THIS AFTERNOON’S VOTE: The Senate is set to vote on a disapproval resolution overturning a Transportation Department rule requiring states to measure and set goals for reducing carbon emissions from cars and trucks on the road – and at least one Democrat is on board with Republicans to pass the measure.
Republican Sens. Kevin Cramer and Shelley Moore Capito and Democratic Sen. Joe Manchin, along with GOP Reps. Rick Crawford and Sam Graves, introduced a bipartisan resolution under the Congressional Review Act to block the rule, arguing that the policy is an overreach from the Biden administration and would saddle states with “burdensome and unlawful requirements.”
“New York and North Dakota have very different transportation systems, needs, and capabilities, but under this one-size-fits-all mandate, they’re effectively treated the same,” Cramer, the ranking member of the Senate Environment and Public Works Subcommittee on Transportation and Infrastructure, said in a statement in February.
More about that rule: The rule, finalized by the Federal Highway Administration in November, establishes a method for the agency to measure and report greenhouse gas emissions from vehicles. It also requires state DOTs and local planning organizations to establish carbon targets and report on progress towards meeting those goals.
What the rule doesn’t do: The rule doesn’t mandate how low the targets should be – but rather that states have targets. Local authorities are provided the flexibility to set their own goals that are appropriate for their own communities’ climate change priorities, “as long as the targets aim to reduce emissions over time.” However, it’s ultimately up to the FHWA to assess if state DOTs have made significant progress toward achieving their targets.
In defense of the rule: In a blog post defending the rule, the Natural Resources Defense Council pushed back against claims made by Republicans, emphasizing the flexibility that states are given in implementing the policy, and asserting that the administration does have the authority to impose GHG emissions performance measures. The group also pushed back on the claim that the rule would undermine state economies, arguing that compliance costs associated with the policy are projected to be “minimal” considering that states have the tools they need to set targets and track progress.
Senate math: All 49 Republicans in the Senate cosponsored the resolution. Assuming that all Republicans vote to overturn the rule, along with Manchin, the measure would still be defeated at a tie vote – or can be defeated if Vice President Kamala Harris breaks the tie. But, the measure can pass if at least one more Democrat votes with Republicans. Be on the lookout for more Democrats who cross the aisle to vote for the CRA.
The W.H. response: The White House has not issued a statement of administrative policy on the CRA, but it’s unlikely they would overturn their own policy.
A fight in the courts: A Texas judge struck down the climate rule last month, arguing it was not within the agency’s legal authority. In a separate case in which 21 GOP-led states sued the Federal Highway Administration and others, a federal judge in Kentucky ruled the policy was unlawful, but declined to vacate it.
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ICYMI: EPA LIMITS ‘FOREVER CHEMICALS’ IN DRINKING WATER: The EPA issued a final regulation limiting the amount of per- and polyfluoroalkyl substances, or “forever chemicals,” for drinking water.
The National Primary Drinking Water Regulation sets legally-enforceable levels for six types of PFAS compounds. Under the new rule, EPA officials said, public water systems will have three years to complete initial monitoring for PFAS contamination. Any public water systems whose PFAS levels exceed the maximum contaminant level, or MCL, will be required to implement solutions to reduce PFAS in their drinking water within five years.
EPA officials said the rule will help reduce PFAS exposure for roughly 100 million people, and said it will “prevent thousands of deaths, and reduce tens of thousands of serious illnesses” across the country.
PFAS chemicals have been used for decades in the U.S. to produce everything from nonstick cookware to personal care products. But they are nearly impossible to break down naturally— earning them the nickname “forever chemicals.”
PFAS exposure is also linked to a long list of health issues, including reproductive problems, developmental delays for children, and certain types of cancers and liver and heart problems in adults.
“Drinking water contaminated with PFAS has plagued communities across this country for too long,” EPA Administrator Michael Regan said in a statement.
Next steps: The EPA expects between 6% and 10% of the 66,000 public drinking water systems will need to take action to comply with the new PFAS regulations.
To help ensure the changes are made, the EPA also announced $1 billion in Bipartisan Infrastructure Law funds to help states and territories implement PFAS testing and treat any contaminants.
