Category: Energy

Category Added in a WPeMatico Campaign

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Electric vehicles and hybrids make up 16% of U.S. light-duty vehicle sales

Source: US Energy Information Administration

September 7, 2023

Data source: Wards Intelligence
Note: 2Q23=second quarter of 2023

Hybrid, plug-in hybrid, and battery-electric vehicle sales in the United States have increased in recent years as sales have decreased for non-hybrid gasoline- or diesel-fueled vehicles. In the second quarter of 2023 (2Q23), hybrid, plug-in hybrid, and battery-electric vehicles collectively accounted for 16% of light-duty vehicle sales in the United States, according to data from Wards Intelligence.

A large portion of the sales increase was due to new manufacturer offerings across different market segments, although existing models also accounted for some of the increase in sales. Manufacturers reduced the number of non-hybrid internal combustion engine (ICE) vehicle models from 318 to 297 between 2021 and 2Q23, and they increased the number of battery-electric models from 34 to 55. In this context, a single vehicle model includes one nameplate and all the available trim levels associated with that nameplate.

Data source: Wards Intelligence

The luxury vehicle market captured 18% of total new vehicle sales in 2Q23, up from 14% in 2020. Most of the shift toward battery-electric models is in the luxury segment. Manufacturers removed 17 luxury non-hybrid ICE vehicle models and added 19 luxury battery-electric models between 2021 and 2Q23.

Battery-electric vehicles now account for 20% of all available luxury models, compared with 7% of non-luxury models. Model availability is an indicator of consumer acceptance within a market segment. In 2Q23, battery-electric vehicles accounted for 32% of total luxury sales and a little over 1% of non-luxury sales. Market segment sales data indicate luxury-vehicle buyers are more willing to pay electric-vehicle price premiums than non-luxury market buyers.

Data source: Wards Intelligence

Principal contributor: Michael Dwyer

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DOE Announces $6.4 Million for University Research to Improve Hydrogen Turbine Performance

Source: US Department of Energy

WASHINGTON, D.C. — The U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) today announced $6.4 million for university-based research and development projects that will develop advanced materials and components to improve the performance of hydrogen-fueled turbines. This research will support the increased use of low-carbon fuels like hydrogen in industrial and power sectors, helping to achieve the Biden-Harris Administration goal of net-zero emissions by 2050. Further, accelerating the commercialization of advanced technologies developed through the funded projects will help support good-paying jobs throughout these sectors.

“Achieving a clean energy and industrial economy requires cost-effective use of low-carbon fuels like clean hydrogen,” said Brad Crabtree, Assistant Secretary of Fossil Energy and Carbon Management. “DOE’s University Turbine Systems Research program supports cost-shared research at U.S. universities to improve the performance of hydrogen-fueled turbines and make clean hydrogen more affordable, while also training a next-generation workforce of combustion turbine scientists, engineers, and technicians.”

Projects selected through this funding opportunity announcement (FOA) will develop advanced materials and components that can better manage and withstand the heat generated during hydrogen combustion. This will enable the use of up to 100% hydrogen in gas turbines for carbon-free power generation. The FOA includes three primary focus areas:

  • Research to produce knowledge and data to help improve component designs for gas turbines that use hydrogen-containing fuels;
     
  • Development of turbine components that can utilize advanced cooling and advanced materials and manufacturing technologies; and
     
  • Development of strategies for minimizing risks associated with material selection, and design improvements for engines operating on hydrogen fuels that increase turbine performance.

Applicants to this FOA must address the societal considerations and impacts of their proposed projects, emphasizing diversity, equity, inclusion, and accessibility throughout the research and development process. Applications must explain how projects are expected to deliver equitable access to, and distribution of, benefits produced from successful technology innovations; incorporate diversity, equity, inclusion, and accessibility; and understand the future workforce implications of the innovation. Projects selected under this opportunity will be required to develop and implement strategies to advance these priorities, and report on such activities and outcomes.

Read more details about this FOA here. All questions must be submitted through FedConnect; register here for an account. Visit our website to find resources on how to include equity and conduct community engagement in project plans.

FECM minimizes environmental and climate impacts of fossil fuels and industrial processes while working to achieve net-zero emissions across our economy. Priority areas of technology work include carbon capture, carbon conversion, carbon dioxide removal, carbon dioxide transport and storage, hydrogen production with carbon management, methane emissions reduction, and critical minerals production. To learn more, visit the FECM website, sign up for FECM news announcements, and visit the National Energy Technology Laboratory website.

