1 big thing: Budget problem traps energy, climate money

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2. Cantwell's update on hydro permitting bill

3. Whitehouse weighs calling insurers to testify

4. Catch me up: Farm bill, plastics, ethanol

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🫠 Happy Thursday. Another week of Congress doing the people's business!

🎼 Today's last tune is from Rep. Paul Tonko: "We Are Family" by Sister Sledge.

🚨 Situational awareness: The White House unveiled its new plans for calculating the "social cost of carbon."

🗓 Because of Yom Kippur on Monday, you'll next hear from us on Tuesday ...   unless there's breaking news before then. (Always possible with this Congress.)

✅ Thank you for reading Axios Pro Policy, and thanks to editors Chuck McCutcheon and David Nather and copy editor Steven Patrick.

Energy Policy

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1 big thing: The GOP's social cost fight

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2. Clyburn's nuclear know-how

3. Catch me up: CR drama, CFATS and more

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😴 Hey, Wednesday warriors. Hope you weren't up late watching the House.

🎶 Today's last tune is one we all need this week from Sen. Ron Wyden: the theme from "Rocky."

1 big thing: Hydro hopefuls riding high

2. Edison International CEO talks transmission

3. Catch me up: Climate Corps, SEC, HFCs

🐪 Happy hump day. We're sorry, but we can't fix Congress for you. 

🎸 Today's last tune is from music lover Rep. Morgan Griffith: "The Last Farewell" by Roger Whittaker, who recently passed away. 

😊 Happy belated 30th birthday to the Congressional Western Caucus!

1 big thing: GOP eyes on Ford

2. For your radar: Grid, EPA and SEC oversight

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3. 1 fun thing: Lunch with a fusion lobbyist

💣 Shutdown watch: The mood is tense. We've been on some serious, serious reports, but nothing quite like this.

🚨 Join Tech Policy tomorrow at 8:15am ET for an event featuring discussions on broadband and how to reduce the digital divide. Guests include Sen. Ben Ray Luján. Register here to attend in person or virtually.

🎼 Today's last tune is from Rep. Lori Trahan: "... Ready For It?" by Taylor Swift. 

1 big thing: The coming solar tariff fights

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2. Q&A: Scott Peters on transmission bill future

3. Catch me up: FEMA, fungi and wind

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😴 It's Tuesday, and we're guessing you're already tired of the approps chaos. 

🎼 That's why today's last tune from Jael is engineered for calm: Tomberlin's "Any Other Way." Listen to her NPR Tiny Desk while you read. 

🚨 Situational awareness: The Council on Environmental Quality just unveiled new actions to speed up permitting for lower-carbon energy and transportation.

Welcome to another in our series of lunch conversations. This time, we grabbed fried chicken at Succotash with Trent Bauserman, federal affairs chief for Commonwealth Fusion Systems.

Why he matters: Bauserman is a top player in advocating policy for an emerging industry in the energy transition. Massachusetts-based startup Commonwealth aims to put fusion power on the grid by the early 2030s.

He spent almost two decades in public policy, most recently as Rep. Steny Hoyer's energy policy guru, where he played "air traffic control" (his words) on the IRA and other consequential energy legislation.

This conversation has been edited and condensed for clarity.

Can you describe your journey from the Hill to Commonwealth?

I felt like my time in public service was coming to an end … and I, through a long search, found my way to CFS.

If you would have told me two years ago I'd be working for a fusion company, I would have said, "That's nuts, what are you talking about?"

But I didn't appreciate at the time just how much progress had been happening in the sector. It is a really game-changing technology.

Yeah, I actually was pretty skeptical. When you're in public policy for so long, you get a pretty good B.S. detector, and one of my early questions to them was, "Why should I believe you?"

The more I got to know the team and understand the technological advances that have been happening sort of quietly and in the background, the more I came to realize there's something real here.

What are the big things you're watching right now?

