Hi John,

With the end of the year in sight and recess around the corner, policymakers from both chambers face a packed schedule. That includes finding compromise on the National Defense Authorization Act (NDAA), securing supplemental security funding for Ukraine and Israel, reauthorizing the Foreign Intelligence Surveillance Act, and finally, tying up the remaining FY24 appropriations bills. Fun times! We’re keeping a close eye on Capitol Hill and will circle back with updates next week.

In this week’s On the Grid, we’re debriefing the many, many bits of hot energy news, from new regulations on methane to the latest news out of COP28. Let’s dive in.

Regulating methane is one of the most effective strategies available to curb greenhouse gas emissions and fight climate change. We’ve already got the infrastructure and technology required to reduce methane largely in place, so it's also one of the cheapest emissions reduction tools in our arsenal.

At COP28, the Biden Administration announced new regulations to reduce methane from new and existing facilities, oil and gas production, and other sources of this potent greenhouse gas. The administration’s announcement would:

• Establish strict standards but allow for cost-effective compliance, including phase-out periods for routine flaring and venting and added time to repair leaks and implement new technology.
• Promote innovation, especially for methane detection technology, by streamlining the processes to demonstrate that new technologies meet rule standards.
• Introduce a “Super Emitters” program to detect and address significant methane leaks from production facilities. By creating greater transparency about the source of methane leaks, the program puts pressure on oil and gas producers to quickly address problem areas.

These new regulations are part of a larger Biden administration effort to curb methane emissions: starting next year, the EPA will begin imposing a fee on facilities exceeding methane emission limits, beginning at $900 per metric ton and rising to $1500 by 2026.  

For years, nuclear energy was unwisely excluded from international climate negotiations. That started changing in 2021 at COP26 in Glasgow, where Third Way joined senior Biden Administration officials to highlight nuclear’s role and announce several important actions to support nuclear power. This year, at COP28 in the United Arab Emirates, the inclusion of nuclear is much more comprehensive:

• In a landmark agreement, the US and 21 other countries committed to triple nuclear power by 2050, underscoring the importance of the sector but casting a spotlight on the necessity to expand financing solutions.
• The US has announced that it will spearhead an international strategy to boost collaboration on nuclear fusion research and streamline the commercialization and regulation of fusion technology.
• Several US-based nuclear companies like Westinghouse and TerraPower signed a memorandum of understanding (MOU) with Emirati state-owned nuclear company ENEC, marking a significant expansion of America's role as a leader in the global nuclear marketplace.

In response to rising energy prices and threats from authoritarian regimes, President Biden has taken actions throughout his Administration to ramp up production. The result? US oil production has hit a record high of 13.2 million barrels a day. That’s more oil produced under President Biden than under any other US president. In fact, it’s even more than petro-states like Saudi Arabia and Russia–and it’s driving down gas prices.

The White House has remained relatively quiet about its successes. We understand there’s queasiness among many climate hawks about this record. At a time, however, when Americans have been feeling the sting of high prices, we believe not highlighting this would be a significant misstep.

As Josh Freed, Senior Vice President of Third Way’s Climate Team, said in Axios this week, “The President should take credit for this, and he shouldn't be shy about it. It helps American families.”

The Biden Administration is doing two things at once. It is addressing the immediate-term inflation and cost challenges driven by oil’s current position in our economy. It is also making the longer-term investments in clean energy that will reduce demand for oil and the impact oil prices have on most Americans’ budgets, wallets, and lives. These policies aren’t contradictory at all. In fact, reducing oil prices now is essential to building public support for the clean energy transition. Families who are worried about making ends meet typically don’t have the luxury of worrying about greenhouse gas emissions. Ignoring that reality ignores voters’ real concerns and puts the entire clean energy agenda at risk.

• Zoë Schlanger, in the Atlantic, outlines the international and domestic implications that a second Trump presidency will have on climate policy, clean energy deployment, and US leadership in the global arena.
• Bill Gates, in the New York Times, offers a personal perspective on climate investment and emphasizes the importance of taking risks to make clean technologies and products more competitive.
• Akshat Rathi, on the Zero: A Climate Race podcast, discusses clean energy deployment goals with BloombergNEF’s Jenny Chase, breaking down investment gaps and hurdles standing in the way.