Manchin is battling Biden — again

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Dec 19, 2023 View in browser   By Christian Robles Presented by Sen. Joe Manchin (D-W.Va.) speaks during the U.S. Capitol Christmas Tree lighting ceremony on the West Front of the Capitol, on Nov. 28. | Mark Schiefelbein/AP When the energy nerds of the world write tales of Joe Biden's presidency, a chapter will be devoted to Sen. Joe Manchin's regular jabs over electric vehicles. Since the passage of last year’s Inflation Reduction Act, the irascible chair of the Energy and Natural Resources Committee has challenged the Treasury Department over how it interprets "Made in America" requirements for electric car batteries. The West Virginia Democrat is now asking the Government Accountability Office to issue a legal opinion on whether Congress can undo Treasury’s actions, writes Timothy Cama. The letter targets Treasury guidance for how car companies should interpret language in the law that requires that minerals and parts used to make EV batteries are sourced primarily out of the U.S. or through its trading partners. The global supply chain for EVs began revolving around China long before automakers shoveled billions of dollars into electric car and battery assembly plants and before the U.S. government spent taxpayer money on developing a U.S. market to replace gasoline-fueled cars. So Manchin has made a sport of arguing that Biden and auto manufacturers are coddling China by pushing for too much flexibility, as the U.S. hands out generous tax benefits to EV buyers. The White House has been grappling with how to balance a climate policy that requires more zero-carbon cars on the road and the equally desirable push for electric cars to be built on the back of U.S.-based manufacturing. Manchin, representing a state rooted in a fossil fuel economy, has been a persistent thorn in Biden’s side and complicates White House goal of zeroing out U.S. carbon pollution by 2050. They’ve crossed each other over a methane fee program and a tax credit for hydrogen production. He’s pushed back through letters, regulatory comments and legislation. Manchin’s missive to the GAO is a little wonky: He argues that because Treasury guidance is being enforced as if they were final rules, it should be subject to the Congressional Review Act, a law that makes it easier for Congress to overturn recently finalized rules. Biden can still veto the measure. But if it succeeds on Capitol Hill, it becomes grist for the president’s critics, particularly if former President Donald Trump retakes the White House. How it all shakes out is worth a hefty sum for families hoping to buy an electric car: a tax credit worth up to $7,500.   It's Tuesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Christian Robles. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to crobles@eenews.net.   A message from Williams: Meeting increasing energy demands while reducing emissions requires collaboration and balanced energy solutions. As a trusted operator with more than 100 years of experience in the evolution of energy delivery, Williams is leveraging its existing infrastructure to reliably meet increasing energy needs while supporting emissions reductions. Learn more about how our natural gas focused strategy embraces change and complements the growth of renewables.   Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Zach Colman talks about how "Bidenomics" is gaining more traction abroad than in the United States. Power Centers Federal Energy Regulatory Commission headquarters in Washington. | Francis Chung/E&E News How the electric grid became politicized When then-President George W. Bush signed the Energy Policy Act of 2005, he was flanked by Democrats and Republicans as he called for greater federal authority in selecting power lines. The contrast between both parties' approach to the electric grid is much starker today, writes Miranda Willson. One ongoing rulemaking at the Federal Energy Regulatory Commission embodies the new divide. Republicans have gone after a proposed grid build-out rule, arguing that it would force red states to foot the bill for transmission lines benefitting climate-conscious blue states. Supporters of the rule say that changes would not only make the electric grid green but also increase its resiliency. California targets oil price gouging. It's hard. This spring, California Gov. Gavin Newsom signed into law a measure to penalize oil companies for price gouging, but nine months later, implementation has been a challenge, writes Anne C. Mulkern. The new law requires oil refineries to submit daily reports and notify state officials when they go offline, in addition to allowing the state Energy Commission to set a “gross gasoline refining margin” for oil companies. The Newsom administration hasn’t set a deadline for full implementation of the law and is wrestling with philosophical questions such as, “What exactly is price gouging?” Bipartisan effort to break sea-mining impasse struggles in Senate Prospects of the Senate passing the United Nations Law of the Sea treaty this Congress appear low, which could jeopardize the U.S.’s ability to mine the deep sea for valuable minerals and compete with China. Nevertheless, Sen. Lisa Murkowski (R-Alaska) is on a quest to get her Republican colleagues, who objected to the measure in 2012, on board, write Hannah Northey and Kelsey Brugger.   A message from Williams:   In Other News Balloonlike battery: A facility that can store energy and compress carbon dioxide to generate electricity will replace Wisconsin’s largest coal plant, the Columbia Energy Center, when it closes in the next few years. Climate migrants: About 3.2 million Americans moved because of the mounting risk of flooding linked to climate change between 2000 and 2020. Subscriber Zone A showcase of some of our best subscriber content. The Seattle City Council voted last week to transition large buildings away from fossil fuels. The city skyline is pictured. | John Moore/Getty Images Seattle set the first-of-its-kind policy to require large buildings to achieve net-zero emissions by 2050, an ambitious goal met with praise from some environmentalists. Legal and legislative efforts to block the Federal Emergency Management Agency from increasing the cost of flood insurance have failed this year. The Biden administration will seek to limit — but not eliminate — logging in old-growth forests in a bid to boost the administration's climate change and conservation agendas. That's it for today, folks! Thanks for reading.   A message from Williams: As we approach important climate targets, our planet is still burning more coal worldwide for electricity generation than any other time in history. Replacing carbon-intensive coal with natural gas is a readily available, pragmatic solution to dramatically reduce emissions. Globally, switching the top 5% of carbon emitting power generation plants would reduce world emissions from power generation by 30%. Natural gas, in partnership with renewables, is the best way to efficiently and affordably meet increasing clean energy demands brought on by electrification while providing reliable backup capacity to support the growing deployment of solar and wind power. Currently, natural gas powers more American electricity generation than all renewables combined and has 100% reliability as ascribed by regulators. Our industry can address this complex energy landscape with infrastructure developments and investments in the advancement of natural gas—a must-have complementary fuel to grow alongside renewables. Learn more.     Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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