A wild year for energy policy begins

From: POLITICO's Power Switch - Tuesday Jan 02,2024 11:01 pm
Your guide to the political forces shaping the energy transformation
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By Christian Robles

President Joe Biden delivers remarks on the bipartisan infrastructure law at Boston Logan International Airport.

President Joe Biden delivers remarks on the bipartisan infrastructure law at Boston Logan International Airport on Sept. 12, 2022. | Evan Vucci/AP

The Biden administration is poised to spend the coming months finishing major climate rules, distributing billions of dollars for clean energy — and, most likely, sending out a flurry of press releases promoting every step.

Welcome to 2024, a year of frantic climate action before voters cast their ballots in November — with the polls overwhelmingly pointing to a rematch between President Joe Biden and former President Donald Trump, who has vowed to “terminate” Biden’s “Green New Deal atrocities on Day 1.”

Biden has every incentive to get his action done sooner rather than later: Any rules finished too close to the end of the year would be vulnerable to nullification if Republicans win control of Congress, Robin Bravender writes.

This year is “a political year,” Frank Maisano, a senior principal at the law firm Bracewell, told Robin. “The first half is the only time when you can get anything substantive done before — as [former House Energy and Commerce Chair] John Dingell always used to say — ‘The silly season kicks in.’”

Among the regulations the administration has proposed: limits on pollution from fossil fuel power plants, new fuel efficiency standards for cars and trucks and limits on toxic wastewater from coal-fired power plants. The administration also aims to overhaul oil and gas leasing rules (and has already decided to not offer any offshore drilling lease sales this year — a first since the leasing program began).

Congressional Republicans have fought against such environmental rules. Last month, Emma Dumain reported that two top GOP senators — Sens. Shelley Moore Capito of West Virginia and John Barrasso of Wyoming — were attempting to thwart EPA’s proposed power plant rule by pressuring another federal agency to “fix” it.

Republicans are more conflicted about the hundreds of billions of dollars available through the Inflation Reduction Act, Biden’s landmark climate law. Much of that money is set to filter through states this year — and as Adam Aton recently reported, both Democrats and Republicans will rush to tap into it.

EPA will also announce two or three applicants to run the Inflation Reduction Act’s $14 billion “national green bank,” a program that promises affordable financing for clean energy projects. The clean energy industry also awaits the administration’s final guidance outlining the requirements for IRA tax breaks, including for “clean” hydrogen fuel producers and for renewable projects using American components.

A majority of spending allocated in 2021’s bipartisan infrastructure law also has yet to be distributed, writes Mike Lee. And of what has been spent, only a fraction has gone to completed projects.

For example, a $7.5 billion initiative to build a national network of electric vehicle chargers has built just two charging stations (for reasons James Bikales chronicled last month). The administration says it will spend more of the infrastructure money this year.

Beyond action from the administration, federal court cases will determine regulators’ ability to curtail greenhouse gas emissions, writes Niina H. Farah.

One of the biggest cases is Loper Bright Enterprises v. Raimondo, which could overturn the Chevron doctrine — a 40-year-old legal precedent that has given agencies such as the Federal Energy Regulatory Commission broad leeway in interpreting unclear statutes.

 

It's Tuesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Christian Robles. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to crobles@eenews.net.

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Today in POLITICO Energy’s podcast: James Bikales gives an overview of what to expect in energy policy this year.

Power Centers

Eugene Gates, a Dallas letter carrier for the Postal Service, died of heat exposure in June.

Eugene Gates, a Dallas letter carrier for the Postal Service, died of heat exposure in June. | Photos courtesy of Carla Gates

U.S. Postal Service fined in heat-related death
The Postal Service is facing a $15,625 fine for failing to protect workers from heat after Dallas letter carrier Eugene Gates died of heat stroke last June, writes Ariel Wittenberg.

Gates’ death drew national attention to USPS policies for heat safety. An E&E News investigation revealed that Gates was one of possibly thousands of Postal Service workers who did not receive proper heat safety training.

The Occupational Safety and Health Administration is giving USPS until Jan. 18 to “abate” the heat hazard through numerous means, including training and allowing employees to take rest breaks.

New year, new ESG war
Republican officials and right-leaning groups are expected to redouble their attacks in 2024 on corporate environmental, social and governance policies, writes Jordan Wolman.

The anti-ESG escalation comes on the heels of the planet’s hottest year on record — and despite polls consistently showing that voters oppose government interference in corporate decision-making. Activists on the left are now ramping up efforts to protect ESG policies, with political nonprofit Unlocking America's Future launching an eight-figure campaign.

The conflict will likely play out on Capitol Hill, in statehouses across the country and in the courts.

In Other News

Hot year: Some scientists are predicting that 2024 will be the hottest year on record partially due to the ongoing planet-warming El Niño.

Emissions peaked: A growing number of climate experts believe that 2023 may have been the peak of planet-warming emissions — a turning point in the push to reach net-zero emissions.

Zone

A showcase of some of our best content.

Electric vehicle charger plugged into car.

Electric vehicle charger plugged into car. | Drew Angerer/Getty Images

The number of electric vehicles that qualify for the Biden administration’s $7,500 tax credit has dropped from 43 to 19 because of new guidance restricting battery components from certain countries.

EPA’s watchdog urged the agency to increase oversight of its $5 billion clean school bus program, which it says is currently open to fraud and abuse.

EPA gave Louisiana authority over carbon dioxide injection wells, a victory for carbon capture supporters.

That's it for today, folks! Thanks for reading.

 

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