Biden’s $200 billion energy cash dash

Presented by American Clean Power: Your guide to the political forces shaping the energy transformation

Apr 10, 2024 View in browser   By Arianna Skibell Presented by American Clean Power Due to a publishing error, Tuesday’s edition of Power Switch never hit your inbox. In light of this, below you will find an updated version of yesterday’s publication. And stay tuned for another issue of your favorite energy and climate newsletter this evening. POLITICO illustration by Jade Cuevas/Images by iStock The Biden administration has more money to lend for clean energy than it can conceivably spend before Inauguration Day. That means a potential President Donald Trump could take control of billions of dollars in financing for next-generation energy projects, from solar farms and batteries to hydrogen production and lithium mining, write Kelsey Tamborrino and Brian Dabbs. The stakes are high. President Joe Biden secured Congress’ approval to lend more than $200 billion to green the nation’s power sector and economy. The Energy Department office in charge has received 203 active applications seeking a total of $262.2 billion. But getting that money out the door — without allegations of waste or scandal — is no small task, and the DOE Loan Programs Office has so far green-lighted or conditionally approved a little more than $25 billion in loans and loan guarantees. Energy Secretary Jennifer Granholm told POLITICO that officials are aware of the ticking clock but want to ensure the money goes to the right projects. “We don’t want to leave anything on the table. But I understand that you’ve got to do it right,” she said. The loan program continues to face Republican attacks for its failed Obama-era $535 million loan guarantee to the solar manufacturer Solyndra. Still, the office’s loan portfolio from that time, valued at $34 billion, ultimately turned a profit. It has also been credited with lowering the cost of solar and wind power, as well as boosting a fledgling car company called Tesla. Trump’s campaign did not respond to requests for comment about whether he would try to slash the loan program, as he proposed in his first term, if he wins the November election. But his campaign has pledged that the former president would “immediately stop all Joe Biden policies that distort energy markets.” Heather Reams, the president of the conservative clean energy group Citizens for Responsible Energy Solutions, said she would expect “a less aggressive LPO in a Trump administration.” “That is, to me, kind of a given,” she said. Sen. Martin Heinrich (D-N.M.) told Kelsey and Brian that the program’s billions would likely “just die on the vine” under Trump. Heinrich said the loan program is “one of the most important tools we have to be competitive with an aspirational China. And I worry that if there were a Trump administration, we would give that up.”   It (was) Tuesday — 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.   A message from American Clean Power:  The story of clean power is one of American success. This growing industry provides over 460,000 jobs across the United States and is creating a new domestic manufacturing boom. Clean power is not just clean—it’s reliable, affordable, and American made. Learn more.   Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Hear the story from Kelsey directly as she breaks down why DOE’s LPO is moving slowly and what would happen to the remaining money under a second potential Trump presidency.   A message from American Clean Power:   Power Centers Drivers navigate traffic and the weather while crossing the Golden Gate Bridge on March 1. | Jeff Chiu/AP California keeps its authority over car pollution A federal appeals court has allowed California to retain its longstanding authority to set stricter fuel emissions standards for automobiles than the federal government, writes Lesley Clark. The ruling comes as a major relief for California’s standards — which 17 other states and the District of Columbia have adopted — as well as a boost to the White House’s efforts to meet its climate goals, which include electrifying half of all car sales by 2030. 200+ chemical plants face pollution crackdown The Biden administration is reining in releases of cancer-causing compounds and other hazardous pollutants in a crackdown that targets petrochemical plants clustered in areas like Louisiana’s “Cancer Alley,” writes Sean Reilly. The regulations target more than 200 industrial facilities and are projected to cut industry emissions of hazardous air pollutants by more than 6,200 tons each year. Inside Schumer’s quest to save offshore wind When the offshore wind industry suffered an existential setback in New York last October, Senate Majority Leader Chuck Schumer stepped in to help, writes Emma Dumain. Five months later, Treasury Department officials agreed to tweak climate tax credits, laying the foundation for a major project at the South Brooklyn Marine Terminal known as Empire Wind I. Court comes down hard on Switzerland Europe's top human rights court rules that Switzerland violated its citizens' human rights by failing to protect them from climate change's catastrophic effects, writes Federica Di Sario. The ruling, which is expected to reverberate across future lawsuits, came after elderly Swiss women charged that the country wasn't protecting them from climate disasters such as heat waves that disproportionately harm older people. In Other News Win some, lose some: EV ownership ticks up, but fewer nonowners want to buy one. A slow burn: The time paradox of climate change.   Access New York bill updates and Congressional activity in areas that matter to you, and use our exclusive insights to see what’s on the Albany agenda. Learn more.     Subscriber Zone A showcase of some of our best subscriber content. A view of the Upstream Rock Run Coal Mine Remediation Site in Wayne National Forest in Ohio on July 2, 2021. | U.S. Forest Service A Bureau of Land Management plan that could allow drilling in 40,000 acres of the Wayne National Forest in Ohio is catching pushback from environmental groups. Environmental groups are pushing the Energy Department to make climate change and domestic energy prices major priorities in the agency’s new analysis of liquefied natural gas exports. The possibility of a second Trump presidency is looming over United Nations negotiators, as they race to meet a self-imposed deadline for completing a global agreement to tackle plastic pollution. That's it for today, folks! Thanks for reading.   SUBSCRIBE TO GLOBAL PLAYBOOK: Don’t miss out on POLITICO’s Global Playbook, the newsletter taking you inside pivotal discussions at the most influential gatherings in the world, including WEF in Davos, Milken Global in Beverly Hills, to UNGA in NYC and many more. Suzanne Lynch delivers the world's elite and influential moments directly to you. Stay in the global loop. SUBSCRIBE NOW.       A message from American Clean Power: Clean energy supports over 460,000 American jobs, powers tens of millions of homes, and delivers billions in investments each year to local communities.  As clean energy powers more homes and businesses than ever before, it's creating an American manufacturing boom. Over 120 new manufacturing facilities have been announced across the country—constructing the wind turbines, solar panels, and batteries that help our economy grow. The clean energy sector is committed to building on that progress—which is why technicians, installers, and engineers from the American Clean Power Association are on Capitol Hill this week to urge Congress to: Preserve tax incentives for the industry. Protect the right to build clean energy on private property. Pass bipartisan permitting reform. Learn more.     Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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