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Heating U.S. commercial buildings is most energy intensive in cold climates

Source: US Energy Information Administration

September 6, 2023

U.S. commercial buildings in cold or very cold climates were more than five times more energy intensive for space heating than buildings in hot or very hot climates, according to our latest Commercial Buildings Energy Consumption Survey (CBECS). Specifically, commercial buildings in cold or very cold climates consumed an average of 36,100 British thermal units per square foot, but buildings in hot or very hot climates consumed an average of 6,300 British thermal units per square foot.

The energy intensity for heating commercial buildings in the United States depends on the climate in which the building is located. The climate zones in our 2018 CBECS are based on the climate zones in ANSI/ASHRAE Standard 169-2021, Climatic Data for Building Design Standards. This standard designates climate zones using annual average temperature and precipitation data from 1994 to 2019.

Energy intensity in buildings is the energy consumed per square foot of floorspace. We calculate space heating energy-intensity estimates for CBECS by dividing the consumption of major fuels (electricity, natural gas, district heat, and fuel oil) for space heating by the total floorspace of the building that uses one of those fuels for space heating in each climate zone.

Commercial buildings in cooler climate zones were both more likely to be heated and to heat larger portions of their floorspace. In the cold or very cold climate zone, 62% of buildings reported heating all of their floorspace, but in the hot or very hot climate zone, 40% of buildings reported heating all of their floorspace.

Natural gas is the predominant energy source used for space heating in U.S. commercial buildings, accounting for 73% of the 2,167 trillion British thermal units of major fuels consumed for space heating in 2018. District heat accounted for the next-highest percentage of U.S. commercial space heating (12%), followed closely by electricity (11%). Fuel oil accounted for 4% of U.S. commercial space heating energy consumption. An additional 558,000 buildings (11% of U.S. commercial buildings with space heating) use other sources that aren’t included in major fuels consumption, such as propane and wood, for space heating.

The mixed mild climate zone had the lowest share of natural gas consumed for space heating in U.S. commercial buildings (68%) and the highest share of district heat consumed for space heating (18%). The hottest climate zone had the highest share of electricity consumed for space heating (18%), and the coldest climate zone had the highest share of fuel oil consumed for space heating (6%).

In 2018, furnaces were the most common heating equipment reported for heated commercial buildings in the cold or very cold climate zone (44%) and in the cool climate zone (47%). In contrast, packaged heating units were the most common heating equipment in mixed mild (40%), warm (58%), and hot or very hot climate zones (70%) among buildings that reported using energy for heating.

CBECS is the only nationally representative survey that collects information about U.S. building characteristics and energy use in commercial buildings. CBECS publishes a variety of data including building size, activity, energy sources, energy end uses, operating hours, and more.

The CBECS survey process spans more than four years, from developing the sample frame and survey questionnaire to releasing data to the public. Our final 2018 CBECS data were released in December 2022.

Principal contributors: Zack Marohl, Stacy Angel

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Biden-Harris Administration Announces $150 Million to Strengthen Domestic Critical Material Supply Chains

Source: US Department of Energy

WASHINGTON, D.C. — In support of President Biden’s Investing in America agenda, the U.S. Department of Energy (DOE) today announced up to $150 million to advance cost effective and environmentally responsible processes to produce and refine critical minerals and materials here in the United States. The funding, provided by the Bipartisan Infrastructure Law, will help meet the growing demand for critical minerals and materials while reducing our dependence on offshore supplies. Critical minerals and materials are key to manufacturing clean energy technologies—such as solar panels, wind turbines, electric vehicles, and hydrogen fuel cells—that will help America reach the Biden-Harris Administration’s ambitious climate goals. This funding opportunity will create good-paying jobs and support communities across the country that historically have depended on mining and energy production, advancing the Administration’s efforts to maximize the benefits of the clean energy transition in every community. 

“The President’s Investing in America agenda is ramping up access and use of clean energy technologies which means increased demand for critical minerals and materials,” said U.S. Secretary of Energy Jennifer M. Granholm. “The investments announced today enhance national security by reducing our reliance on foreign sources—while strengthening an existing mining and energy workforce to develop sustainable sourcing for these vital materials right here in the U.S.A.” 

