Energy

Net-zero plans face EV reality


With help from Zack Colman, Catherine Boudreau, Anthony Adragna and Daniel Lippman

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Several presidential candidates have touted “net zero” carbon emissions goals, but they face a big hurdle: convincing Americans to break up with their gas-guzzling cars and trucks.

The Nature Conservancy held a town hall regarding its internal sexual harassment probe, where the organization’s president was the focus.

EPA is expected to unveil its final rule today allowing the year-round sale of 15-percent ethanol blends.

IT’S FRIDAY! I’m your host, Kelsey Tamborrino. Duke Energy’s Michael Sewell knew Carol Moseley–Braun was the first African-American female senator. For today: Who was the first lawmaker to select an office in the first-ever House office building in 1908? And what was the office? Send your tips, energy gossip and comments to ktamborrino@politico.com.

REAL WORLD, ROAD RULES: With few detailed proposals out there, presidential candidates’ calls for net zero carbon emissions in the transportation sector will likely lean on increasing the share of electric vehicles on the road, experts say. But, while electric vehicles have experienced rapid growth, it hasn’t come as quickly in the U.S. as some proponents hoped, Pro’s Alex Guillén reports this morning. That leaves Democrats to figure out how to turbo-charge EV adoption.

“It’s possible on paper” to achieve entirely zero-emissions vehicle sales in the coming decades, said Gloria Bergquist, vice president for public affairs at the Alliance of Automobile Manufacturers. “But we need to see greater sales in the marketplace of the vehicles we already have. That’s the crunch,” she added.

Democrats point to restoring Obama-era vehicle emissions rules the Trump administration is rolling back. But, as Alex notes, it’s unclear whether any future president would be able to lay the groundwork for a carbon-free vehicle fleet with existing regulatory authority. The CAFE program does help incentivize EVs, but Congress did not design it as a mechanism to get the U.S. off gasoline entirely.

Without significant action, experts agree EVs will only take off once they reach price parity with gasoline vehicles and can compete beyond the luxury market where companies like Tesla have been successful.

Dave Cooke, a senior vehicles analyst at the Union of Concerned Scientists, thinks electric vehicles will become widely cost-competitive with gasoline vehicles sometime around 2025 to 2030. “After that point, the consumer choice part of the equation is a lot more straightforward,” he said. Read more.

NATURE CONSERVANCY HOLDS TOWN HALL: The Nature Conservancy held an impromptu town hall Thursday regarding its internal sexual harassment probe, coming just hours after POLITICO’s reporting revealed the results of that report and two senior executives’ departures. Invites went out to staff in an 8:50 a.m. ET email, according to a copy reviewed by POLITICO and whose authenticity was verified by three sources.

Nature Conservancy President Brian McPeek was a focus of the town hall, where CEO Mark Tercek received pointed questions about whether McPeek should remain as the head of the organization. The report of the organization’s workplace culture, conducted by law firm McDermott Will & Emery, did not name the three executives against whom complaints were made and who made up a bulk of its investigation. McPeek and the Nature Conservancy did not respond to requests for comment Thursday evening.

That review noted one former female employee received an “unwelcome” kiss from a person identified as Executive 1. Investigators found that woman “credible” despite the Executive 1’s denials, but ultimately did not recommend punishment for the executive.

E15 MINUTES OF FAME: Staring down a June 1 deadline, EPA Region 7 Administrator Jim Gulliford will “share an E-15 update” in Iowa today during the grand opening celebration of the Elite Octane ethanol plant. GOP Sen. Joni Ernst will also attend.

President Donald Trump has called on EPA to release its final rule allowing year-round sales of 15 percent ethanol fuel before summertime restrictions kick in on June 1, fulfilling a pledge the president has made to corn-state farmers.

Bloomberg reported Tuesday that the final rule is expected to “jettison proposed trading restrictions” on compliance credits for the Renewable Fuel Standard and will “make only a handful of modest changes.”

Biofuels groups have long wanted the rule, and several prominent trade groups will be represented at the opening. Meanwhile, oil interests have promised a legal challenge once the final rule hits the Federal Register.

IG ENDS PRUITT PROBE: EPA’s Office of the Inspector General has closed its probe into former Administrator Scott Pruitt’s meeting with the National Mining Association from April 2017, according to its semi-annual report released Thursday.

The IG agreed to establish a “factual record” about the meeting after Democrats on the House Energy and Commerce Committee requested the inquiry. That came after POLITICO first reported NMA would support pulling out of the Paris climate agreement after meeting with Pruitt.

The OIG said it “conducted multiple interviews” during the inquiry and “provided its fact-finding results to Congress.” The agency looked at whether Pruitt or his staff violated the Antideficiency Act or anti-lobbying provisions.

Also in the report: The IG looked into allegations of “widespread downloading” of encrypted apps onto EPA-issued mobile devices by EPA employees in order to leak damaging information regarding top agency officials. The investigation found that 58 employees had downloaded encrypted apps to their EPA phones, “but the allegation that employees were leaking sensitive information or conducting official business on these applications was not supported.”

USDA ANNOUNCES CASH FOR RURAL GRIDS: USDA on Thursday announced it is providing more than $850 million in loans and grants across 17 states to support upgrades to rural electric systems. The department said the funding will help build and improve 3,741 miles of line so the grid is more reliable. The largest loan of $263 million was awarded to a cooperative that serves parts of Arkansas in Missouri.

CLIMATE COMES TO INTELLIGENCE COMMITTEE: The House Intelligence Committee will hold a hearing June 5 at 8:30 a.m. titled “National Security Implications of Climate Change.” Witnesses have not yet been announced, though a committee spokesman said more information will be unveiled in the coming days.

DISASTER BILL THWARTED AGAIN: Nearing the start of hurricane season on Saturday, House lawmakers once again failed to pass a disaster aid bill. Rep. John Rose (R-Tenn.) objected to passing the bill by voice vote, while Rep. Thomas Massie (R-Ky.), who derailed the same measure earlier this week, was by his side, POLITICO’s Jennifer Scholtes reports. The chamber will next take up the bill Monday when lawmakers return from recess.

The House did, however, pass a bill Thursday to authorize the National Flood Insurance Program through June 14, preventing the program from lapsing at midnight.

José Hernández has started as community engagement manager with the Los Angeles Cleantech Incubator. He most recently was deputy district director for Rep. Barbara Lee (D-Calif.).

— “Leaks threaten safety — and success — of America’s top natural gas exporter,” Center for Public Integrity and E&E News.

— “On eve of permanent shutdown of Pilgrim nuke, impacts remain unclear,” S&P Global Market Intelligence.

— “Energy secretary says U.S. can make oil, gas, coal cleaner,” Associated Press.

— “Icahn hits Occidental with records suit over Anadarko merger,” Bloomberg Law.

— “Sierra Club says it will commit resources to help 100 candidates next year,” The Hill.

THAT’S ALL FOR ME!



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