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Between a rock and a dry place

Aug 23, 2022 View in browser
 
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By Annie Snider, Debra Kahn and Jordan Wolman

THE BIG IDEA

Water flows down the Colorado River.

Water flows down the Colorado River — for now. | John Locher/AP Photo


HARD CHOICES, POSTPONED — A broad swath of the West is on the brink of a massive water and power crisis — but so far, the federal government isn't stepping in to stop it.

Entrenched drought conditions and chronic overuse have driven Colorado River water levels so low that federal forecasters now see a very real chance that Glen Canyon Dam, sitting just above the Grand Canyon, will lose the ability to produce hydropower next year — a scenario that would also threaten water deliveries to Arizona, Nevada and California.

The implications are enormous: Cities from Phoenix to Los Angeles could see a linchpin water source cut off. Large swaths of highly productive farmland could go dry. Electricity rates would skyrocket and Western states could face rolling blackouts. Tourists might even find themselves looking down at a Grand Canyon with no water flowing through it.

But so far the seven states that rely on the river's flows haven't been able to agree on how to head off the looming disaster.

The Interior Department says the states that rely on the Colorado River must find a way to save as much as a third of its flows next year to prevent the looming disaster. But the states blew past the agency's Aug. 15 deadline and are still far from a deal, stymied by fights over who should bear the brunt of the cuts and how much farmers and other users should be paid for agreeing to go along with them.

Interior could step in and make the hard choices for them. That's what Bureau of Reclamation Commissioner Camille Touton threatened to do in June if states couldn't agree. It's the same threat the Trump administration's Reclamation commissioner made in 2018 when states were struggling to reach a deal that was meant to head off the now-imminent crisis.

But actually invoking any of Interior's powerful authorities presents a legal and political minefield . For instance, federal officials could redefine how farmers can use their water, requiring irrigation upgrades or even making them switch from water-intensive crops like alfalfa to less thirsty ones. Doing so could conserve large amounts of water, but would be the equivalent of setting off a political bomb in farm country, particularly for a Democratic administration.

For now, the Biden administration is keeping its powder dry, giving states more time to work on a deal and simply imposing a new round of already-agreed-to delivery cuts to Arizona, Nevada and Mexico. They've concluded that they have some more time to let the states keep trying — but no one knows exactly how much longer the hydrology will hold out.

"There is still time," Deputy Interior Secretary Tommy Beaudreau told reporters last week, although he declined to set a new deadline.

Some players are worried that putting off action will only make it harder for state officials to find the political wherewithal to do what needs to be done.

"I've always been a big believer in the basin states coming together and hammering out these tough issues, but the truth of the matter is, even with some of the historic agreements we've reached over the past 20 years, we never did it without a credible federal threat," said John Entsminger , head of the Southern Nevada Water Authority and the state's lead negotiator on the Colorado River.

"Without federal leadership – and by that I mean a credible federal threat – we've always wallowed," he said.

 

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SUSTAINABLE FINANCE

ESG BACKLASH PT. VIII — Texas Attorney General Ken Paxton announced Monday that he is joining a Missouri-led civil investigation into an environmental, social and governance ratings company for alleged consumer fraud and unfair trade practices.

The probe, which targets Morningstar Inc. and its Sustainalytics subsidiary, is the latest in a series of anti-ESG actions undertaken by Republican officials in mostly red states. West Virginia has led the way, enacting a new law earlier this year that bars some of the country's biggest financial firms from some state business because they're deemed hostile to fossil fuels. There's a coordinated effort among more than a dozen state treasurers to find ways to punish banks that allegedly treat the fossil fuel industry differently.

Paxton himself wrote to BlackRock CEO Larry Fink earlier this month to ridicule the world's largest asset manager over its ESG state pension fund investments. Fink and other executives have argued all along that businesses that fail to consider various forms of risk will be worse off — plus, that BlackRock and other top firms aren't swearing off fossil fuel investments anyway.

It's unclear specifically what wrongdoing the ratings company is accused of, but Missouri Attorney General Eric Schmitt wrote last month that he has reason to believe Morningstar and its subsidiary "may have used" deception, false promises, misrepresentation or omission of material facts in the sale or advertisement of their products.

"The ESG movement is the latest tool that woke corporations are using to push a radical and left-leaning social agenda into every corner of American life," Paxton said in a statement. "It's harmful to our state and nation, and it may be illegal as well. I'm going to get to the bottom of Morningstar's ESG agenda, and I'll hold them accountable."

WORKPLACE

TURNING UP THE HEAT ON AMAZON — The Occupational Safety and Hazard Administration has been trying to crack down on extreme heat in the workplace.

Advocates are hoping OSHA will turn its focus on Amazon.com Inc., which the agency is already investigating for other workplace safety hazards.

"If they have not already started looking specifically at heat, they should be looking into it," said Juley Fulcher, a worker health and safety advocate at Public Citizen, the Washington-based progressive advocacy group.

Amazon warehouse workers in Massachusetts and Illinois say they've been denied water, air conditioning and urgent care.

One snag: A 2019 ruling by the agency limited its ability to pursue heat cases. The author of the ruling, Heather MacDougall, is now Amazon's vice president for worldwide workplace health and safety.

Read more from Ariel Wittenberg for POLITICO's E&E News.

YOU TELL US

PROGRAMMING NOTE: The Long Game won't publish from Tuesday, Aug. 30, to Friday, Sept. 2. We'll be back on our normal schedule on Tuesday, Sept. 6. Send us tips in the meantime:

Team Sustainability is editor Greg Mott, deputy editor Debra Kahn and reporters Lorraine Woellert and Jordan Wolman. Reach us all at gmott@politico.com, dkahn@politico.com, lwoellert@politico.com and jwolman@politico.com.

Want more? Don't we all. Sign up for the Long Game. Four days a week and still free!

WHAT WE'RE CLICKING

— Did the Inflation Reduction Act do an end run around West Virginia v. EPA? The bill is peppered with congressional authorization to address greenhouse gases, the NYT reports.

— A U.N.-backed finance-industry climate group is beefing up its standards for entry, the Financial Times reports.

— China's drought is so bad that officials in hydropower-dependent Sichuan are ordering factories to "leave electricity for the residents," WSJ reports.

 

LISTEN TO POLITICO'S ENERGY PODCAST: Check out our daily five-minute brief on the latest energy and environmental politics and policy news. Don't miss out on the must-know stories, candid insights, and analysis from POLITICO's energy team. Listen today.

 
 
 

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