With help from Kelsey Tamborrino, Gavin Bade and Anthony Adragna
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— John Kerry pitches a climate partnership with Wall Street, leaning on banks to help governments confront the costs of fighting climate change.
— Infrastructure is the next big priority for Democrats, but expect more resistance to any spending frenzies.
— Deb Haaland faces a final vote on Monday, after four Republicans joined Senate Democrats in voting for cloture on her nomination.
HAPPY FRIDAY! I’m your host, Matthew Choi. Thundering Typhoons! Congrats to Robert Hall of Entergy for knowing Captain Haddock’s first name is Archibald. For today: In what city can you take the TransMilenio to get around? 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: Do renewables still need a hand?
BANKING ON THE BANKS: U.S. climate envoy John Kerry wants America’s banks on board with the administration’s climate goals, and he’s pressing them to firm up their commitments for climate-friendly investment. The effort is aimed at drawing pledges that could be announced for the administration’s climate strategy rollout next month, which could also include an executive order on climate finance.
Kerry is leveraging his personal ties with Wall Street to persuade Citi, Wells Fargo, Bank of America, Morgan Stanley, Goldman Sachs and JPMorgan Chase — which have all set 2050 net-zero goals or aligned with the Paris climate agreement — to create a U.S. net-zero banking alliance or pursue more specific financial commitments.
So far, the banks’ promises have been vague, and environmentalists are worried they provide enough loopholes to avoid weighty and costly measures to meaningfully curb emissions. The talks come as President Joe Biden’s April 22 Climate Leaders Summit approaches, and the administration is fully aware of the spotlight other countries will shine on the U.S. to see if it’s serious in its efforts to curb climate change. Zack Colman has more for Pros.
THE NEXT BIG THING: Now that Covid relief is out the door, Democrats are eyeing their next big legislative priority: a massive infrastructure package. But with early projections looking even pricier than the $1.9 trillion Covid package, centrist Democrats are saying hold your horses. Sen. Joe Manchin (D-W.Va.) wants a bill that’s at least partially paid for to attract Republican support. House Speaker Nancy Pelosi said Thursday that “we’ll have to find ways to cover the fees, etc. That’s a discussion that has to take place now.” But generating new revenue will likely spark a debate about raising the federal gas tax — a point already rejected by the Biden administration.
Not everyone in the Biden administration is so anti-deficit spending. Transportation Secretary Pete Buttigieg told POLITICO last month that “it would be strange not to have that be part of our thinking and our strategy and I think it ought to be.” POLITICO’s Sarah Ferris and Burgess Everett have more on Democrats’ dilemma.
But the deliberations are already brewing frustrations among activists who want a bold and robust package. Ellen Sciales, press secretary of the Sunrise Movement, said in a statement Thursday that “the fact that Senate Democrats are already placing time and cost constraints on an infrastructure package is outrageous. Democrats always maintain they have big, bold ideas but claim their hands are tied by Republicans. In reality, Democrats are tying their own hands.”
Cue the Infrastructure Week jokes: Don’t expect a package to be racing out the door any time soon. The administration isn’t likely to release any major details about the package until Biden’s first joint address of Congress — probably in April. Tanya Snyder has more for Pros on the timing of the package.
HAALAND NEARS FINAL VOTE MONDAY: Haaland will face a final Senate vote Monday afternoon on her nomination for Interior secretary. Four Republicans joined Democrats in a procedural vote to advance Haaland’s nomination Thursday: Sens. Susan Collins (Maine), Lisa Murkowski (Alaska), Dan Sullivan (Alaska) and Lindsey Graham (S.C.). Moderate Democrat Sen. Kyrsten Sinema (Ariz.) voted in favor as well, after keeping her cards close to the chest for weeks.
Haaland’s rocky road to confirmation is almost over, and Democrats and Republicans alike noted the historic nature of her nomination that would make her the first Native American to serve as a Cabinet secretary. “While I may not personally agree with some of Congresswoman Haaland’s past statements and policy positions, as secretary she’ll be carrying out President Biden’s agenda — the agenda that the voters elected President Biden to pursue,” Manchin said. “It is long past time to give a Native American woman a seat at the Cabinet table.” Anthony Adragna has more for Pros.
On Graham’s vote? An aide shared a letter from Catawba Indian Nation Chief William Harris that they said carried a lot of weight over his vote. Harris noted Haaland’s selection is “truly historic for our community” and called her a “strong ally” for restoring the tribe’s lands and ushering in economic development. Read the letter here.
And Sullivan did not commit to supporting Haaland on final passage — yet. Spokesperson Nate Adams tells ME: “Senator Sullivan had another hour-long meeting with Congresswoman Haaland [Wednesday] and is following up on numerous commitments Haaland has made to him and continuing to evaluate her responses to questions he has raised.”
TURK MOVING FORWARD: In a far less contentious confirmation, David Turk’s nomination for deputy Energy secretary advanced out of the Senate Energy Committee with unanimous support Thursday. Members praised his experience at the International Energy Agency and his dedication to “all types of energy,” ranking member John Barrasso (R-Wyo.) said.
“America needs an all-of-the-above energy strategy that includes coal, oil, natural gas, nuclear power, and renewables,” Barrasso added. “Mr. Turk demonstrated that he understood that reality during his nomination hearing.” Eric Wolff has more for Pros.
HOUSE ENERGY’S INFRASTRUCTURE PROPOSAL: Democrats on the House Energy and Commerce Committee unveiled legislation Thursday that would authorize major investments in the country’s electrical and water infrastructure. The 476-page, $312 billion package would authorize $3.87 billion annually for the next five years to update the U.S. electrical grid and make it more resilient. The measure would also target energy efficiency in schools and homes, as well as authorize $41.8 billion in electric vehicle infrastructure. Anthony has more for Pros.
