http://www.eenews.net/gw/2013/03/04
Jason Plautz and Nick Juliano, E&E reporters
Published: Monday, March 4, 2013

Saying that fighting climate change and promoting clean energy will be second-term priorities, President Obama today officially nominated U.S. EPA Assistant Administrator Gina McCarthy to lead the agency and MIT physicist Ernest Moniz to head the Department of Energy.

“They’re going to be making sure that we’re investing in American energy, that we’re doing everything that we can to combat the threat of climate change, that we’re going to be creating jobs and economic opportunity in the first place,” Obama said at the White House this morning.

McCarthy currently heads EPA’s Office of Air and Radiation, where she oversaw some of the agency’s most high-profile regulations during Obama’s first term. McCarthy steps in for Lisa Jackson, who departed the agency last month.

Moniz, who previously served as DOE undersecretary in the Clinton administration, replaces outgoing Energy Secretary Steven Chu. He has drawn some criticism from green groups for his views on hydraulic fracturing and nuclear power.

Obama also tapped Wal-Mart Foundation President and former OMB Deputy Director Sylvia Mathews Burwell to lead the Office of Management and Budget (see related story).
Environmentalists welcomed the long-expected Energy and EPA picks and Obama’s promise to have them fight the threat of climate change through clean air regulations and clean energy. Announcing the picks today, Obama said the two would build on “the work that we’ve done to control our own energy future, while reducing pollution that contributes to climate change.”

But some Republican senators have expressed concerns over EPA operations and said they will be scrutinizing McCarthy’s record at the agency and her vision for its future. GOP senators also are taking a wait-and-see approach to Moniz as they probe his experience.

Both picks must be confirmed by the Senate, but no hearings have been scheduled.
EPA
Green groups said McCarthy’s nomination signals that the White House will not let up on its regulatory push. In the air office, McCarthy oversaw first-of-their-kind greenhouse gas and toxics rules for power plants, new restrictions on sulfur in gasoline, and tougher fuel economy standards for cars and trucks.

McCarthy also has a reputation for working well with the industries she is regulating and for doing the heavy lifting on complicated rules.

She previously served as commissioner of the Connecticut Department of Environmental Protection, helping lay the groundwork for the multistate Regional Greenhouse Gas Initiative, and held several positions as a Massachusetts regulator under then-Gov. Mitt Romney (R).

Natural Resources Defense Council President Frances Beinecke praised McCarthy as a “good listener, a straight shooter and someone who has what it takes to build consensus and find solutions.”

“We can count on her to protect our environment and our health,” Beinecke said in a statement. “And she can count on our support as she works to get the job done on behalf of Americans everywhere.”
EPA has a lengthy list of regulations on deck, including finalizing rules on greenhouse gas emissions from new power plants and Tier 3 rules limiting sulfur in gasoline. The agency is also expected to craft new greenhouse gas regulations for existing power plants, following through on a long-delayed promise.

“Every American is — or will soon be — breathing cleaner air because of McCarthy,” said Frank O’Donnell, president of Clean Air Watch.

“Breathers need McCarthy now more than ever as EPA prepares to tackle critical air quality challenges, including the need for smog-fighting lower-sulfur gasoline, updated national ozone air standards, and greenhouse gas standards for both new and existing power plants,” he added. “Dealing effectively with climate change is the challenge of a lifetime.”

Although there are sure to be questions about her role in overseeing new regulations, McCarthy has won praise from industry and utility officials for her willingness to listen to their concerns and work with them while crafting the rules (Greenwire, Feb. 12).
“Given that the recent rules arising under the Clean Air Act are some of the most expensive in EPA history, McCarthy has significant experience with wide-sweeping stakeholder contact,” said Scott Segal of Bracewell & Giuliani’s Policy Resolution Group.

“What many in industry appreciate about her style is her directness and openness to engagement with the regulated community,” he added. “Almost every large EPA rule has errors — both in policy and methodology. McCarthy listens and allows for the possibility of midcourse corrections.”

But in a statement, Americans for Limited Government President Bill Wilson called for the Senate to reject McCarthy because of her involvement in regulatory work and several agency “scandals.” Wilson said McCarthy was “unfit to run a Burger King, let alone a Cabinet-level agency that threatens our nation’s economy through its series of strange and bizarre regulatory rulings.”

McCarthy will likely face some uphill battles in being confirmed by the Senate. Environment and Public Works ranking member David Vitter (R-La.) has signaled that he is concerned about EPA’s transparency, citing several recent requests for more information on everything from ozone regulations to agenda publishing that have gone unanswered.

“The EPA is in desperate need of a leader who will stop ignoring congressional information requests, hiding emails and more from the public, and relying on flawed science,” Vitter said in a statement. “McCarthy has been directly involved in much of that, but I hope she can reverse those practices with Lisa Jackson’s departure. I look forward to hearing answers from her on a number of key issues.”

McCarthy’s nomination to the air post in 2009 was held up by Sen. John Barrasso (R-Wyo.) over broader concerns about the administration’s climate policy. She was confirmed by voice vote after Barrasso lifted his hold.

Sources off the Hill said they would not be surprised to see Vitter or other Republicans on the EPW committee use McCarthy’s hearing to weigh in on upcoming regulations or the administration’s commitment to fight climate change.

Barrasso said in a statement this morning that he had “serious concerns about how the current EPA operates” and that he would “take a very close look at Ms. McCarthy’s experience at the EPA and her vision for the agency.”

Still, Sen. James Inhofe (R-Okla.), a staunch EPA opponent, had praise for McCarthy, saying in 2009 that she “possesses the knowledge, experience and temperament to oversee a very important office at EPA” (Greenwire, June 2, 2009).
In a statement today, Inhofe said he is looking forward to “sitting down and talking with her to find common ground as I did with Lisa Jackson.”

