WASHINGTON -- President Barack Obama turned to experienced political hands Monday to fill out his cabinet, choosing a top-ranking official at the Environmental Protection Agency as the nation’s top clean air and water watchdog, and a veteran of the Clinton administration as his energy secretary.

Gina McCarthy, currently an assistant administrator in charge of air and radiation, would replace Lisa Jackson, the well-liked but controversial EPA leader in Obama’s first term. Obama tapped Ernest Moniz, a physicist at Massachusetts Institute of Technology, to replace Steven Chu at the Department of Energy. Both must be confirmed by the Senate.

Obama, who held his first Cabinet meeting of his second term Monday, also announced a new budget director: Sylvia Mathews Burwell. He said his EPA and Energy Department picks will be charged with investing in American energy and creating jobs and economic opportunity, as well as “doing everything that we can to combat the threat of climate change.”

“They are going to be a great team,” Obama said. “And these are some of my top priorities going forward.”

In his first term, the EPA implemented standards for mercury pollution, tightened rules on soot pollution and established tougher emissions standards for new power plants. It also set higher fuel-economy standards for automobiles, which the administration boasts will do more to reduce global greenhouse-gas emissions than any action taken by other nations.

McCarthy, who played a major role in developing the tougher fuel standards, earned praise from clean air advocates for her work on air pollution. She’s a former state environmental regulator who once worked for Obama’s 2012 opponent, former Massachusetts governor Mitt Romney.

Environmental groups praised McCarthy’s appointment. They wanted the EPA to be led by someone who would uphold the agency’s authority to regulate greenhouse gases under the Clean Air Act and they got that with McCarthy, said Frances Beinecke, president of the Natural Resources Defense Council.

She “knows what it means to protect our air, water, land and health and stand up to the growing threats we’re seeing from climate change,” Beinecke said.

But industry offered fainter praise, as did lawmakers from states where energy dominates the economy. The president of the American Petroleum Institute, Jack Gerard, said in a statement he was concerned about pending regulations that could raise the price of gasoline, rules for greenhouse gas emissions from refineries, and new ozone standards.

"President Obama says his top priority is creating American jobs, and we will continue working with the EPA and the administration to help avoid jeopardizing that goal," he said. "The problem is that EPA, in many cases, is not proposing regulations that meet this goal."

Republican lawmakers, who’ve attacked the EPA for what U.S. Chamber of Commerce President Tom Donohue called “burdensome permitting requirements,” are expected to put up more of a fight. McCarthy’s predecessor was a lightning rod for criticism from manufacturers and utilities, who’ve are concerned the agency has overstepped its regulatory authority.

Sen. Lisa Murkowski, R-Alaska, the top Republican on the Senate Energy and Natural Resources Committee, said she wanted the leaders of both agencies to consider energy security.