| | | | |  | | By Rebekah Alvey | Presented by ExxonMobil | | 
Solar panels | Elise Amendola/AP | A tax program meant to make clean energy projects attractive to cities, schools, tribes and power cooperatives is causing all sorts of headaches — slowing the rollout of federal incentives to help build the green economy. The federal tax rebate, known as direct pay, is intended to fuel renewable and low-carbon projects by allowing the Treasury Department to cover 30 percent of the cost of projects developed and owned by nonprofits, writes Brian Dabbs. The idea is to boost local investment in wind farms or electric vehicle fleets, for instance. But the on-the-ground challenge, mainly for local governments, is really about tax expertise, typically in short supply at organizations working on a shoestring budget. To qualify for the full tax benefit, projects have to comply with “Made in America” rules that require projects to be built with domestic material. Domestic content rules have emerged as a bugaboo for companies and nonprofits trying to invest in the green economy. “This is a new muscle that cities are going to have to flex,” Mike Gleeson, legislative director of finance, administration and intergovernmental relations at the National League of Cities, told Brian. Treasury Department limits on financial partnerships are also scaring off some cities and nonprofits. Co-ownership can make all the difference in the world if the barrier to developing a project is money and expertise. Treasury is expected to release domestic content guidance for direct pay by the end of the year, and the agency is also reexamining how it treats partnerships. Still, cities and schools are purchasing EVs, installing solar panels and greening their buildings. Plenty say they’ll use the tax code to support those efforts, even if it takes some work on their end. “It’s a great opportunity for local governments. And yes, we do plan to pursue it,” said Dory Estrada, sustainability manager for Takoma Park, Maryland, a suburb of Washington.
| | | | It's Friday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Rebekah Alvey. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to ralvey@eenews.net.
| | | | GET A BACKSTAGE PASS TO COP28 WITH GLOBAL PLAYBOOK: Get insider access to the conference that sets the tone of the global climate agenda with POLITICO's Global Playbook newsletter. Authored by Suzanne Lynch, Global Playbook delivers exclusive, daily insights and comprehensive coverage that will keep you informed about the most crucial climate summit of the year. Dive deep into the critical discussions and developments at COP28 from Nov. 30 to Dec. 12. SUBSCRIBE NOW. | | | | | | | | Today in POLITICO Energy’s podcast: Corbin Hiar talks about Saudi Arabia's controversial stance on renewable energy and climate change.
| | | | A message from ExxonMobil: At ExxonMobil, we’ve captured more CO₂ than any other company, so we have the expertise to help some of the most carbon-intensive sectors. With more than 30 years' experience, we’re a global leader in carbon capture and storage. Now, we’re advancing projects around the world, including in Louisiana and Texas, to help us and our customers reduce emissions. Let's deliver. | | | | | | | 
People get a ride at the COP28 U.N. Climate Summit on Friday in Dubai, United Arab Emirates. | AP Photo/Rafiq Maqbool | Skeptical promises: British diplomats are wary of Vietnam’s intentions to shutter its coal industry, private briefing notes reveal. The $15.5 billion, G7-backed plan received public praise from U.S. climate envoy John Kerry and European Commission President Ursula von der Leyen. However, documents show that U.K. officials worry that Vietnam’s environment ministry is “politically weak” and that other ministries had hindered the work through bureaucracy and “foot dragging,” writes Karl Mathiesen. Trump clouds California: Some of the international community in Dubai this week are questioning how Donald Trump regaining the presidency would impact California’s climate goals, writes Blanca Begert. Particularly, there’s concern how a Trump presidency would affect the state’s ability to meet electrification targets and the future of California’s special permission under the Clean Air Act to set emissions rules that go beyond the federal government's. California Air Resources Board Chair Liane Randolph is assuring partners that shifts in the auto industry will buffer impacts of a Trump presidency on electrification. Additionally, she points out that much of California’s climate work is under the state’s own authority. Clear path for Azerbaijan: Next year’s global climate summit will likely be hosted by Azerbaijan after Bulgaria and Armenia withdrew bids this week, write Zia Weise and Corbin Hiar. While Azerbaijan is not in the top 20 oil-producing countries, it is heavily reliant on oil and gas sales, which make up over 90 percent of its exports. The move continues a trend of oil and gas nations hosting the annual talks, which has irritated some officials. The current host, the United Arab Emirates, has been hesitant to make calls to phase out fossil fuels during ongoing talks in Dubai.
