Monday, August 8, 2022

What's next for the climate bill

Presented by Williams: Your guide to the political forces shaping the energy transformation
Aug 08, 2022 View in browser
 
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By Timothy Cama and Nick Sobczyk

Presented by Williams

Chuck Schumer speaks at a microphone.

Senate Majority Leader Chuck Schumer (D-N.Y.) outside the U.S. Capitol. | Drew Angerer/Getty Images

Democrats got over a big hump yesterday with the Senate's passage of their climate bill, a generational investment in clean energy that could supercharge efforts to combat climate change in the U.S. over the next decade.

It capped months of negotiations between Senate Majority Leader Chuck Schumer (D-N.Y.) and Sen. Joe Manchin (D-W.Va.) that resulted in a $379 billion package of clean energy investments, the biggest climate bill to ever pass Congress.

"It's not the end of the road. In fact, it's the start of what we need to do on climate action," Sen. Brian Schatz (D-Hawaii) said in an interview. "But it is by far the most significant climate action that any government has ever taken."

But the "Inflation Reduction Act" still has a few steps to go before it's law.

Following Senate bill passage along party lines and a tiebreaking vote in the Senate by Vice President Kamala Harris, attention now turns to the House, which will reconvene to consider the bill Friday.

Democrats hold the House's majority by a margin of 220 to 210. But it's not yet clear if every member of the caucus will vote for the bill. In particular, Texas Rep. Henry Cuellar, a conservative Democrat who supports fossil fuels and has expressed concerns about such proposals in the past, has not yet committed to backing it .

On the other hand, Democratic Reps. Josh Gottheimer and Mikie Sherrill of New Jersey and Tom Suozzi of New York, who had unsuccessfully pushed for the party to include relief from state and local taxes, said they'd support it nonetheless.

"This legislation doesn't raise taxes on families in my district — it reduces the financial burden on them," Gottheimer said. "For that reason, and for its strong support of the climate, lower prescription drug prices and job creation, I'll be voting for it."

If passed by the House, the bill heads to President Joe Biden to be signed into law.

Next step: Permitting reform

Manchin was promised a permitting reform package to clear the path for faster energy project development in exchange for his support of the "Inflation Reduction Act." In the coming weeks, we should see details and votes on that.

"We are moving full steam ahead on comprehensive bipartisan permitting reform so we can efficiently and safely bring more domestic energy projects online," Manchin said in a statement. "Congress will pass that legislation next month."

As we wrote last week , however, that separate legislation would need 60 votes in the Senate to pass, and the politics are far from certain.

 

Check out the  POLITICO Energy podcast  — all the energy and environmental politics and policy news you need for the day, in just five minutes. Listen and subscribe for free at  politico.com/energy-podcast . On today's episode: Josh Siegel and Matt Daily discuss Democrats' climate bill and what it means for the midterms .

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It's Monday — thank you for tuning in to POLITICO's Power Switch. We're your hosts today,  Timothy Cama and Nick Sobczyk . Arianna Skibell will be back soon! Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to tcama@eenews.net or nsobczyk@eenews.net.

Trends

A customer pumps gas at an Exxon gas station.

A customer pumps gas at an Exxon gas station. | Marta Lavandier/AP Photo

Gasoline prices are very close to falling below $4 per gallon on the national average calculated by GasBuddy, a fuel price tracking firm, the company said today.

As of this morning, the average price was $4.01, Patrick De Haan, the company's communications director, said in a blog post . It could reach $3.99 within the day.

GasBuddy isn't the only gas price average game in town, though. AAA has a $4.059 national mean.

A view of solar panels in Calverton, N.Y.

A view of solar panels in Calverton, N.Y. | Bruce Bennett/Getty Images

Climate bill roundup
The climate bill passed by the Senate is a major legislative achievement, but the road to decarbonization is challenging, writes Benjamin Storrow.

New transmission lines need to be permitted and built, batteries need to be installed to back up renewables and emerging energy technologies need to be more widely deployed. That's not to mention the industrial sector, which has relatively limited technological options. Read the story here .

Still, the bill stands to be a massive boon for clean energy, write Ben Lefebvre, Kelsey Taborrino and Josh Siegel.

It stands to more than triple the clean energy production in the the United States, adding enough to the grid to power 110 million homes, according to the American Clean Power Association. Read that story here .

European gas wars
The European Union is struggling to move away from Russian natural gas after the invasion of Ukraine, and months of political and economic games by Russian President Vladimir Putin have roiled markets, writes America Hernandez. Read more here .

 

A message from Williams:

Did you know Williams was the first North American midstream company to announce comprehensive climate targets? We're taking action, right here, right now, to meet our near-term goal of a 56% reduction in greenhouse gas emissions by 2030. Learn more in our latest Sustainability Report. Question: How many homes and businesses use natural gas in the U.S.? Scroll down for the answer.

 
In Other News

Sen. Joe Manchin.

Sen. Joe Manchin (D-W.Va.) at the Capitol. | Francis Chung/E&E News

Money is power: Natural gas pipeline companies that stand to benefit from Manchin's climate deal have given hundreds of thousands to the West Virginia Democrat's campaign .

Boston's Green New Deal adviser: Boston Mayor Michelle Wu has named Oliver Sellers-Garcia to be her senior adviser for Green New Deal-related matters.

Not our fault: Siemens Energy CEO Christian Bruch said his company isn't to blame for Russia's refusal to accept delivery of a turbine for the Nord Stream 1 pipeline.

Question Corner

The science, policy and politics driving the energy transition can feel miles away. But we're all affected on an individual and communal level — from hotter days and higher gas prices to home insurance rates and food supply.

Want to know more? Send us your questions and we'll get you answers.

 

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Chuck Schumer

Senate Majority Leader Chuck Schumer (D-N.Y.). | Francis Chung/E&E News/POLITICO

Democrats are feeling pretty good after the climate bill's Senate passage, but voters don't have much of a track record of rewarding political parties for their legislative victories in elections.

Virginia has given the go-ahead to Dominion Energy Inc.'s proposed 176-turbine offshore wind farm, which would be the country's largest .

The European Union's commissioner for crisis management wants member countries to expand the European Commission's power to respond to climate-change-related disasters , which are increasingly frequent.

That's it for today, folks! Thanks for reading.

 

A message from Williams:

Answer: Williams safely and reliably handles 30% of the country's natural gas. We're proud that our infrastructure is part of the solution ensuring that natural gas reaches the 77 million homes and business utilizing natural gas in the continental U.S.

We understand the direct link between sustainable business operations, corporate stewardship in communities and long-term business success. As a result of our ESG imperatives, Williams ranked No. 1 in its peer group in the Dow Jones Sustainability Index for 2021 and was the only U.S. energy company to be included in both their world and North American indices.

Williams is leading the next generation of the energy marketplace which is rooted in a strategic energy mix – natural gas, next gen gas, hydrogen, solar, wind, and other emerging technologies that must meet growing energy demand without sacrificing reliability, affordability, or safety.

Learn more in our new Sustainability Report.

 
 

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