Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions (2024)

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Summary When it passed in 2022, the Inflation Reduction Act (IRA) revolutionized U.S. cli- mate and energy policy as the largest legislative action in the nation’s history to mitigate climate change, with anticipated public support for clean energy invest- ments ranging from almost $400 billion to more than $1 trillion over the coming decade. The IRA is complemented by the bipartisan Infrastructure Investment and Jobs Act (IIJA, November 2021; more than $62 billion in appropriations for Depart- ment of Energy [DOE] climate and energy programs); CHIPS and Science Act (CHIPS, August 2022; $54.2 billion in appropriations for domestic semiconductor produc- tion and $170 billion in 5-year authorizations for research and development); and a number of executive orders and regulations from the Biden administration, including Executive Order (EO) 14008, which, among other things, established the Justice40 Initiative. As discussed in Chapter 1, these amounts are not necessarily additive considering that IRA, IIJA, and CHIPS do not use equivalent funding mech- anisms. States, localities, and other entities have also enacted policies to advance deep decarbonization, such as California’s zero-emissions vehicles mandate and actions of state policy makers in Texas supporting the rapid growth of wind farms there. Most modeling analyses indicate that this policy portfolio will cause a dra- matic shift in the trajectory of U.S. greenhouse gas (GHG) emissions and place the nation close to a 30-year path to net-zero emissions, but only if formidable chal- lenges of innovation and implementation can be overcome and the policy portfolio produces as designed. The stakes could not be higher. Most nations of the world have announced a goal of zero net GHG emissions by midcentury because of overwhelming scientific evidence that climate change is dangerous, and human caused. Annual global net emissions must decline to zero in approximately 30 years to keep Earth’s mean surface temperature from climbing above the Paris Agreement’s preferred target of 1.5°C (reaffirmed at COP 27 in November 2022), and in so doing prevent the most serious effects of accelerating climate change. The United States has the largest cumulative, and twelfth largest per capita, GHG emissions of any coun- try, and the second largest annual emissions (after China), but until passage of the IRA, the United States was not at the vanguard of national actions to combat climate change. 5 A00026--Accelerating Decarbonization in the United States_Summary.indd 5 4/13/24 10:29 AM 

A C C E L E R AT I N G D E C A R B O N I Z AT I O N I N T H E U N I T E D S TAT E S Successful implementation of current U.S. policy would establish the nation as the international leader in the fight against climate change and would be vital to achieve global emissions reductions. The policy portfolio also has additional objectives that reach far beyond climate mitigation. It is intended to improve the lives of ordinary people by increasing the number of high-paying domestic jobs, increasing U.S. eco- nomic competitiveness, revitalizing our energy and industrial sectors, eliminating the environmental injustices in our current energy system, putting a fair and equitable system in its place, and improving people’s health. This report offers an assessment of what current federal, state, and local climate and energy policies could accomplish, together with actions and implementation by the private sector and civil society. It focuses specifically on gaps in the current policy portfolio and barriers to implementation that would prevent the nation from attaining its climate, economic, and humanistic goals. The report offers additional policies that could fill gaps and overcome barriers, most of which could be implemented under existing federal legislation through actions by the executive branch and/or state and local governments, although some would require Congress. Significant gaps and barriers are to be expected because nothing of this scale and with this diversity of goals has ever been attempted. Watching for and, over time, filling those gaps will be essential to overall success. The economic opportunities of a transition to net zero stem largely from recent revolu- tionary changes in the cost of technologies and equipment that are not fueled by fossil energy. From 2010–2021, the levelized cost of energy for onshore wind and utility-scale solar dropped by nearly 70 and 90 percent respectively, to become cost-competitive with or cheaper than new fossil power projects over most of the globe. As a result, by the early to mid-2030s, the United States could rely on wind and solar electricity gen- eration, together with existing hydro and nuclear assets, to supply at least 80 percent of the country’s electricity demand at inflation-adjusted retail costs similar to today. Technological options also are in advanced development to eliminate emissions from the last 20 percent of power supply, using technologies such as advanced nuclear power, batteries and other energy storage technologies to manage long-term fluctuations in demand, natural gas with carbon capture and storage (CCS), and green hydrogen or biogas combusted in turbines. However, realizing the potential of these dis- patchable power options will require relentless research, development, demonstration, and deployment (RDD&D); public engagement; and learnings at scale after deployment. Over the same 11 years, electric vehicle (EV) lithium-ion battery packs dropped in cost by approximately 80 percent, and the price of lithium-ion batteries for all applications fell by 98 percent between 1991–2018 as they migrated from consumer electronics to packs 6 A00026--Accelerating Decarbonization in the United States_Summary.indd 6 4/13/24 10:29 AM 

Summary storing more than 100 kWh of electricity in battery electric vehicles (BEVs) (enough to drive more than 300 miles in a passenger vehicle). Dramatic cost reductions in batteries have made BEVs cost-competitive with new light- and medium-duty vehicles powered by internal combustion engines (ICEs). The average cost of owning and operating a light- duty BEV is likely lower than comparable ICE vehicles for some models and will be for most over the next 5 years (2023–2028) depending on vehicle class and other factors. Thus, within the same decade, the cheapest options for new equipment in two sectors responsible for approximately 70 percent of U.S. CO2 emissions—power generation and motor vehicles—are switching from being fossil-fuel powered to non-emitting alternatives. Decarbonized electric power, together with ongoing improvements of heat pumps and generally improving energy efficiency, also unlock the potential for emissions-free buildings. Using data even a few years old could lead to claims that the energy transition would be prohibitively expensive, as those data would not reflect current costs given their rapid recent descent. This technological revolution converged with two other trends to convince elected of- ficials of the need for immediate action. First, climate change–induced increases in the frequency and severity of extreme weather became obvious even to casual observers, and climate activism flourished against the backdrop of immediate and personal dangers that could be mitigated by cost-effective measures. Second, while these technological, scientific, and political changes were taking place, the United States was confronting with renewed vigor the consequences of its history of discrimination and the ongoing systemic problems that persist because of it. The U.S. energy system today contains considerable environmental injustice, such as the disproportionate ex- posure to fossil-produced air pollution that afflicts communities of color, with some of this owing to overtly racist policies like redlining during the 20th century and discrimi- natory and predatory lending and investment practices that continue today. These issues have sharpened the goal, from a 30-year transition to net-zero emissions, to a fair, equitable, and just 30-year transition. In January 2021, the Biden administra- tion established the Justice40 Initiative as official U.S. policy, which states that people and “disadvantaged communities that are marginalized, underserved, and overbur- dened by pollution” receive 40 percent of benefits from some federal investments in climate change, clean energy, energy efficiency, transit, affordable housing, workforce development, and remediation and reduction of legacy pollution.1 The congressional framers of the IRA followed suit, by directing up to $60 billion of IRA funding to environmental justice priorities.  1 For more information on the Justice40 Initiative, see https://www.whitehouse.gov/environmentaljustice/ justice40. 7 A00026--Accelerating Decarbonization in the United States_Summary.indd 7 4/13/24 10:29 AM 

