With help from Ben Lefebvre, Eric Wolff, Kelsey Tamborrino, Alex Guillén and Catherine Boudreau.
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— John Kerry may be rolling the dice in negotiating a deal to stem deforestation in the Amazon, hoping he can convince his Brazilian counterparts to keep their end of the bargain.
— The Biden administration unveiled steps to save 30 percent of public lands by 2030, but Republicans say it’s all just talk.
— Tommy Beaudreau gets a vote date to advance his nomination for deputy Interior secretary out of committee.
HAPPY FRIDAY! I’m your host, Matthew Choi. Congrats to Alicia Brown of the Mississippi Public Service Commission for knowing ABBA was formed in 1972. For today’s trivia: Ibn Battuta was born in what North African city? 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: Biden’s 30×30 plan.
PLACING A BIG BET: U.S. climate envoy John Kerry wants to cut a deal to help stem deforestation in Brazil’s Amazon rain forest. But he could be rolling the dice in negotiating with leaders who may not stick to their end of the bargain.
Nearly 60 percent of Brazil’s land is covered by the Amazon rain forest, which plays a central role in absorbing carbon from the atmosphere. But Brazilian President Jair Bolsonaro, dubbed the “Trump of the Tropics”, has a shaky reputation, and several climate allies of the U.S. are warning against trusting the regime in striking a deal.
The Bolsonaro administration admonishes that skepticism, saying the U.S. and Brazil are engaged in a good faith dialogue. Both sides praise each other on social media, and members of Kerry’s team talk weekly with envoys from Brazil’s Environment Minister Ricardo Salles. Bolsonaro’s administration is requesting $1 billion a year to help save the rainforest, noting that countries in the global north that bulldozed their own forestland for their economic growth are responsible for a far larger share of total emissions through history and should help in preservation efforts.
But environmentalists are aghast the Biden administration is even entertaining the proposal, viewing it as a $1 billion-per-year ransom for the Bolsonaro government to not let the rain forest burn down. And people close to the Kerry team told POLITICO that their side never really saw Bolsonaro as reliable, but the stakes are too dire to simply wait for the next Brazilian president to take office.
Our Michael Grunwald and Zack Colman dive deep into the negotiations, breaking down the skepticism and urgency coming from both sides of the equator.
30×30: The Biden administration unveiled a new report urging the protection of roughly a third U.S. lands by 2030 — a priority long pushed by progressives, including Interior Secretary Deb Haaland when she was a congresswoman. The “America the Beautiful” report outlines recommendations to bolster the amount of land under protection, including increasing the amount of recreation space and supporting tribal conservation efforts.
The report says that to reach its goal, the government could either expand protections for areas already under federal oversight or use financial incentives to prod private landholders and local governments to conserve their land.
But some Republicans are wary. House Natural Resources Committee ranking member Rep. Bruce Westerman (R-Ark.) raised concerns earlier this week that the administration hadn’t outlined any metrics or definitions to gauge their progress. Sen. Steve Daines (R-Mont.), chair of the Western Caucus and a member of the Energy Committee, called it “vague buzzwords.” And Sen. Roger Marshall (R-Kan.) likened it to a federal land grab. Ben Lefebvre has more for Pros.
FERC’s SELF-IMPOSED DEADLINE: FERC on Wednesday issued a rule giving itself no more than 150 days after approving a pipeline to resolve outstanding property owner complaints.
Under a rule from June last year, the commission said pipeline construction could not begin until all complaints had been resolved, leaving the developer in limbo. The new order sets the deadline, and it allows developers to conduct non-construction preparations while complaints are resolved.
“Today’s order strikes a compromise that both protects the interests of the parties affected by a new pipeline while also providing developers with the certainty needed to invest in energy infrastructure,” FERC Chairman Richard Glick said in a statement. The order was approved 4-1, with Commissioner James Danly dissenting.
FIX THE AIR: EPA’s independent watchdog is urging the agency to update its air pollution rules to reflect EPA’s findings that two pollutants cause cancer and impact millions of lives. EPA classified ethylene oxide as a likely carcinogen in 2016 and chloroprene in 2010, and concluded they were dangerous at far lower levels than it has previously said.
