Irony? Climate project eyes McCarthy’s backyard.

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Feb 08, 2023 View in browser   By Arianna Skibell House Speaker Kevin McCarthy (R-Calif.) sits as Vice President Kamala Harris applauds during President Joe Biden's State of the Union address. | Francis Chung/POLITICO House Speaker Kevin McCarthy is poised to benefit from a law he vehemently opposed. Smack dab in the heart of his California congressional district, an oil and gas company is planning to build massive machines capable of sucking planet-warming pollution out of the air, POLITICO’s E&E News reporter Corbin Hiar writes. But to be viable, the project will likely need millions of dollars in support from a $3.5 billion program created by the 2021 infrastructure law — a bill McCarthy urged his Republican colleagues to oppose. The California Direct Air Capture Hub has a well-developed plan and would be located in a fossil-fuel-producing area, two features that increase its odds of winning government backing. The project would be just the latest instance of GOP lawmakers reaping the rewards of climate funding they fought. That fact hasn’t eluded President Joe Biden, who ribbed Republicans for the trend in Tuesday night’s State of the Union address. “Don’t worry, I promised to be the president for all Americans,” Biden said, turning to the Republican side of the House chamber. “We’ll fund your projects. And I’ll see you at the groundbreaking." Across the country, companies are pouring tens of billions of dollars into low-carbon energy, battery and electric vehicle projects that will benefit from incentives tucked inside legislation Biden championed. Roughly two-thirds of the major projects being funded by Biden’s climate law are in GOP-controlled districts, according to POLITICO’s tally. While no Republicans voted for the Inflation Reduction Act, Biden thanked Republicans who had supported the previously enacted bipartisan infrastructure law (13 in the House and 19 in the Senate). He said he didn’t begrudge those who voted against it, such as McCarthy, who was seated behind him. (McCarthy didn’t respond to Corbin’s request for comment.) The California project is one of several vying for infrastructure funds for so-called regional hubs meant to remove at least 1 million metric tons of carbon dioxide from the atmosphere each year. By 2050, climate scientists project, the world will need to remove as much as 10 billion metric tons of CO2 each year to avoid the worst impacts of climate change. Existing direct air capture plants remove less than 10,000 metric tons. The company planning the California project called it a “tremendous opportunity” to remove large amounts of carbon pollution from the air, but one that likely hinges on federal support. “Direct air capture is a nascent industry,” said Chris Gould, the company’s chief sustainability officer. “It needs this early stage funding to get the first projects initiated.”   It's Wednesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, 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.   JOIN POLITICO ON 2/9 TO HEAR FROM AMERICA’S GOVERNORS: In a divided Congress, more legislative and policy enforcement will shift to the states, meaning governors will take a leading role in setting the agenda for the nation. Join POLITICO on Thursday, Feb. 9 at World Wide Technology's D.C. Innovation Center for The Fifty: America's Governors, where we will examine where innovations are taking shape and new regulatory red lines, the future of reproductive health, and how climate change is being addressed across a series of one-on-one interviews. REGISTER HERE.     Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Declan Harty breaks down the potential legal backlash if the Securities and Exchange Commission's climate disclosure rule is not scaled back. electric future "Made in USA," reads a sticker on a piece of mining machinery. | Sean Gallup/Getty Images The White House on Wednesday released new details about standards that would require energy and infrastructure projects to be build with materials made in the U.S., writes Mike Lee. The proposed standards will replace temporary rules that have been in place since the bipartisan infrastructure law was enacted in 2021. The White House is seeking comments and guidance on how to best define "American-made," which is, perhaps surprisingly, a complex and controversial requirement. Power Centers President Joe Biden delivers his State of the Union address at the U.S. Capitol on Tuesday. | Francis Chung/POLITICO Change is a-comin' President Joe Biden, the first president who can rightfully claim a massive legislative victory on climate change, appeared to use his State of the Union address to preview a reelection campaign that will trumpet remarkable changes to the nation’s energy and transportation systems, write Scott Waldman and Adam Aton. But polls show a majority of Americans are unfamiliar with Biden's climate law. That means he'll not only have to battle it out with the Republican nominee, but also win over a public that sees his first two years in office as a failure. Missed opportunity? On Tuesday night, Biden also laid out a list of other policy priorities. But one item missing was a central ambition for many energy-focused lawmakers: permitting changes, write Jeremy Dillon, Emma Dumain and Kelsey Brugger. “It’s accepted across the aisle that permitting has to be done,” top Democratic lawmaker Sen. Joe Manchin of West Virginia told reporters. “It should have been mentioned. I would have liked to see that.” The stages of grief First came the shock. Then the outrage. Now, European countries seem to be moving toward acceptance of a massive U.S. clean energy subsidy package that has roiled transatlantic trade relations, write Gavin Bade and Doug Palmer. “It is not our intention — and has never been our intention — to change the American law,” French Finance Minister Bruno Le Maire told reporters. “We just want to ensure the implementation of the American law [is done with] full transparency.” in other news Report: Climate change is contributing to the spread of antibiotic-resistant "superbugs." Putin's war: Tensions with Russia are jeopardizing key Arctic research.   LISTEN TO POLITICO'S ENERGY PODCAST: Check out our daily five-minute brief on the latest energy and environmental politics and policy news. Don't miss out on the must-know stories, candid insights, and analysis from POLITICO's energy team. Listen today.     Subscriber Zone A showcase of some of our best subscriber content. Wind turbines turn on top of a dump next to the BP refinery in Germany. | AP Photo/Michael Sohn The oil giant BP announced that it would relax its emissions targets and backtrack on its plans to reduce oil production. Eugene became the first city in Oregon to prohibit fossil fuels in new residences this week, marking the spread of gas bans across the West Coast. Renewable energy and nuclear power will supply most of the new electricity to meet increasing global demand through 2025, slowing a recent trend of rising carbon dioxide pollution. That's it for today, folks! Thanks for reading.   Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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