| | | | | |  | | By Matthew Choi | Presented by |  | | | With help from Anthony Adragna, Alex Guillén and Ben Lefebvre. Editor's Note: Morning Energy is a free version of POLITICO Pro Energy's morning newsletter, which is delivered to our subscribers each morning at 6 a.m. The POLITICO Pro platform combines the news you need with tools you can use to take action on the day's biggest stories. Act on the news with POLITICO Pro. | | | — The Biden administration is looking into new Nord Stream 2 sanctions, following weeks of Republicans bemoaning a slow action to try to block the project. — The Rep. Deb Haaland confirmation vote for Interior secretary comes today, making the progressive lawmaker the first Native American cabinet secretary ever. — The Supreme Court is planning to take on a handful environmental cases next month, including the biofuel program waivers for small refineries. HAPPY MONDAY! I'm your host, Matthew Choi. Congrats to Chris Tucker of FTI Consulting for knowing the TransMilenio is in the beautiful Andean city Bogotá. For today: What county has the fastest trains in Africa? Send your tips and trivia answers to mchoi@politico.com. 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: A historic day for the Interior Department | | | | | | | NORD STREAM'S SANCTION LIST TO GROW: After weeks of Republican prodding, the Biden administration is looking at potential new targets for sanctions related to the Nord Stream 2 pipeline, Biden officials told POLITICO's Natasha Bertrand, Ben Fevebvre and Andrew Desiderio . The administration's next update on the sanction list is due in May, and companies involved in the work could be identified before that deadline. "We are continuing to look at entities that may be involved in sanctionable activities and will take necessary follow-on steps from there," a senior official said. Republicans have been vocally critical of what they see as the administration's slow response to the pipeline, which would bring Russian natural gas to Central Europe via the Baltic Sea. Both parties in Congress have condemned the project for bleeding Russian infrastructure into the NATO-sphere and costing billions in opportunity costs to Ukraine, a key ally in the region. | 
A crane moves parts for the under-construction Nord Stream 2 pipeline between Russia and Germany. | Axel Schmidt/Getty Images | But the Biden administration will still have to navigate a sticky situation as it balances its work rebuilding the U.S. relationship with Germany. The German government has proposed some alternatives to shutting down the pipeline — which is within spitting distance of completion — that the administration could present to Congress. Both sides are still discussing the project, but neither U.S. officials nor the Germans would open up on what alternatives, if any, they would pursue. One lobbyist involved in efforts to stop the project said that some inside the administration hope they can buy time until Germany's federal elections in September, which could see the country's Green party gain power and potentially pull out of the pipeline project. Natasha, Ben and Andrew have more. THE VIEW FROM KYIV: Natasha also reports that a major concern within Ukrainian President Volodymyr Zelensky's circle is that the Biden administration would prioritize rebuilding its relationship with Germany over Ukraine's security and economic interests. Read more from Natasha on how the Biden administration is dealing with Ukraine. | | A message from Calpine: Calpine is America's largest generator of electricity from natural gas and geothermal energy. As an integrated, competitive power company, Calpine is leading the charge on economy-wide decarbonization through electrification and the expansion of renewables backed up by efficient, reliable natural gas. Learn more about how Calpine is answering the call on climate change: calpineactsonclimate.com | | | | | | HAALAND NEAR FINISH LINE: Deb Haaland's nomination to be Interior secretarty heads to a final vote shortly after 5:30 p.m. today, capping off a tumultuous confirmation process for the Democratic member of Congress who's set to become the first Native American woman to serve as a Cabinet secretary. But before she leaves the House, Haaland took time Friday to hop on Instagram Live and celebrate Women's History Month, making only a passing reference to her nomination while talking with Rep. Sharice Davids . The Interior Department "is only a couple miles away so and I'll keep my pin so I can still come back to the floor of the House, and I can still visit you in your office," Haaland said. The pair were the first Native American women ever elected to Congress. If you were wondering: Haaland said her name comes from her father's side of the family, which immigrated to the U.S. from Norway. FIRST IN ME: Republicans in the House Energy and Commerce Committee are unveiling a package today they say is aimed at boosting U.S. competitiveness in various corners of the energy industry while seeking to curb climate change. The measures include authorizing the Keystone XL pipeline (which President Joe Biden has already blocked), prohibiting any bans on fracking and promoting carbon capture and storage research via the DOE loan program. "The House Energy and Commerce Republican agenda will protect jobs, energy reliability, and America's national security from the Left's rush to green and socialist agenda for a complete government takeover of the nation's energy and economy," the members said in a statement. Read a list with brief descriptions of the bills. BUILDING BIPARTISANSHIP: With the Covid stimulus legislation completed, Democrats' next major legislative priority is its sweeping infrastructure package, and despite the fact that last week's bill moved without any Republican support, House Speaker Nancy Pelosi was optimistic on Sunday the new effort would be bipartisan. "Building roads and bridges and water supply systems and the rest has always been bipartisan, always been bipartisan — except when [Republicans] opposed it with the Democratic president as they did with President Obama, and we had to shrink the package," Pelosi told host George Stephanopoulos on ABC's "This Week". "But, nonetheless, hopefully we will have bipartisanship." Pelosi has told committee chairs to start reaching out to Republicans about possible infrastructure targets and is keeping an eye on financing the package in a way that could appease Republican concerns. More from POLITICO's Jesse Naranjo. FOR YOUR RADAR: Pelosi tapped Rep. Don Beyer (D-Va.) to chair the Joint Economic Committee. He is currently serving as its vice chair and also chairs the Safe Climate Caucus and New Democrat Coalition Climate Change Task Force. | | | | JOIN THE CONVERSATION, SUBSCRIBE TO "THE RECAST": Power dynamics are shifting in Washington, and more people are demanding a seat at the table, insisting that all politics is personal and not all policy is equitable. "The Recast" is a new twice-weekly newsletter that breaks down how race and identity are recasting politics, policy and power in America. Get fresh insights, scoops and dispatches on this crucial intersection from across the country, and hear from new voices that challenge business as usual. Don't miss out on this new newsletter, SUBSCRIBE NOW. Thank you to our sponsor, Intel. | | | | | | | | AUTOMAKERS PUSH FOR LOWER EMISSIONS STANDARD: Automakers are proposing a vehicle emissions standard lower than both the Obama administration's rates and the deal that California set with five automakers, the Associated Press reports. The standards would be above the Trump administration's 1.5 percent annual improvement requirement, but would fall short of the 3.7 percent increase under the California deal or the 5 percent set by Obama. Automakers are also seeking the reinstatement of a "multiplier" that gives them extra credit for selling more electric vehicles, the AP reports. (The Trump rule didn't continue that provision, instead providing a multiplier only for natural gas vehicles, which are not available in light-duty vehicles in the U.S.) ME thinks: This may be only the industry's opening bid, but Biden is going to have a tough time claiming he lived up to his campaign promise of aggressive fuel economy standards if he can't even get the industry to agree to the 3.7 percent level in the California deal. Environmentalists argue Biden needs to go beyond Obama's target, so anything less than California's level is going to leave them screaming. Greens also are not thrilled about flexibilities like the multiplier since they tend to make the program ultimately less effective, though it's the kind of thing that easily could end up in a final agreement. One big question: What's the timeline here? Getting automakers to agree to a program through 2030 would have value — though there's always the danger that a future Republican president, as Trump did, could throw a wrench in such plans. QUAD UP: The Quad — that is, Australia, Japan, India and the U.S. — are creating a new climate change working group to "keep a Paris-aligned temperature within reach," the White House announced Friday. Biden met virtually with the heads of government of the three other countries last week. Among the initiatives the four counties plan to work on are "cooperation on climate finance, resilience and technology efforts and new steps to encourage other nations to make more aggressive emissions-cutting pledges," Zack Colman reports for Pros. What's the target: The Paris Climate Agreement shoots to limit global temperature increase by 2 degrees Celsius above preindustrial levels, though its reach target is 1.5 degrees, a levels needed to prevent the most vulnerable countries from suffering catastrophic damages. That's the target the Biden administration has been in line with for its climate plan, and it wasn't clear which target the Quad agreement will base its initiatives on. Read more from Zack. INFLATION WATCH: Treasury Secretary Janet Yellen dismissed concerns that Democrats' $1.9 trillion Covid package could lead to major inflation. "The most significant risk we face is a workforce that is scarred by a long period