Shortly after the report came out, the Louisiana group Concerned Citizens of St. John filed a formal petition asking EPA to use emergency powers to reduce area emissions of ethylene oxide and chloroprene. Industrial emissions, including from Denka’s neoprene plant, are between dozens and thousands of times higher than EPA’s risk thresholds, according to the petition.
“EPA had a plan in 2016 but never followed through to protect us. It’s critical for EPA to fix this environmental injustice now if indeed, President Biden and Administrator [Michael] Regan, intend to make good on their promises,” said CCSJ’s Mary Hampton. Alex Guillén and Annie Snider have more for Pros.
SAVE THE BIRDS: Interior is proposing to reverse a Trump administration rule today that critics said put migratory birds in danger of industrial activity. The Trump-era rule blocked prosecution for incidental bird deaths if they occurred as a result of otherwise legal business activities. Alex has more for Pros.
TVA’s RETIREMENT PARTY: The Tennessee Valley Authority board of directors approved strategic and guiding principles Thursday setting a series of decarbonization targets over the next three decades. The federal utility said it has already cut its carbon emissions by 63 percent from 2005 levels and is targeting a 70 percent carbon reduction by 2030, as well as an 80 percent reduction by 2035.
To reach those targets, TVA said it aims to retire all of its coal units by 2035. It also touted the expansion of renewable generation, including 2,300 megawatts that is already committed and will be online by 2023; expanding battery storage capacity; and using natural gas generating facilities as a bridge to more renewables. By 2035, the utility aims to put 10,000 megawatts of solar capacity online, while moving toward net-zero carbon emissions by 2050. It also said it will explore potential light-water-based small modular reactors at the Clinch River site near Oak Ridge, Tenn., which holds an NRC early site permit for small-modular reactor development.
VOTE FOR BEAUDREAU: Biden’s pick for deputy Interior secretary, Tommy Beaudreau, will get a vote in the Senate Energy Committee next Thursday. Beaudreau has so far had a comparatively smooth confirmation process, spared the denunciative questioning levied on Haaland. Chair Joe Manchin (D-W.Va.) is a major Beaudreau fan.
THE NUCLEAR OPTION: Energy Secretary Jennifer Granholm is down to give federal aid to struggling nuclear power plants, she told lawmakers at a House Appropriations hearing on the department’s budget proposal Thursday. Granholm acknowledged the department hasn’t historically subsidized plants, but entertained the idea of doing so in the future. She also suggested the American Jobs Plan could be a conduit for federal assistance for the nuclear fleet.
The White House has been quietly rooting for tax credits for aging nuclear plants, Reuters reported Wednesday. Nuclear is the leading source of emissions-free power in the U.S. by a wide margin, but the sector has been taking a beating from rising costs and competition from natural gas and renewables.
“We are not going to be able to achieve our climate goals if our nuclear power plants shut down,” Granholm told a House Appropriations subcommittee. “We have to find ways to keep them operating.” Kelsey Tamborrino has more for Pros on the hearing, where Granholm also touched on the department’s work on nuclear waste siting and the role of biofuels in reducing emissions.
G&G LUNCH FACTORY: Also at Thursday’s hearing, Rep. Bonnie Watson Coleman (D-N.J.) (whose district is the site of the fight over the PennEast proposed pipeline) voiced concern FERC was approving pipelines without taking into account the needs of landowners whose property is in the way of the project. A House Oversight subcommittee grilled FERC and Cheniere earlier this week over the Midship pipeline operator’s treatment of landowners.
Granholm said she meets with FERC chief Richard Glick about every other week. “I can’t have conversations with him about specific cases that they may be looking at, but in terms of general policy, I know he’s very sensitive to this argument,” she said.
VILSACK PROMOTES AVIATION BIOFUELS: Agriculture Secretary Tom Vilsack advocated for the potential for biofuels “to make air traffic more sustainable and decrease the overall carbon footprint of travel and commerce,” echoing remarks made by Granholm during her appearance on the Hill. “The marketplace is massive,” Vilsack told Growth Energy’s annual executive leadership conference, “and it could be a game-changer for the U.S.”
