Department of Energy

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On January 27, 2023, the U.S. Department of Energy (DOE) announced its intent to invest up to $47 million in funding for clean hydrogen research, development, and demonstration (RD&D) as part of its “Hydrogen Shot” – a program intended to reduce the cost of clean hydrogen to $1 per kilogram in the coming decade by reducing costs and improving the performance of hydrogen fuel cells. Hydrogen Shot is also part of the Biden administration’s strategy to decarbonize the electric grid entirely by 2035 and to reach net-zero emissions by 2050.

On November 3, 2022, the Internal Revenue Service (IRS) issued three notices (“November 3 Notices”) requesting public input on the climate and clean energy incentives contained in the Inflation Reduction Act (“IRA”). The November 3 Notices request comments by December 2, 2022, on the amendments, extensions, and enhancements of the IRA’s energy tax benefits. The November 3 Notices follow an initial set of six notices that were issued by the IRS on October 5, 2022 to seek public input on other aspects of the energy tax incentives contained in the IRA.

On September 22, 2022, the U.S. Department of Energy (DOE) announced a $6-7 billion Funding Opportunity to begin the development of a nationwide program for the planning, construction, and operation of commercial-scale Regional Clean Hydrogen Hubs, known colloquially as “H2Hubs.” H2Hubs are defined as “a network of clean hydrogen producers, potential clean hydrogen consumers, and connective infrastructure located in close proximity.” The DOE’s effort results from the Bipartisan Infrastructure Law (BIL) passed in 2021. The BIL appropriates $8 billion over a five-year period (2022-2026) and amends the Energy Policy Act of 2005 to establish a program to develop four to ten regional H2Hubs.

On September 29, the Department of Energy (DOE) issued a notice that may impact wholesale rates in all federally regulated wholesale markets (not including ERCOT), possibly affecting: (i) merchant plant owners, (ii) wholesale market customers, (iii) renewable and gas fired generation, (iv) coal and nuclear power plant owners, and (v) power traders.  Husch Blackwell energy regulatory attorneys Linda Walsh, Chris Reeder and Sylvia Bartell issued a detailed client alert on the Notice of Proposed Rulemaking (NOPR) issued by DOE requiring regional transmission organizations (RTOs) and independent system operators (ISOs) “to ensure that certain reliability and resilience attributes of electric generation resources are fully valued.” The proposed market reform would provide

In an in-depth and informative analysis on the Department of Energy’s recently released Staff Report to the Secretary on Electricity Markets and Reliability, Husch Blackwell regulatory attorneys Linda Walsh and Sylvia Bartell examine the department’s stated goal of considering past and current trends in the electric industry in an effort to “exercise foresight to help ensure a…

In a four-part series recently published in Law360, Husch Blackwell’s energy regulatory group analyzed the significant aspects of the U.S. Department of Energy’s (DOE) most recent installment of the Quadrennial Energy Review (QER). The first article focused on the QER’s discussion of the critical role that the nation’s electricity industry plays in supporting the country’s economy and national security.  The second installment examined the QER’s emphasis on grid security. The third focused on