| | | | | | | Presented By ExxonMobil | | | | Generate | | By Ben Geman ·Jan 22, 2021 | | Good morning! Today's Smart Brevity count: 1,377 words, 5 minutes. 🚨Join Axios' Joann Muller at 12:30pm ET today for a virtual event on the future of electric vehicles in the U.S. Register here. 🗓️The New York Times obtained a White House scheduling memo that shows another climate policy executive order coming Jan. 27. It also says the world leaders' climate summit that President Biden has pledged to convene will be April 22. (Earth Day). 🎶And this weekend marks 40 years since Hall & Oates released a slice of pop perfection that's today's intro tune... | | | | | | 1 big thing: New DOE roles look to animate Biden's campaign themes |  | | | Illustration: Annelise Capossela/Axios | | | | The burst of Biden administration staffing picks announced yesterday revealed that the Energy Department (DOE) has newly created roles that reflect what President Biden called campaign priorities. Driving the news: One new position is "director of energy jobs," which is being filled by Jennifer Jean Kropke. She was previously the first director of workforce and environmental engagement with Local 11 of the International Brotherhood of Electrical Workers. Another newly created position is "deputy director for energy justice." It's being filled by Shalanda H. Baker, who comes from her job as a Northeastern University law professor. She also co-founded the nonprofit Initiative for Energy Justice. Why it matters: A pillar of Biden's case for his climate agenda is a fundamentally economic pitch. - He's hoping to accelerate job growth in energy-related fields like electric vehicle manufacturing and charging infrastructure, faster deployment of renewables and more.
- Biden officials also say they'll also focus heavily on environmental justice — addressing the disproportionate pollution burdens often faced by the poor and people of color.
The big picture: They're the latest of several newly created administration positions. - The highest level ones, which were announced in December, are John Kerry's gig as special climate envoy and Gina McCarthy, who is leading the new White House climate office. We wrote about her top deputies here.
- Two more: There's now a senior director for environmental justice at the White House Council on Environmental Quality, a role filled by Cecilia Martinez. And per the White House, associate director for climate, energy, environment and science is a new position within the Office of Management and Budget.
Reality check: Who knows how much all the new bodies will actually translate into tangible outcomes. But they're nonetheless a sign of intent. What we don't know: The precise outlines and activities of the new DOE roles. DOE spokesman Kevin Liao spoke of the positions in broad terms. - "These new positions reflect President Biden's belief in the job creating potential of bold climate action and the urgent need to act on longstanding environmental injustices in America," he said.
- Baker's overall views are captured in a WBUR interview posted earlier this week.
Yes, but: Biden's facing immediate criticism that his initial climate policy moves are hurting jobs. - Republicans and industry officials and some unions bashed his decision to nix the permit for the Keystone XL oil pipeline.
- Keystone developer TC Energy said it's cutting more than 1,000 construction jobs in coming weeks, Reuters reports.
- And oil industry groups criticized yesterday's Interior Department move to freeze permitting for oil-and-gas projects on federal lands.
|     | | | | | | Bonus: EPA, Interior, DOT staff unveiled | | Offering a detailed list of new, Generate-relevant Biden staffing moves would mean writing "War and Peace" by Axios standards. So I'll suspend my usual aversion to linking to press releases. Here are lists from EPA, DOE, Interior and the Transportation Department (DOT). Where it stands: One thing that stands out is that lots of Obama-era names are coming back. - For instance, DOE chief of staff Tarak Shah was also at the agency under Obama, while EPA chief of staff Dan Utech was an Obama White House energy and climate aide.
- Another example is Andrew Light, who has a high-level international affairs role at DOE. He was a senior State Department climate aide under Obama.
The intrigue: With a h/t to E&E News, one of the Transportation picks could signal the administration's intent to set much more aggressive fuel economy rules. Steve Cliff, new deputy administrator of DOT's National Highway Traffic Safety Administration, comes from the California Air Resources Board, which focuses heavily on transportation-sector emissions. | | | | | | | | 2. Cleantech poised to accelerate under Biden |  Data: Yahoo Finance; Note: XOP is an exchange-traded fund (ETF) of oil and gas stocks, and ICLN is an ETF of global clean energy stocks; Chart: Axios Visuals Axios' Amy Harder reports that after booming in 2020, stocks of clean-energy companies are poised to keep going up with President Biden pushing policies favorable to their bottom lines. Where it stands: Cleantech stocks have blown past their last high in the mid-2000s, which burst in the 2008 financial crisis. Not so far this time despite the pandemic crushing economies everywhere — and the oil industry. The intrigue: The offshore wind sector could see substantial growth. The Trump administration was slow in reviewing several proposed projects across the Eastern Seaboard, but Biden has signaled he will move swiftly here. - "We are in the sweet spot of where this country is going to continue to go from a clean energy perspective," said Dennis Arriola, CEO of Avangrid, a subsidiary of Spanish energy company Iberdrola.