Critical Material Innovation, Efficiency, and Alternatives Funding Announcement 

According to the U.S. Geological Survey’s National Mineral Information Center, the United States has over 50 different critical minerals. The U.S. is completely reliant on foreign sources for 12 of these minerals and more than 50% dependent on foreign sources for more than 30 of them. The funding opportunity announcement (FOA) released today will help to build a secure, sustainable domestic supply of critical minerals from a broad range of sources across the United States, including recycled materials, mine waste, industrial waste, and ore deposits. Specifically, the FOA will support bench- and pilot-scale research, development, and demonstration projects for: 

  • Technologies or process improvements that develop new supplies of critical minerals and materials here at home;
  • Value-added products created from other materials that are part of the waste streams from which critical minerals and materials are extracted;
  • New, next-generation technologies to be used for lower cost, environmentally responsible extraction, production, separation, and processing of critical minerals and materials; 
  • Alternatives or substitutes for scarce critical minerals and materials that can be used as replacements in clean energy technologies; and
  • New or improved alternative energy technologies or designs that use materials that are more abundant in the United States. 

Read more details of this funding opportunity announcement. All questions must be submitted through FedConnect; register here for an account. The application deadline is November 10, 2023 at 3:00 p.m. ET. 

Societal Considerations and Impacts 

In alignment with the Biden-Harris Administration’s commitment to advance environmental justice and equity, funding applicants must carefully address the societal considerations and impacts of their proposed projects, emphasizing early and active engagement with communities.  

Applicants must explain how projects are expected to deliver economic and environmental benefits and mitigate impacts; conduct community and stakeholder engagement; incorporate diversity, equity, inclusion, and accessibility; and promote workforce development and quality jobs. Projects selected under this opportunity will be required to develop and implement strategies to ensure strong community and worker benefits, and report on such activities and outcomes. 

DOE’s Advancements in Critical Minerals and Materials 

Since January 2021, DOE’s Office of Fossil Energy and Carbon Management has announced an estimated $41 million in projects that support critical minerals and materials exploration, resource identification, production, and processing in traditional mining and fossil fuel-producing communities across the country. This total includes $16 million in Bipartisan Infrastructure Law funding for detailed engineering and cost studies toward a first-of-a-kind domestic facility that will extract and separate rare earth elements and critical minerals from unconventional sources like mining waste. This funding will create new opportunities to remediate land and water while generating rare earth elements necessary for a clean energy economy. 

FECM minimizes environmental and climate impacts of fossil fuels and industrial processes while working to achieve net-zero emissions across our economy. Priority areas of technology work include carbon capture, carbon conversion, carbon dioxide removal, carbon dioxide transport and storage, hydrogen production with carbon management, methane emissions reduction, and critical minerals production. To learn more, visit the FECM website, sign up for FECM news announcements, and visit the National Energy Technology Laboratory website. 

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In 2023, U.S. renewable diesel production capacity surpassed biodiesel production capacity

Source: US Energy Information Administration

September 5, 2023

In January 2023, U.S. production capacity of renewable diesel and other biofuels reached 3 billion gallons per year, surpassing U.S. biodiesel production capacity for the first time. Rising targets for state and federal renewable fuel programs and the renewal of biomass-based diesel tax credits are driving this growth in U.S. renewable diesel capacity.

We began collecting data about U.S. capacity of renewable diesel and other biofuels in 2021. Since 2021, renewable diesel and other biofuels production capacity has more than tripled in the United States. Over the same period, biodiesel capacity has declined 13%. Renewable diesel is a fuel that is chemically equivalent to petroleum diesel and nearly identical in its performance characteristics. The same is not true of biodiesel, which is chemically different from petroleum diesel.

Nationwide, overall biofuels production capacity—which includes renewable diesel, biodiesel, ethanol, and other biofuels—reached 23 billion gallons per year (gal/y) in January 2023, a 6% increase in total production capacity from January 2022. Fuel ethanol accounted for 78% of U.S. biofuel production capacity, renewable diesel and other biofuels accounted for 13%, and biodiesel accounted for 9%.

Between January 2022 and January 2023, the U.S. production capacity for producing renewable diesel and other biofuels increased by 1.25 billion gallons per year, a 71% increase from 2022. In January 2023, 11 states reported sites with renewable diesel and other biofuels production capacity, up from 6 states in 2022. An example of a state with new and growing capacity is Texas, which had no renewable diesel and other biofuels capacity in January 2022. By January 2023, Texas had 537 million gal/y of capacity, the second highest after Louisiana. Unlike ethanol and biodiesel, where states in the Midwest hold most of the national capacity, more than 60% of U.S. renewable diesel and other biofuels production capacity is on the Gulf Coast.

