Wednesday, December 21, 2022

Last call for Congress and energy

Your guide to the political forces shaping the energy transformation
Dec 21, 2022 View in browser
 
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By Heather Richards

Lawmakers huddle on Capitol Hill ahead of spending deal

Senate Appropriations ranking member Richard Shelby (R-Ala.), left, and Minority Leader Mitch McConnell (R-Ky.) at the Capitol on Tuesday. | Francis Chung/POLITICO

It's that time of year! No, not the holidays. It's the season on Capitol Hill when Congress hashes out, at the very last minute, a spending bill to (usually) avert a government shutdown.

Appropriators in the Senate have produced a $1.7 trillion omnibus spending package that supporters hope to approve by Friday, when a temporary measure to keep the government open sunsets. The Senate vote could come as early as late Wednesday night.

And because government is always a local story on some level, they are hurrying to finish before the Washington, D.C., region is slammed with a winter storm that could jam planes, trains and automobiles just when lawmakers hope to make it home.

The pressure is especially high for this lame-duck Congress, as the House will flip to a Republican majority in January and President Joe Biden will face more friction over his emissions-cutting, renewables-deploying climate agenda.

So what have appropriators produced for their curtain closer? Few surprises amid a modest boost for clean energy, conservation and environmental efforts:

More than half the spending bill goes to defense. Roughly $773 billion would go to domestic spending. That's a 5.5 percent increase from last year's enacted numbers, meaning EPA and the Interior and Energy departments would get a final boost from the Democrats.

The bill also takes on issues including agricultural greenhouse gas emissions, funding for the water crisis on the Colorado River and $1 billion for Puerto Rico's battered electricity grid.

It also includes a provision that would keep the greater sage grouse from being listed as an endangered species.

The declining bird struts on lands rich in oil, gas and mining interests, and an Endangered Species Act listing would make drilling far more difficult. Whether to bar a listing leads to perennial partisan fisticuffs.

And sorry, world: The bill doesn't include any of the $1.6 billion that Biden had requested for the United Nations Green Climate Fund.

Final hurrah for the Democrats?

Passing the omnibus bill would be the last major act from this Democratic Congress, after a two-year run that produced significant measures for the grid, offshore wind, energy storage, electric vehicles and other climate-minded priorities, including last year's infrastructure law and the Inflation Reduction Act.

GOP hardliners have fought the omnibus, while Republican appropriators say it's the deal they can get.

"This process was far from perfect, but ultimately it allowed Republican redlines to be adhered to," Senate Appropriations ranking member Richard Shelby (R-Ala.) said in a statement this week. He added, "We need to do our job and fund the government."

The rapidly approaching Friday deadline comes as Congress readies for a prime time address Wednesday night from Ukrainian President Volodymyr Zelenskyy, following a White House session and news conference, underscoring the global upheavals occurring outside of Washington's partisan wrestling matches.

The omnibus bill has not ignored the backdrop of the Russian war. Ukraine could see $45 billion in emergency aid if it's passed — $7 billion more than Biden had requested.

It's Wednesday — thank you for tuning in to  POLITICO's Power Switch. I'm your host, Heather Richards, subbing in today for the great Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net.

Today in POLITICO Energy's podcast: POLITICO's Wes Venteicher digs into a "climate collision course" in California, where a new tax on refining is the latest volley in pitched battle over energy. The state's oil industry is on one side, California Gov. Gavin Newsom and a host of climate policies are on the other.

Picture this

Grid of the future

A side-by-side image of the electricity grid and an upcoming cold weather map. | Mathias Einberger, Twitter

The Arctic blast blanketing much of the United States in the coming days inspired Mathias Einberger, a senior associate at the Rocky Mountain Institute, to sketch up a side by side Tweet highlighting the nation's disjointed electricity grid and the kind of challenging, massive weather events grid planners have to weigh in the future.

Power Centers

Workers install solar panels on the roof of a home in San Francisco in 2018.

Workers install solar panels on the roof of a home in San Francisco in 2018. | Justin Sullivan/Getty Images

Grid under pressure? California is trying to get houses and commercial buildings to ditch gas for electric water heaters, stoves and other appliances as part of an effort to drive down emissions in a sector responsible for about a quarter of the state's greenhouse gas output. But a recent cut to rooftop solar incentives has highlighted a pressing question about the shift away from gas: Is the grid ready for the new demand from electrification?

