Monday, March 15, 2021

Axios Generate: GM just registered a whole bunch of new outside lobbyists

Plus, Biden's climate diplomacy challenges and a busy week ahead | Monday, March 15, 2021
 
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Generate
By Ben Geman ·Mar 15, 2021

Good morning. Today's Smart Brevity count is 1,016 words, < 4 minutes.

🚨"Upstart Texas power retailer Griddy Energy LLC, devoid of customers and facing litigation after charging hefty amounts during the winter freeze that swept the state last month, is planning to file for bankruptcy." (WSJ)

🎶 And happy birthday to Sly Stone, whose band has today's uplifting intro tune...

 
 
1 big thing: GM adds a slew of outside lobbyists amid EV push
Illustration of a line of men in suits pushing an electric vehicle. 

Illustration: Aïda Amer/Axios

 

General Motors has made five additions to its roster of outside lobbying firms that will work on topics including electric vehicles.

Why it matters: Big companies are positioning themselves to influence policy and legislation as Democrats wield expanded power, but Republicans also hold lots of sway in the narrowly divided Congress.

Driving the news: Newly public filings under the Lobbying Disclosure Act show these firms began working for GM last month on a wide array of matters.

Of note: Ricchetti Inc.'s head Jeff Ricchetti is the brother of White House counselor Steve Ricchetti, a closer adviser to President Biden.

What they're saying: Asked about the suite of new hirings, GM spokeswoman Jeannine Ginivan tells Axios:

  • "We evaluate our consultants on an annual basis to ensure we are well positioned to advocate for policies that support our customers, dealers and employees, help strengthen our manufacturing presence in the United States and advance our vision of a world with zero crashes, zero emissions and zero congestion."

The big picture: There's frequent churn in various companies' outside lobbying rosters, especially during power transitions, so we'll be watching automakers and other interests.

E&E News noted this month that "A bevy of clean energy companies has registered to lobby the federal government in recent months."

* * *

Speaking of cars and lobbying, the Associated Press reports: "A coalition of automakers has told the Biden administration it would agree to raise mileage standards to reduce tailpipe emissions but with tradeoffs and at rates lower than those brokered by California with five other car manufacturers."

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2. Chart of the day: Lordstown Motors stock
Data: FactSet; Chart: Axios Visuals

That cliff is what happened to EV startup Lordstown Motors stock Friday after short-seller Hindenburg Research issued a report saying the truck company had "misled investors on both its demand and production capabilities."

The big picture: The report hits Lordstown for, among other things, promoting nonbinding "pre-orders" that turn out to be from customers that generally don't operate fleets and "often do not have the means to make the purchases."

The other side: "We will be sharing a full and thorough statement in the coming days, and when we do we will absolutely be refuting the Hindenburg Research report," Lordstown spokesman Ryan Hallett said.

  • One thing to watch: The Hindenburg report cites former employees who estimate the company is three to four years away from production of its pickup.
  • The company, however, maintains it is on track for a September production launch.

Why it matters: Lordstown is among the various EV startups without commercial-scale production to go public via merger with special purpose acquisition companies.

What's next: Lordstown's first earnings report as a public company coming Wednesday will certainly get outsized attention.

Go deeper:

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3. The intensifying race to claim cleaner LNG cargoes

More and more liquefied natural gas companies are moving to show buyers they're serious about trying to rein in greenhouse gas emissions.

Driving the news: Spanish energy company Repsol said emissions linked to LNG loaded into a Swedish-flagged chemical tanker would be fully offset via carbon credits. Reuters has more.

Bloomberg, meanwhile, reports that Russian natural gas producer Novatek is looking to curb emissions associated with its cargoes via steps like carbon capture at one of its Arctic gas fields.

Why it matters: They're the latest signs of LNG companies looking to reassure buyers that are increasingly factoring emissions into their decisions.

  • "Buyers from Singapore to Europe are increasingly demanding to know exactly how dirty the gas is and the scale of the emissions it produces on its journey from wells to the end user," Bloomberg notes.
  • It's both a climate story and a geopolitics story as the U.S. and Russia, both giant producers, vie for influence and market share in global gas markets.

Catch up fast: A couple of weeks back we wrote about how U.S. LNG exporter Cheniere Energy will start giving customers detailed info about the greenhouse gas footprint of its cargoes.

And a Shell spokesman told me early this month that it has delivered over a half-dozen "carbon neutral" LNG cargoes to Asia, with lifecycle emissions addressed via offsets.

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Meeting energy needs and tackling climate change isn't either/or
 
 

We have to do both. Innovative partnerships and technology drive solutions for energy customers, our economy and our environment.

Let's make even more progress together.

 
 
4. Biden's tricky diplomatic path
Illustration of the earth as an unsolved Rubik's Cube

Illustration: Aïda Amer/Axios

 

A few days ago I wrote that Biden would eventually have to make decisions and compromises that irk climate advocates who have been pretty psyched about his initial moves.

What's new: It's already happening. The New York Times reports...

  • "[O]n Friday, over the fierce protests of environmental activists, the Biden administration allowed a former Australian finance minister — who tried to abolish Australia's renewable energy targets and once called carbon pricing a "very expensive hoax" — to be named director of the Organization for Economic Co‑operation and Development."

The intrigue: The NYT reports Biden officials backed a rival choice for the post that Australia's Mathias Cormann won in the closed-door selection process.

However, "Activists have charged that Mr. Cormann could never have succeeded if the Biden administration had strongly opposed him."

The big picture: The piece says it's one of a few recent moves in the foreign policy arena that have disappointed activists, including:

"When Mexico earlier this month passed an energy bill that set back the country's climate goals, the Biden administration raised no public objections."

Yes, but: More broadly, as the NYT notes, the Biden administration has made clear that climate change will be a major diplomatic priority.

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5. Busy week ahead: Oil, Interior, Congress

Oil markets: The International Energy Agency will release its monthly market analysis on Wednesday, providing its latest look at how it sees demand returning from the pandemic.

IEA will release its annual five-year oil market lookahead the same day.

Agencies: The Senate is poised to approve Rep. Deb Haaland as Interior secretary as soon as this evening.

  • Why it matters: Haaland will be the first Native American cabinet secretary.
  • Interior is also tasked with making decisions that are key to Biden's energy and climate agenda — including the future of now-frozen oil-and-gas leasing on federal lands.

Congress: This week brings a bunch of energy- and climate-related congressional hearings in both chambers. The list includes...

  • Tomorrow the Senate's energy committee will explore transportation technologies.
  • Wednesday brings one hearing on the national security aspects of climate change and another on "the business case for climate solutions."
  • Thursday's action includes a House hearing on lessons learned from the Texas blackouts and a Senate hearing on climate-related financial risks.
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The reason: Reliable energy and innovative climate solutions are powering progress, so that it's possible to do both.

Learn how we're doing more together.

 
 

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