| | | | | |  | | By Matthew Choi | With help from Josh Siegel 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. |  | Quick Fix | | — Senate Energy Chair Joe Manchin calmed some climate anxiety, reiterating that he was on board with the clean energy aspects of the BBB. But that will have to wait until Democrats work out their voting rights bill. — Trump EPA chief Andrew Wheeler is slated to be named Virginia's Secretary of Natural Resources by incoming Republican Gov. Glen Youngkin. — The White House sent back several energy and environment nominees to the Senate after the upper chamber closed out for the year without voting on them. HAPPY WEDNESDAY! I'm your host, Matthew Choi. Herzlichen glückwunsch to NRDC's Ed Chen for knowing Bavaria is the largest state in Germany. For today's trivia: In what Mongolian city did Volodymyr Zelensky live as a child? 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: Manchin open to 'realistic' climate provisions. | | | | | | | | 
Sen. Joe Manchin (D-W.Va.) speaks to reporters outside of his office on Capitol Hill on Jan. 4 in Washington, D.C. | Anna Moneymaker/Getty Images | ROOM FOR AGREEMENT: Sen. Joe Manchin affirmed that there's a fair amount of consensus between him and the rest of the Democratic caucus on the climate portions of the Build Back Better Act. Speaking with reporters Tuesday, the West Virginian said "the climate thing is one that we probably could come to an agreement much easier than anything else," echoing an optimistic mood his climate-focused peers have been projecting in the days since Manchin voiced his opposition for the overall package last month. "Sen. Manchin's comments are very encouraging," climate hawk Sen. Sheldon Whitehouse (D-R.I.) told Pro's Josh Siegel. "I continue to seek ways to work with him, and look forward to passing serious climate provisions that meet scientific emission reduction targets." Good things come to those who wait: But Manchin emphasized that this was just a reassertion of his position since he first shook up the hill by rejecting the overall package. And he tempered any hopes for major breakthroughs on the bigger bill in the next few days, saying "there is no negotiations going on at this time." (Other Democrats, including Senate Majority Leader Chuck Schumer said discussions will continue off the floor). Senate Majority Whip Dick Durbin reiterated to reporters Tuesday that the caucus' focus for now is their voting rights legislation — which Schumer is pushing to the point of threatening to overhaul filibuster rules — and that "we'll return to Build Back Better as soon as that is done." That timeline didn't seem to bother some of the Senate's biggest climate hawks. Sens. Brian Schatz, Tina Smith and John Hickenlooper asserted at a League of Conservation Voters event that the climate provisions would get passed "come hell or high water" simply because they were dealing with an existential issue. When asked if there was a timeline to get the package passed this month, Schatz said "We'll get this done as soon as we have the votes. And if that's tomorrow morning, that's when we'll do it. If it's Feb. 7, that's when we'll do it." That's quite a contrast to the parade of deadlines that framed Democrats' outlook on the legislation through the second half of last year. Where to trim: Timing isn't the only concession still on the table. Smith didn't rule out making sacrifices on the social spending portions of the package to make sure the $550 billion in BBB's climate spending makes it past the finish line. "Everybody on this call strongly supports the Child Tax Credit," she said, "but we've got to figure out what you got [to do to get] support amongst 50 people." That doesn't mean that Democrats are on board for breaking BBB apart and sending a climate-only bill at this time. Lawmakers are still by and large pushing for a big-tent legislative package, and a spokesperson for the Senate's key tax writer, Ron Wyden, said he is still focusing on drug pricing, ACA subsidies and the Child Tax Credit in addition to clean energy and that Wyden is "not at the point where he would want to move that as a standalone." The stakes: Without the climate provisions of BBB, Smith doubted executive action alone will be able to reach the administration's emissions goals of 50-52 percent emissions reductions by 2030 and net-zero emissions by 2050. The Obama administration largely led its environmental drive via the regulatory route after the collapse of the Waxman-Markey cap-and-trade bill a decade ago, and the Congressional Progressive Caucus is pushing for President Joe Biden to take executive action to get the ball rolling on BBB's agenda while the legislation ferments on the Hill. "But I also don't think that regulatory action is a substitute for congressional action," Smith said. Read more from Pro's Kelsey Tamborrino on Manchin's latest remarks, and POLITICO's Anthony Adragna has some key takeaways from Tuesday's LCV presser. ME SCOOP: WHEELER BACK IN ACTION: Virginia's Republican Gov.