Manchin's climate deal: Whiplash, anyone?

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

Jul 28, 2022 View in browser   By Arianna Skibell Presented by ExxonMobil Sen. Chair Joe Manchin (D-W.Va.). | Francis Chung/E&E News A new day, a new climate bill. But this time, call it the "Inflation Reduction Act of 2022." West Virginia Democratic Sen. Joe Manchin's surprise embrace of a historic $369 billion climate bill Wednesday night could set the United States on a path to reduce planet-warming emissions 40 percent compared with 2005 levels by decade's end. And, he says, combat inflation. If Democrats pass the bill, which they can do with a simple majority, it would be the biggest and most consequential legislative step ever taken by Congress to address the climate crisis. While the package's projected climate benefits wouldn't quite reach President Joe Biden's goal of cutting carbon pollution in half by 2030, it would be a significant step. Without it, the country is on track to cut emissions only 24 to 35 percent — far less than scientists say is needed to avert the worst of catastrophic warming. What's in, what's out  Despite Manchin's frequent castigation of various clean energy provisions in Democrats' original reconciliation bill, this iteration looks strikingly similar. The measure would reward consumers with tax credits for buying electric vehicles and electric heating, ventilating and air conditioning systems. It would boost domestic manufacturing of batteries and solar panels and penalize fossil fuel companies for excess methane emissions. The measure would reward existing nuclear power plants and carbon capture and storage technology. And it would invest in cleaning up communities disproportionately exposed to high levels of toxic air pollution. The package also offers multiple wins for fossil fuel development, which many environmentalists — though not all — are choosing to overlook given the plethora of renewable investments. For just one example, the bill would mandate offshore oil and gas lease sales in the Gulf of Mexico and off the coast of Alaska. What happens now? The package is not a done deal. The legislation's provisions must survive scrutiny from the Senate parliamentarian and then get through the closely divided Senate and House, where progressives lawmakers had sought stronger provisions. The package includes an increase in corporate tax rates and an effort to close the carried interest loophole, both steps that Sen. Kyrsten Sinema (D-Ariz.), whose vote is needed to pass the measure, had opposed. Still, advocates are feeling much more hopeful than they were at the start of this week, when the prospects of a climate bill seemed bleak.   It's Thursday — thank you for tuning into 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. This Is Climate Change Flooded buildings and roads near Lost Creek, Ky. | Ryan C. Hermens/Lexington Herald-Leader via AP Flash flooding in eastern Kentucky on Wednesday night has left at least three people dead and many more without homes. More than 8 inches of heavy rains caused flash flooding and mudslides as storms pounded numerous parts of central Appalachia. Kentucky Gov. Andy Beshear (D) called it some of the worst flooding in state history. Rising atmospheric temperatures are increasing the frequency and magnitude of flash floods.   A message from ExxonMobil: Producing for today. Investing in tomorrow. We're doing both. At ExxonMobil, we're investing to increase supplies of oil and gas to help meet today's demand. We're producing more oil and gas than any other American company and adding capacity to refine U.S. crude oil by 250,000 barrels per day. We're also investing over $15 billion in lower-emission initiatives through 2027 to support society's net-zero future. Learn more at ExxonMobil.com/supply   Power Centers Senate Majority Leader Charles Schumer confers with West Virginia Sen. Joe Manchin. | Chip Somodevilla/Getty Images Racing against the clock Senate Democrats are rushing to push their $700 billion-plus climate, tax and health care bill past the chamber's strict rules for avoiding a filibuster, write Marianne Levine and Anthony Adragna. They might have to litigate their Manchin-blessed agreement against Republicans in real time. And Sinema, whose support is not confirmed, has yet to weigh in. Read more here . Price surges The fallout from Russia's war in Ukraine and hot weather are sending U.S. natural gas prices soaring, write Mike Lee and Carlos Anchondo. That could have long-term impacts on the U.S. economy as summer electric bills and winter heating costs skyrocket. Here's the story . Blowing in the wind New York has announced it will buy power from a large suite of wind projects while adding requirements for transmission that could set a national precedent, writes David Iaconangelo. The state has begun soliciting project proposals from developers to build at least 2,000 megawatts of offshore wind — enough for about 1.5 million homes. Read more here . In Other News Mushrooms are shown. | Sean Gallup/Getty Images Magic mushrooms: In the fight against climate change, secret fungal networks that store carbon and help plants survive drought may provide some unexpected answers. That's eruptive: The majority of Earth's volcanoes could see heavier rainfall due to climate change, which increases eruptions and mudslides. Today in POLITICO's energy podcast: Ben Lefebvre explains why the national average price of a gallon of regular gas has fallen, if experts believe that trend will continue and how much credit the Biden administration truly deserves. Question Corner The science, policy and politics driving the energy transition can feel miles away. But we're all affected on an individual and communal level — from hotter days and higher gas prices to home insurance rates and food supply. Want to know more? Send me your questions and I'll get you answers.   A message from ExxonMobil:   Subscriber Zone A showcase of some of our best subscriber content. A rendering of a proposed Versatile Test Reactor. | Idaho National Laboratory via Department of Energy The Energy Department is trying to revive nuclear reactor technology that had been shelved by Congress. New scientific research is casting doubt on the effectiveness of mangroves and other marine plants to suck up carbon dioxide. Canada is celebrating the removal of a provision from Democrats' climate bill that would have rewarded U.S. electric vehicle makers over foreign ones. That's it for today, folks! Thanks for reading.   A message from ExxonMobil: Investing in energy and the world. At ExxonMobil, we're working to supply the reliable energy the world needs. We're investing and producing, more than any other American company, to increase supplies of oil and gas today. In fact, we are adding capacity to refine U.S. crude oil by 250,000 barrels per day—the equivalent of adding a new, medium-sized refinery. And we are investing more than $15 billion in lower greenhouse gas emissions initiatives through 2027. Increasing supplies of reliable energy and decreasing greenhouse gas emissions is not an "either/or" proposition. We can strengthen energy security and help advance the energy transition. Producing for today. Investing in tomorrow. We're doing both. Learn more about what we are doing to strengthen energy security at ExxonMobil.com/supply     Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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