Daily on Energy: Trump wants more ethanol meetings after Ted Cruz talks fall apart

Be more of an insider. Get the Washington Examiner Magazine, Digital Edition now.

Be more of an insider. Get the Washington Examiner Magazine, Digital Edition now.  

SIGN UP! If you’d like to continue receiving Washington Examiner’s Daily on Energy newsletter, SUBSCRIBE HERE: http://newsletters.washingtonexaminer.com/newsletter/daily-on-energy/

TRUMP WANTS MORE ETHANOL MEETINGS AFTER CRUZ TALKS FALL APART: No progress was made at a Tuesday meeting held by President Trump on how to overhaul the ethanol mandate, according to Republican Iowa Sens. Chuck Grassley and Joni Ernst. So why were the corn state senators so enthusiastic Wednesday morning about the president’s desire to meet renewable fuel companies Thursday?

Grassley and Ernst said the president asked if he could meet with the ethanol industry and renewable fuel companies to hear how they perceive the need for keeping the nation’s Renewable Fuel Standard intact.

On Wednesday, the two Iowa senators said “no deal” to Republican Sens. Ted Cruz of Texas and Pat Toomey of Pennsylvania on their proposal to cap the price of renewable identification number credits, or RINs, which refiners have to buy to abide by the Environmental Protection Agency’s renewable fuel program.

But Grassley and Ernst, who represent one of the largest ethanol and corn producers in the country, said the proposal was a nonstarter. They said there has been no documented evidence that RINs are having any widespread effect on the refinery industry.

Philadelphia Energy Solutions blamed the credits when it filed for bankruptcy protection last month. But Grassley said the company’s financial trouble is being used as the sole reason to change the program, which makes little sense.

He said capping the price of RINs, or waiving refiners’ need to buy them, would reduce the demand for ethanol and collapse a system that has resulted in no harm.

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.

NUCLEAR REGULATORS SPARK NEVADA IRE WITH TWO-DAY MEETING ON YUCCA MOUNTAIN: The Nuclear Regulatory Commission is holding day two of its meeting to reconstitute the library of documents supporting the Yucca Mountain nuclear waste dump in Nevada, which is supported by President Trump.

• Nevada lawmakers not pleased: Nevada lawmakers are not pleased, calling for the NRC to cease all activities related to rebooting the Licensing Support Network for Yucca, which the Obama administration tore down in 2011.

• Nuclear-powered ‘waste of time:’ Rep. Dina Titus, D- Nev., said the meeting of an advisory board in Rockville, Md., marks “another incredible waste of time and resources” by the Trump administration.

• States must give consent: “Until this administration recognizes the need for a consent-based approach to the siting of nuclear waste repositories, long-term storage issues will never be solved,” Titus said. “It’s a fool’s errand to reconstitute the Licensing Support Network without recognizing the need to amend the Nuclear Waste Policy Act with my consent-based legislation.”

Titus is working to adopt legislation that would put states in control of where a federal nuclear waste repository goes, instead of the 30-year old nuclear waste law that chose Nevada without state consent.

• NRC following the law: NRC says the reboot of the licensing network, which is a library of documents that form the basis of a license to build Yucca Mountain, is being done in line with a D.C. Circuit Court ruling that deemed the Obama administration’s actions in trying to scuttle the waste site illegal.

UTILITIES WANT MORE CONTROL OF THE AIRWAVES: It’s an old fight that is being rekindled during the infrastructure bill debate. It has to do with energy companies wanting control of their own communication bandwidth to support all the new wireless devices needed to keep the power grid humming.

At the heart of the push is the trade group Utilities Telecom Council, which sent a letter to the House Energy and Commerce Committee explaining why energy companies having access to their own communication infrastructure is essential to keeping the lights on, and why they missed an opportunity to address the critical issue at a Tuesday hearing on energy infrastructure.

