Climate policies face more scrutiny
Now holding House, GOP could take aim at billions in Dems’ bill
WASHINGTON — In the months leading up to the midterm elections, Republicans in Congress promised to rein in President Joe Biden’s efforts to address climate change.
Now that they’ve won a majority in the House, they will have their chance to bring greater scrutiny to Biden’s climate policies, including hundreds of billions of dollars in climate spending under the Democrats’ Inflation Reduction Act. Speaking at the COP27 climate summit in Egypt last week, Rep. Dan Crenshaw, R-houston, argued that the United States should pursue “rational environmentalism” when it comes to climate policy.
“Radical environmentalism is what we mostly see,” he said. “And that perpetuates solutions that are downright scary and foolish. Let’s not lie to our children and scare them to death and tell them they’re going to burn alive because of (climate change).”
Crenshaw and other Republicans are looking for a more measured climate policy that allows for the continued use of oil and natural gas, energy sources that the U.S. has in abundance and that are critical to economies of states such as Texas. But with the White House and Senate still under Democratic control, Republicans’ opportunities to undo climate policies are limited.
The tax incentives and funding for clean energy that make up the Inflation Reduction Act have already been approved for many years to come, making the bill “very durable” against efforts to undermine it, said Matthew Davis, legislative director at the League of Conservation Voters, an environmental group.
Scott Segal, a Washington
energy attorney whose clients include oil and gas companies, agreed.
“The chances the Congress will repeal or do serious damage to (the Inflation Reduction Act) seems to be diminished considering the outcome of the election,” he said.
Exerting pressure
House Republicans, however, will have the opportunity to conduct oversight hearings on Biden’s climate policies and to bring more scrutiny on federal agencies. The Interior Department’s handling of offshore drilling permits for oil and gas in the Gulf of Mexico and Alaska is likely to attract a lot of attention from the GOP, after the Biden administration raised the possibility this year of halting leasing in years to come.
“We’re preparing for a greater regulatory approach from the administration,” said Frank Macchiarola, senior vice president at the American Petroleum Institute, the oil sector’s largest lobbying group. “We’re going to remain focused on greater access to oil and gas development.”
Republican scrutiny could also create problems for the Biden administration as it seeks to put billions of dollars into expanding clean energy manufacturing in the U.S. After the California solar manufacturer Solyndra declared bankruptcy in 2011, the Obama administration endured a series of damaging hearings over a $535 million federal loan extended to the startup.
And financial institutions looking to shift investment away from fossil fuels could also face greater scrutiny, said Brian Gardner, a policy strategist at Stifel, a St. Louis-based financial management company. Investors have pressed financial companies and investment funds to consider environmental, social and governance factors — known as ESG — as well as returns in deciding where to put their money.
“If you’re not aligned with the Republicans on ESG, woke capitalism, chances are you’re going to find yourself sitting in a hearing chamber,” Gardner said during a call with investors and media ahead of the election.
But how far Republicans will go in working to undermine Biden’s climate policies remains to be seen.
Texas wind, solar
Wind and solar energy have become big business in states such as Texas. And any effort to undo support for those industries under the Inflation Reduction Act could come with a political cost to Republicans.
“If I was in the Biden administration, it would be full force to get regulations out to implement (the Inflation Reduction Act), so politicians can see the evidence of growth in their states,” said Abigail Hopper, president of the Solar Energy Industries Association. “So much of what has to happen doesn’t necessarily involve Congress.”
Despite the Republican and Democratic parties’ differences on climate change, there is some agreement on the need to reform a federal permitting system that has made building long-distance power lines and natural gas pipelines increasingly difficult. With renewable energy and fossil fuel companies alike lobbying for change, there could be opportunity to reach a compromise on permitting over the next two years, Segal said.
“There’s a long tradition of energy and environment policy being adopted during divided government,” he said, citing Congress’ move to end a decades-long oil export ban in 2015. “Energy issues often have a regional component over and above the partisan politics.”