Climate Policy Outlook: Top stories of the week

FERC green-lights BlackRock’s largest acquisition in over a decade

Eight months after BlackRock announced its acquisition of Global Infrastructure Partners (GIP), the Federal Energy Regulation Commission (FERC) officially approved the sale Sept. 13. The deal faced opposition from consumer and environmental groups, which filed protests arguing that BlackRock’s expanding influence could undermine competition and shift its role from a passive to an active owner of energy infrastructure. BlackRock claimed it was driven by a push towards decarbonization and energy security.

In response to these concerns, FERC requested additional information from BlackRock and GIP. After reviewing the protests and the additional details provided, FERC determined that the deal would not adversely affect competition or conflict with BlackRock’s prior blanket authorization, and thus did not warrant further scrutiny or a hearing.

Lingering Concerns: FERC Commissioner Mark Christie supported the acquisition but expressed concerns about the influence of large asset managers on public utilities, suggesting that such matters require more scrutiny in future proceedings. Despite ongoing opposition from groups such as PESP, which worry about BlackRock’s increased control over critical infrastructure, FERC’s decision was to approve the deal as it stands.

This acquisition is noted as BlackRock’s largest in over a decade at $3 billion in cash and $12 million in common shares, with CEO Larry Fink highlighting the investment potential in infrastructure amidst growing financial incentives for new technologies. Read the full story at Utility Dive.

IRA and state policy lead to economic growth in Michigan

More than a year after 5 Lakes Energy determined that over $7.8 billion in federal investments for Michigan’s clean energy transition, the consulting firm has reassessed the state’s energy economy following recent legislative changes. Michigan’s Democratic-led Legislature passed significant clean energy policies in November, including a target of 100 percent clean energy by 2040 and new standards for energy waste reduction and permitting processes.

The updated report estimates that:

• An injection of $15.6 billion in investments from the Inflation Reduction Act by 2030 and $30.7 billion by 2040;
• Michigan families will save an average of $297 annually on energy bills by 2030 and $713 by 2040; and
• A cut in state greenhouse gas emissions by at least 65 percent over the next six years and by 88 percent by 2040, while saving $7.3 billion in public health costs by 2030 and $27.8 billion by 2040.

Jobs, Jobs, Jobs: The report details local economic impacts, showing job growth and GDP increases across 10 regions in Michigan. It also reveals that 75 percent of Michigan Energy Innovation Business Council members are hiring or will need to hire in the next three years.

Recommendations include advancing state policies aligned with Gov. Gretchen Whitmer’s MI Healthy Climate Plan, investing in clean energy projects, ensuring energy savings benefit consumers, conducting cumulative impact assessments, and developing workforce training programs for transitioning from traditional energy industries. Read the full story at Michigan Advance.

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Permitting reform continues to gather steam on Capitol Hill

Just as Sens. Joe Manchin (I-W.Va.) and John Barrasso (R-Wyo.) are gaining traction for their bipartisan permit reform bill, House Republicans complicate the discussions with their own broad plan to overhaul the National Environmental Policy Act (NEPA).

A recent House Natural Resources subcommittee hearing on Chair Bruce Westerman’s NEPA draft highlighted the difficulty of reaching a final deal before Congress adjourns. Westerman’s draft proposes limiting environmental reviews, restricting litigation and potentially reducing the focus on climate considerations. This contrasts with the Manchin-Barrasso bill, which aims to streamline approvals for both renewable and fossil fuel projects and encourage regional cooperation on power lines.

Compromise Needed? Despite Westerman’s bill drawing criticism from Democrats and environmentalists, it might be necessary for gaining House GOP support for a broader permitting agreement. Manchin, keen on leaving a legacy of permitting reform, has cautioned against disrupting the progress made so far.

Negotiations are ongoing, with key players including Manchin, Westerman and Barrasso committed to passing some form of permitting reform this year, possibly in the lame duck session. Read the full story at E&E News.

VP Kamala Harris’ campaign adviser proposes ‘Clean Energy Marshall Plan’

Brian Deese, former head of President Joe Biden’s National Economic Council and current economic adviser to Vice President Kamala Harris’ presidential campaign, has proposed a “Clean Energy Marshall Plan” to advance U.S. interests and global clean energy efforts. In an essay for Foreign Affairs magazine, Deese suggests establishing a new federal agency, the Clean Energy Finance Authority, to provide loans to foreign countries for purchasing American-made green energy technologies.

A Green Marshall Plan: Deese’s plan draws inspiration from the post-World War II Marshall Plan, aiming to replicate its success by boosting U.S. green technology exports and expanding influence globally. He argues that current U.S. financing institutions are hampered by restrictive rules and should be replaced with a more flexible, market-oriented approach. The proposed Clean Energy Finance Authority would prioritize investments in clean energy technologies, such as geothermal and nuclear power, and would complement existing international climate agreements.

Deese criticizes current U.S. export financing mechanisms for being too rigid and compares them unfavorably to China’s aggressive investments in green technology abroad. He advocates for a shift towards equity and debt financing, with minimal reliance on grants, and suggests using trade tools such as carbon-based tariffs to level the global playing field. Read the full story at HuffPost.