“Energy providers use [telecom] networks as the backbone for the infrastructure that delivers safe, reliable, and secure energy services,” UTC said in the letter the Energy and Commerce Committee leaders. “These networks are essential for reliability, safety, resilience and security.”

The group pointed out that a Tuesday hearing focused more on transmission and missed an opportunity to address the energy industry’s communication and technology needs, which the Federal Communications Commission has a key role in supporting.

Utilities’ networks typically are not owned by phone companies such as Verizon and AT&T, because they don’t offer the same reliability they need to keep the grid from going dark. That has causes antagonism between the utility industry and big telecom companies. Telecom doesn’t like to be told its services aren’t all that great and that utilities would rather skip them.

HERE’S AN IDEA: MERGE FERC AND FCC: The Utilities Telecom Council says the disconnect between the industries is followed by a disconnect in the federal government. One way to fix it is to form require regular discussions between the Federal Energy Regulatory and the FCC.

• Addressing a ‘disconnect:’ As utilities built and maintained their own networks, “they noticed a disconnect in how their services are valued by the FCC in contrast to other government agencies,” the UTC letter says. “Specifically, the Department of Homeland Security, the Department of Energy, many in Congress and at the White House (under several administrations) consider the electric sector to be among the most critical of all critical industries. Our members meet, and often exceed, strict reliability requirements to keep the power on safely and reliably while at the same time planning for natural disasters and other hazards such as physical and cybersecurity attacks that could result in operational challenges,” it said.

• FCC not on board: But FCC does not agree that electric utilities are that important. Utilities are specifically not acknowledged in how the commission allocates spectrum, or bandwidth, through its auctions, which the utilities need access to maintain their communications systems.

“As policymakers discuss infrastructure proposals, we encourage members [of the committee] to consider the critical nature of energy providers and ensure they have access to suitable spectrum,” the letter said. “Doing so will enable the country to realize its digital future while ensuring safe, secure and reliable delivery of energy services.”

• Congress must order FCC and FERC to talk: A key consideration is directing FCC-Federal Energy Regulatory Commission meetings, the letter outlined.

“Congress should direct the FCC and FERC to meet on a regular basis to discuss issues of shared interest and jurisdiction,” the letter said. “This is especially critical as utilities implement new technologies, such as smart grid, that rely on communications and information technologies and will result in a cleaner, more efficient energy delivery systems.”

DEMOCRATS WARN ZINKE NOT TO CUT OFFSHORE DRILLING PAYMENTS: Top House and Senate Democrats warned Interior Department Secretary Ryan Zinke on Tuesday night to not cut the royalty rate that oil and gas companies pay for offshore drilling in federal waters.

The Interior Department’s Royalty Policy Committee on Wednesday is holding a meeting in Houston to evaluate a proposal to lower the royalty rate companies pay on offshore drilling to 12.5 percent from 18.75 percent, to encourage more U.S. energy production in federal waters.

The proposed amount is the lowest possible rate the government can charge for offshore leases.

• ‘Rob taxpayers’: “This proposal would amount to a giveaway to some of the most profitable companies in the world and rob taxpayers of potentially billions of dollars of revenues over the life of the leases,” said Sen. Maria Cantwell of Washington, the top Democrat on the Senate Energy and Natural Resources Committee, and Rep. Raul Grijalva of Arizona, the top Democrat on the House Natural Resources Committee.

In a letter to Zinke, Cantwell and Grijalva say the royalty committee is “woefully stacked with resource extraction interests, misrepresenting the public and the scope of issues at stake for a full and fair evaluation of potential royalty reforms.”

• Coal rules: The panel also on Wednesday will consider a proposal that would let coal companies set their own rate for coal in royalty calculations.

Zinke last year suspended an Obama administration’s rule that the royalty be based on market prices for coal.

ATTORNEYS GENERAL PROMISE UNRELENTING FIGHT ON TRUMP’S ‘ILLEGAL’ ENVIRONMENTAL MOVES: A coalition of liberal state attorneys general opposing the Trump administration’s rollback of environmental regulations expressed confidence Tuesday that they would emerge victorious in court.

