Government Energy Transition Initiatives

French Ministry of energy transition : Ministère de la transition énergétique:
The ministry prepares and implements Government policy in the areas of energy transition and prepares and implements the policy for reducing greenhouse gas emissions.
It aims to create a greener economy, reduce carbon emissions, improve energy efficiency and promote sustainable growth of the entire country, from citizens to corporations and local governments.^[13]French government website https://www.gouvernement.fr/ministere/ministere-de-la-transition-energetique (last visited Jul. 7, 2023)
The French Agency for Ecological Transition: Agence de la transition écologique (ADEME)
The agency is responsible for Research and development, encouraging local governments and citizens to consume renewable energy.^[14]The French Agency for Ecological Transition website, https://www.ademe.fr/en/frontpage/#:~:text=At%20ADEME%2C%20we%20are%20resolutely,them%20the%20means%20to%20progress., last visited Nov. 17, 2023
Energy Transition incentive: MaPrimeRénov’
A state aid program for energy renovation launched in 2020. It creates an incentive for French citizens to undertake energy efficient renovations by providing financial assistance to homeowners for those renovations.^[15]Transition energitique website, https://transition-energetique.eco/aides-subvention/

Ministry of Environment and Energy Security:
The Ministry’s main goal is to promote sustainability in Italy. The ministry has various programs and initiatives, to encourage energy transition, including: Program for the Evaluation of the Environmental Footprint^[16]Italian Ministry of environment and Energy Security Website,Program for the Evaluation of the Enviromental Footprint, https://www.mase.gov.it/pagina/program-evaluation-enviromental-footprint ,  «Made Green in Italy»^[17]Italian Ministry of environment and Energy Security Website,The “Made Green in Italy” National Scheme,https://www.mase.gov.it/pagina/made-green-italy-national-scheme, Superbonus habitat^[18]European Commission, “Superbonus – Strengthening of the Ecobonus and Sismabonus for energy efficiency and building safety”, available at … Continue reading.

ARERA: Italian Regulatory Authority for Energy, Networks and Environment
It consolidates the ministry’s work.  Established in 1995, ARERA is an administrative agency that regulates “activities in the sectors of electricity, natural gas, water services, waste cycle and district heating.”^[19]The Italian Regulatory Authority for Energy, Networks and Environment (ARERA) Website, https://www.arera.it/en/

California. In developing requirements for a program that improves energy efficiency in residential and nonresidential structures, the Public Utilities Commission (PUC) must consider “[w]orkforce development and job training for residents in disadvantaged communities, including veterans, at-risk youth, and members of the state and local community conservation corps.”^[59]Clean Energy and Pollution Reduction Act, CA S.B. 350, Section 8(c)(8), (2015), available at https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201520160SB350 (last visited Dec. … Continue reading)

New Mexico. This act requires apprenticeship programs for construction of electricity-generating facilities to “encourage diversity among participants, participation by those underrepresented in the industry associated with that apprenticeship program and participation from disadvantaged communities, as determined by the workforce solutions department.”^[60] 54th Legislature – State of New Mexico, Senate bill 489,   p. 46, available at Energy Transition Act, S.B.19-489, 2019 Reg. Sess., § 24(C) (New Mexico 2019).

Washington. This bill addresses the impacts of climate change by leading the transition to a clean energy economy and allows for tax exemptions for companies that purchase machinery or labor if the related project includes “[p]rocurement from and contracts with women, minority, or veteran-owned businesses.”^[61]Act Relating to supporting Washington’s clean energy economy and transitioning to a clean, affordable, and reliable energy future, SB 5116 – 2019-20 p.43, available at Supporting … Continue reading

Inflation Reduction Act^[62]Inflation Reduction Act of 2022, Pub. L. No. 117-169, 136 Stat. 1818, available at https://www.congress.gov/117/plaws/publ169/PLAW-117publ169.pdf 

Equity and Environmental Justice

Section 1006. USDA Assistance And Support For Underserved Farmers, Ranchers, Foresters^[63]See Supra at. 206 is intended to help farmers adopt climate-smart agriculture practices and provide necessary financial assistance. 

Section 60201 provides $3 billion for EPA environmental justice block grants, which can fund projects related to affordable clean energy access in disadvantaged communities^[64]Id. at 261.

Section 60103 allocates $7 billion from the Treasury to provide grants, loans, and technical assistance to states, municipalities, tribes, and other eligible recipients, for the purpose of supporting low-income and disadvantaged communities in adopting zero-emission technologies and other efforts to reduce greenhouse gas emissions.^[65]Id. at 250

Section 60104 provides funding for EPA to address diesel pollution from ports in overburdened communities.^[66]Id. at 251

Section  50145 provides funding for a Tribal Energy Loan Guarantee Program^[67]Id. at 228.

Section 40001 provides $2.6 billion for Coast Guard climate resilience and preparedness, which can help vulnerable coastal communities adapt to climate change impacts^[68]Id. at 211.