A C C E L E R AT I N G D E C A R B O N I Z AT I O N I N T H E U N I T E D S TAT E S Thus, both the stakes of success and the costs of failure are high. The United States is attempting the first fair, equitable, and just technological transition in its history with a narrow portfolio of policies that relies extensively on subsidies. If successful, the transition will affect almost every part of the U.S. economy and leave the country with an affordable and accessible energy system that produces zero net GHG emissions. It will also afford important co-benefits, such as reduced emissions of ambient air pollutants that cause illness and death; revitalized energy, building, and industrial sectors; increased resilience to environmental and social stressors; net increases in employment; and fair, equitable, and just treatment of both displaced fossil fuel workers and low-income and historically marginalized populations. This is the second report from a National Academies of Sciences, Engineering, and Medicine committee that was constituted in 2020 to address “societal, institutional, behavioral, and equity drivers and implications of deep decarbonization.” (See the statement of task in Box 1-1 of Chapter 1.) The committees that wrote the first and second reports shared a majority of members and had an approximately equal num- ber of experts in energy technologies as in policy and the social science of energy policies, including policies affecting equity and energy justice. The committee was tasked to examine how the nation might achieve an equitable transition to net zero, not whether it should do so. The committee also was not tasked to assess policies de- signed to address impacts of climate change. The motivation for the focus on equity, fairness, and justice is at least partly pragmatic, given the need to maintain public and political support during a transition that will affect every part of society. Inclusive and equitable approaches, moreover, are key to preempting or minimizing implementa- tion challenges that would delay or derail decarbonization projects. SUMMARY OF FIRST REPORT The first report, Accelerating Decarbonization of the U.S. Energy System,2 was released in February 2021 and focused on federal actions needed during the 2020s to put the nation on a fair and equitable path to decarbonization by midcentury. It identified “no-regrets” actions during this first decade of a transition to net-zero emissions that would be robust to uncertainty about the system’s final technological mix. It outlined a set of technological and socioeconomic goals to support a just and equitable transi- tion that are robust to alternative future technology options. On the technology side, the committee set goals for carbon-free electricity; electrifying transportation, build- ings, and industry; investing in energy efficiency and productivity; deploying critical  2 See National Academies of Sciences, Engineering, and Medicine, 2021, Accelerating Decarbonization of the U.S. Energy System, Washington, DC: The National Academies Press, https://doi.org/10.17226/25932. 8 A00026--Accelerating Decarbonization in the United States_Summary.indd 8 4/13/24 10:29 AM 

Summary infrastructure; and expanding the innovation toolkit through clean energy research, demonstration, and deployment. The committee’s socioeconomic goals were to strengthen the U.S. economy; promote equity and inclusion; support communities, businesses, and workers; and maximize cost-effectiveness. The committee recognized that a strong social contract would be essential to main- tain support for an energy transition covering 3 decades. Thus, it proposed policies “to build a more competitive U.S. economy, to increase the availability of high-quality jobs, to build an energy system without the social injustices that permeate the current system, and to allow those individuals and businesses that are marginalized today to share equitably in future benefits.” The diverse portfolio of policy recommendations called for both system-wide and sector-specific policies that establish the U.S. commit- ment to a rapid, just, and equitable transition; set rules and standards for technology planning and deployment; invest in research, technology, people, and infrastructure; and assist and build capacities for families, businesses, communities, cities, and states to ensure that disadvantaged communities do not suffer disproportionate burdens. The committee continues to endorse the goals and policies recommended in the first report, while acknowledging that the list of new policies needed today is funda- mentally shaped by the radical changes to the policy landscape since its publication. Table 1-1 in Chapter 1 compares the policies recently adopted with the recommenda- tions in the committee’s first report. SUMMARY OF CURRENT FEDERAL CLIMATE AND ENERGY POLICY The extensive decarbonization policy portfolio that the United States has today did not come together until the summer of 2022 with the passage of the IRA and CHIPS, which complement the IIJA passed in November 2021. The potential impacts of these three pieces of legislation are nothing short of transformative for the energy sector and technology innovation in general. They lay out an expansive domestic industrial policy that puts climate, innovation, manufacturing, and wealth creation across all parts of the nation and economy as a central mission. Combined with the aspirations of related executive orders, this package seeks to develop a more equitable, fair, and just framework for the energy system transition. Of the three pieces of legislation, the IRA contains by far the most significant and wide-reaching policies to decarbonize the U.S. economy. It provides incentives for purchasing, producing, developing, and deploying clean energy technologies and makes investments in environmental justice and low-income and historically mar- ginalized communities. Modeling studies estimate that successful implementation of the act would put the United States on track to achieving 70–80 percent of the 9 A00026--Accelerating Decarbonization in the United States_Summary.indd 9 4/13/24 10:29 AM 

A C C E L E R AT I N G D E C A R B O N I Z AT I O N I N T H E U N I T E D S TAT E S emissions reductions necessary to reach its 2030 emissions target of ~3.3 Gt CO2e (50–52 percent below 2005 emissions levels) along a trajectory to its midcentury net-zero goal. CHIPS incentivizes domestic research, development, and manufacturing of semicon- ductors used in clean energy and a broad range of other modern technologies. It further boosts the country’s leadership in science and technology by authorizing in- vestments in research and development, workforce training, and commercialization of a wide range of technologies. These include not only advanced energy technologies but also artificial intelligence, quantum computing, and biotechnology engineering that will impact decarbonization in unexpected ways. CHIPS recognizes the need to diversify the innovation ecosystem by authorizing the creation of regional technology hubs and increasing opportunities for disadvantaged students and communities. The IIJA is designed to improve roads, bridges, and other components of the nation’s aging infrastructure. It is wide-ranging and often future-leaning in its scope by ex- panding broadband; providing grants for battery manufacturing and recycling facili- ties; investing in carbon capture, transport, utilization, and storage infrastructure; and deploying EV charging stations, in addition to repairing roads and bridges. While some of these investments may run counter to decarbonization goals in the near term, the legislation establishes regional clean hydrogen and direct air capture hubs, which will provide critical learning as the country takes on the challenges of harder to decarbon- ize energy uses within industry and transportation in the 2030s. The IIJA further solidi- fied the role of the Department of Energy (DOE) in moving beyond its traditional focus on research, development, and early-stage demonstration to latter-stage demonstra- tion, deployment, and commercialization. In addition to legislation, other federal actions support the nation’s clean energy, equity, and climate priorities. Within days of entering office, the Biden administration issued EO 14008 focusing on steps that the federal government can take both domestically and internationally to address the climate crisis. Importantly, it made Justice40 official U.S. policy and established the Interagency Working Group (IWG) on Coal and Power Plant Communities and Economic Revitalization, recognizing the need to support coal min- ing and power plant workers and communities in the energy transition. Justice40 and the IWG, together with the equity, justice, and fairness provisions in the IRA and other executive orders, represent a step change in equitable energy and climate policy. In response, federal agencies have created new offices and hired staff focused on energy justice and equity. Other executive orders and regulatory actions have targeted federal procurement power as a catalyst for developing a domestic clean energy economy, fuel economy and GHG standards for light- and medium-/heavy-duty vehicles, and emis- sions standards for existing and new fossil-fueled power plants and industrial facilities. 10 A00026--Accelerating Decarbonization in the United States_Summary.indd 10 4/13/24 10:29 AM 

