Kristen Cheriegate | ICAST Policy Manager
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Maine Files Energy Storage Procurement Recommendations
The Maine Governors Energy Office (GEO) was directed by the state legislature to consult with the Public Utilities Commission (PUC) to evaluate the increase of capacity for utility-scale energy storage systems. The states policy sets a goal to procure cost-effective energy storage and diversify its energy resources. The storage will help manage electric load and provide backup power to the grid during peak usage or outages. The Maine Energy Storage Program report evaluates multiple program design options, including pay-for-performance mechanisms, clean peak credits, tolling agreements, and an index storage credit mechanism. The GEO has recommended for the PUC to implement upfront, pay-for-performance competitive procurement programs for 200 megawatts of energy storage to reach its goal of 300 megawatts of installed capacity by the end of 2025 and 400 megawatts by the end of 2030.
Billions Invested in Rural and Tribal Communities Through Clean Energy
The U.S. Department of Agriculture (USDA) announced $6.3 billion across 44 states and over 200 projects to improve electric infrastructure and smart-grid technology through the Electric Infrastructure Loan and Loan Guarantee Program. Investment in the form of loans aim to improve and maintain electric infrastructure in areas where commercial capital is not available, such as rural and Tribal communities. Through the program, funds will be used to finance upgrades, expansion, renewable energy systems, as well as demand side management and energy efficiency programs.
Final Regulations Expanded for Clean Energy Tax Credits Access
The U.S. Department of Treasury and the Internal Revenue Service (IRS) has enhanced elective/direct pay to gain fuller access to the full value of clean energy incentives. Tax exempt entities will now be able to co-own projects, benefitting from federal tax credits and accelerating project timelines while reducing costs. For the first time, this creates the ability to fully leverage incentives and a new level of flexibility. Building qualifying clean energy projects and investments will be eligible for agencies, public power utilities, and nonprofits through elective pay; certain partnerships can even elect out of being treated as a partnership, giving the option for individually eligible entities to access a variety of clean energy tax credits (i.e., Clean Electricity Investment, Investment Tax Credit for Energy Property, and other credits supporting technologies).
Environmental and Climate Justice Community Change Grants Announced
The U.S. Environmental Protection Agency (EPA) has announced a total of nearly $1.6 billion to 105 selected applicants to support Community Change Grants Program funding towards pollution prevention, resilient infrastructure and workforce development in disadvantaged communities. The first round of applicants totaled 21 selectees and the most recent round 84. Applicants will implement community-scale projects in climate justice communities and build community capacity. EPA is on track to obligate that majority of selected Community Change grants by January 2025.
New Guidance for Home Energy Rebate Programs
The U.S. Department of Energy (DOE) has updated program requirements for the $8.8 billion Home Energy Rebate programs to improve processes for accessing funds for more effective program implementation. States and territories may also seek DOE approval to make partial payments for completion of individual energy measures within a low-income multifamily project under the Home Efficiency Rebates programs modeled approach. Tribe implementing the Home Electrification Appliance Rebates (HEAR) program may also form a consortium, which the DOE has provided documents outlining the process and benefits. Part of the guidance encourages states to help residents combine the rebate funding with other programs when the Home Energy Rebates will not cover the entire project with direction on energy savings attribution.