Assistance for Workers and Communities

Sections 22004 and 22005 provide over $9 billion for grants to support rural electric cooperatives and municipal utilities transition to clean energy, increasing energy access^[69]Id. at 204-205 .

Section 60114 provides $5 billion to EPA for grants to states to reduce greenhouse gas emissions, including $4 billion specifically for rebates to low- and moderate-income households for electrification^[70]Id. at 260.

Sections 50121, 50122 and 50123 provide funding for state training programs for home efficiency contractors and low and moderate income households^[71]Id. at 220-225.

Section 50121 provides $200 million for a Home Energy Performance Training program providing grants for contractor training in whole-home retrofits.

Affordability

Section 13301 extends and expands the home energy efficiency tax credit to make upgrades more affordable^[72]Id. at 125.

Section 13302 extends the residential clean energy tax credit for rooftop solar and storage^[73]Id. at 130.

Sections 13401 and 13402 create and extend tax credits for new and used electric vehicles to spur market growth^[74]Id. at 138.

Infrastructure Investment and Jobs Act^[75]Text – H.R.3684 – 117th Congress (2021-2022): Infrastructure Investment and Jobs Act, H.R.3684, 117th Cong. (2021), https://www.congress.gov/bill/117th-congress/house-bill/3684/text. :

The Act addresses environmental justice and overburdened communities as follows:

The orphaned well provisions in Section 40601 aim to address the legacy environmental damage and risks to communities caused by abandoned oil and gas wells. They provide billions in funding for state programs to plug, remediate, and restore orphaned wells, prioritizing those that pose threats to public health and the environment. Grants also support economic diversification, job creation, and retraining efforts in fossil fuel communities impacted by the transition. Remediation protects communities from pollution and safety hazards of unplugged wells. Funding for mapping and research assists communities in identifying undocumented orphaned wells. Appropriations further aid Tribal nations in reclaiming their lands from orphaned wells. Together, these measures mitigate adverse social impacts in energy regions by cleaning up environmental damage, creating jobs, spurring reinvestment, and enhancing public welfare.

Section 40109 “State energy program” provides funding to States for the State Energy Program, which provides resources to States to enhance energy security, advance State-led energy initiatives, and maximize the benefits of decreasing energy waste. It specifically calls out the need to prioritize projects that provide a benefit to low-income and disadvantaged communities. It also lists “transition and assistance programs to assist businesses and communities negatively impacted by the transition away from fossil fuel industries” as an allowable use of funds under the State Energy Program.

Funding for grid resilience and reliability in Subtitle A Section 40101 “Preventing outages and enhancing the resilience of the  electric grid” can protect vulnerable communities from power disruptions.

The Energy Efficiency and Conservation Block Grant Program reauthorized in Section 40552 can help overburdened communities implement efficiency programs.

Section 40512 directs federal agencies to ensure upgrades reduce energy costs for households.

One of the objects of the Equality and Opportunity Rights Act is to achieve the inclusion of women as well as indigenous communities.  It also aims to avoid all discrimination and exclusion from environmental public policies. ^[76]Article 29, Section 1 of Equality and Opportunity Rights Law (2008) Save

“To address the specific situation and role of women in the transition to the climate-neutral economy, gender equality should be promoted. Women’s labour market participation and entrepreneurship, as well as equal pay, play an important role in ensuring equal opportunities. The JTF should also pay special attention to vulnerable groups that suffer disproportionately from the adverse effects of the transition, such as workers with disabilities.”^[77]Regulation No 2021/1056 of the European Parliament and of the Council of 24 June 2021 establishing the Just Transition Fund, 2021 O.J. (L 231), 1.

The European Bank for Reconstruction and Development and Green Climate Fund partnered to co-fund the Programme for Supporting Renewable Energy and Promoting Gender Equality in Egypt. “The programme will strive to identify challenges that prevent women’s participation in the sector and potential skills mismatches and will work with the Egyptian authorities to overcome these issues.”^[78]https://www.ebrd.com/news/2019/ebrd-launches-programme-to-support-women-in-green-energy-in-egypt-.html.

The Clean Energy for Vulnerable Households and Communities Project

This project has the objective of ensuring that over 200,000 individuals residing in remote rural areas gain access to high-quality electricity services. The World Bank’s Board of Directors has granted approval for three fresh financing initiatives in Argentina, one of which amounts to $400 million designated for the expansion of clean energy accessibility and the promotion of energy-efficient practices within susceptible households and communities.^[79]WORLD BANK, World Bank: Investments to improve Health, Energy and Infrastructure in Argentina. … Continue reading In alignment with the guidelines established by Laws 27.191 and 27.424, Argentina has established ambitious targets, aiming to achieve a renewable energy consumption level of 20 percent by 2025, along with the installation of 1,000 MW of power generation capacity by 2025 and an additional 1,000 MW of distributed generation capacity by 2030.^[80]Act 27191 Legal Regulations on National Promotion for the Use of Sources of Renewable Energy, Congress Argentina (2015) (enacted) … Continue reading

Government Initiatives:

