacts of U.S. greenhouse gas pollution, limiting analyses to domestic impacts only.
The Department of the Interior has indicated that the action is expected to lead to delays in permitting and leasing for federal oil and gas programs, despite the administration being required to hold quarterly lease sales under the Mineral Leasing Act. In addition, federal agencies must now reconsider dozens of ongoing rulemakings at the Environmental Protection Agency and the Departments of Energy, Transportation and the Interior. A number of environmental reviews of transit projects are also now in limbo. Notably, the Federal Transit Administration’s Capital Investment Grants program, which pays for rail, bus and streetcar projects, uses the SCC to evaluate those investments. The injunction has “effectively frozen” ongoing transit projects.”
FERC Proposes New Process for Evaluating Gas Pipelines
The Federal Energy Regulatory Commission issued new guidance for how the commission will approve natural gas projects, including the first climate change threshold. The guidance updates a 23-year-old policy for assessing proposed natural gas pipelines, including the evaluation of a project’s greenhouse gas emissions and whether a project’s climate impact may be “significant.” The policy asserts that projects emitting at least 100,000 metric tons per year of carbon dioxide equivalent would “have a significant impact on the environment.” The agency will conduct an environmental impact statement—as opposed to a less-rigorous environmental assessment—for any gas project that exceeds that level.
Nuclear Commission Reverses Course on Relicensing Plants for 80 Years of Operation
The Nuclear Regulatory Commission reversed course on approving operating license extensions for nuclear power plants to 80 years, arguing an updated environmental study is needed beforehand. The NRC told Florida Power & Light Co. that its two Turkey Point nuclear reactors must go through a full environmental review before the agency will allow them to run for an additional 20 years. The NRC originally signed off on the extension in late 2019.
Infrastructure Investment and Jobs Act Updates
Transportation:
DOT Provides $1Billon for Road and Bridges in US Territories
The Transportation Department announced more than $1.14 billion to repair and rebuild roads and bridges in Puerto Rico and four other U.S. territories—American Samoa, the commonwealth of the Northern Mariana Islands, Guam and the U.S. Virgin Islands. The funding, available through the IIJA, represents a 14% increase over that provided in the Fixing America’s Surface Transportation Act. The total amount being made available to the territories in FY 2022 is $219 million, with $173 million for Puerto Rico and a total of nearly $46 million for the other four territories.
DOT Unveils $450 Million in Infrastructure Funding for Ports
The U.S. Maritime Administration announced the availability of $450 million in competitive grants aimed at improving the flow of goods in and out of U.S. ports. The funding marks the single largest distribution of grants ever made through the Port Infrastructure Development Program. Projects will be chosen based on their impact on trade through the ports, as well as their potential to mitigate environmental concerns and advance equity and opportunity.
GSA Announces $3 Billion in Infrastructure Funds for Land Ports
The U.S. General Services Administration announced that 26 land ports of entry will receive a total of $3.4 billion via the infrastructure law to improve the flow of commercial trucks across the border while also providing Customs and Border Patrol with new technology to combat drug trafficking.
Environment:
EPA Announces $1 Billion Investment From the Infrastructure Law for Cleanup and Restoration of Great Lakes
The Environmental Protection Agency announced the start of a $1 billion investment in the Great Lakes to clean up and restore severely degraded sites, known as “Areas of Concern,” or AOCs. The funding, from IIJA, is aimed at accelerating progress on AOCs, with 28 of the 31 sites now expected to be completed by 2030. The funding will be awarded in accordance with the administration’s Justice40 Initiative, which promises to deliver at least 40% of the overall benefits from key federal investments to underserved communities.
EPA Releases Report on Clean School Bus Program Implementation
EPA released a report to Congress on the Clean School Bus Program Initial Implementation of which IIJA provided $5 billion over 5 years for the replacement of existing school buses with clean and zero-emission buses. The report includes information on applicant eligibility, application prioritization, and more. Half of the program’s funding, which comes from the infrastructure bill, is dedicated to zero-emission school buses, and half is for clean school buses. A zero-emission school bus is one that produces zero exhaust emission of any air pollutant or any greenhouse gas; a clean school bus is one that reduces emissions and runs entirely or in part on alternative fuel or is a zero-emission bus. Eligible recipients include state, local and tribal governments that are involved in the purchase of school busses, or providing bus service for public school systems, in addition to certain contractors and nonprofit associations.
