On The Hill

European Commission’s Green Plan

The European Union (EU) announced Wednesday (Dec. 11) it’s executive arm will work to eliminate net discharges of greenhouse gasses by 2050. The package of proposed measures includes stricter limits for industry, energy taxes, new rules on subsidies for companies, greener farming practices, and a potential environmental import tax. The Green Deal also includes a plan to tighten the E.U. emission-reduction target for 2030 from the current 40% to 50% compared to 1990 levels. The precise goal for 2030 will be officially decided after an impact assessment is complete. Under the current package, the transition would start next year. “This is Europe’s man on the moon moment,” European Commission President Ursula von der Leyen told reporters in Brussels before detailing the plans. “I’m convinced the old growth model that is based on fossil fuels and pollution is out of date and out of touch with our planet.”^[1]  On Friday (Dec. 13), all 28 EU countries backed the mid-century target, but they had to create an exclusion for Poland. During the negotiations, Poland asked for two extra decades and support to reach the goal, due to their dependency on coal. The Commission will now be able to go ahead with its plan to put forward a climate law by March that would put the 2050 goal in legislation.^[2]  Some European countries are worried the plan to cut greenhouse gasses will put their companies at risk. Many are worried about leakage if manufacturers and businesses move their operations elsewhere.^[3]  The commission aims to propose an environmental import tax in 2021. This would be a border adjustment mechanism on selected sectors so European manufacturers have a level playing field with competitors based in countries without emission goals. Tariffs would likely be imposed on countries like the U.S., having failed to match Europe’s climate change policies. The communication also pledges to “make respect of the Paris Agreement an essential element for all future comprehensive trade agreements.” This is likely to create tensions with the U.S. if new trade talks begin.^[4] 

Energy and Commerce Republicans Focus on Innovation

On Monday (Dec. 10), House Energy and Commerce Republicans held an energy innovation showcase. This event featured displays from various companies and universities, and notably focused on emerging technologies like carbon capture and nuclear. The event follows new efforts towards a slate of 12 mostly bipartisan energy bills that could pass Congress next year. The 12 bill push is part of a larger effort by House Minority Leader Kevin McCarthy (R-CA) to develop market friendly climate policies. “Leader McCarthy has some other ideas he wants to obviously incorporate in,” E&C Ranking Member Greg Walden (R-OR) told reporters at the showcase event. “It will be his show, but as the Energy and Commerce Committee, we wanted to come forward with some ones we’ve vetted, that we think make good common sense and could actually become law.”^[5]  While House E&C Republicans are focusing on innovative technologies and low carbon fossil integrated solutions, Democrats are zeroing in on carbon pricing and top-down regulatory policies. Democrats believe the political landscape has ripened since Congress tried to pass major climate legislation 10 years ago, and that larger pricing proposals are possible. Walden said he rejects carbon pricing proposals, and noted that with research and development, consumers will drive down emissions on their own. Representative John Shimkus (R-IL) said a carbon pricing proposal would “not get over the finish line” and would be unpopular with the American public. This event helped solidify Republican’s energy innovation rhetoric, but many questions cloud the GOP’s climate policies moving forward, largely due to the retirements of Walden and Shimkus. 

Democrats Aren’t Done with PFAS

Negotiations over drinking water standards for PFAS substances are still being discussed by lawmakers for inclusion in the FY 2020 appropriations package. Originally, lawmakers had sought to move language requiring a drinking water limit as part of the National Defense Authorization Act (NDAA). Designating the chemicals as hazardous for Superfund cleanups was the most controversial provision. The EPA-Interior spending bill would likely be the vehicle for action. Senator Lisa Murkowski (R-AK) chairs the Interior-EPA panel, and said, “Is it an issue that Republicans and Democrats are concerned about? Yeah. Have we advanced different initiatives to address PFAS? Yes, we did that in the NDAA. There have been efforts in other legislation that will now become law. But I do think that there continues to be a heightened focus on what more we need to do, because this is a pretty widespread issue.”^[6]  Senator Tom Udall (D-NM) said language to set PFAS drinking water standards has a 50-50 chance of making it in the deal. Shimkus, Ranking Member on the Energy and Commerce Subcommittee on Environment and Climate Change, said that he is open to PFAS language as long as it is “structured properly.”^[7]  The Environmental Protection Agency (EPA) has recommended limiting total concentrations of PFOS and PFOA to 70 parts per trillion based on health considerations.

Energy Secretary Brouillette Speaks Before the National Petroleum Council

Newly-confirmed Energy Secretary Dan Brouillette gave his first public appearance before the National Petroleum Council. At the event, he said “certain bad actors” were thwarting access to fossil fuels by opposing oil and gas pipelines.^[8]  He also said that the U.S. has made major progress in the production of clean energy, but that the U.S. needs an all of the above approach to energy policy. Brouillette noted the importance of expanding the ability to get oil and gas to markets around the globe. He also said that states such as New York, which bans hydraulic fracturing, are cutting off entire regions from cheaper, American natural gas. Brouillette pledged innovation would help the U.S. adopt clean energy by driving down emissions while still using and producing various fuels. After the event, he told reporters that he would continue his predecessor’s efforts to champion liquefied natural gas. Brouillette additionally fired a “warning shot” at the European Union, warning against the carbon border tax being discussed as part of their new “Green Deal.” “We’re going to continue to promote U.S. energy throughout the world,” Brouillette said. “The president has said from the earliest days that energy security is national security.”

References

^[1] Krukowska, Ewa & Sterns, Jonathan. “Europe eyes ‘man on the moon moment’ with Green Deal plan.” ClimateWire, 12 Dec. 2019. https://www.eenews.net/climatewire/stories/1061786235/search?keyword=european+commission

^[2] Tamma, Paola. “Poland withholds EU-wide consensus on climate neutrality by 2050.” Politico Pro, 13 Dec. 2019. https://subscriber.politicopro.com/article/2019/12/poland-withholds-eu-wide-consensus-on-climate-neutrality-by-2050-1846931

^[3] Coleman, Zack. “EU threatens tariffs on U.S. to enforce climate rules.” Politico Pro, 12 Dec. 2019. https://subscriber.politicopro.com/article/2019/12/eu-threatens-tariffs-on-us-to-enforce-climate-rules-1842938

^[4] Tamma, Paola, Schaart, Eline & Gurzu, Anca. “Europe’s Green Deal plan unveiled.” Politico , 12 Dec. 2019. https://www.politico.eu/article/the-commissions-green-deal-plan-unveiled/

^[5] Sobczyk, Nick. “Republicans solidify energy innovation pitch.” E&E Daily, 10 Dec. 2019. https://www.eenews.net/eedaily/stories/1061770221/search?keyword=house+energy+and+commerce+republicans

^[6] Snider, Annie & Adragna, Anthony. “Senators still negotiating over PFAS drinking water limit on approps.” Politico Pro, 12 Dec. 2019. https://subscriber.politicopro.com/article/2019/12/senators-still-negotiating-over-pfas-drinking-water-limit-on-approps-1846091

^[7] Cahlink, George, Koss, Geof, & Sobczyk. “PFAS talks linger as spending deal comes together.” E&E Daily, 13 Dec. 2019. https://www.eenews.net/eedaily/stories/1061796677

^[8] Clark, Lesley. “Brouillette slams pipeline foes, N.Y.’s ‘extremist policies.’ EnergyWire, 13 Dec. 2019. https://www.eenews.net/energywire/stories/1061796517