Ministry of mines and Energy and the Ministry of Science, Technology and Innovation:

Discussions held in 2019 led to the initiation of the Energy Big Push project, a collaborative endeavor supported by the German government and the United Nations, focused on advancing clean energy innovation. ^[81]International Energy Agency, Brazil aims to make a global impact on clean energy innovation (2023), available … Continue reading) This initiative brought together key government entities and stakeholders, such as EPE and the Centre for Strategic Studies and Management, to establish a framework for improved data and the formulation of energy innovation policies in Brazil. ^[82]Id. Leveraging inova-e, an exemplary online platform for energy R&D spending and innovation data, Brazil has gained crucial insights shaping its energy innovation strategy, with the Ministry of Mines and Energy and the Ministry of Science, Technology and Innovation introducing new institutional structures and securing funding from the European Commission and UK government for both inova-e and an extended phase of the Energy Big Push project, addressing broader issues beyond research and development. ^[83]Id.

The National Electric Energy Agency (Aneel):  

The National Electric Energy Agency is in the process of updating its operational procedures in accordance with a federal law imposing research and development obligations on Brazilian electricity utilities, with the goal of expanding the scope to possibly incorporate the option of encouraging venture capital investments in startups. ^[84]International Energy Agency, Brazil aims to make a global impact on clean energy innovation (2023), available … Continue reading)

Legislative Initiatives

The just transition law Number 14.299, published January 5, 2022, created the Just Energy transition program, the main goal of which is to prepare the region for phasing out coal in the Santa Catarina state. ^[85]International Energy Agency, Just Energy Transition Programme (2022), available at https://www.iea.org/policies/14590-just-energy-transition-programme (last visited Nov. 27, 2023)   It ensures that power will be contracted from coal power plants up to 2040. ^[86]Id.

Law 14.300/2022 changes the way the solar tax is charged on electricity bills. ^[87]Rödl & Partner, Brazil: New Government in Place | What to Expect from Current and new Policies on Renewable Energy Sector (2023), available … Continue reading)  Under the 2022 law, offsetting credits  that reduce the impact of the solar tax are now assessed a new fee to account for distribution expenses. ^[88]Id.  However, entities that had already installed a solar panel are be exempt from this tax until 2045. ^[89]Id.

The launch of the National Biofuels Policy (RenovaBio) in December 2017 aimed to bolster Brazil’s fulfillment of the commitments outlined in its Nationally Determined Contribution (NDC) under the Paris Agreement. ^[90]C. Grangeia et al, The Brazilian biofuel policy (RenovaBio) and its uncertainties: An assessment of technical, socioeconomic and institutional aspects (2022), Energy Conversion and Management: X … Continue reading This policy comprises three strategic axes: 1) Decarbonization Goals; 2) Biofuel Production Certification; and 3) Decarbonization Credit (CBIO). ^[91]Ministério de Minas e Energia, Secretaria de Petróleo, Gás Natural e Biocombustíveis,  RenovaBio,  available … Continue reading) Each goal has a decree or law that regulates it. The decarbonization goal was regulated by Decree No. 9,888/2019, the certification by ANP Resolution No. 758/2018 and CBIO credit transactions by No. 419/2019. ^[92]Id.

Programs

Colombia has a ministry of Energy which has been the lead governmental institution on initiatives and programs for energy transition in the country^[93]Colombian Ministry of Mines and Energy Website,https://www.minenergia.gov.co/en/ . A landmark project was the so-called Energy Plan 2050 focused on identifying the necessary transformations that will need to occur in Colombia to build long-term socio-ecological climate resilience.^[94]IEA International Energy Agency website, Colombia 2023 Executive Summary, https://www.iea.org/reports/colombia-2023/executive-summary

The E2050 formulation process is led by the Ministry of Environment and Sustainable Development, the DNP (Department of National Planning) and the Ministry of Foreign Affairs, with the permanent support of the Government of France through its financial and technical cooperation agencies (AFD and Expertise France)^[95]See E2050 Colombia Executive Summary Report,p.12, at 06, Expertise France, Available at … Continue reading. This open and participatory process follows the guidelines defined in the Roadmap approved by the Intersectoral Commission on Climate Change (CICC) in September 2019.^[96]See Id, at 05.

Legislative Initiatives

Colombian legislative initiatives are mainly Laws, decrets and other guidelines proposed by the bicameral Congress of the nation. In this section we will address the legal framework and instruments for the promotion of the use of non-conventional energy sources, mainly those of a renewable nature, as well as for the promotion of investment, research and development of clean technologies for energy production, energy efficiency and demand response, within the framework of the Colombian energy policy.

Law 1715 of 2014^[97]Law 1715 of 2014 through which the integration of non-conventional renewable energies into the National Energy System is regulated, Congress of the Republic of Colombia (May.13, 2014) … Continue reading: This was the landmark law that promoted the development and use of non-conventional energy sources and storage systems for efficient use of energy, mainly those of a renewable nature, in the nation’s energy system, it promotes efficient energy management and smart metering systems, which include both energy efficiency and demand response.

