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Presented by the National Rural Electric Cooperative Association: Delivered daily by 10 a.m., Morning Energy examines the latest news in energy and environmental politics and policy.
May 04, 2022 View in browser
 
POLITICO's Morning Energy newsletter logo

By Matthew Choi, Josh Siegel and Kelsey Tamborrino

Presented by the National Rural Electric Cooperative Association

With help from Zack Colman

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

— Sen. Joe Manchin's bipartisan energy and climate group meets again tonight, but where it will lead is still anyone's guess.

— The Senate Environment and Public Works Committee votes today on this year's WRDA, which includes a host of new environmental priorities.

— Energy Secretary Jennifer Granholm defends the Biden budget request to the Senate Appropriations Committee today.

HAPPY WEDNESDAY! I'm your host, Matthew Choi. Many of you responded to yesterday's trivia with various orders Alfredo Linguini cooked up in "Ratatouille," but only Michael Weiner of Siemens Gamesa knew that the special order was sweetbread à la Gusteau. For today: How much did the Flying Dutchman pay for Spongebob's soul? 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: What to make of Manchin's meet-n-greets.

 

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Driving The Day

ANOTHER MANCHIN MEETUP: Sen. Joe Manchin 's bipartisan group has another meeting planned for tonight to discuss how to transform their sprawling set of ideas to address energy security and climate change into actual legislation. But there's no indication that they are closer to sketching out a deal, and some Democrats who see a party-line reconciliation climate package as the ultimate prize are showing signs of impatience.

Sen. Martin Heinrich (D-N.M.), a climate hawk who is not in the bipartisan group, told POLITICO's Josh Siegel that he would only take the negotiations seriously "if there is a critical mass of Republicans whose incentive is to move American energy policy forward." Finance Chair Ron Wyden, meanwhile, observed "the clock is really ticking" and expressed skepticism about whether the bipartisan group could negotiate anything better than the package of clean energy tax credits that are included in the reconciliation bill.

"The clean energy tax credits and the fact that they're tech neutral … is really as appealing as you can get for moderates who are thinking about where we're going," Wyden told POLITICO's Kelsey Tamborrino.

But Sen. Mitt Romney (R-Utah), who has joined the bipartisan negotiating group, said he "doesn't see a reason" to expand clean energy tax credits as part of a deal. Instead, Romney said he is pushing for a border carbon adjustment to penalize imports from high-emitting countries such as China, while pairing that with a domestic carbon price.

While the other Republicans and Manchin are intrigued with the idea of a carbon border adjustment, adding in a domestic price on carbon is a no-go for them.

WRDA WEDNESDAY: The Senate Environment and Public Works Committee votes today on this year's Water Resources Development Act, which both Democrats and Republicans on the committee praised for directing fresh money to a host of infrastructure and environment projects. Expect a pretty friendly discussion, with a committee aide predicting only one logistical amendment and wide bipartisan support.

Committee members are quick to point out this year's iteration puts a lot of emphasis on climate and environmental justice priorities in the Army Corps of Engineers' work, including provisions to set up USACE advisory committees on environmental justice issues. This version also includes authorizations for new USACE environmental infrastructure projects for the first time since 2007.

Chair Tom Carper and ranking member Shelley Moore Capito met with all 100 senators while crafting this year's bill, and the House Transportation and Infrastructure Committee is still cooking up its bill text after hosting a handful of informational hearings with other members this year.

The 2018 WRDA included a host of clean water and wastewater infrastructure priorities, but with last year's bipartisan infrastructure package authorizing and appropriating billions toward those issues, this year's WRDA is focused more on waterways and environmental projects. Read the bill text here.

Also on the docket: The committee will vote on Benny Wagner's nomination to be inspector general of the Tennessee Valley Authority.

 

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.

 
 
On the Hill

GRANHOLM GOES TO THE SENATE: Energy Secretary Jennifer Granholm heads back to the Hill to testify before the Senate Appropriations Energy and Water Development Subcommittee today on her department's fiscal 2023 budget request.

The subcommittee includes some of the most vocal Republican critics of the administration's energy policy, and Granholm spent much of her visit last week defending the administration's policies against charges they were driving up energy prices.

Subcommittee Chair Dianne Feinstein (D-Calif.), on the other hand, plans to focus on clean energy provisions while also touching on nuclear waste (more on that in a bit), according to an aide.

For a refresher on what's in the department's budget request, POLITICO's Catherine Morehouse and Kelsey Tamborrino have you covered. The committee's Interior subpanel also has a hearing today on the U.S. Forest Service's budget request with Chief Randy Moore.

Granholm also has a similar hearing before the Senate Energy Committee on Thursday.

ROCKY ROAD FOR ROBINSON: Biden's pick to lead DOE's Office of Electricity faces the same fate as several of his other nominees after the Senate Energy Committee deadlocked on advancing her nomination Tuesday. Assuming Democrats maintain party discipline, Robinson is still slated for confirmation, but Senate Majority Leader Chuck Schumer will need to file a discharge petition to get her out of committee. Kelsey has more for Pros.

Around the Agencies

CEQ WANTS TO HEAR FROM YOU: The White House Council on Environmental Quality will hold two public listening sessions on its draft Climate and Economic Justice Screening Tool this month to try to work out the kinks on the formula that will help determine what communities are eligible for prioritized environmental justice resources.

The draft tool has already garnered some backlash from EJ activists for not explicitly taking race into account when screening communities, though the White House acknowledges racism is a major factor in environmental injustice and says it is eager to hear more on the issue.

