The Rundown: DFC Reauthorization bill passes out of HFAC
ClearPath Action Rundown July 12th, 2024
Happy Friday!
1. Powering your energy career in Washington, D.C.
ClearPath’s Conservative Climate Leadership Program (CCLP) is excited to host, “Powering Your Energy Career: Connections and Conversations for Emerging Energy Professionals in Washington” on July 23.
CCLP was established to develop a pipeline of young conservatives who work on energy policy on Capitol Hill. This half-day professional development event includes great networking and:
Panel discussions;
Interactive workshop; and a
Fireside chat with representatives on Capitol Hill.
This educational opportunity is for early-career individuals interested in a career in energy policy. Please forward the invitation to any young professionals in your network who may be interested in attending.
Plug in: More information, as well as the RSVP form, can be found here.
2. HFAC prepares to reauthorize the DFC
The House Foreign Affairs Committee (HFAC) passed out of Committee legislation (H.R. 8926) that would reauthorize the International Development Finance Corporation (DFC), a key agency for supporting energy infrastructure projects aligned with U.S. economic development and national security interests.
The new legislation includes:
Increased maximum contingent liability cap to $120B;
Greater ability to make strategic investments in allied countries;
Dominion Energy announced steps for developing new nuclear reactors at its existing North Anna nuclear power plant in central Virginia. If built, this site would:
Take advantage of an existing license to build a third reactor at the site.
Add new, clean, reliable generation to the existing 2000MW which supplies electricity to 450,000 homes and accounts for 17% of Virginia’s electricity production.
What’s clear: Gov. Glenn Youngkin has prioritized bringing more nuclear power to the state since taking office in 2022. Virginia alone handles around 70% of U.S. internet traffic and Northern VA boasts well over 250 data centers, all requiring new power. Nuclear power accounts for over 30% of generation in the state, and new reactors can help meet demand growth.
4. Catch ClearPath Action at the RNC
ClearPath Action is heading to the Republican National Convention (RNC) in Milwaukee next week to continue sharing ways conservatives are leading on clean energy.
We are teaming up with the American Conservation Coalition (ACC), Conservative Climate Foundation (CCF) and Citizens for Responsible Energy Solutions (CRES) to host a reception.
Join us at the Conservative Climate Reception at the Mitchell Park Domes, featuring Representatives John Curtis (R-UT) and Mariannette Miller-Meeks (R-IA).
“The Energy and Commerce Committee has a rich history of advancing major bipartisan solutions, and I’m extremely proud that our years of hard work to strengthen American nuclear energy have paid off with this significant legislation that will improve energy reliability and reduce costs for American families and businesses,” said E&C Chair Rodgers.
“With the ADVANCE Act being signed into law, we secured a landmark win for the future of nuclear energy here in America,” said EPW Ranking Member Capito.
6. Big Tech & Energy Cos partnering on carbon reduction
Microsoft announced it will buy 500,000 metric tons of CO2 removal credits over six years from Occidental Petroleum’s direct air capture (DAC) subsidiary to offset its emissions.
What to know:
This is the largest single purchase of carbon removal credits to date.
Removals will happen at a DAC plant under construction in Texas.
Microsoft recently reported its emissions last year were 29.1% above 2020 levels.
What’s clear: Many companies, including Microsoft, are committing to net zero by 2030. In order to achieve this, many will need access to affordable, high-quality carbon removals to offset their remaining emissions. American innovation can both drive the deployment of these critical technologies and help the U.S. stay competitive in this emerging market.
Plug in: Federal innovation programs that bolster the supply of high-quality CDR while driving down costs are needed. Read more here.
7. Moves on enhancing carbon capture support
Calpine’s Baytown Carbon Capture and Storage Project, which will capture carbon from a natural gas plant, was awarded $12.5 million from the Department of Energy’s Office of Clean Energy Demonstrations (OCED) to begin the project.
This is the first project to be awarded funds through OCED’s Carbon Capture Demonstration Program, which received $2.5 billion in funding from the IIJA. Others under negotiation include:
Project Tundra in North Dakota for a coal plant and;
Sutter Decarbonization Project in California for a natural gas plant.
Plug in: To learn more about the importance of this program, cross-agency coordination, and removing permitting barriers for CCS infrastructure, check out this blog.
8. Diving deeper into NEPA litigation with Breakthrough
The Breakthrough Institute published a study, “Understanding NEPA Litigation,” with findings that indicate “NEPA litigation overwhelmingly functions as a form of delay, as most cases take years before courts ultimately rule in favor of the defending federal agency.”
Key takeaways from this report:
From 2013 to 2022, federal agencies won 79.6% of cases where permits were challenged.
On average, these legal challenges added 4.2 years to project implementation. That translates to higher financing costs, legal fees, and unnecessary red tape before projects can get started.
NGOs instigated 72% of the total challenges. Of those, just 10 organizations initiated 35% of all cases.
Plug in: Litigation reform can unlock energy project permits. ClearPath explored some of the ways Congress can accomplish this in a recent blog.
9. “Clean energy” is a political advantage
ClearPath Action’s annual clean energy issues poll tracking shows that voters want Congress to support clean energy innovation. The proof is in the primaries, where we have seen multiple Republican candidates who have championed clean energy innovation win their competitive primaries including:
John Curtis (R-UT)
Frank Lucas (R-OK)
Mariannette Miller-Meeks (R-IA)
Mike Simpson (R-ID)
Plug in: ClearPath Action’s nationwide polling is broken down by every Congressional district in an easy to navigate map here. It shows how voters in each district think about climate and clean energy. To schedule a polling or messaging briefing, contact Luke Bolar at bolar@clearpathaction.org.
10. ICYMI
The Supreme Court overturned the 40-year-old Chevron deference doctrine, returning the duty of statutory interpretation back to the courts, rather than deferring to executive branch agencies.
Google is shifting focus to higher-quality carbon removals to help catalyze the supply of those CDR solutions and reach net-zero by 2030.
That’s all from us. Thanks for reading and have a great weekend!