It Introduces the term ZNI or Non-Interconnected Zones^[98]See id at 22., which are municipalities, townships, localities and hamlets not connected to the National Interconnected System (SIN), meaning that have limited or no access at all to traditionally sourced energy.

Law 1819 of 2016^[99]Law 1819 of 2016 through which a structural tax reform is adopted, the mechanisms to combat tax evasion and avoidance are strengthened, and other provisions are dictated, Congress of the Republic of … Continue reading: This tributary/tax reform presented a series of tax deductions for renewable energy and implements a carbon tax via article 221 gas and petroleum derivatives fuel oils have the highest tax rates.

Law 2099 of 2021^[100]Law 2099 of 2021 through which provisions are dictated for the energy transition, the dynamization of the energy market, the economic reactivation of the country and other provisions are dictated., … Continue reading: Modifies the Law 1715 of 2014 and makes reference to the creation of a Single Fund for Energy Solutions – FONENERGIA^[101]See id, Art.10, an autonomous patrimony to be constituted by the Ministry of Mines and Energy, through the execution of a mercantile trust agreement, that would help coordinate, articulate and focus the different sources of resources to finance and carry out plans, projects and programs to improve the quality of service, expand energy coverage and standardization of networks through electric power and fuel gas solutions with criteria of environmental sustainability and social progress, under domiciliary public service schemes or different from this one.^[102]Id.

Article 53 Presents a Training for employment with the joint support of SENA (National Apprenticeship Service), the Ministry of Labor, the Ministry of Mines and Energy and the Ministry of Education, were technical and professional education programs shall be promoted in order to teach the necessary skills in the sectors related to Non-Conventional Energy Sources and Efficient Energy Management.^[103]See Supra note, Article 53.

The most important governmental initiative based on international support for El Salvador is the EUROCLIMA program, which is funded by the European Union and co-financed by the German Federal Government through the Federal Ministry for Economic Cooperation and Development (BMZ), as well as by the governments of France and Spain through the Ministry of Foreign Affairs.^[104]International and Ibero-American Foundation for Administration and Public Policies … Continue reading

El Salvador’s governmen aims to diversify energy, reduce oil dependency with renewable enegry^[105]Climate Scope, El Salvaor, Bloomberg NEF,https://www.global-climatescope.org/markets/sv/. There have been several clean energy auctions since 2013^[106]Id.. One of the latest was held in January 2017, where the CNE, (Consejo Nacional de Energía) awarded 119 MW (DC) of solar energy and 70 MW of wind as four solar projects were selected contracting 310 megawatts (MW) of renewable capacity. ^[107]Emiliano Bellini,”El Salvador launches auction for PV projects up to 2 MW in size”, PV Magazine, (May 21,2018), … Continue reading

The country provides tax exemptions and priority grid access for clean energy, while the regulator enabled net metering in 2017 for sale of surplus power to the grid.^[108]See Supra note.
El Salvador has 2.4GW of installed capacity, led by oil/diesel at 32% and hydro at 23%. Solar dominates renewables with 21% share and 507MW, up from just 104MW in 2017. The market is open to private generators and connected regionally via SIEPAC.^[109]Id.
The 2020–2050 National Energy Policy aims to universal electricity access by 2030.^[110]Nunez Zelaya,Anamaria,IDB Backs Program for Universal Access to Electricity in El Salvador, IDB,(Oct.11, 2023), https://www.iadb.org/en/news/idb-backs-program-universal-access-electricity-el-salvador
El Salvador lacks EV targets but promotes adoption through customs and tax incentives like duty exemptions and VAT reductions for electric, hybrid, and two-three wheel vehicles.^[111]Climate Scope, El Salvaor, Bloomberg NEF,https://www.global-climatescope.org/markets/sv/

Government Initiatives:

Guatemala provides tax incentives to promote the adoption of electric vehicles, and there is a proposal to gradually implement the vehicle circulation tax (ISCV) on EVs^[112]Bloomberg NEF, Climatescope Guatemala (2022), https://www.global-climatescope.org/markets/gt/ (last visited Nov. 10, 2023.

In that sense, in the initial year of ownership, no taxes would apply, with the exemption diminishing gradually until the complete tax obligation is reinstated, typically between the fifth and 10th year.^[113]Id.

In 2019, the country unveiled its National Energy Efficiency Plan, aiming to achieve a 15% reduction in energy consumption by 2032 compared to business-as-usual, encompassing specific targets such as 30% for public sector institutions, 25% for industry, and 18% for the residential sector. ^[114]Id.