Biodiesel now accounts for the smallest share of U.S. biofuels capacity, 2.1 billion gal/y in January 2023, among the three categories we track. Biodiesel capacity declined by 169 million gal/y from January 2022 to January 2023. The Midwest has 70% of U.S biodiesel capacity, which is primarily in Iowa, Missouri, Illinois, and Indiana.

Fuel ethanol producers in the Midwest continue to hold the most capacity in the U.S. biofuels market. Fuel ethanol capacity increased by 283 million gal/y between 2022 and 2023. More than 90% of U.S. ethanol capacity is in the Midwest, where the feedstocks for ethanol (primarily, corn) are grown, mainly in Iowa, Nebraska, Illinois, and South Dakota.

On August 7, we updated three of our biofuels reports: our 2023 Fuel Ethanol Plant Production Capacity Report, 2023 Biodiesel Plant Production Capacity Report, and 2023 Renewable Diesel Fuel and Other Biofuels Plant Production Capacity Report. These reports contain our most up-to-date estimates of plant production capacity for the U.S. biofuels industry. The reports include biofuels production capacity for operating plants as of January 1, 2023, with the names of the reporting plants organized by state and region.

Principal contributors: Chris Buckner, Kimberly Peterson

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Biden-Harris Administration Announces $125 Million in Grid Resilience Grants for States and Tribal Nations to Modernize Electric Grid

Source: US Department of Energy

WASHINGTON, D.C. — As part of President Biden’s Investing in America agenda, today the U.S. Department of Energy (DOE) announced nine states and five tribal nations will receive a combined total of $125 million as the seventh cohort of Grid Resilience State and Tribal Formula Grants. Supported by the Bipartisan Infrastructure Law and administered by DOE’s Grid Deployment Office, these grants will help modernize the electric grid to reduce impacts of climate-driven extreme weather and natural disasters while also ensuring power sector reliability. This funding will enable communities to access affordable, reliable, and clean electricity while helping deliver on the President’s ambitious clean energy goals. 

“This year, the U.S. has already incurred $15 billion in extreme climate-related disaster costs, underscoring the urgent need to strengthen the grid to deliver dependable power supply to Americans,” said U.S. Secretary of Energy Jennifer M. Granholm. “Thanks to President Biden’s Investing in America agenda and its transformative investments, we are not only fortifying the nation’s electrical grid for the future but also empowering the American workforce, all while ensuring that the lights stay on in our communities.”  

This cohort of nine states and five tribes will receive a combined total of $125 million. Since May 2023, DOE has distributed more than $580.5 million in Grid Resilience State and Tribal Formula Grants thanks to President Biden’s Investing in America Agenda. 

  • Beaver Village will support a continuous supply of power to consumers through preventative maintenance and training for utility owners and operators. The grant funding will also be used to provide backup power in case of outages, reduce outage risks, and advance energy justice. (Amount: $112,917)
     
  • Chilkat Indian Village (Klukwan) will support continuous operations through preventative maintenance and grid resilience training and will reduce outage risks while reducing restoration times following a severe event. The grant funding will also be used to develop battery storage for critical facilities and reduce the energy burden to low-income and disadvantaged Tribal members. (Amount: $117,116)
     
  • Iowa Tribe of Oklahoma will install battery backup for critical care and emergency facilities and will reduce the overall cost of operations while increasing grid resilience. The grant funding will also be used to invest in clean energy and decarbonization solutions, improve the energy infrastructure through joint efforts with their electric cooperative utility, and increase the skilled Tribal workforce. (Amount: $927,979)
     
  • Jamestown S’Klallam Tribe will ensure critical community facilities that serve the Tribe are not impacted by extreme weather and other disruptive events and will address outdated or failing grid infrastructure. The grant funding will support investments in modern grid infrastructure and clean energy while enabling lower-cost energy to consumers. (Amount: $169,830)
     
  • Maryland will improve the resilience and reliability of the power grid, critical infrastructure, and essential services–especially in disadvantaged communities. Grant funding will also be used to invest in carbon-neutral energy technologies that can help the state meet greenhouse gas reduction goals, and to support workforce development for clean energy jobs. (Amount: $8.7 million)
     
