Friday, August 16, 2024

Georgia is having an EV identity crisis

Presented by Equinor: Your guide to the political forces shaping the energy transformation
Aug 16, 2024 View in browser
 
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By David Ferris

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Don Francis waves a “Trump 2024” flag in the driveway of his home next to two electric vehicles.

Don Francis, president of the EV Club of the South and longtime EV charging leader, waves a “Trump 2024” flag in the driveway of his home in Decatur, Georgia, on May 15. | Photos by Audra Melton for POLITICO

Georgia is suffering from divided loyalties on electric vehicles, I write today.

On one hand, its lawmakers and economic-development types are thrilled to have garnered almost $25 billion — more than any other state — to build battery and EV factories. They could employ tens of thousands and fulfill Republican Gov. Brian Kemp’s goal of making Georgia an “electric mobility capital.”

On the other, many voters and state lawmakers don’t like or want EVs. Few people outside of Atlanta drive them. State legislators have put up barriers to Georgians owning EVs because they consider the technology a creation of overreaching California regulators, designed to address climate change, which many there still think is an overblown problem.

“On the political level, that’s the really fascinating tension,” said Stan Cross, the director of electric transportation at the nonprofit Southern Alliance for Clean Energy. “That tension between wanting all of this benefit from jobs and investment, without celebrating the end product created.”

Dwell for a moment on how unusual this all is.

Americans are usually the first to embrace a new technology, especially when it offers economic opportunity and jobs. But in Georgia and much of the South — where the lion’s share of America’s EV investment is going — even that opportunity isn’t yet overcoming the deep skepticism.

These conflicting impulses have consequences for both political parties.

For Democrats, it means that President Joe Biden — and now his anointed heir, Vice President Kamala Harris — are having difficulty turning their legislative victories into votes in this crucial swing state. After all, it is the Inflation Reduction Act, Biden’s landmark legislative achievement, that accelerated Georgia’s EV transition.

It also puts Georgia Republicans in a state of perpetual awkwardness. They simultaneously want to celebrate the jobs that they helped land, by offering EV makers big incentives and out-hustling other states, while not celebrating the fruit of the factories. And they have to avoid the fact that some of the credit belongs to Democrats.

This job isn’t made any easier by former President Donald Trump, who has a personal animus toward the EV and criticizes its capabilities constantly, even if he has recently softened his language upon receiving an endorsement from Tesla CEO Elon Musk. (Trump created other complications for Georgia’s GOP a few weeks ago when he called Kemp "a very average governor.”)

So in short, the Georgia EV has led Republicans and Democrats into a tricky thicket. Only time will tell if one or the other can eventually use it to their advantage.

 

It's Friday — thank you for tuning in to POLITICO's Power Switch. I'm your host, David Ferris, with help from Nicole Norman. 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.

 

A YEAR OF CALIFORNIA CLIMATE: A year ago, the California Climate newsletter was created with a goal in mind — to be your go-to source for cutting-edge climate policy reporting in the Golden State. From covering Gov. Newsom's crucial China trip to leading the coverage on California's efforts to Trump-proof its climate policies, we've been at the forefront of the climate conversation. Join us for year two if you haven’t already, subscribe now.

 
 
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Today in POLITICO Energy’s podcast: Josh Siegel speaks with Oklo CEO Jake DeWitte, whose company is working to build its first small nuclear reactor.

 

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At Equinor, we never stop searching for better. We’re producing the energy the world needs today while developing innovative solutions for a lower carbon tomorrow. The work we’re doing to harness American energy resources, from oil and gas to offshore wind and low carbon fuels like hydrogen, can help us deliver a safe, reliable, and sustainable energy future. Discover more about Equinor at www.equinor.com/USA.

 
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Workers prepare for next week's Democratic National Convention at the United Center in Chicago.

Workers on Thursday prepare for next week's Democratic National Convention at the United Center in Chicago. | J. Scott Applewhite/AP

Green groups ready to press their case at DNC

Environmental advocates and politicians will arrive in Chicago next week for the Democratic National Convention ready to make their case for what they see as a high-stakes fight to slow down climate change, writes Emma Dumain.

A portion of one evening is expected to be dedicated to climate messaging, a source familiar with convention planning told E&E News. Expect to see advocates and Cabinet officials boast about Biden’s climate accomplishments.

Chicago will also host a slew of green groups and renewable energy leaders who will make their case about the importance of climate change and clean energy policies in this election.

“We can’t afford to put climate deniers back in the White House … people who are not just ignoring the reality of the climate crisis — not just denying it — but are actively trying to make it worse," said Michelle Deatrick, chair of the Democratic National Committee's Council on the Environment and Climate Crisis.

Wealthy homeowners score big with residential energy credit

Wealthy homeowners are taking advantage of a Biden energy tax credit program at much higher rates than low-income homeowners, writes Thomas Frank in a new analysis by POLITICO's E&E News.

This residential energy credit, meant to increase a home’s efficiency and cut its bills and emissions, doled out $8.4 billion in credits, with the average credit being $1,100. However, the amount that went to people with larger incomes was much higher.

“It runs the risk of making climate policy less accepted by the public because people will say, 'This is running up a big bill and is costing much more than expected,'” said Sanjay Patnaik, director of Brookings’ Center on Regulation and Markets.

The analysis found that $2.2 billion in tax credits went to households earning $200,000 or more, while just $32 million went to households making $25,000 or less a year.

 

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Baah-ming business: JR Howard, the founder of Texas Solar Sheep, has gone from 400 to 10,000 sheep deployed on solar sites to manage vegetation.

Messy: More than two dozen new Cybertruck owners say their vehicles were dirty inside and out when they were delivered.

 

A message from Equinor:

Our world needs energy to keep moving forward, and we all have a role to play. At Equinor, we never stop searching for better, producing the energy the world needs today while developing innovative solutions for a lower carbon tomorrow. We’re using our competence, skills, and innovative spirit to continually search for better solutions. Our ambition is to break through barriers, create lasting value for all our stakeholders, and supply energy to a thriving world while achieving net zero emissions by 2050. The work we’re doing to harness American energy resources, from oil and gas to offshore wind and low carbon fuels like hydrogen, can help us deliver a safe, reliable, and sustainable energy future. But this is only the beginning. Discover more about Equinor at www.equinor.com/USA

 
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EPA Administrator Michael Regan testifies July 10 before the House Oversight and Accountability Committee. | Francis Chung/POLITICO

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That's it for today, folks. Thanks for reading, and have a great weekend!

 

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