He also sought to reassure the industry that the Biden administration does not intend to leave biofuels behind in its push for electric vehicles. “This administration understands that millions of Americans like me, still rely on gas-powered vehicles every day,” he said. “We’re going to do what we can to ensure renewable liquid fuels continue to have the infrastructure and support to offer consumers a sustainable option.”
THE STATE OF METHANE: A new UN report shows major economic and health benefits for current methane reduction targets but pushes governments to seek more aggressive cut downs of the potent greenhouse gas. The report, released Thursday, predicts current methane reduction goals “will avoid nearly 0.3°C of global warming by the 2040s and complement all long-term climate change mitigation efforts.” They would also prevent 255,000 premature deaths and 73 billion hours of lost labor from extreme heat.
Still the report says countries will need to amp up their efforts to cut out another 60 million metric tons to prevent a 1.5 degree celsius temperature rise by 2030. Ben has more for Pros.
CHINA SPEEDS AHEAD: China exceeded all of the OECD countries combined in greenhouse gas emissions in 2019, according to a recent study by the Rhodium group. China contributed more than 27 percent of global emissions, comfortably making it the number one emitter. The U.S., coming in at number two, contributed 11 percent.
But keep in mind: China and the OECD block have similar populations, and China’s per capita emissions are still substantially lower than in many developed countries. China emits 10.1 tons per capita, while the OECD emits 10.5 tons per capita. The U.S. eclipses both at 17.6 tons per capita, according to the report. And developed countries in North America and Europe are far larger historical emitters of greenhouse gases.
SPILL THE BEANS: Duke Energy will have to publicly disclose its corporate political and lobbying contributions following a successful effort by shareholders against corporate greenwashing. The resolution was sponsored by the New York State Office of the Comptroller and requires Duke Energy to issue a report twice a year on its election, campaign, trade group and social welfare organization spending. The company’s board was against the measure. Eric Wolff breaks it down for Pros.
Refresher: Shareholders around the country are pushing for more transparency from companies to ensure that their lobbying and political spending matches their public messaging on issues like climate change. Catherine Boudreau went into the trend last month.
TAILORING ESG DISCLOSURES: The information investors demand from companies is changing rapidly, making it difficult for firms to keep up, according to Fiona Wild, vice president of sustainability and climate change at Australian oil and mining giant BHP (She is also a member of the Task Force on Climate-related Financial Disclosures).
Financial regulators around the globe developing mandatory ESG reporting standards should account for the variations in risks that different companies face, Wild told Ben in an interview. “I think it’s folly to assume risks and opportunities and expectations will be ubiquitous in the sense that every company will be exposed to the same ones and therefore should be disclosing the same information,” she said.
Companies should expect investors and governments to require some minimum level of disclosures, such as emissions generated by their operations and supply chains, Wild added.
“When investors look at companies that don’t disclose climate risks, it doesn’t necessarily mean that they think the company doesn’t have them. It means they may think the company hasn’t done the work to identify what those risks are. Or they may form the view that the company is hiding something,” Wild said.
API CRIES FOUL IN MEXICO: API President Michael Sommers wrote to top Biden administration officials urging them to confront Mexico about behavior he says discriminates against foreign investors — including API members. The letter is addressed to Granholm, Trade Representative Katherine Tai, Commerce Secretary Gina Raimondo and Secretary of State Antony Blinken and lists a number of legislative and regulatory acts that they say violate Mexico’s commitments under the U.S.-Mexico-Canada trade agreement. Sommers urged the officials to bring up the concerns with their Mexican counterparts, including in a to-be-determined free trade summit between Tai and Mexican Secretary of Economy Tatiana Clouthier.
— “Iraq Brokers Secret Saudi-Iran Talks as Biden Resets U.S. Policy,” via Bloomberg.
— “Meet Joe Biden’s climate voice on Capitol Hill,” via E&E News.
— “Abnormally chilly weather to hover over D.C., may delay cicada outburst,” via The Washington Post.
— “Even in its absence, California high-speed rail looms over House hearing,” via POLITICO.
THAT’S ALL FOR ME!