  • Massachusetts will improve energy reliability and resilience while reducing the cost and number of outages for communities and underserved populations. The grant funding will support clean energy and decarbonization solutions, help advance environmental and energy justice priorities, and create good-paying jobs. (Amount: $9.2 million)
     
  • Mississippi will mitigate the risk of severe weather to critical facilities through investments in grid hardening and last-mile delivery solutions for low-income customers. The grant funding will support resilient infrastructure improvements and upgrades, development of microgrid and non-wired alternative projects, and growth of the skilled workforce for grid resilience activities. (Amount: $12 million)
     
  • Montana will improve the reliability and resilience of the electric grid by reducing the vulnerability to disruptive events and the consequences of outages to community facilities and critical infrastructure. The grant funding will be used to limit wildfire ignition from transmission and distribution equipment and increase the skilled workforce in Montana to operate and maintain resilience measures. (Amount: $14 million)
     
  • Nebraska will strengthen existing equipment and harden electric system components to withstand extreme heat, cold, and storms. The grant funding will also be used for adaptive technologies that support real-time monitoring. It will create good paying jobs and training opportunities for electric energy technology workers and ensure that benefits are equitably distributed to Nebraskans, including underserved communities. (Amount: $10.8 million)
     
  • New Jersey will ensure that critical community facilities are not impacted by extreme weather events and that operations for essential government functions can be maintained during disruptive outages. The grant funding will also be used to increase the skilled workforce to operate and maintain resilience measures and to support modernization of grid infrastructure consistent with the New Jersey Energy Master Plan and the Justice40 Initiative. (Amount: $12.8 million)
     
  • New York will improve the resilience of the electric grid against disruptive events and will invest in decarbonization solutions and other technologies that support social benefits and minimize system costs. The grant funding will support energy systems that benefit disadvantaged communities, reduce the energy burden to disadvantaged communities, and increase the skilled workforce. (Amount: $23.8 million)
     
  • United Keetoowah Band of Cherokee Indians in Oklahoma will ensure that the critical Tribal facilities serving the Tribe’s citizens are not impacted by disruptive events such as extreme weather through efforts to modernize the grid, and implement improved controls, automation, and communications to support adaptive grid operations. The grant funding will also be used to enable access to lower cost energy and increase the skills of the Tribal workforce to operate and maintain grid resilience measures. (Amount: $550,543)
     
  • Washington will reduce the frequency, duration, and impact of outages while enhancing resilience in historically disadvantaged communities. The grant will help build a community of practice and maximize project benefits by identifying pathways for scaling innovations. The grant funding will also strengthen prosperity by making well-paying, safe jobs accessible to all workers and ensuring investments have a positive effect on quality job creation and equitable economic development. (Amount: $23.4 million)
     
  • Wyoming will increase grid resilience and reliability by improving weatherization, wildfire mitigation, and system redundancy. The grant will be used to replace deteriorating infrastructure, improve planning, and harden the system. The grant funding will also be used to advance energy justice by mitigating costs to small rural customers and improve public safety through grid improvements. (Amount: $8.1 million) 

Over the next five years, the Grid Resilience State and Tribal Formula Grants will distribute a total of $2.3 billion to States, Territories, and federally recognized Tribes, including Alaska Native Regional Corporations and Alaska Native Village Corporations, based on a formula that includes factors such as population size, land area, probability and severity of disruptive events, and a locality’s historical expenditures on mitigation efforts. The States, Territories, and Tribes will then award these funds to eligible entities to complete a diverse set of projects, with priority given to efforts that generate the greatest community benefit while providing clean, affordable, and reliable energy.   

Grid Resilience State and Tribal Formula Grant recipients are being announced on a rolling basis as applications are received. Applications for the fiscal year (FY) 2022 and FY 2023 are now closed.  

Learn more about the Grid Deployment Office.

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Good Jobs with Good Pay and Benefits are Key to Building the Clean Energy Future

Source: US Department of Energy

by Betony Jones, Director, Office of Energy Jobs, U.S. Department of Energy

On Labor Day, we recognize the American labor movement and the contributions of working people toward the prosperity and well-being of our country. Unions gave us the weekend, the 40-hour workweek, and, as President Biden says, unions built the middle class. Now, through the Inflation Reduction Act (IRA), Congress and President Biden are acknowledging the critical role of workers in building us a low-carbon future—because for the first time ever, labor standards are attached to tax credits. By basing new tax credits on good wages and career-track training, the well-being of workers will be baked into the foundation of the new clean energy economy. By ensuring broadly shared prosperity from these historic climate investments we can—and will—defeat the climate crisis.

