HAPPENING THIS WEEK: The House is considering a slew of energy-related legislation in what Republicans are dubbing as “energy week” – measures that range from denouncing the Biden administration’s energy policies to rolling back programs within the Inflation Reduction Act.
Majority Leader Steve Scalise said in announcing the agenda at the House GOP’s annual Issues Conference last week that Republicans would be bringing forth a number of measures to “push back against President Biden’s radical, anti-energy agenda.”
Here’s a rundown of what’s being considered this week:
– A bill to repeal the GHG Reduction Fund: Introduced by House Republican Policy Chairman Gary Palmer, this bill would repeal a program included in the IRA that allocated $27 billion to reduce emissions in low-income communities. Competitions for the grants have already been launched and the Environmental Protection Agency has begun reviewing applications.
– A measure to prevent the White House from placing a moratorium on hydraulic fracking: A bill from Rep. Jeff Duncan would prevent a moratorium on fracking unless a ban was enacted by Congress. During his campaign for the presidency in 2020, Biden had promised to ban drilling on federal lands. However, the Biden administration has since announced new lease sales, after a judge blocked the White House’s suspension of new leases on federal lands and waters.
– A permitting package: A package of five bills from Rep. David Rouzer is meant to streamline the nationwide permit process for those seeking project approvals. More specifically, the legislation would direct the EPA to propose any changes to water quality criteria for states through a rule, modify the EPA and the U.S. Corps of Engineers’ permitting process regulating the discharge of dredged or fill material into waters, and instruct the agencies to issue guidance on the implementation of the 2023 “Waters of the United States” rule.
The bill would also modify the National Pollutant Discharge Elimination System program by providing statutory authority for provisions to protect permit holders, and would require the EPA to give written notice two years before a general permit expires.
– Blocking BLM rule: Rep. Lauren Boebert’s measure would block the Bureau of Land Management’s proposed rule reforming the agency’s oil and gas leasing regulations, which would charge companies higher royalties to drill on public land – one of the most ambitious moves by the Biden administration to rein in fossil fuel companies.
Republicans blasted the White House for the move, arguing the rule would stifle energy production and burden small businesses.
– Messaging resolutions: Two resolutions expressing contempt were introduced: One by Rep. Dan Newhouse, which denounces the Biden administration’s energy policies, and calls out the White House for pausing liquified natural gas exports, canceling the Keystone Pipeline project, restricting mining on federal lands, and more. The bill also would pin blame on the White House for high gas prices.
A concurrent resolution was introduced by Rep. Ryan Zinke, which would express disapproval of a carbon tax. The bill presents the argument that a carbon tax would increase energy prices and lead to jobs going overseas. Keep in mind that some Republicans have supported a carbon tax, and have introduced legislation that would enact a version of it.
The reality: None of these measures are going to be taken up by the Democratic-controlled Senate. Still, these messaging bills are a way for Republicans to hit the White House on its policies in time for CERAWeek, a prestigious energy conference that’s being held this week.
Welcome to Daily on Energy, written by Washington Examiner Energy and Environment writers Breanne Deppisch (@breannue_dep) and Nancy Vu (@NancyVu99). Email bdeppisch@washingtonexaminer dot com or nancy.vu@washingtonexaminer dot com 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.
EPA ANNOUNCES BAN ON ‘WHITE ASBESTOS’ LINKED TO U.S. CANCER, DEATHS: The EPA on Monday announced a federal ban on all uses of chrysotile asbestos, which is linked to certain types of cancer and other serious health problems.
Though the EPA banned most forms of asbestos decades ago, use of chrysotile asbestos—or so-called “white asbestos”—has persisted after a federal judge in 1991 blocked EPA from including the material in its larger crackdown.
Through the ban, “EPA is finally slamming the door on a chemical so dangerous that it has been banned in more than 50 countries,” EPA Administrator Michael Regan told reporters on a call Monday previewing the action.
In the three decades since EPA passed the original asbestos regulation, the U.S. has continued to use chrysotile asbestos in certain types of construction and industrial activities due to its resistance to heat, fire, and electric conduction. It has also played a large role in the nation’s chlorine manufacturing sector.
Some industry groups have argued that prohibiting its use could prompt a shortage of clean drinking water in the U.S. But the EPA argued that the harms of using chrysotile asbestos outweigh its benefits – it is the only kind of asbestos still used in the U.S., and is linked to nearly 40,000 deaths every year. It has also been known to cause lung cancer, mesothelioma, and ovarian cancer, administration officials said Monday.
The ban comes as the administration looks to further its action on Biden’s Cancer Moonshot Initiative, and protect Americans from exposure to known carcinogens. Read more from Breanne here.
CHINA LAUNCHES $3.9B POWER TRANSMISSION AND STORAGE PROJECT: China’s largest utility started construction this weekend on a $3.9 billion power transmission and storage project, which, once completed, will span some three provinces from the country’s northern Shaanxi province to the eastern Chinese city of Hefei.
According to the state-run news outlet Beijing Youth Daily, the project will be connected to a 1.2 GW pumped hydropower station that will utilize various mountain-based storage reservoirs. It will also feed off various solar and wind resources being installed in the country. Coal-fired generators will be connected as well for backup generation.
China has added record amounts of wind and solar generation to its power grid in the last 12 months. But the higher renewables share has also cut into the reliable baseload capacity, Bloomberg reports.
OIL PRICES CLIMB AS ATTACKS ON RUSSIAN ENERGY FACILITIES INTENSIFY: Oil prices briefly topped $86 per barrel this morning—the highest price since last November—as investors reacted to Ukrainian attacks on Russian energy infrastructure and Iraq’s new commitment to voluntary oil cuts.
Brent crude futures saw a price hike of more than 51 cents in the early hours of trading before settling slightly lower at around $85.85 per barrel.
Meanwhile, futures for U.S.-based West Texas Intermediate also saw gains of 62 cents, up to $81.66 per barrel, as of early afternoon.
The attacks on Russian oil refineries have added between “$2-$3 per barrel of risk premium to crude last week,” oil market analyst Vandana Hari told Reuters this morning. An analysis conducted by the outlet also found the attacks have idled around 7% of Russian refining capacity for the first quarter of the year.
The Russian outages, and Iraq’s output cut, prompted Morgan Stanley to raise its forecasted prices for Brent crude up by $10 for the third quarter of 2024, to roughly $90 per barrel. Read more on the tighter conditions here.
FOR YOUR RADAR: CERAWeek begins: Top oil and gas executives and senior administration officials will take center stage in Houston today for the first day of CERAWeek, the annual conference hosted by S&P Global and dubbed by some as the “Super Bowl of energy.”
Today’s lineup of speakers includes the CEOs of Exxon, Saudi Aramco, TotalEnergies, Shell, and Petroleo Brasileiro, for the morning session. This afternoon, senior Biden administration officials including Energy Secretary Jennifer Granholm, White House energy adviser Amos Hochstein, and U.S. climate envoy John Podesta will be among those delivering remarks.
Watch this space for developments from the conference.
RUNDOWN
Washington Post It’s never been cheaper to buy an EV. Here’s why.
Financial Times Oil companies expand methane detection campaign in emerging economies
Bloomberg Offshore wind’s next big problem: Not enough ships
E&E News 3 energy issues to watch this spring at DOE, Interior and FERC