Energy:
DOE Releases Multiple Updates on Infrastructure Implementation
The Energy Department announced a new leadership structure that would group much of the agency’s infrastructure law responsibilities, which includes $62 billion in total funding, under a new undersecretary position. The new undersecretary will require Senate confirmation. The department announced a notice of intent and request for information to help implement the $6 billion Civil Nuclear Credit Program, which was established by IIJA. The program will support the continued operation of U.S. nuclear reactors, which are the nation’s largest source of carbon-free power. The request for information seeks input about how the department should structure the program, including eligibility criteria and allocating credit.
DOE also issued notices of intent to provide $2.91 billion to boost production of the advanced batteries that are critical to rapidly growing clean energy industries, including electric vehicles and energy storage, as directed under IIJA. The agency also issued a request for information to get comments on the $8 billion hydrogen hub initiative, a planned $1 billion clean hydrogen electrolysis program, and a $500 million clean hydrogen manufacturing and recycling research program.
Agriculture
USDA Establishes $6.5 Billion Pandemic Cover Crop Program
The Agriculture Department established a $6.5 billion Pandemic Cover Crop Program through its existing crop insurance plans, with funding provided in the Consolidated Appropriations Act of 2021. USDA indicated it is dedicated to reaching a broader set of producers, with a specific focus on strengthening outreach to underserved producers and communities, and small and medium agricultural operations.
USDA Commits $215 Million to Enhance the American Food Supply Chain
USDA announced it is making available up to $215 million in grants and other support to expand meat and poultry processing options, and strengthen the food supply chain, by increasing competition in that sector. USDA Rural Development will make $150 million of the total available in grants to fund startup and expansion activities in the meat and poultry processing sector. USDA’s National Institute of Food and Agriculture will provide another $40 million for workforce development and training, and the Agricultural Marketing Service will provide $25 million for technical assistance to grant applicants and others seeking resources related to meat and poultry processing. This funding announcement follows the Biden administration’s September 2021 announcement about the steps it is taking to address concentration in the meat processing industry and the January 2022 announcement of its plan to make the meat and poultry supply chain fairer, more competitive and more resilient. It also follows the USDA’s December 2021 announcement of $100 million in guaranteed loans on top of the previously announced $500 million investment to expand meat and poultry processing capacity.
Hemp Production Valued at Over $800 Million in 2021
USDA’s first Hemp Acreage and Production Survey found that the value of hemp produced in the U.S. in 2021 totaled $824 million. Colorado planted the most hemp in 2021 at 10,100 acres, according to the survey. The state is home to the nation’s most mature hemp market, having legalized the crop in 2012 before any sort of federal reform. Montana had 7,900 acres planted, followed by Oklahoma and Texas, each with 2,800 acres planted.
Energy
Auction for Atlantic Ocean Wind Power Rights Sets Record
The Department of the Interior raised a record $4.4 billion selling the rights to install wind turbines off the New York and New Jersey coasts in an auction that underscores surging enthusiasm for carbon-free electricity. The six parcels snapped up in the sale span 488,201 acres in the New York Bight, a shallow stretch of the Atlantic between Long Island and New Jersey. The tracts, located as little as 27 miles from the coast, could eventually include hundreds of turbines—enough to supply 5.6 gigawatts of electricity or about 2 million homes, according to the Interior Department. Companies must still secure permits and authorizations from state and local authorities as well as the Interior Department.
Environment
EPA to Hold Roundtables to Highlight Implications of WOTUS
EPA and the Department of the Army are hosting 10 regional roundtables to facilitate discussion on implementation of “waters of the United States,” known as WOTUS, while highlighting regional differences. As of early January, EPA and the Army halted implementation of the Navigable Waters Protection Rule nationwide and are interpreting “waters of the United States” consistent with the pre-2015 regulatory regime upon receipt of the order in Pascua Yaqui Tribe v. U.S. Environmental Protection Agency. The agencies are in the process of restoring the pre-2015 definition of WOTUS updated to reflect previous U.S. Supreme Court decisions. For more information on the roundtables see here.