SAVE THE BAY: House Transportation Chair Peter DeFazio (D-Ore.) and Rep. Jared Huffman (D-Calif.) want EPA to use its veto power to permanently block the Pebble Mine project in Alaska, saying its permit denial under the Trump administration was only a temporary protection for the local environment. In a letter to EPA Administrator Michael Regan, dated on his first day in office, DeFazio and Huffman urged Regan to use the Clean Water Act to stop the mining project. EPA has rarely used the veto power in the decades since the Clean Water Act passed. Alex Guillén has more for Pros.
HOW TO TALK ABOUT CLIMATE: Utah Rep. John Curtis, a Republican member of the Energy and Commerce Committee, closed out this week’s ACORE policy forum by discussing opportunities for bipartisan engagement on climate change. “When you ask a Republican if the climate is changing, what he hears is, ‘Will you embrace the Green New Deal?’ So they run from the question and I believe, in essence, the breakdown starts with that question,” he said. “Republicans need to learn to not be afraid of it, and Democrats need to learn there’s better ways to ask for involvement from Republicans.”
Curtis listed nuclear energy, conservation, carbon sequestration and clean energy technology that can be exported overseas as potential policies to bring in Republicans. “This green technology will be purchased around the world. The question is will it be purchased from the United States,” he said.
Asked about how the U.S. can use trade agreements to help drive down emissions, Curtis said Biden is coming in at a time “when he can kind of be the hero” of the U.S.’ relationship with China and trade — but, he noted, that should take into account China’s coal plants and its emission reduction commitments. The U.S., he said, must become the low-cost leader on green technology to push other countries to adopt the technology. “If we want them to do this without a hammer, we just simply make the price competitive to produce that energy and they will adopt it,” he said, adding that the U.S. must also “not be afraid to use fossil fuels to reduce carbon,” including using U.S. natural gas overseas.
NEW REPUBLICANS ON CLIMATE CRISIS COMMITTEE: Reps. Dan Crenshaw (R-Texas) and Anthony Gonzalez (R-Ohio) joined the House Select Climate Committee, ranking member Garret Graves (R-La.) announced Thursday. Graves praised both members for their backgrounds in national security and technology. “I look forward to working together to promote innovative, free-market solutions that fully utilize American resources,” Graves said in a statement.
ADMINISTRATOR REGAN: Michael Regan was formally sworn as EPA administrator Thursday, and he alluded to the morale beating and professional exodus the agency suffered under the previous administration. “EPA’s career officials are the backbone of this agency, and I am humbled to work alongside them as we confront climate change, stand up for justice and equity, and ensure science is at the heart of our decision-making,” he said. “We will prove that environmental protection and economic prosperity go hand in hand – and we will seize this opportunity to create a healthier, more just future for all.” You can follow his new Twitter account @EPAMichaelRegan.
DOT TARGETS AMTRAK AND CLIMATE: Tanya got a copy of a draft outline for the Transportation Department’s spending priorities, which set aside $275 billion for “climate and efficiency,” as well as $88 billion for transit, $82 billion for Amtrak and railroads, and $155 billion for highways and bridges.
It isn’t clear if the amounts are part of the administration’s upcoming infrastructure package or an eventual surface transportation bill. The White House said it “appears to be outdated planning by some members of an agency policy team.” See the numbers from Tanya.
RENEWED REVIEW: EPA is restarting a health assessment for formaldehyde that “had been poised to find that most Americans inhale enough of the gas on a daily basis to face an increased risk of developing leukemia,” Annie reports for Pros. The assessment was canceled by the Trump administration, and a link between formaldehyde and leukemia has long been fought by industry.
YELLEN E GUEDES: Treasury Secretary Janet Yellen listed “forcefully addressing the threat of climate change” and protecting the Amazon as priorities in the U.S.-Brazil relationship during a phone call with Economy Minister Paulo Guedes. A full readout from the Treasury Department.
LG UNVEILS MAJOR US BATTERY EXPANSION AMID TRADE DISPUTE: South Korean battery maker LG said Thursday it would greatly expand its U.S. battery production, signaling it is ready to serve growing demand from electric vehicles if the federal government blocks its rival in a trade dispute. LG said it would spend $4.5 billion on a project named “Green Field” to triple its battery production capacity to 110 GWh at new and existing facilities in the U.S. And it said it was “discussing” another deal with General Motors to build an additional factory to serve EVs.
Biden reviewing ruling against rival: The announcement comes as the Biden administration reviews an intellectual property ruling from the International Trade Commission that threatens rival battery maker SK Innovation’s plans for a major battery plant in Georgia. Gov. Brian Kemp (R) has called for Biden to overturn the ruling before the presidential review deadline on April 11. LG officials on a press call Thursday said settlement talks with SK continue, and that the Green Field expansion is not contingent on the presidential review. But they did not address whether Biden’s decision would affect the planned joint venture with GM, or whether LG could take over SK’s battery contracts with Ford and Volkswagen if the automakers are forced to switch.
— Jennifer “DJ” Nordquist is joining ClearPath’s advisory board. Nordquist previously served as executive director representing the U.S. at the World Bank.
— “A war over Russia has erupted at the Atlantic Council,” via POLITICO.
— “6 months of summer? Researchers say it’s possible,” via E&E News.
— “W.Va. governor’s coal companies failing to comply with consent decree – DOJ,” via S&P Global Market Intelligence.
THAT’S ALL FOR ME!
