| | | | |  | | By Kelsey Tamborrino | Presented by Chevron | With help from Josh Siegel, Jordan Wolman, Ben Lefebvre and Gloria Gonzalez 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.
| | | — Sen. Joe Manchin (D-W.Va.) shared more insight into his hopes of resurrecting a bipartisan deal on climate and energy legislation. But Republicans and Democrats alike are leery the chamber can come to an agreement. — Solar industry executives who oppose the Biden administration's probe into modules from four Southeast Asian countries are on the Hill today to make their case that the Commerce Department should quickly issue a negative determination. — Democrats on the House Natural Resources Committee are pressing ConocoPhillips on the natural gas leak at its Alpine field in Alaska. The lawmakers are connecting the Alpine leak to Conoco's application to drill for oil at its proposed Willow project, which could become a political issue. WELCOME TO WEDNESDAY! I'm your host once again, Kelsey Tamborrino. Congrats to Jillian Neuberger of the World Resources Institute, who knew the movie "Clueless" was loosely based on Jane Austen's "Emma." For tomorrow: Who is the only person to receive an Oscar nomination for acting in a Star Wars movie? 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: A climate crossroads for greens
| | | | | 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. | | | | | | THE STATE OF PLAY: Manchin raised eyebrows this week when he said he was launching bipartisan talks into climate and energy legislation — despite separate efforts to revive the long-stalled budget reconciliation package that he quashed late last year. But the West Virginia Democratic senator clarified Tuesday that he's not throwing in the towel on Democrats' social spending and climate bill. Instead, the Energy chairman said he sees a party-line bill this year as a way to reform the tax code, POLITICO's Marianne LeVine, Anthony Adragna and Josh Siegel report. "Reconciliation for me is about getting inflation under control, paying down this debt, getting a handle on what's going on" through tax reform, he told reporters after meeting with Majority Leader Chuck Schumer . Manchin said his bipartisan energy discussions did not mean climate change provisions would be left out of any reconciliation bill that can advance, adding climate would be a "big factor" as lawmakers assemble party-line legislation. But it remains to be seen what impact the discussions will have. Republicans who participated or were invited to the meeting sounded dubious that any deal would ultimately come together. "Is there something that can attract 10 Republicans that doesn't scare away 10 Democrats?" said Sen. Kevin Cramer (R-N.D.). "If it starts looking like a reconciliation or Build Back Better, then obviously Republicans will be out." Democrats similarly are leery. "I think that's going to be a heavy lift. If he can do it, great," Sen. Ben Cardin (D-Md.) said. "I think the easier path is reconciliation." Environment and Public Works Chair Tom Carper (D-Del.) called Manchin's bipartisan effort "a good move," adding there are provisions that were included in what used to be called Build Back Better that can be supported by Democrats and Republicans. "There is an opportunity to walk and chew gum at the same time," Carper said. "There is an opportunity to work toward a bipartisan bill to the extent we can. At the end of the day, if we can't get as much done as we need to with respect to climate, the idea to use reconciliation is something I would not rule out." But there haven't been many specifics on where Democrats and Republicans can find compromise. Cramer offered incentives for nuclear power and carbon capture as potential options. "There is something I would love to see — make it more useful, direct payments that can lead to a commercialization of carbon capture technologies," he said, before adding that "it would be crazy to not have nuclear on the table." But Sen. Jeff Merkley (D-Ore.) said that while talks on a transition to renewable energy are productive, doubling down on fossil fuels would be "very damaging to the planet." And if you're wondering where House progressives stand on the topic: "About as encouraging as another Russian promise of a humanitarian corridor," Rep. Jared Huffman (D-Calif.) told ME.
| | | | 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. | | | | | | | | SOLAR INDUSTRY AIMS TO SHINE LIGHT ON TARIFF PROBE: Solar developers are hitting Capitol Hill today to warn against the Commerce Department's recent investigation into solar modules from four Southeast Asian nations, which they argue will cut jobs and solar capacity. The Solar Energy Industries Association is out with new data, which your ME host detailed here, on the impact of the anti-circumvention probe that is examining whether imports from Cambodia, Malaysia, Thailand or Vietnam are being used to avoid existing duties on imports from China. SEIA forecasts solar installations for 2022 and 2023 would be cut by 46 percent due to the investigation and about 100,000 jobs in the solar industry would be lost should the department issue an affirmative determination. As of 2020, more than 230,000 U.S workers were employed in the solar industry. The trade group also surveyed more than 700 respondents in the industry and found that 83 percent reported module supply cancellation or delays stemming from the probe. John Smirnow, SEIA's general counsel and vice president of market strategy, told ME there will be more than 50 senior executives "storming" the Hill today and meeting with members and staff. "One clear message: Commerce needs to issue a negative preliminary determination immediately. The damage that this case is doing to the industry is unacceptable," Smirnow said. Dan Whitten, vice president of public affairs at SEIA, added the executives will be asking Congress to pass reconciliation and to take "any steps" they can to help make the case for termination of the circumvention case as quickly as possible. For your radar: Commerce Secretary Gina Raimondo will appear on the Hill today to pitch her department's budget before the Senate Commerce Committee. FROM ALPINE TO WILLOW: Democrats on the House Natural Resources Committee are pressing ConocoPhillips to answer questions on the natural gas leak at its Alpine field in Alaska. The leak, which forced the company to evacuate 300 people from the site, started because of a faulty cement well casing, according to status reports the Alaska government released. Now, Chair Raúl Grijalva (D-Ariz.) and Reps. Alan Lowenthal (D-Calif.) and Katie Porter (D-Calif.) in a letter to ConocoPhillips Chief Executive Ryan Lance want to know why ConocoPhillips took a month to identify the source of the leak and hadn't known about the shallow natural gas formation from where the gas originated. The lawmakers gave ConocoPhillips a May 13 deadline to respond. The lawmakers also connect the Alpine leak to ConocoPhillips' application to drill for oil at its proposed Willow project in Alaska now pending before the Interior Department. "The ongoing leak and ConocoPhillips' response raises a number of troubling questions, including how your company would respond to similar leaks at your proposed Willow project," the lawmakers wrote in the letter. A ConocoPhillips spokesman said there is no ongoing gas release and the company will incorporate lessons learned from this event to future projects.