Summary SECOND REPORT In early 2021, it became clear that the 117th Congress was likely to enact significant new climate and energy legislation before the release of the committee’s second report. For the second report to be relevant and useful under this scenario, the assess- ment of “a wider spectrum of technological, policy, social, and behavioral dimensions of deep decarbonization” called for in the statement of task would need to address whatever path to “deep decarbonization” had been chosen by Congress and the ad- ministration. The committee spent the next 18 months preparing the foundation for an analysis of a comprehensive federal policy portfolio, and then the past 8 months completing a draft report for the portfolio that is now federal law. The committee subsequently submitted the report for a comprehensive external review and has modified the analysis as needed to reflect reviewer comments and updates to policy, regulations, and other climate-related actions. Also, given the first report’s focus on federal action, the committee examined the contributions of states, localities, the private sector, and civil society to mitigating climate change. The committee identified five objectives of decarbonization policy—GHG emission reductions,3 equity and fairness, health, employment, and public engagement—and eight sectors—electricity, buildings, land use, transportation, industry, finance, fossil fuels, and non-federal actors. This report has chapters focused on objectives that cut across sectors, and chapters on the sectors that cut across objectives (think of a matrix, with objectives as rows and sectors as columns). Although this structure entails some redundancy, it facilitates understanding by specialists who may read only part of the report. It also helps emphasize the crosscutting and systems-level characteristics of deep decarbonization. Sectoral chapters support the interests of sectoral specialists, while also sharing with them that many daunting sectoral barriers are likely to be social and cultural, such as the development of public resistance to a process that seems unfair, unequitable, or unjust. Chapters on objectives are tailored to the interests of social scientists, environmental justice activists, and others who are interested in the fairness of the transition; its impacts on equity, justice, health, and employment; and the need for effective public engagement, while confronting them with myriad practical, technical, institutional, and legal constraints that cannot be ignored. A prime example of the latter is the fact that a minimum amount of electric- ity production must be dispatchable, which means that one can turn it on whenever needed in order to meet the demands of a complex economy and just society, even during conditions when the winds are quiet, the skies are hazy, and the temperatures are extreme for several consecutive days.  3 This report primarily covers CO2 emissions, with some discussion of non-CO2 GHGs where relevant. 11 A00026--Accelerating Decarbonization in the United States_Summary.indd 11 4/13/24 10:29 AM 

A C C E L E R AT I N G D E C A R B O N I Z AT I O N I N T H E U N I T E D S TAT E S After passage of the IRA, IIJA, and CHIPS, it was clear from their budgets, comprehensive sectoral coverage, and narrow policy portfolio that the dominant risk to achieving the maximum possible emissions reduction is inadequate or failed implementation. Congres- sional passage significantly reduces the political risk of repeal, while the focus on low- carbon electricity and electrification during the 2020s, which already costs less than new emitting fossil alternatives, largely puts off the risk that essential non-emitting technolo- gies might not be ready in time at the right price until after 2030. Hence, the committee’s second and final report is not just about progress but also about gaps and barriers that would prevent successful implementation, where success is measured against the five separate objectives: reduced emissions of GHGs; fairness, equity, and justice; health; the number and quality of jobs; and transparent public engagement in planning and deci- sion-making. For each gap and barrier, the report offers a recommended remedy. Recommendations Summary4 A summary of approximately 80 recommendations is provided in Table S-1, with a list of the actors responsible for implementation and the sectors and objectives that each is designed to address. Recommendations are also sorted into 10 broad categories that are described below. A Broadened Policy Portfolio. The committee’s first report recommended a broad set of policies, including taxes, standards, and incentives, with some redundancy to make the portfolio more robust to the failure or repeal of any one component. For example, manufacturing standards for home heating appliances would ensure a transition to heat pumps even if the carbon tax proved unable to overcome consumer inertia. The narrow policy portfolio in the IRA, IIJA, and CHIPS—exclusively tax incentives and other subsidies, with the exception of a fee for fugitive methane emissions—lacks the backstops of a diverse portfolio and thus makes achieving its emissions reduction goals more uncertain. Also, a 30-year transition will require that some critical elements possess the political durability that only congressional action can provide. Recommendation 1-1 repeats two recommendations for Congress from the first re- port: a national GHG emissions budget and an economy-wide carbon tax with provi- sions to protect people with low incomes and energy-intensive businesses exposed to import competition. The committee fully appreciates the political headwinds currently facing these actions. Within the body of the current report, the committee also reiter- ates recommendations from its first report for clean energy standards for electricity, zero-emissions vehicle sales mandates, zero-emissions appliance standards, and the 4  The text in this section was changed during editorial review to improve clarity and alignment with information in other sections of the report. 12 A00026--Accelerating Decarbonization in the United States_Summary.indd 12 4/13/24 10:29 AM 

Summary creation of a National Transition Corporation. Recommendations in Table S-1 that would broaden the federal policy portfolio include 1-1, 5-3, 5-8, 6-1, 7-5, 7-7, 8-2, 8-6, 8-8, 9-1, 9-3, 10-2, 10-3, 10-6, 10-7, 10-9, and 12-2. Rigorous and Transparent Analysis and Reporting for Adaptive Management. Few of the policies in the IRA have ever been implemented at the scale and pace required by the law and necessary to achieve climate mitigation goals, while also ensuring energy justice and equity. Federal agencies and, especially, state governments currently lack the capacity needed to administer the funds and imple- ment programs. State and local motivations behind implementation are highly heterogenous, with some areas energetically supportive and others opposed. Overt or passive public resistance to the deployment of critical infrastructure could ma- terialize in some locations or sectors. The climate and energy programs in the IRA and IIJA are scattered across the federal government, with no durable entity to gather data, monitor, and analyze them and periodically report on progress against GHG emissions, equity, justice, employment, health, and public engagement goals. This will limit the nation’s ability to learn what works and what does not, to course- correct, and to design effective policies for the subsequent 2 decades of the tran- sition. Recommendations 1-2 and 1-3 are for Congress to designate an enduring entity to oversee and execute rigorous and transparent data analysis, monitoring, and reporting about investments and progress, in much the same way that the U.S. Global Change Research Program (USGCRP) was empowered by Congress to report periodically on climate change and its impacts. Other recommendations that sup- port Recommendations 1-2 and 1-3 include 2-1, 2-2, 2-3, 2-6, 3-2, 7-1, 7-3, 7-5, 8-1, 8-3, 8-4, 9-5, 10-1, 10-5, 10-6, 10-7, 11-4, and 11-5. Ensuring Procedural Equity in Planning and Siting New Infrastructure and Programs. The social sciences and technical literature on planning and developing new infrastructure during technological transitions shows that public consensus and support require a careful collaborative process managed by specially trained people, and with active participation by the diversity of people in the local community. It is also important to involve affected publics in planning for energy development early, rather than coming to them with fully baked project proposals. Without robust process, policy implementers may lose or fail to gain the trust of a local community before learning what its members want and would support. Communities are then left opposing infrastructure like community solar, which could pay them revenue, reduce energy bills, or even be owned by them, because they (understandably) do not trust the people or process that promotes it, rather than deciding based on the advan- tages and disadvantages for their community. Although robust public process takes time, it increases the probability of success; there is some evidence that good process yields trust and awareness that can facilitate subsequent siting in the same location. 13 A00026--Accelerating Decarbonization in the United States_Summary.indd 13 4/13/24 10:29 AM 

