Allison BarnetteInvestors in conventional energy and construction engineers may find temporary relief in federal building projects—at least for now. The Department of Energy (DOE) announced a one-year pause on a Biden-era rule requiring a 90% reduction in on-site fossil fuel use by 2029 and a full phase-out by 2030.
The previous rule was set to be enforced May 1, so contractors would have been making final requests for any special allowances. Now, DOE says the petitions are not necessary and will not be processed. According to the DOE, the pause is intended to avoid regulatory burdens.
The one-year stay aligns with President Trump’s executive order issued on his first day in office that promotes fossil fuels over sustainable energy sources.
Critics say it could slow the clean energy movement, but proponents say the stay could lower costs incurred through the former compliance requirements. Traditional fossil fuel-powered HVAC systems may be more familiar and cheaper to install. There are more knowledgeable contractors available to install these systems, so the bidding process could bring down costs. It also opens the doors for firms not as familiar with green technologies.
While investors in oil and gas may benefit in the near term, engineers and developers offering hybrid solutions could also gain during the pause. Those utilizing a more efficient fossil-powered solution or providing retrofit situations for later updates would fit this year’s pause with possible future changes in the DOE’s stance. The current stay is in effect for one year.
Photo Courtesy Pixabay
