Overnight Energy & Environment

Energy & Environment — Intercontinental energy fight heats up

by Rachel Frazin and Zack Budryk 05/20/22 07:04 PM ET

The Hill illustration, Madeline Monroe/Getty images

An energy fight stemming from Russia's war in Ukraine is ramping up, and some Congressional Democrats are warning that Europe’s natural gas plans may hinder renewable goals.

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Russia, Europe escalate energy showdown

Russia and the West are engaging in an escalating energy sparring match as European countries seek to limit their dependence on the Kremlin because of its invasion of Ukraine.

The latest development, on Friday, came as it was announced that Russia will cut off natural gas to Finland.

Previously, members of the Group of Seven (G-7) said this month that they’d phase out Russian oil, while the European Union is separately weighing its own Russian oil ban.

Where does that leave both sides? Experts say that the West’s energy efforts are likely to damage Russia’s economy, but will come at a cost.

“There are no winners in this situation,” said Samantha Gross, who worked in international affairs at the Energy Department during the Obama administration.

“What you’re seeing is the Europeans looking to embargo Russian oil to punish the Russians, whereas the Russians are pulling back on supplies of gas to punish the Europeans because those are the fuels in which each has the upper hand,” Gross, who is now the director of the Brookings Institution’s Energy Security and Climate Initiative, added.

At the start of the conflict, Western countries made moves to curb their dependence on Russian fuels, which are the country’s biggest export.

The plot thickens: Western countries have stepped up those moves. The EU proposed banning Russian oil and the G-7 also said recently that it would phase out Russian oil.

But it’s unclear whether the EU push will be successful, as it faces resistance from Hungary. EU sanctions require the agreement of all member nations.

Russia cut off natural gas exports to Poland and Bulgaria late last month after the EU’s proposal.

More recently, Russian power provider RAO Nordic Oy stopped sending electricity to Finland. Russia claimed the country wasn’t paying its bills, but the move came as Finland asked for membership in NATO.

And on Friday, Finnish energy company Gasum said it had been notified by the Russian energy giant Gazprom that it would shut off its supply of gas the next day.

Dems express skepticism of EU gas plans

Twenty-two congressional Democrats on Thursday urged caution over the European Union’s plan to replace fossil fuel imports from Russia with liquefied natural gas (LNG) infrastructure.

In a letter to President Biden and European Commission President Ursula von der Leyen, the members warned that the transition must incorporate the goals of the Paris Climate Agreement. The letter came shortly after the EU announced a plan to replace the energy that it would normally import from Russia, including with 50 billion cubic meters of LNG from suppliers including the U.S.

What they’re saying: “While the Joint Statement included specific details for natural gas, it did not contain such specificity for developing clean, renewable energy. The Task Force must develop a plan to swiftly move the European Union and United States off fossil fuels and onto clean, renewable energy by 2035,” the members wrote. “It is critically important that our countries not lock ourselves into decades of further reliance on fossil fuels when climate science, environmental justice, and public health concerns necessitate a rapid transition towards full renewable energy.”

Infrastructure build outs for LNG, they noted, can take three years or more, potentially diverting resources from the transition to renewables at a critical moment. In the meantime, the letter cited analysis indicating the EU could replace two-thirds of Russian gas imports with renewables in less time.

The letter was led by Sen. Jeff Merkley (D-Ore.) and Rep. Jared Huffman (D-Calif.).

Senators who signed: Bernie Sanders (I-Vt.), Elizabeth Warren (D-Mass.) and Ed Markey (D-Mass.). House members who signed: Jerry Nadler (D-N.Y.), Alexandria Ocasio-Cortez (D-N.Y.), Andy Levin (D-Mich.), Mark Takano (D-Calif.), Donald Payne (D-N.J.), Dina Titus (D-Nev.), Jesus Garcia (D-Ill.), Jamaal Bowman (D-N.Y.), Pramila Jayapal (D-Wash.), Alan Lowenthal (D-Calif.), Jamie Raskin (D-Md.), Nanette Diaz Barragán (D-Calif.), Ilhan Omar (D-Minn.), James McGovern (D-Mass.), Alma Adams (D-N.C.) and Del. Eleanor Holmes-Norton (D-D.C.).

Biden to kick off cleaner school bus program

The Biden administration is kicking off a program on Friday to support a shift to cleaner school buses with funding that comes from the bipartisan infrastructure law.

Vice President Harris and Michael Regan, Environmental Protection Agency
(EPA) Administrator, are expected to announce the opening of applications for cleaner school bus grants in Falls Church, Va.

The initial round of applications will open up $500 million in grants for the adoption of electric school buses or other low-emission buses, according to a press release.

The Biden administration has been promoting similar programs created by the bipartisan infrastructure law as its push for an additional spending bill, expected to be supported only by Democratic lawmakers, remains in limbo. That bill would have made significant investments in combating climate change.

White House climate adviser Gina McCarthy told reporters Thursday that in the bus funding push, the EPA will prioritize communities that are under-resourced or overburdened by pollution.

“This investment will make a huge difference in the lives of schoolchildren who are currently riding on dirty diesel buses. Diesel air pollution makes it difficult to breathe, it causes asthma and triggers other health problems,” she said.