Panama’s National Energy Plan 2015-2050 included a target for 70% of installed generation capacity to come from renewable energy by 2050^[115]Climate Scope, Panama, BloombergNEF, https://www.global-climatescope.org/markets/pa/. The country’s efforts to promote renewables development include tax policies and duty exemptions, but it no longer holds tenders specifically for clean energy contracts.^[116]Id.
Panama offers attractive tax benefits to promote clean energy generation. Since 2004, renewable projects up to 500 kilowatts are fully exempt from equipment import and value-added taxes^[117]See Id.. Larger projects get income tax credits, such as 25% of investment for generators up to 10 megawatts^[118]Id.. Over 10 megawatts earns a fiscal benefit of 25% and an income tax credit up to 50% of the investment. Smaller renewables also get exempted from transmission and distribution fees^[119]Id.. Additional incentives target technologies like solar PV and wind. Solar equipment avoids import tax and VAT, and gets a 5% income tax credit plus accelerated depreciation^[120]Id.. Wind generation imports are duty-free and owners pay no national taxes for 15 years^[121]Id.. A 2016 net metering policy further enables self-generation facilities to connect to the grid and sell excess power, accumulating bill credits up to 25% of historic use.^[122]Id.

Energy Policy 2005-2030

Guided by the Energy Policy 2005-2030 under MIEM-DNE (Ministry of Industry, Energy and Mines through the National Energy Directorate), Uruguay has achieved near-universal electricity access at 99.8%, with a 100% electrification goal by 2030^[123]Climate Scope Bloomberg NEF, Uruguay, https://www.global-climatescope.org/markets/uy/ . This approach emphasizes equitable and sustainable consumption, especially for vulnerable populations, aligning with the four main strategic axes of the policy^[124]Uruguay Ministry of Industry, Energy and Mines, Energy Policy 2005-2030 (2005), p.3 available at … Continue reading. These axes encompass ensuring 100% affordable energy access for residential, industrial, and service sectors, promoting sustainable transportation, and providing energy-resilient housing for vulnerable households^[125]See Id p.9. However, a key challenge stems from limited electricity demand growth, as Uruguay has already incorporated substantial wind and solar capacity relative to market size, resulting in financial implications.^[126] See Id p.7 

The Away from oil and gas programme 2023/2024

The “away from oil and gas” financial incentive program aims to assist both individuals and businesses in transitioning from fossil fuel-based space heating systems to more sustainable alternatives. In Austria, approximately 600,000 households still rely on environmentally harmful oil heating systems. Notably, the program places a significant focus on aiding low-income households. For the lowest 20% of income earners, an additional EUR 100 million was allocated for support between 2021 and 2022. This special provision enables financial assistance of up to 100% of the new heating system’s cost. It is expected that this targeted support will benefit around 8,000 low-income households, contributing to social and economic progress and fostering the involvement of all segments of society in the transition to cleaner energy sources.^[127]FEDERAL MINISTRY REPUBLIC OF AUSTRIA, ECONOMY, “raus aus Öl und Gas” 2023/2024 https://www.oesterreich.gv.at/themen/bauen_wohnen_und_umwelt/energie_sparen/1/raus_aus_oel.html (las … Continue reading)

In 1991, Norway imposed a carbon tax on the combustion of fossil fuels and the petroleum sector.^[128]International Energy Agency, Energy Policy Review Norway 2022, 13 (2022), https://iea.blob.core.windows.net/assets/de28c6a6-8240-41d9-9082-a5dd65d9f3eb/NORWAY2022.pdf (last visited Nov. 09, 2023) Being one of the first countries in the world to place taxes on these sectors, approximately 85% of Norway’s domestic GHG emissions are either covered by the EU Emissions Trading System or a CO2 tax (or other GHG taxes), or both.^[129]Id.
Additionally, and through a Nationally Determined Contribution (NDC) under the Paris Agreement, the country committed to reduce its emissions by at least 50% to 55% by 2030 compared to their 1990 emission levels.^[130]Norwegian Ministry of Climate and Environment, Lov om klimamål (klimaloven) (2021), https://lovdata.no/dokument/NLE/lov/2017-06-16-60 (last visited, 2023) In June 2017, the Norwegian parliament adopted a Climate Change Act establishing that Norway’s NDC aim would be to reduce emissions by 90 to 95% by 2050 compared to their 1990 emission levels.^[131]Id.

As part of the European Union’s (EU) internal energy market, Norway works closely with the EU on matters related to energy and climate.^[132]International Energy Agency, supra note 1, at 10  Norway has agreed to participate in EU climate legislation through 2030, on matters related to the EU Emissions Trading System (EU ETS); the Effort Sharing Regulation (ESR) for non-ETS emissions; and the land use, land-use change and forestry regulation (LULUCF).^[133]Id.