A C C E L E R AT I N G D E C A R B O N I Z AT I O N I N T H E U N I T E D S TAT E S Recommendations 5-1 through 5-8 would implement this process, with support from 2-3, 2-4, 2-5, 6-6, 7-1–7-3, 9-5, 11-1–11-3, and 12-1. Ensuring Equity, Justice, Health, and Fairness of Impacts. The current federal policy portfolio contains many provisions designed to ensure a fair, just, and equi- table distribution of costs and benefits from the transition, and to eliminate current injustice in our energy system. Recommendations 2-1 through 2-6 are designed to strengthen these provisions and reduce barriers to their successful implementation. The report also recommends that Justice40 or an equivalent target be made durable (institutionalized) through an act of Congress (Recommendation 2-1). Public health is a critical component of justice and fairness in many parts of the energy transition. Perhaps the single gravest environmental injustice in the U.S. energy system is that up to 355,000 deaths per year are caused by air pollution from fossil fuels combustion, which disproportionately occur in communities of color and low-income households. A large fraction of this pollution will be eliminated by actions stimulated by the IRA during the 2020s because of coal plant closures. This will make a significant down payment on Justice40, above and beyond the funding in the law that is directed ex- plicitly to environmental justice. Recommendations 3-1 through 3-3 would make sure that health impacts are assessed when technological and new infrastructure decisions are made, and Recommendation 10-4 would promote development of technolo- gies that reduce both CO2 and co-pollutant emissions. Last, Recommendations 4-2, 4-3, 5-2, 5-4, 5-8, 6-4, 6-5, 9-5, 9-6, 10-4, 12-1, 12-3, 12-6, and 12-7 would mitigate the harms to workers and communities from the loss of fossil-dependent jobs. Siting and Permitting Reforms for Interstate Transmission. Perhaps the single greatest risk to a successful energy transition during the 2020s is the risk that the nation fails to site, modernize, and build out the electrical grid. Except where new transmission has been shown as needed to keep the lights on, adding transmission is complicated by the need to secure cooperation from numerous individual landown- ers and affected publics—many of whom may perceive greater cost than benefit from high-voltage transmission lines. The need for adding new transmission capacity and pathways during the 2020s is unprecedented, given the committee’s goal of at least 75 percent clean power by 2030, laid out in the first report. Studies show that without significant new transmission capacity, renewables deployment would be delayed, just as electrification of transport and heating are starting to increase demands for power. The net result could be increased generation by fossil electricity plants and increased national fossil emissions during the 2020s, which would make the entire effort appear to be a failure, even assuming that investments in energy efficiencies occur in con- junction with electrification. This would also prolong and increase the environmental injustice of exposure to dangerous particulate emissions from fossil power plants. 14 A00026--Accelerating Decarbonization in the United States_Summary.indd 14 4/13/24 10:29 AM 

Summary Expansion of the high-voltage interstate transmission grid is needed in addition to, rather than instead of, modernization of local electricity distribution systems, deploy- ment of energy resources (such as solar and storage) close to customers, and much more aggressive adoption of energy efficiency. The committee recommends siting and permitting reforms through the collection of executive, state, and private-sector actions in Recommendation 6-2 with support from Recommendations 5-5–5-7, 6-3–6-6, and 7-6. Tightened Targets for the Buildings and Industrial Sectors and a Backstop for the Transport Sector. The 2030 sectoral emissions goals set by the Biden administration can be achieved or mostly achieved by the current policy portfolio, in part because the goals for “harder-to-decarbonize” sectors, such as industry and buildings are not particularly stringent. Recommendations 7-1 through 7-5 would facilitate effective implementation of components of the IRA and the IIJA directed at buildings and the built environment, especially those that would further equity and fairness objectives. Chapter 7 also includes 10 technically achievable actions in buildings and the built environment that could eliminate up to 1 billion metric tons of today’s CO2 emissions per yer, mostly by increasing energy efficiency and decreasing demand for energy services. Although several of the actions would face formidable political headwinds if proposed today as new federal policies, most could be implemented by states, mu- nicipalities, and property owners. By increasing energy efficiency, these actions would decrease current and future demand for electricity, which would ease the pressures to site new transmission, distribution, and generation capacity so quickly. In the trans- port sector, the Biden administration has set a goal for zero-emission vehicles (ZEVs) to comprise 50 percent of 2030 sales. Because of uncertainties about the pace of de- ployment of charging infrastructure and consumer adoption of ZEVs, some published analyses predict that the 2030 goal will be achieved, while others predict a significant shortfall. Recommendation 9-1 calls for federal executive action to establish a ZEV standard to backstop the tax credits in the IRA, while Recommendations 9-2 through 9-5 call for state, local, and private actions to promote the growth of ZEV sales. Recommendations 10-1–10-4, 10-6, 10-7, and 10-9 call for specific congressional actions to accelerate decarbonization of the industrial sector. These might attract bipartisan interest as part of a package to revitalize U.S. industry. The less ambitious emissions reduction goals for the buildings and industrial sectors in the 2020s mean that large reductions will be required after 2030. In addition, large atmospheric CO2 removals in the 2040s will likely be needed from technologies, like direct air capture, that are unproven at a commercial scale. Managing the Future of the Fossil Fuel Sector. The committee’s first report con- cluded that, in the 2020s, approximately the same actions are required in scenarios 15 A00026--Accelerating Decarbonization in the United States_Summary.indd 15 4/13/24 10:29 AM 

A C C E L E R AT I N G D E C A R B O N I Z AT I O N I N T H E U N I T E D S TAT E S that assume exclusively renewable sources in 2050 as in those that assume a mix of renewables, nuclear power, and fossil energy with carbon capture and storage. For this reason, the fact that the IRA, IIJA, and CHIPS include incentives for non-renewable options does not significantly take any decarbonized technology option off the table. Most estimates indicate a continued role for fossil fuels—particularly oil and gas—in meeting energy demand throughout the next decade but significant uncertainty in the 2030s and beyond. Recommendations 12-1, 12-3, and 12-5–12-7 would help manage some consequences of these demand reductions, including safe operation of municipal gas distribution networks despite a declining base of rate payers, reforms to taxes on petroleum products, remediation of abandoned fossil facilities, and transition planning and assistance for communities and states now heavily dependent on fossil extraction and production. Recommendations 12-2 and 12-4 would avoid investments that are not essential to meet current demand and might end up excluded from the final net-zero mix. Building the Needed Workforce and Capacity. The federal government is rapidly adding the capacity it needs to implement current climate and energy policy. However, the nation as a whole lacks the trained workers needed to implement fairness, equity, justice, and public engagement provisions. Implementation of Recommendations 2-4, 5-1, 5-6, 5-9, 5-10, 7-4, and 7-5 would supply the needed train- ing. Recommendations 4-1–4-4, 10-8, and 12-1 would provide training for workers needed by decarbonized industries and retraining for current fossil fuel workers. Last, Recommendations 13-1–13-5 are needed to remedy the severe capacity shortage in most subnational governments, which will be responsible for administering most of the programs in current policy. Reforming Financial Markets. The financial sector directs the flow of capital and financial services to businesses and households throughout the United States and has increasingly focused on the risks and opportunities associated with the net-zero transition. Historically, some communities have not had equal access to these services, an inequality that the energy transition must address. Targeted programs can address these inequities, and Recommendations 11-1 through 11-3 focus on this outcome. Additionally, better data and information can allow investors and regulators to fully understand climate-related risks and opportunities in the financial sector, and Recommendations 11-4 and 11-5 aim to improve and standardize data collection and disclosure. Last, financial regulators need to improve their monitoring and supervision of climate risks, and Recommendation 11-6 addresses needed scenario analysis and stress testing to understand the vulnerability of key financial institutions and the sector as a whole. 16 A00026--Accelerating Decarbonization in the United States_Summary.indd 16 4/13/24 10:29 AM 

Summary Research, Development, and Demonstration Needs. DOE is implementing many of the new or expanded RD&D programs required in the first decade of a transition to net zero, so that the nation will be ready for the second 2 decades. However, addi- tional investments will be required to address medium- to long-term challenges, such as developing new methods to make low-carbon products using green chemistry or engineering. Furthermore, the breadth of the energy transition requires an RD&D portfolio broader than DOE’s domain, including for example land-use practices that store carbon while improving agricultural productivity, research on artificial meat and dairy food products, and ways to reduce food waste and shift toward more plant-based diets. In general, the most formidable barriers to successful implementa- tion are not just technical, but rather within the domain of the social sciences, where DOE and the federal government investments have historically been small or absent. Recommendation 5-9 would greatly enhance investments in energy-related social sciences, while 3-3, 6-7, 7-6, 8-4, 8-5, 8-7, 9-6, 10-1, 10-2, 10-4, and 10-6 would fill specific technological gaps in RD&D, which in some cases (e.g., for land-use-related approaches) will require identifying which technologies to pursue and how. 17 A00026--Accelerating Decarbonization in the United States_Summary.indd 17 4/13/24 10:29 AM 

