With help from Eric Wolff, Kelsey Tamborrino, Annie Snider, Alex Guillén and Lorraine Woellert.
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— The Biden administration is pressing for new climate pledges from countries that will participate in his summit next week, but the effort seems to be falling flat.
— Congress digs into a host of hearings on climate and infrastructure today, including on CLEAN Future Act’s environmental justice provisions.
— FERC takes up transmission issues at its open meeting today, and may offer up some new incentives to build the lines needed to help green the power sector.
WELCOME TO THURSDAY! I’m your host, Matthew Choi. Congratulations to Ryan Serote of Meguire Whitney for knowing that São Paulo/Guarulhos International Airport is the busiest in Brazil. For today’s trivia: How many lifeboats were on the Titanic? Send your tips and trivia answers to [email protected]. Find me on Twitter @matthewchoi2018.
Check out the POLITICO Energy podcast — all the energy and environmental politics and policy news you need to start your day, in just five minutes. Listen and subscribe for free at politico.com/energy-podcast. On today’s episode: C-suites to Biden: please catch up on climate.
LOOKING FOR NEW COMMITMENTS: President Joe Biden is hoping next week’s climate leaders summit will be the U.S.’ rethroning in the global effort to cut fossil fuel emissions. Leaders from 40 countries — including the other largest emitters, China, India and Russia — have all been invited to attend the virtual gathering, where Biden is expected to discuss a new set of carbon targets under the “nationally determined contribution” the U.S. must submit under the Paris Climate Agreement.
But despite efforts to draw new commitments from his guests, there may be few new announcements. Four years of the Trump administration disparaging the global effort has done real damage to U.S. credibility on the global stage, and foreign leaders are showing reluctance to respond to Biden’s calls to increase their climate ambitions. Most foreign leaders are expected to show up without new goals.
Korea and Japan may offer new statements on curbing their financing of coal projects around the world, and Canada has pledged to hike its targets alongside the U.S., but other countries may be looking to events later in the year — including the international COP 26 gathering in Glasgow — to unveil new ambitions.
“U.S. wants to show they can get things moving. But I doubt you will see any new financial commitments,” an official from a participating country said. “Because countries have not been very forthcoming during past conferences where organizers were very insistent on new commitments.” Pro’s Zack Colman dives into Biden’s struggle to get new climate pledges at the summit, which kicks off next Thursday.
GOP COUNTEROFFER: Republicans are cooking up a far cheaper alternative to Biden’s $2 trillion infrastructure proposal — an offering in line with their criticisms that Biden’s plan stretches the definition of infrastructure and their objection over his proposed increase in corporate taxes.
The measure is likely to be in the $600 billion to $800 billion range, reports Pro’s Sam Mintz. Sen. Mitt Romney proposed user fees to help pay for the package, while Sen. Deb Fischer pondered splitting up the measure and using different pay-fors for different parts. Sam has more for Pros.
GRANHOLM HUDDLES WITH MODERATE DEMS: Energy Secretary Jennifer Granholm continued her infrastructure barnstorming on Wednesday, and she talked about the Biden plan’s climate change elements with the New Democrat Coalition, a centrist bloc of 94 House Democrats, according to an aide to the group.
“They discussed unlocking every tool available to reach net-zero by 2050 including nuclear power, renewable energy, carbon capture, grid modernization, electric vehicle deployment, and transformational investment in research development, demonstration, and deployment,” the aide said. Additional meetings with administration officials and committee chairs are planned in the coming weeks.
WATER BILL IS FLOOR BOUND: Senate Majority Leader Chuck Schumer said he plans to send a bipartisan Drinking Water and Wastewater Infrastructure Act to the full Senate for consideration next week. The legislation made it out of EPW with a unanimous vote last month.
The bill would reauthorize the Drinking Water State Revolving Fund at boosted levels and include measures to “focus on small and disadvantaged communities in federal grant and loan programs, promote water utilities’ sustainability and resilience efforts, and boost programs aimed at addressing the dangers of lead pipes in the drinking water system,” Annie Snider reports for Pros.