In January 2021, Norway’s former government presented an Economy-wide Climate Action Plan for 2021-2030 to parliament describing an action plan to reduce emissions by at least 50% and up to 55% of 1990 levels by 2030.^[134]Norwegian Ministry of Climate and Environment, Norway’s Climate Action Plan for 2021–2030, https://www.regjeringen.no/en/dokumenter/meld.-st.-13-20202021/id2827405/?ch=1 (last visited Nov. 09, … Continue reading The action plan’s main emphasis is on emissions from sectors not covered by the EU ETS, including from transport, buildings, waste and agriculture.^[135]Id. The plan includes policies and measures aimed at cutting emissions from non-ETS sectors, which account for around half of Norway’s total emissions, by 45% by 2030 from 2005 levels.^[136]Id. It also addresses EU ETS emissions as well as CO2 emissions and removals from LULUCF.^[137]Id. The main policy instruments in the Climate Action Plan are GHG taxation, regulatory measures, climate-related requirements in public procurement processes, information for the public on climate-friendly options, financial support for the development of new technologies, and initiatives to promote research and innovation.^[138]Id. The white paper announced a gradual increase in the national carbon tax rate to 2,000 NOK/t CO2-eq (196 EUR/t CO2-eq) in 2030, which would be one of the highest levels in the OECD.^[139]Norwegian Ministry of Climate and Environment, supra note 6)

Spain’s National Strategy to Transition Coal-Dependent Communities

Spain’s coal industry has faced a prolonged decline since the late 1990s, due to factors such as economic forces, domestic priorities, and European Union directives, resulting in a drastic reduction in coal mining employment from 45,000 in 1990 to approximately 1,700 today^[140]World Resource Institute, Spain’s National Strategy to Transition Coal-Dependent Communities (2021), availabl at … Continue reading.

The concentrated nature of mining in specific towns and regions has led to economic challenges. In 2019, Spain introduced the Just Transition Strategy as part of its broader decarbonization efforts, aiming to navigate the economic fallout of previous mine closures and protect the livelihoods of coal miners and power plant workers, but funding uncertainties linger as the majority of coal jobs have already disappeared.^[141]Id.)) Energy Transition initiatives: The National Energy Poverty Strategy 2019-2024 The National Energy Poverty Strategy 2019-2024, endorsed in 2019, serves as a comprehensive tool for the in-depth … Continue reading Within this strategy, energy poverty is defined, and its extent and evolution are measured through four indicators: 1) the percentage of households spending more than double the national average on energy relative to household income; 2) the percentage of households with absolute energy expenditure less than half the national average; 3) the inability to maintain dwellings at adequate temperatures; and 4) delays in energy bill payments. ^[142]Id.

The Industrial Deep Decarbonization Initiative (IDDI) within the Clean Energy Ministerial is a global alliance aiming to boost the use of low-carbon industrial materials.^[143]United Nations Industrial Development Organization, Industrial Deep Decarbonization, an initiative of the clean energy ministerial, available at https://www.unido.org/IDDI In partnership with governments, it seeks to standardize carbon assessments, set ambitious procurement targets, encourage investment in low-carbon product development, and formulate industry guidelines.^[144]See Id.  Sweden’s participation in the initiative was announced at the COP27 climate conference.^[145]Press Release, Ministry of Climate and Entreprise, “Sweden increases its engagement in the Clean Energy Ministerial to accelerate the industry transition”(Nov. 25, 2022), available at … Continue reading

Furthermore, Sweden’s energy strategy is intricately intertwined with its climate objectives, as corroborated by the most recent evaluation of the nation’s energy policies by the International Energy Agency.^[146]International Energy Agency, “Sweden is a leader in the energy transition, according to latest IEA country review”, available at … Continue reading). In both the 2016 Energy Agreement and the 2017 Climate Framework, Sweden laid out ambitious targets, including the long-term aspiration of achieving net-zero emissions by 2045.^[147]Id. However, further measures are imperative to realize these objectives, given that the country’s overall carbon emissions have remained relatively stable since 2013.^[148]Id.

The 2015 Paris Agreement prompted Sweden to establish long-term goals for energy and climate policy.^[149]Karin Thalberg, “The Swedish energy transition. A race far from won”, Policy brief, Paris: Jacques Delors Institute, (Sep.9,2022), p.8, available at … Continue reading However, the existing framework is considered inadequate. Agreements, supported by a parliamentary majority, strive to establish a clear and cohesive energy and climate policy, providing enduring signals for decarbonization^[150]Id.. In Sweden’s parliamentary system, cross-party collaborations are crucial for governing the ongoing climate and energy transition.^[151]Id.

Sweden defined its current long-term energy policy goals in the 2016 Framework Agreement on Energy Policy (Energy Agreement), supported by a large majority in the parliament, representing both the government and the opposition.^[152]Swedish Nuclear Society and Analysgruppen, The Swedish energy policy agreement of 10 June 2016 – unofficial English translation, available at … Continue reading

Illinois. Under Section 10 of the Energy Transition Act, ^[154]Illinois Senate Bill 2408 an energy Community Reinvestment Act was created outlining a legislative intent to facilitate a smooth transition to 100% renewable energy in Illinois while recognizing the potential impact on communities and workers and proposing specific measures and resource allocations to address these challenges in a just and supportive manner.^[155]Illinois General Assembly, Public Act 102-0662, available at: Energy Transition Act, IL SB2408 (2021-2022).  That act attempts to address the need of “providing support for the transition of Illinois’ communities and workers impacted by closures or reduced use of fossil fuel power plants, nuclear power plants, or coal mines by allocating new economic development resources for business tax incentives, workforce training, site clean-up and reuse, and local tax revenue replacement.”^[156]Id.

