Key takeaways from Biden's power play

Presented by American Beverage Association:

May 12, 2023 View in browser   By Debra Kahn Presented by THE WEEK THAT WAS Will EPA's power plant rules stick this time? | Nathan Howard/AP Photo EPA'S BIG SWING — The Biden administration came out Thursday with its long-awaited draft rule curbing emissions from fossil-fueled power plants. Some things to know: — They're the strongest-ever proposed rules for power plant emissions. This is EPA's third try at regulating carbon dioxide from existing power plants (the Trump administration, backed by the Supreme Court, undid the Obama administration's rule, and a lower court struck down the Trump rule). The rules would require coal-fired power plants operating after 2040 to reduce their emissions by almost 90 percent. — They're not that ambitious in the near term. EPA projects they'll result in a drop of 10 million metric tons of CO2 in 2028 compared with 2027. By 2042, it would avoid a total of 600 million metric tons of CO2. (The U.S. power sector produced 1,539 million metric tons of carbon last year, according to the U.S. Energy Information Administration.) And while the emissions curve would bend sharply down after 2030 — and particularly by 2035 — the rule never results in a zero-carbon grid, according to EPA documents. Jean Chemnick breaks down the numbers for POLITICO's E&E News. — They hinge on carbon capture — which is nascent, having only been temporarily deployed at one power plant in the U.S. so far. Coming on top of the Inflation Reduction Act's billions of dollars in incentives for carbon capture, the rule is another nudge to try to make the technology economic, Brian Dabbs, Carlos Anchondo and Christa Marshall report for POLITICO's E&E News. Carbon capture also faces political opposition on the left, as our Allison Prang reported earlier this week. — They will definitely get challenged in court. After EPA issues final rules in a year or so, Alex Guillén reports, expect suits from Republican state attorneys general, almost certainly some part of the coal industry, possibly natural gas producers and possibly utilities that still use a lot of coal and thus would be hit hardest. And if Biden is replaced by a Republican, the rule almost certainly will get yanked back again.   A message from American Beverage Association: At America’s beverage companies, we are committed to reducing our plastic footprint. That’s why we’re carefully designing our plastic bottles to be 100% recyclable, including the caps. Our goal is for every bottle to become a new one, so they don’t end up in nature. Learn more at EveryBottleBack.org.   Movers and Shakers VIVACIOUS VIVEK — Anti-ESG crusader Vivek Ramaswamy is being taken seriously as a presidential candidate. He's getting name-checked by former President Donald Trump and Florida Gov. Ron DeSantis' campaign, and he seems to have left behind his anti-"woke" investment messaging in favor of a broader tilting at such targets including the Department of Education, FBI and Nuclear Regulatory Commission. This profile by Natalie Allison and Lisa Kashinsky doesn't mention ESG once.   GET READY FOR GLOBAL TECH DAY: Join POLITICO Live as we launch our first Global Tech Day alongside London Tech Week on Thursday, June 15. Register now for continuing updates and to be a part of this momentous and program-packed day! From the blockchain, to AI, and autonomous vehicles, technology is changing how power is exercised around the world, so who will write the rules? REGISTER HERE.     AROUND THE NATION PORK FUTURES — The Supreme Court on Thursday upheld a California ballot initiative that increases spacing requirements for pigs on farms, Pamela King reports for POLITICO's E&E News. In addition to boosting animal welfare across the country — California imports nearly all of its pork, and farmers had sued on the basis that the law extends across state lines — the ruling could bolster states' rights to set their own climate regulations. Challengers often use the dormant commerce clause to dispute states' authority, including a coal export ban in Washington and fuel economy standards in California and Oregon. TRAFFIC PROBLEMS IN FORT LEE — New York City finally has federal permission to begin the nation's first congestion charge, but New Jersey has a bone to pick with the plan, Caroline Petrow-Cohen reports. Reps. Rob Menendez and Josh Gottheimer, both Democrats from North Jersey, are arguing that discouraging drivers from entering central Manhattan will harm New Jersey residents by pushing traffic and air pollution into communities surrounding the city. The environmental assessment of the plan did find that the congestion tax, if implemented this year, would increase pollutants in the Bronx, Staten Island, Nassau and Bergen counties. It also showed there would be increases in particulate matter, nitrogen oxide and carbon monoxide in Bergen County. Gottheimer, who co-chairs the new Congressional Anti-Congestion Tax Caucus, called for a full environmental study and said he would submit a comment during the 30-day review period demanding the Biden administration reconsider the decision.   