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Greens' last-ditch push on climate legislation

Presented by Chevron: Delivered daily by 10 a.m., Morning Energy examines the latest news in energy and environmental politics and policy.
Apr 26, 2022 View in browser
 
POLITICO's Morning Energy newsletter logo

By Kelsey Tamborrino

Presented by Chevron

With help from Catherine Morehouse, Josh Siegel, Ben Lefebvre and Alex Guillén

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

— Congress' return this week brings renewed pressure from environmental advocates who see the next few weeks as their last best chance to pass party-line legislation to address climate change.

— The Bureau of Land Management released a new record of decision Monday that reverted management of the National Petroleum Reserve-Alaska back to a 2013 plan.

— The White House has withdrawn the nomination of Amanda Howe to run the Office of Mission Support at EPA, it announced Monday.

GOOD MORNING! IT'S TUESDAY and I'm your temporary host, Kelsey Tamborrino. Congrats to the International Brotherhood of Electrical Workers' Sergio Espinosa for knowing the two ports where the Titanic picked up passengers between Southampton and the iceberg on its maiden voyage: Cherbourg, France and Cork, Ireland. For today's trivia question: The movie "Clueless" was loosely based on which Jane Austen novel? Send your tips and trivia answers to ktamborrino@politico.com and mchoi@politico.com. Find me on Twitter @kelseytam and Matthew @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: Why natural gas is for carbon pricing.

 

A message from Chevron:

The Permian Basin in Texas and New Mexico is one of America's most prolific oil and natural gas resources. By the end of this year, we plan to increase Chevron's Permian oil and natural gas production by 10% while continuing to reduce our operations' carbon and methane emissions intensities.

 
Driving The Day

GREENS GROUPS' CLIMATE HAIL MARY: Green groups are blitzing Capitol Hill this week to press Democrats on salvaging the core clean energy components of the Build Back Better legislation that Sen. Joe Manchin halted last year, as the West Virginia senator is sending out feelers on bipartisan support for climate action.

The effort comes as the White House acknowledged the domestic policy package remains a "big priority" for the president, with two senior White House aides telling House Democratic chiefs of staff this week that the administration is having ongoing conversations about the path to resuscitating at least some parts of the climate and social spending bill, as our Congress team reported.

While environmental groups last year saw Biden's agenda as consistent with the "Green New Deal" strategy to link environmental action with related investments in education, health care and affordable housing, many now say it's time to toss in the towel on some of the progressives' social policies in order to secure a narrower deal on Manchin's terms, Pro's Josh Siegel and Zack Colman report this morning.

"We have no doubt this is the last chance to get reconciliation done," said Christy Goldfuss, senior vice president for energy and environment policy with the Center for American Progress. "We are talking years if not another decade before we get another opportunity. It's either going to come together now around that framework that Sen. Manchin has said he has agreed to, or it's over. We feel the finality of this across the climate movement."

Manchin is pressing President Joe Biden to restart new offshore oil and gas lease sales and expedite exports of natural gas to increase U.S. energy security and lower inflated energy prices. And green organizations are inclined to accept a trade-off for legislation that helps speed the growth of clean energy that offers a short-term boost for fossil fuels in order to reach a deal by Memorial Day, Josh and Zack report.

"There may be a price to be paid on the [oil and gas] supply side, and it might hurt," said Melinda Pierce, legislative director of the Sierra Club.

Sen. Joe Manchin speaks during a news conference.

Senate Energy Chair Joe Manchin. | Jacquelyn Martin/AP Photo

Manchin, for his part, is separately trying to find some consensus on a bipartisan climate and energy package. Julie Tsirkin of NBC News reported last night that the West Virginia senator and Sen. Lisa Murkowski (R-Alaska) organized a climate-focused meeting Monday night on the Hill, including Sens. Brian Schatz (D-Hawaii), Tom Carper (D-Del.), Mark Warner (D-Va.), Mark Kelly (D-Ariz.), Kevin Cramer (R-N.D.) and John Hickenlooper (D-Colo.) and Rep. Ro Khanna (D-Calif.).

