Energy

Let the fuel flow


With help from Alex Guillén and Anthony Adragna.

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— Colonial Pipeline restarted operations Wednesday evening, but it’ll still be days before things to return to normal. In the meantime, the administration and Congress are taking a critical look at cybersecurity vulnerabilities.

— Environmentalists are torn on how far their climate plans should go, with some progressive groups dismissing Democrats’ clean energy proposals to woefully insufficient.

— Tommy Beaudreau, President Joe Biden’s pick for deputy Interior secretary, is up for a committee vote today, which will likely pass with biparisan support.

WELCOME TO THURSDAY! I’m your host, Matthew Choi. Congrats to Rob Hall of Entergy for knowing Mason went to Sul Ross State University in “Boyhood”. For today’s trivia: What kind of car did Alonzo Harris drive in the movie “Training Day”? 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 wades into political hot water.

BACK IN ACTION: The Colonial Pipeline resumed operations Wednesday afternoon, five days after shutting down from a cyberattack that triggered gas shortages and a whole-of-government response from the Biden administration.

The 5,500-mile pipeline, which provides roughly half the gasoline, diesel and jet fuel to the East Coast, will still “take several days” to fully return to normal, the company said in a statement. “Some markets served by Colonial Pipeline may experience, or continue to experience, intermittent service interruptions during the start-up period.”

Transportation Secretary Pete Buttigieg told reporters Wednesday that servicing communities feeling the supply crunch was the administration’s “top priority” and that the incident highlighted that “infrastructure is a national security issue.”

The incident occurred as lawmakers on the Hill and the administration moved to patch up vulnerabilities and prevent other attacks from happening again. Bipartisan leaders in the House Energy and Commerce Committee revealed a host of cybersecurity legislation meant to bolster pipeline security on Wednesday (though Pro’s Anthony Adragna points out none of them set mandatory cybersecurity standards for pipelines).

And though Biden’s infrastructure proposal briefs don’t make any mention of cybersecurity, Buttigieg said Wednesday that cybersecurity forms an integral part of the administration’s push for resilience. “This is not an extra, this is not a luxury, this is not an option,” Buttigieg said. “It has to be core to how we secure our critical infrastructure — and that includes infrastructure that is not owned and operated by the federal government.” POLITICO’s Ben Lefebvre has more on the restart.

The situation may turned out better than it was looking a few days ago for the Colonial Pipeline: CNN reports that it did not pay any money (or cryptocurrency) to the group that used the DarkSide ransomware. The company, “working with U.S. government officials, has managed to retrieve the most important data that was stolen,” CNN reports, citing a person familiar with the response. The person said the data was not retrieved from the hackers via a ransomware payment, but by leveraging the attackers’ use of intermediary servers inside the U.S.

THE GREEN WARS: There’s a conflict brewing among environmentalists over how far to push on climate action. A number of progressive groups are urging for a clean energy standard that calls for 100 percent renewable energy by 2030, and they are spurning Democrats’ proposals that open the door for a broader array of energy sources and technologies.

The groups says Democrats’ climate agenda is filled with concessions, and fault in particular the proposals for a clean energy standard that includes natural gas and carbon capture technologies. Allowing those sources will fail to “halt the devastating pollution disproportionately experienced by Black, Brown, Indigenous, and other communities of color in this country,” several progressive groups wrote to Congressional climate leaders Wednesday.

But many mainstream environmentalists are dismissing them as unrealistic. The clean electricity standard was already one of the most controversial planks of Biden’s $2.5 trillion infrastructure plan, and supporters worry that in a narrowly divided Congress, divisions within the green movement could imperil the entire plan — or at least its climate-related provisions. “Do these people think the U.S. Senate is about to get super-woke?” said one mainstream environmentalist.

Notably absent from the CES critiques is the Sunrise Movement, which rose to prominence in recent years by attacking Democrats for insufficient climate fervor. The group is now siding with Biden, saying he “has committed to passing a Clean Energy Standard as part of his American Jobs Plan, which presents a historic opportunity to advance the transition to 100% renewable energy we ultimately need,” a spokesperson said in a statement.

