Energy & Environment — Biden freezes solar tariffs
The Biden administration is delaying new solar tariffs amid a controversial investigation, climate hawks go all-in on the midterms and gas prices jump another 25 cents in a week.
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Biden to delay solar tariffs in bid to boost industry
President Biden signed an order on Monday that will exempt Southeast Asian nations from any new tariffs on solar panels for two years in an effort to boost the solar industry beleaguered by an ongoing Commerce Department investigation.
The White House said in a fact sheet Biden would establish a “24-month bridge” for certain solar imports from Cambodia, Malaysia, Thailand & Vietnam.
The administration said it would waive tariffs “in order to ensure the U.S. has access to a sufficient supply of solar modules to meet electricity generation needs while domestic manufacturing scales up.”
How we got here: The Commerce Department is currently investigating whether solar panel part companies in Southeast Asia are being used to circumvent U.S. tariffs on Chinese solar companies, a probe that began in March following a complaint from California-based Auxin Solar.
While the investigation is not yet completed, Monday’s action will help ease concerns in the solar sector, which currently relies heavily on imports.
The investigation spurred the cancellation of hundreds of solar projects in the U.S. amid concerns that it could result in retroactive tariffs up to 250 percent on imported equipment.
‘Multiple factors’: In a proclamation issued later Monday, Biden said that “multiple factors are threatening the ability of the United States to provide sufficient electricity generation to serve expected customer demand” in laying out the decision to order the 24-month pause on new tariffs.
Speaking on a call with reporters, a senior administration official said that Biden was exercising his authority under the Tariff Act and said the action is the result of an interagency legal team.
But wait, there’s more: Biden also invoked the Defense Production Act to expand U.S. manufacturing of solar panel parts, building installation, heat pumps, power grid infrastructure and equipment used to make clean energy-generated fuels, according to the fact sheet.
Biden has used the Cold War-era authority in several ways, including ramping up domestic production of baby formula amid a nationwide shortage.
“Together, these actions are going to spur domestic manufacturing, keep spurring it in the way we’ve seen over the first year and a half of this administration,” the senior administration official said. “It’s going to put wind in the sail of construction projects all around the country.”
Read more from The Hill’s Morgan Chalfant.
Climate groups coordinating $100M in ad spending
A coalition of environmental groups on Monday announced a $100 million ad campaign ahead of a midterm election season that looks increasingly hostile to congressional Democrats.
The groups will put the money toward federal and state candidates with aggressive climate policy proposals, including outreach to voters who count climate as a top issue and are at risk of sitting out the election.
Who’s involved: The initiative, the Climate Votes Project, will comprise groups including Climate Power Action, Climate Reality Action Fund, Environmental Defense Fund Action Vote, League of Conservation Voters Victory Fun, Natural Resources Defense Council Action Votes and NextGen PAC.
The coalition, first reported by CNN, will also put the funds toward ads targeting candidates receiving substantial funding from the fossil fuel industry and those who oppose aggressive climate action, according to an announcement from the organizations.
How we got here: The Biden administration’s signature Build Back Better policy package includes a number of aggressive climate actions but was seemingly doomed in December after Sen. Joe Manchin (D-W.Va.) announced he would not back it.
While a bipartisan group of senators has continued meeting for talks on a potential smaller climate package, activists and candidates such as Pennsylvania Lt. Gov John Fetterman, who recently won the state’s Democratic Senate primary, have called to elect more progressive Democrats to the Senate to sidestep the need for Manchin’s approval.
Pete Maysmith, senior vice president for campaign at the League of Conservation Voters Victory Fund, told The Hill that the coalition will seek to recapture enthusiasm from voters who rank climate as a top issue but may have lost faith since the 2020 election.
Despite advancements such as rejoining the Paris climate accords, Maysmith told The Hill, “we’re still pushing forward on climate policy happening through reconciliation … that needs to happen not just for political reasons, because of science, because of justice, because of lived experience.”
Read more about the campaign here.
GAS PRICES JUMP 25 CENTS IN ONE WEEK
The average price of gasoline in the U.S. has risen 25 cents in just one week, adding to headaches faced by consumers and the Biden administration.
On Monday, the average national price stood at around $4.87 per gallon, up from $4.62 just one week ago, according to AAA.
Over the past month, prices have risen 59 cents, up from an average of $4.28 a month ago.
AAA attributed the new rise to high demand. It said that globally, demand is outpacing supply, while recent “robust” travel on Memorial Day weekend also drove up demand in the U.S.
The Midwest saw the largest increases over the past week, with prices rising 45 cents in Michigan, 41 cents in Illinois and 41 cents in Indiana, AAA found.
Meanwhile, prices themselves were the highest in California, averaging $6.34 per gallon.
In general, prices have been pushed upwards by Russia’s invasion of Ukraine. Lately, the country’s reduced refining capacity has also come into focus, as refiners, which turn crude oil into gasoline, shift towards other profitable fuels like diesel and jet fuel, which have also jumped in price.
Read more about the increase here.
ON TAP TOMORROW
The Commission on Security and Cooperation in Europe, which is made up of both lawmakers and administration officials, will hold a hearing titled “European Energy Security Post-Russia.”
The Senate Agriculture, Nutrition and Forestry Committee will hold a hearing on drought resilience on forests and farmlands
Another slate of primary elections will take place, including in Montana, where former Interior Secretary Ryan Zinke will face off against other Republicans in a bid for a House seat
WHAT WE’RE READING
How the White House lost Joe Manchin, and its plan to transform America (The Washington Post)
9th Circuit Court blocks permits for fracking off California coast (The Los Angeles Times)
Colorado will lose half its snow by 2080 and look more like Arizona, federal scientists conclude (The Denver Post)
As California’s big cities fail to rein in their water use, rural communities are already tapped out (CNN)
Army Corps blocks mine near Okefenokee, cites failure to consult Muscogee Creek Nation (Savannah Morning News)
And finally, something offbeat and off-beat: Another one!
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 tomorrow.
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