-elect Glenn Youngkin will nominate former Trump EPA chief Andrew Wheeler later today as his Secretary of Natural Resources, Josh has exclusively learned. Wheeler, who's been a conservative Senate staffer, lawyer and energy lobbyist, spent his tenure atop EPA implementing a deregulatory agenda targeting Obama-era environmental and climate change rules in the name of "regulatory certainty" for businesses. As Virginia's top environmental official, he'd likely be charged with implementing Youngkin's pledge to remove the state from the Regional Greenhouse Gas Initiative, a cap-and-trade market among states in the Northeast and Mid-Atlantic that aims to reduce carbon emissions from the power sector. Youngkin was quiet on energy policy during his campaign beyond promoting an "all-of-the-above" mantra popular with Republicans while trumpeting the cost competitiveness of renewables. Wheeler has remained busy since leaving EPA, joining Advancing American Freedom, a conservative nonprofit started by former Vice President Mike Pence, and the Heritage Foundation. He recently testified against a proposed 5-cent tax on disposal plastic bags in Fairfax County, Va. | | | | 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. | | | | | | | | ROUND TWO FOR ENERGY NOMS: The White House sent dozens of nominations back to the Senate on Tuesday, including for several key environmental and energy positions. The renominations are a formality after the upper chamber ended last year's session without voting to confirm them. Among the names in the energy and environment space are Chris Frey, David Uhlmann and Carlton Waterhouse for assistant administrator positions at EPA; Shalanda Baker to head DOE's Office of Minority Economic Impact; Asmeret Asefaw Berhe to lead DOE's Office of Science; Maria Robinson to be assistant Energy secretary for the Office of Electricity; and Laura Daniel-Davis to be an Assistant Secretary of the Interior. Read the full list of nominees here. ME FIRST: EEI CALLS FOR CLEAN ENERGY IN BBB: The Edison Electric Institute is putting its weight behind passing the clean energy provisions under the BBB bill. The association of investor-owned electric companies heralded technology-neutral clean energy tax credits in particular — which form the roux to Democrats' climate gumbo — as "allowing electric companies to achieve even deeper carbon reductions while preserving electric reliability and affordability for the customers and communities they serve." The group name checked the solar production and investment tax credits, clean energy direct pay option, production tax credits for existing nuclear, alternatives to tax normalization for regulated electric companies, EV tax credit expansion and new tax credits for storage, transmission and hydrogen. Read EEI's full statement here. | | | BIOFUEL BACKLASH: EPA drew some pointed criticism from industry groups on all sides of the biofuels debate during its public hearing Tuesday over its proposed biofuel blending volumes for 2020, 2021 and 2022. Representatives who spoke virtually underscored the mixed bag offered by the potential rule, raising alarms over supply chain concerns, further delays under the program and the potential precedent set for the future of the Renewable Fuel Standard. "When it comes to setting annual blending obligations under the RFS, it seems like EPA's strategy in previous rulemakings has been to make sure neither biofuel producers nor oil refiners are completely satisfied, leading the agency to mistakenly believe it got the volumes just right," said Brian Jennings, CEO of the American Coalition for Ethanol. In particular, the agency's proposal to retroactively lower the 2020 volumes "would set a dangerous precedent and would be inconsistent with the EPA's long-held position," said Geoff Cooper, president and CEO of the Renewable Fuels Association. Michael Burnside, a policy analyst at American Fuel and Petrochemical Manufacturers, meanwhile said the plan to raise the volumes for 2022 did not reflect market demand, infrastructure constraints or