| | | | 
President Joe Biden joins striking United Auto Workers on the picket line in Van Buren Township, Michigan. | Evan Vucci/AP | Pipeline politics Michigan voters are watching President Joe Biden for action on a pipeline known as Line 5, writes Adam Aton. Activists view Biden as their best bet at blocking the pipeline, and are applying pressure to his administration despite previous silence from the White House. Last week, the Michigan Public Service Commission approved a plan to cover the 70-year-old pipeline in a protective underground tunnel. The move has catapulted the debate to a difficult election issue for Biden. Who rules hydrogen? Experts are worried new EU rules to push hydrogen gas would put the emerging sector in the control of oil and gas giants, writes Gabriel Gavin. Negotiators are nearing the end of talks on a hydrogen and decarbonized gas package that backers say will be significant for Europe’s carbon emissions goals. Supporters also argue it will reduce reliance on natural gas imports from countries like Russia. However, there’s concern that those responsible for overseeing natural gas pipelines will be in charge of shaping the industry and hydrogen infrastructure. While these players would bring significant resources and background, it appears to be a risky conflict of interest to some groups. NDAA riders rejected The Senate removed some of the most extreme House Republican riders against efforts to tackle climate change from the 2024 National Defense Authorization Act, writes Andres Picon. Republican measures to defund climate programs and block the Pentagon from adopting zero-emission vehicles were cut from the package, which Democrats say is “much improved” from the House version. However, several other provisions with bipartisan support were omitted like the ADVANCE Act which aims to boost deployment of nuclear reactors. The chamber is expected to vote on the package early next week after weeks of negotiations. | | | | A message from ExxonMobil:   | | |
| | | | Climate concerns: A high number of Americans are worried about climate change, and want the federal government to act, a new CNN poll found. Almost two-thirds of U.S. adults are concerned about the impact of climate change in their communities, and 73 percent believe the government should develop policies with the goal of cutting pollution. Record wind energy: Ireland set a record for wind energy on Wednesday at 4,629 megawatts. Wind was responsible for over 70 percent of the country's total electricity demands for the day by midnight Thursday. | | | | A message from ExxonMobil: Let’s deliver carbon capture for industry. At ExxonMobil we’re working on solutions to reduce carbon emissions in our own operations – like carbon capture – that could also help other industries. At our Baytown plant, one of the world’s largest integrated refining and petrochemical operations, we’re working to deploy hydrogen power and carbon capture to reduce emissions by up to 30%. Now, we’re taking solutions like these to others in heavy industry. Using our technologies, we can help businesses in manufacturing, commercial transportation and power generation create a plan to make similar reductions. And together, we can deliver a lower-emissions future. Let’s deliver. | | | | | A showcase of some of our best subscriber content.
|  Boats cruise near barges fully loaded with coal on the Mahakam river in Samarinda, East Kalimantan, Indonesia, on Dec. 19, 2022. A plan for how Indonesia will spend $20 billion to transition to cleaner energy was submitted Wednesday, Aug. 16, to the government and its financing partners, the planners said. (AP Photo/Dita Alangkara) | AP | High borrowing costs driven by interest rates are threatening goals to significantly increase renewable energy capacity. It’s one reason the Danish offshore wind developer Ørsted cited in canceling projects off the New Jersey coast this fall. About 40 percent of registered voters say they’ve heard “nothing at all” about the Inflation Reduction Act, a recent national survey found. Smaller climate-driven events like thunderstorms can also be costly for property insurers due to increased frequency, recent reports show. That's it for today, folks. Thanks for reading, and have a great weekend! | | | | SUBSCRIBE TO CALIFORNIA CLIMATE: Climate change isn’t just about the weather. It's also about how we do business and create new policies, especially in California. So we have something cool for you: A brand-new California Climate newsletter. It's not just climate or science chat, it's your daily cheat sheet to understanding how the legislative landscape around climate change is shaking up industries across the Golden State. Subscribe now to California Climate to keep up with the changes. | | | | | | | | | Follow us on Twitter | | | | Follow us | | | | |
