Oil and the Chamber prepare to defend … the IRA?

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

May 21, 2024 View in browser   By Arianna Skibell Presented by Chevron A view of the U.S. Chamber of Commerce building in Washington in 2011. | Mandel Ngan/AFP via Getty Images Big business and the nation’s largest oil lobby are gearing up to save a landmark piece of legislation from oblivion should Republicans retake the White House next year. Ready for a twist? It’s the same signature Biden climate statute they largely opposed two years ago. Whether the U.S. Chamber of Commerce and the American Petroleum Institute would hold any sway with a President Donald Trump 2.0 is certainly hard to say, writes Kelsey Brugger. But their interest in preserving the Inflation Reduction Act — or at least the portions that would aid the industry — showcases the way that President Joe Biden’s hundreds of billions of dollars in grants, loans and tax breaks have potentially scrambled traditional business and political alliances. “It’s Donald Trump — you never really know,” Tom Pyle, president of the conservative American Energy Alliance and former Trump transition team lead, told Kelsey. Both trade groups’ campaign arms overwhelmingly back Republican candidates, and oil executives in particular have been eyeing a series of policy victories they hope to win in a second Trump presidency. But they’re also gearing up to protect major parts of the climate law, amid questions about whether Trump will seek to repeal it wholesale. “Business is going to defend the Inflation Reduction Act,” said Christopher Guith, senior vice president at the Chamber’s Global Energy Institute. One reason for this fealty: The law has already spurred billions of dollars in new private investments, including many in GOP-led districts. Fossil fuel companies are especially fond of IRA provisions such as those that boosted hydrogen and carbon capture tax credits. (Oil and gas companies have begun to embrace technologies that could keep their businesses afloat as the nation transitions to cleaner fuel.) But big business holds less power over Republican lawmakers than it once did, calling into question whether the Chamber and API throwing their weight behind the climate law will matter. “I think the Chamber of Commerce has lost an extraordinary amount of influence in the Republican conference,” Republican Sen. J.D. Vance of Ohio told Kelsey. But he added: “Obviously, if you hear from a local company in your constituency, that matters a lot.” Many Republican lawmakers may indeed be hearing from local companies, given the number of GOP-led districts — at least 37 of them — enjoying clean energy investments from Biden’s climate law. Attempts to repeal too many of those boons could prove politically dicey. Perhaps for that reason, Rep. Garret Graves of Louisiana, considered a leader in the GOP on energy issues, recently said Republicans might take a “scalpel” to the climate law rather than a sledgehammer. Then again, Graves’ own future in Congress may be dicey because of a new redistricting map set to be in place for November’s election.   It's 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 Chevron: Chevron knows methane management is critical for a lower carbon future. We’re striving to lead in methane management with innovative practices, partnerships, and new technologies. These are a few ways we’re aiming to keep methane in the pipe.   Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Catherine Morehouse breaks down how the completion of Georgia Power's Vogtle plant, long-delayed and over budget, could actually open the door for new large nuclear plans. Power Centers Exxon Mobil CEO Darren Woods is being targeted by investors. | Richard Drew/AP Shareholders challenge Exxon Two of the nation’s most powerful pension funds are leading a shareholder uprising against Exxon Mobil over its climate policies with the aim of removing members of the company’s board of directors next week, write Avery Ellfeldt, Lesley Clark and Corbin Hiar. The California Public Employees’ Retirement System said it will vote against Exxon’s slate for the board. The attack comes after Exxon sued investors who had filed a resolution urging the company to move faster on cutting planet-warming emissions. The hydrogen-transport gap Biden’s $7 billion plan to build a “clean” hydrogen industry will require trucks, existing natural gas infrastructure and new pipelines to deliver millions of metric tons of the stuff from production facilities to buyers, writes Christian Robles. But trucks likely won’t be able to move enough hydrogen at scale to satisfy expected demand, and no federal agency has authority to issue permits for interstate clean hydrogen pipelines. Then there are the safety concerns. UK backs off climate accounting move The U.K. government announced it will not weaken future climate targets by carrying over surplus emissions reductions achieved in previous years, writes Abby Wallace. Government ministers spent weeks considering a move to relax the U.K.'s pollution limits in the coming years, citing the extra emissions the country cut during the last five. Green groups argued doing so would damage the U.K.’s international credibility. In Other News Shaky alliance: Biden and oil majors had a truce. Now, it’s collapsing. Carbon offsets, anyone? Jeff Bezos' climate and biodiversity fund has pumped billions into climate and nature projects. Here's why are experts uneasy.   A message from Chevron:   Subscriber Zone A showcase of some of our best subscriber content. The path of the Mountain Valley pipeline as it crosses Blue Ridge Parkway at Adney Gap. | Heather Rousseau/The Roanoke Times via AP The Supreme Court has denied Virginia landowners another chance to fight federal approvals for the Mountain Valley pipeline and other natural gas projects. The White House said Biden would veto a pending resolution to undo the Energy Department's final efficiency standards for residential furnaces should it reach his desk. A Maryland judge released an oil industry association from a lawsuit that could hold it financially accountable for climate change — but left the door open to conspiracy claims against the trade group. That's it for today, folks! Thanks for reading.   A message from Chevron: By 2028, our upstream methane intensity target is set to be 53% below the 2016 baseline. To help us get there, we’ve trialed 14 advanced methane technologies including satellites, planes, drones, and fixed sensors to help reduce methane emissions intensity. In the Permian, we have deployed real-time autonomous optimizers that continuously monitor facilities and well conditions to help prevent flaring, venting and well shutdowns. Developing new solutions to provide energy that’s affordable, reliable and ever-cleaner, that’s energy in progress.     Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

To change your alert settings, please log in at https://login.politico.com/?redirect=https%3A%2F%2Fwww.politico.com/settings This email was sent to rouf@idiot.cloudns.cc by: POLITICO, LLC 1000 Wilson Blvd. Arlington, VA, 22209, USA Unsubscribe | Privacy Policy | Terms of Service