President Biden has made game changing incentives available for companies to produce and invest in clean energy projects and infrastructure in the United States. But that’s not all—those incentives quintuple in value if those companies also agree to strong labor standards for their workers. This means we’re not just accelerating clean energy deployment, and we’re not just creating jobs—we’re creating good-paying jobs with good benefits that can launch families into the middle class. Credits like these will help accelerate the American clean energy economy; companies that want to scale production (and profits) fast are already taking advantage of the base credits, and any company that wants to be an industry leader isn’t going to say no to five times more.

It wasn’t always like this. In 2000, I was an intern at the White House working in the Office of Science and Technology Policy. At the time, I believed in the power of policy to drive down emissions and fight the climate crisis, but the global conversations around climate change were chaotic and support for federal climate policy was lacking here in Washington. I had a realization that to build the political will to address the looming climate crisis, the solutions would have to create sound investment opportunities, good jobs, and broadly shared and equitable economic prosperity.

Before I returned to DC to work in the Biden Administration, I spent 20 years working toward that vision at the state and local level. States where workers saw their future in a low carbon economy adopted stronger climate policy and built more renewable energy projects. Cities that built climate action plans around equity and good jobs garnered more public support and funding for climate solutions. Since 2000, a lot has changed, but my belief that a strong working class is the key to fighting the climate crisis has only grown stronger.

With the new prevailing wage and apprenticeship bonus credits in the IRA:

  • Laborers and mechanics will get paid “prevailing wages,” which are geographically- and occupationally-specific pay and benefits that have been determined by the Department of Labor to ensure that workers employed on projects receiving federal investments earn middle class incomes.
  • Companies will work alongside unions and other workforce partners to provide registered apprenticeship opportunities. Registered apprenticeship programs allow workers to earn-while-they-learn and provide pathways to good, middle-class, family-supporting jobs, bringing opportunities like home ownership back into reach for young people and families. For Equal Pay Day last year, I spoke to two women who were each able to purchase their first homes as apprentices with the SMART union that represents sheet metal workers. The national average salary for workers who complete a registered apprenticeship is $72,000 plus benefits in their first year after graduating and, over their career, workers who complete an apprenticeship earn $300,000 more than workers who do not. Registered apprenticeships can also be a pathway for equity and ensuring diverse populations and underrepresented communities have access to high-quality training and career pathways.

The IRA has set us up to do big things— new DOE analysis shows that the IRA (combined with its predecessor, the Bipartisan Infrastructure Law) are positioning the U.S. to meet or even exceed some of its most ambitious climate goals, including reducing U.S. net greenhouse gas emissions 40% below 2005 levels and doubling the share of American electricity generated by clean sources to 80% by 2030. Workers are the key to building our clean energy future, and by investing in the next generation of electricians, laborers, operating engineers, ironworkers, construction workers and more, we’ll be thanking the American labor movement not only for the weekend, but for maintaining a stable climate and a livable planet.  

Betony Jones is the Director of the Office of Energy Jobs, where she oversees jobs and workforce development strategies across the department as well as engagement with organized labor and other stakeholders to ensure that DOE’s policies and program implementation result in high-quality jobs and economic equity. Prior to joining the Office of Energy Jobs, Jones was a Senior Advisor on Workforce for DOE’s Office of Energy Efficiency and Renewable Energy. Jones began her career working on climate science in the White House Office of Science and Technology policy in the Clinton Administration, where she saw the complex economy-wide nature of climate change as both a challenge and an opportunity. From there, she spent 20 years directing implementation and conducting policy research to demonstrate the employment and economic impacts and opportunities associated with climate action, including as Associate Director of the Green Economy program at the University of California Labor Center and as Founder and CEO of Inclusive Economics, a national strategy firm working at the intersection of labor, workforce, and clean energy. She has published dozens of papers and reports on these topics, and is a nationally-recognized expert in labor-climate issues. Jones earned her Masters from the Yale School of Forestry and Environmental Studies and a B.S. degree from the University of Michigan. 

