Twice a month, we’re compiling the most relevant news stories from diverse sources online, connecting the latest environmental and energy economics research to global current events, real-time public discourse, and policy decisions. Keep reading, and feel free to send us your feedback.
Here are some questions we’re asking and addressing with our research chops this week:
How will the US electric grid evolve as the nation continues to decarbonize?
The Federal Energy Regulatory Commission (FERC), the US agency that regulates the transmission of electricity across states, has issued two rules that could accelerate the development of new power lines and the expansion of transmission capability. Expanded electricity transmission is crucial to the US clean energy goals that have deadlines of 2035 and 2050. “Achieving net-zero emissions efficiently by 2050 will depend on increasing transmission capacity by at least 150 percent and perhaps by as much as 400 percent in less than three decades,” says Richard Schmalensee, a former chair of the board of directors at Resources for the Future (RFF) and a former professor and dean at the Massachusetts Institute of Technology. In the latest issue of Resources magazine, which was released last week, Schmalensee discusses potential changes to planning and permitting transmission projects that could help the United States expand national transmission capacity more quickly. The future of the US electric grid is the theme of the new magazine, with RFF scholars examining the evolution of US electricity markets, the speed of solar energy deployment, and more. Check out the online edition of the magazine here.
As global sales of electric vehicles (EVs) continue to grow, what’s the on-road experience like for EV drivers?
One out of every five vehicles sold in 2024 will be an EV or plug-in hybrid, according to a new report. By 2035, EVs and hybrids could account for two-thirds of all vehicle sales. About as many EVs and plug-in hybrids were sold in the first three months of 2024 as were sold in 2020. Still, “we’re just at the beginning of the EV trajectory,” says Kristin Hayes, senior director of research and policy engagement at RFF. In a new blog post, which caps a multipart podcast series about EVs on Resources Radio, Hayes discusses insights from the collection of episodes and her personal experience owning an EV. “I certainly feel like [owning an EV that rates] a solid 7 [out of 10] for a road trip, and a 9.5 for day-to-day experience, is well worth the repeat purchase,” Hayes says in the final episode in the series.
How do projections of vehicle markets set expectations for policies that aim to electrify the transportation sector?
This spring, the US Environmental Protection Agency released a regulation that will limit greenhouse gas emissions from heavy-duty vehicles such as big rigs and school buses. Heavy-duty vehicles produce 25 percent of all emissions from the US transportation sector, although these vehicles make up only 6 percent of vehicles on the road. The new regulation calls for auto manufacturers to reduce emissions for most new models beginning in 2027. While the regulation may help accelerate the electrification of heavy-duty vehicles, projections about the speed of the transition may be too rosy due to limitations in current approaches to modeling. In a new article on the Common Resources blog, RFF scholars Nafisa Lohawala, Joshua Linn, and Beia Spiller discuss potential sources of inaccuracy in some of the more prominent models and the importance of sophisticated models in designing policy for electrification. “Accurate models and forecasting in this sector are essential to understanding market transitions, determining the appropriate stringency of regulatory standards, and ensuring compliance with international climate pledges,” they say.
Expert Perspectives
In Focus: Clean Energy and the US Electric Grid
Some estimates predict that the US electric grid will need to transport three times as much electricity by 2050 to meet growing electricity demand. In light of the two new rules that have been finalized by the Federal Energy Regulatory Commission, RFF Senior Research Associate Molly Robertson discusses the importance of transmission infrastructure for a cleaner electric grid and policy solutions that can help connect people to clean electricity.
Resources Roundup
Engaging Local Communities in Collaboration on Critical Mineral Resources
Growing demand for electric vehicles has increased demand for batteries and the critical minerals, such as lithium, that are essential to producing these batteries. But many deposits of critical minerals are near local communities or Indigenous lands; for example, 79 percent of US lithium reserves are within 35 miles of Native lands. On June 6, RFF will host a webinar about equitable engagement between governments, mining companies, and communities near deposits of critical minerals, along with policies that can improve collaboration and outcomes for stakeholders. RSVP for the webinar here.
Providing Affordable Energy for Low-Income Communities
Energy insecurity affects 25 percent of households in the United States, and households that identify as Black or Hispanic face energy insecurity at disproportionately high rates. These households often struggle to pay energy bills, forego other basic needs so they can afford energy bills, or keep their homes at unsafe temperatures to reduce these bills. City leadership, nonprofits, researchers, and communities in Detroit have collaborated to develop new services that can improve energy efficiency and affordability for low-income households in the city. RFF hosted a virtual panel discussion yesterday about Detroit’s efforts and how public-private partnerships can help advance community-centered climate solutions. “We need to think about how programs can work better together,” said Heather Zygmontowicz, the chief of special housing programs and strategic implementation for the city of Detroit.
Unpacking New Rules for Electricity Transmission from the Federal Energy Regulatory Commission
Earlier this month, the Federal Energy Regulatory Commission passed a pair of rules that could help facilitate the expansion of electricity transmission in the US electric grid. The grid likely will need to transport much more electricity as the nation decarbonizes, given the addition of renewable energy generation and the electrification of technologies that previously were powered by fossil fuels. RFF hosted a panel of experts yesterday to discuss the commission’s new rules and the implications of these rules for the grid. “Everywhere will be affected by this to some extent,” said Terri Eaton, senior director of federal regulatory affairs at Xcel Energy. “I think the areas that will be most affected by this will be the Southwest and the Southeast.”
Reviewing Recent Regulations on Power Plant Pollution
Last month, the US Environmental Protection Agency released four regulations on pollution from fossil fuel–fired power plants. The headline rule requires existing coal-fired power plants and new natural gas–fired power plants to reduce greenhouse gas emissions; the other three rules target specific pollutants from coal-fired power plants. In a new blog post, RFF Government Affairs Director Brad Harris reviews the four rules, synthesizing a recent webinar that RFF hosted to analyze the rules. “These rules have the potential to be the most impactful action on emissions from the electricity sector since the passage of the Inflation Reduction Act in 2022,” says Harris.
How Markets for Wood Products Affect Land Use Change
US forests are a crucial contributor to the nation’s ability to capture carbon dioxide from the atmosphere. The more land that is occupied by forests, the more carbon dioxide that trees and forest soils can capture and store—which helps the United States approach net-zero emissions, the nation’s goal for 2050. In a new working paper, RFF Nonresident Senior Fellow David N. Wear investigates factors that affect the amount of land in the southern United States that’s occupied by forests by modeling various policies and their effects on land use. “My findings indicate that enhancing [revenues for wood products] would be more effective than tree-planting subsidies at expanding the area of forests in the US South,” says Wear.
#ChartOfTheWeek
Animation/Figure: Union of Concerned Scientists. Data: US Energy Information Administration.
Solar and wind energy are generating a growing percentage of electricity in the United States. Our (animated) chart this week illustrates the increase in this percentage since 2001. Wind energy generates more electricity than solar energy in the United States, and electricity generation from both wind and solar is projected to grow in 2024. Federal tax incentives for renewable energy projects, supportive state and local policies, and competitiveness of renewable energy technologies in the market likely have contributed to this growth.
