| | | | | |  | | By Matthew Choi | With help from Leah Nylen and Kelsey Tamborrino Editor's Note: Morning Energy is a free version of POLITICO Pro Energy's morning newsletter, which is delivered to our subscribers each morning at 6 a.m. The POLITICO Pro platform combines the news you need with tools you can use to take action on the day's biggest stories. Act on the news with POLITICO Pro. | | | — The 2020 pandemic emissions retreat lost some ground last year, pulling the U.S. further away from its mid-century emissions reduction goals. — Democrats' BBB package could give a major boost to geothermal technology, which currently faces financial barriers relative to other low-emissions technology. — The U.S. Chamber of Commerce's members have racked up over $20 billion in environmental penalties since 2000, according to a watchdog report. HAPPY MONDAY! I'm your host, Matthew Choi. Cheniere's Khary Cauthen gets the trivia for knowing the doctor bird is the national bird of Jamaica. For today, finish the lyrics: "You have a talent for causin' things pain. Son, _______. People will pay you to be inhumane." Send your tips and trivia answers to mchoi@politico.com. Find me on Twitter @matthewchoi2018. Check out the POLITICO Energy podcast — all the energy and environmental politics and policy news you need to start your day, in just five minutes. Listen and subscribe for free at politico.com/energy-podcast. On today's episode: BBB's limbo: a torturous wait for geothermal energy. | | | | | | | | STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president's ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today. | | | | | | | | EMISSIONS SWING BACK UP: The U.S. lost some of the ground it gained in cutting its greenhouse gas emissions last year, pushing emissions closer to pre-pandemic levels as the economy continues its recovery, according to research firm the Rhodium Group. The 6.2% rise in emissions outpaced economic growth, with GDP expected to be up 5.7 percent. But they still didn't reach the levels seen in 2019 before Covid shut down swaths of the global economy, Pro's Zack Colman reports. The report shows stunted progress on the administration's goals of reaching economy-wide net-zero emissions by 2050 and a net-zero emission energy sector by 2035. Rhodium pinned much of the emissions spike on a 17 percent increase in coal-fired power generation, owing to a global increase in natural gas prices and a "modest" electricity demand increase. There was also a "rapid rebound" in transportation, which contributes more emissions than any other sector in the United States. Read more from Zack. A GEOTHERMAL REVOLUTION? Democrats' reconciliation package could offer a boon to geothermal, a low-emissions energy source that has long been largely overshadowed by other renewables in the transition from fossil fuels, Pro's Jonathan Custodio reports. The package offers an investment tax credit of up to 30 percent for the technology as well as over $1.1 billion in renewable energy funding for research, development and demonstration, $100 million of which could go toward geothermal. Last year's bipartisan infrastructure package also includes $84 million for demonstration projects. Geothermal's backers say new technology developments could make it a more consistent and reliable alternative to other low-emissions technology, with the Earth's heat offering a constant source of energy invariable to the weather. Enhanced geothermal systems, which employ fracking, could make it more accessible in a wider range of areas, backers say. But the technology faces significant cost headwinds. The Energy Information Administration puts the initial costs for a geothermal energy field and plant at far higher figures than for wind and solar. And there are environmental concerns, with the potential for sulfur dioxide emissions and increased seismic activity. Still, its backers highlight its room for growth as policymakers look to the technology kitchen sink in reducing emissions. "If geothermal were to become affordable, then there's tremendous potential for it to be adopted for electricity generation," Daniel Shawhan, a fellow with Resources for the Future, told Jonathan. "It really could provide a large portion of the world's energy. And in particular, it could be the missing piece in affordably [and] inexpensively achieving [a] net-zero emissions economy." Read more from Jonathan. | | | POLITICO EXCLUSIVE: CHAMBER MEMBERS HAVE PAID $154 B IN FINES: The nation's biggest business lobby accused the Federal Trade Commission of "going rogue" and "waging war on American business," reports POLITICO's Leah Nylen. Now, a consumer advocacy group is going after the Chamber of Commerce for its rhetoric given the number of its corporate members who have broken the law. The Chamber's 111 members have violated state and federal laws nearly 16,000 times, racking up $154 billion in penalties since 2000, according to an analysis by Public Citizen. More than $20 billion in penalties relate to environmental misdeeds. The biggest companies have gotten used to leniency and act with a degree of impunity, Public Citizen's Rick Claypool, who compiled the report, told Leah. "We should take what the Chamber is saying with a heap of salt," he said. "On whose behalf is this outrage really?" The watchdog group says the analysis, released Monday, calls into question the motives of the nation's largest business lobby in criticizing a proposed regulatory crackdown by the Federal Trade Commission. But the Chamber retorted in a Sunday night statement that the allegations were "patently false," arguing that the FTC's "regulatory overreach" is threatening economic recovery from the pandemic. The Chamber's beef with the FTC has focused on its procedures, including the propriety of using votes by departed commissioners, and possible improper influence by the White House on an independent agency — though the lobbying group didn't raise that concern when President Donald Trump sought to force the FTC and Federal Communications Commission to crack down on social media companies. Still, both issues have also been raised by congressional