Inflation saves DeSantis — and solar

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Apr 29, 2022 View in browser   By Debra Kahn and Lorraine Woellert Presented by THE WEEK THAT WAS Florida Gov. Ron DeSantis speaks at the Conservative Political Action Conference on Feb. 24, 2022, in Orlando, Fla. | John Raoux, file/AP Photo DESANTIS DELIGHTS DEMS — Florida Gov. Ron DeSantis stunned Democrats this week by siding with them in a war over solar power. The prospective Republican presidential candidate on Wednesday vetoed a GOP bill that would have cut payments to owners of rooftop solar systems — something long sought by the state's investor-owned utilities. His justification for bucking his fellow Republicans? "Given that the United States is experiencing its worst inflation in 40 years and that consumers have seen steep increases in the price of gas and groceries, as well as escalating bills, the state of Florida should not contribute to the financial crunch that our citizens are experiencing," DeSantis wrote in his veto message. It's a huge upset for Florida Power & Light, which wrote the bill and has been trying to reduce solar incentives for years. Specifically, the governor took exception to a provision that would have let utilities pass solar costs to all customers. Solar advocates are still trying to make sense of what happened, but they're not looking a gift horse in the mouth. "There's a lot of speculation going on in Florida," said Katie Chiles Ottenweller, Southeast director for Vote Solar. "The one thing I feel like I can say with confidence is that he is recognizing that there's some pretty intense economic pressures, and he's choosing to protect consumers over protecting utilities." Inflation makes politicians do off-brand things — see Democrats' dithering over gas taxes. If we are heading into a recession, and if natural gas prices stay high, expect policymakers to pay more attention to electricity rates, which fund a massive array of climate and adaptation measures: Electric vehicle charging stations, renewable energy, transmission lines to carry renewable energy, and burying power lines to reduce the risk of wildfires. "The stuff that you might not do to reduce costs because you want to have your cake and eat it too, maybe you change your view on that in an interval of time like this," said Michael Wara, director of Stanford University's climate and energy policy program. Sunshine vs. Golden State: DeSantis is now in the position of setting a pro-solar bar for his rival, California Gov. Gavin Newsom, to clear. California regulators are rewriting their rooftop rules after getting slammed by solar companies for proposing drastic cuts to incentives. YOU TELL US GAME ON – Happy Friday! Welcome to the Long Game, where we're delivering the latest on efforts to shape our future. Tuesday through Friday, we've got data-driven storytelling, compelling interviews with industry and political leaders, and more news to keep you in the loop on sustainability. Our team is sustainability editor Greg Mott, deputy editor Debra Kahn, reporters Lorraine Woellert and Catherine Boudreau and digital producer Jordan Wolman. Reach them at gmott@politico.com, dkahn@politico.com, lwoellert@politico.com, cboudreau@politico.com and jwolman@politico.com. Want more? Sign up for the Long Game. Four days a week and still totally free! A message from National Grid: There Is A Better Way. National Grid is announcing our path to a fossil-free energy future. By using renewable natural gas, and green hydrogen produced from water using wind energy, we can achieve a fossil-free energy future by 2050 or earlier.   WASHINGTON WATCH TOO LONG, HAVEN'T READ — The fossil fuel industry and its allies are taking aim at the Securities and Exchange Commission's climate disclosure rule. This week, three dozen oil and gas trade associations led by the Western Energy Alliance asked the commission to extend its deadline for public comment, noting that the 506-page rule has 1,068 footnotes, references 194 academic and governmental reports, imposes a $10.2 billion cost, and seeks answers to 196 questions. The comment period, which is set to close at the end of May, should be extended to a full 180 days, which the Administrative Procedure Act requires for complex rulemakings, the group wrote. Over in academia, 22 law and finance professors challenged the SEC's authority to even issue the rule. We liked this argument in particular: "Climate change is a politically-charged issue" and the SEC proposal would compel corporations "to explain the views and opinions of their boards and officers." (We thought climate change was a scientific issue?) The letter was led by Lawrence Cunningham, a professor at George Washington University Law School and the man behind the Quality Shareholder Initiative, a research group focusing on individual investors. Pay attention. The lawsuit, when it comes, likely will be built around some of the arguments laid out in these letters.   