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Walz’s next act: Climate law defender

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By Joel Kirkland

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Kamala Harris and Tim Walz at a campaign rally.

Democratic presidential nominee Vice President Kamala Harris and her running mate, Minnesota Gov. Tim Walz, hold hands and cheer during a campaign event in Philadelphia on Aug. 6. | Jamie Kelter Davis for POLITICO

Governors have a long tradition of powering their populist appeal by rebuilding what’s physically broken in their states, and then campaigning on it.

From Democratic Gov. Gretchen Whitmer’s pledge to “fix the damn roads” in Michigan to former Republican Gov. Jim Thompson’s popular “Build Illinois” program in the 1980s, boasts about fixing bridges, stringing electricity lines and opening factories have tended to fire up voters in the Midwest.

Two-term Minnesota Gov. Tim Walz, Vice President Kamala Harris’ choice for vice president, is cast in a similar mold — in this case, a Minnesota infrastructure program fueled by laws and orders Walz signed to cut red tape and speed permitting for electric transmission and renewable energy projects, to set a zero-carbon electricity standard, and to increase energy efficiency.

On the national stage, Walz is now thrust into the role as promoter and defender of more than $1 trillion in spending on clean energy infrastructure built into the 2022 Inflation Reduction Act and the 2021 bipartisan infrastructure law.

Today, during their first full day as a campaign duo, Harris and Walz barnstormed in Wisconsin and Detroit. In Eau Claire, Wisconsin, Walz stopped midspeech to call for help as a spectator at the front of the crowd overheated. (Walz refrained from mentioning climate change.) And when Harris took the stage, she promised to “bring manufacturing jobs back.”

“Because we all remember what it was like before the Inflation Reduction Act,” Harris said, citing parts of the law meant to bring down health care costs.

“We’re not going back,” she said, her voice inflecting higher. “We’re not going back!” the crowd followed.

Walz has backed arguably the most forward-looking clean energy transition outside of Colorado and California. But Minnesota’s energy profile suggests a Harris-Walz administration starting in 2025 would be plunged into similar policy dilemmas as President Joe Biden: projecting global power through the nation’s record production of oil and gas, while investing huge sums and political capital on speeding an energy transition to wind, solar, battery technology and advanced nuclear power.

As governor, some of Walz’s focus on electricity infrastructure has been in the political shadows, Brian Dabbs, Carlos Anchondo and Jeffrey Tomich report. He joined three other Midwestern governors to work behind the scenes to lean on the region’s grid operator, the Midcontinent Independent System Operator, to expand its high-voltage transmission system to enable the transition to more wind and solar power.

Much of the nation, and particularly the Midwest, is still tethered to fossil fuels as utilities and regional energy markets adopt clean technology slowly.

What Walz might bring to the White House is experience with all of it, and a less blinkered view of what can be accomplished by working with other states and setting zero-carbon timelines.

Minnesota still burns coal for about 27 percent of its electricity. Natural gas fuels about 20 percent of power generation, and Minnesota is home to a few big nuclear power plants, which generate a quarter of its electricity.

Wealthy private-sector backers like Bill Gates and the Department of Energy are shoveling money into advanced nuclear technology.

Minnesota Democrats haven't been huge fans of expanding the nuclear fleet. But if slashing climate pollution is national policy under a Harris administration, Walz might have something to say about it.

 

It's Wednesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Joel Kirkland, with help from Amy Carlile. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to jkirkland@eenews.net.

 

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Today in POLITICO Energy’s podcast: Catherine Morehouse breaks down the climate and energy record of Walz.

 

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President Joe Biden talks about federal support for reducing emissions at a nature center in California.

President Joe Biden talks about federal support for reducing emissions at a nature center in California. Two new reports say spending on clean energy and clean tech has soared under Biden. | Susan Walsh/AP

Walz and agriculture
By choosing Walz as her running mate, Harris draws on a politician whose stances on farm policy helped him repeatedly win reelection in a Republican-leaning district. Walz, who served six terms in the House, became a senior member of the Agriculture Committee and played a role in crafting three farm bills.

“He has a deep history on the Agriculture Committee,” said Michael Lavender, policy director for the National Sustainable Agriculture Coalition. Having someone with an extensive agriculture policy record on a presidential ticket is “pretty astonishing,” he said.

The Harris campaign is counting on Walz’s background to give the ticket more support in the Midwest and states such as Michigan — just as the Trump campaign touts running mate Sen. JD Vance of Ohio’s appeal in Midwest battleground states.

Clean energy spending is up
A pair of new studies show the extent of clean energy's growth under Biden and the Inflation Reduction Act in particular, Jean Chemnick and Benjamin Storrow write.

Some $493 billion in private funds have been invested in factories and products tied to clean energy since the IRA unleashed $370 billion to boost industry, according to a report from the research firm Rhodium Group and the Massachusetts Institute of Technology’s Center for Energy and Environmental Policy Research.

The spending is up 71 percent from the two-year period before the law was enacted.

A separate report from the American Clean Power Association found corporations have spent $500 billion on clean energy since the IRA became law.

“The clean power industry is really setting itself up to invigorate the U.S. economy,” John Hensley, the association’s vice president of markets and policy analysis, told reporters on a call.

Consumers bag $8 billion from IRA
There's more news on the IRA from the consumer point of view. The Treasury Department yesterday reported that over 3.4 million households have used tax credits for energy and efficiency upgrades totaling $8 billion, Clare Fieseler writes.

Households in every state and the District of Columbia got tax credits for upgrades in 2023, according to Treasury. One number of note: 750,000 homes switched to solar power using the IRA credits.

“Those significant numbers show that these credits are more popular than initially projected,” said Deputy Treasury Secretary Wally Adeyemo in a call with reporters.

 

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In Other News

Water woes: A raft of green hydrogen projects in the U.S. are planned for areas experiencing water stress.

Keep coal and carry on: Glencore is no longer spinning off its coal business after a shareholder vote favored keeping the entity.

 

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A showcase of some of our best subscriber content.

Electric vehicles recharge at a shopping center.

Electric vehicles recharge at a shopping center in Emeryville, California, on Aug. 10, 2022. | Godofredo A. Vásquez/AP

Former DOE officials have teamed up with electric vehicle and battery manufacturers in a new lobbying coalition called "Battery Advocacy for Technology Transformation."

The Federal Energy Regulatory Commission must reconsider its approvals of two liquefied natural gas projects in Texas after a D.C. Circuit Court tossed their authorizations Tuesday.

The Securities and Exchange Commission defended its paused climate disclosure rule in a court brief, saying the requirements are meant to protect investors.

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