New Mexico. The Energy Transition Act states that resources “able to reduce the cost of reclamation and use for lands previously mined within the county of the qualifying generating facility,” are to be given preference in determining the approval of the said resources.^[157] State of New Mexico, Senate bill 489 “Energy transition Act”, p.10, available at S.B.19-489, 2019 Reg. Sess. §(3) (B) (New Mexico 2019).

California. “It is the intent of the Legislature to subsequently amend this measure to include provisions that would establish the California Equitable Just Transition Fund to assist fossil fuel-dependent workers with wage replacement, wage insurance, pension guarantees, health care, retraining, peer counseling, and relocation support for fossil fuel workers who face layoffs due to closure of operations.” Introduced February 10, 2022, Introduced on February 10 2022 – 25% progression, proposed and not enacted ^[158]Fossil fuel-dependent workers: California Equitable Just Transition Fund, CA AB1966, California Legislature (2021-2022), available at https://legiscan.com/CA/bill/AB1966/2021 (last visited Dec. 08, … Continue reading)

Connecticut. The act provides for the Just Transition Office to establish a “workforce development, retraining and apprenticeship program for clean energy jobs,” enabling trainees to obtain real world experience and assistance to obtain applicable certifications. Introduced February 2020, not enacted.^[159]An Act Establishing a Green New Deal in Connecticut. Raised S.B. No. 354 2020; https://www.cga.ct.gov/2020/TOB/S/PDF/2020SB-00354-R00-SB.PDF

Massachusetts. This act was designed to mitigate the severe impacts of the climate crisis by outlining strategies and policies aimed at attaining a state of net-zero emissions requiring the creation of a clean energy equity workshop. One of the goals of this workshop would be to provide job training and job placement for former fossil fuel industry workers. Proposed but not enacted.^[160]An Act to prevent the worst effects of our climate emergency by providing policy pathways to achieve net zero emissions, The Commonwealth of Massachusetts available at A bill to prevent the worst … Continue reading

Maryland. Climate Solutions Now Act of 2022 establishes strategies for targeting workforce development and job creation in fenceline communities that have historically borne the brunt of hosting carbon polluters. Introduced and enacted in April 2022. ^[161]S.B. 0528, (Md. Regular Session 2022) (“Climate Solutions Now Act of 2022”), available at https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/sb0528?ys=2022RS (last visited January … Continue reading)

Minnesota.H.F. 6 is the 2021 omnibus commerce and energy finance policy. It establishes the Minnesota Energy Transition Plan, and a report of impacted facility closures, projected associated job losses, and the effect on impacted communities and impacted workers by 2022. It appropriates funding in state fiscal years 2022 and 2023 . Introduced and enacted in June 2021. ^[162]H.F. 6, 92d Leg. (Minn. 2021) (“Omnibus commerce, climate, and energy finance bill”), available at https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF6&ssn=1&y=2021 (last visited … Continue reading)

New York: This amendment establishes a Worker Assurance Program which creates programs or disburses funds between 3 to 10 years for “transitional support including… skills training, job counselling, tuition support and on-the-job training,” ^[163]“An act to amend the environmental conservation law, the executive law, the labor law and the tax law, in relation to enacting the climate and community investment act” S. B. S7905, … Continue reading for adversely affected workers. This is to be financed through a fund created under the tax law.^[164]See Id. at18, 41

New Mexico. The Act permits the expenditure of funds for job training of displaced workers through the “Energy Transition Displaced Worker Assistance Fund” to a municipality, county, Indian nation, pueblo or tribe or land grant community in New Mexico.^[165]Energy Transition Act, S.B.19-489, 2019 Reg. Sess. § 16 (F) (3)(N. M. 2019), p.38, available at https://www.nmlegis.gov/Sessions/19%20Regular/bills/senate/SB0489.pdf

The Alberta government provides vouchers for workers to pursue post-secondary education to train for new careers if their worksite is closing permanently or temporarily within the next 5 years or if the worker has received a formal written notice of layoffs.^[166]Government of  Alberta Website, Coal and Electricity Transition Tuition Voucher, available at https://www.alberta.ca/coal-tuition-voucher (last visited Dec. 08, 2023)

Colorado. While not law, the Colorado Department of Labor and Employment published its Just Transition Action Plan. In the Plan, the Department recommends providing apprenticeship programs to recently unemployed fossil fuel workers, but currently does not have the funds to implement them and thus will only use existing resources for now.^[167]Colorado Department of Labor and Employment,Colorado Just Transition Action Plan, at 8, https://cdle.colorado.gov/sites/cdle/files/documents/Colorado%20Just%20Transition%20Action%20Plan.pdf (Dec.31, … Continue reading

New Mexico. In New Mexico’s Energy Transition Act, the legislature provides funding to local governments that institute apprenticeship programs for displaced energy workers.^[168] State of New Mexico, Senate bill 489 “Energy Transition Act”, available at SB 489, 2019, §16(F)(3).