| 
House Natural Resources Chair Raúl Grijalva. | Chip Somodevilla/Getty Images | TURN ON THE SPIGOT … IF YOU DARE: Grijalva rejected the Republican and industry push for additional permitting for oil and gas production in the United States. The industry has been granted permits that cannot be taken away and is not using them, he said. "Public policy is not shutting off the spigot," Grijalva said at an event hosted by Climate Power on Tuesday. "The spigot is being turned off, just to a dribble," he said. "That's industry's decision. Not public policy. And so if the spigot needs to be turned on, they need to turn on the spigot. But they haven't because it doesn't play into the market. It doesn't play into the business side of it." Ramon Cruz, president of the Sierra Club, said the industry knows that "their days are numbered and they are using the current crisis to then ask for more expansion. If you start with expansion now, that is not for the short-term, current crisis. That's their strategy to basically bring more life support to their dirty business." Nearly two out of three leases are producing natural gas and oil, Frank Macchiarola, senior vice president of policy, economics and regulatory affairs for the American Petroleum Institute, said in an emailed statement. "With production still below pre-pandemic levels and an imbalance between supply and demand that is being exacerbated by the Russian invasion into Ukraine, it's time for the administration to support domestic production and send a message that America is open for energy investment," he said. MINE THE GAP: Grijalva and Sen. Martin Heinrich (D-N.M.) introduced legislation Tuesday to reform hardrock mining taxes and cleanup rules against a backdrop of soaring demand for minerals, Pro's Jordan Wolman reports.
| | | | 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. | | | | | | | | LET THERE BE LIGHT BULB RULES: The Biden administration announced two finalized light bulb efficiency rules Tuesday to cut emissions and phase out older bulbs. One of the rules requires that bulbs produce at least 45 lumens per watt, in line with a target Congress first mandated in 2007. Lawmakers had set a Jan. 1, 2020 backstop for the target to go into effect should the Energy Department not complete a rulemaking. The Obama administration had determined the legal backstop had been triggered to put the level into effect, but the Trump administration halted the move, later concluding the backstop had not been triggered. The second rule applies the new efficiency standard to a broader array of common bulb types. The new standards are projected to cut carbon emissions by 222 million metric tons over 30 years and save consumers nearly $3 billion per year on their utility bills, according to DOE. The department offered distributors and manufacturers a gradual timeline to transition their existing inventory, holding off full enforcement until January 2023 for manufacturers and until July 2023 for distributors. LPO BACKS HYDROGEN FACILITY: The Loan Programs Office at DOE announced Tuesday it offered a conditional commitment for a $504.4 million loan guarantee to the Advanced Clean Energy Storage Project, a Utah-based facility that could be the world's largest industrial green hydrogen production and storage facility.
| | | | A message from Chevron:   | | | | | | SECOND RGGI CHALLENGE: A group of fossil fuel allies have filed a preliminary injunction request in a Pennsylvania court in yet another attempt to stop the state's participation in the Regional Greenhouse Gas Initiative. The group, which includes the Pennsylvania Coal Alliance, the International Brotherhood of Electrical Workers, and the United Mine Workers of America, filed its legal challenge against Gov. Tom Wolf's administration just days after the RGGI regulation was officially published on Saturday. The published regulation makes Pennsylvania — for now — the first major fossil fuel and energy producing state to put a price on carbon among power sector polluters. Power plants will need to start accounting for their carbon emissions on July 1. State legislative Republican leaders are engaged in a separate legal challenge aiming to stop Pennsylvania from joining the program. Republicans initially tried to stop the publication of the regulation in the first place, but failed after a court-ordered stay was lifted. That litigation has a court hearing set for May 2.
| | | — "California offshore drilling ban poised to clear first hurdle," via POLITICO Pro. — "A new Texas oil boom is coming, finally," via Texas Monthly. — " Nuclear power could help Europe cut its Russia ties, but not for years," via The New York Times. — "Consumer brands push for clean-energy tax credits," via The Wall Street Journal. — "Soros fund's climate plan shows messiness of financed emissions," via Bloomberg. — "Russia to halt gas shipments to Poland," via POLITICO. 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. | | | | | | | Follow us on Twitter | | | | Follow us | | | | |
Comments
Post a Comment