Biden’s agencies in for a big year

Presented by Natural Allies for a Clean Energy Future: Your guide to the political forces shaping the energy transformation

Jan 03, 2023 View in browser   By Arianna Skibell Presented by Natural Allies for a Clean Energy Future A view of U.S. Environmental Protection Agency headquarters. | Justin Sullivan/Getty Images Welcome back! Congress passed some of the most important climate legislation in U.S. history last year — but 2023 is all about implementation. A lot is riding on federal agencies to craft the policies and dole out the cash necessary to meet the Biden administration's climate goals. The president has pledged to slash the nation's planet-warming pollution by 2030 — now a mere seven years away — before zeroing out greenhouse gas emissions by midcentury. He's unlikely to get any help from the newly divided Congress. So reaching those targets will depend largely on how Biden's agencies implement last year's Inflation Reduction Act, which is funneling a record $369 billion into climate programs. Agencies to watch: While almost every federal body will have a hand in the climate money pot, a few will make especially consequential decisions. The Environmental Protection Agency, for example, is charged with distributing billions of dollars from both the IRA and 2021's bipartisan infrastructure law — while also finishing new rules to curb pollution from power plants, vehicles and the oil and gas sector. The Energy Department will also dole out cash from both laws. And the Treasury Department is poised to take center stage as it figures out how to implement major energy tax credits, including for electric vehicles, which have already spurred international trade disputes. Don't forget the House GOP: No Republicans voted for the IRA, and the GOP now promises to use its slim House majority to scrutinize the climate law's rollout, which could derail the pace of implementation. So expect lots of talk about "the next Solyndra." First, though, the party is having trouble getting its House in order amid the chaos surrounding Kevin McCarthy's struggles to win election as speaker. During the lame-duck session, McCarthy made the unusual move of delaying the races to lead House committees, which means it could be days or weeks before the party's decisionmaking structure is in place.   It's Tuesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net. Listen to today's POLITICO Energy podcast Today in POLITICO Energy's podcast: Catherine Morehouse breaks down how people are shooting, sabotaging and vandalizing the nation's power system at a pace unseen in at least a decade. electric future GMC Hummer electric vehicles move through an assembly line at a General Motors plant in Detroit. | Nic Antaya/Getty Images The White House and Sen. Joe Manchin (D-W.Va.) are at odds over electric vehicles — again. The latest tiff comes after the Treasury Department released tax guidance last week spelling out how consumers can qualify for up to $7,500 in federal subsidies to buy an electric vehicle, writes Benjamin Storrow. The guidance effectively provides a loophole for leased vehicles by exempting them from the IRA's made-in-America manufacturing requirements. That prompted an angry reaction from Manchin, who said the department was undermining the law's intent to create a domestic manufacturing base for energy technology.   A message from Natural Allies for a Clean Energy Future: As the demand for low-carbon energy grows, U.S. natural gas, partnered with renewable energy, will help reach global climate goals faster, without sacrificing reliability or affordability. Learn how natural gas is accelerating our clean energy future at www.naturalalliesforcleanenergy.org.   Power Centers Utility workers repairing damaged power lines on Dec. 28 in Buffalo, N.Y. | Jeffrey T. Barnes/AP Photo Bomb cyclone debate flares Over 1.6 million U.S. customers lost power last month when a "bomb cyclone" rippled across 60 percent of the nation, writes Peter Behr. The incident has put new urgency behind a critical issue for the nation's power system: how grid owners and operators prepare for extreme weather emergencies. Oil sector eyes geothermal One of the oldest forms of clean power is ready for a comeback — and it's not wind or solar, write Ben Lefebvre and Kelsey Tamborrino. Geothermal energy — the technology that harnesses the heat beneath the Earth's crust — is drawing fresh interest from the oil drilling sector after lawmakers boosted funding flows. A big year for climate finance The next 12 months could transform how the U.S. financial system responds to global warming, writes Avery Ellfeldt. U.S. regulators last year outlined a series of policies to address the threats that climate change poses to the global financial system. Now, agencies such as the Securities and Exchange Commission are racing to finalize them. in other news Climate impacts: A so-called atmospheric river storm dumped heavy rain and snow across California. I want to ride my bicycle: E-bikes, which are gaining popularity, could be a more affordable way to reduce climate-changing emissions.   A message from Natural Allies for a Clean Energy Future:   Subscriber Zone A showcase of some of our best subscriber content. Wind whips embers from a burning tree during a wildfire near Hemet, Calif., last year. | Ringo H.W. Chiu/AP Photo Despite a record number of dangerous wildfires last year, a majority of American corporations are not mentioning the risks in their annual reports. Vandals damaged four electric substations outside Tacoma, Wash., on Christmas Day, marking the latest in a string of incidents. January temperatures are rising, and the price of natural gas is falling — that's good news for Europe's businesses and consumers, and bad news for Russian President Vladimir Putin. That's it for today, folks! Thanks for reading.   A message from Natural Allies for a Clean Energy Future: Lowering emissions is a promise that we must keep – for the next generation and beyond. Natural gas, partnered with renewable energy, will help reach global climate goals faster, without sacrificing reliability or affordability. As demand for clean energy grows, expanding the country's natural gas infrastructure will help meet today's needs, while laying the groundwork to transport zero-carbon fuels, like hydrogen, tomorrow. Learn how natural gas is accelerating our clean energy future at www.naturalalliesforcleanenergy.org.     Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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