POLLUTION-COVID LINKS: A group of 37 environmental and transportation-focused organizations sent a letter this week to House and Senate leaders urging them to invest in drastically reducing emissions from the transportation sector, making the pitch that doing so will help vulnerable communities and citing a correlation between slightly elevated air pollution and increased Covid-19 mortality.
“Support for low-income communities and BIPOC (Black Indigenous and People of Color) in particular should be prioritized to mitigate the ongoing impacts of structural racism, including underinvestment, less access to reliable service, greater exposure to pollution, and the persistent health related inequities that have led to people of color suffering higher rates of sickness and death from COVID-19,” the organizations wrote.
The group recommended a federal investment of at least $40 billion in domestic clean vehicle and parts manufacturing, as well as $40 billion over 10 years in electric vehicle charging infrastructure, according to the letter.
CLEAN FUTURE HEARING: The House Energy and Commerce Environment and Climate Change Subcommittee will discuss environmental justice legislation today, including EJ measures in Democrats’ CLEAN Future bill.
The bill, which is Democrats’ first major climate legislation since Biden took the White House, targets environmental concerns for communities near ports vulnerable to shipping pollution, integrates EJ in federal agency work and allocates 40 percent of funds under the bill to support EJ communities.
FIRST IN ME: A study commissioned by Friends of the Earth questions whether the CLEAN Future bill has enough teeth to reach Democrats’ emissions goals. The new report by Bruce Buckheit, former director of EPA’s Air Enforcement Division, argues the CLEAN Future Act will likely fail to meet its net-zero 2035 emissions goal for the energy sector based on its credit trading system, particularly critiquing it for not adequately incentivizing immediate transition away from fossil fuels for the first several years. Read the report here.
AND IN ENR: The Senate Energy Committee will meet on “the role of DOE and energy innovation in American economic competitiveness.”
Schumer’s Endless Frontier Act, co-sponsored by Sen. Todd Young (R-Ind.), has support in both parties and is intended to counter China’s growing influence. Schumer hopes to get it to the Senate floor this month, though there’s been some partisan bickering over the specifics that our peers in Morning Tech went into Wednesday. Ranking member John Barrasso is targeting a measure in the bill that would restructure the National Science Foundation, creating a technology directorate that Barrasso says “would duplicate and compete with the Department of Energy.”
“Radically expanding another federal agency’s mission and funding to compete with the department is not the answer,” Barrasso will say at the hearing.
Meanwhile, the Environmental Defense Fund is releasing a set of recommendations today for Congress and the Biden administration to bolster DOE’s innovation operations, including increasing funding for clean energy innovation at DOE to $32 billion in fiscal 2025 and updating the formal mission of the department’s energy and science to focus on curbing greenhouse gas emissions. Read the recommendations here.
OTHER CLIMATE HEARINGS today include a House Transportation and Infrastructure Coast Guard and Maritime Transportation Subcommittee hearing on creating a carbon-free maritime industry, a Senate Budget hearing and a House Climate Crisis Committee hearing on the cost of climate change inaction, and a House Natural Resources Energy and Mineral Resources Subcommittee hearing on plugging and cleaning up orphaned wells.
MALLORY MAKES IT: The Senate confirmed Brenda Mallory’s nomination to lead the White House Council on Environmental Quality on Wednesday. Republican Sens. Susan Collins of Maine, Lindsey Graham of South Carolina and Rob Portman of Ohio joined Democrats to confirm her 53-45. Anthony Adragna has more for Pros.
GENSLER TOO: The Senate also confirmed Gary Gensler to head the SEC. Gensler will lead the tense work on new federal regulations to require companies to disclose their contributions and exposure to climate change. Kellie Mejdrich breaks it down.
ME hears that Janet McCabe, nominee to be EPA deputy administrator, could hit the floor as early as next week. Like Mallory, she squeaked out of committee with one Republican vote — Roger Wicker of Mississippi — and is expected to face a narrow confirmation.
