Overnight Energy & Environment

Energy & Environment — Biden, EU leaders announce energy plan

Welcome to Friday’s Overnight Energy & Environment, your source for the latest news focused on energy, the environment and beyond. Subscribe here and view the full edition here.

Today we’re looking at a new EU/European energy deal, FERC backtracking on pipeline requirements and another offshore wind power announcement.  

For The Hill, we’re Rachel Frazin and Zack Budryk. Write to us with tips: rfrazin@digital-staging.thehill.com and zbudryk@digital-staging.thehill.com.

Let’s jump in.

 

US, EU to reduce Europe’s reliance on Russia

The United States and European Commission on Friday announced measures to wean European nations off of Russian gas, the latest effort to deal a blow to Russia’s economy amid its invasion of Ukraine. 

The two sides announced a task force “to reduce Europe’s dependence on Russian fossil fuels and strengthen European energy security” following a meeting in Brussels between President Biden and European Commission President Ursula von der Leyen. 

The goal is to prepare European countries for next winter and beyond so that they can maintain a steady flow of energy without relying heavily on natural gas provided by Russia, which has given Moscow significant leverage and has been a key sector of Russia’s economy. 

How will it work? As part of the arrangement, the United States will work with international partners to supply more liquefied natural gas (LNG). The U.S. and partners will supply at least 15 billion cubic meters of LNG in 2022, though it was not immediately clear how much of that will come from the United States. 

The European Commission also committed to working with European Union member states to ensure demand of roughly 50 billion cubic meters of LNG from the U.S. until at least 2030. 

The task force will also focus on steps to reduce reliance on greenhouse gases and build renewable energy infrastructure in the European Union.  
  
The task force will separately focus on reducing the demand for natural gas in Europe through improving infrastructure that decreases reliance on natural gas in favor of solar and wind power and other forms of renewable energy. 

Read more from The Hill’s Brett Samuels. 

 

Regulator backtracks assessing effects of pipelines 

A federal energy regulator voted unanimously Thursday night to pull back on a policy that would assess the climate effects of existing natural gas pipelines. 

In its Thursday meeting, the Federal Energy Regulatory Commission (FERC) said the proposal would be treated as a draft and only be applied to upcoming pipeline projects. 

“Over the last month, I’ve had discussions with numerous pipeline and [liquefied natural gas] companies and I know my colleagues have as well,” Chairman Richard Glick, who was nominated to FERC by former President Trump and appointed chair by President Biden, said at the meeting. “What I generally heard is that the policy statements raised additional questions that could benefit from further clarification.” 

Glick went on to say FERC’s approach to natural gas pipeline regulation in recent years “hasn’t been consistent with our legal responsibilities, and the courts keep on telling us that,” noting the D.C. Circuit Court has contradicted FERC on pipeline or liquefied natural gas (LNG) certificates.  

The story so far: FERC approved the policy in February after years of criticism from environmental groups, who have accused the agency of rubber-stamping pipelines regardless of environmental impact. A 2020 investigation by the House Oversight and Reform Committee found the agency has approved some 99 percent of pipeline projects in the past 20 years.  

However, Republicans and Sen. Joe Manchin (D-W.Va.) sharply criticized the policy, particularly amid rising gas prices and volatility in the energy market after Russia’s invasion of Ukraine. Sen. John Barrasso (R-Wyo.), the ranking member on the Senate Energy Committee, said in a statement Thursday that the agency “must go back to the drawing board and start over on these harmful proposals.” 

Read more about the reversal here. 

 

Officials announces wind power lease off Carolinas 

The Biden administration on Friday morning announced the first offshore wind energy lease sale off the coast of the Carolinas, part of a broader goal of installing 30 gigawatts of offshore wind power. 

The Bureau of Ocean Energy Management (BOEM) will auction off the two lease areas, which cover 110,091 acres in the Carolina Long Bay, on May 11. The Interior Department projects the area could provide 1.3 gigawatts of offshore energy after development. 

“The Biden-Harris administration is committed to supporting a robust clean energy economy, and the upcoming Carolina Long Bay offshore wind energy auction provides yet another excellent opportunity to strengthen the clean energy industry while creating good-paying union jobs,” Interior Secretary Deb Haaland said in a statement.

“This is an historic time for domestic offshore wind energy development. We will continue using every tool in our toolbox to tackle the climate crisis, reduce our emissions to reach the President’s bold goals, and advance environmental justice.” 

The 30 gigawatt goal is part of a broader Biden administration goal of halving U.S. carbon emissions by 2030. In autumn of 2020, the administration released a roadmap for offshore wind power that envisions installations across the east and west coasts of the U.S. as well as the Gulf of Mexico and the Gulf of Maine. 

Read more about the announcement here. 

 

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That’s it for today, thanks for reading. Check out The Hill’s energy & environment page for the latest news and coverage. We’ll see you Monday.