We've passed a lot of the important authorization bills that our industry cares about. Notably, there's this milestone-based fusion program at the Department of Energy that was passed in the 2020 Energy Act.

In some ways, the building blocks are there, and really what's needed is a near-term commitment to fund some of the R&D challenges.

This past spring, the Nuclear Regulatory Commission voted unanimously to regulate commercial fusion under a totally different paradigm than fission. It means that we potentially have a much faster pathway to license our machines.

How has the climate movement changed since you started working on this?

There remains this tension between what the science is calling for and what our political system is allowing.

You have to find wins, bipartisan agreement, where you can find it, and when the stars align every decade or so for things like the IRA, you get everything you possibly can.

"Padam Padam" by Kylie Minogue – the song of the summer.

Lunch with a fusion lobbyist

Trent Bauserman is a top player in advocating policy for an emerging industry in the energy transition.

Nuclear fusion

Welcome to another in our series of lunch conversations. This time, we grabbed fried chicken at Succotash with Trent Bauserman, federal affairs chief for Commonwealth Fusion Systems.Why he matters: Bauserman is a top player in advocating policy for an emerging industry in the energy transition. <a class="gtmContentClick" data-vars-link-text="Massachusetts-based startup" data-vars-click-url="https://www.axios.com/2019/06/28/commercial-fusion-systems-nuclear-fusion-series-a" data-vars-content-id="077d15ea-ecfe-4543-ba55-1ef6020fa350" data-vars-headline="Lunch with a fusion lobbyist" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2019/06/28/commercial-fusion-systems-nuclear-fusion-series-a" target="_self">Massachusetts-based startup</a> Commonwealth aims to put fusion power on the grid by the early 2030s.<ul><li>He spent almost two decades in public policy, most recently as Rep. Steny Hoyer&#x27;s energy policy guru, where he played &quot;air traffic control&quot; (his words) on the IRA and other consequential energy legislation.</li></ul>This conversation has been edited and condensed for clarity.Can you describe your journey from the Hill to Commonwealth?I felt like my time in public service was coming to an end … and I, through a long search, found my way to CFS.<ul><li>If you would have told me two years ago I&#x27;d be working for a fusion company, I would have said, &quot;That&#x27;s nuts, what are you talking about?&quot;</li><li>But I didn&#x27;t appreciate at the time just how much progress had been happening in the sector. It is a really game-changing technology.</li></ul>Did it take some convincing?Yeah, I actually was pretty skeptical. When you&#x27;re in public policy for so long, you get a pretty good B.S. detector, and one of my early questions to them was, &quot;Why should I believe you?&quot;<ul><li>The more I got to know the team and understand the technological advances that have been happening sort of quietly and in the background, the more I came to realize there&#x27;s something real here.</li></ul>What are the big things you&#x27;re watching right now?We&#x27;ve passed a lot of the important authorization bills that our industry cares about. Notably, there&#x27;s this <a class="gtmContentClick" data-vars-link-text="milestone-based fusion program at the Department of Energy" data-vars-click-url="https://www.energy.gov/science/articles/department-energy-announces-50-million-milestone-based-fusion-development-program" data-vars-content-id="077d15ea-ecfe-4543-ba55-1ef6020fa350" data-vars-headline="Lunch with a fusion lobbyist" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.energy.gov/science/articles/department-energy-announces-50-million-milestone-based-fusion-development-program" target="_blank">milestone-based fusion program at the Department of Energy</a> that was passed in the 2020 Energy Act.<ul><li>In some ways, the building blocks are there, and really what&#x27;s needed is a near-term commitment to fund some of the R&amp;D challenges.</li><li>This past spring, the Nuclear Regulatory Commission voted unanimously to regulate commercial fusion under a totally different paradigm than fission. It means that we potentially have a much faster pathway to license our machines.</li></ul>How has the climate movement changed since you started working on this?There remains this tension between what the science is calling for and what our political system is allowing.<ul><li>You have to find wins, bipartisan agreement, where you can find it, and when the stars align every decade or so for things like the IRA, you get everything you possibly can.</li></ul>What&#x27;s the last song you listened to?&quot;Padam Padam&quot; by Kylie Minogue – <a class="gtmContentClick" data-vars-link-text="the song of the summer" data-vars-click-url="https://www.youtube.com/watch?v=p6Cnazi_Fi0" data-vars-content-id="077d15ea-ecfe-4543-ba55-1ef6020fa350" data-vars-headline="Lunch with a fusion lobbyist" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.youtube.com/watch?v=p6Cnazi_Fi0" target="_blank">the song of the summer</a>.

