Oil states want in on the carbon storage game

Your guide to the political forces shaping the energy transformation

Sep 08, 2023 View in browser   By Arianna Skibell POLITICO illustration by Claudine Hellmuth/Photos by iStock Using expensive technology to capture and store carbon pollution before it enters the atmosphere has the full backing of the White House. What it doesn’t have are federal permits. The Biden administration has approved only two permits for projects that would store carbon dioxide emissions from major industrial sources deep underground — even as applications from companies this year ballooned from 14 to 119, driven in part by tax incentives in President Joe Biden’s $370 billion climate package, writes Jean Chemnick. The slow permitting pace is in part due to limited capacity within the Environmental Protection Agency, analysts say. To help clear the backlog, project developers and carbon storage advocates argue that EPA should cede some of its permitting authority to states. EPA has so far granted this authority to North Dakota and Wyoming. The agency is also considering a request from Louisiana. But others argue that’s a bad idea. The states asking for more control are largely ones whose economies have relied on fossil fuel production. Experts, including some who support carbon capture, worry states might have incentives to cut corners, which could lead to accidents. Dominic DiGiulio, a former EPA environmental engineer, told Jean that most of the state agencies that would handle the permits promote fossil fuel development — not environmental protection — in their mission statements. “I have concerns that the states would just be doing box-checking,” said DiGiulio, who is now a consultant. A number of states have enacted laws that they say would guarantee environmental protections matching any EPA puts in place as the carbon storage industry matures. “Without any impact to rigor or environmental standards, you’re taking more decisions back to the local level,” said Jeremy Harrell, with the conservative clean energy nonprofit ClearPath, which supports giving states permitting authority. Carbon capture and sequestration isn’t a new idea, but its technology has evolved. And the industry has had some high-profile failures — to the tune of billions of dollars in technology to capture emissions at coal-fired power plants that didn’t quite work as planned. Today, the safe transportation and storage of carbon dioxide is shaping the public debate. “There aren’t many sequestration projects that exist yet,” Derek Sylvan, with the Institute for Policy Integrity at New York University, told Jean. “So, it’s especially important for the next wave of projects to get extra scrutiny until all the necessary safety precautions are well understood.”   Thank goodness it's Friday — 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. And folks, let’s keep it classy.   GROWING IN THE GOLDEN STATE: POLITICO California is growing, reinforcing our role as the indispensable insider source for reporting on politics, policy and power. From the corridors of power in Sacramento and Los Angeles to the players and innovation hubs in Silicon Valley, we're your go-to for navigating the political landscape across the state. Exclusive scoops, essential daily newsletters, unmatched policy reporting and insights — POLITICO California is your key to unlocking Golden State politics. LEARN MORE.     Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Ben Lefebvre breaks down the Biden administration's decision to cancel Trump-era oil leases in Alaska’s Arctic National Wildlife Refuge and why it's fueling criticism from both sides of the aisle. Power Centers President Joe Biden tours a shipyard in Philadelphia with welder apprentices. | Susan Walsh/AP Photo Clean energy worker shortage President Joe Biden's climate law is spurring billions of dollars of investment in clean energy and transportation, sectors that have transitionally relied on fossil fuels, laying the groundwork for millions of new jobs, from electricians and heat pump installers to welders and construction crews, writes Brian Dabbs. But some skeptics say that without improvements in workforce programs, there won't be enough skilled workers to power the clean energy transition. G20 faces climate impasse Leaders of the world’s 20 biggest economies will gather this weekend in India, where geopolitics could make it hard to reach agreement on major climate issues. Many governments have hardened their positions since leaders last met in November, writes Sara Schonhardt. “There’s a big risk that they don’t rise above the divisions that we saw in Goa and Chennai," said Alden Meyer, a senior associate at E3G. Paris goals slip away Almost eight years after the Paris climate agreement was signed, the world isn't on track to meet its target of limiting global warming, writes Federica Di Sario. That finding in a comprehensive U.N. climate report issued today means that countries have less than three months to come up with a response before the COP28 climate conference begins. In Other News Scotland's carbon sink: Meet the vast bog that helps fight climate change. Activism: Fossil fuel protesters were arrested after delaying a U.S. Open match.   Enter the “room where it happens”, where global power players shape policy and politics, with Power Play. POLITICO’s brand-new podcast will host conversations with the leaders and power players shaping the biggest ideas and driving the global conversations, moderated by award-winning journalist Anne McElvoy. Sign up today to be notified of the first episodes in September – click here.     Subscriber Zone A showcase of some of our best subscriber content. A spinning offshore wind turbine. | Francis Chung/POLITICO A major credit ratings agency has downgraded the outlook for offshore wind developer Ørsted A/S to “negative,” the latest sign that high inflation and congested supply chains are hurting the emerging clean energy sector. The Treasury Department is teeing up guidance on several tax credits in Biden’s climate law that are designed to boost domestic manufacturing of electric vehicles, sustainable aviation fuel and clean hydrogen production. Former President Donald Trump's energy plan would swap a clean energy economy with "hundreds" of new fossil fuel power plants, eliminate climate regulations, and increase oil and gas drilling. That's it for today, folks. Thanks for reading, and have a great weekend!   Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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