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HAPPY INDEPENDENCE DAY! Daily on Energy will be off tomorrow for the Fourth of July. SENATE NOMINEE MORRISEY GREETS TRUMP TUESDAY IN TRIP TO COAL COUNTRY: President Trump will meet with West Virginia Attorney General Patrick Morrisey on Tuesday, and energy issues figure to be a major focus. A couple of things: Morrisey is also the Mountaineer state’s Republican nominee for the U.S. Senate, as well as one of the leaders of a 28-state coalition aimed at cancelling out Obama-era climate regulations. Greeting: Morrisey said in statement from his office that he will greet the president Tuesday afternoon, thanking him for his effort to rollback regulations, which includes climate rules like the Obama administration’s Clean Power Plan. “Tuesday’s stop will be President Trump’s fifth visit to West Virginia since taking office,” Morrisey noted. “His pro-growth, tax policies and his repeal of illegal and burdensome regulations have significantly benefited our citizens and will allow our state to reach her potential.” Trump ‘truly cares’: “The President truly cares about West Virginia and has followed through on his promises. We are looking forward to his stay,” Morrisey said. Trump will deliver remarks at the Salute to Service dinner in White Sulphur Springs, W.V., this evening. Promise to coal workers: The president has promised to restore coal jobs to the state, which includes repeal of the Clean Power Plan and exiting from the Paris climate change agreement in addition to other regulations under his pro-growth strategy. Perry’s work: Trump has also directed Energy Secretary Rick Perry to develop a strategy to save coal power plants from closing. The president expects Perry to develop recommendations for taking such action, and present them to him in the coming weeks. Trump’s plan to order coal plants to stay open is controversial and being opposed by a broad range of groups from the oil industry to solar panel manufacturers. Welcome to Daily on Energy, compiled by Washington Examiner Energy and Environment Writers John Siciliano (@JohnDSiciliano) and Josh Siegel (@SiegelScribe). Email [email protected] for tips, suggestions, calendar items and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email and we’ll add you to our list. GAS PRICES FOR JULY 4TH TO BE HIGHEST IN FOUR YEARS: Gas prices in the U.S. will be the highest in four years during the Fourth of July, at nearly $3 per gallon. The expected price, at $2.86 per gallon, is still 11-cents cheaper than during this past Memorial Day holiday, another prime driving holiday, according to AAA. Nearly 40 million drivers are expected to hit the road for July 4 this week. More pain: Gas prices could continue to rise because of geopolitical risks to oil supply, including new sanctions on Iranian oil, and political turmoil causing lost production in Venezuela. “The national gas price average has held fairly steady for the past 10 days, suggesting that U.S. demand is keeping pace with supply and stabilizing summer gas prices,” said Jeanette Casselano, AAA spokesperson. “However, elevated crude oil prices and other geopolitical concerns could tilt gas prices more expensive in the early fall despite an expected increase in global crude production from OPEC and its partners.” SAUDI ARABIA, RUSSIA REAFFIRM COMMITMENT TO OPEC DEAL OF 1 MILLION BARREL OIL BOOST: Saudi Arabia and Russia reaffirmed their commitment Monday to fulfilling a deal OPEC and other countries reached last month to boost oil output by one million barrels per day in order to lower rising prices. Energy ministers Khalid Al-Falih of Saudi Arabia and and Alexander Novak of Russia spoke on the phone on Monday, and confirmed the terms of the agreement reached last month in Vienna, Bloomberg reported. Everything is the same: This comes a day after Trump, worried about high gasoline prices, said the OPEC deal did not go far enough. Trump claimed he received assurances from Saudi Arabia that it alone could boost oil supply by two million barrels per day. The White House later softened that claim, saying that the Saudis told Trump they can increase oil supply as needed. US EASES DEMAND THAT COUNTRIES STOP ALL IRANIAN OIL IMPORTS: The Trump administration is easing from its demand that all countries entirely end imports of Iranian oil. “We are prepared to work with countries that are reducing their imports on a case-by-case basis,” said Brian Hook, the State Department’s director of policy and planning. “Our policy is to get to zero as soon as possible.” Zero tolerance? The more forgiving approach comes after a State Department official told reporters last week that the U.S. has no plans to give waivers on sanctions to Iran’s oil customers and