"Tonight's meeting was an effort to gauge bipartisan interest in a path forward that addressed our nation's climate and energy security needs head on," Manchin's spokesperson confirmed to ME.

Cramer also told ME he thinks Manchin is "genuinely interested in seeing what's possible given the moment we find ourselves in with Europe asking for our help and Americans frustrated with energy inflation." He said he hopes to do something outside reconciliation, but couldn't speak for Manchin's preference.

 

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.

 
 
Around the Agencies

BLM'S 2013 THROWBACK: The Bureau of Land Management signed a record of decision Monday restoring the management of the National Petroleum Reserve in Alaska to the plan set by the Obama administration. The decision to revert the leasable land back to the 52 percent level set in 2013 comes after the Trump administration had green-lit oil and gas drilling across about 82 percent of the reserve. The decision ensures the NPR-A will be managed consistent with the 2013 plan "while including certain more protective lease stipulations and operating procedures for threatened and endangered species," BLM said in its announcement.

Kristen Miller, conservation director for the Alaska Wilderness League, called returning to the 2013 management plan "the right move in the near term," which will restore protections to critical areas like Teshekpuk Lake.

But Kristen Monsell of the Center for Biological Diversity said the move was not enough "at a time when we desperately need to end Arctic oil leasing." Monsell added: "Addressing the climate emergency means ending new fossil fuel extraction, and we can't keep going in the opposite direction."

HOWE OUT: The White House on Monday withdrew the nomination of Amanda Howe to run EPA's Office of Mission Support. The White House and EPA did not return questions about the withdrawal. Howe, a longtime Democratic official in Virginia and New York City, sailed through committee in December in part because OMS is primarily an administrative branch of EPA, not a regulatory one. But she has not advanced since then. Sens. Cynthia Lummis (R-Wyo.) and Bill Cassidy (R-La.) have placed holds on all pending EPA nominees over policy spats with the agency, preventing Howe from securing a quick confirmation.

FERC GETS MORE FEEDBACK ON GHG POLICY:  Comments trickled in Monday afternoon as various groups — again — gave FERC their thoughts on its proposed pipeline policy statements that would update how the agency permits fossil fuel infrastructure.

Industry groups maintained that FERC's proposed rule changes discourage investment in gas infrastructure and inject uncertainty into the natural gas market at a time when the U.S. needs to strengthen domestic energy production. EPA, meanwhile, expressed support for the proposals, arguing the new guidance "better aligns" the independent agency with its statutory authorities. States were also split on the proposal, with utility regulators in Ohio and Louisiana largely echoing the concerns of industry, and New York and New Jersey environmental and ratepayer offices supporting stronger standards.

"The status quo isn't working for frontline communities and the planet," said Moneen Nasmith, senior attorney at Earthjustice, in a statement. In their comments, Earthjustice, NRDC, Sierra Club, Environmental Defense Fund and Food and Water Watch called on FERC to provide regularity certainty, legal durability and protect vulnerable communities.

FERC initiated another comment period during its March meeting when it decided to change both its policy statements to drafts and solicit more feedback before applying new guidance to the industry. The decision followed weeks of blowback from industry and lawmakers after the rules were first proposed in February.

NO LNG PASS FOR FERC: Consumer advocacy group Public Citizen is challenging a FERC decision to not exercise regulatory authority over a small liquefied natural gas terminal in Florida, arguing the commission erred in finding the facility is not subject to federal oversight.

FERC in March agreed with the project's argument that it did not fall under the agency's jurisdiction because it's located about a quarter mile from the point of LNG export, and doesn't directly transport the fuel for export. Instead, its fuel is loaded onto a truck which then transports the LNG to the cargo ships that would export the resource. But Public Citizen argues FERC has no discretion on when it can exercise its authority over LNG export terminals.