The listening sessions are on Tuesday, May 10, and Thursday May 19. CEQ extended the public comment period for the draft tool till Wednesday May 25.

NUCLEAR PERSONNEL: Biden plans to nominate Annie Caputo and Bradley Crowell to serve on the Nuclear Regulatory Commission, the White House announced Tuesday. Caputo currently works with the Idaho National Laboratory and previously served as an NRC commissioner and staffer on the Senate Armed Services, Environment and Public Works, and House Energy and Commerce committees. Crowell is currently the director of Nevada Department of Conservation and Natural Resources and is a veteran of former Sen. Richard Bryan's (D-Nev.) and Sen. Sheldon Whitehouse's (D-R.I.) offices, as well as the Obama DOE.

NUCLEAR REVIEW: In another domain of the nuclear universe, the Government Accountability Office found that DOE has a turnover problem in the office charged with cleaning up nuclear weapons waste. The report released Tuesday found that the heads of the Office of Environmental Management served for less than 2 years on average, making it difficult to oversee long-term cleanup projects and build relationships with local stakeholders. The report suggests including setting term appointments and using career officials rather than political appointees to lead the office. Read the full report here.

In response to the recommendations, Deputy Energy Secretary David Turk wrote that the department agrees with GAO's assessment and is implementing a plan to improve communication between staffers and leadership and to expand oversight.

IN MEMORIAM: Norman Mineta, who served as a Democratic Transportation secretary under President George W. Bush and Commerce Secretary under President Bill Clinton, died on Tuesday. He was the longest ever serving Transportation secretary and created new policies to tighten security after 9/11, including with the creation of the Transportation Security Administration. Prior to serving in the Clinton administration, he was a congressman representing California and served as San Diego's first Asian American mayor.

Following his time in public service, Mineta served on the board of L&L Energy, operating coal businesses in China. The Washington Post has his obituary.

 

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Advocacy

ME FIRST: The League of Conservation Voters Victory Fund is taking the rare step of throwing money into Democratic primary battles across four races. LCV's political arm said it felt compelled to back the candidates to boost people of color in Congress with strong environmental credentials. All told, the group will spend over $550,000 in the initial investment.

LCV Victory Fund is backing Jessica Cisneros, who is vying for Rep. Henry Cuellar's Texas seat, former Rep. Donna Edwards for an open seat in Maryland, Summer Lee in the 12th district of Pennsylvania, and Andrea Salinas in a crowded race for Oregon's 6th district, which includes nine Democratic hopefuls.

It also announced three advertisements: Digital video ads for Lee and Salinas that will appear through their respective May 17 primaries and a Spanish-language radio spot for Cisneros that will run in the San Antonio area and other streaming platforms through its primary runoff election on May 24.

"We're getting involved in these primaries because electing more pro-environment women of color is good for people and the planet – we desperately need Congress to be more representative of the electorate," said Megan Jacobs, LCV Victory Fund senior national campaigns director

SEIA LAUNCHES NEW RESEARCH GROUP: The Solar Energy Industries Association is launching a new nonprofit to help drive the transition to clean energy in the face of mounting challenges. The new 501(c)3, dubbed the Solar and Storage Industries Institute, or SI2, will serve as the solar trade group's charitable and educational arm, using research and education initiatives to address issues like land use and interconnection roadblocks to clean energy deployment. David Gahl, SEIA's current senior director of state policy in the East, will serve as the institute's first executive director.

"The window for climate action is narrowing quickly, and we must double down on the clean energy research and analysis needed to dismantle systemic challenges that are holding back the solar and storage industry," said SEIA President and CEO Abigail Ross Hopper, who will chair SI2's board of directors, in a statement. SOLV Energy CEO George Hershman will serve as board secretary and Nautilus Solar co-CEO Laura Stern as board treasurer.

 

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.

 
 
Beyond the Beltway

MVP ON THE BENCH: The Mountain Valley Pipeline faces a delayed timeline and higher price tag as it seeks new permits on its rocky road to completion, its operators announced Tuesday.

The project is now expected to be completed in the second half of 2023 at a total cost of $6.6 billion, according to The Roanoke Times, up from the most recent estimate of $6.2 billion and far higher than the $3.7 billion forecast in 2018. The project's permits faced legal pushback from environmentalists and were ultimately tossed in federal appeals court. Its operators assessed seeking new permits would make more sense than trying to challenge the decision in the Supreme Court.

The natural gas pipeline is a major priority for West Virginia's two senators, Manchin and Republican Shelley Moore Capito, who have pressed for its completion as the administration seeks to increase domestic fossil fuel production and LNG exports after the invasion of Ukraine.

The Grid

— "BP Takes $25.5 Billion Hit From Russia Exit," via The Wall Street Journal.

— "Russia Could Sell More Energy to Asia, but Has to Slash Prices," via The New York Times.

— " Fuel shortages create long lines, more headaches for Ukrainian civilians," via Reuters.

— "Climate scientists say South Asia's heat wave (120F!) is a sign of what's to come," via NPR.

THAT'S ALL FOR ME!

 

A message from the National Rural Electric Cooperative Association:

Electricity powers our economy and American families and businesses expect the lights to stay on at a cost they can afford. That's why electric co-ops have invested more than $50 billion over the last five years to modernize their systemsand create a more resilient grid.

Nearly 900 local electric cooperatives power 56 percent of the American landscape. From growing suburbs to remote farming communities, electric co-ops serve as engines of economic development And, as local businesses built by the consumers they serve, electric cooperatives invest $12 billion annually in their communities.

 
 

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