Old politics of climate change and fossil fuels invade pandemic response

The old bitter politics over climate change and the role of fossil fuels has invaded the congressional debate about the response to the coronavirus.

Republicans in recent months had been trying to close the gap with Democrats in supporting federal policies to address climate change.

But the parties have eschewed cooperation on these issues in the economic devastation from the pandemic, with Republicans from oil and gas states catering to their fossil fuel constituencies, while some Democrats seek to use the crisis as justification for measures to more proactively transition the economy to cleaner energy sources.

“Republicans are turning over every possible stone to help the fossil fuel industry, and Democrats are doing the same for clean energy,” said Paul Bledsoe, a policy adviser with the Progressive Policy Institute and former climate aide to President Bill Clinton. “Both sides have occasionally decried that tendency while their colleagues have indulged in it.”

Most recently, congressional Republicans have engaged in a pressure campaign against big U.S. banks that they say are discriminating against fossil fuel companies by limiting lending to oil, gas, and coal companies.

In a letter to President Trump, big-name Republicans such as Lisa Murkowski, chairman of the Energy and Natural Resources Committee, and John Barrasso, chairman of the Environment and Public Works Committee, expressed concern that fossil fuel companies suffering from the oil price crash won’t get a fair shake from banks distributing funding allocated by Congress in the CARES Act, the $2 trillion bipartisan economic relief bill enacted in March.

They say big banks should not be able to participate in loan programs such as the Paycheck Protection Program or Federal Reserve lending facilities if they decline funding for fossil fuel projects “in order to placate the environmental fringe.”

Critics of this campaign, including some centrist Republicans, are accusing the party of hypocrisy in pushing back against the decision-making of individual companies. “Republicans are showing an amazing capacity to make bad decisions right now,” Rep. Francis Rooney of Florida, a Republican who leads the House Climate Solutions Caucus, told the Washington Examiner. He called the campaign against banks “anti-Republican and interfering with the free market.”

After all, Republicans during the negotiations of the CARES Act had criticized Democrats for trying to impose their policy preferences on airlines by subjecting them to carbon restrictions in order to receive government aid. That measure, which Republicans equated with the “Green New Deal,” never made it into the final bill.

“It’s ironic for the supposed party of free markets to favor a socialist, government intervention to keep fossil fuels afloat,” Democratic Sen. Sheldon Whitehouse of Rhode Island told the Washington Examiner.

Dozens of Democrats, meanwhile, introduced legislation last week specifically aimed at excluding fossil fuel companies from receiving help in pandemic-relief programs. That would include the so-called Main Street loan program, for which the Trump administration recently expanded the eligibility in a way that benefits oil companies struggling from cheap prices and low demand.

“Republicans are reacting to the Left,” a House GOP aide told the Washington Examiner. “I haven’t seen the GOP push forward any type of anti-climate agenda in a proactive way. It’s all been reactive so far.”

Republicans are quick to cite a tweet last month from progressive Rep. Alexandria Ocasio-Cortez, cheering the unprecedented crash in oil prices resulting from the pandemic.

“You absolutely love to see it,” Ocasio-Cortez said, before deleting the tweet.

Republicans and Democrats have also fought over the proper role during the pandemic of federal electricity regulators tasked with reviewing fossil fuel infrastructure projects. Democrats have urged the Federal Energy Regulatory Agency to halt approvals of pipelines and natural gas export terminals, arguing the pandemic prevents the public from organizing against projects. Republican House members have called on the FERC to ignore Democratic requests for a moratorium on approvals.

Despite the rhetoric from both sides, there has been little policy implemented to help either the fossil fuel industry or wind or solar companies that have been harmed by the pandemic.

In fact, on the Democratic side, at least, the party’s leadership has signaled it is prioritizing immediate economic relief before moving to other issues such as clean energy and infrastructure.

House Speaker Nancy Pelosi unveiled a $3 trillion coronavirus relief package Tuesday that has no major provisions related to addressing climate change.

“The focus has got to be solving the COVID crisis because that means solving the economic crisis,” Bledsoe said. “Everything else is second tier. Both parties’ leadership is aware of that.”

Environmentalists and other advocacy groups don’t expect any actual climate or infrastructure-related policy to emerge until later this year at the earliest.

“Clean energy and climate are critical for our recovery, but we need to get to that point,” said Josh Freed, who runs the clean energy program at the center-left think tank Third Way.

Republicans agree.

“There will be no meaningful environmental bills passed in what’s left of the 116th Congress,” said former Republican Rep. Carlos Curbelo of Florida, who founded the Climate Solutions Caucus now led by Rooney.

In the meantime, expect plenty of political messaging. Don’t forget it’s an election year.

“Supporting constituents is paramount right now,” said Heather Reams, executive director of Citizens for Responsible Energy Solutions, a conservative climate and clean energy group. “We are going to see two different visions for two very different parties moving forward.”

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