- Avangrid is working with Denmark's Copenhagen Infrastructure Partners to build what could be America's first large-scale offshore wind farm, Vineyard Wind, located off the coast of Massachusetts.
- It plans to resubmit a federal application for that project soon, Arriola told Axios and Reuters.
The big picture: "I thought the pandemic would have a bigger negative effect on investments in the energy transition than it did have," said Angus McCrone, chief editor of BloombergNEF. The research firm issued a report this week finding that investments last year into such technologies broached a half-trillion dollars for the first time ever. Here's Amy's whole story. | | | | | | | | A message from ExxonMobil | | ExxonMobil sets emission reduction plans for 2025 | | |  | | | | As part of our ongoing commitment to help mitigate the risks of climate change, we've announced plans to further reduce emissions in our operations by 2025. It's something we're working on every day. Learn more about our plan to reduce our emissions. | | | | | | 3. Breaking: Charging network EVgo is going public | | EVgo, a big player in electric vehicle charging, said this morning that it's going public via a reverse merger with a special purpose acquisition company (SPAC). Driving the news: The Los Angeles-based company, which has charging stations in 34 states, expects the deal will bring in $575 million that will "be used to fully fund and accelerate EVgo's growth strategy and network buildout." Why it matters: It's the latest of a suite of companies in the electric vehicle and charging space to go public as investors pour money into the sector. ChargePoint, another major charging company, announced a SPAC deal in September. Quick take: The incoming Biden administration wants to spur a major nationwide EV charging buildout, which could increase investor interest in the company and other charging players. How it works: EVgo is merging with a recently formed SPAC called the Climate Change Crisis Real Impact I Acquisition Corp., whose co-founders include former NRG Energy CEO David Crane and former senior GE exec Beth Comstock. | | | | | | | | 4. Biden's opening move against federal lands drilling |  Data: BloombergNEF; Note: 2020 reflects the average through September; Chart: Sara Wise/Axios The first phase of the Biden administration plan to thwart new oil and natural gas permitting on federal lands has arrived. Driving the news: An Interior Department order Thursday imposes a 60-day freeze on new drilling permits, leases, lease extensions and other actions, though it "does not limit existing operations." Why it matters: Oil production on federal lands is a smaller share of domestic output than it was before the fracking boom that's centered more on private lands. But that said, it's still quite significant! Check out the chart above. The big picture: The temporary order comes ahead of what's expected to be a wider effort to limit new development, given that Biden's platform called for "banning new oil and gas permitting on public lands and waters." Yes, but: The effects of these policies could be limited in the near-term because many companies have a large inventory of existing permits. A new Goldman Sachs note says several oil-and-gas producers with the most exposure to federal lands "have indicated they have 3-4 years of inventory already permitted." | | | | | | | | 5. Yellen: Biden is "fully supportive" of CO2 pricing | | Janet Yellen, Joe Biden's nominee to run the Treasury Department, has made clear to senators that her boss supports carbon pricing. But we still don't know what that backing could, possibly, maybe, eventually mean policy-wise. Driving the news: "I am fully supportive of effective carbon pricing and I know that the President is as well," Yellen said in written answers to Senate Finance Committee members' questions published yesterday. - "We cannot solve the climate crisis without effective carbon pricing," she wrote.
- "The President does support an enforcement mechanism that requires polluters to bear the full cost of the carbon pollution they are emitting."
What we don't know: What that "enforcement mechanism" might mean. Carbon pricing typically refers, however, to taxes or emissions trading systems. Catch up fast: Yellen is on record supporting a proposal that would tax emissions and return revenues to the public. But carbon taxes have little political traction on Capitol Hill now, and emissions trading systems are a heavy lift in Congress, too. Most Republicans don't like them, while Democrats and many activists are putting a higher priority on other climate policy ideas. The intrigue: There could be some avenues that don't require Congress (but would likely face litigation). - The Obama-era Clean Power Plan to cut power plant emissions gave states the option of using CO2 trading to meet their requirements.
- But the overall rule never took effect due to a Supreme Court stay.
What's next: Yellen said she'll continue discussing her views and thinking with Biden and other people in the administration. | | | | | | | | A message from ExxonMobil | | ExxonMobil sets emission reduction plans for 2025 | | |  | | | | As part of our ongoing commitment to help mitigate the risks of climate change, we've announced plans to further reduce emissions in our operations by 2025. It's something we're working on every day. Learn more about our plan to reduce our emissions. | | | | | | Axios thanks our partners for supporting our newsletters.
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