ELECTRIC UTILITIES BRACE FOR DEMAND SURGE FROM DATA CENTERS: The power grid is struggling to keep up with a rapid increase in data centers, prompting many utilities to adjust their demand forecasts in some cases several times as high as earlier estimates.
According to a Reuters analysis, nine of the top 10 electric utilities have cited data centers as a primary source of growth in the first three months of 2024, compared to the same period last year, when it was mentioned by just two utility providers.
Utility provider Southern Co. said it now expects data centers to drive 6% growth each year between 2025-2028, more than doubling its 2023 prediction, and Arizona’s largest utility has predicted it will run out of transmission capacity before 2030 unless major changes are made.
McKinsey now predicts power demand from U.S. data centers to reach 50 GW by 2030, up from 21 GW in 2023—and a major upward revision from its 2023 projection, which forecasted just 35 GW of demand by the end of the decade.
What’s driving the increase? Artificial intelligence, which requires a significant amount of computing infrastructure, has been a major factor behind the increase in expected data center growth, though the push toward electrification—including the build-out of fast-charging stations and other EV infrastructure—has also been a factor.
Combined, the new forecasts have raised concerns that utilities will not be adequately prepared to meet the demand, at a time when power grids are already struggling to meet capacity and bring new transmission projects online.
“What we’re seeing in the market is that these projects are not coming online fast enough to meet the local demand for the data centers,” Rystad Energy analyst Geoff Hebertson told Reuters.
LNG A FOCUS FOR KISHIDA AS HE MEETS WITH BIDEN IN WASHINGTON: Japanese Prime Minister Fumio Kishida will meet with President Joe Biden today in Washington. The two leaders are expected to discuss LNG supplies and supply concerns following the Biden administration’s decision to pause approvals on new export terminals.
Ahead of his meeting with Biden, Kishida met with the U.S. Chamber of Commerce’s U.S.-Japan Business Council. According to a readout of the meeting, participants discussed energy security issues, and “emphasized the importance of U.S. LNG exports to Japan and other countries.”
Why it matters: Japan relies heavily on energy imports to power its country, including from the U.S. LNG currently makes up one-third of its power generation, and it has signed contracts with exporters in the U.S. to build out capacity for roughly 2 million tons of new supply annually—which could be threatened as a result of the pause.
Leaders have also been fairly vocal in outlining their concerns about a U.S. pause: In January, Japan’s industry minister, Ken Saito, said that while the pause does not affect near-term LNG supplies, Japan remains concerned that “the temporary suspension of export permits will delay the start of new LNG production from the U.S.”
“We would like to carefully examine the medium to long-term impact of the issue and take necessary steps to ensure that Japan’s stable energy supply is not compromised,” Saito said at the time.
AN AMICUS BRIEF ON GOOD NEIGHBOR RULE: A number of Republicans filed an amicus brief Tuesday challenging the EPA’s finalized “Good Neighbor rule” that would regulate pollution from power plants and facilities across the country – arguing that it targets American power production while saddling states with burdensome air regulations.
Led by EPW Chairwoman Sen. Shelley Moore Capito, Sen. Roger Wicker, and House Energy and Commerce Committee Chairwoman Rep. Cathy McMorris Rodgers, more than 44 lawmakers filed an amicus brief in support of the petitioners suing the EPA over its finalized rule. The lawmakers argue that the rule oversteps the agency’s authority and would force power plants to prematurely retire.
A key passage: “EPA’s overreach is consequential. At a time of great pressure on power generation and the electrical grid, the maintenance of dispatchable generation capacity is an important component of adequate and reliable electricity, which affects daily life in nearly every sector of the economy throughout the country. The rapid shuttering of power plants under EPA’s plan could lead to blackouts and energy shortages. The Rule also expands beyond power generation to other sectors, potentially inhibiting the natural gas supply network and other industrial activity.”
The amicus brief was filed in the U.S. Court of Appeals for the D.C. Circuit, in support of a lawsuit filed by Utah Gov. Spencer Cox and Attorney General Sean Reyes. A federal appeals court sided with the Biden administration last September in the Utah case, but the state has filed a petition for the Supreme Court to intervene.
RUNDOWN
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