Funds to Support State Wildlife Conservation and Outdoor Recreation Dispersed to States
The U.S. Fish and Wildlife Service announced $1.5 billion in funding for the Wildlife and Sport Fish Restoration Program to support state and local outdoor recreational opportunities, and wildlife and habitat conservation efforts. The program apportions excise taxes on hunting, shooting and fishing equipment, and boat fuel to all 50 states and U.S. territories. Eligible states receive funds through formula-based permanent appropriations, with distribution formulas based primarily on land and water area and the number of paid recreational hunting and fishing license holders in each state. The dollars typically fund up to 75% of project costs, and most states must provide a matching share of up to 25%, usually from state hunting and fishing license revenues. A state-by-state listing of the final apportionment of program funds for fiscal year 2022 can be found here.
New Carbon Capture, Utilization and Sequestration Technology Guidance Released
The White House Council on Environmental Quality (CEQ) issued new guidance to federal agencies on the use of carbon capture, utilization and sequestration, or CCUS, technology. “The guidance issued today provides federal agencies a framework for helping guide CCUS deployment in a manner that is environmentally sound and that cuts cumulative pollution in nearby communities,” CEQ Chair Brenda Mallory said. The guidance, released as part of a White House announcement on clean manufacturing, is tied to implementation of $12 billion in CCUS funds from the IIJA.
EPA Released 2021 Air Emissions From Power Plants
EPA released annual data on 2021 emissions of nitrogen oxides (NOx), sulfur dioxide (SO2), carbon dioxide (CO2), and mercury from power plants in the lower 48 states. Emissions in 2021 were higher than in 2020, reflecting a rebound in coal-fired generation as natural gas prices and energy demand increased. However, 2021 emissions fell between 3% and 11%, compared with 2019, reflecting the trend of decreasing annual emissions. Compared with 2020, the 2021 data shows a 6% increase in NOx emissions, a 20% increase in SO2 emissions, a 7% increase in CO2 emissions, and a 13% increase in mercury emissions. Additionally, NOx emissions during ozone season (May 1 to Sept. 30) increased by 5%. Overall, based on the first 11 months of 2021, electricity demand increased by 3% compared with 2020.
Transportation
DOT Highlights Utah’s Low BAC as Increasing Safety
The National Highway Traffic Safety Administration reported that Utah’s fatal crash rate dropped by 19.8% in 2019 after it became the first state to lower its impaired driving legal limit to .05% blood alcohol content. Utah’s crash and fatality rates fell much more during that period than in the rest of the United States, where the crash rate went down just 5.6% in 2019. “Changing the law to .05 percent in Utah saved lives and motivated more drivers to take steps to avoid driving impaired,” said NHTSA Deputy Administrator Steven Cliff. “This study will be a useful tool for other states considering a move to .05 percent.” The legal intoxication limit for driving is up to states to decide, not NHTSA.
DOT Issues New Safety Standard for Car Headlights
NHTSA issued a final rule Tuesday modifying federal motor vehicle safety standards to allow automakers to install adaptive driving beam headlights. The IIJA required this change to be made, though the deadline was not until the second half of 2023. The NHTSA noted that the new headlight type will improve safety for pedestrians, bicyclists and wildlife by making them more visible at night.
DOT and DOE Release Supply Chain Updates and Next Steps
In response to an executive order from President Biden, DOT published a report that lays out vulnerabilities in U.S. freight and logistics supply chains and clear-cut actions needed to speed up the movement of goods from ships to shelves. The report lays out concrete steps that the federal government, Congress, states and private companies can take to improve supply chains now and in the long term, including investments in both physical and digital infrastructure. DOE also released its own report, “America’s Strategy to Secure the Supply Chain for a Robust Clean Energy Transition,” which includes 13 deep-dive supply chain assessments across the energy sector, from solar energy to semiconductors to cybersecurity.
Administration Signs MOU With State Energy and Transportation Associations
The Transportation and Energy departments signed a memorandum of understanding with the American Association of State Highway and Transportation Officials and the National Association of State Energy Officials to coordinate nationwide investment in electric vehicle charging station infrastructure. The purpose of the memorandum is to provide a framework to ensure that EV charging station infrastructure investments, including those made through the federal infrastructure law, are made in a strategic, coordinated, efficient and equitable manner.
DOT Proposed Rule on State Procedure for Licensing Drug Offenders
The Federal Highway Administration has issued a notice of proposed rulemaking covering state licensing procedures for convicted drug offenders. Current regulatory language requires states to annually certify their compliance, and the proposed rulemaking would eliminate the annual certification and require recertification only when there is a change to a state law affecting the state’s method of compliance.
Thanks for reading! We’ll be back later this month to fill you in on other pressing federal news!
Best,
Kristen and Ben