Snags in the carbon-capture pipeline

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May 09, 2023 View in browser   By Debra Kahn Presented by THE BIG IDEA Environmental justice groups are skeptical of the Biden administration's carbon-capture plans. | Rogelio V. Solis/AP Photo CAN'T PLEASE EVERYONE — The Biden administration is pouring billions into carbon capture, but one of its key constituencies is resisting, our Allison Prang reports. Environmental justice groups are worried about the networks of pipelines that companies are proposing to transport carbon dioxide, they're worried about the gas staying in the aquifers and wells that it would be injected into, and they're worried that the overall effort will distract from the need to reduce emissions from existing industrial operations. The growing opposition is threatening to delay the full rollout of billions of dollars in new federal spending on carbon capture — and it's showing the difficulties the Biden administration faces in trying to prioritize both industrial carbon removal and disadvantaged communities. Activists are alarmed by the sheer volume of funding for carbon capture, which includes $3.5 billion for direct-air capture "hubs" and another $2.5 billion for six carbon capture facilities. They say it implies the administration is prepared to override their objections, despite its stated emphasis on environmental justice. "As long as that enormous amount of money is being rapidly pushed out by the federal government, that undermines any attempts to engage with or have conversations with environmental justice communities," said Jane Patton, campaign manager for plastics and petrochemicals at the Center for International Environmental Law. The Energy Department is holding community workshops, requiring carbon-capture grant applicants to include community benefits plans, and getting environmental justice groups to help evaluate applications. It's not clear it will be enough. “It’s a very fraught piece of the puzzle and one that we are committed to getting right but know that it’s definitely a marathon, it’s not a sprint, and we’ve only run the first miles,” said Noah Deich, deputy assistant secretary for DOE's Office of Carbon Management. Industry is well aware of the opposition and is working on assuaging groups. Nicole Parra, a former state lawmaker working with California Resources Corp., a petroleum company that's seeking a federal grant to build a direct-air capture system in California's Central Valley, carries around a 16-point list of demands from a coalition of environmental justice groups. "Literally, it's in my hand right now," she said. Among the demands: a minimum distance of 10 miles between projects and disadvantaged communities; and a requirement that projects not increase air, water, noise or light pollution.   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.   THE BIG IDEA, PART 2 Arizona's Patagonia Mountains are home to critical minerals and endangered species. | cobalt123/Flickr ZINC VS. ZEBRAS — In other tradeoffs, the Biden administration on Monday announced it would fast-track a manganese and zinc mine in southern Arizona that local environmental groups say could disturb species like jaguar, ocelot and Pima pineapple cactus, Hannah Northey reports for POLITICO's E&E News. South32 Hermosa’s $1.7 billion underground mine and processing plant in southern Arizona is the only project in the U.S. that could produce battery-grade manganese to meet domestic demand for electric vehicle batteries, mine officials say. But environmentalists are appealing its state-issued water permits. “Species are more important in these mountains than the minerals,” said Carolyn Shafer, president of the Patagonia Area Resource Alliance. PLASTIC POLLUTION BOTTLE BATTLE LINES — A fight over what types of materials are actually recycled is brewing in California and could reverberate nationwide, our Jordan Wolman reports. California regulators are getting ready to ban the iconic "chasing arrows" label from containers that don't actually get recycled. Industry is keenly aware of the materials that might not make the cut. One of the key fights will be over the recyclability of No. 5 polypropylene, used in items like bottle caps, straws, potato chip bags and yogurt containers. It's nowhere near the 60 percent threshold, according to multiple studies, but producers argue the domestic recycling market needs more time to develop, after China banned imports in 2017. “It’s one of only two or three materials that are on the bubble,” said Nick Lapis, director of advocacy at Californians Against Waste. “Most things are very clear cut. Polypropylene is where we have the most debate.”   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? REGSITER HERE.     WASHINGTON WATCH ESG ON THE HILL — The House Oversight and Accountability Committee will hear from two Republican officials tomorrow who have been at the forefront of state-level attacks on sustainable investing practices, Allison writes. Up at the plate testifying will be two attorneys general: Utah's Sean Reyes and Alabama's Steve Marshall. Reyes recently sued the National Association of Attorneys General arguing that the group’s funds utilize ESG criteria. He is also leading a coalition of 25 states challenging the Labor Department's ESG rule, as Emma Dumain notes for POLITICO's E&E News. Marshall has signed onto that same lawsuit on behalf of Alabama. The hearing comes as Republican politicians around the country have pulled money out of asset managers they argue take ESG factors into account or boycott fossil fuel companies. “ESG is just window dressing for liberal activism and radical far-left ideology,” Rep. James Comer (R-Ky.) is slated to say in his opening statement for the hearing Wednesday. OFFSETS OVERSIGHT — Commodity Futures Trading Commission Chair Rostin Behnam is weighing some kind of policy to shore up trading tied to voluntary carbon offsets — potentially in the form of guidance or an advisory, he told Zach Warmbrodt on the sidelines of last week's Milken Institute conference. “If we can send a signal through some sort of regulatory action to the underlying market participants that this is what we expect in order for our markets to not be readily susceptible to fraud or manipulation, that will in theory raise the bar of how they conduct themselves and what rules they require of their market participants,” he said. The timing and exact form of the policy are TBD. “They’re hard legal questions,” he said. “We’re thinking about it and we’re trying to come up with something as quickly as possible.”   A message from American Beverage Association:   YOU TELL US GAME ON — 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 all at gmott@politico.com, dkahn@politico.com, jwolman@politico.com and aprang@politico.com. Want more? Don’t we all. Sign up for the Long Game. Four days a week and still free!   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.     WHAT WE'RE CLICKING — While carbon capture faces resistance on the left, the Washington Post and Wall Street Journal highlight different flavors of green transition resistance from the other side. — The U.S. Supreme Court has taken up a legal challenge that could further complicate efforts to impose climate-disclosure regulations, WSJ reports. — What does the world look like when electric vehicles dominate the car market? The New York Times looks to Norway for a glimpse of the future.   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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