EPW Chairwoman Barbara Boxer (D-Calif.) had nothing but praise for McCarthy, saying that Obama “could not have picked a more qualified person to lead EPA at this critical time.”

Boxer promised to move forward with McCarthy’s nomination as soon as possible, although no plans for a hearing have been set.
DOE
Moniz, 69, shares Chu’s scientific background but will come to the job more familiar with Washington than his predecessor. During the Clinton administration, Moniz served in the White House Office of Science and Technology Policy and as an undersecretary at DOE. While at the Massachusetts Institute of Technology, Moniz acted as an adviser on several Obama administration policies on nuclear waste, shale natural gas, and research and development.

“I think the most important thing he brings to the job by far is that he understands the interplay between science and politics,” said Elgie Holstein, who worked with Moniz in the Clinton administration and now is senior director for strategic planning at the Environmental Defense Fund. “He understands that science in Washington is not a given, and you have to make your case through the political process no matter what the issue is.”

Obama praised Moniz’s familiarity with Washington in announcing the nomination this morning.

“The good news is that Ernie already knows his way around the Department of Energy. … Most importantly, Ernie knows that we can produce more energy and grow our economy, while still taking care of our air, our water and our climate,” the president said.
Obama called for the Senate to quickly confirm the nomination. Few red flags were immediately apparent, although Republicans on the Energy and Natural Resources Committee said they were taking a wait-and-see approach to Moniz.

“I’m willing to work with both DOE and the EPA to address the shared challenges we face, but it truly must be done in a way that recognizes the benefits of an energy supply that is not only clean, but also abundant, affordable, diverse and secure,” Sen. Lisa Murkowski (R-Alaska), the ranking member on energy, said in a statement this morning. “My support will depend on both nominees demonstrating that they can lead DOE and the EPA in a way that restores balance to these objectives.”

Republican senators are glad to see Moniz’s support for natural gas and nuclear but will be pressing for more information on his views toward oil and coal, said a GOP aide who requested anonymity. Moniz’s previous statements in favor of a carbon tax also likely will be a topic of discussion in committee hearings.

Aides to other Republicans on the committee, including Sens. Rob Portman (Ohio), James Risch (Idaho) and Barrasso, said they were still reviewing Moniz’s credentials and withholding judgment until after the confirmation hearings but did not indicate any immediate problems.

Sen. Ron Wyden (D-Ore.), the chairman of the Energy and Natural Resources Committee, welcomed Moniz’s nomination and said he looks forward to discussing several pressing issues.

“That includes: re-engaging Dr. Moniz over the problems with cleaning up nuclear waste at the Hanford Site; finding creative ways to promote new technologies and harness the ingenuity of America’s energy innovators; and examining the diverse opportunities to attack climate change and transition to a low-carbon economy,” Wyden said in a statement.

Moniz’s support for natural gas and nuclear energy has raised concerns among some environmental groups (Greenwire, Feb. 22).

Several green groups welcomed his nomination today but made clear they would be looking for additional emphasis on promoting renewable energy over conventional sources.

Environment America Clean Energy Advocate Courtney Abrams said the group was “concerned” about where Moniz would lead DOE given his previous support for shale gas and nuclear power. She said she wants to hear Moniz commit to endorsing Obama’s calls for doubling renewable energy and boosting energy efficiency in the coming decades rather than tout gas and nuclear as tools to address global warming.

“We would like for the administration to move in the direction of solely focusing on renewable energy,” Abrams said in an interview this morning, pointing to DOE work like its Better Buildings and SunShot initiatives as programs that should be emphasized. “Environment America has made very clear our opposition to fracking and to nuclear power, so we would like to not move in that direction, absolutely.”

Sierra Club Executive Director Michael Brune made a similar observation.

“In his role as Secretary of Energy, we urge Mr. Moniz to prioritize clean, renewable energy as climate solutions over destructive fossil fuels and boondoggles like liquefied natural gas exports,” Brune said in a statement. “We would stress to Mr. Moniz that an ‘all of the above’ energy policy only means ‘more of the same,’ and we urge him to leave dangerous nuclear energy and toxic fracking behind while focusing on safe, clean energy sources like wind and solar.”

The Environmental Defense Fund, which has been more supportive than other environmental groups of deploying natural gas as a bridge fuel, noted Moniz’s efforts to ensure that gas extraction does not harm the environment.

“Dr. Moniz has repeatedly observed that just because the environmental challenges of shale gas are manageable — that does not mean that they are yet managed,” EDF President Fred Krupp said in a statement. “As there is work that remains to be done to ensure the safety of communities living around oil and gas development, and to address the air pollution issues that go beyond the local neighbors, his perspective will be important in the national conversation.”

The industry-backed think tank Institute for Energy Research greeted Moniz’s nomination with a call for DOE to split from its previous practice of backing clean technologies with loan guarantees and other supports.

“Dr. Moniz will inherit an agency with a tarnished record for picking losers and not winners in the energy market,” IER President Thomas Pyle said in a statement. “It is our hope that Dr. Moniz will avoid opportunities to repeat the well-documented mistakes of his predecessor and refuse the temptation to let political pressure trump sound science and economics at the department.”

The Washington-based research firm ClearView Energy Partners predicted Moniz would tread a middle path on questions related to fossil fuel development and exports.

“We interpret the Moniz nomination as another administration acceptance of domestic natural gas (and oil) development,” ClearView said in a note to clients this morning, “but not a wholesale endorsement of expanded production or exports.”

Special thanks to Richard Charter