‘Rogue’ agency backs overseas oil and gas

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Mar 15, 2024 View in browser   By Arianna Skibell A Bapco oil refinery in Sitra, Bahrain, in 2006. | Hasan Jamali/AP The nation’s export credit agency is backing an oil and gas project in Bahrain to the tune of a $500 million loan guarantee. The U.S. Export-Import Bank’s announcement Thursday marks its latest infusion of cash into foreign fossil fuel infrastructure, despite calls from the Biden administration to stop supporting such overseas projects, Sara Schonhardt writes. Last year, the Ex-Im Bank, as it’s called, approved a $100 million loan to an oil refinery in Indonesia, which the White House said is not aligned with the Biden administration’s climate policies. And since 2021, when President Joe Biden signed an executive order banning the financing of overseas fossil fuel projects, the bank has provided $1.3 billion toward oil and gas operations, according to Oil Change International, which tracks such projects. The bank is an independent federal agency authorized by Congress and governed by its charter, making it difficult for a president to directly interfere with its decisionmaking. (The bank’s charter does allow the president to deny a transaction when doing so would advance U.S. policy in certain areas, including environmental protection, Sara noted). “The EXIM Bank is demonstrating that it is a rogue agency — unwilling to follow Congress or the administration’s directive,” said Democratic Sen. Jeff Merkley of Oregon. Merkley joined several of his colleagues in sending a letter Wednesday warning the bank against making financing decisions that could exacerbate the climate crisis. The bank maintains that the latest financing decision will not harm the planet. Reta Jo Lewis, who heads the bank, said the loan guarantee would help state-owned Bapco Energies implement measures “intended to reduce greenhouse gas emissions,” such as the use of methane leak detection equipment, solar energy production and the elimination of "non-emergency flaring." An environmental impact assessment on the Ex-Im Bank’s website notes, however, that the project would drill more than 400 new oil wells and 30 new gas wells, releasing 1.4 million metric tons of planet-warming pollution over two years.   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.   On the ground in Albany. Get critical policy news and analysis inside New York State. Track how power brokers are driving change across legislation and budget and impacting lobbying efforts. Learn more.     Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Catherine Morehouse breaks down the political hurdles Biden must overcome to lock in a Democratic majority at the Federal Energy Regulatory Commission before November's election. Power Centers Republican presidential candidate and former President Donald Trump speaks at a campaign rally March 9 in Rome, Georgia. | Mike Stewart/AP Trump allies target the Pentagon Dozens of conservative groups have drafted a plan for the next Republican administration that advises a future president to prevent the U.S. military from considering climate science when planning for national security threats, writes Scott Waldman. The proposal, written by a former top Trump official who would likely join a second administration, would change the way the military is preparing to deal with deadly heat waves, wildfires and flooding. Is it too late for Biden’s grid expansion? The Biden administration has a plan to double the size of the high-voltage power grid needed to ship more clean energy across the country, writes Peter Behr. But the proposal would require a second term for Biden to enact it. “They needed to get in front on this issue a bit more,” said James Hoecker, former chair of the Federal Energy Regulatory Commission and a longtime advocate for expanding the power grid. Democrats blast U.S. Chamber's follow-through on climate pledges Two Senate Democrats have launched a public shaming campaign against the U.S. Chamber of Commerce, accusing the group of “lying” about its commitment to tackling climate change, write Emma Dumain and Timothy Cama. Sens. Sheldon Whitehouse of Rhode Island and Brian Schatz of Hawaii claim to have a “smoking gun” in the form of emails, though the Chamber disputes the lawmakers’ accusations. In Other News Impacts: D.C.-area tree pollen is surging because of abnormally warm weather. Wildfires: In Texas, as in California, big fires lead to big lawsuits.   JOIN US ON 3/21 FOR A TALK ON FINANCIAL LITERACY: Americans from all communities should be able to save, build wealth, and escape generational poverty, but doing so requires financial literacy. How can government and industry ensure access to digital financial tools to help all Americans achieve this? Join POLITICO on March 21 as we explore how Congress, regulators, financial institutions and nonprofits are working to improve financial literacy education for all. REGISTER HERE.     Subscriber Zone A showcase of some of our best subscriber content. A ship readies export of liquefied natural gas via Corpus Christi, Texas. | Business Wire The Biden administration is aiming to launch a framework by next year to measure and verify greenhouse gas emissions of liquefied natural gas exports. The administration will not sell offshore wind rights in the Gulf of Maine’s prime lobster area in an upcoming auction, according to a final plan on where to advance wind energy in the north Atlantic Ocean. FERC will weigh a petition from natural gas utility groups calling for the agency to ban pipeline company practices that they argue needlessly raise costs for consumers. 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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