OVERNIGHT ENERGY: White House pulls deputy Interior secretary amid reported pushback | Fed to form committee focused on climate risks to financial system | Democratic senators call on Biden to sanction Russian gas pipeline Nord Stream 2

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Today we’re taking a look at an announced Interior nominee that didn’t pan out, a new committee trying to understand how climate change will impact the country’s financial system and Democratic opposition to a Russian gas pipeline. 

 

SO CLOSE, BUT YET, SO FAR: White House pulls deputy Interior secretary amid reported pushback 

The White House will no longer nominate Elizabeth Klein to fill the No. 2 role at the Interior Department, amid reported opposition from key senators. 

Politico reported Monday evening that the White House will pull the nomination amid pushback from Sen. Lisa Murkowski (R-Alaska).

On Tuesday, a White House spokesperson confirmed to The Hill that Klein, who previously worked at the department during the Clinton and Obama administrations, will not be nominated to the role.

The spokesperson did not say whether Murkowski played a role in this decision, but noted that Klein’s nomination had not yet been formally sent to the Senate.

Meanwhile…The Washington Post reported Tuesday that Sen. Joe Manchin (D-W.Va.), another crucial swing vote, also objected to Klein’s nomination. 

Read more about the White House’s decision here.

 

SHOW ME THE MONEY: Fed to form committee focused on climate risks to financial system

The Federal Reserve will create a committee dedicated to understanding the ways climate change could upend the global financial system, a top official announced Tuesday.

Fed Governor Lael Brainard said in a Tuesday speech that the central bank’s new Financial Stability Climate Committee (FSCC) will focus on the potential threats climate change can pose to the broader financial world. 

What do we already have? While the Fed had already created a Supervision Climate Committee (SCC) to study the climate risks facing specific firms and the banking industry generally, Brainard said the new panel will focus on how climate-related disruptions could ripple through credit markets and other industries within the financial sector, causing a broader crisis.

“Our macroprudential work program is focused on assessing not only potential climate shocks, but also whether climate change might make the financial system more vulnerable in ways that could amplify these shocks and cause broader knock-on effects that could harm households, businesses, and communities,” Brainard said in a speech at a conference held by the Ceres Institute.

The takeaway: The Fed’s new committee will dramatically expand the scope of its efforts to monitor and prepare for climate-related financial risks. 

Read more about FSCC here.

 

NOT IN2 THE STREAMING SERVICE: Democratic senators call on Biden to sanction Russian gas pipeline 

A pair of Democratic senators are calling on the Biden administration to use all its power to stop Russia completing a gas pipeline destined for Europe, urging quick application of sanctions.

In a letter to Secretary of State Antony Blinken, Sens. Bob Menendez (D-N.J.), the chair of the Senate Foreign Relations Committee, and Jeanne Shaheen (D-N.H.), chair of the panel’s subcommittee on Europe, reaffirmed their opposition to the Nord Stream 2 gas pipeline which is under construction from Russia to Germany. 

Cutting it close: The senators called on Blinken to accelerate efforts to build a strong sanctions package aimed at halting the pipeline construction, which is believed to be between 90 to 95 percent complete. 

“This pipeline must be stopped and your leadership is required towards that end,” the senators wrote in a letter to Blinken.

Read more about their letter here.

 

THERE’S SOMETHING IN THE WATER: Bipartisan lawmakers introduce $35 billion water infrastructure bill 

A bipartisan group of lawmakers on Tuesday introduced a bill that seeks to give states more money to address aging water infrastructure, putting funds toward reducing lead levels and projects to address the impacts of climate change. 

The legislation, put forth by three Democrats and three Republicans on the Senate Environment and Public Works Committee, offers $35 billion for water resources. 

Reasonable success: The water bill’s bipartisan backing could mean it has a decent shot of gaining the 60 Senate votes necessary to bypass the filibuster and eventually become law. 

“It’s clear that the lack of investments in our water infrastructure has led to a public health crisis and we have to do more to stop it, which is why I’m proud to introduce this bipartisan bill,” said a statement from Sen. Tammy Duckworth (D-Ill.) 

Read more about the legislation here.

 

ON TAP TOMORROW:

• The House Energy & Commerce Committee will hold a hearing on the January failure of Texas’ power grid. The CEO of  the Electric Reliability Council of Texas (ERCOT) is slated to appear. 
• The Senate Environment and Public Works Committee will vote on whether to advance the nominations of Brenda Mallory and Janet McCabe to lead the White House Council on Environmental Quality and hold the No.2 role at the EPA respectively.
• The House Appropriations Committee will hold a hearing on the remediation and impact of PFAS. Erin Brockovich is slated to appear. 
• The House Energy & Commerce Committee will hold a hearing on the CLEAN Future Act.

 

WHAT WE’RE READING:

Near America’s largest coal-fired power plant, toxins are showing up in drinking water, Georgia Health News and ProPublica report

Montana Governor Given Written Warning After Trapping, Killing Of Yellowstone Wolf, The  Mountain West News Bureau reports

Can FEMA save the ‘poorest town in America’ from drowning in its own poop?, Grist reports

Pollution deal exposed Trump EPA official to ethics charges, E&E News reports

 

ICYMI: Stories from Tuesday…

Park Service to limit Tidal Basin access during peak cherry blossom bloom

Bipartisan lawmakers introduce $35 billion water infrastructure bill

Democratic senators call on Biden to sanction Russian gas pipeline Nord Stream 2

Fed to form committee focused on climate risks to financial system

White House withdraws deputy Interior secretary amid reported pushback from Murkowski