The American clean energy sector has a new champion, the presidential candidate, Kamala Harris. Yet the issue of electric car and solar panels divide very much the country in two distinctive fields. Renewable Matter has interviewed Mona Dajani, partner and the Global Co-Chair of the Energy, Infrastructure and Hydrogen teams and Co-Chair of the law firm Baker Botts Energy Sector worldwide, to discuss the potential impact of a Harris presidency. Dajani has led numerous financing and acquisition/disposition and project development/financing transactions involving solar, wind, hydrogen, carbon capture, hydroelectric, geothermal, biomass, waste to energy and net-zero disruptive technologies such as connectivity, autonomous driving and e-mobility as well as gasification, transmission lines, and oil & gas pipelines.
How much enthusiasm has Kamala Harris's candidacy generated in the energy sector?
There's tremendous enthusiasm because her background and political record are seen as even more progressive than Biden's. That's one of the reasons why there's a lot of excitement about her candidacy in the energy space. Another reason is her proven track record. Biden has done so much for the United States and clean energy, especially with landmark initiatives like the Inflation Reduction Act and other laws promoting clean energy and infrastructure. As the current Vice President, she is expected to continue or expand on these initiatives. Harris has also promoted environmental justice, both during her time in California and her presidential bid in 2020 when she supported the Green New Deal. Although she modified her position after becoming Biden's VP, she has endorsed the IRA. Her background suggests she will continue and expand Biden's initiatives. For example, she co-sponsored the Green New Deal and the Climate Equity Act of 2020.
Which environmental group has endorsed her so far?
Prominent environmental groups like the Sierra Club and the Natural Resource Defense Council have endorsed her campaign based on her clean energy advocacy. As the District Attorney in California, she created an environmental justice unit to address environmental crimes affecting San Francisco's poorest residents, prosecuted companies for hazardous waste law violations, and secured an $86 million settlement from Volkswagen for the emissions scandal. As Vice President, she has pushed for a $20 billion investment in the EPA greenhouse gas reduction fund to support disadvantaged communities affected by climate change. She frequently highlights the Inflation Reduction Act and its role in creating clean energy jobs and improving energy efficiency. During COP 28 in Dubai, she was the highest-ranking US official committing to triple renewable energy by 2030 and doubling energy efficiency.
USA is more divided than ever. Investing in renewable energy is also a dividing argument. Can Harris overcome this entrenchment?
The majority of Americans think the US should prioritize the development of renewable energy, but many are not ready to stop using fossil fuels altogether. Renewable energy sources like wind, solar, and green hydrogen are expected to make up a growing share of the US energy supply relative to fossil fuels. Last year alone, renewable energy sources, including wind, solar, and hydropower, generated more electricity than coal. The Inflation Reduction Act has accelerated the energy transition. While the public prioritizes renewable energy, there is a delicate balance regarding phasing out oil, coal, and natural gas. Over 68% of Americans believe the US should continue using fossil fuels along with renewables. Republicans and Democrats have different views on the role of fossil fuels. Republicans generally support a mix of fossil fuels and renewables, while Democrats lean towards ending the use of fossil fuels. However, both parties are seeing more positive impacts from renewable energy, such as job creation and environmental benefits. Most of the projects benefiting from the IRA are in Republican states, creating jobs and increasing energy independence from foreign sources. Clean energy is seen as a way to improve air and water quality, reduce extreme weather events, and enhance the reliability of the electrical grid. Republican support for increasing wind, solar, and storage continues, though differences remain regarding the role of fossil fuels. A Harris administration would likely see strong support for renewables and favorable partisan differences aligning more with the Democratic view.
If Kamala Harris is elected, what would be the priority investments in the energy sector?
If Harris is elected, she will likely continue Biden's significant public investments in climate and energy. The bipartisan infrastructure law and the Inflation Reduction Act are the largest ever investments in climate action, introducing and expanding grants, loans, tax incentives, and other programs to accelerate clean energy deployment, resilience, and innovative technologies. These investments aim to cut greenhouse gas emissions by half by 2030 and reach net zero by 2050. The policies have spurred over $866 billion in new investments in clean energy and manufacturing, creating economic opportunities and jobs. The IRA covers a wide range of financing programs to catalyze private investments in clean energy projects. There are tax credits for electricity generation projects, clean energy manufacturing, EV charging stations, and many other clean energy projects. The law also contains provisions for direct pay and transferability, expanding eligibility to tax-exempt entities like cities, states, and nonprofit organizations. The focus is on reducing energy consumption and complying with requirements, without favoring specific technologies.
We are seeing massive investment in electrification. Is there also momentum for investment in hydrogen in the US right now?
Yes, there is a significant push for hydrogen, supported by the Department of Energy with $7 billion in funding for clean hydrogen hubs as part of the bipartisan infrastructure law. This represents the largest public investment in US hydrogen to date, with a significant impact expected. Hydrogen is being considered for long-haul trucking, heavy-duty transportation, and even oil refining to lower sulfur content and reduce emissions. Major energy companies and utilities are actively working on clean hydrogen projects across the US and globally, driven by the belief in the technology and the desire for market share.
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Cover image: Kamala Harris photographed by Gage Skidmore, via Flickr