expects countries to stop imports by Nov. 4. The fallout: Oil prices quickly rose at the prospect that Iran could not export oil. Iran has returned as a major oil supplier since the easing of sanctions as a result of the Iran nuclear deal, selling around 2.5 million barrels a day. The reimposition of sanctions on Iran is a result of Trump’s withdrawal from the Iran nuclear deal, in which Tehran agreed to constrain its nuclear program in exchange for restored business and financial ties to the world economy. The reality: Most of Iran’s oil exports go to Asia, with China, India, South Korea, and Japan being the largest purchasers. Some of those countries could struggle to wean off Iranian oil by November. SCOTT PRUITT INSTRUCTED AIDE TO HELP WIFE SECURE JOB WITH SIX-FIGURE SALARY: Environmental Protection Agency Administrator Scott Pruitt allegedly instructed one of his aides to assist his wife in obtaining a job with a six-figure salary, according to a new report. Oversight hearings: Samantha Dravis, who formerly was an associate administrator in the Office of Policy at the EPA, told staffers on the House Oversight and Government Reform Committee last week that Pruitt instructed her to contact the Republican Attorneys General Association regarding a job for his wife. In search of 200K: Dravis said that Pruitt wanted his wife to secure a job with a salary of at least $200,000, the Washington Post reports. Although she did not contact the Republican Attorneys General Association, which had previously been led by Pruitt, Dravis assisted Marlyn Pruitt secure a job at the Judicial Crisis Network. TEACHER CONFRONTS PRUITT, URGES HIM TO RESIGN: A teacher confronted Pruitt and urged him to resign as he was eating lunch at Teaism Penn Quarter in D.C. on Monday. “EPA head Scott Pruitt was 3 tables away as I ate lunch with my child,” Kristin Mink, whose Facebook profile says she is a teacher at Sidwell Friends School, wrote on Facebook to accompany video footage of the incident. “I had to say something. This man is directly and significantly harming my child’s — and every child’s — health and future with decisions to roll back environmental regulations for the benefit of big corporations, while he uses taxpayer money to fund a lavish lifestyle.” Climate change ‘denier’: “He’s corrupt, he’s a liar, he’s a climate change denier, and as a public servant, he should not be able to go out in public without hearing from the citizens he’s hurting,” she added. The video clip depicts Mink introducing her toddler to Pruitt, saying that her son loves animals and “clean water.” “I would urge you to resign before your scandals push you out,” Mink said. According to Mink, Pruitt and others who were accompanying him left immediately after the exchange. Open book: An EPA spokesman said Pruitt welcomed the interaction. “Administrator Pruitt always welcomes input from Americans, whether they agree or disagree with the decisions being made at EPA,” Lincoln Ferguson, a spokesperson for the EPA, said in a statement to the Washington Examiner. “This is evident by him listening to her comments and going on to thank her, which is not shown in the video. His leaving had nothing to do with the confrontation, he had simply finished his meal and needed to get back to EPA for a briefing.” BUT…PRUITT KEPT SECRET CALENDAR TO HIDE MEETINGS, WHISTLEBLOWER SAYS: Pruitt and his aides have kept secret calendars and schedules to hide meetings or calls, CNN reported Monday night. Kevin Chmielewski, Pruitt’s former deputy chief of staff for operations, said EPA staffers often met in Pruitt’s office to “scrub,” alter or remove items from Pruitt’s official calendar because they might “look bad.” Chmielewski has said he was forced out of the EPA after raising concerns about Pruitt’s spending on first-class travel. Selective disclosure: Chmielewski said some interactions were removed from Pruitt’s calendar after they occurred, such as meetings in June 2017 between Pruitt and Cardinal George Pell, who was charged weeks later with multiple charges of sexual abuse. Pell has pleaded not guilty. The EPA also refuses to reveal Pruitt’s official schedule ahead of time to reporters, as is customary, only providing details after events happen. PERRY DOLES OUT MILLIONS FOR COAL POWER PLANT RESEARCH: Energy Secretary Rick Perry selected 15 new fossil fuel power plant projects Monday to receive nearly $8.8 million in federal funding for cost-shared research and development. What was announced: The new project funds announcement came from the Energy Department’s Office of Fossil Energy, which has a special “crosscutting” program specifically designed to foster innovative R&D in sensors and controls, modeling and simulation, high-performance materials, and