President Joe Biden is expected to pursue an “all-of-government” approach to climate change. The incoming administration is expected to move as swiftly as possible on an agenda that modifies or reverses the policies of the Trump administration. Many of these changes were signaled in the Biden campaign’s Biden-Sanders Unity Task Force Recommendations, released last August, and other initiatives announced during the campaign.
With a strong focus on energy, climate, and environmental justice, this all-of-government approach is likely to have wide-ranging implications for the energy industry. We expect the following developments as the new administration begins:
President Biden’s “Build Back Better” plan lays out broad a vision for the United States. More specifically, the President campaigned to “put millions of Americans to work in good-paying jobs” while meeting four national challenges: building a stronger industrial and innovation base so the future is made in America; building sustainable infrastructure and clean energy; building a stronger, caring economy; and advancing racial equity across the board.
Key goals focusing on energy and environmental justice within the plan include:
Achieve carbon-free power sector by 2035. Carbon-free power may include nuclear energy and renewable energy resources.
Cut the carbon footprint in buildings in half by 2035.
Become the global leader in manufacturing electric vehicles.
Rebuild and upgrade roads, bridges, green spaces, transit networks, rail, ports, water systems, electric grids, and make broadband accessible to all Americans.
Make environmental justice a key consideration when developing projects in communities.
Promote climate-smart agriculture, resilience, and conservation.
Drive cost reductions in renewable energy and clean energy technologies (e.g., battery storage, negative emissions technology, next generation building materials, renewable hydrogen, and advanced nuclear).
The Biden administration is likely to leverage multiple executive actions, legislations, and regulations in an effort to translate campaign promises into tangible results. The following table highlights how the administration may pursue actions impacting the electric power, natural, and transportation sectors.
|Energy-Related Sector||Executive Order/Action||Legislation||Regulation|
*Cross-sector application (power, gas, and transportation, among others)
Some actions may be combined or embedded in others. For example, an infrastructure bill may have environmental justice, research and development, tax incentives, and other provisions in it. Regulatory actions are also likely susceptible to litigation, which may complicate or delay implementation.
This document represents a summary of a more robust report developed for utility and energy leaders. Please contact us for the full report or to discuss how ScottMadden may assist you to navigate changes in energy and climate policy.
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