Biden Hits Roadblocks on Path to Low-Carbon Economy

Business News/Analysis, Federal Agency/Executive Branch, Federal Litigation, Federal Regulation, Louisiana, Opinions, Policy, Texas, Washington, White House

June 18, 2021

Print This Article Share it With Friends

by James Osborne (Houston Chronicle) … The decision by a Louisiana federal judge Wednesday requiring the Department of Interior to end its pause on oil and gas leasing came as the administration’s plan to spend hundreds of billions of dollars on electric vehicle charging stations and tax credits was looking unlikely to make it into any bipartisan infrastructure package that might materialize.

And if the administration officials had any question about Republicans willingness to shift the nation away from fossil fuels, they only had to look to Texas where the Republican-controlled state government just passed a law limiting state entities including pension funds from investing with companies seeking to shift investment from fossil fuels.

…

Republicans have shifted away from their earlier questioning of climate change – pressured by increasing public awareness on the threat. But with former president Donald Trump, a vocal climate skeptic, still a powerful force in the party, most Republicans remain opposed to any action that would reduce demand for fossil fuels.

That remains especially true in energy-rich states such as Texas, where Biden’s efforts to address climate have met with not just resistance but disdain.

…

With few Republican allies on climate, Biden has been forced to rely on his presidential powers to make changes, namely the authority granted him under existing environmental and financial laws to tighten regulations and make life increasingly difficult on oil and other fossil fuel sectors.

A long list of options is at his disposal, such as tougher fuel-efficiency standards for new cars, new rules for corporate emissions reporting and tighter methane emissions regulations for oil and gas drilling – which industry now says it supports.

After Tuesday’s court ruling, however, it’s unclear how much leeway he’ll get from a court system that has become increasingly wary of executive authority as modern presidents have come to rely on that power over deal-making with Congress.

…

That leaves Biden no option but to work with Congress. Democrats and Republicans might be able to reach agreement on some policies such as tax credits for carbon capture and hydrogen energy, both viewed as critical technologies for the oil and gas industry in a low-carbon future.

…

Oil companies such as Exxon Mobil and some Republicans have argued for a carbon fee to provide economic incentives to cut emissions.

But the idea is a tough sell among most Republicans, to whom any whiff of a new tax is anathema, and some Democrats, who think more drastic action is needed. READ MORE

Refiners ramp up pressure on Biden for relief from high biofuels costs (Houston Chronicle)

Far left clean energy plans boost China, leave U.S. in the dust — China dominates all aspects of the electric vehicle market and supply chain (Washington Times)

Carbon Capture Could Prop Up Coal Plant in North Dakota (Our Daily Planet)

Carbon Tax, Beloved Policy to Fix Climate Change, Is Dead at 47: It reshaped how the world thought about climate change. But its prized trait—bloodless economic efficiency—won it few friends on the right or left. (The Atlantic)

Comments are closed.

Advanced BioFuels USA