| | | | |  | | By Matthew Choi | Presented by Growth Energy | With help from 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.
| | | — Greens are torn about the Biden administration's recent embrace of fossil energy to meet short-term needs, concerned it could work against long-term climate goals, but mindful of the immediate political impact of high gas prices. — Republicans who have been pushing for more biofuel usage still aren't letting up on their critiques of the Biden administration's energy policy despite a lifting of the summer ban on E15 blends. — Sen. Joe Manchin wants more Canadian oil imports to replace Russian energy. HAPPY WEDNESDAY! I'm your host, Matthew Choi. Congrats to Green Plains' Devin Mogler for knowing DIMITRI was the answer to 6-down in Monday's NYT crossword. For today's trivia: The kittens in "Sagwa the Chinese Siamese Cat" were all named after what fruit? 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: Biden's ethanol Hail Mary.
| | | | GAZPOLITIK: President Joe Biden's latest moves to temper high gasoline prices have environmentalists facing a dilemma: Reject the near-term calls for more fossil fuels as counter to their climate goals or accept the administration's stance as necessary to improve Democrats' political prospects come November. The question came into focus after the administration announced it would waive restrictions on gasoline blended with 15 percent ethanol for the summer driving season in a bid to lower gasoline prices, POLITICO's Josh Siegel, Kelsey Tamborrino and Zack Colman report. While biofuel backers contend it's a crucial part of the clean energy transition, some environmental activists are skeptical about biofuels' benefits in reducing greenhouse gases and see it as another move tying the U.S. to future fossil fuel use. The move follows Biden announcing the country's largest ever release from the Strategic Petroleum Reserve and overt calls from the administration for oil and gas companies to use their federal leases and increase output. The administration maintains that it is committed to combating climate change, both via regulations and a clean energy package in Congress. But the mixed messaging is vexing some climate activists. "It's not even so much that I think the administration is recommitting to oil and gas, it's that nobody can tell what they're trying to do," said Justin Guay, director of global climate strategy at the environmental group Sunrise Project. "They're not telling a coherent story." But other environmentalists close to the White House view it as a necessary bit of realpolitik with polls showing rising gasoline costs are one of the top concerns for voters. "It would be a horrible mistake for the president to do anything but acknowledge the day-to-day angst on fuel costs," said David Kieve, president of Environmental Defense Fund Action. Read more from Josh, Kelsey and Zack here. BIG INFLATION: The administration is also facing added pressure after the Labor Department revealed inflation has hit its highest level since 1981, sparking a chorus of I-told-you-so's from fiscally cautious lawmakers. Gasoline prices are the single largest factor driving up inflation, rising 18.3 percent throughout March, POLITICO's Alex Daugherty reports. "Getting inflation under control will require more aggressive action by a Federal Reserve that waited too long to act," Senate Energy Chair Joe Manchin said in a statement. "It demands the Administration and Congress, Democrats and Republicans alike, support an all-the-above energy policy because that is the only way to bring down the high price of gas and energy while attacking climate change." GOOD NEWS AHEAD: The summer-time E15 measures could be well timed for lower gasoline costs this holiday driving season, according to forecasts by the Energy Information Administration. The data agency expects a gallon of regular gas to fall through the $4 line and average $3.84 this summer. It'd still be the highest average since the summer of 2014, and EIA warns that the markets remain volatile and variables could change. Read more on the forecast from POLITICO's Ben Lefebvre. And some of the world's top banks are also predicting this month's inflation shock could be the worst of it, POLITICO's Ben White reports. Used car prices have started coming down after driving much of last year's inflation, and supply chains are continuing to fortify amid the post-pandemic economic recovery.
