Friday, December 2, 2022

Latest cloud for U.S. solar industry

Presented by Chevron: Your guide to the political forces shaping the energy transformation
Dec 02, 2022 View in browser
 
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By Lamar Johnson

Presented by Chevron

Solar panels work at the DTE O'Shea Solar Park in Detroit, Wednesday, Nov. 16, 2022. (AP Photo/Paul Sancya)

Solar panels. | AP Photo/Paul Sancya

President Joe Biden's clean-energy agenda is dealing with yet another headache — an investigation by his own Commerce Department that found rampant cheating in solar imports from Asia.

The probe, which much of the industry has been dreading for months, found that four Chinese solar manufacturers are dodging U.S. tariffs by using factories in Southeast Asia to assemble their products.

Today's draft finding could lead to new wide-ranging tariffs on solar panels and cells imported from Cambodia, Malaysia, Thailand and Vietnam, David Iaconangelo writes for POLITICO's E&E News .

That, in turn, might jack up costs for U.S. solar companies that use components from those countries — just as the industry has been hoping to reap the benefits from incentives in Biden's new climate law.

The four Southeastern Asian countries named in the probe supply about 80 percent of imported U.S. solar modules, POLITICO's Kelsey Tamborrino writes . While the new climate law aims to spur a resurgence in U.S. solar manufacturing, industry groups warn that that won't happen soon enough to blunt the havoc caused by jacked-up tariffs.

Commerce's finding "will strand billions of dollars worth of American clean energy investments and result in the significant loss of good-paying, American, clean energy jobs," said Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association, in a statement today. The department is expected to issue a final ruling in May.

An industry divided

A complaint from California-based solar panel maker Auxin Solar instigated the probe in February . But many U.S. solar installers and developers have castigated the Commerce investigation, calling it a threat to Biden's overarching goal of weaning the U.S. power sector off fossil fuels.

Biden sought to get ahead of the ruling in June by imposing a two-year stay for any tariffs that may come from the investigation. Biden also invoked the Defense Production Act to help ramp up domestic solar production. But Ross Hopper said the two-year window will not be enough to prop up America's solar supply chain.

One bright spot for the probe's critics: Commerce declined to propose blanket bans on imports from the four countries in question.

 

It's Friday — Thank you for tuning into POLITICO's Power Switch. I'm your host today, Lamar Johnson. Arianna 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 ljohnson@eenews.net.

Today in POLITICO Energy's podcast:  Josh Siegel and Catherine Morehouse discuss whether FERC commissioner Richard Glick is on his way out at the agency.

 

A message from Chevron:

We're working to help lower the lifecycle carbon emissions of transportation fuels. Find out how Chevron's renewable diesel can help fuel the way to a lower carbon future.

 
This Is Climate Change

'Zombie' viruses thawing 

As the permafrost thaws in the Arctic, the world may get a taste of unknown viruses long lost to the world. Thirteen pathogens have been found in Russia's Siberia in thawing permafrost, The Washington Post reports .

Scientists estimate the viruses were frozen more than 48,000 years ago.

The viruses raise an issue that scientists fear will come with climate change, "zombie viruses."

Power Centers

John Kerry stands.

John Kerry and EPA Administrator Michael Regan engaging in diplomacy. | AP

Damage estimate
EPA surprised observers last month when it came out with an estimate for the cost of damage caused by climate change.

Jean Chemnick dives into how the agency beat the White House in providing an estimate.

All aboard (to avert a strike)

A railroad strike that would have decimated the nation's economy was averted Friday, as Biden signed a bill enshrining the tentative agreement reached between the labor unions and the freight rail industry, Nick Niedzwiadek writes.

The bill passed the Senate 80-15 on Thursday, without a provision that would have added up to seven days of paid sick leave for workers.

In Other News

TAFT, CA - JULY 21:  An oil rig south of town extracts crude on July 21, 2008 in Taft, California. Hemmed in by the richest oil fields in California, the oil town of 6,700 with a stagnated economy and little room to expand has hatched an ambitious plan to annex vast expanses of land reaching eastward to Interstate 5, 18 miles away, and take over various poor unincorporated communities to triple   its population to around 20,000. With the price as light sweet crude at record high prices, Chevron and other companies are scrambling to drill new wells and reopen old wells once considered unprofitable. The renewed profits for oil men of Kern County, where more than 75 percent of all the oil produced in California flows, do not directly translate increased revenue for Taft. The Taft town council wants to cash in on the new oil boom with increased tax revenues from a NASCAR track and future developments near the freeway.  In an earlier oil boom era, Taft was the site of the 1910 Lakeside Gusher, the biggest oil gusher ever seen in the US, which destroyed the derrick and sent 100,000   barrels a day into a lake of crude.  (Photo by David McNew/Getty Images)

An oil rig. | David McNew/Getty Images

New cap: The EU reached an agreement on a $60 per barrel cap on Russian oil.

Spare parts, anyone: Ukraine is searching across the world for parts to rebuild its systems following Russia's bombardment on its electricity capabilities.

Nord Stream: Germany may have used a "shadowy" part of its government to help Russia complete the Nord Stream 2 pipeline.

 

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FILE - In this undated file photo provided by the U.S. Fish and Wildlife Service, an airplane flies over caribou from the Porcupine caribou herd on the coastal plain of the Arctic National Wildlife Refuge in northeast Alaska. Decades-long political and legal battles over drilling in America's largest wildlife refuge took another turn when the Biden administration suspended oil and gas leases in Alaska's Arctic National Wildlife   Refuge. The move Tuesday, June 1, 2021, was a blow to oil and gas proponents, who came as close as they ever have to starting a drilling program after the refuge was expanded 40 years ago to include the oil-rich coastal plain. (U.S. Fish and Wildlife Service via AP, File)

In this undated photo, an airplane flies over caribou on the coastal plain of the Arctic National Wildlife Refuge in northeast Alaska. | U.S. Fish and Wildlife Service via AP, File

The Department of Interior delayed a review of an Arctic oil program until the spring. The program was approved by President Donald Trump.

A new federal program would give Native American tribes $75 million for climate-related relocation .

EPA moved to block the completion of Pebble Mine to protect Alaskan salmon. The Alaskan mining project would mine for copper and gold.

 

A message from Chevron:

Renewable fuels can help lower lifecycle carbon emissions in industries around the world. At Chevron, we're working to bring more renewable fuels to vehicles, today. Our renewable diesel can fuel trucks, trains, heavy-duty vehicles, and more, without requiring new equipment or infrastructure. The fuel—which is made with bio feedstock—has lower carbon intensity than regular diesel. It's just one of the ways Chevron is committed to increasing our renewable fuel production, and fueling a lower carbon world. Find out more about our renewable diesel.

 

That's it for today. Have a great weekend!

 

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Arianna Skibell @ariannaskibell

 

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