HAPPY THURSDAY! Welcome to Overnight Energy, The Hill’s roundup of the latest energy and environment news. Please send tips and comments to Rebecca Beitsch at rbeitsch@digital-staging.thehill.com. Follow her on Twitter: @rebeccabeitsch. Reach Rachel Frazin at rfrazin@digital-staging.thehill.com or follow her on Twitter: @RachelFrazin.
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EXTRA CREDIT: The Trump administration is making it easier for renewable energy projects to take advantage of certain tax credits amid the coronavirus pandemic.
The Treasury Department and Internal Revenue Service issued a notice Wednesday giving some companies that started construction in 2016 or 2017 an extra year before they have to put their projects in service.
The notice also allows some companies additional time to receive materials for construction in order to meet a requirement to start construction.
Now, those that paid for certain property or services starting on September 16, 2019, that would have allowed them to meet requirements for starting construction will have until October 15 of this year to receive them.
The rules are intended to help taxpayers qualify for the production tax credit and investment tax credit.
“The IRS recognizes that COVID-19 has caused industry-wide delays in the supply chain for components needed to complete renewable energy projects otherwise eligible for important tax credits,” said a statement from the agency, which added that the notice aims to “provide tax relief to affected taxpayers.”
And the decision came after the administration got a friendly nudge from a group of Republicans…
Sens. Lisa Murkowski (Alaska), Susan Collins (Maine) and Thom Tillis (N.C.). wrote to the Treasury department last week asking for an extended period under which companies can start construction on renewable energy projects. The senators also said that some companies might not be able to meet requirements for a “continuous program of construction” and instead asked for “continuous efforts” to be required.
The clean energy industry has been facing significant challenges during the economic downturn from the coronavirus. A recent report found that since the start of the pandemic, nearly 600,000 clean energy jobs, including more than 70,000 renewable energy jobs, have been lost.
Speaking of renewables…
Renewable energy consumption in the U.S. topped coal consumption in 2019, the first time this has occurred in more than 130 years.
The last time renewable energy was more widely consumed than coal was prior to 1885, when wood was the main source of energy, according to the Energy Information Administration (EIA).
The EIA released the new finding on Thursday, adding that coal use has been declining over the past decade while renewable energy has increased.
Last year, coal consumption fell 15 percent while renewable consumption increased by 1 percent compared to 2018.
The year 2019 was the sixth consecutive year in which coal consumption dropped.
Read more about the finding here.
YOURS OR MINE: House Republicans have introduced a measure that would speed up permitting for mining projects in the U.S. in order to avoid importing critical minerals from countries like China.
The bill would require agencies to set strict timetables for reviewing permitting requests for new projects mining critical minerals used in products ranging from batteries to medical supplies to electronics.
“The status quo that we are dealing with is relying on really horrible environmental and labor standards in China and other places. I think this is one of the things and has to be acknowledged by everybody,” said House Natural Resources Committee ranking member Rob Bishop (R-Utah), one of the sponsors of the bill.
A number of countries mine cobalt, graphite, copper, uranium and other essential metals, including some U.S. allies. Republican lawmakers on Natural Resources as well as the Science Committee hope the permitting changes would decrease the process from 7-10 years to two or three.
The bill also reinforces the Department of the Interior’s role in establishing a critical minerals list, designating any mineral “essential to the economic or national security of the United States.”
Any short-circuiting of the environmental review process would be unlikely to advance in the Democrat-led House.
“American mining law was written in the 1870s and hasn’t been updated since. If Republicans think that law is too strict and not industry-friendly enough, that’s their business, but the American people don’t support the kind of environmental deregulation they’re proposing and neither do I,” Rep. Raúl Grijalva (D-Ariz.), chairman of the Natural Resources Committee, said in a statement.
But the legislation is the latest effort from Republicans to shore up the domestic mining industry, following a report from the Department of Energy in April promoting a surge in the American uranium mining industry as a way to jumpstart the domestic nuclear energy business.
Read more about the legislation here.
FROM THE WATCHDOG: An internal watchdog said Thursday that a lack of communication at the Environmental Protection Agency (EPA) prevented the agency from monitoring chemical levels in a North Carolina river that became contaminated.
The Office of Inspector General (OIG) said in its report that a regional EPA office in 2017 was not aware of an order from eight years earlier that the chemical company DuPont was required to destroy or recycle certain chemicals from one of its facilities near the Cape Fear River.
The 2009 order set rules for DuPont’s handling of a specific type of PFAS chemical, which have been linked to cancer, and said the company needed to submit testing results to the EPA.
The OIG found that the agency’s Southeast regional office was not aware of the order until 2017 when EPA headquarters asked it to conduct an inspection following local news coverage of PFAS in the river.
“We found that insufficient communication and coordination…hampered the Agency’s ability to monitor and determine compliance with the 2009 Consent Order requirements,” the inspector general’s office said.
In its official response to the OIG report, the EPA stated that its offices have already “enhanced coordination and developed new tools” to help with monitoring by its compliance office and regional offices.
The EPA added that it now compiles information from orders made under the Toxic Substances Control Act in an internal database and shares this information with its regional offices.
OUTSIDE THE BELTWAY:
Coal sector’s probability of default greater than last year due to COVID-19, S&P Global reports
Study: Climate Change, Deforestation Harm Old-Growth Forests, Bloomberg Law reports
Reuters examines why U.S. energy CEOs will get big payouts despite oil meltdown
In Louisiana, Covid-19 Has Achieved What Big Oil Protesters Could Not, The New York Times reports
U.N. confirms year-long delay for crucial climate summit, Reuters reports
ICYMI: From Thursday…
House Oversight seeks docs from oil giant Marathon after Trump mileage rollback
FROM THE HILL’S OPINION PAGES:
An affordable zero-emissions grid needs new nuclear, write University of Michigan professors Todd Allen and Michael Craig