Climate change

Major headwinds for the muni market include climate change, growing federal debt, shrinkage of the workforce, the impact of remote work, cybersecurity attacks, and political polarization. And they are poised to be costly for states and municipalities.

The grants come from the IRA's flagship Greenhouse Gas Reduction Fund program, which separately provides $7 billion for states and cities that has yet to be announced.

In "my nearly 50 years in finance, I've never seen more demand for energy infrastructure," BlackRock CEO Larry Fink said in his latest investor letter.

The loan is part of an Inflation Reduction Act program that finances the restart of renewable energy projects that have ceased operations.

Only one of 14 legacy generation facilities were operating normally at the end of January, suggesting less recovery for bondholders.

The House Financial Services Subcommittee on Oversight and Investigations gathered in Tennessee on Monday to discuss the implications of the SEC's newly finalized climate rule.

"Insurance rationing by the leading insurers is becoming the mechanism by which climate risk is starting to impact municipal issuers," said Triet Nguyen, vice president of strategic data operations at DPC Data.

The new SEC climate rule does not apply directly to municipal issuers but they may very well be on the hook for violating SEC antifraud provisions if they don't disclose those risks defined in the new rules.

Detroit, which has several climate-friendly projects in the pipeline, is seeking a tax advisor to help navigate snag tax credits in the Inflation Reduction Act.

In addition to repowering the nuclear plant, the Palisades owner wants to build a pair of new small modular reactors, which would mark another first in the U.S.

Extreme weather could aggravate growing property insurance pressures on governments.

A new regulation requiring state and local transportation departments to reduce greenhouse gas emissions would limit spending flexibility, opponents say.

The current property insurance crisis in several states may dramatically shorten the climate risk horizon for municipal investors. The municipal market's relaxed attitude toward climate risk may be seriously challenged in the years ahead.

Ohio last week opened the first, and so far only, electric vehicle charging station funded under the Bipartisan Infrastructure Law.

Washington Gov. Jay Inslee announced the state would use better-than-expected carbon-pricing revenues to accelerate the state's climate change efforts.

It's the second try for the bill, which Sen. Dick Durbin, D-Ill., first introduced in 2021.

Cities and states are eligible to apply for the program, which gives eligible solar and wind facilities in low-income areas increased investment tax credits of 10% or 20%.

States are required to reduce vehicle-related greenhouse gas emissions under the rule that was finalized last week.

Record-breaking hot temperatures in the Southwest this summer likely had economic consequences and could focus the municipal bond market on heat-related credit risks and infrastructure needs.

The Gulf of Maine offers "significant opportunities" for offshore wind energy development, federal authorities announced. That's good news for state officials hoping to tap the technology's potential to meet green energy goals.