The Biden administration is racing to finish energy rules before a looming mid-year deadline leaves the president’s climate and energy regulations vulnerable to attacks from congressional Republicans.
The Interior, Treasury and Energy departments and the Federal Energy Regulatory Commission are weighing plans that could determine long-term policies on hydrogen, oil and gas drilling and power lines critical to bringing renewable energy online.
Interior has proposed new limits on methane emissions that it says will generate nearly $40 million in new royalties a year, but experts say the rules are likely delayed as the department tries to shield the drilling regulations against almost certain litigation from industry groups. DOE is trying to advance hubs to jump-start the U.S. “clean” hydrogen industry but is awaiting final guidance from the Treasury Department on key tax credits under 2022’s Inflation Reduction Act that could determine the industry’s emissions and growth trajectory.
Meanwhile, FERC has promised a closely watched rule this spring on transmission that could be key to President Joe Biden’s ambitious aim to decarbonize the electricity grid by 2035.