The Commerce Department has ended its investigation into Chinese solar panels — but the issue will continue to bubble up on Capitol Hill.

Why it matters: Concerns about Chinese-made panels are reverberating through IRA implementation and trade legislation.

What they're saying: "It's not going away," said Rep. Dan Kildee, who has led the pro-tariff charge.

"It really comes down to us playing the long game and not believing that we have to sacrifice a really important principle in the name of another."

Renewables trade groups are warning that the investigation — and tariffs, generally — could have disastrous implications for solar deployment.

"The renewables sector, like the rest of the global economy, has long developed a reliance on the global supply chain in response to the trade policies of both parties," ACORE CEO Greg Wetstone told Axios.

"And now we're caught in this policy whiplash where there's suddenly an expectation that we're going to be able to have a fully domestic supply chain."

Flashback: Commerce began the investigation last year, when U.S. company Auxin Solar alleged that Chinese companies were using four Southeast Asian countries to skirt U.S. tariffs.

The Biden administration issued a two-year waiver, essentially preempting the probe until June 2024. Both chambers took bipartisan votes to overturn the waiver, albeit without enough votes to overcome Biden's veto.

In a final report last month, Commerce found that five companies had indeed sent products through Cambodia, Malaysia, Thailand or Vietnam to evade tariffs. They'll face tariffs once the waiver expires.

What we're watching: Sherrod Brown and Todd Young have a bill — the Leveling the Playing Field 2.0 Act — that would strengthen Commerce's authority to conduct investigations and make them move more quickly.

It's got a House companion and a big group of bipartisan cosponsors, reflecting broader concerns about China's labor practices and its subsidies for the renewables sector.

"The question is finding a vehicle," Brown told Axios.

Business trade groups, including the U.S. Chamber and American Clean Power, signed onto a letter in July opposing it. They said the changes "would hit consumer goods, retail, auto and renewable energy sectors especially hard."

Zoom in: Kildee said he wants to see more aggressive tariff enforcement across the board.

Plus, manufacturers and their Hill backers are still grappling with how Treasury should implement the IRA's domestic content bonus, which offers an additional incentive for projects that use panels sourced in part from the U.S.

Tariff supporters, including Finance Chair Ron Wyden, want to see more stringent requirements for that bonus that reach deeper down the supply chain.

Our thought bubble: Because things are moving quickly, predictions about how tariffs will impact renewables deployment should be taken with a grain of salt.

The U.S. doesn't have much of a supply chain for the raw materials and base components of solar panels, but new manufacturing spurred by the IRA is coming online.

"The faster we can shift to domestic manufacturing, the less these issues are sort of life and death," Sen. Martin Heinrich told Axios.

The coming solar tariff fights

Concerns about Chinese-made panels are reverberating through IRA implementation and trade legislation.

Solar power

The Commerce Department has ended its investigation into Chinese solar panels — but the issue will continue to bubble up on Capitol Hill.Why it matters: Concerns about Chinese-made panels are reverberating through IRA implementation and trade legislation.

Edison International CEO Pedro Pizarro hopes Congress will do more on transmission siting and permitting.

Why it matters: Pizarro, recently elected chair of the Edison Electric Institute, is at the forefront of the investor-owned utility world at a critical time in the energy transition.