| | A message from Growth Energy: President Biden's recent visit to POET-Menlo brought welcome news for American drivers seeking lower-cost fuel options. His administration will lift restrictions on E15 for the 2022 summer driving season, providing drivers uninterrupted access to affordable, lower-carbon fuel – a win for American drivers and our nation's energy security. Thank you to President Biden, Secretary Vilsack, and our lawmaker champions who have helped promote American biofuels as a solution to rising fuel prices. Read more: https://growthenergy.org/2022/04/12/growth-energy-thanks-biden-for-delivering-lower-cost-fuel-options-for-families/ | | | | | | MIXED EMOTIONS AMONG AG LAWMAKERS: The E15 announcement was a major win for farm-state lawmakers who have long demanded more biofuels in the country's energy mix. But it wasn't enough to stave off criticisms from some of those same members, with Republicans continuing to blame the administration for high gas prices in the first place. Farm-state lawmakers have long been pushing for more opportunities to use biofuels as a transition to cleaner transportation and energy. Sen. Tammy Duckworth (D-Ill.) heralded the move as a cost-saver for consumers while driving job growth in the Midwest, saying in a statement she hoped to make the temporary waiver permanent. Republicans were less effusive, striking more of an it's-about-damn-time tone. "I'm glad President Biden is finally listening to what Senator [Joni] Ernst and I have been saying for months," Sen. Chuck Grassley said. "Unlike tapping into the Strategic Petroleum Reserve and begging OPEC for more dirty oil, this is a step toward energy independence, lower gas prices and cleaner air." House Energy and Commerce ranking member Cathy McMorris Rodgers said in a statement that "While biofuels are an important part of our fuel mix, let's be clear-eyed about what this announcement is. It's another temporary attempt that distracts from the energy, inflation, and supply chain crises this administration's policies helped create." INDUSTRY RESPONSE: Meanwhile, the Fueling American Jobs Coalition, which represents refinery workers, questioned the legality of waiving E15 limits, citing an attempt to do so under the Trump administration that was overturned in court. FAJC disputed the move would actually help bring down costs unless there was a major overhaul on the Renewable Fuel Standard, saying the tradable credits under the RFS were driving up prices by overburdening refineries. "The most effective way to lower the price of gasoline at the pump would be to lower the ethanol volume mandate for 2022, which is currently proposed at an unachievable level that keeps RIN prices – and consumer fuel costs – at historic levels," the group said in a statement Tuesday. Advocates acknowledged a permanent solution to enshrine year-round E15 would likely involve congressional action, where the prospects are murky and would likely require concessions on a broader fuels policy reform to get oil backers on board. Rep. Angie Craig (D-Minn.) and Adrian Smith (R-Neb.) introduced legislation last year to grant waivers allowing the sale of higher blend fuels year-round after the D.C. Circuit decision vacating the Trump-era rule. "This gets us to the summer, but now we've got 12 months, and we've got to make this a permanent fix," Growth Energy CEO Emily Skor, who was in Iowa for the announcement, told reporters. INTERESTING OBSERVATION: Former FERC Chair Neil Chatterjee pointed to the makeup of the Senate Energy Committee as a possible roadblock to western expansion of regional transmission organizations. Most of its members are from states that are not part of an RTO, which could be why commissioners so often pass the buck to the states to build out an RTO in the West rather than tapping into their power to take a more direct approach, Chatterjee said during an R Street Institute webinar. Senate ENR handles the confirmation of FERC commissioners. WHERE IN THE WORLD IS JENNIFER GRANHOLM: The Energy secretary is in Arizona today and Thursday as part of the administration's tour on rural infrastructure. Granholm will meet with Rep. Tom O'Halleran and local Indigenous leaders and visit a solar farm.
| | | | DON'T MISS ANYTHING FROM THE 2022 MILKEN INSTITUTE GLOBAL CONFERENCE: POLITICO is excited to partner with the Milken Institute to produce a special edition "Global Insider" newsletter featuring exclusive coverage and insights from the 25th annual Global Conference. This year's event, May 1-4, brings together more than 3,000 of the world's most influential leaders, including 700+ speakers representing more than 80 countries. "Celebrating the Power of Connection" is this year's theme, setting the stage to connect influencers with the resources to change the world with leading experts and thinkers whose insight and creativity can implement that change. Whether you're attending in person or following along from somewhere else in the world, keep up with this year's conference with POLITICO's special edition "Global Insider" so you don't miss a beat. Subscribe today. | | | | | | | | SEND IN THE OIL SANDS: Manchin is pointing north as the U.S. looks for alternatives to replace Russian fuel supplies, saying there shouldn't be a border between the U.S. and Canada when it comes to energy. Speaking with reporters at a news conference in Alberta on Tuesday, Manchin said it was regrettable the Biden administration canceled the Keystone XL pipeline, which would have carried Canadian oil sands down the plains to eventually meet refineries and ports on the Texas coast. But he conceded it's probably too late to revive that project now, or at least under the Keystone XL name, which has become a rhetorical catch-all for Republicans criticizing the administration's energy policy. The pipeline was only 8 percent completed when Biden first came into office and wouldn't have been operational until next year. Manchin said it doesn't make sense to seek crude imports from Venezuela and other OPEC countries when Canada produces oil with far stricter environmental guidelines. "Maybe my administration doesn't realize how well you do what you do," he said to the group of Canadian and U.S. reporters. A White House spokesperson retorted that Canadian crude imports have gone up since the early 90s, including a 4.5 percent increase in 2021 under Biden. The increase in Canadian oil imports from 2008 to 2021 are about double the amount the Keystone XL would have carried, the spokesperson added, citing EIA data. Manchin said the pipeline didn't come up in his discussion (he called it a "sore point for both sides") with Alberta Premier Jason Kenney and offered his thoughts after getting prodded by reporters. Manchin's office said earlier this week the discussion was focused on North American oil and gas more broadly. BUILD BACK BUNNY BOILER: Senate Minority Leader Mitch McConnell offered some candid remarks on Democrats' Build Back Better bill on Tuesday, saying in an interview with the Kentucky Chamber of Commerce that it reminded him "of Glenn Close in Fatal Attraction. Every time I think it's gone, it kind of keeps bouncing back. I don't know if it's in the bathtub yet, but I was not excited about Joe Manchin's suggestion that maybe we ought to start talking about this again." He also signaled support for climate measures focused on technological innovation rather than overhauls of the grid toward renewables. McConnell dismissed the possibility of "clamping down on production" and called Democrats' clean energy goals "completely unrealistic and unattainable." The administration's target of a net-zero grid by the end of the decade and net-zero emissions by 2050 is in line with what international climate scientists say is necessary to avoid the worst impacts of climate change. Read more from McConnell's interview from POLITICO's Anthony Adragna.