The state has defended its mix of policies as an effort on several fronts to bring about the energy transition, reports E&E News' Jason Plautz.

Confronting climate roots at the border: A Trump-era Covid-19 policy making it easier to expel migrants at the southern U.S. border is nearing the end of its court-ordered extension, meaning the Biden administration is bracing for a serious challenge to how it approaches the crossover of climate and immigration. The White House has taken heat for not staying true to its campaign era messaging to deal with the root causes of migration, including for the first time, climate change, reports E&E News' Adam Aton.

Climate IOU: A billion-dollar earmark to help developing countries deal with climate change in the omnibus spending package underscores how far short the U.S. is from a pledge made at international climate talks in Egypt this year. Biden promised $11.4 billion annually in international climate finance by 2024. Some in Congress remain averse to the loss-and-damage fund model, preferring more targeted aid, report E&E News' Sara Schonhardt and Nick Sobczyk.

 

A NEW POLITICO PODCAST: POLITICO Tech is an authoritative insider briefing on the politics and policy of technology. From crypto and the metaverse to cybersecurity and AI, we explore the who, what and how of policy shaping future industries. We're kicking off with a series exploring darknet marketplaces, the virtual platforms that enable actors from all corners of the online world to traffic illicit goods. As malware and cybercrime attacks become increasingly frequent, regulators and law enforcement agencies work different angles to shut these platforms down, but new, often more unassailable marketplaces pop up. SUBSCRIBE AND START LISTENING TODAY.

 
 
In Other News

A tale of ice and wind: The weather barreling towards Washington, D.C., isn't just putting pressure on lawmakers as they hammer out a spending deal. It's part of a much larger Arctic cold front crossing over much of the U.S. with historic low temperatures and wind storms, which will put pressure on the nation's grid and potentially cut power to many homes in the days ahead.

A sustainability question few are talking about: When will the move to electric vehicles reach a critical mass so that recycling EV batteries takes off? Metals such as lithium and cobalt can be removed from old batteries to be used in new ones making the industry more sustainable. But it will take the industry booming for this cottage industry to grow to scale, according to reporting from the New York Times.

Question Corner

In 1991, the world's first offshore wind farm was built off the coast of a small island in northern Europe, heralding a new era in renewable energy that's only just reaching U.S. shores. What country was it? Bonus points if you know the name of the offshore wind array!

Know the answer? Send it to hrichards@eenews.net with "Question Corner" in the subject line.

Subscriber Zone

Disaster funding investigation

Claudine Hellmuth/POLITICO (illustration); Vasko/iStock (blue prints); Thomas Frank/E&E News (houses); Connecticut Department of Housing (documents); NASA/GSFC/Jeff Schmaltz/MODIS Land Rapid Response Team (hurricane)

An investigation into equity after disasters: Federal aid managed by the Department of Housing and Urban Development is meant to go to people in need following disasters. But an E&E News investigation uncovered dozens of payments released after Hurricane Sandy that went to rebuild homes worth over $1 million, raising questions about wealth and need after disaster strikes, at a time when climate scientists foresee worsening natural disasters, according to reporting from E&E News' Thomas Frank.

Arctic ice geoengineering a bust? A proposal in the Arctic meant to slow melting ice through geoengineering could actually make things worse. Dwindling sea ice in a warming Arctic could lead to some ice-free summers in the region, a drastic change in the far north that scientists are eager to avoid. But a nonprofit's idea to make ice shinier so it could reflect more sunlight and thus keep the ice cool might actually increase melting, according to reporting from E&E News' Chelsea Harvey.

A gas-free West Coast: Oregon and Washington have approved plans that would effectively phase out new gasoline-fired cars, joining California to make the West Coast emissions free by 2035. The new rules begin in 2026, when zero-emissions cars must make up at least 35 percent of new sales, according to reporting from E&E News' David Ferris.

That's it for today. Thanks for reading!

 

POLITICO AT CES 2023 : We are bringing a special edition of our Digital Future Daily newsletter to Las Vegas to cover CES 2023. The newsletter will take you inside the largest and most influential technology event on the planet, featuring every major and emerging industry in the technology ecosystem gathered in one place. The newsletter runs from Jan. 5-7 and will focus on the public policy related aspects of the event. Sign up today to receive exclusive coverage of CES 2023.

 
 
 

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