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Biden-Harris Administration Announces $15.5 Billion to Support a Strong and Just Transition to Electric Vehicles, Retooling Existing Plants, and Rehiring Existing Workers

Source: US Department of Energy

WASHINGTON, D.C. — As part of President Biden’s Investing in America agenda, the U.S. Department of Energy (DOE) announced a $15.5 billion package of funding and loans primarily focused on retooling existing factories for the transition to electric vehicles (EVs)—supporting good jobs and a just transition to EVs. This includes making available $2 billion in grants and up to $10 billion in loans to support automotive manufacturing conversion projects that retain high-quality jobs in communities that currently host these manufacturing facilities. In the Domestic Conversion Grant Program, higher scores will be given to projects that are likely to retain collective bargaining agreements and/or those that have an existing high-quality, high-wage hourly production workforce, such as applicants that currently pay top quartile wages in their industry. The Department also announced a Notice of Intent to make available $3.5 billion in funding to expand domestic manufacturing of batteries for electric vehicles and the nation’s grid, as well for battery materials and components currently imported from other countries. The Notice of Intent outlines how DOE will support growing domestic industry while also supporting manufacturing workers and promoting equity and environmental justice. Together, these federal investments underscore President Biden’s deep commitment to helping retain and expand high-paying manufacturing jobs while empowering workers to have a strong voice in and capture the economic benefits of the clean energy transition. The President’s Investing in America agenda is also enhancing our national security by building up the domestic supply chains necessary to reach the Administration’s ambitious climate goals. 

“President Biden is investing in the workforce and factories that made our country a global manufacturing powerhouse,” said U.S. Secretary of Energy Jennifer M. Granholm. “Today’s announcements show that President Biden understands that building the cars of the future also necessitates helping the communities challenged by the transition away from the internal combustion engine.”   

Depending on their capital needs, manufacturers can apply to receive assistance via financial grants through DOE’s Office of Manufacturing and Energy Supply Chains (MESC) or preferable debt financing through DOE’s Loan Program Office.

Converting and Retrofitting America’s Manufacturing Plants
DOE today announced a new $2 billion funding opportunity to spur the conversion of long-standing facilities to manufacture electric vehicles and components. Supported by President Biden’s Inflation Reduction Act, the Domestic Manufacturing Conversion Grants for electrified vehicles program, will provide cost-shared grants for domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles. This program will expand manufacturing of light-, medium-, and heavy-duty electrified vehicles and components and support commercial facilities including those for vehicle assembly, component assembly, and related vehicle part manufacturing.  The program aims to support a just transition for workers and communities in the transition to electrified transportation, with particular attention to communities supporting facilities with longer histories in automotive manufacturing. Preference will also be given to projects that commit to pay high wages for production workers and maintain collective bargaining agreements. 

Projects selected for this funding must also contribute to the President’s Justice40 Initiative, which aims to advance diversity, equity, inclusion, and accessibility in America’s workforce and ensure every community benefits from the transition to a clean energy future. This funding supports goals and targets detailed in the 100-day reviews under Executive Order 14017 “America’s Supply Chains and the Federal Consortium for Advanced Batteries’ National Blueprint for Lithium Batteries,” which provides a path to building a strong domestic battery supply chain and accelerating the development of a robust, secure, and equitable domestic industrial base by 2030. 

Concept papers are due October 2, 2023, and the deadline for full applications is December 7, 2023. Learn more about this funding opportunity. 

Leveraging New Loan Authority for Automotive Manufacturing Conversion Projects
DOE is also making up to $10 billion in loan authority available for applications under the Advanced Technology Vehicles Manufacturing Loan Program for automotive manufacturing conversion projects that retain high-quality jobs in communities that currently host manufacturing facilities. Examples include retaining high wages and benefits, including workplace rights, or commitments such as keeping the existing facility open until a new facility is complete, in the case of facility replacement projects. For projects that seek financing to convert or directly replace an existing factory that has high-quality jobs, DOE will assess the projected economic impacts of the facility conversion relative to the existing facility, including factors such as contribution to the local economy, employment history, anticipated employment, and duration of its existence. Interested applicants can learn more about how to apply for these projects here. 

Bolstering American Battery Manufacturing, Strengthening Domestic Supply Chains
DOE also announced today its intent to invest approximately $3.5 billion to boost production of advanced batteries and battery materials that are critical to rapidly growing clean energy industries of the future, including electric vehicles and energy storage. This notice of intent—made possible by the President’s Bipartisan Infrastructure Law—represents the second round of funding for battery materials processing and battery manufacturing grants to support the creation of new, retrofitted, and expanded domestic commercial facilities for battery materials, battery components, and cell manufacturing.  The Notice of Intent outlines how round II will support growing domestic industry, supporting manufacturing workers, and promote equity and environmental justice.   The program will support communities with experienced auto workers and a history of producing vehicles, applicants with strong workforce practices, and applicants who plan to create high-quality jobs. 