POLITICO’s Michael Grunwald breaks down the intra-environmentalist fight for Pros.

MEANWHILE, the nonprofit Carbon180 is unveiling a legislative road map today for scaling up carbon removal, with environmental justice as a central pillar. The recommendations include several of Democrats’ marquee climate goals, such as forming a Civilian Climate Corps, as well as expanding the 45Q tax credit for direct air capture, increasing federal procurement of carbon technology, developing carbon storage on federal lands and bolstering mechanisms for research and development.

Carbon180 Executive Director Erin Burns said the group has been working with EJ groups in creating a framework that meets their concerns. The roadmap includes community outreach measures to ensure carbon infrastructure doesn’t cause further environmental harm to vulnerable communities. Read the recommendations here.

INVESTORS FOR METHANE CAPS: Over 200 investors with assets totaling over $5 trillion are calling on EPA to institute strict controls on methane emissions, particularly with the oil and gas sector. Shareholder advocates Ceres and the Interfaith Center on Corporate Responsibility are spearheading the effort after the Senate rescinded Trump-era methane rules under the Congressional Review Act and as EPA Administrator Michael Regan considers new standards. Catherine Boudreau has more for Pros.

BEAUDREAU VOTE: Tommy Beaudreau, Biden’s pick for deputy Interior secretary, will get a vote in the Senate Energy Committee today. Expect smooth sailing for the Interior veteran, who had a relatively warm bipartisan reception during his confirmation hearing last month. The committee will also discuss offshore energy production in federal waters.

Senate Judiciary will also vote today on Todd Kim’s nomination to be assistant attorney general, heading the Justice Department’s Environment and Natural Resources Division.

OVER IN THE HOUSE: The Energy and Commerce Committee is discussing CLEAN Future Act, H.R. 1512 (117), provisions on cleaning Superfund sites and House Natural Resources has a hearing on environmental justice in Indigenous communities today.

REPUBLICANS’ HARD BARGAIN: Senate Minority Leader Mitch McConnell drew a “red line” on raising taxes to finance Biden’s infrastructure agenda during congressional leadership’s meeting with Biden officials Wednesday, leaving in flux how Congress would pay for the multitrillion-dollar proposal.

“We’re not interested in re-opening the 2017 tax bill. We both made that clear with the president,” McConnell told reporters.

A Republican delegation led by Sen. Shelley Moore Capito (R-W.Va.) will also meet with Biden today for further infrastructure talks. The White House maintains the discussions are progressing in good faith and that Biden earnestly hopes for a bipartisan solution. Burgess Everett, Sarah Ferris and Laura Barrón-López have the story.

Related: A fee on electric vehicles would offset less than 2 percent of transportation funding gap, from POLITICO’s Tanya Snyder.

CHENEY OUT: House Republicans booted Rep. Liz Cheney from her No. 3 leadership position Wednesday following a push from the party’s Trump-loyal right flank. Currently, Rep. Elise Stefanik (R-N.Y.) is the only member running to replace Cheney (though Texas Rep. Chip Roy is considering launching a bid, according to multiple Republican sources).

The Wyoming Republican is a vocal advocate for her state’s coal industry, and could be replaced by a moderate member of the bipartisan Climate Solutions Caucus who supports the Paris Climate Agreement. As E&E News’ Adam Aton points out: Stefanik’s climate stance has “already demonstrated how much the Republican Party has changed. The ideological purity tests that dominated House GOP politics for a decade — toppling figures like ex-Speaker John Boehner (R-Ohio) and former Republican Leader Eric Cantor of Virginia — have given way to Trump’s loyalty test.”

GRANHOLM IN HIGH DEMAND: Energy Secretary Jennifer Granholm will testify in front of the House Science Committee on May 27, the committee announced Wednesday. She’ll discuss the department’s RD&D programs and fiscal 2022 budget request. She’s also testifying before the House Energy Committee on Wednesday about the budget request and the Colonial Pipeline debacle.