EEI recently named Dan Brouillette, President Trump's former energy secretary, its next president.

Power plant rules: Pizarro said some utility industry input was "reflected" in EPA's proposed power plant emissions rules, but he and EEI are critical of the agency's technological timelines.

"The reality is, you have a coal fleet that's required to keep communities powered today," he said. "There's a recognition that there's going to be a timeline for those plants."

But he doesn't think hydrogen and carbon capture — the technologies EPA is relying on to decarbonize fossil fuel-fired power plants — are ready for prime time.

"The rule basically assumes that it's all available and you could be implementing it in the next decade at a massive scale. We don't see that in the cards based on where the technology is today," he said.

Permitting plans: Pizarro called the National Environmental Policy Act tweaks that Congress made in the debt ceiling deal a "good start" on permitting.

Like others in industry, he wants time limits on judicial challenges.

"Given that today it takes 11 years to build a transmission line — and about two of that is construction — we need more help to make sure that we can flow these IRA and IIJA dollars into steel in the ground," he said.

Speaking of transmission: Pizarro sees Joe Manchin's permitting bill as a "starting point" on transmission legislation.

As Congress looks to speed up deployment, lawmakers should respect existing regional planning processes, he said.

"Making sure that whatever we have at the federal level ultimately takes into account and leverages those regional planning processes is really important," he said.

Industry views: Pizarro acknowledged that investor-owned utilities have different perspectives based on their market. But generally, he said they agree that the U.S. is going to need to build more long-distance transmission.

"We want to make sure that as an industry, we're not just saying what we don't like, but also coming up with good constructive ideas about things we can support."

Edison International CEO talks transmission

The new chair of the Edison Electric Institute is at the forefront of the investor-owned utility world at a critical time in the energy transition.

Electric grid

Edison International CEO Pedro Pizarro hopes Congress will do more on transmission siting and permitting.Why it matters: Pizarro, recently elected chair of the Edison Electric Institute, is at the forefront of the investor-owned utility world at a critical time in the energy transition.

Republicans are formulating a response to the Biden administration's expansion of a key climate metric, reviving a long-running political fight.

Why it matters: The social cost of greenhouse gases —which puts a price on each ton of climate pollution — affects agency actions across the government.

The congressional fight could affect legislative dealmaking, and previews how a Republican administration would likely dismantle clean procurement and greenhouse gas regulations.

Details: The White House announced last week it wants to use the metric in making federal purchasing decisions.

That would vastly expand its reach, defining how the federal government buys goods and services and potentially impacting environmental permitting and leasing decisions.

As Sen. Sheldon Whitehouse put it, "This is a very big deal."

But it's one of those sticky issues that could prevent a deal on permitting, or make an appropriations agreement more difficult.

"We've been in negotiations on water, and on roads and other kinds of infrastructure ... where we're specifically negotiating some of these things out," Sen. Shelley Moore Capito told Axios last night. "If we go down that road, we'll never get anything permitted."

Zoom in: House Republicans put a rider in their Interior-Environment spending bill that would ban virtually any use of the social cost of carbon and other greenhouse gases.

Capito's permitting bill, the RESTART Act, would prohibit any social cost estimate that raises energy costs or prolongs agency actions.

Sen. Kevin Cramer told Axios he'd consider filing an amicus brief if there's an opportunity in a GOP state lawsuit on the social cost of greenhouse gases.

It's also "not real clear yet" whether such a requirement could be repealed under the Congressional Review Act, Cramer said.

"I also know that those are the kinds of things that can make permitting reform pretty difficult," Cramer said. "Being realistic, it's probably hard to get 60 votes to stop it altogether."

Flashback: EPA has applied the social cost of carbon since the Obama administration to shape climate regulations.

The Trump administration shrank it drastically to less than $10 per ton to help justify less stringent greenhouse gas standards.

