McCarthy already has GOP seeing red - Obama: Climate regs ?difficult? but worth it - E&C panel looks at state?s role in enviro regs - Greens rally Sunday against Keystone

With help from Darius Dixon

McCARTHY ALREADY HAS GOP SEEING RED: She hasn?t even been nominated, but Senate Republicans are suggesting that EPA air chief Gina McCarthy might face tough scrutiny if President Barack Obama picks her to lead the agency. ?Is that really who it?s going to be?" Senate Energy and Natural Resources ranking member Lisa Murkowski (R-Alaska) said after a long moan to a reporter who mentioned McCarthy?s name. "That?s what we?re hearing, too." Meanwhile, Senate Environment and Public Works ranking member David Vitter (R-La.) said he is holding McCarthy responsible for agency silence in response to his requests for information on several issues. Darren Goode, Darren Samuelsohn and Erica Martinson have more: http://politico.pro/Ze3CAF

HAPPY FRIDAY and welcome to Morning Energy, where we were amused to note Hallmark Cards PAC filed its January report with the FEC yesterday. Well played, Hallmark. Send your energy news to aguillen@politico.com, and follow on Twitter @alexcguillen, @POLITICOPro and @Morning_Energy.

PROGRAMMING NOTE: ME is off Monday for Presidents Day, but we?ll be back in your inbox bright and early Tuesday morning.

OBAMA: CLIMATE REGS ?DIFFICULT? BUT WORTH IT: President Barack Obama made the long-term case for imposing stricter emissions standards on the nation?s fleet of existing power plants yesterday. ?The truth is if you produce power using old power plants, you?re going to be emitting more carbon ? but to upgrade those plants, energy?s going to be a little bit more expensive, at least on the front end,? Obama said. ?At the core, we have to do something that?s really difficult for any society to do, and that is to take actions now where the benefits are coming down the road, or at least we?re avoiding big problems down the road,? he added. Your morning host has more: http://politico.pro/15gBIob

E&C PANEL EXAMINES STATE?S ROLE: The role of states in carrying out environmental protection efforts is the focus of a hearing today before the House Energy and Commerce Committee?s environment and the economy panel. The hearing?s at 9:30 a.m. in Rayburn 2123.

Colorado in charge: When it comes to oil and gas regulation, the states are better off being charge rather than the federal government, Colorado Oil and Gas Conservation Commission Director Matthew Lepore will say ? echoing a frequent industry and GOP argument. ?Our experience, and that of other states, demonstrates exploration and production activities are most effectively regulated at the state level, where highly diverse regional and local conditions are more fully understood and where rules can be tailored to fit the needs of local basins, environments and communities,? Lepore will testify: http://1.usa.gov/XHhkZK

Cash crunch: The federal government delegates implementing many programs to state agencies ? but federal funding to the states is declining, Teresa Marks, director of the Arkansas Department of Environmental Quality and president of the Environmental Council of the States, will testify. ?In 2013, with a 5 percent cut coming from sequestration, we seem likely to take the biggest single year cut in recent memory. As a result, states find themselves in 2013 with a lot more rules and the possibility of a lot less money to implement them. States are very unsure how much longer these two trends can continue before the core environmental programs in each state begin to significantly suffer.? Testimony: http://1.usa.gov/YbVnOJ

GREENPEACE ALLEGES TRUST FUNNELS ANONYMOUS MONEY TO CLIMATE SKEPTICS: Millions of dollars in funding for groups that question climate change science have been diverted from anonymous donors via ?Donors Trust, a shadowy funding operation for anti-government extremists,? Greenpeace alleges in a report out today. Organizations that received the money include the American Enterprise Institute, the Heartland Institute and the Koch-connected Americans for Prosperity, according to the report. Greenpeace?s report: http://bit.ly/WLVOn8. Donors Trust has garnered some recent media scrutiny. Yesterday the Guardian wrote about its connections to climate-related funding: http://bit.ly/Wq6ENU. Meanwhile, the Center for Public Integrity looks at the wider agenda: http://bit.ly/XByDrt

GREENS RALLY SUNDAY AGAINST KEYSTONE: The Sierra Club, 350.org and more than 100 other organizations and companies are holding their big ?Forward on Climate? rally on the Mall this Sunday at noon. Organizers say they?re expecting ?tens of thousands? of people to show up for the march from the Washington Monument to the White House to protest building the Keystone XL pipeline. And for all you Sheldon Whitehouse fans, the Rhode Island Democrat will be on hand to address the masses. Also expected to attend: actress Evangeline Lilly, Bill McKibben, Michael Brune of the Sierra Club, former Obama green jobs adviser Van Jones and billionaire investor Tom Steyer. Info: http://bit.ly/VbwJ3b

NOT TO BE OUTDONE: The pro-pipeline groups Center for Industrial Progress and for a Constructive Tomorrow will hold a counter-protest and are calling it the ?Light Brigade.? CIP founder Alex Epstein ? a self-described ?energy philosopher? ? and Marc Morano of the website Climate Depot will be there. Info: http://bit.ly/X3Y48m

NRC TO MITSUBISHI: HAND OVER SAN ONOFRE REPORT: Los Angeles Times: ?The U.S. Nuclear Regulatory Commission has asked Mitsubishi Heavy Industries to hand over a redacted version of a report on equipment issues at the now-shuttered San Onofre nuclear plant. The commission, which has already reviewed the full report, said it intends to make the redacted version public.? LAT: http://lat.ms/Ul7ZXK

** A message from America's Natural Gas Alliance: Which affordable and American resource is helping our nation achieve record-low power sector emissions levels? Natural Gas.? Follow us and join the #natgas conversation. www.twitter.com/angaus **

TESLA, NYT ESCALATE MODEL S DISPUTE: The beef between Tesla CEO Elon Musk and New York Times reporter John Broder over a bumpy article (http://nyti.ms/W3HSD0) on a test drive of the company?s Model S electric car is reaching a fever pitch. Late Wednesday night, Musk published a blog post with detailed data he said proved Broder sabotaged the test drive by ignoring battery conservation tips and purposefully running down the battery: http://bit.ly/XB0SX5. Broder responded yesterday with a point-by-point rebuttal with more detail on the drive: http://nyti.ms/YhJY1A. The Times?s public editor, Margaret Sullivan, also jumped into the fray to say she?s looking into the matter: http://nyti.ms/15g72TU.