18 TABLE S-1  Summary of Recommendations for Policies Designed to Meet Net-Zero Carbon Emissions Goal and How the Policies Support Specific Sectors, Objectives, and Overarching Categories Actor(s) Responsible Objective(s) Overarching Categories Short-Form for Implementing Sector(s) Addressed Addressed by Addressed by Recommendation Recommendation by Recommendation Recommendation Recommendation 1-1: Enact Two Federal Congress, Department • Electricity • Greenhouse gas A Broadened Policy Portfolio Policies Recommended in of the Treasury, • Buildings (GHG) reductions the First Report: National Environmental Protection • Land use Greenhouse Gas Emissions Agency (EPA) • Transportation Budget and Economy-Wide • Industry Carbon Tax • Finance • Fossil fuels A00026--Accelerating Decarbonization in the United States_Summary.indd 18 1-2: Leverage the Evidence Congress and Office of • Electricity • GHG reductions Rigorous and Transparent Act to Execute Data Management and Budget • Buildings • Equity Analysis and Reporting for Collection and Evaluation (OMB) • Land use • Health Adaptive Management on Decarbonization • Transportation • Employment Investments and Programs • Industry • Public engagement • Finance • Fossil fuels 1-3: Identify and Provide Congress and • Electricity • GHG reductions Rigorous and Transparent Resources for a Central single other agency • Buildings • Equity Analysis and Reporting for Entity to Provide Timely, (e.g., Energy Information • Land use • Health Adaptive Management Public-Facing Information Administration [EIA], • Transportation • Employment on the Nation’s Progress Global Change Research • Industry • Public engagement Toward Decarbonization Program, OMB) • Finance • Fossil fuels 4/13/24 10:29 AM 

2-1: Codify the Justice40 Congress • Buildings • Equity Rigorous and Transparent Initiative • Transportation • Health Analysis and Reporting for • Land use • Employment Adaptive Management • Transportation Ensuring Equity, Justice, • Industry Health, and Fairness of Impacts • Finance • Fossil fuels 2-2: Develop a Federal Council on Environmental • Electricity • Equity Rigorous and Transparent Baseline Set of Metrics Quality (CEQ) • Buildings Analysis and Reporting for for Disadvantaged • Land use Adaptive Management Communities for Program • Transportation Ensuring Equity, Justice, Design and Evaluation • Industry Health, and Fairness of Impacts • Finance A00026--Accelerating Decarbonization in the United States_Summary.indd 19 • Fossil fuels • Non-federal actors 2-3: Implement Federal Federal policy makers • Electricity • Public engagement Rigorous and Transparent Legislation for Equitable • Buildings • GHG reductions Analysis and Reporting for Outcomes • Land use • Equity Adaptive Management • Transportation Ensuring Equity, Justice, • Industry Health, and Fairness of Impacts • Finance • Fossil fuels Ensuring Procedural Equity • Non-federal actors in Planning and Siting New Infrastructure and Programs 2-4: Build Multi-Level Congress, National • Non-federal actors • GHG reductions Ensuring Procedural Equity Capacity to Support Transition Corporation, • Equity in Planning and Siting New Community-Led Transitions EPA and Department • Health Infrastructure and Programs of Energy (DOE), state • Employment Ensuring Equity, Justice, legislatures • Public engagement Health, and Fairness of Impacts 19 Building the Needed Workforce and Capacity continued 4/13/24 10:29 AM 

20 TABLE S-1  Continued Actor(s) Responsible Objective(s) Overarching Categories Short-Form for Implementing Sector(s) Addressed Addressed by Addressed by Recommendation Recommendation by Recommendation Recommendation Recommendation 2-5: Develop Equitable Federal Interagency • Electricity • Equity Ensuring Procedural Equity Technical Assistance Thriving Communities • Buildings • Public engagement in Planning and Siting New Guidelines Network, White House • Land use Infrastructure and Programs Environmental Justice • Transportation Ensuring Equity, Justice, Advisory Committee • Industry Health, and Fairness of (WHEJAC) • Finance Impacts • Fossil fuels • Non-federal actors A00026--Accelerating Decarbonization in the United States_Summary.indd 20 2-6: Evaluate the Equity Omnibus entity, WHEJAC • Electricity • Equity Rigorous and Transparent Impacts of the Just Energy • Buildings • Transparency Analysis and Reporting for Transition • Land use • Health Adaptive Management • Transportation • Employment Ensuring Equity, Justice, • Industry Health, and Fairness of • Finance Impacts • Fossil fuels • Non-federal actors 3-1: Phase Out Incentives Congress and U.S. • Land use • GHG reduction Ensuring Equity, Justice, for the Highest Department of Agriculture • Health Health, and Fairness of Greenhouse Gas Emitting (USDA) Impacts Animal Protein Sources 4/13/24 10:29 AM 

3-2: Increase Use of Health Congress, Centers for • Electricity • Equity Rigorous and Transparent Impact Assessment Tools Disease Control and • Buildings • Health Analysis and Reporting for in Energy Project Decision- Prevention (CDC), National • Transportation Adaptive Management Making Center for Environmental • Industry Ensuring Equity, Justice, Health/Agency for Toxic • Fossil fuels Health, and Fairness of Substances and Disease Impacts Registry (NCEH/ATSDR), Department of Health and Human Services (HHS) Office of Climate Change and Health Equity 3-3: Assess Occupational CDC, NCEH/ATSDR, • Electricity • Equity Ensuring Equity, Justice, A00026--Accelerating Decarbonization in the United States_Summary.indd 21 Health Risks Associated Occupational Safety and • Buildings • Health Health, and Fairness of with Clean Energy Health Administration • Transportation • Employment Impacts Technologies (OSHA) • Industry Research, Development, and • Fossil fuels Demonstration Needs 4-1: Support the Department of Education, • Electricity • Equity Building the Needed Development of Net- local governments, and • Buildings • Employment Workforce and Capacity Zero Curriculum and Skill school districts • Transportation • Public engagement Development Programs for • Industry K–12 Students • Non-federal actors 4-2: Invest in Congress • Electricity • Equity Ensuring Equity, Justice, Linking People from • Buildings • Employment Health, and Fairness of Disadvantaged • Transportation Impacts Communities to Quality • Industry Building the Needed Jobs • Non-federal actors Workforce and Capacity continued 21 4/13/24 10:29 AM 

22 TABLE S-1  Continued Actor(s) Responsible Objective(s) Overarching Categories Short-Form for Implementing Sector(s) Addressed Addressed by Addressed by Recommendation Recommendation by Recommendation Recommendation Recommendation 4-3: Extend Congress • Transportation • Equity Ensuring Equity, Justice, Unemployment Insurance • Fossil fuels • Employment Health, and Fairness of Duration for Fossil Fuel– • Public engagement Impacts Related Layoffs and Building the Needed Develop Decarbonization Workforce and Capacity Workforce Adjustment Assistance Program 4-4: Collect and Report DOE • Electricity • Equity Building the Needed A00026--Accelerating Decarbonization in the United States_Summary.indd 22 Data on Net-Zero-Relevant • Buildings • Employment Workforce and Capacity Professions • Transportation • Industry • Non-federal actors 5-1: Encourage National Climate Task • Non-federal actors • Equity Ensuring Procedural Equity Prospective, Inclusive Force (NCTF), DOE, and • Employment in Planning and Siting New Dialogue at National and EPA • Public engagement Infrastructure and Programs Regional Levels Building the Needed Workforce and Capacity 5-2: Accelerate Subnational government, • Non-federal actors • Equity Ensuring Equity, Justice, the Development, elected officials and their • Public engagement Health, and Fairness of Impacts Implementation, representative coalitions, Ensuring Procedural Equity Assessment, and Sharing of federal partners in Planning and Siting New Energy System Policy and Infrastructure and Programs Approaches That Deliver Local Benefits 4/13/24 10:29 AM 