of unemployment. … Is there a risk of inflation? I think there's a small risk. And I think it's manageable," she said Sunday on ABC's "This Week". POLITICO's David Cohen has more. | | | | A message from Calpine:   | | | | | | THREE DAYS OF SCOTUS: Late April promises to be a busy time for the Supreme Court, which announced an April calendar with three straight days of arguments in environmental cases. First up on April 26 is a case to decide whether Guam or the U.S. Navy is responsible for a $160 million Superfund cleanup. On April 27 the court will hear refiners' appeal of the 10th Circuit's ruling that severely limited EPA's ability to exempt small refiners from biofuels blending requirements. (EPA recently shifted to support the 10th Circuit's decision and is waiting to act on 46 pending requests until the Supreme Court rules in this case.) And on April 28, the court will hear arguments in the PennEast pipeline case out of New Jersey; the Biden administration is sticking with the Trump position supporting federal authority over state powers in eminent domain cases. JUDGE JANGLES MOUNTAIN VALLEY SPUR: A federal appeals court told North Carolina regulators to reassess their decision to withhold a water permit for a spur of Mountain Valley Pipeline, essentially vacating a lower court's decision that halted construction on the pipeline extension. Judges for the U.S. Court of Appeals for the Fourth Circuit said last week that the North Carolina Department of Environmental Quality's decision to deny the permit was within its legal rights but that it didn't properly explain its decision to the pipeline backers. "On appeal, we hold that the Department's denial is consistent with the State's regulations and the Clean Water Act," Chief Judge Robert Gregory wrote in the ruling. "Nevertheless, the Department did not adequately explain its decision in light of the administrative record." The decision impacts Mountain Valley's Southgate Project , a tangent of the larger pipeline that would bring natural gas from Virginia to North Carolina. About 48 miles of the project would cross through more than 200 of North Carolina's waterways, some of which contain fisheries or supply drinking water. The DEQ originally denied the spur project's permits, saying that it would be unnecessary until the completion of the main Mountain Valley Project, which has been delayed because of its own legal issues. The court basically said that's fine, but why not consider a conditional approval instead? "The Department must...explain why the Department chose denial over conditional certification," the judges say in their opinion. Read the full opinion. | | | | HAPPENING THURSDAY - PLAYBOOK INTERVIEW WITH CONGRESSMAN LEE ZELDIN : The GOP has not won a statewide election in New York in nearly two decades. Rep. Lee Zeldin (R-N.Y.), an ally of former President Donald Trump, is one of several Republicans considering a challenge against embattled New York Gov. Andrew Cuomo. Join Playbook co-authors Tara Palmeri and Ryan Lizza for a conversation with Rep. Zeldin to discuss a potential gubernatorial run and how he is working with Democrats in Congress. REGISTER HERE. | | | | | | | | — Rebecca Brown joins the Bracewell Policy Resolution Group's Strategic Communications team as a principal. She previously served as deputy director of communications at the Department of Energy. — The National Mining Association has hired Integrated Strategy Group's Hayden Rogers, a former chief of staff to Senate swing vote Joe Manchin (D-W.Va.), to lobby on energy policy and coal and mineral resources issues. (H/t POLITICO Influence) — The Department of Energy named Tracey LeBeau as interim administrator and CEO of the Western Area Power Administration. She previously served as WAPA's senior vice president. | | | — "Countries Tried to Curb Trade in Plastic Waste. The U.S. Is Shipping More," via The New York Times. — "Green Climate Fund whistleblowers urge US to take its money elsewhere – until 'toxic' workplace is fixed," via Climate Home News. — "Utah delegation presses Biden to delay monuments decision," via E&E News. — "A month without water: In Jackson, Mississippi, struggling residents fear next outage," via NBC News. — " Lt. Gov. Dan Patrick focuses scorn on Public Utility Commission after winter storm, testing Gov. Greg Abbott," via The Texas Tribune. — "Beyond Covid relief: Biden invokes LBJ as Democrats aim to expand welfare state," via POLITICO. THAT'S ALL FOR ME!
| | A message from Calpine: Calpine is Leading the Way to Address Climate Change
Meaningful decarbonization will require a comprehensive strategy. As America's largest generator of electricity from natural gas and geothermal resources, Calpine is leading the way. We're working to build a low-carbon future through economy-wide decarbonization, which requires widespread electrification and the expansion of renewables backed up by efficient, reliable natural gas. Learn more: calpineactsonclimate.com | | | | | | | Follow us on Twitter | | | | Follow us | | | | |
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