Transportation – Sustainability, Resiliency and Risk Mitigation

On July 22, as part of the Biden-Harris Administration’s Investing in America agenda, the U.S. Environmental Protection Agency announced selected recipients of over $4.3 billion in Climate Pollution Reduction Grants to implement community-driven solutions that are intended to tackle the climate crisis, reduce air pollution, advance environmental justice, and accelerate America’s clean energy transition.

The 25 selected applications – https://www.epa.gov/inflation-reduction-act/general-competition-selected-applications-table will fund projects in 30 states, including one Tribe, that target reducing greenhouse gas pollution from 6 sectors: Transportation – $1.18B, electric power – $372M, Commercial and Residential Buildings – $1.06B, Industry – $636M, Agriculture/ natural and working lands – $931M, and Waste and Materials Management – $121M.

A large part of the funded projects are also intended to help 45 states and dozens of metro areas, Tribes and territories develop Climate Action Plans and, per the EPA, is the single largest effort to spur the development of concrete local climate action goals across the nation.

The grants will fund projects supporting the deployment of technologies and programs to reduce greenhouse gases across the country. The grants are intended to help businesses capitalize on new opportunities, spur economic growth and job creation in new and growing industries, and support development of training programs to prepare workers.

According to the EPA website, when estimates provided by all selected applicants are combined, the proposed projects would reduce greenhouse gas pollution by as much as 971 million metric tons of carbon dioxide equivalent by 2050, roughly the emissions from 5 million average homes’ energy use each year for over 25 years.

EPA expects to announce up to an additional $300 million in selections under the Climate Pollution Reduction Grants program for Tribes, Tribal consortia, and territories later this summer.

By way of example, Pennsylvania’s Department of Environmental Protection has been selected to receive a more than $396 million grant for their proposed RISE PA project which focuses on industrial GHG emissions in the industrial sector through a competitive grants program and incentives for small-, medium- and large-scale decarbonization projects across the state.

The Montana Forest, Community and Working Landscapes Climate Resiliency Project will fund measures that improve forest management and expand urban and community forests. The selected application will also assist efforts to mitigate wildfires and coal seam fires and support local initiatives to improve soil health and reduce pollution from agriculture.
The South Coast Air Quality Management District has been selected to receive nearly $500 million for transportation and freight decarbonization through incentives for electric charging equipment and zero-emission freight vehicles.

The Nebraska Department of Environment and Energy will fund measures to increase the adoption of climate-smart and precision agriculture and reduce agricultural waste from livestock. The selected application will also fund projects to improve energy efficiency in commercial and industrial facilities and low-income households as well as deploy solar and electrify irrigation wells.
The Clean Corridor Coalition’s proposal for ZE-MHDV Infrastructure along the I-95 Corridor project will deploy electric vehicle charging infrastructure for commercial zero-emission medium- and heavy-duty vehicles on the Interstate-95 freight corridor. This is a joint venture amongst the New Jersey Department of Environmental Protection, Connecticut Department of Energy and Environmental Protection, Delaware Department of Transportation, and Maryland Departments of the Environment and Transportation. The selected application will provide technical assistance for workforce development and corridor planning across New Jersey, Connecticut, Delaware, and Maryland.
The Accelerating Siting, Zoning, and Permitting of 60% Renewable Energy in Michigan grant will provide incentives and technical assistance to local and Tribal governments to accelerate the siting, zoning, and permitting of renewable energy. The selected application will help spur the adoption of renewable energy at the scale and pace needed to reach Michigan’s goal of 60 percent renewable energy by 2030.
The Atlantic Conservation Coalition is a regional approach focused on natural climate solutions to reduce greenhouse gas emissions. The selected application will fund efforts across North Carolina, South Carolina, Maryland, and Virginia to leverage the carbon sequestration power of natural and working lands, including coastal wetlands, peatlands, forests, and urban forestry. The Atlantic Conservation Coalition is a partnership amongst the North Carolina Department of Natural and Cultural Resources, South Carolina Office of Resilience, Maryland Department of the Environment, and Virginia Department of Environmental Quality.
The Accelerating Clean Energy Savings in Alaska’s Coastal Communities grant will provide advisory services and incentives to replace residential oil burning systems with energy-efficient heat pumps in 50 Alaskan communities.

The measures contained in the selected applications, developed with input from local communities, are expected to achieve substantial public health benefits such as reducing exposure to extreme heat, improving air quality, reducing energy burden for lower income Americans, improving climate resilience, and providing workforce and economic development opportunities, particularly in low-income and disadvantaged communities.

The EPA reported that they reviewed nearly 300 applications that were submitted by entities from across the country and requested a total of nearly $33 billion in funding.

Many of the proposed projects contained in the selected applications, as well as the $250 million in planning grant funding that EPA is providing under the CPRG program for development of Climate Action Plans by state, local, and Tribal governments across the country, will add to the Biden-Harris Administration’s federal actions and national climate strategies across various sectors which include: the U.S. National Blueprint for Transportation Decarbonization, the Administration’s efforts to achieve 100% clean electricity by 2035 and make zero emissions construction common practice by 2030, the Industrial Decarbonization Roadmap, the U.S. Buildings Decarbonization Blueprint, the climate-smart agriculture efforts and Nature Based Solutions Roadmap, the U.S. Methane Emissions Reduction Action Plan, the National Climate Resilience Program.

