DEMOCRATS FLAG FLOOD COSTS: Flooding has gotten worse as temperatures rise, and it’s becoming more expensive to deal with, according to a new report from Democrats on the Joint Economic Committee. The analysis estimates the total cost of flooding in the U.S. to be between $179.8 and $496 billion each year.
Putting it into perspective: The amount in damages due to flooding amounts to 1-2% of GDP in 2023. This range is higher than previous estimates, according to the report, which put the cost of either a subset of the damages or a subset of floods between $4.4 and $82.7 billion.
Why it matters: The report highlights a towering challenge for the insurance industry, businesses, and homeowners as lawmakers look to address an issue that affects both frontline and some inland communities.
The subcontext: States such as Florida and Louisiana have private insurers leaving their regions due to being considered “high risk” – or in other words, being especially susceptible to hurricanes and flooding.
Furthermore, the report goes on to note that the total costs estimated should be viewed as an “undercount of the true cost,” as several costs are difficult to measure and have not been fully accounted for by researchers.
“Climate change may also increase many of the included and excluded costs going forward as heavier precipitation makes flash and river floods more damaging while rising sea levels put coastal areas at greater risk,” the report reads. Experts are suggesting that the “true total cost of flooding” lies somewhere between 0.5-2 times the range estimated in the current report.
A breakdown of the figures: The economic costs include between $68.9 to $344.5 billion for infrastructure upgrades needed to protect against flooding, $31.6-$40 billion for direct commercial impacts, and up to $15.1 billion in annual damage to homes with federally backed mortgages. Read the report here for a further breakdown of the figures.
And remember: We’re heading into an especially disruptive hurricane season this summer, the National Oceanic and Atmospheric Administration predicts. It estimates an 85% chance of an above-normal season.
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LOOKING AHEAD TO ACTION ON CAPITOL HILL: A vote is scheduled this week to confirm three nominees to the Federal Energy Regulatory Commission.
Some background: Last week, Democrats Judy Chang, David Rosner, and Republican Lindsey See sailed through committee with overwhelmingly bipartisan support. The day after, Majority Leader Chuck Schumer filed cloture on the three nominees for a floor vote this week.
Why this matters: If all three are confirmed, that would restore the commission to full strength – one of the current commissioners, Allison Clements, is not seeking a second term, and her term expires at the end of June. More on that here.
A hearing on ESG: The House Judiciary Subcommittee on the Administrative State, Regulatory Reform, and Antitrust will hold a hearing Wednesday on ESG investing. Witnesses will include Natasha Lamb – Managing Partner and Chief Investment Officer at Arjuna Capital, one of the activist investors in the Exxon drama – as well as Dan Bienvenue, Interim Chief Investment Officer of CalPERS, which had sided with Arjuna. More on that here.
BLM Oversight hearing: The Senate Energy and Natural Resources Committee will have an oversight hearing examining the Bureau of Land Management on Thursday. The director of the agency, Tracy Stone-Manning, will be testifying in front of the panel. Read more on that here.
ICYMI – SPENDING CAP DISCUSSED FOR RECA EXTENSION: In case you missed it on Friday afternoon, our David Sivak reported that the idea of a cap on spending is being discussed in talks to extend the Radiation Exposure Compensation Act.
The program, which provides compensation for those suffering from radiation-related illnesses attributed to government nuclear weapons testing or uranium mining, is set to expire today. Lawmakers from states not covered under the existing law, in particular Missouri and New Mexico, have pushed hard for any reauthorization to expand benefits to their constituents. House Speaker Mike Johnson, though, has opposed those proposals because of the cost.
The concept of capping the price tag for a reauthorization bill entered the conversation after House leadership indicated that a compromise would have to be kept under $10 billion.
In this scenario, the program would pay out claims until the cap was hit, at which point additional funding would have to be requested from Congress. Read more from David here.
CLIMATE ACTIVISTS PROTEST AT CITIGROUP HEADQUARTERS IN MANHATTAN: Twenty-three climate protesters were arrested this morning for disorderly conduct for a demonstration at Citigroup’s headquarters in Manhattan, WABC reports. The groups said today is the first of four days of efforts to disrupt banks in New York City, an event they are dubbing “The Summer of Heat on Wall Street.”
The activists, from Stop the Money Pipeline, New York Communities for Change, Climate Defenders, and Planet Over Profit, said Citigroup has invested $400 billion into fossil fuels since 2016.
A representative for Citigroup told Bloomberg that the bank respects the rights of critics to protest, but not to prevent workers from entering the building.
RUNDOWN
Reuters EU climate policies could be slowed in future after rightward shift in election
Bloomberg Wall Street Backers See Breakthrough Moment for Carbon Offsets