water management at power plants. A number of the projects focused on making coal plants more efficient and cleaner. Coal-country manager: The National Energy Technology Laboratory, based in West Virginia, will manage the selected projects. Natural gas and coal together: Some of the funding will go toward research on burning natural gas and coal together in the same power plant boiler. The Ohio-based global manufacturer Ohio-based manufacturer: Babcock & Wilcox plans to use the co-shared funds to develop control strategies in coal-fired drum-type power plants that included natural gas co-firing. The project is meant to reduce the cost of producing electricity when prices surge during times of peak demand for heating or cooling, such as during this week’s heat wave. The Energy Department will provide $359,983 to B&W, while the firm will provide $89,996. Spread the wealth: The Massachusetts Institute of Technology and even researchers in California will be getting money to conduct coal-fired power plant research. Palo Alto’s coal connection: The Electric Power Research Institute Inc. in Palo Alto, CA, will be getting $736,983 from the Energy Department, along with $186,006 of its own money, to better manage water waste from coal power plants. EPRI is a non-profit research organization founded by the investor-owned utility industry to conduct research related to the industry. RHODE ISLAND SUES ENERGY FIRMS OVER CLIMATE CHANGE: Rhode Island became the first state on Monday to sue nearly two dozen oil and fossil energy firms for ignoring the harm caused by climate change. Who sued who? Rhode Island attorney general Peter F. Kilmartin filed the lawsuit in state court against 21 companies that included ExxonMobil, Chevron, and BP. Industry pushes back: National industry trade groups that have been pushing back against similar lawsuits by cities had been using a major court defeat in California to call on the cities of New York and others to give up the legal tactic in fighting climate change. Just last week, U.S. District Court Judge William Alsup dismissed similar lawsuits filed by the cities of San Francisco and Oakland, stating in an order: “No plaintiff has ever succeeded in bringing a nuisance claim based on global warming.” Greens up the pressure: But environmentalists continue to up the pressure for similar lawsuits. “In filing suit against 21 fossil fuel companies for climate damages, Rhode Island Attorney General Peter F. Kilmartin is showing other states what it means to be a climate leader,” said Greenpeace climate campaigner Naomi Ages. ‘Polluters pay’: “For years, climate polluters have been allowed to profit as they destroyed the planet,” she said. “Now, these lawsuits are demanding that polluters pay for the damage that super storms and rising sea levels — both effects of climate change — are inflicting on roads, bridges, and other infrastructure.” CONSERVATIVE GROUPS PRESS TRUMP TO SCRAP KIGALI CLIMATE AGREEMENT: A group of 25 conservative and free-market groups are pressing Trump not to move forward with an Obama-era agreement that they say will drive up costs for refrigeration and air conditioning with very little effect on global warming. “Most studies have concluded that fully implementing the Kigali Amendment would reduce the global mean temperature by an unmeasurable amount by 2050,” the letter led by the libertarian Competitive Enterprise Institute read. “This minute reduction in global temperatures would come at a very high cost.” 13 GOPers: The letter follows one sent by 13 Republican senators last month to Trump asking him to send the Kigali agreement to the Senate to be ratified, claiming it will add jobs for new consumer appliances that will transition the country to using more environmentally friendly coolants. What’s it all about? The 2016 United Nations amendment to the Montreal Protocol calls for the replacement of one refrigeration chemical blamed for exacerbating climate change with one that doesn’t have a warming effect. Kigali math: The groups try to make the math easy to understand. The current chemical costs $7 per pound, while the replacement chemical costs over $70 per pound, according to the letter. Prices for appliances go up: “While this price differential may change over time, a typical home airconditioner uses 10–15 pounds of refrigerant and a vehicle air-conditioner uses 1-2 pounds, so the impact on households could reach well into the hundreds of dollars,” the letter explained. The broader economy: But the pains goes further than just residential users of refrigerators and air conditioning. “So too will millions of businesses and property owners that rely on air-conditioning or refrigeration,” including hotels, restaurants, office buildings, rail and truck refrigerated transport, and public buildings, such as schools, churches, theaters, and indoor sports facilities, the letter states. Sed contra: George David Banks, a former advisor to Trump on environmental issue, writes in today’s Washington Examiner that the Kigali agreement will help American firms increase their market share and hobble foreign manufacturers that were hoping to hone in on their soon-to-expire patents. CONSERVATIVE CLEAN ENERGY BEEFS UP ITS RANKS WITH SENIOR REPUBLICAN ADVISER: A coalition of conservative energy groups is adding Brittany Zwierzchowski Tisler, a top Republican consultant, to its ranks. 