5-3: Fix Policy Gaps That Congress and state • Electricity • Equity A Broadened Policy Portfolio Limit Role of Public Land in legislatures • Non-federal actors • Public engagement Ensuring Procedural Equity Decarbonization • Land use in Planning and Siting New Infrastructure and Programs 5-4: Address Barriers State legislatures • Non-federal actors • Equity Ensuring Equity, Justice, to Local Benefits from • Public engagement Health, and Fairness of Impacts Renewable Energy Ensuring Procedural Equity Facilities in Planning and Siting New Infrastructure and Programs 5-5: Convene a National DOE, CEQ, Federal Energy • Non-federal actors • Equity Ensuring Procedural Equity Working Group on Siting Regulatory Commission • Electricity • Public engagement in Planning and Siting New A00026--Accelerating Decarbonization in the United States_Summary.indd 23 Process Innovation with (FERC), National Infrastructure and Programs Input from State Energy Association of Regulatory Siting and Permitting Reforms Officials Utility Commissioners for Interstate Transmission (NARUC), and National Association of State Energy Officials (NASEO) 5-6: Mandate and Allocate Congress, DOE, NCTF • Electricity • Equity Ensuring Procedural Equity Resources for a National • Non-federal actors • Employment in Planning and Siting New Assessment on the Public • Public engagement Infrastructure and Programs Engagement Workforce Siting and Permitting Reforms and Gaps for Interstate Transmission Building the Needed Workforce and Capacity continued 23 4/13/24 10:29 AM 

24 TABLE S-1  Continued Actor(s) Responsible Objective(s) Overarching Categories Short-Form for Implementing Sector(s) Addressed Addressed by Addressed by Recommendation Recommendation by Recommendation Recommendation Recommendation 5-7: Develop Collaborative Civil society leaders • Non-federal actors • Equity Ensuring Procedural Equity Regional Renewable and philanthropic • Public engagement in Planning and Siting New Energy Deployment Plans organizations Infrastructure and Programs Siting and Permitting Reforms for Interstate Transmission 5-8: Address the Priorities Congress and federal • Electricity • Equity A Broadened Policy Portfolio of Native American and program designers • Public engagement Ensuring Procedural Equity Environmental Justice A00026--Accelerating Decarbonization in the United States_Summary.indd 24 in Planning and Siting New Communities Infrastructure and Programs Ensuring Equity, Justice, Health, and Fairness of Impacts 5-9: Invest in and Integrate DOE, Department of • Non-federal actors • Equity Building the Needed Social Science Research Transportation (DOT), • Employment Workforce and Capacity into Transition Decision- Department of Defense • Public engagement Research, Development, and Making (DoD), EPA, and National Demonstration Needs Science Foundation (NSF) 5-10: Establish an Energy DOE and Department of • Electricity • Public engagement Building the Needed Systems Education Education • Buildings Workforce and Capacity Network • Transportation • Industry • Non-federal actors 4/13/24 10:29 AM 

6-1: Adopt National Policy Congress • Electricity • GHG reductions A Broadened Policy Portfolio to Limit Power-Sector • Health Greenhouse Gas Emissions 6-2: Support the Expansion FERC, DOE, states, • Electricity • GHG reductions Siting and Permitting Reforms of the Transmission Grid transmission companies, • Non-federal actors • Health for Interstate Transmission public stakeholders, and • Public engagement Department of the Interior (DOI) 6-3: Expand Regional Congress, FERC, regional • Electricity • GHG reductions Siting and Permitting Reforms Power Markets Consistent transmission organizations • Non-federal actors • Equity for Interstate Transmission with Decarbonization (RTOs) • Health Objectives A00026--Accelerating Decarbonization in the United States_Summary.indd 25 6-4: Provide Rate Options Decision makers on • Electricity • Equity Ensuring Equity, Justice, to Encourage Flexible utility rates (i.e., state • Non-federal actors Health, and Fairness of Demand While Ensuring utility regulators for Impacts Affordable Electricity jurisdictional investor- Siting and Permitting Reforms owned utilities and boards for Interstate Transmission of cooperatives, municipal electric utilities, and other publicly owned utilities) 6-5: Support Equitable States, localities, and tribal • Electricity • GHG reductions Ensuring Equity, Justice, Deployment of Distributed governments • Non-federal actors • Equity Health, and Fairness of Energy Resources • Health Impacts • Public engagement Siting and Permitting Reforms for Interstate Transmission continued 25 4/13/24 10:29 AM 

26 TABLE S-1  Continued Actor(s) Responsible Objective(s) Overarching Categories Short-Form for Implementing Sector(s) Addressed Addressed by Addressed by Recommendation Recommendation by Recommendation Recommendation Recommendation 6-6: Support Planning, Decision makers on utility • Electricity • GHG reductions Ensuring Procedural Equity Public Participation, and service provision (i.e., • Non-federal actors • Equity in Planning and Siting New Investment in Modernizing state utility regulators for • Health Infrastructure and Programs Local Grids jurisdictional investor- • Public engagement Siting and Permitting Reforms owned utilities and boards for Interstate Transmission of cooperatives, municipal electric utilities, and other publicly owned utilities) A00026--Accelerating Decarbonization in the United States_Summary.indd 26 6-7: Invest in Research, Congress • Electricity • GHG reductions Research, Development, and Development, and • Equity Demonstration Needs Demonstration of On-Demand Electric Generating Technologies and Long-Duration Storage Technologies 7-1: Ensure Clarity and DOE • Buildings • GHG reductions Rigorous and Transparent Consistency for the • Equity Analysis and Reporting for Implementation of • Public engagement Adaptive Management Building Decarbonization Ensuring Procedural Equity Policies in Planning and Siting New Infrastructure and Programs Tightened Targets for the Buildings and Industrial Sectors and a Backstop for the Transport Sector 4/13/24 10:29 AM 

7-2: Promote an Equitable DOE • Buildings • GHG reductions Ensuring Procedural Equity Focus Across Building • Non-federal actors • Equity in Planning and Siting New Decarbonization Policies • Public engagement Infrastructure and Programs Tightened Targets for the Buildings and Industrial Sectors and a Backstop for the Transport Sector 7-3: Expand and Evaluate DOE • Buildings • GHG reductions Rigorous and Transparent the Weatherization • Equity Analysis and Reporting for Assistance Program • Health Adaptive Management Ensuring Procedural Equity A00026--Accelerating Decarbonization in the United States_Summary.indd 27 in Planning and Siting New Infrastructure and Programs Tightened Targets for the Buildings and Industrial Sectors and a Backstop for the Transport Sector 7-4: Coordinate State and municipal • Buildings • Equity Tightened Targets for the Subnational Government government offices • Non-federal actors • Employment Buildings and Industrial Agencies to Align Sectors and a Backstop for the Decarbonization Policies Transport Sector and Implementation Building the Needed Workforce and Capacity continued 27 4/13/24 10:29 AM 

