Climate push brings new pipeline fights to Midwest

Your guide to the political forces shaping the energy transformation

Apr 13, 2023 View in browser   By Arianna Skibell Claudine Hellmuth/POLITICO (illustration); Illinois General Assembly (documents); PxFuel (pipes); Joe Raedle/Getty Images (ethanol pipeline) Capturing carbon pollution before it's released into the atmosphere is emerging as a potentially viable way to fight climate change. But fierce debates are sprouting across the Midwest on what to do with that carbon once it's captured from industrial and agricultural operations, or how to move it from one site to another. The fights are pitting traditional political allies against each other and potentially complicating regional efforts to combat the climate crisis. As with many energy battles in the United States, pipelines are at the heart of the brawl, write POLITICO’s E&E News reporters Jeffrey Tomich, Carlos Anchondo and Mike Soraghan. And so far, the pipelines are winning. Of the more than two dozen bills filed in six states this year challenging aspects of carbon capture, transportation and storage projects, none has passed. Some measures that did advance later fizzled. The rub: With the help of federal tax credits, companies are working to build a sprawling network of pipelines to transport greenhouse gas emissions from ethanol and fertilizer plants to storage sites in Illinois and North Dakota. In all, three proposed pipelines would reach more than 3,000 miles across the Dakotas, Nebraska, Iowa, Minnesota and Illinois. The effort has angered some conservative politicians, environmental groups and rural landowners. They’re concerned about companies’ use of eminent domain to secure rights of way for pipelines. And they’re vowing to keep pushing for new, tougher regulations around safety and siting, some with the aim of delaying or blocking the projects. In Iowa, some Republicans feel betrayed by GOP Gov. Kim Reynolds, who they say failed to advocate for a bill to protect landowners from eminent domain for CO2 pipelines. “There’s a lot of ticked-off people — solid Republican people,” Bud Jermeland, a farm equipment dealership manager, told Jeff, Carlos and Mike. “You can’t believe how many people in my party are worked up about this.” The big picture: These battles are just a taste of the kinds of permitting and infrastructure fights to come as federal dollars catalyze climate-related projects, such as electric transmission lines and lithium mines.   It's Thursday — 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: Alex Guillén breaks down the Biden administration's new auto pollution limits and the coming legal battle. Do you know of large residential or government buildings constructed within the past decade that have needed significant repairs due to weather-related flooding or storm damage? Help us investigate the impact of climate change by sending us the addresses. EMAIL E&E NEWS REPORTER CORBIN HIAR AT CHIAR@EENEWS.NET   GO INSIDE THE 2023 MILKEN INSTITUTE GLOBAL CONFERENCE: POLITICO is proud to partner with the Milken Institute to produce a special edition "Global Insider" newsletter featuring exclusive coverage, insider nuggets and unparalleled insights from the 2023 Global Conference, which will convene leaders in health, finance, politics, philanthropy and entertainment from April 30-May 3. This year’s theme, Advancing a Thriving World, will challenge and inspire attendees to lean into building an optimistic coalition capable of tackling the issues and inequities we collectively face. Don’t miss a thing — subscribe today for a front row seat.     lobbying boom President Joe Biden driving a Ford F-150 Lightning truck in Dearborn, Mich., in 2021. | Evan Vucci/AP Photo The Biden administration’s climate change agenda has spurred an unprecedented lobbying boom driven by mineral and battery companies in search of incentives for expanding North American operations, write Timothy Cama and Hannah Northey. More than 30 of those companies hired lobbying firms for the first time since President Joe Biden took office, an E&E News analysis of disclosure records found, while many others boosted their lobbying muscle or increased spending. For example, the National Mining Association, which had reduced its spending amid the coal downturn, has more than doubled its federal lobbying expenditures to $2.2 million. Power Centers Sen. Ted Cruz speaks during a Senate Commerce, Science and Transportation Committee hearing March 8 on Capitol Hill. | Mariam Zuhaib/AP Photo The natural gas factor GOP security hawks have been hammering U.S. clean energy companies for any connections to China — but they have a much softer spot for exports of American natural gas to the Asian superpower, write Ben Lefebvre and Zack Colman. Republican Sen. Ted Cruz of Texas, for example, has called China one of the United States' biggest geopolitical threats. But when it comes to natural gas exports, Cruz said, “Individuals and companies can do business with China. We are not boycotting the nation as a whole." House Speaker Kevin McCarthy has gone even further, saying the exports — a growing economic lifeline for the U.S. gas industry — are a plus for American geopolitics. "Why wouldn’t we want China dependent on our natural gas for their own economy?” he asked in a recent CNBC interview. Michigan goes big on climate Michigan Democrats, emboldened by winning control of all three state branches of government in November, are trying to enact sweeping climate and energy goals outlined by Gov. Gretchen Whitmer, writes Jeffrey Tomich. If successful, Michigan would be the third Midwestern state with a requirement that its energy be 100 percent carbon-free. First cars, next power plants The Environmental Protection Agency's stringent auto pollution limits proposed this week are likely a harbinger of what's to come as the agency prepares new power plant rules, writes Jean Chemnick. Because the transportation and power sectors are top greenhouse gas emitters, both pollution limit rules are being bolstered by the recent influx of historic climate spending in Congress' Inflation Reduction Act. In Other News Impacts: Fort Lauderdale, Fla., is drenched with up to two feet of rain, shuttering its airport. Electric future: Italian company Enel says it will double the number of fast EV chargers on U.S. highways.   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.     Subscriber Zone A showcase of some of our best subscriber content. U.S. climate envoy John Kerry addressing the Our Ocean meeting in Panama last month. | Arnulfo Franco/AP Photo U.S. climate envoy John Kerry said the World Bank can help fight global warming by rallying other development lenders to the cause of funding climate-related efforts. Progressive Democrats in the House are urging the Interior Department to reverse the Biden administration’s decision last month to greenlight an Alaska oil project. If Sen. Tim Scott of South Carolina enters the 2024 presidential race, he’ll carry a climate record that resembles former President Donald Trump's. That's it for today, folks! Thanks for reading.   Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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