20 states: The Conservative Energy Network, a non-profit coalition of 20 state-based conservative clean energy and energy efficiency organizations, on Monday announced that Zwierzchowski Tisler would be its new executive director. Republican consultant: Zwierzchowski Tisler had been a senior associate at the Sterling Corporation, described as a top Republican political consulting firm in Lansing, Mich., where she specialized in clean energy and energy efficiency advocacy. From 7 to 20: She also more recently helped “found and expand” the Conservative Energy Network from just seven states to 20, and had directed communications for the Michigan Conservative Energy Forum. New Midwest chief: The network also announced that Larry Ward, who in 2013 helped launch the nation’s first state-based conservative clean energy organization, “will oversee the organization’s seven Midwest states, as well as further develop capacity and manage expansion and partnership opportunities throughout the region.” WHITE HOUSE SAYS GRID THREATS FROM SPACE ARE A MATTER OF NATIONAL SECURITY: The White House says weather in outer space presents a real danger to the nation’s electricity grid. The White House Office of Science and Technology Policy detailed the findings in new report it sent to Congress on Friday with little fanfare. Danger, danger: “Space weather, a natural source of electromagnetic pulse (EMP), can disrupt, degrade, or damage infrastructure and technology systems, including the electrical power grid,” the report’s executive summary read. Must prepare: This makes “preparing for space weather events critical to national security,” the report said. It said a space weather event in 1989 caused a blackout in Quebec, affecting more than six million utility customers. Communication at risk: “Space weather can blackout air traffic control and high-frequency communications systems,” it explained. “Beyond terrestrial systems, space weather can affect satellite systems.” Self-driving cars at risk: Even technology innovations, such as autonomous vehicles, are in jeopardy from space weather, because the cars rely on communications systems and GPS for positioning, navigation, and timing services. The White House cited the report on Monday in a review of accomplishments it made in June. HAWAII TO BAN SUNSCREENS HARMFUL TO CORAL REEFS: Major sunscreen brands will soon have to reinvent their products in Hawaii or risk being taken off the shelves due to a new piece of legislation aimed at protecting coral reefs. The problem: The bill is based on research that finds two chemicals contained in many sunscreens, oxybenzone, and octinoxate, to have “significant harmful impacts on Hawaii’s marine environment and residing ecosystems, including coral reefs that protect Hawaii’s shoreline,” the proposed law says. According to a 2015 study, “some 14,000 tons of sunscreen lotions wind up in coral reefs around the world each year,” NPR reported. “The ingredient oxybenzone leaches the coral of its nutrients and bleaches it white. It can also disrupt the development of fish and other wildlife.” Both oxybenzone and octinoxate are commonly found in popular sunscreen brands from Banana Boat to Copper Tone, but certain over-the-counter products will still be permitted for patients with a prescription from a licensed health care provider. RUNDOWN Wall Street Journal Russia takes outsize role in boosting oil supply Reuters Shouting CEO, changing rules: inside Tesla’s Model 3-building sprint Associated Press Japan OKs ambitious nuke energy goals, plutonium reuse plan Washington Post The mysterious disappearance of the phrase ‘climate change’ from a CDC website Associated Press Washington voters likely to take up carbon fee initiative Wall Street Journal Malaysian firm plans to ride higher oil prices with $750 million IPO |
CalendarTUESDAY | July 3 Congress in recess all week. 1 p.m., The Federalist Society’s Environmental Law and Property Rights Practice Groups hosts a teleforum call to discuss Municipality Lawsuits on Climate Change and Public Nuisance. WEDNESDAY | July 4 Happy Independence Day. Enjoy the fireworks! |