ENDLESS FRONTIER: The Senate Commerce Committee advanced the Endless Frontier Act, S. 1260 (117), on a 24-4 vote Wednesday. The legislation aims to counter Chinese technological influence, but has gotten heat for directing research funding to a new technology directorate at the National Science Foundation. Leaders of the Energy Department’s national labs said doing so would be duplicating their work.

Sen. Ben Ray Luján (D-N.M.) successfully amended the bill to direct much of that funding to DOE — a change Sen. Todd Young, the lead Republican sponsor, said would be a “poison pill” and hollow out funding for the NSF directorate. Still the amendment was approved 23-5. Gavin Bade has more for Pros.

RISK ASSESSMENT: The House Financial Services Committee advanced the Climate Risk Disclosure Act, H.R. 2570 (117), on a 28-24 party-line vote Wednesday. The bill would require publicly listed companies to report how climate change impacts their businesses to the Securities and Exchange Commission. That includes climate risk management strategies and fossil fuel emissions the company is both directly and indirectly responsible for. Pro’s Zack Colman has the details.

DON’T TRUST, BUT VERIFY: U.S. climate envoy John Kerry said it “would be stupid and malpractice” to blindly trust Chinese commitments on climate during a House Foreign Affairs hearing Wednesday — his rebuttal to GOP concerns that the administration’s international climate efforts lean too heavily on an unreliable regime.

Though Beijing has moved “somewhat” in its climate rhetoric and acknowledged a “climate crisis” in public statements, Kerry said China remains a major adversary that will require continued international pressure to help keep s global warming under 1.5 degrees Celsius.

“We’ve got five more months left to get them to embrace something we hope you will view as legitimate,” Kerry said, referring to the time before the UN’s climate conference in Glasgow this fall. But, he added, “we’re not there yet.” Zack Colman covered the hearing for Pros.

Related:U.S., UK, Germany clash with China at U.N. over Xinjiang,” via Reuters.

BIDEN’S WOTUS: The Biden administration will be conducting listening sessions this summer to determine the scope of what’s covered under the Clean Water Act. Radhika Fox, who has been nominated to lead EPA’s water office, added during her confirmation hearing Wednesday that the administration was looking for an “enduring definition” that can “withstand administration changes, can protect our waters and ensure the economic vitality of all communities.” Annie Snider has more for Pros.

OIG SAYS EPA FORENSICS OFFICE IN BAD SHAPE: The National Enforcement Investigations Center supports criminal and civil investigations in EPA’s enforcement office. But after a hotline complaint and year-long probe, the EPA’s inspector general noted in a new report Wednesday a “lack of trust in management” that contributed to many former employees’ departure. High attrition rates and ongoing vacancies put NEIC at risk of “a reduction in analytical capabilities and the ability to accomplish its mission,” the report read.

In EPA’s formal response included with the report, EPA said its watchdog “has not provided an independent and unbiased review” and that it ignored “critical information” offered by management in favor of “unsubstantiated statements from staff.” Still, the agency ultimately agreed to implement most of the inspector general’s recommendations, but clashed on three others.

NRECA named Corey Amon as chief investment officer. Amon comes from the New Jersey Division of Investment, where he served as director and chief investment officer.

Julia Nesheiwat, commissioner at the U.S. Arctic Research Commission (USARC), is joining the Atlantic Council Global Energy Center as a distinguished fellow. Nesheiwat previously served in national security positions in the Trump, Obama and Bush administrations.

The Center for American Progress announced today that Frances Colón, Kelly Kryc, and Michael Williams will be joining the organization’s Energy and Environment team later this month.

— “U.S. has entered unprecedented climate territory, EPA warns,” via The Washington Post.

— “How defense against DarkSide hackers began in college,” via E&E News.

— “Asian Cities Face Greatest Environmental Risks, Report Shows,” via Bloomberg.

— “Elon Musk Says Tesla Suspends Accepting Bitcoin for Vehicle Purchases,” via The Wall Street Journal.

— “Cities Aren’t Making Climate Investments Where They Matter Most,” via Bloomberg.

THAT’S ALL FOR ME!





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