March 20, 2024
🐪 It's Wednesday, and we still don't have approps bill text. Tick, tick, tick …
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🎶 Today's last tune is from Larry Selzer, CEO of the Conservation Fund: "Someday, Someday" by Pete Yorn.
1 big thing: Granholm's grab bag of updates
Photo illustration: Aïda Amer/Axios. Photo: Jim Watson-Pool/Getty Images
Energy Secretary Jennifer Granholm provided House appropriators today with timelines and key updates on nuclear fuel, hydrogen and transformers, Jael writes.
Why it matters: Her comments indicate how the administration will grapple with members' concerns about Russian uranium and the IRA.
Driving the news: Granholm told the Appropriations energy subcommittee that the administration would prefer to see a Russian enriched uranium ban enacted into law rather than done administratively.
- She explained that the FY2024 funding bill specifies that DOE cannot "repurpose" money from the civil nuclear credit program for HALEU until the supplies are banned from Russia.
- When subcommittee Chair Chuck Fleischmann said the law provided for administrative action as well as a law, Granholm said the administration is "concerned about the enduring nature" of an executive-only approach.
- "I strongly hope and encourage that Congress does that [ban] so that we can move with alacrity," she said.
Zoom in: Expect a final energy efficiency rule on distribution transformers to be released before June, Granholm said.
- The agency has been "working with industry" to respond to steel sector concerns, which Ranking Member Marcy Kaptur echoed.
- "Adjustments have been made," Granholm said.
What she's saying: Graham was tight-lipped on the administration's hydrogen tax credit implementation. But she hinted, during an exchange with top Approps Democrat Rosa DeLauro, that changes may be coming.
- DeLauro represents a state that is one of the most promising for hydrogen fuel cell development.
- "Some concerns [have been] raised that the guidance as proposed may inadvertently create a disincentive to use clean energy to produce hydrogen," DeLauro said of the administration's plan for the 45V tax credit.
Granholm parried the inquiry with a bland remark — but did imply a possible shift in implementation strategy: "I look forward to seeing the rule finalized in a way that ensures we have a clean hydrogen economy."
2. Biomass tax conundrum
Biomass wood pellets. Photo: Mehmet Emin Menguarslan/Anadolu Agency via Getty Images
Progressives want to prevent biomass companies from qualifying for the IRA's advanced energy tax credit, Nick writes.
Why it matters: Biomass' potential climate benefits have long been a subject of dispute among climate advocates, and Southern states produce lots of wood pellets for export.
Driving the news: Green groups and Hill Democrats are campaigning with the Biden administration to stop wood pellet companies from claiming the credit.
- Rep. Don Beyer led a letter to DOE and the IRS arguing that giving the industry the incentive would go against the administration's environmental justice commitments.
- "Industrial-scale wood bioenergy producers — which operate wood pellet mills in the U.S. Southeast and then export pellets to biomass power plants in Europe and Asia — do not meet our climate goals," the Democrats wrote.
- They pointed to Enviva, the world's largest wood pellet producer, which said last year it had applied for 48C (the company recently filed for bankruptcy).
What they're saying: "We've seen, in rural America, wood pellets leading to deforestation and hurting communities. That has given me concern," Rep. Ro Khanna, who signed the letter, told Nick.
- Danna Smith, executive director of the Dogwood Alliance, said she's seeing policymakers "actually take note of this industry.
- "I think this is a really opportune time for the administration to course-correct its position," she said.
The other side: Not all Democrats are on board with the anti-biomass push.
- Rep. Jared Huffman, for example, said he's not a biomass "purist" and that it "can be done in a way that's acceptable."
- Enviva and other biomass companies say they aim to displace fossil fuels, manage forests sustainably and help decarbonize tough sectors.
- Enviva and DOE, which administers the credit, didn't immediately respond to requests for comment.
What's next: We could see an announcement about who's getting the 48C credit as soon as March 31.
3. Capito backs car rule CRA push
Capito in January. Photo: Bill Clark/CQ-Roll Call via Getty Images
Senate EPW Ranking Member Shelley Moore Capito came out today in support of a GOP effort to void President Biden's new car emissions rule, Nick and Jael write.
Why it matters: The effort's gone from rank-and-file to committee leadership pretty quickly and is of rising importance to the GOP.
Catch up quick: Biden's final rules — which came out today — are another effort to appease business types while keeping climate activists happy.
- The new tailpipe standards would substantially curb vehicles' emissions of greenhouse gases, particulate matter (PM 2.5) and nitrogen oxides (NOx).
- We told you yesterday that Sens. Pete Ricketts and Dan Sullivan were planning to introduce a Congressional Review Act resolution against the rule.
What's happening: Capito put out a statement today saying she appreciates Ricketts and Sullivan leading the effort "to overturn this harmful rule."
What's next: Either the House Republican leadership schedules a vote, or senators somehow find a way to get the resolution onto the floor in their chamber.
4. Catch me up: Climate warnings and a FERC fight
Illustration: Tiffany Herring/Axios
⚡️ 1. Big suck for big data: Power-hungry data centers are all the rage at CERAWeek, our colleague Alan Neuhauser reports from Houston.
- "The urgency of demand growth is going to drive a ton of investment," Tim Heidel, CEO of power line startup Veir, told Axios.
🗣️ 2. FERC fight: Friends of the Earth is up with digital ads in Politico today asking the Senate to reject FERC pick David Rosner ahead of tomorrow's nomination hearing.
🚨 3. Off the charts: Top NASA official Gavin Schmidt says we need better data to track climate change after the 2023 heat spike "confounded climate scientists' predictive capabilities."
✅ Thank you for reading Axios Pro Policy, and thanks to editors Chuck McCutcheon and David Nather and copy editor Brad Bonhall.
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