Svend Brandt-Erichsen Comments on Impact of Proposed Climate Deal
Svend Brandt-Erichsen was quoted in the Bloomberg Law article “Climate Deal Marks Contentious Federal Fossil Fuels Commitment.” The article provides an overview of the impact the tax and climate deal struck by Sens. Joe Manchin (D-W.Va.) and Chuck Schumer (D-N.Y.) would have if passed. While the overall effect of the legislation would be to promote renewable energy development, experts forecast that it also would result in an increase in federal oil and gas leasing in the next decade.
The proposed bill would tie wind and solar development on federal lands to federal oil and gas lease sales. That portion of the bill could have a negative impact on the Biden administration’s plans to expand renewable energy on federal lands and waters and complicate the administration’s goal of decreasing oil and gas production that contributes to climate woes.
Discussing the current leasing provision in the bill, Svend said it “introduces new uncertainty for renewables development on federal lands because the timing of construction of new wind and solar projects often depends on deadlines set for tax reasons and by electric power contracts.” He added that the possibility that issuance of a right-of-way must wait for an oil and gas lease sale to occur “adds another risk to renewable development on federal lands and may discourage some investors.”