Republicans, who have pledged vigorous investigation of the FTC should the GOP win back control of either house of Congress this fall. Read more from Leah. | | | SOLAR INDUSTRY PRESSES FORWARD ON BBB: The solar industry's top trade group is calling on its members to redouble efforts to pass Democrats' stalled social spending and climate legislation ahead of March 1, when the president is slated to deliver his State of the Union address. "Now's the time. Build Back Better is in the final stretches. An announcement was just made that the president was going to give his State of the Union address on March 1 and that's our new target date," said Dan Whitten, vice president of public affairs at Solar Energy Industries Association, during a webinar Friday. SEIA held the webinar with members ahead of three days of lobbying on the bill this week. The Build Back Better legislation, as currently written, would extend key renewable energy tax credits, as well as provide new incentives for energy storage and make certain facilities eligible for direct pay. Erin Duncan, vice president of congressional affairs at SEIA, said it's possible the bill would undergo changes before it makes it to the Senate floor as Democratic leaders and the president work to bring Sen. Joe Manchin on board . But Duncan said she was "fairly confident" the bill's energy and climate provisions were unlikely to change dramatically. "The solar provisions in Build Back Better are among the least controversial and so that's why solar plays such a central role in trying to get this over the finish line," Whitten added. The group did not speak to the likelihood of passing just the popular climate provisions on their own, but Duncan made clear that the trade group does not view Arizona Sen. Kyrsten Sinema as a challenge when it comes to solar provisions — a sentiment echoed by other climate hawks on the Hill. WATER WORKS WEEK: The Senate is fully back in business this week after the holiday break and a spate of weather complications last week. Here's what's on the docket in committee. The Senate Energy Committee is meeting Tuesday to talk about maintaining and expanding the nation's hydropower. The sector has been pushing for new tax credits to be included in Democrats' reconciliation package to keep current plants on line and to clear out old dams — and the drive has allies on the committee. Sens. Maria Cantwell (D-Wash.) and Lisa Murkowski (R-Alaska) both introduced legislation last year to create a 30 percent investment tax credit for updating and maintaining the current hydro infrastructure. On Wednesday, both the House Transportation and the Senate Environment and Public Works committees will be looking ahead toward crafting a new water resources development bill with both prodding the U.S. Army Corps of Engineers on their civilian water programs. Both panels will hear from Michael Connor, assistant secretary of the Army for civil works, and Lt. Gen. Scott Spellmon, chief of engineers and commanding general of the USACE. The House hearing will be at 10 a.m. while the Senate hearing will be at 2:45 p.m. Senate EPW will also be having a business meeting Wednesday on three environmental nominations: David Uhlmann and Christopher Frey to be assistant administrators at EPA and Martha Williams to lead the U.S. Fish and Wildlife Service. The House Agriculture Committee has a hearing Wednesday on the impact of electric vehicles on agriculture and rural America. Renewable Fuels Association President and CEO Geoff Cooper will testify, making the case for biofuels as a critical part in an "all-of-the-above strategy" to reach net-zero transportation emissions. A PUSH FROM UKRAINE: Ukrainian President Volodymyr Zelensky added his voice Saturday to the throng of lawmakers calling for sanctions on the Nord Stream 2 pipeline from Russia to Germany. Zelensky tweeted that Ukraine "asks all its friends in the US Senate to vote for" legislation pushed by Sen. Ted Cruz to sanction the natural gas project, which critics say could be a political weapon for Russia to coerce its neighbors. But POLITICO's Andrew Desiderio reported last week that Senate Democrats are changing their tune from their opposition to the project last year, hoping not to undermine the Biden administration's Russia agenda as the country arms up along the Ukrainian border. Catch up with more of Andrew's reporting last week. MIDTERM WATCH: In case you missed it over the weekend, Senate Minority Whip John Thune (R-S.D.) and Sen. Ron Johnson (R-Wisc.) announced they are both running for reelection this year. Thune is the number-two Republican in the chamber and widely seen as a potential successor to Minority Leader Mitch McConnell. POLITICO's Marianne LeVine has more on Thune's announcement , and POLITICO's David Cohen has more on Johnson. | | | | BECOME A GLOBAL INSIDER: The world is more connected than ever. It has never been more essential to identify, unpack and analyze important news, trends and decisions shaping our future — and we've got you covered! Every Monday, Wednesday and Friday, Global Insider author Ryan Heath navigates the global news maze and connects you to power players and events changing our world. Don't miss out on this influential global community. Subscribe now. | | | | | | | | FEMA GETS A NOM: Biden plans to name Alice Hill as FEMA's deputy administrator for Resilience, the White House announced Friday. Hill served as special assistant to former President Barack Obama and senior director for resilience policy on the National Security Council staff. She is currently an energy and environment fellow at the Council on Foreign Relations. | | | — "Sen. Ossoff calls on EPA, Army Corps to halt titanium mine near Okefenokee Swamp," via The Savannah Morning News. — "ECB executive warns green energy push will drive inflation higher," via The Financial Times. — "How Six States Could Transform the U.S. Trucking Industry," via Bloomberg. — "Why Tesla Soared as Other Automakers Struggled to Make Cars," via The New York Times. THAT'S ALL FOR ME! | | | | Follow us on Twitter | | | | Follow us | | | | |
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