The Biden administration has been using $51 per ton on an interim basis, set by an Interagency Working Group.

The administration is expected to raise the number substantially, and it wants it to account for impacts decades in the future.

Of note: Capito and House E&C Chair Cathy McMorris Rodgers have sent a flurry of letters asking for information from the working group.

Capito said she's spoken to Richard Revesz, one of the architects of the Biden administration's social cost changes.

E&C spokesperson Sean Kelly told Axios that the issue is also a "longtime concern" for Rodgers and that the committee would "continue our oversight efforts to ensure the administration is held accountable for their abuses of power."

Our thought bubble: Lawmaker pressure matters, even if it doesn't immediately manifest in legislation.

Capito and CMR will be influential in charting regulatory policy if there's a Republican in the White House in 2025.

The GOP's social cost fight

The social cost of greenhouse gases — which puts a price on each ton of climate pollution — affects agency actions across the government.

Congress

Republicans are formulating a response to the Biden administration&#x27;s expansion of a key climate metric, reviving a long-running political fight.Why it matters: The social cost of greenhouse gases —which puts a price on each ton of climate pollution — affects agency actions across the government.<ul><li>The congressional fight could affect legislative dealmaking, and previews how a Republican administration would likely dismantle clean procurement and greenhouse gas regulations.</li></ul>Details: The <a class="gtmContentClick" data-vars-link-text="White House announced last week" data-vars-click-url="https://www.axios.com/2023/09/22/biden-social-cost-climate" data-vars-content-id="a0b4172c-7437-472a-a034-d649ae376227" data-vars-headline="The GOP&#x27;s social cost fight" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/09/22/biden-social-cost-climate" target="_self">White House announced last week</a> it wants to use the metric in making federal purchasing decisions.<ul><li>That would vastly expand its reach, defining how the federal government buys goods and services and potentially impacting environmental permitting and leasing decisions.</li><li>As Sen. Sheldon Whitehouse put it, &quot;This is a very big deal.&quot;</li><li>But it&#x27;s one of those sticky issues that could prevent a deal on permitting, or make an appropriations agreement more difficult.</li><li>&quot;We&#x27;ve been in negotiations on water, and on roads and other kinds of infrastructure ... where we&#x27;re specifically negotiating some of these things out,&quot; Sen. Shelley Moore Capito told Axios last night. &quot;If we go down that road, we&#x27;ll never get anything permitted.&quot;</li></ul>Zoom in: House Republicans put a rider in their Interior-Environment spending bill that would ban virtually any use of the social cost of carbon and other greenhouse gases.<ul><li>Capito&#x27;s permitting bill, <a class="gtmContentClick" data-vars-link-text="the RESTART Act" data-vars-click-url="https://www.axios.com/pro/energy-policy/2023/05/04/senate-gops-permits-marker" data-vars-content-id="a0b4172c-7437-472a-a034-d649ae376227" data-vars-headline="The GOP&#x27;s social cost fight" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/energy-policy/2023/05/04/senate-gops-permits-marker" target="_self">the RESTART Act</a>, would prohibit any social cost estimate that raises energy costs or prolongs agency actions.</li><li>Sen. Kevin Cramer told Axios he&#x27;d consider filing an amicus brief if there&#x27;s an opportunity in a GOP state lawsuit on the social cost of greenhouse gases.</li><li>It&#x27;s also &quot;not real clear yet&quot; whether such a requirement could be repealed under the Congressional Review Act, Cramer said.</li><li>&quot;I also know that those are the kinds of things that can make permitting reform pretty difficult,&quot; Cramer said. &quot;Being realistic, it&#x27;s probably hard to get 60 votes to stop it altogether.&quot;</li></ul>Flashback: EPA has applied the social cost of carbon since the Obama administration to shape climate regulations.<ul><li>The Trump administration shrank it drastically to less than $10 per ton to help justify less stringent greenhouse gas standards.</li><li>The Biden administration has been using $51 per ton on an interim basis, set by an Interagency Working Group.</li><li>The administration is expected to raise the number substantially, and it wants it to account for impacts decades in the future.</li></ul>Of note: Capito and House E&amp;C Chair Cathy McMorris Rodgers have sent a flurry of letters asking for information from the working group.<ul><li>Capito said she&#x27;s spoken to Richard Revesz, one of the architects of the Biden administration&#x27;s social cost changes.</li><li>E&amp;C spokesperson Sean Kelly told Axios that the issue is also a &quot;longtime concern&quot; for Rodgers and that the committee would &quot;continue our oversight efforts to ensure the administration is held accountable for their abuses of power.&quot;</li></ul>Our thought bubble: Lawmaker pressure matters, even if it doesn&#x27;t immediately manifest in legislation.<ul><li>Capito and CMR will be influential in charting regulatory policy if there&#x27;s a Republican in the White House in 2025.</li></ul>