production. "It is unreasonable to propose 15 billion gallons for conventional biofuel in 2022 as if the pandemic never happened," he said in his testimony. While EPA officials didn't tip their hands, the hearing also offered an opportunity for groups to press the agency on how it should approach the future of the program as it sets volumes for 2023 and beyond. "My hope is that this is a reliable signal in continued growth in 2023 and beyond," said Dave Walton of the National Biodiesel Board of the biodiesel volumes. Brooke Coleman, executive director of the Advanced Biofuels Business Council, added that previous RFS enforcement has created a "believability problem" throughout the supply chain. "It's all retroactive compliance alleviation that undercuts innovation investment," he said. IMPLEMENTING BIF: The White House is calling on the states to select point-people to oversee their implementation of the bipartisan infrastructure package — a tactic akin to the state coordinators who helped execute the 2009 stimulus package. White House infrastructure coordinator Mitch Landrieu wrote to governors Tuesday requesting they "consider appointing a high-level person to serve as your state's own Infrastructure Implementation Coordinator," who "would work with your budget team and across departments responsible for transportation, water, broadband, and energy investments to coordinate implementation of the various infrastructure programs." A handful of states have already made moves on that front. New Mexico Gov. Michelle Lujan Grisham named three new state advisers for broadband, infrastructure and water, and Arkansas Gov. Asa Hutchinson created a new "governor's infrastructure planning advisory committee." The White House plans to issue guidance for states on how to use the package's new funding, including on financial oversight, labor and manufacturing, equity and environmental concerns. Read more from Pro's Tanya Snyder who snagged a copy of Landrieu's letter. | | | OPEC STAYS THE COURSE: As expected, OPEC and its allies agreed to continue with its monthly oil output increases next month, upping shipments by 400,000 barrels per day in February, The Financial Times reports. The cartel has so far kept to its plan to gradually increase supplies to return to pre-pandemic levels despite pressure from the Biden administration late last year for a more rapid release to help ease global fuel prices. OPEC's move shows the cartel isn't worried that the Omicron variant will hurt crude demand. Read more from FT. FRANCE CONSIDERS THE NUCLEAR ALTERNATIVE: France may let its three coal power plants burn more coal this winter to accommodate a potential shortfall in generation as several of its nuclear plants undergo maintenance, Bloomberg reports. A recent draft proposal by the Ecology Ministry would let the plants operate for about 1,000 hours in January and February — 300 hours more than the annual cap set in 2019. The French government emphasized that it would be a temporary measure to bridge over the winter months and would return to a 700-hour limit in 2023. France and Germany are butting heads over a recent European Commission proposal to dub both nuclear and natural gas as sustainable under its investments labeling scheme. While France gets the overwhelming majority of its electricity from nuclear, Berlin views the energy source as dangerous due to concerns over waste disposal. | | | | 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. | | | | | | | | — Bill Parsons is joining the American Clean Power Association as vice president for federal and state affairs, a newly created role. Parsons joins ACP from the American Council on Renewable Energy, where he was chief operating officer. Prior to that, he was chief of staff and legislative director to then-Rep. Chris Van Hollen of Maryland. The news comes just after ACPA announced its new board, which includes representatives from the wind, solar and storage sectors, as well as a variety of financial, construction, utilities and manufacturing backgrounds. Read the full lineup of the new board here. | | | — "A Widening Web of Undersea Cables Connects Britain to Green Energy," via The New York Times. — "These homes are off-grid and climate resilient. They're also built out of trash," via The Washington Post. — " Prince Charles Says 'Our Children Are Judging Us' On Climate Change," by Prince Charles himself via Newsweek. THAT'S ALL FOR ME! | | | | Follow us on Twitter | | | | Follow us | | | | |
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