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EXCLUSIVE: Republican Rep. Mike Lawler of New York and Democratic Rep. Elissa Slotkin of Michigan have introduced a measure that provides farmers with funding to reduce carbon emissions and nutrient pollution – a bill that already has a Senate companion, and could be considered in the upcoming farm bill.
The House measure, dubbed the “CROP for Farming Act” and first obtained by the Washington Examiner, would amend the Food Security Act of 1985 to expand access to funds for farmers looking to voluntarily reduce their emissions. The Environmental Quality Incentives Program, which falls under the decades-old law, pays farmers to plan and implement conservation projects – and under this bill, would make three agricultural practices eligible for federal funds: reducing nitrous oxide and methane emissions, and storing carbon in soil and plants. Read the bill here.
“As a member of the Conservative Climate Caucus and Co-Chair of the Appalachian Trail Caucus, ensuring that we preserve our environment for future generations is very important to me,” Lawler said in a written statement. “This legislation will help our farmers and incentivize innovative practices that ensure a cleaner, better future for everyone. That’s something we can all support, regardless of politics.”
According to an analysis from activist organization Environmental Working Group, total EQIP payments to farmers between 2017 and 2020 totaled more than $3.6 billion – but only 23% of payments went toward mitigating climate change. The offices cited this study in a fact sheet to explain that an expansion of the EQIP program would aid farmers in reducing agriculture-related emissions, and help the U.S. reach its climate goals by 2050.
The bipartisan measure has nearly 30 organizations endorsing the measure, including green groups such as Earthjustice and Evergreen Action.
Ranjani Prabhakar, a senior legislative representative at Earthjustice, said in a statement that the bill is “a pivotal step to extend a helping hand to farmers and empowering them to embrace regenerative practices and continue their legacy of sustainability.”
A companion in the Senate: The measure has already been introduced in the upper chamber, by Democratic Sen. Tom Carper of Delaware and GOP Sen. Mike Braun of Indiana.
Possible add to the farm bill? The bill could be an addition to the 2023 farm bill – a once-every-five-years package of farm and food provisions that touches on everything from subsidies for farmers to nutrition programs for low-income families. Although both chambers of the House and Senate are aiming to pass a package by the end of the year – which is when the bulk of the agriculture programs are set to lapse – lawmakers are still contemplating whether or not a one or two-year delay will be inevitable, with division in the GOP conference paralyzing day-to-day operations. Furthermore, looming funding deadlines are likely to crowd the schedule of both chambers.
Welcome to Daily on Energy, written by Washington Examiner Energy and Environment Writers Breanne Deppisch (@breanne_dep) and Nancy Vu (@NancyVu99). Email [email protected] or [email protected] for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
TREASURY TRIES TO TIGHTEN RUSSIAN PRICE CAP ENFORCEMENT: The Treasury Department announced new enforcement measures today aimed at strengthening the price cap on Russian oil, a first-of-its-kind punitive measure that comes amid reports that Moscow’s flagship Urals-grade crude is being sold at prices far higher than the $60 per barrel cap set by Western leaders.
Treasury’s Office of Foreign Assets Control said it is sanctioning two entities that have continued to transport Russian oil at prices above the capped price while using Western shipping services.
The two sanctioned companies are Lumber Marine, a UAE-based company that has continued to ferry Russian oil at prices at or above $75 per barrel, and the Turkish shipping company Ice Pearl Navigation, which is exporting Russian oil at prices above $80 per barrel.
Both ships, which conducted port calls in the Russian Federation, used U.S.-based service providers while transporting the Russian oil, according to Treasury officials.
The sanctions are the first time that the G-7-led oil price cap coalition has made good on its threat to punish entities that continue to defy the oil price cap—or the first-of-its-kind effort designed to slash Russia’s oil revenue while also keeping its barrels on the market. Read more from Breanne here.
FRANCE AND QATAR SECURE RECORD-LONG LNG IMPORT AGREEMENT: France’s TotaleEnergies signed a 27-year LNG import deal with Qatar, a move that will both help it ensure a reliable form of energy as the EU transitions off of Russian energy sources—but one that also extends its commitment to fossil fuels for several years beyond 2050.