A message from American Beverage Association:   AROUND THE WORLD NO MORE NEUTRALITY — European lawmakers are cracking down on carbon offsets, Leonie Cater reports. The European Parliament approved its stance Thursday on the European Commission's anti-greenwashing rules, setting up a basis for negotiations with the Commission and the European Council. It went further than the Commission in calling for a ban on carbon-neutrality claims that are based on offsets. Lawmakers also want to restrict unsubstantiated usage of “environmentally friendly,” “natural,” “biodegradable,” “climate neutral” or “eco." COPY THAT — French President Emmanuel Macron on Thursday proposed incentives for European-made electric vehicles, his first concrete counter to the Biden administration's Inflation Reduction Act, Giorgio Leali and Joshua Posaner report. Macron, the most vocal objector among U.S. allies to America's attempts to attract green industry, said he would adjust France's existing EV incentives to specifically reward European manufacturers by the end of the year. "We don't want to depend; we are not meant to become consumers for the American industry," he said. "This doesn't mean that we are protectionist, we are not going to close the market, but we don't want to use the French taxpayers' money to accelerate non-European industrialization." Macron's proposal will also include other U.S.-inspired measures like tax credits for sectors including batteries, heat pumps, wind and solar power.   DON’T MISS THE POLITICO ENERGY SUMMIT: A new world energy order is emerging and America’s place in it is at a critical juncture. Join POLITICO on Thursday, May 18 for our first-ever energy summit to explore how the U.S. is positioning itself in a complicated energy future. We’ll explore progress on infrastructure and climate funding dedicated to building a renewable energy economy, Biden’s environmental justice proposals, and so much more. REGISTER HERE.     YOU TELL US GAME ON — Happy Friday! Welcome to the Long Game, where we tell you about the latest on efforts to shape our future. We deliver data-driven storytelling, compelling interviews with industry and political leaders, and news Tuesday through Friday to keep you in the loop on sustainability. Team Sustainability is editor Greg Mott, deputy editor Debra Kahn, and reporters Jordan Wolman and Allison Prang. Reach us at gmott@politico.com, dkahn@politico.com, jwolman@politico.com and aprang@politico.com. Want more? You can have it. Sign up for the Long Game. Four days a week and still free. That’s sustainability! WHAT WE'RE CLICKING — Montana repealed its energy policy in an effort to avoid trial in a suit brought on behalf of the state’s young people to highlight fossil fuel risk. The Associated Press has the full story. — Coca-Cola is experimenting with technology that converts hard-to-recycle material into food-grade plastic, the Wall Street Journal reports. — French banking giant BNP Paribas is getting out of the business of underwriting gas projects because of litigation concerns, according to the Financial Times.   A message from American Beverage Association: America’s leading beverage companies - The Coca-Cola Company, Keurig Dr Pepper and PepsiCo - are working together to reduce our industry’s plastic footprint through our Every Bottle Back initiative. We’re investing in efforts to get our bottles back so we can remake them into new bottles and use less new plastic.  Together, we’re:  Designing 100% recyclable plastic bottles – we’re making our bottles from PET that’s strong, lightweight and easy to recycle.    Investing in community recycling – we’re marshalling the equivalent of nearly a half-billion dollars with The Recycling Partnership and Closed Loop Partners to support community recycling programs where we can have the greatest impact.  Raising awareness – we’re adding on-pack reminders to encourage consumers to recycle our plastic bottles and caps.      Our bottles are made to be remade. Please help us get Every Bottle Back.     Follow us on Twitter Debra Kahn @debra_kahn Greg Mott @gwmott Jordan Wolman @jordanwolman Allison Prang @AllisonPrang   Follow us

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