Did Biden herald the end of coal?

Presented by Williams: Your guide to the political forces shaping the energy transformation

May 17, 2024 View in browser   By Arianna Skibell Presented by Williams The Biden administration is proposing to end new coal leases from federal lands in the Powder River Basin. | Matthew Brown/AP The Biden administration’s decision to halt new coal leases in the Powder River Basin in Montana and Wyoming, the nation’s largest coal-producing region, set off a political (and predictable) firestorm. Environmentalists cheered the “bold and ambitious climate action,” while conservatives predicted end times for American energy. But in reality, as Benjamin Storrow writes, the decision will have little effect on the climate or the nation’s coal production — at least in the near term. The Bureau of Land Management has not executed a new coal lease in the basin in over a decade. Energy companies’ appetite for new leases has waned as domestic demand for the fuel has plunged. Plus the decision does not affect current leases, and as Alex Guillén notes, production on existing leases could last until as late as 2060 for one Montana mine. (Most mines would be depleted by 2041, though.) But the decision does “start the clock toward the end of production out there," Andy Blumenfeld, an industry analyst with McCloskey by OPIS, told Ben. In the long run, that could make a significant dent in the nation’s atmospheric pollution from burning coal. Almost half of the greenhouse gas emissions associated with energy production on federal land came from coal in 2022. Of those, production in Wyoming accounted for more than 80 percent, and another 5 percent came from operations in Montana. While the emergence of cheaper natural gas and power from wind and solar have cut into coal’s margins in recent years, advocates argue it’s too soon to say goodbye to the black rock. As demand for energy skyrockets and the reliability of the nation’s electric grid faces questions, some utilities have delayed plans to retire their coal plants. But whether new leases for coal production in the Powder River Basin remain off limits will likely depend on who wins the election in November. In 2017, newly elected President Donald Trump quickly axed an Obama-era moratorium on new coal leases.   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.   A message from Williams: Williams has been powering America with clean natural gas for more than a century, so we know what it takes to safely fuel progress. We can move toward a clean energy future while meeting rising energy demands—which is why we continue to invest in reliable, low-carbon clean energy projects that will help lower emissions nationwide and globally. The path to sustainability will be powered by experience—and experience powers us.   Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Kelsey Tamborrino breaks down why the Biden administration's latest actions to support U.S solar manufacturers could help create domestic jobs but also threaten America’s clean energy growth.   A message from Williams:   Power Centers House Agriculture Chair Glenn Thompson on Friday proposed a five-year farm bill. | Angela Weiss/AFP via Getty Images House unveils $1.5 trillion farm bill House Agriculture Chair Glenn Thompson’s $1.5 trillion farm bill significantly boosts farm safety net programs but crosses Democratic leaders’ red lines on some issues, setting up a showdown with the Senate over the must-pass legislation, writes Meredith Lee Hill. The farm bill authorizes programs throughout the Department of Agriculture and has become a focus for Democrats and environmental groups pursuing farming practices that reduce emissions tied to climate change, writes Marc Heller. Nothing to see here, just your average regulation The Biden administration is trying to cast its landmark climate rule for power plants as a run-of-the-mill regulation in the hopes the courts will agree, writes Jean Chemnick. And so far, the rule has been spared. A federal appeals court today refused to halt the regulation from taking effect but could choose to block the rule at a later date, writes Pamela King. Supreme Court petition targets ‘relic of Jim Crow’ A legal fight over how Georgia elects its utility regulators may soon come before the Supreme Court in a case that could reverberate beyond the energy sector, writes Niina H. Farah. Richard Rose and three other Black voters in Georgia made the argument in a new petition docketed in March that the state’s current system violates federal Voting Rights Act protections against discriminatory elections. In Other News Climate-fueled: Scientists say storms like the one that battered Houston, which left at least four people dead, could become more intense as the planet warms, but nailing down trends is still hard. A risky gamble: Europe is spending billions on "green" hydrogen.   THE GOLD STANDARD OF ENERGY POLICY REPORTING & INTELLIGENCE: POLITICO has more than 500 journalists delivering unrivaled reporting and illuminating the policy and regulatory landscape for those who need to know what’s next. Throughout the election and the legislative and regulatory pushes that will follow, POLITICO Pro is indispensable to those who need to make informed decisions fast. The Pro platform dives deeper into critical and quickly evolving sectors and industries, like energy, equipping policymakers and those who shape legislation and regulation with essential news and intelligence from the world’s best politics and policy journalists. Our newsroom is deeper, more experienced, and better sourced than any other. Our energy reporting team—including Ben Lefebvre, Alex Guillen and Kelsey Tamborrino—is embedded with the market-moving legislative committees and agencies in Washington and across states, delivering unparalleled coverage of energy policy and the energy industry. We bring subscribers inside the conversations that determine policy outcomes and the future of industries, providing insight that cannot be found anywhere else. Get the premier news and policy intelligence service, SUBSCRIBE TO POLITICO PRO TODAY.     Subscriber Zone A showcase of some of our best subscriber content. Enoch Adams prepares his rifle for a caribou hunt on Sept. 10, 2019, in Kivalina, Alaska. | Joe Raedle/Getty Images A new study finds that rural Alaskans who face worsening climate conditions rarely leave their homes for safer, more urbanized areas. New York Gov. Kathy Hochul has cracked open the door for new, small nuclear power plants as a way for the state to try to meet its ambitious climate goals. The Energy Department needs to beef up its analysis of the financial and technical risks associated with carbon capture and storage projects, the Government Accountability Office said. Policy changes triggered by a second Trump administration would make it nearly impossible to reach net-zero planet-warming pollution by 2050, according to a report by consulting firm Wood Mackenzie. "However, focusing on decarbonisation will be an enduring priority for investors, companies and consumers." That's it for today, folks. Thanks for reading, and have a great weekend!   LISTEN TO POLITICO'S ENERGY PODCAST: Check out our daily five-minute brief on the latest energy and environmental politics and policy news. Don't miss out on the must-know stories, candid insights, and analysis from POLITICO's energy team. Listen today.       A message from Williams: At Williams, our experience speaks for itself. We have a 116-year history of turning innovation into action, continually transforming ourselves to protect the communities around us and help America meet rising energy demand with secure and affordable natural gas. That know-how has taught us the importance of prioritizing safety and reliability and drives our investments in emissions-reducing technologies. We are pioneering the next generation of trust and transparency through our NextGen Gas strategy, which provides low-emissions natural gas that has been securely tracked and independently certified. Our commitment to clean energy projects helps us deliver one third of the nation’s natural gas across 33,000 miles of energy infrastructure, while prioritizing safety and sustainability at every step. Together, we can reliably and affordably power the world while ushering in a clean energy future, because experience powers us.     Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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