Green Spouts: While some might espouse the theory that these grants are politically motivated in an Election Year, the reality on the ground is that real dollars are being provided to multiple states and communities to help support their efforts in the climate change mitigation and resiliency arenas. The programs they in turn set up and fund will last for years into the future and should provide a good base to help various communities and stakeholders start to plan and implement strategies to help alleviate some of the impacts that climate change has already created and will create in the future.

Duane Morris has an active ESG and Sustainability Team to help organizations and individuals plan, respond to, and execute on your Sustainability and ESG planning and initiatives. For more information, please contact Brad A. Molotsky, David Amerikaner, Sheila Rafferty-Wiggins, Alice Shanahan, Jeff Hamera, Nanette Heide, Jolie-Anne Ansley, Robert Montejo or the attorney in the firm with whom you are regularly in contact.

Local utility Public Service Enterprise Group (“PSEG”) announced earlier today, October 15, 2021, that it has joined The Race to Zero and Business Ambition for 1.5°C, two campaigns that use science-based targets to aid the fight against climate change.

The Race to Zero and Business Ambition for 1.5°C campaigns are designed to help mobilize support from businesses, cities, regions and investors for a healthy and resilient zero-carbon economy, in line with global efforts to limit warming to 1.5°C.

PSEG’s also issued its 2021 Sustainability and Climate Report, which updates the company’s achievements and goals for a wide range of topics, including air emissions, energy efficiency, transportation and waste minimization.

PSEG Chairman and CEO Ralph Izzo said “Climate change is one of the preeminent challenges of our time, and PSEG has an obligation to help address climate change and its effect on our environment, our customers and communities around the world.”

Their Report showed PSEG’s generation portfolio emission rates for NOx and SO2 were down year-over-year by 58% and 77%, respectively, reflecting emission rates that are significantly below industry averages.

The Report also provides updates on PSEG’s progress across a range of sustainability categories, including:

Energy efficiency: PSEG’s energy efficiency targets have been updated and remain on track. New Jersey regulators approved $1 billion of energy efficiency spend for the three-year programs, designed to help the state achieve its updated framework for energy efficiency and peak demand reduction programs, setting five-year savings targets of 2% for electric distribution and 0.75% for gas distribution companies. PSEG’s targets are aligned with New Jersey’s Clean Energy Act (2018), which calls for these savings to be achieved by 2023.
Transportation: PSEG aims to reduce fossil fuel use in its own transportation fleet through vehicle electrification, rightsizing the fleet and utilizing renewable fuels. By 2030, PSEG aims to convert its passenger vehicles, such as sedans and SUVs, 60% of medium-duty vehicles and 90% of heavy-duty vehicles to battery electric vehicles, plug-in hybrids or anti-idle jobsite work systems.
Waste minimization: Companywide, waste and recycling programs successfully diverted 95.5% of material from landfills in 2020. The ongoing goal for its utility, PSEG to focus on new waste streams for recycling, which will continue to decrease landfill tonnage. The waste minimization goal for PSEG is to divert in excess of 95% of material from landfills.
Air emissions: PSEG is reducing air and other emissions by updating its operations and transitioning to cleaner sources of energy, and, per their Report, already has one of the lowest emissions rates among investor-owned power producers, according to MJ Bradley’s Benchmarking Air Emissions report, July 2021. As of 2020, PSEG has reduced its greenhouse gas emissions by more than 54% since 2005 through switching to lower-carbon fuels, improving energy efficiency and modernizing its electricity and natural gas networks, among other strategies.
Biodiversity: PSEG is committed to promoting and enhancing biodiversity through natural resource conservation while continuing to operate in a safe and reliable manner. PSEG established the Estuary Enhancement Program in 1994. Protection of natural resources and biodiversity informs their environmental philosophy and the planning process considers the potential impacts on regional biodiversity.
Diversity, equity and inclusion: PSEG has a target of 30% of total applicable spending allocated to diverse suppliers, including minority-, women-, veteran- and LGBTQ+-owned suppliers. During 2020, PSEG had a sixth consecutive record-setting year by buying more than $644 million worth of goods and services from diverse suppliers, a 15% increase over 2019. More than 28% of the company’s purchases were with diverse vendors. And PSEG is helping develop New Jersey’s clean energy workforce through innovative training and development programs, emphasizing low- to moderate-income and underrepresented communities.
Environmental justice: According to the Report, PSEG is developing an environmental justice commitment in support of the many diverse communities it serves across the region and believes such a commitment should convey the importance of centering environmental justice considerations across the organization so that customers — especially those in underrepresented communities — can benefit from the coming changes of a decarbonized future.

Triple Bottom Line – PSEG is one of a growing number of public utilities that have pivoted and started to embrace climate goals and climate change as being critical to their future success. While not all utilities are aligned this way, many are beginning to take real steps to make change in this regard. Much still to do for sure but good, solid, accountable and reportable steps in the sustainability and ESG arenas. Kudos for the effort and the transparency.

Duane Morris has an active ESG and Sustainability Team to help organizations and individuals plan, respond to, and execute on Sustainability and ESG planning and initiatives within their own space. We would be happy to discussion your proposed project with you. For more information, or if you have any questions about this post, please contact Brad A. Molotsky, Nanette Heide, Darrick Mix, Jolie-Anne S. Ansley, David Amerikaner, Christiane Campbell, Sheila Slocum-Hollis, Vijay Bange, Stephen Nichol, or the attorney in the firm with whom you are regularly in contact.