Other outlets got involved, too. The Atlantic Wire put up a piece critical of Musk?s claims: http://bit.ly/Yh8yje. Slate says both men might have a point: http://slate.me/12lliuT. Wonkblog looks at what?s at stake in the dispute: http://wapo.st/15fHeHp. And to top it all off, Reddit users weighing in: http://bit.ly/UiDRMA

NUCLEAR WASTE FEE LAWSUIT UPDATE: Energy Department attorneys said yesterday that although the agency stands by its decision last month not to change its nuclear waste fee, it would not necessarily oppose reopening the lawsuit seeking to have the fee suspended. But DOE?s attorneys did ask the court to treat the challenge to its January report as a separate, new legal case ? with a new administrative schedule ? instead a continuation of the original 2011 lawsuit. DOE?s brief: http://politico.pro/Vj8BMN

NEVADA SUPREMES RULE WIND TURBINE A ?NUISANCE?: The Nevada Supreme Court on Thursday ruled that building a 75-foot wind turbine near a residential subdivision would create an untenable nuisance and blocked the project. ?We conclude that this evidence concerning the noise, diminution in property value, shadow flicker, and aesthetics far outweighs any potential utility of the proposed wind turbine within the Forest Hills Subdivision,? the court wrote in its opinion: http://bit.ly/XClsGy

IN OTHER WIND NEWS

? The Wisconsin Public Service Commission denied a proposed 100-megawatt wind farm but left the door open for a resubmission. State Journal: http://bit.ly/YhW62S

? A Texas company will move forward on two wind projects in northweast Alabama. AP: http://bit.ly/Xc0YFw

? A South Dakota Senate committee has given its OK for wind power incentives in the state. AP: http://buswk.co/12HnEQj

MOVING NOAA TO INTERIOR COULD BE BIG PLUS, GAO SAYS: Moving NOAA from the Commerce Department to Interior ? an idea floated several times before, including in 2012 by Obama ? would help integrate more of the federal government's land and ocean resource management, the Government Accountability Office says in a new report. ?Some agency officials and stakeholders said moving NOAA to Interior could allow the federal government to more effectively address issues such as 'dead zones' in the Gulf of Mexico; impacts of offshore energy development; climate change; and other challenges,? GAO wrote. Other officials cautioned the move would mean competing against other Interior agencies for budget allocation ? whereas at Commerce NOAA doesn't have a similar mission to other sub-agencies and thus faces less competition. The report: http://1.usa.gov/ViW1Ns

THE POSTMAN ALWAYS RINGS TWICE: From ME?s mailbag.

? Sen. Mark Begich is joining Murkowski in making known his complaints about Interior?s rejection of an emergency access road that would run through part of Izembek National Wildlife Refuge. The Alaska Democrat writes to Obama that ?how she addresses this troubling trend will be at the top of my list when I consider the confirmation of Interior secretary-designee Sally Jewell? and asks Obama to have Sally Jewell visit Alaska shortly after being confirmed: http://politico.pro/ZdV50z

? Twenty-three self-described House progressives are pushing the president to act on climate change ?in the face of Republican obstruction in Congress.? Signers include Reps. Raul Grijalva, Eddie Bernice Johnson, John Lewis, Keith Ellison, Sam Farr, Grace Napolitano and Earl Blumenauer. Letter: http://politico.pro/VXEF69

U.N. CHIEF PLEASED WITH OBAMA CLIMATE TALK: U.N. Secretary General Ban Ki-moon is happy to hear Obama?s recent talk about climate change. ?I have been very encouraged by President Obama?s call to action on climate change both at his Inauguration and in the State of the Union Address. This is a global imperative,? Ban said yesterday before meeting with Secretary of State John Kerry. Kerry added: ?I know from many conversations with the secretary general ? we?ve been at events together, at negotiations together, we?ve spoken at events together ? this is a major priority for the United Nations, and we appreciate his leadership.?

QUICK HITS

? The Japanese government plans to offer up to $10.75 billion in loan guarantees for projects generating shale gas. Reuters: http://reut.rs/Z0oesj

? A federal judge says the Bureau of Land Management must identify the companies proposing parcels of public lands for the leasing process. Summit County Voice: http://bit.ly/YbnD3R

? Some workers have been evacuated off a shallow-water Apache well site "amid concerns about an underground flow of natural gas," Fuel Fix reports: http://bit.ly/VUX1Ke

? Encana is apologizing for an executive who cursed on conference call with investors. Reuters: http://reut.rs/Z13X5C

? Democrats should get on board with natural gas, The Washington Post editorial board writes: http://wapo.st/12myWhr

THAT?S ALL FOR ME. Have a great weekend.

** A message from America's Natural Gas Alliance: We believe in a clean energy future. Natural gas is a cleaner energy choice and a key partner to solar and wind technologies. From California to Florida, natural gas facilities are working with renewable energy to ensure steady, affordable and cleaner energy choices for communities across our nation. Because it is an abundant and affordable energy source available right here in America, natural gas can help make the promise of cleaner energy a reality in more American communities. Natural gas is smarter power today. Visit anga.us to learn more. **

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