28 TABLE S-1  Continued Actor(s) Responsible Objective(s) Overarching Categories Short-Form for Implementing Sector(s) Addressed Addressed by Addressed by Recommendation Recommendation by Recommendation Recommendation Recommendation 7-5: Build Capacity for Congress • Buildings • GHG reductions A Broadened Policy Portfolio States and Municipalities • Non-federal actors • Equity Rigorous and Transparent to Adopt and Enforce • Health Analysis and Reporting for Increased Regulatory • Employment Adaptive Management Rigor for Buildings and Equipment Tightened Targets for the Buildings and Industrial Sectors and a Backstop for the Transport Sector A00026--Accelerating Decarbonization in the United States_Summary.indd 28 Building the Needed Workforce and Capacity 7-6: Increase Research, Congress • Buildings • Equity Siting and Permitting Reforms Development, • Non-federal actors • Health for Interstate Transmission Demonstration, and • Employment Research, Development, and Deployment for • Public engagement Demonstration Needs Built Environment Decarbonization Interventions 7-7: Extend Current Congress • Buildings • GHG reductions A Broadened Policy Portfolio Decarbonization Incentives • Equity Tightened Targets for the Beyond the Next Decade • Health Buildings and Industrial While Scaling Up Mandates • Employment Sectors and a Backstop for the Transport Sector 8-1: Convene an Expert Secretary of Agriculture • Land use • GHG reductions Rigorous and Transparent Group to Recommend Analysis and Reporting for Ways to Measure Adaptive Management Additional Forest Sinks 4/13/24 10:29 AM 

8-2: Prioritize Ecosystem- Secretary of Agriculture • Land use • GHG reductions A Broadened Policy Portfolio Level Carbon Storage 8-3: Establish a Permanent, USDA • Land use • GHG reductions Rigorous and Transparent National-Scale, High- Analysis and Reporting for Quality Soil Monitoring Adaptive Management Network 8-4: Build Out Long- USDA • Land use • GHG reductions Rigorous and Transparent Term Agricultural Field • Non-federal actors Analysis and Reporting for Experiments Adaptive Management Research, Development, and Demonstration Needs A00026--Accelerating Decarbonization in the United States_Summary.indd 29 8-5: Fund Research to USDA • Land use • GHG reductions Research, Development, and Quantify Indicators That • Equity Demonstration Needs Influence Adoption of • Public engagement Regenerative Agriculture Practices 8-6: Incentivize the USDA • Land use • GHG reductions A Broadened Policy Portfolio Abatement of CH4 and N2O • Equity Emissions and Improve Soil Carbon Sequestration 8-7: Release a DOE • Land use • GHG reductions Research, Development, and Comprehensive Demonstration Needs Research, Development, Demonstration, and Deployment Program for Biomass Energy with Carbon Capture and Storage 29 continued 4/13/24 10:29 AM 

30 TABLE S-1  Continued Actor(s) Responsible Objective(s) Overarching Categories Short-Form for Implementing Sector(s) Addressed Addressed by Addressed by Recommendation Recommendation by Recommendation Recommendation Recommendation 8-8: Convene an Expert Secretary of Agriculture • Land use • GHG reductions A Broadened Policy Portfolio Group to Recommend • Health Policies That Could Encourage Sustainable Diets 9-1: Accelerate the Federal, state, and local • Transportation • GHG reductions A Broadened Policy Portfolio Adoption of Battery governments • Finance • Equity Tightened Targets for the Electric Vehicles • Non-federal actors • Health Buildings and Industrial • Public engagement Sectors and a Backstop for the A00026--Accelerating Decarbonization in the United States_Summary.indd 30 Transport Sector 9-2: Promote Vehicle Ports and airports and • Transportation • GHG reductions Tightened Targets for the Electrification at Ports and their state and local • Non-federal actors • Health Buildings and Industrial Airports government owners Sectors and a Backstop for the Transport Sector 9-3: Pursue Cost-Effective Private companies • Buildings • GHG reductions A Broadened Policy Portfolio Efficiency Improvements and state and local • Transportation • Equity Tightened Targets for the to Reduce Greenhouse Gas governments • Fossil fuels • Health Buildings and Industrial Emissions • Non-federal actors Sectors and a Backstop for the Transport Sector 9-4: Pursue Infrastructure State DOTs, American • Transportation • GHG reductions Tightened Targets for the Design, Standards, Association of State • Industry Buildings and Industrial Specifications, and Highway and Transportation • Non-federal actors Sectors and a Backstop for the Procedures That Effectively Officials, American Road Transport Sector Reduce Transportation and Transportation Builders Carbon Emissions Association, and other specialized transportation infrastructure materials and construction associations 4/13/24 10:29 AM 

9-5: Enhance States and local • Buildings • GHG reductions Rigorous and Transparent Transportation Equity and governments • Transportation • Equity Analysis and Reporting for Environmental Justice • Finance • Health Adaptive Management Through Programs, • Non-federal actors • Public engagement Ensuring Procedural Equity Planning, and Services in Planning and Siting New Infrastructure and Programs Ensuring Equity, Justice, Health, and Fairness of Impacts Tightened Targets for the Buildings and Industrial A00026--Accelerating Decarbonization in the United States_Summary.indd 31 Sectors and a Backstop for the Transport Sector 9-6: Support Advances DOE and NSF • Land use • GHG reductions Ensuring Equity, Justice, in Battery Design and • Transportation Health, and Fairness of Recycling, Fuel Cell Electric • Industry Impacts Vehicles, and Net-Zero Research, Development, and Liquid Fuels Demonstration Needs 10-1: Develop and Enable DOE and industrial • Buildings • GHG reductions Rigorous and Transparent Cost-Competitive Process companies • Industry Analysis and Reporting for and Waste Heat Solutions Adaptive Management Tightened Targets for the Buildings and Industrial Sectors and a Backstop for the Transport Sector Research, Development, and Demonstration Needs 31 continued 4/13/24 10:29 AM 

32 TABLE S-1  Continued Actor(s) Responsible Objective(s) Overarching Categories Short-Form for Implementing Sector(s) Addressed Addressed by Addressed by Recommendation Recommendation by Recommendation Recommendation Recommendation 10-2: Invest in Energy and Congress and DOE • Buildings • GHG reductions A Broadened Policy Portfolio Materials Efficiency and • Industry Tightened Targets for the Industrial Electrification • Finance Buildings and Industrial • Non-federal actors Sectors and a Backstop for the • Transportation Transport Sector Research, Development, and Demonstration Needs 10-3: Spur Innovation to Congress, DOE, non- • Industry • GHG reductions A Broadened Policy Portfolio A00026--Accelerating Decarbonization in the United States_Summary.indd 32 Achieve Price-Performance governmental organizations • Finance Tightened Targets for the Parity for Low-Carbon (NGOs), industry • Non-federal actors Buildings and Industrial Solutions associations (e.g., American Sectors and a Backstop for the Chemistry Council [ACC], Transport Sector American Iron and Steel Institute [AISI], Portland Cement Association [PCA], National Association of Manufacturers [NAM], and others), and industry 10-4: Pursue Technologies DOE, NGOs, industry, • Industry • GHG reductions Ensuring Equity, Justice, That Reduce Both industry associations (e.g., • Non-federal actors • Health Health, and Fairness of Impacts Greenhouse Gas and Air ACC, AISI, PCA, NAM, and Tightened Targets for the Pollution Emissions others), and engineering Buildings and Industrial companies Sectors and a Backstop for the Transport Sector Research, Development, and Demonstration Needs 4/13/24 10:29 AM 