"Congress has defined LNG terminals subject to the Commission's exclusive authority so expansively the Commission has no choice but to regulate any onshore facility (that is, one on land) engaged in the export of natural gas, regardless of whether it is liquefied, processed, or transported in boxes of Cracker Jack," the group wrote in its request for rehearing on the order.

Public Citizen plans to bring the case to a federal appeals court if FERC doesn't "completely reverse themselves," which seems "unlikely," according to Tyson Slocum, the group's energy program director. "We're really shocked at how sloppy the FERC order is. They messed just about everything up," he said in an email.

ADD ANOTHER LAWSUIT TO THE PILE: Friends of the Earth becomes the latest environmental group to file a freedom of information lawsuit stemming from the Interior Department's oil leasing program report. FOE's suit in the U.S. District Court for the District of Columbia targets the White House's Council of Environmental Quality, saying the agency hasn't responded to requests for "information concerning potential political interference" in Interior's November 2021 report.

The lawsuit joins the one that Center for Biological Diversity and other groups filed in March seeking a first draftof the report that Interior sent to the White House. Environmental groups have criticized Interior's final report, saying that it did not go far enough to stop oil and gas drilling on public land.

MARK YOUR CALENDARS: EPA will finalize its proposed renewable volume obligations by no later than June 3 under a consent decree approved by the U.S. District Court for the District of Columbia. Your ME host has the details for Pros.

 

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On the Hill

FOR YOUR RADAR: The House will meet this afternoon to consider several natural resources bills under suspension of the rules, including legislation from the late Rep. Don Young (R-Alaska) to establish an Alaska salmon research task force and another bill from Rep. Debbie Dingell (D-Mich.) to reauthorize the Great Lakes Fish and Wildlife Restoration Act of 1990.

Movers and Shakers

— Cynthia Giles, who served as EPA's enforcement and compliance chief under the Obama administration, has returned to the agency as a senior adviser in the Office of Air and Radiation. Giles will focus on ensuring regulations are designed to promote compliance from the beginning, Pro's Alex Guillén reports.

— Adam Beitman joins RMI as head of global communications for the organization's work in the electric sector in the U.S., China, India and global south. He was previously deputy director of media relations at the Sierra Club.

 

JOIN US ON 4/29 FOR A WOMEN RULE DISCUSSION ON WOMEN IN TECH : Women, particularly women of color and women from disadvantaged socioeconomic backgrounds, have historically been locked out of the tech world. But this new tech revolution could be an opportunity for women to get in on the ground floor of a new chapter. Join POLITICO for an in-depth panel discussion on the future of women in tech and how to make sure women are both participating in this fast-moving era and have access to all it offers. REGISTER FOR THE CHANCE TO JOIN US IN-PERSON.

 
 
The Grid

— "In Texas, thousands in fines paid by oil and gas polluters benefit the fossil fuel industry," via Floodlight and the Texas Tribune.

— "FirstEnergy should pay nearly $1.5 billion in penalties for misusing grid-modernization fee, state agency argues," via Cleveland.com.

— "Gas-engine bans drive landscapers toward electric mowers and blowers," via The Wall Street Journal.

— "Wind power's 'colossal market failure' threatens climate fight," via Bloomberg.

— " Environment group warns Shell board on liability for emission targets," via Reuters.

THAT'S ALL FOR ME!

 

A message from Chevron:

Balancing energy security, costs, and the need to reduce emissions have become an increasingly important part of the energy conversation at home and abroad. In the Permian Basin, we plan to increase oil production by 10% in 2022 while continuing to reduce both carbon and methane emissions intensities. And in the years to come, we expect to grow our Permian production beyond 1 million barrels of oil equivalent per day. Every day, we look for opportunities to make our own environmental footprint smaller as we strive to produce energy that Americans—and customers throughout the world—can count on. Find out more.

 
 

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