This week in climate policy: 4 stories you should know about
Ohio holds FirstEnergy accountable for pay-to-play; Dominion secures lease to another offshore wind plant. Read More
Dominion Energy won a Bureau of Ocean Energy Management auction for a 176,506-acre offshore wind lease, spending $17.65 million.
Here are the major climate policy developments for the week of Aug. 19:
- Bribery, a settlement and the nuclear sector: FirstEnergy, an Akron-based company, agreed to pay $20 million to resolve its involvement in a statewide bribery scandal without facing criminal charges. As part of the settlement with Ohio state prosecutors, FirstEnergy will pay $19.5 million to the Ohio Attorney General Dave Yost’s Office and allocate $500,000 for an independent review of its ethics policies. This settlement comes after the company admitted to bribing former Ohio House Speaker Larry Householder and ex-Public Utilities Commission Chairman Sam Randazzo — who pleaded guilty and died by suicide in April — to secure a $1 billion bailout and favorable treatment for its nuclear plants. FirstEnergy’s settlement with Yost’s office also includes dismissing a civil lawsuit against the company. The company is nearing resolution of another investigation by the U.S. Securities and Exchange Commission, which could cost $100 million. Despite the resolution, Yost’s office will continue to pursue legal action against the former executives involved in the scandal.
- Dominion remains sole dominion in offshore wind: Dominion Energy won a Bureau of Ocean Energy Management auction for a 176,506-acre offshore wind lease, spending $17.65 million. This new area, about 35 miles from the Chesapeake Bay, could generate up to 4 gigawatts of electricity, enough for 1.4 million homes. The expansion complements Dominion’s ongoing $9.8 billion Coastal Virginia Offshore Wind (CVOW) project and helps the utility meet part of its 5.2-gigawatt target under the Virginia Clean Economy Act by 2035. The auction saw Dominion as the sole bidder for this lease, which contrasts with more competitive bidding for another lease area off Maryland and Delaware. The expansion positions the utility to address the increasing need for carbon-free energy sources as alternatives such as small modular nuclear reactors face viability concerns. Dominion will need to apply for a State Corporation Commission certificate before developing the new site. The utility is also managing a lawsuit challenging the CVOW project’s environmental impact.
- The U.S. makes moves against plastic pollution: The United States is backing a global plastic pollution treaty, a shift in policy regarding how it aims to reduce annual plastic production. This move contrasts with earlier U.S. positions and puts it at odds with countries such as Saudi Arabia and China, which prefer focusing on recycling and packaging design rather than production caps. The change aligns the U.S. with “high ambition” countries such as European Union members, South Korea, Canada, Rwanda and Peru, which advocate for a treaty that limits plastic production and targets harmful chemicals used in plastics. The upcoming United Nations negotiations in Busan, South Korea, will follow the U.S. presidential election and are expected to address these production targets, which had stalled discussions in April’s Ottawa round. The U.S. position has received mixed reactions: Industry groups criticize it as harmful to U.S. manufacturing, while environmental groups view it as a significant step forward.
- China pushes back against EV tariffs: China filed a complaint with the World Trade Organization (WTO) against the EU’s provisional tariffs of up to 37.6 percent on Chinese-made electric vehicles (EVs). The EU’s tariffs are based on claims that these EVs benefit unfairly from Chinese government subsidies. China argues that its support for the EV industry complies with WTO regulations and that the tariffs violate WTO rules, disrupting global climate change cooperation. The dispute must be resolved by early November or the provisional tariffs will become permanent. In retaliation, China has initiated investigations into French cognac and European pork exports, raising concerns about a potential trade conflict with the EU. Meanwhile, China’s auto exports increased in July, but domestic sales declined.
Subscribe to Trellis Briefing
Now, more than ever, sustainability teams are working in tandem with functions across their organizations.
Featured Reports
Coming up
Recommended