Today’s announcements were made possible by President Biden’s Investing in America agenda, which is growing the American economy from the bottom up and middle-out by rebuilding our nation’s infrastructure, driving over $500 billion in private sector manufacturing and clean energy investments in the United States, creating good-paying jobs and supporting collective bargaining, and building a clean-energy economy that will combat the climate crisis and make our communities more resilient. 

Both the conversion grant funding opportunity and battery manufacturing notice of intent will be administered by MESC. Learn more about MESC’s mission to strengthen and secure manufacturing and energy supply chains needed to modernize the nation’s energy infrastructure and support a clean and equitable energy transition. Conversion Project loans are made available by ATVM, administered by LPO. Learn more about ATVM projects and eligibility requirements. 

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U.S. gasoline prices are on the rise heading into Labor Day

Source: US Energy Information Administration

August 31, 2023

Data source: U.S. Energy Information Administration, Gasoline and Diesel Fuel Update, and U.S. Bureau of Labor Statistics (BLS)
Note: Weekly data reflect U.S. average regular gasoline retail price for all formulations. Real price is calculated using Consumer Price Index from BLS.

On the Monday before the Labor Day weekend, August 28, 2023, the retail price of regular gasoline averaged $3.81 per gallon (gal) across the United States. Over the past five weeks, oil production cuts by Saudi Arabia, low U.S. gasoline inventories, and announced refinery maintenance in the Northeast have increased the regular gasoline retail price by 6%, or 22 cents/gal.

According to our Gasoline and Diesel Fuel Update, after adjusting for inflation (real terms), retail gasoline prices going into this Labor Day weekend were 4%, or 14 cents/gal, lower than last year.

Recent production cuts by Saudi Arabia and other OPEC+ members are putting upward pressure on crude oil prices (the largest component of the gasoline price). Production cuts by OPEC+ members in April did not affect crude oil prices much because concerns about slowing economic growth drove expectations that crude oil demand would remain steady or decline. This time, successive rounds of cut announcements beginning in June and recent data showing improving economic conditions in the United States are raising the price of crude oil.

Ahead of this Labor Day, Hurricane Idalia is affecting U.S. Gulf Coast production and pipeline facilities. Hurricane-induced facility closures can have uncertain effects on the retail price of gasoline, and the scale of the impact relates to the duration and severity of the closures.

Limited gasoline supplies have also contributed to higher gasoline prices. Refinery outages caused by extreme weather and refinery maintenance originally scheduled for last year have kept U.S. gasoline inventories below the previous five-year average since March 2022. Most recently, we expect planned maintenance for Irving Oil’s refinery (320,000 barrels per day [b/d]) in Saint John, New Brunswick, and Monroe Energy’s refinery (185,000 b/d) in Trainer, Pennsylvania, which will run from mid-September to mid-November, to keep gasoline supplies limited, especially in the Northeast. The East Coast is the highest-consuming gasoline market in the United States, but it has relatively little refinery capacity.

U.S. gasoline prices vary regionally, reflecting local supply and demand conditions, different fuel specifications required by state laws, and taxes. Regional gasoline prices are usually the highest on the West Coast due to the region’s limited connections with other major refining centers (including the Gulf Coast), tight local supply and demand conditions, and requirements for gasoline specifications that make gasoline more costly to manufacture. West Coast prices as of August 28 were $4.88/gal, up 2%, or 10 cents/gal, from the same time last year. The Rocky Mountains region faces similar logistical constraints as the West Coast, although overall supply and demand in the region are both lower. Rocky Mountain gasoline retail prices averaged $3.98/gal, a 1%, or 4 cents/gal, decrease over 2022.

The Gulf Coast accounted for 54% of the country’s total refining capacity as of January 2023, and it produces more gasoline than it consumes. As a result, the price of gasoline on the Gulf Coast is often the lowest in the United States. On August 28, the average retail gasoline price for the Gulf Coast was $3.38/gal, up 1%, or 2 cents, from the same time last year.

On the East Coast, retail gasoline prices were $3.64/gal on August 28, down 1%, or 4 cents, compared with the same time last year. Midwest prices decreased 1%, or 4 cents, to $3.68/gal.

Principal contributor: Alex de Keyserling