INTRODUCING DIGITAL FUTURE DAILY - OUR TECHNOLOGY NEWSLETTER, RE-IMAGINED:  Technology is always evolving, and our new tech-obsessed newsletter is too! Digital Future Daily unlocks the most important stories determining the future of technology, from Washington to Silicon Valley and innovation power centers around the world. Readers get an in-depth look at how the next wave of tech will reshape civic and political life, including activism, fundraising, lobbying and legislating. Go inside the minds of the biggest tech players, policymakers and regulators to learn how their decisions affect our lives. Don't miss out, subscribe today.     SUSTAINABLE FINANCE RETIREMENT BROS — Fidelity Investments, which manages 23,000 companies' 401(k) programs, announced this week it would let them add a bitcoin investment option to their retirement plans. It's the first major plan administrator to venture into cryptocurrency, as Corbin Hiar reports for POLITICO's E&E News. The value of bitcoin has fallen nearly 43 percent since last November. Investment strategy aside, bitcoin also has a huge carbon footprint — its annual energy consumption has grown to rival that of Thailand. Fidelity's move to promote bitcoin to investors raises questions about the credibility of the company's climate goals, which include integrating sustainability "considerations across our products, services, and investment decisions." The new bitcoin offering "is just fundamentally incompatible" with Fidelity's environmental aims, said Duke Law School professor Lee Reiners, executive director of the Duke Global Financial Markets Center. More from Corbin here.   A message from National Grid:   BUILDING BLOCKS CASHING IN — California prides itself on using revenue from its greenhouse gas trading program to advance zero-emission vehicles, fund housing near transit and benefit disadvantaged communities. But a sizable chunk of money is also going to big business, as Anne C. Mulkern reports for POLITICO's E&E News. Anheuser-Busch Cos. got nearly $5.8 million payable through 2024 to design and install a microgrid system at its Los Angeles-area brewery, while Sun-Maid got $5.3 million payable through next year to fund a fully electric raisin dryer at its Fresno facility. Other big-name recipients include PepsiCo Inc., Frito-Lay Inc., Foster Farms, Campbell Soup Co., E&J Gallo Winery and Saputo Cheese USA . Food and beverage production generates less than 5 percent of the industrial sector's emissions, which in turn make up about a quarter of California's total carbon pollution. While such corporations are perhaps not the ideal "poster child" for a cap-and-trade revenue recipient, they likely do deliver emission reductions, said Ethan Elkind, a climate research fellow at the University of California, Berkeley's School of Law. "If these are really high energy-intensive pieces of equipment with a pretty big carbon footprint and a little bit of money from the state can give an incentive to these companies to swap them out … arguably that's a good investment," he said. Read more from Anne here. WHAT WE'RE CLICKING — Foundations are under pressure from environmental justice groups to shift their funding strategies and back local climate projects instead of technological research. The Chronicle of Philanthropy has a deep dive into the changes at ClimateWorks. — " Wynn Bruce lit himself on fire on Earth Day 2022 because he believed it might inspire people to work against climate change. There is not any more or less meaning we need to take away from it." — Ford and G.M. need the U.S. to step up domestic battery production if the companies are to meet their EV production goals, Bloomberg reports. — Deforestation is killing the Amazon, and U.S. beef consumers are accomplices, according to the Washington Post. A message from National Grid: National Grid is announcing our path to a fossil-free energy future for our customers and communities. Our fossil-free plan will help achieve the Northeast's aggressive climate goals and set a new standard for energy companies. We will use renewable natural gas, green hydrogen generated from wind and solar power, battery storage, and greater energy efficiency to make our National Grid system fossil-free by 2050 or earlier. Climate scientists say renewable natural gas is a win-win for the environment. There Is A Better Way to keep energy affordable, reliable, and clean. That's why we are creating a hybrid pathway that preserves customer choice while delivering the clean, affordable energy future our customers want and deserve. See How.   LOOK AHEAD May 2 — American University's School of Public Affairs' Center for Environmental Policy holds its annual William K. Reilly Awards for Environmental Leadership. 1 p.m. May 2 — Lux Research holds a debate in Boston on whether sustainability is the enemy of growth. 4 p.m. May 2 — The Independent Community Bankers of America holds its 2022 Capital Summit through May 4. May 3 — Environmental Protection Agency holds a virtual meeting of the Science Advisory Board Per- and Polyfluoroalkyl Substances Review Panel. May 4 — Resources for the Future holds a virtual discussion on "Working Forests: A Path to Climate Solutions" at 12 p.m. Events are listed in Eastern Time   STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president's ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.       Follow us on Twitter Catherine Boudreau @ceboudreau Debra Kahn @debra_kahn Greg Mott @gwmott Lorraine Woellert @Woellert Jordan Wolman @jordanwolman   Follow us

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