Blue climate law, red state benefits

Presented by Chevron: Your guide to the political forces shaping the energy transformation

Aug 24, 2022 View in browser   By Nick Sobczyk Presented by Chevron PROGRAMMING NOTE: Power Switch won't publish from Monday, Aug. 29, to Monday, Sept. 5. We'll be back on our normal schedule on Tuesday, Sept. 6. House Minority Leader Kevin McCarthy (R-Calif.). | Francis Chung/E&E News House Minority Leader Kevin McCarthy has argued that the new climate law will "destroy our economy." Yet the California Republican's district — an emerging hub for renewable power — stands to benefit from the law's clean energy provisions. It's an acute example of a dynamic playing out around the country: The Inflation Reduction Act will send billions of dollars in clean energy investment to regions controlled by Republicans who voted unanimously against it. The GOP dominates rural expanses of the American South and the West that are breeding grounds for renewable energy, which relies on sun, wind and open space. Among the top five states for wind power generation last year, four — Texas, Iowa, Oklahoma and Kansas — have entirely Republican Senate delegations. Republicans also control nine of the top 10 congressional districts for planned or operating renewable energy projects. McCarthy's district is No. 2 on the list. The Inflation Reduction Act promises to pump investment into those regions to deploy wind turbines, build solar panels, manufacture electric vehicles and capture carbon from fossil fuel plants. It complicates the traditional red state-blue state narratives about the burgeoning clean energy industry, and it could shake up the politics of climate change as the law is implemented in the coming years. "This may have been a bill that was passed solely by one political party, but the benefits are clearly bipartisan," said Bob Keefe, executive director of E2, a nonpartisan group that tracks clean energy jobs. 'Where nature put it' So why didn't Republicans vote for the climate bill? For one thing, the new law lumps in clean energy policy with health care subsidies and taxes on businesses that Republicans despise, leaving little chance they would ever support the full package. Plus, many of the same rural red regions now home to renewable power are also longtime hubs for oil, gas or coal. That includes McCarthy's district, as well as wind-heavy states like Texas, which is also the top oil-producing state. As energy expert Kevin Book put it, "Fossil energy goes where nature put it, and right now, those deposits are underneath the feet of a lot of Republican states." "Are the red states going to defend wind or solar energy to the detriment of their fossil fuel legacies?" said Book, managing director of ClearView Energy Partners. "The answer is squarely no."   Today in POLITICO Energy's podcast: Contributing reporter Adam Federman explains why companies are backing out of drilling leases in Alaska's Arctic National Wildlife Refuge. Listen to today's POLITICO Energy podcast It's Wednesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Nick Sobczyk. Arianna Skibell will be back soon. Power Switch is brought to you by the journalists behind  E&E News and POLITICO Energy. Send your tips, comments, questions to nsobczyk@eenews.net. Trends A coal-fired power plant. | Branden Camp/AP Speaking of the climate law, the White House estimated Tuesday that the Inflation Reduction Act will reduce the economic impact of greenhouse gas emissions by up to $1.9 trillion by 2050. Those benefits take several forms, including avoiding negative health effects of climate pollution and curbing physical climate impacts like sea-level rise. The White House analysis is based on the social cost of carbon, a metric used by the federal government to determine the economic impact of planet-warming pollution. Independent analysts say the law will reduce U.S. greenhouse gas emissions by roughly 40 percent by 2030, compared with 2005 levels. Power Centers Pumpjacks in the San Joaquin Valley, Calif. | John Ciccarelli /BLM/Flickr End of an era? The climate law could cause U.S. fossil fuel demand to peak as soon as 2025, writes Scott Waldman. The law's vast clean energy and electric vehicle incentives could cause the nation to turn a corner on fossil fuels, experts say. If demand plummets, prices would fall, too, reshaping how companies think about long-term planning for oil, gas and coal projects. Read the story here. California dreamin' California's air regulator is expected to announce a ban on sales of new gas-powered cars by 2035, writes Camille von Kaenel. The rule could transform the car market in the United States and offer a path for other states to adopt zero emissions vehicle regulations. Read about it here. Four-letter word Green groups have long used the National Environmental Policy Act, a bedrock environmental protection law, to challenge fossil fuel projects, but the approach has limits, writes Heather Richards. Despite emissions commitments by Congress and the Biden administration, the law — known as NEPA — may not be enough to stop projects that could cause billions of dollars in climate damages. Read more here. Private plane campaign French politicians are jumping in on a social media campaign lambasting the ultra rich for hopping around the country on private planes and spewing greenhouse gas emissions, write Mari Eccles and Louise Guillot. Transport Minister Clément Beaune is pushing European Union officials to regulate emissions from private planes. Read that story here.   A message from Chevron: At Chevron, we believe the future of energy is lower carbon. In the Permian Basin, we're exploring solutions to help meet growing energy demand, while reducing emissions intensity.   In Other News The McKinney Fire burns in California in July. | Noah Berger/AP Photo World on fire: Wildfires are burning roughly twice as many trees as they did 20 years ago, fueled by warmer and drier conditions brought on by climate change. Energy crisis: About 1 in 6 American households — 20 million around the country — is behind on utility bills, a crisis fueled by soaring energy costs. Question Corner The science, policy and politics driving the energy transition can feel miles away. But we're all affected on an individual and communal level — from hotter days and higher gas prices to home insurance rates and food supply. Want to know more? Send me your questions and I'll get you answers.   A message from Chevron:   Subscriber Zone A showcase of some of our best subscriber content. A segment of the Mountain Valley pipeline. | Mountain Valley Pipeline, LLC A top energy regulator has given developers four more years to finish the Mountain Valley pipeline, a natural gas project that has become a political hot button. Natural gas generation in the U.S. power sector hit an all-time high in July as the nation suffered through a heat wave. Ukrainian President Volodymyr Zelenskyy wants the International Atomic Energy Agency to take control of a massive nuclear power plant currently under Russian occupation. That's it for today, folks! Thanks for reading.   A message from Chevron: At Chevron, we recognize that energy demand is growing. It's why we're increasing production to help keep up. This year in the Permian Basin, we plan to increase oil production by 15% over 2021 levels. And we're projected to reach 1 million barrels of oil per day by 2025, while continuing to reduce both carbon and methane emissions intensities. From 2016 to 2028, we're on track to reduce our methane emissions intensity in the region by 50%. In fact, nationwide, our onshore methane intensity is 85% lower than the U.S. industry average. Every day, we look for opportunities to reduce our emission intensity as we strive to produce energy that Americans—and customers throughout the world—can count on. Find out more.     Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

To change your alert settings, please log in at https://www.politico.com/_login?base=https%3A%2F%2Fwww.politico.com/settings This email was sent to rouf@idiot.cloudns.cc by: POLITICO, LLC 1000 Wilson Blvd. Arlington, VA, 22209, USA Please click here and follow the steps to unsubscribe.