10-5: Use Mass- Regulatory and permitting • Industry • GHG reductions Rigorous and Transparent Based Rather Than organizations • Electricity • Health Analysis and Reporting for Concentration-Based NOx • Transportation Adaptive Management Standards 10-6: Develop and DOE, EPA, National • Industry • GHG Reductions A Broadened Policy Portfolio Standardize Life-Cycle Institute of Standards and • Buildings Rigorous and Transparent Assessment Approaches Technology (NIST), and • Transportation Analysis and Reporting for for Carbon Intensity of other relevant agencies • Non-federal actors Adaptive Management Industrial Products Tightened Targets for the Buildings and Industrial Sectors and a Backstop for the A00026--Accelerating Decarbonization in the United States_Summary.indd 33 Transport Sector Research, Development, and Demonstration Needs 10-7: Establish a Program Congress, DOE, • Buildings • GHG reductions A Broadened Policy Portfilio Connecting Market- Department of Commerce • Transportation Rigorous and Transparent Pull Approaches to the (DOC), General Services • Industry Analysis and Reporting for Deployment of Low- Administration (GSA), DoD, • Non-federal actors Adaptive Management Carbon Technologies and DOT • Finance Tightened Targets for the Buildings and Industrial Sectors and a Backstop for the Transport Sector continued 33 4/13/24 10:29 AM 

34 TABLE S-1  Continued Actor(s) Responsible Objective(s) Overarching Categories Short-Form for Implementing Sector(s) Addressed Addressed by Addressed by Recommendation Recommendation by Recommendation Recommendation Recommendation 10-8: Develop Effective Congress, DOE, labor • Industry • Employment Building the Needed Workforce Development associations, NGOs, • Non-federal actors Workforce and Capacity Programs for Industry industry leaders, and academia 10-9: Implement a Congress, DOE, DOC, and • Industry • GHG reductions A Broadened Policy Portfolio Product-Based Tradeable EPA • Finance Tightened Targets for the Performance Standard for Buildings and Industrial Domestic Manufacturing Sectors and a Backstop for the A00026--Accelerating Decarbonization in the United States_Summary.indd 34 and Foreign Trade Transport Sector 11-1: Expand and Extend Congress and EPA • Buildings • Equity Ensuring Procedural Equity Funding and Financing • Transportation in Planning and Siting New Assistance for Actions • Finance Infrastructure and Programs Benefiting Low-Income • Non-federal actors Reforming Financial Markets and Disadvantaged Households and Communities 11-2: Disclose Equity OMB • Electricity • Equity Ensuring Procedural Equity Indicators for Federal • Buildings in Planning and Siting New Funding of Clean Energy • Transportation Infrastructure and Programs • Finance Reforming Financial Markets • Non-federal actors 11-3: Address Limited Treasury Advisory Group • Finance • Equity Ensuring Procedural Equity Access Faced by Low- on Racial Equity in Planning and Siting New Income and Marginalized Infrastructure and Programs Households Reforming Financial Markets 4/13/24 10:29 AM 

11-4: Fill Gaps in Federal Federal agency decision • Finance Rigorous and Transparent Financial Risk Data and makers that are members Analysis and Reporting for Information Collection of the Financial Stability Adaptive Management Rules Oversight Council (FSOC) Reforming Financial Markets 11-5: Strengthen Climate Securities and Exchange • Finance • GHG reductions Rigorous and Transparent Disclosure Rules and Commission (SEC) and • Non-federal actors Analysis and Reporting for Standardize Data and Commodity Futures Adaptive Management Methods Trading Commission Reforming Financial Markets 11-6: Implement Financial FSOC members and the • Finance Reforming Financial Markets Stability Oversight Council Federal Reserve Recommendations to A00026--Accelerating Decarbonization in the United States_Summary.indd 35 Ensure the Stability of U.S. Financial Markets 12-1: Authorize and Congress and state • Fossil fuels • Equity Ensuring Procedural Equity Provide Appropriations transition offices • Non-federal actors • Employment in Planning and Siting New for State Transition Offices Infrastructure and Programs to Address Coal, Oil, and Ensuring Equity, Justice, Natural Gas Community Health, and Fairness of Transitions Impacts Building the Needed Workforce and Capacity Managing the Future of the Fossil Fuel Sector continued 35 4/13/24 10:29 AM 

36 TABLE S-1  Continued Actor(s) Responsible Objective(s) Overarching Categories Short-Form for Implementing Sector(s) Addressed Addressed by Addressed by Recommendation Recommendation by Recommendation Recommendation Recommendation 12-2: Consider Whether Congress and FERC • Fossil fuels • GHG reductions A Broadened Policy Portfolio Proposed Natural Gas • Transportation Managing the Future of the Pipeline Projects Are Fossil Fuel Sector Needed, Incorporate Greenhouse Gas Emissions Impacts into National Environmental Policy Act, and Require the Use of A00026--Accelerating Decarbonization in the United States_Summary.indd 36 Depreciation Periods for Pipeline Application Reviews 12-3: Require Utilities and State regulators of natural • Electricity • GHG reductions Ensuring Equity, Justice, Service Providers to Plan gas distribution utilities • Buildings • Equity Health, and Fairness of for the Transition and fossil fuel supplier/ • Transportation • Health Impacts service providers • Industry • Public engagement Managing the Future of the • Fossil fuels Fossil Fuel Sector • Non-federal actors 12-4: Consider Adoption of States and communities • Fossil fuels • GHG reductions Managing the Future of the Moratoria on New Gas Lines • Non-federal actors Fossil Fuel Sector in Previously Unserved Areas 12-5: Modify the Design of Congress and states • Transportation • GHG reductions Managing the Future of the Taxes on Gasoline, Diesel, • Fossil fuels Fossil Fuel Sector and Petroleum Products • Non-federal actors 12-6: Require Recipients of Congress and recipients of • Fossil fuels • GHG reductions Ensuring Equity, Justice, Health, Federal Funding to Provide federal agency funding • Non-federal actors • Equity and Fairness of Impacts Advance Notice of Facility • Employment Managing the Future of the Closures • Public engagement Fossil Fuel Sector 4/13/24 10:29 AM 

12-7: Fund the Congress, state • Finance • GHG reductions Ensuring Equity, Justice, Decommissioning, Cleanup, legislatures, state • Fossil fuels • Equity Health, and Fairness of and Just Transition for agencies, and state • Non-federal actors • Health Impacts Communities Historically regulators • Public engagement Managing the Future of the Dependent on Fossil Fuels Fossil Fuel Sector 13-1: Establish an Ongoing Executive Office of the • Non-federal actors • Equity Building the Needed Process to Integrate President • Public engagement Workforce and Capacity Feedback into Federal Application and Technical Assistance Processes 13-2: Disburse Capacity- DOE, EPA, DOT, USDA, and • Non-federal actors • Equity Building the Needed Building Funds for State, other federal agencies • Employment Workforce and Capacity A00026--Accelerating Decarbonization in the United States_Summary.indd 37 Local, and Community • Public engagement Recipients Flexibly and Speedily 13-3: Designate an Governors, mayors, and • Electricity • Equity Building the Needed Official or Entity to Track county officials; states, • Buildings • Public engagement Workforce and Capacity Decarbonization Program counties, and cities • Transportation Opportunities and • Industry Deadlines • Non-federal actors 13-4: Structure Federal agencies • Electricity • Equity Building the Needed Competitive Opportunities • Buildings Workforce and Capacity as Non-Competitive • Transportation Planning Grants Followed • Industry by Competitive Grants • Non-federal actors 13-5: Continue to Expand Congress and federal • Electricity • Equity Building the Needed Reliable and Flexible contracting officials • Buildings • Employment Workforce and Capacity Funding to Subnational • Transportation • Public engagement Governments • Industry 37 • Non-federal actors 4/13/24 10:29 AM 

A00026--Accelerating Decarbonization in the United States_Summary.indd 38 4/13/24 10:29 AM