• ‘Tooth and nail’: “We are resolute with our colleagues that we will fight tooth and nail to stop reckless activity by Secretaries Zinke and Pruitt, who not only fail to act as stewards, but joyride around the country on first-class flights consulting with folks on the other sides of these issues and fail to stand up for the American people,” said Maryland Attorney General Brian Frosh, referring to Interior Secretary Ryan Zinke’s and EPA Administrator Scott Pruitt’s frequent use of first-class travel.

• Who’s who: Frosh, a Democrat, on Tuesday participated in a briefing for reporters with colleagues on the sidelines of the National Association of Attorneys General 2018 Winter Meeting in Washington.

He was joined by fellow Democratic state attorneys general Xavier Becerra of California, Maura Healey of Massachusetts, and Karl Racine of Washington D.C.

They have been at the forefront of an organized effort to combat Trump’s push to undo the Obama administration’s environmental legacy.

CALIFORNIA ATTORNEY GENERAL VOWS TO STAND FIRM ON AUTO EMISSIONS RULES: Becerra said Tuesday he would continue to fight the Trump administration if it moves to weaken fuel efficiency rules for cars and trucks.

“It’s pretty clear there is a lot of evidence behind the standards, and it would be tough to simply say you can roll them back,” said California Attorney Becerra told reporters at the National Association of Attorneys General 2018 Winter Meeting.

• Review underway: Last year, Trump charged the EPA with reviewing rules set by the Obama administration that would require automakers to nearly double the average fuel economy of new cars and trucks to 54.5 miles per gallon by 2025.

The EPA has an April 1 deadline to decide whether the regulations covering the 2022-2025 model years should be revised.

• California vs. EPA: California has fought the Trump administration over the proposed weakening of the rules.

EPA HOSTS SAN FRANCISCO HEARING ON CLEAN POWER PLAN REPEAL: The EPA on Wednesday will be in San Francisco to host its third public hearing on its move to repeal the Obama-era Clean Power Plan.

• Battleground: Groups and individuals scheduled to comment on the repeal include liberal donor and climate activist Tom Steyer, the California Public Utilities Commission and the Natural Resources Defense Council.

The EPA had planned only one public hearing on the subject, which it held in November over two days in Charleston, W.Va., the heart of coal country.

But it later scheduled new hearings for San Francisco, Gillette, Wyo., and Kansas City, Mo., after the agency was criticized for not conducting a transparent review process.

• Repeal and replace: The EPA proposed to repeal the Obama-era Clean Power Plan on Oct. 10, with Pruitt saying that the Obama administration based the plan on an expansive and illegal interpretation of the Clean Air Act.

Pruitt is expected to propose a modest version of the Clean Power Plan after repealing it.

ENVIRONMENTALISTS LOSE CHALLENGE TO TRUMP’S BORDER WALL: The federal judge whom President Trump once disparaged as “Mexican” ruled in favor of his administration’s efforts to build the U.S.-Mexico border wall.

U.S. District Judge Gonzalo Curiel in San Diego on Tuesday sided with the Homeland Security Department, which leaned on waivers granted by Congress in 1996 and 2005 to bypass state and federal environmental statutes for construction along 14 miles of the border.

• Bottom line: The Trump administration can continue waiving environmental regulations to build the border wall.

• Appeal coming: Plaintiffs in the case included the Center for Biological Diversity, the California Coastal Commission, and Becerra, the California attorney general. The Center for Biological Diversity said it will appeal Curiel’s ruling.

• Hold up: Trump, meanwhile, tweeted on Wednesday morning that he wants the whole wall across the southern border with Mexico approved by Congress before Homeland Security builds the California piece.

URANIUM MINER WINS APPROVAL TO EXPAND MINE OUTSIDE BEARS EARS: Uranium Miner Energy Fuels won federal approval on Tuesday to expand the Daneros mine, which is just outside the former boundaries of the Bears Ears National Monument.