Under the terms of the agreement, Qatar will supply France with up to 3.5 million tonnes of the chilled gas annually from 2026 to 2053. That’s the Gulf state’s longest-ever deal struck with a European buyer, according to the Financial Times.
The deal comes as EU member states have struggled to find adequate alternatives to Russian fossil fuels following its invasion of Ukraine—forcing them to buy record amounts of fuel off of LNG spot markets, where prices and global demand are often much higher.
Roughly 16% of French energy consumption comes from natural gas, according to FT—the lion’s share of which is used for household heating.
“These two new agreements we have signed with our partner TotalEnergies demonstrate our continued commitment to the European markets in general, and to the French market in particular, thus contributing to France’s energy security,” Saad Sherida Al-Kaabi, Qatar’s energy minister, said in a statement.
Major utility providers in Germany, which relied most heavily on Russian natural gas prior to its war in Ukraine, also recently struck a deal with Qatar to import 2 million tonnes of LNG annually, though for a comparably shorter period of 15 years.
IEA LOWERS OIL DEMAND GROWTH FORECAST, WIDENING GAP WITH OPEC: The International Energy Agency said today it predicts global oil demand will grow by just 880,000 bpd in 2024, down from its earlier projection of 1 million bpd—a change it said was driven by higher prices and progress on energy efficiency and EV adoption.
IEA said it is already seeing signs of oil demand destruction, entering a period of what the Paris-based agency said is “likely to be a permanent decline.”
“There has been some evidence of large-scale demand destruction, especially in lower-income countries like Nigeria, Pakistan and Egypt, and signs of accelerating declines within some OECD markets including the United States,” the IEA said in its monthly oil report. (This excludes major oil consumers such as China, India, and Brazil, which they said will continue to see solid demand growth in the year ahead.)
One (significant) caveat: The IEA noted a “sharp escalation in geopolitical risk” to oil supplies due to the Israel-Hamas war. It said that while supplies in the Middle East have not yet been affected, markets will “remain on tenterhooks” as the crisis continues. “The Middle East conflict is fraught with uncertainty and events are fast developing,” the IEA said in its report.
Still, its forecast contrasts significantly with that of the OPEC, which said today it is sticking to its oil demand forecast for 2024. That report estimates global demand to rise by 2.25 million bpd based on global economic growth and higher demand from China.
The cartel of oil-producing nations has consistently issued more bullish oil demand predictions than other groups, including IEA. “In 2024, solid global economic growth, amid continued improvements in China, is expected to further boost oil consumption,” OPEC said.
UAW ESCALATES WITH STRIKE AT MAJOR FORD TRUCK FACILITY IN KENTUCKY: UAW members began striking yesterday at Ford’s Kentucky Truck Plant, further escalating its nearly month-long standoff with the nation’s largest carmakers in a bid for larger wage hikes, cost of living increases, and other benefits for employees.
In total, 8,700 workers walked out of the Louisville factory Wednesday evening—the largest work stoppage since the start of the UAW strikes in September.
The Louisville factory, which produces Super Duty pickup trucks, Expeditions, and Lincoln Navigators, is also a major moneymaker for Ford, generating an estimated $25 billion a year in revenue, according to the WSJ.
“The decision by the UAW to call a strike at Ford’s Kentucky Truck Plant is grossly irresponsible but unsurprising given the union leadership’s stated strategy,” Ford said.
The news comes just one day before UAW President Shawn Fain is slated to update UAW members on the status of contract negotiations and potentially announce further walkouts.
“It’s time for a fair contract at Ford and the rest of the Big Three,” Fain said yesterday. “If they can’t understand that after four weeks, the 8,700 workers shutting down this extremely profitable plant will help them understand it.”
Ford’s latest proposal included a 23% general wage hike for employees, the highest offer yet, according to Fain—as well as cost-of-living adjustments and a plan to help part-time workers gain full-time status. Read more here.
The Rundown
Bloomberg Fear and anger follow the path of Joe Manchin’s Mountain Valley Pipeline
Financial Times The mystery of the Adani coal imports that quietly doubled in value
