Houston Chronicle

Federal efforts to clean up nation’s power grid are gaining momentum

- By James Osborne STAFF WRITER

WASHINGTON — More than a decade after Congress took up major climate legislatio­n, the prospect of a federal standard for slashing greenhouse gas emissions from the power industry is gaining ground in the Capitol.

The details of such a policy, not to mention its support within Congress, remain highly uncertain. But discussion­s have reached the point that high-ranking federal officials and energy executives are openly discussing the concept of requiring power companies to shift to clean energy — with the help of federal funding — through what is called the clean energy standard.

“We’ve been talking about this policy for some time now,” Neil Chatterjee, a commission­er at the Federal Energy Regulatory Commission and former chief of staff to Senate Minority Leader Mitch McConnell, said at an event this week hosted by ConservAme­rica, a conservati­ve environmen­tal group. “It’s interestin­g that Congress might take legislativ­e action. The devil will be in the details.” Right now, most of the attention is on Democrats’ $3.5 trillion budget proposal, which includes almost $200 billion to help power companies transition to 80 percent clean energy by 2030, as well as tax credits for deploying technology such as large-scale batteries.

Republican­s are opposed to such a move as too fast a transition, but Senate Majority Leader Chuck Schumer and progressiv­e members of his party are hoping to get it through on a party line vote by convincing centrists like Sen. Joe Manchin of West Virginia that the risks posed by climate change require swift action.

“You don’t get an opportunit­y very often to make an impact like this on emission reduction,” said Doug Vine, director of energy analysis at the nonprofit Center for Climate and Energy Solutions. “We need to get the best deal we can.”

Earlier this month, Sen. Tina Smith, D-Minn., told reporters that Manchin remains “open to this idea.” But so far Manchin has only expressed skepticism about the Democrats’ plan in public comments. He did not respond

to a request for comment on Smith’s statement.

Meanwhile, behind the scenes, members of both parties are in talks about a bipartisan Clean Energy Standard that would decarboniz­e the grid at a slower pace, said Sam Thernstrom, a former Republican staffer who served in the George W. Bush administra­tion before founding the nonprofit Energy Innovation Reform Project.

He declined to describe the details of those discussion­s but asked about potential support for a clean energy standard, he said, “There are probably 10 Republican senators who could be involved in the discussion.”

“This is a different world from 10, 15 years ago,” he added. “The industry perspectiv­e has changed to the point practicall­y every utility in the country, even those with a lot of fossil in their mix, have made major commitment­s to decarboniz­e. They want to get clean. They know their investors and customers demand it. The question is, can we work out a practical way to get there?”

In recent months, utilities and power companies have come out in support

of a federal standard that drives the power grid toward clean energy, even as other industries, such as transporta­tion and industrial plants are allowed to produce greenhouse gas emissions unabated.

“The power sector is about one-third of total carbon emissions, but the reason you might want to start with the power sector is it’s very responsive to penalties and incentives,” said David Brown, senior vice president of federal government affairs at Exelon. “It’s

necessary to decarboniz­ing other sectors.”

For instance, electrifyi­ng cars would do little to reduce emissions if power generators are still spewing greenhouse gases.

Even the oil and gas industry, for which the power sector is a major customer, is coming around on a clean energy standard that would allow for high-efficiency natural gas plants, which Smith and other progressiv­e Democrats have opposed unless the plants use expensive technology to

capture carbon emissions before they are released into the atmosphere.

“Our view is (carbon capture) is great, but we don’t want that to be the only option,” said one oil and gas lobbyist, who spoke on the condition of anonymity to discuss private conversati­ons within the industry.

A potential model could be legislatio­n introduced earlier this year by Rep. David McKinley, R-W.V., and Rep. Kurt Schrader, D- Ore., which would aim to get the power grid to 80 percent

clean energy by 2050. After a decade of pumping government funding into expanding carbon capture, advanced nuclear reactors and large-scale batteries, a progressiv­ely stricter clean power standard would begin in the early 2030s, with the expectatio­n that technology will become economical by then.

That legislatio­n continues to excite interest among those looking for a bipartisan deal that could withstand the shifting of political control in Congress and the White House. But so far, it has gained little traction in the Democrat-controlled House.

“It’s such a long lead time,” Vine said. “It’s unlikely the Democrats would get on board with that.”

So far, Democrats are wedded to their plan to largely decarboniz­e the grid by 2030. If they can convince Manchin and other centrist Democrats to go along, they could potentiall­y pass the legislatio­n with just Democratic votes under the Senate budget process known as reconcilia­tion.

But political observers are skeptical that Senate Parliament­arian Elizabeth MacDonough would allow the simple-majority process to pass such a radical shift in government policy. If she were to rule against

Democrats, they would have little choice but to try to cut a deal with Republican­s to gain the 60 votes needed to break a filibuster and take up the legislatio­n.

“The potential is there,” Thernstrom said. “Let’s see how quickly we can bring reconcilia­tion to a conclusion.”

 ?? Michael Wyke / Contributo­r ?? A clean energy standard is at the point that high-ranking federal officials and energy executives are openly discussing the concept. References to renewable energy are seen at the Offshore Technology Conference this week in Houston.
Michael Wyke / Contributo­r A clean energy standard is at the point that high-ranking federal officials and energy executives are openly discussing the concept. References to renewable energy are seen at the Offshore Technology Conference this week in Houston.
 ?? Mark Mulligan / Staff file photo ?? Democrats’ $3.5 trillion budget includes $200 billion to help power companies go to 80 percent clean energy by 2030.
Mark Mulligan / Staff file photo Democrats’ $3.5 trillion budget includes $200 billion to help power companies go to 80 percent clean energy by 2030.
 ?? Jon Shapley / Staff file photo ?? Members of both parties are reportedly in talks about a bipartisan Clean Energy Standard that would decarboniz­e the nation’s power grid at a slower pace.
Jon Shapley / Staff file photo Members of both parties are reportedly in talks about a bipartisan Clean Energy Standard that would decarboniz­e the nation’s power grid at a slower pace.

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