IRS prevailing wage and apprenticeship requirements under the Inflation Reduction Act:

The IRA^[169]Inflation Reduction Act of 2022, Pub. L. No. 117-169, 136 Stat. 1818, available at https://www.congress.gov/117/plaws/publ169/PLAW-117publ169.pdf  established prevailing wage and apprenticeship conditions on clean energy credits/deductions to promote quality jobs, with specific requirements and cure provisions if the conditions are not met.

The Inflation Reduction Act includes prevailing wage and apprenticeship requirements for certain clean energy tax credits and deductions to qualify for a 5x multiplier on the incentive amount.^[170]IRS Website, Frequently asked questions about the prevailing wage and apprenticeship under the Inflation Reduction Act, available at … Continue reading

Proposed regulations provide definitions and guidance on meeting the requirements.

Prevailing Wage Requirements^[171]Inflation Reduction Act of 2022, Pub. L. No. 117-169,§13101 (e)(7), 136 Stat. 1818.

Taxpayers must ensure laborers and mechanics, including contractors/subcontractors, are paid prevailing wages during construction, alteration, or repair of a qualified facility.^[172]See Supra note (IRS Website)

• Must pay local prevailing wages determined by the Department of Labor (DOL) to all laborers and mechanics employed by the taxpayer or contractors/subcontractors.
• Applies to work at the facility site and dedicated offsite locations.
• Taxpayers must request supplemental wage determinations from DOL if needed.

Failure to meet requirements can be cured by paying back wages plus interest, penalties to the IRS, and penalties per labor hour shortfall.

Apprenticeship Requirements^[173]Inflation Reduction Act of 2022, Pub. L. No. 117-169, §13101 (e)(8), 136 Stat. 1818.

• Must ensure 12.5-15% of labor hours are performed by qualified apprentices.
• Must maintain a proper apprentice-to-journeyworker ratio.
• Must make good faith efforts to request apprentices from registered programs.
• Can cure failures via penalty payments.

There are some exceptions related to small projects, projects started before January 2023, and good faith apprentice request denials.^[174]See Supra note

Infrastructure Investment and Jobs Act

Jobs opportunities and wages:

Section 41101 under Division D Title XI requires prevailing wages for all laborers and mechanics employed by contractors and subcontractors on grid infrastructure projects funded by the Act. This helps ensure fair wages are paid.

Section 40201 under Division D Title II establishes a program to provide mapping and data to help identify domestic sources of critical minerals used in clean energy technologies. This could help create mining/extraction jobs.

Section 40205 under Division D Title II directs the Department of Energy to establish a rare earth element demonstration facility, which could create related jobs.

Section 40521 aims to address the social impact of the energy transition through workforce development and support for small businesses and facilities. It looks to expand industrial research and assessment centers at trade schools, community colleges, and union training programs to reskill and upskill workers for jobs in energy efficiency and clean energy through internship and apprenticeship opportunities. This will help transition displaced energy sector workers into new roles supporting the clean energy economy. Additionally, the section seeks to expedite small business loan applications to implement recommendations from the industrial research centers, supporting small businesses as they reduce their energy usage and costs. An implementation grant program is also established to fund projects identified through energy assessments that achieve significant energy savings or emissions reductions. Priority for these grants is given to applicants that have undergone an assessment.

Funding for clean energy technology R&D, manufacturing, and deployment projects throughout the Act could help support establishment of new apprenticeship and training programs tailored to related skills and jobs.Investments in residential and commercial efficiency upgrades in Title V can support local contractor job creation.

New funding for clean energy manufacturing, carbon capture, critical minerals mining, hydrogen technology, and advanced nuclear in Titles II and III helps support domestic job creation.

Section 40431 requires the Department of Energy to consider impacts on jobs and energy affordability when evaluating measures to promote greater electrification of the transportation sector. 

Training:

Section 40552 under Division D Title V reauthorizes and provides additional funding for the Energy Efficiency and Conservation Block Grant Program. This program provides grants to state and local governments to fund job training programs related to energy efficiency and renewable energy industries.

Section 40533 directs the Smart Manufacturing Leadership Act program to support small and medium manufacturers and the workforce transition during the energy transition.

Section 40521 establishes an expansion of the Department of Energy’s Industrial Research and Assessment Centers (IRACs), including new centers at trade schools and community colleges. IRACs conduct energy audits and identify opportunities for efficiency, emissions reductions, productivity, and waste minimization at manufacturing sites.  Additional IRACs are aimed at providing assessments for small- and medium-sized manufacturers. The Act provides funding for IRAC outreach, coordination with other technical assistance programs, and establishment of regional Centers of Excellence. Workforce training programs like internships and apprenticeships are funded to implement IRAC audit recommendations and gain experience in industrial processes/energy savings. Small business loans are expedited to help manufacturers implement IRAC suggestions. A new grant program is created to support implementation of IRAC audit recommendations, prioritizing projects with higher energy savings and emissions reductions.