• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 9 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 hours CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 7 days Wasting money down under
  • 6 hours If hydrogen is the answer, you're asking the wrong question
  • 1 day Natural gas mobility for heavy duty trucks
  • 1 day Ocean Heat Could Supply Endless Clean Energy
  • 6 days Energy and food crisis will lead to riots in Europe
  • 8 days How Far Have We Really Gotten With Alternative Energy
ESG Loan Bubble Close To Bursting

ESG Loan Bubble Close To Bursting

Sustainability-linked loan issuance in the…

Democrat Clean Energy Program Doesn’t Include Natural Gas

A fact sheet released by the Democrats on the Energy and Commerce Committee on Thursday included a plan to pay electric utilities to generate more power from clean sources.

But that plan, dubbed the Clean Electricity Payment Program, won’t include electricity sourced from natural gas—a far cleaner alternative to coal or even crude oil.

Natural gas won’t be included in that 80%, because according to the fact sheet, the law spells out a .10 metric tons of Co2e per MWh rate in order to qualify for the subsidies—a level that is so low that utilities couldn’t even hope to achieve it through natural gas sources.

The program would give the grants to electricity providers who increase the amount of energy from clean sources by 4% from the previous year.

But it’s not just about carrots.

Conversely, the stick in this scenario is that electricity providers who fail to ratchet up clean energy by 4% in a given year will owe the Energy Department some money.

The goal of what would be a $150 billion program is to have 80% of all power generated in the United States come from “clean power” by 2030. The Democrats hope to include the payment program in the $3.5 trillion spending bill.

Natural gas won’t be included in that 80%, because according to the fact sheet, the law spells out a .10 metric tons of Co2e per MWh rate in order to qualify for the subsidies—a level that is so low that utilities couldn’t even hope to achieve it through natural gas sources.

The program would give the grants to electricity providers who increase the amount of energy from clean sources by 4% from the previous year.

But it’s not just about carrots.

Conversely, the stick in this scenario is that electricity providers who fail to ratchet up clean energy by 4% in a given year will owe the Energy Department some money.

The program would start in 2023 and run to 2030.

Natural gas sourced 40% of all 4.12 trillion kilowatt hours of electricity generation in the United States last year, according to the Energy Information Administration, with coal-fired electricity accounting for 19%. Nuclear and renewables accounted for 20% each.

The program is a critical part of the budget reconciliation bill.

ADVERTISEMENT

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:


To read the rest of this article Start a FREE subscription to our premium publication

Oil & Energy Insider - 14 day free trial

14 day FREE trial
A FREE Subscription Includes:
  • Investment advice normally reserved for hedge fund clients.
  • Market & sector research not available anywhere else.
  • Strategic advice from corporate & military intelligence analysts.
  • 9 Weekly Investment / intelligence reports.
  • Full access to all previous reports.
  • 14 days risk free trial.
Get FREE access to our research for 14 days

An essential resource for all investors in the energy sector whether you're a trader, fund manager or individual investor - this inside look at the energy markets is unlike any other report or service currently available.



EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News