FERC’S LONG (WIRES) GAME: FERC takes up transmission at the top of its monthly open meeting today. That’s a critical component in Biden’s race to decarbonize the power sector by 2035, but the troubled history of getting major projects done has been well documented. FERC had placed transmission incentives on the agenda back in January, but pulled the item. Today’s action could include a finalization of a package of incentives proposed last year, or potentially a new proposal with a focus on lines that help states and markets reach their clean energy ambitions.
How much for that carbon in the window? FERC will also consider a policy statement allowing independent system operators to include a carbon price adder in their markets. The carbon price has the backing of a variety of market participants, most notably the natural gas industry, many of whom have said they hope the carbon price could persuade states to slow or even reduce their financial support for renewables. Should the commission finalize the policy, a carbon price wouldn’t instantly come into being — it would simply allow markets to apply to the commission for the right to add one. New York ISO has had a carbon price in development for months, but it’s waiting for support from Gov. Andrew Cuomo before putting it to a vote.
Remember: FERC’s proposal of a carbon pricing statement last fall is thought to have been the last straw for Commissioner Neil Chatterjee with the Trump administration. Days after the November election, President Donald Trump removed Chatterjee as chair and replaced him with Commissioner James Danly.
BIDEN’S BLM PICK: Biden is planning on naming Tracy Stone-Manning to head the Bureau of Land Management, Pro’s Anthony Adragna and Ben Lefebvre report. Stone-Manning has deep experience with public lands — she is currently a senior official at the National Wildlife Federation and served as chief of staff for former Montana Gov. Steve Bullock. She also led Montana’s Department of Environmental Quality. The nomination could come within the next few days. Anthony and Ben have more for Pros.
The White House also formally announced Tommy Beaudreau as Biden’s pick for deputy Interior secretary and Radhika Fox to lead EPA’s water office Wednesday. Anthony and Ben reported on Beaudreau’s imminent nomination Tuesday. And Annie has more on Fox’s nomination.
ICYMI: Fox recently spoke with Annie about how she’ll incorporate environmental justice in her work expanding access to clean water.
Beaudreau’s and Fox’s nominations were announced along with a spate of other climate and transportation leadership picks. They include Shannon Estenoz for assistant secretary for Fish and Wildlife and Parks at Interior, Tanya Trujillo for assistant secretary for Water and Science, Faisal Amin for EPA’s chief financial officer, Michal Ilana Freedhoff for assistant administrator for chemical safety and pollution protection at EPA and Winnie Stachelberg for assistant secretary for policy, management and budget at Interior. Ben and Annie have the deets.
JUDGE SAYS BP LIABLE FOR INDIANA REFINERY EMISSIONS: A federal judge on Wednesday ruled that BP’s Whiting refinery on Lake Michigan in the northwest corner of Indiana is liable for excess coarse particulate matter emitted between 2015 and 2018. Environmental groups that brought the suit cheered the ruling, though it doesn’t address penalties, which will come at a later stage. Still to be settled are some additional allegations of excess pollution from other parts of the Whiting facility. BP said it is reviewing the decision before deciding next steps.
— The National Ocean Industries Association Board of Directors has elected Tim Duncan, president and CEO of Talos Energy, as chair and Paul Danos, president and CEO of Danos, as vice chair for the 2021-22 term.
— “Biden Rushes to Protect the Power Grid as Hacking Threats Grow,” via Bloomberg.
— “Forthcoming Russia sanctions won’t include Nord Stream 2,” via POLITICO.
— “6 questions looming over the Nord Stream 2 pipeline,” via POLITICO.
— “At least 6 of 18 passengers rescued after boat capsizes south of Port Fourchon,” via nola.com.
— “Biden Environmental Justice Pledge Seen as a Moving Target,” via Bloomberg.
— “Historic duo puts climate on Indian Affairs agenda,” via E&E News.
— “Climate Change Threatens Russia With Billions in Annual Costs,” via Bloomberg.
THAT’S ALL FOR ME!