| | | | A message from Growth Energy:   | | | | | | GROWTH STUNT: OPEC slashed its forecasts for global economic growth owing to the war in Ukraine (which it diplomatically called the "conflict in Eastern Europe") and new waves of the pandemic. The cartel revised its predicted economic growth for 2022 from 4.2 percent to 3.9 percent, leading to a decrease of 500,000 barrels a day in its predicted world oil demand growth to 3.7 million barrels per day, according to its monthly oil market report. U.S. crude futures broke $100 per barrel on Tuesday after dropping below $97 last Wednesday before settling at $100.60 Tuesday afternoon. Reuters attributed the price increase to easing Covid lockdown restrictions in China and a drop in Russian oil production Monday. ICYMI: But despite the revised outlooks, Europe and the U.S. are still struggling to balance replacements for Russian energy while working toward their climate goals — leading to governments hunting for new sources of fossil fuels. "Of course in the immediate term you need to make sure that you have energy to supply homes and businesses in your country," Alok Sharma, the U.K. minister who presided over last year's COP26 climate talks, told POLITICO's Karl Mathiesen, Zack Colman and Zia Weise. But he said in the longer term "what you will end up seeing is a big acceleration toward clean energy, which ultimately will be obviously a positive for the climate."
| | | | INTRODUCING DIGITAL FUTURE DAILY - OUR TECHNOLOGY NEWSLETTER, RE-IMAGINED: Technology is always evolving, and our new tech-obsessed newsletter is too! Digital Future Daily unlocks the most important stories determining the future of technology, from Washington to Silicon Valley and innovation power centers around the world. Readers get an in-depth look at how the next wave of tech will reshape civic and political life, including activism, fundraising, lobbying and legislating. Go inside the minds of the biggest tech players, policymakers and regulators to learn how their decisions affect our lives. Don't miss out, subscribe today. | | | | | | | | — "How much energy powers a good life? Less than you're using, says a new report," via NPR. — "Ukraine says it thwarted Russian cyberattack on electricity grid," via Reuters. — " Sierra Club suspends Colo. leadership over 'harmful' culture," via E&E News. — "Wisconsin judge: DNR lacks authority to regulate PFAS," via The Associated Press. — "The Clean-Power Megaproject Held Hostage by a Ranch and a Bird," via Bloomberg. — "Giant undersea cables set to give the UK and Germany their first direct energy link," via CNBC. — "Saudi Arabia leads OPEC decision to drop IEA data as US ties fray," via Reuters. THAT'S ALL FOR ME!
| | A message from Growth Energy: President Biden's announcement to lift restrictions on E15 for the 2022 summer driving season will provide drivers uninterrupted access to affordable, lower-carbon fuel.
Not only is this decision a major win for working families and our nation's energy security, it also means cleaner options at the pump and a stronger rural economy. Biofuels like ethanol reduce greenhouse gas emissions by 46% compared to regular gasoline and are key to achieving the president's climate goals.
E15 is approved for use in more than 96% of light-duty vehicles and is available at more than 2,600 gas stations across 31 states.
We are grateful to President Biden and our lawmaker champions who have helped promote American biofuels as a solution to rising fuel prices. We look forward to working with the White House and Congress to deliver a permanent fix to restore year-round access to E15 in the years ahead.
Read more:https://growthenergy.org/2022/04/12/growth-energy-thanks-biden-for-delivering-lower-cost-fuel-options-for-families/ | | | | | | | Follow us on Twitter | | | | Follow us | | | | |
Comments
Post a Comment