New LPDD Model Laws
Since the last monthly update, the LPDD team has published a new piece of model state legislation addressing the geologic storage of carbon dioxide. Carbon capture and sequestration (CCS) involves capturing carbon dioxide at power plants, refineries, petrochemical plants, cement plants and other sources, compressing the carbon dioxide and transporting it to a storage site, where it is injected into a suitable geologic formation for long-term storage. This model law addresses issues such as the costs and potential liabilities associated with CCS, which have discouraged widespread adoption. For example, the model law provides for transfer of liability for long term storage to the state after closure of injection, in certain circumstances. The model law provides for a combined approach for funding such projects, including letters of credit, surety bonds and trust funds. Project developers also require a legal and regulatory framework that addresses the ownership of the subsurface area (or pore space) used for geologic storage, the competing rights of mineral owners and mineral lessees, and the regulation of geologic storage operations. This model state legislation provides that framework, drawing from existing state laws where appropriate, and also takes into consideration federal laws and programs related to underground injection programs.
New External Resources
LPDD.org is being continually updated with new, external legal resources. Below is a selection of recently added resources of special interest:
- California’s Cement GHG Phaseout Bill. In September, California’s legislature passed the first state law directly targeting greenhouse gas emissions from the cement sector. The bill, SB 596, directs the California Air Resources Board to develop and implement a comprehensive strategy to achieve net-zero greenhouse gas emissions associated with cement used within the state as soon as possible, but no later than 2045, and to establish interim targets for reducing cement’s greenhouse gas intensity, including a 40 percent reduction in carbon intensity by 2035. As of this writing, the bill is awaiting the Governor’s signature.
- Los Angeles 2035 Climate Targets. In September, the Los Angeles City Council voted to transition to 100% clean energy by 2035. The LA100 plan would see the LA Dept. of Water and Power, the nation’s largest public utility, replace its natural gas electricity generation with wind, solar and battery storage, while also improving energy efficiency and transmission. It was approved by the city council unanimously.
- Model Performance-Based Lease Template. Green or energy-aligned leases present a tool to address the market failures that often exist between landlords and tenants who face perverse or conflicting energy efficiency incentives. Performance-based leases build upon the foundation of green leases to introduce provisions intended to promote deep energy retrofits and other energy efficiency measures by balancing costs and benefits between landlords and tenants. This model performance-based lease, recently published by the Institute for Market Transformation, is designed to help buildings in New York City meet the performance targets set forth in Local Law 97. While this template was created with a focus on NYC, it is designed to be applicable nationwide.
-
- New York 2035 EV Targets. In September, New York adopted a law stating a goal that all passenger vehicles sold in the state would be emission-free by 2035. The law will make New York the second state after California to adopt a statutory goal to phase out greenhouse gas emissions in cars and light trucks. Under the new law, new off-road vehicles and equipment sold in New York are targeted to be zero-emissions by 2035, and new medium-duty and heavy-duty vehicles by 2045. Achieving these goals depends on various federal decisions. The law also requires the development of a zero-emissions vehicle development strategy by 2023 to identify policies and programs necessary to achieve the law’s goals.
New Jersey C-PACE Legislation. In August, New Jersey enacted A-2374, requiring the New Jersey Economic Development Authority to establish a Garden State Commercial Property Assessed Clean Energy (C-PACE) Program to facilitate the financing of C-PACE projects. The bill also allows certain local governments to establish their own local C-PACE programs. C-PACE projects include energy efficiency improvements, renewable energy systems, electric vehicle charging infrastructure, a microgrid or district heating and cooling system, or a power purchase agreement with respect to a renewable energy system affixed to a property. The new program will provide a mechanism for funding up-front costs associated with clean energy improvements, and may come with additional benefits for borrowers, such as decreased interest rates and longer repayment terms.
- New York 2035 EV Targets. In September, New York adopted a law stating a goal that all passenger vehicles sold in the state would be emission-free by 2035. The law will make New York the second state after California to adopt a statutory goal to phase out greenhouse gas emissions in cars and light trucks. Under the new law, new off-road vehicles and equipment sold in New York are targeted to be zero-emissions by 2035, and new medium-duty and heavy-duty vehicles by 2045. Achieving these goals depends on various federal decisions. The law also requires the development of a zero-emissions vehicle development strategy by 2023 to identify policies and programs necessary to achieve the law’s goals.
- New York’s Proposed Zero Emissions Truck Regulation. In September, the New York State Dept. of Environmental Conservation released a proposed regulation that would significantly reduce air pollution from trucks. If adopted, the regulation would accelerate zero-emission truck sales, resulting in improved air quality statewide — and in particular those communities disproportionately impacted by transportation-related pollution. The proposed regulation uses California’s Advanced Clean Trucks Rule as a template.
- California Legislation Approving Grants and Loans for Storage and ZEV Charging. In September, the California legislature passed AB33, creating low-interest loans and grants for local governments to install energy storage and zero-emission vehicle infrastructure. The bill requires the California Energy Commission to use the State Energy Conservation Assistance Account to create such grants and low-interest loans for local governments and public institutions to benefit from.
- Illinois’ Fossil Phaseout Legislation. In September, the Illinois legislature passed a bill making the state the 11th in the nation to target 100% renewable energy by a date certain. The bill sets a 2050 deadline for decarbonizing the state’s electricity generation. The legislation also provides nearly $700 million to prevent the looming closure of two nuclear power plants that now supply the majority of the state’s carbon-free power.
- California’s Offshore Wind Planning Legislation. In September, the California legislature passed a bill requiring the California Energy Commission (CEC) to develop a strategic plan to build 10,000 megawatts of offshore wind by 2040, and 3,000 megawatts by 2030. The report will be due June 1, 2022. The bill also requires the CEC to assess and develop a plan to improve existing waterfront facilities that could support a range of floating offshore wind energy development activities, and requires the California Public Utilities Commission to include offshore wind energy as a resource in integrated resource planning processes.
- New Jersey’s Model Statewide Municipal EV Ordinance. In September, New Jersey promulgated a statewide municipal ordinance streamlining the local approval process for installing charging infrastructure. The model ordinance, which provides minimum requirements and consistent guidance for electrification, is responsive to July’s S.3223, and is effective immediately for all New Jersey municipalities, though some sections of the ordinance allow for local modifications where appropriate.
- New Mexico’s Conservation Executive Order. In August, New Mexico’s Governor signed an executive order that aims to set aside 30 percent of the state’s lands and waters by 2030 for conservation and another 20 percent for climate stabilization. The executive order directs several state agencies to identify areas for protection to meet this goal. The executive order creates a committee that will inventory the state’s protected areas and make recommendations to conserve additional lands. According to the International Union for Conservation of Nature and the U.S. Geological Survey, currently about 6 percent of New Mexico is protected.
Legal Pathways to Decarbonization in Brazil
We’re excited to announce that a parallel effort to the LPDD text was recently published for the nation of Brazil. The book, Caminhos Jurídicos e Regulatórios para a Descarbonização no Brasil (“Legal and Regulatory Paths for Decarbonization in Brazil”), was based on the scope and structure of the LPDD text, and resulted from a year-long visit by a Brazilian environmental professor, Cacia Pimentel, to the Sabin Center. The book is available to purchase here. English-speakers may be interested in John C. Dernbach’s thoughtful introduction to the text, available here.
Get Involved!
Not sure how to support our work? Check out our Get Involved page to see the many avenues by which lawyers can join us, and get in contact!