Republicans are quietly shying away from targeting IRA money in the farm bill.

Why it matters: Congress is barreling toward the end-of-month farm bill deadline. This could smooth the path and — for now — protect the nearly $20 billion Democrats pumped into climate-related ag programs in the IRA.

Driving the news: With battles over appropriations and impeachment echoing across the Capitol grounds, GOP negotiators in both chambers stressed to us they want bipartisan agreement on their versions of the farm bill.

Moving those funds is "really not" a sticking point right now, Senate Ag ranking member John Boozman told Axios.

"There's all kinds of people who would like to do this or that," he said. But "I don't think there's any Democrats that are willing to use those dollars for anything else."

Then, Tuesday night, House Ag Chair Glenn Thompson told reporters he'd like to see IRA funds used differently, but doesn't "think it's a sticking point" in getting a farm bill done.

Thompson repeatedly emphasized he wants "bipartisan support in the committee to repurpose" the funds: "We'll see whether there is or not."

A House Ag spokesman declined to comment further on Republicans' plans.

Catch up quick: The IRA authorized $19.5 billion to farm conservation programs in a bid to promote "climate-smart agriculture" practices.

House Republicans previously said they were eyeing some of that money to help raise commodity reference prices so programs like crop insurance align with inflation.

Reality check: There's a "real commitment" in the Democratic caucus to protect the money as it's authorized, said Tina Smith, a Senate Ag Democrat who helped lead the push for the money.

"To the extent somebody might want to increase reference prices and do that by taking some of the money from climate-smart agriculture, we just won't support that," she told Axios.

Yes, but: We don't yet know if the hardliners who've derailed funding talks and other program reauthorizations could target the IRA, which was a conflict in the debt limit fight.

Plus, Boozman said it's a "red line" for him to make sure farmers don't have to meet climate-friendly standards to take advantage of USDA conservation programs.

What's next: They're not getting the farm bill done by Sept. 30, and pretty much everyone is eyeing December as the true deadline now.

Don't hold your breath on bill text, either: Thompson said he's waiting for the continuing resolution drama to subside before releasing his bill.

GOP steps back from IRA fight

This could smooth the path and — for now — protect the nearly $20 billion Democrats pumped into climate-related ag programs in the IRA.

Illustration of a steer in a pile of money with money in it's mouth

Agriculture

Republicans are quietly shying away from targeting IRA money in the farm bill.Why it matters: Congress is barreling toward the end-of-month farm bill deadline. This could smooth the path and — for now — protect the nearly $20 billion Democrats pumped into climate-related ag programs in the IRA.

Nick Sobczyk

Stories

The GOP's social cost fight

Lunch with a fusion lobbyist

Edison International CEO talks transmission

The coming solar tariff fights

GOP steps back from IRA fight

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Energy: 💵 Carbon cost politics

Energy: 👀 Eyes on Ford

💸 Climate money handcuffed

🌊 Hydro permitting watch

🌞 Solar fights continue