• Open for business: Trump on Dec. 4 signed a proclamation cutting Bears Ears by more than 1.1 million acres, or 85 percent, and creating two smaller monuments instead.

His rollback of Bears Ears became official this month, allowing citizens and companies to make new oil, natural gas, and drilling claims.

But no mining applications have been filed for parts of the Bears Ears National Monument that are no longer protected.

• Uranium production ‘critical’: The ruling by the Bureau of Land Management allows for Energy Fuels to expand the mine if it implements additional emissions controls. The mine is currently not operating due to low uranium prices.

The Interior Department has included uranium on a draft list of “critical minerals” important to national security that should be produced more in the U.S.

• Status quo: Energy Fuels lobbied the Trump administration for the Bears Ears rollback, saying it would give easier access to the area’s uranium deposits and help it operate a nearby processing mill.

A spokesman for the company said it has no current plan to re-open the Daneros mine unless economics change.

PUERTO RICO CRIES FOUL AFTER TREASURY REDUCES DISASTER LOAN: The U.S. Treasury has delayed, cut in half, and imposed special conditions on the post-hurricane loan that Puerto Rico was supposed to receive from the U.S. government, Gov. Ricardo Rossello said in a letter to congressional leadership Tuesday.

The governor is hoping his letter will urge Senate Majority Leader Mitch McConnell, R-Ky., Senate Minority Leader Chuck Schumer, D-N.Y., House Speaker Paul Ryan, R-Wis., and Minority Leader Nancy Pelosi, D-Calif., to intervene.

• ‘No doubt’ help needed: “The damage and devastation from Hurricanes Irma and Maria left no doubt that Puerto Rico was in desperate need of federal assistance to restore and maintain essential services for the Island’s 3.4 million residents,” Rossello wrote.

Congress approved a loan in October to aid Puerto Rico in rebuilding efforts after Hurricanes Irma and Maria destroyed the U.S. territory, including its electricity grid.

• Unmet promise: However, four months after the disaster loan was approved by Congress, the bankrupt island has still not received the money.

Rossello said in his letter to congressional leadership that the Treasury told him last week it wanted to cut the aid fund from $4.9 billion to $2.065 billion and impose special terms and conditions.

RUNDOWN

New York Times Why build Kenya’s first coal plant? Hint: think China

Reuters WHO cancer agency “left out key findings” in safety review of benzene, a constituent of crude oil

Post & Courier Fraudulent emails backing South Carolina utility sale still being sent to lawmakers

Seattle Times Vancouver Energy ends bid to build nation’s biggest oil-train terminal along Columbia River

Bloomberg These Republican climate hawks get low environmental marks

Palm Beach Post Despite solar energy progress, Florida lags behind other states

Calendar

WEDNESDAY, FEB. 28

10 a.m., 406 Dirksen. The Environment and Public Works Committee will hold a hearing called “Oversight: FBI Headquarters Consolidation Project.”

epw.senate.gov/public/index.cfm/hearings?ID=0DAFB57A-D27A-4EF8-B211-E3DA7B29F58A

10 a.m., 366 Dirksen. Senate Energy and Natural Resources Committee’s subcommittee on Water and Power holds a hearing on infrastructure bills addressing the nation’s hydropower resources.

energy.senate.gov/public/index.cfm/hearings-and-business-meetings?ID=7B42576B-8405-425F-9098-09E5DDEA3570

All day, J.W. Marriott, Washington. The Distributed Wind Energy Association holds its annual Business Conference and Lobby Day, Feb. 28-March 1.

distributedwind.org/event/distributed-wind-2018/

All day, 901 Massachusetts Ave. NW. The Fourth Powering Africa: Summit will take place from Feb. 28-March 2 at the Marriott Marquis Hotel. poweringafrica-summit.com/  

All day, 1127 Connecticut Ave. NW. The American Public Power Association holds its annual Legislative Rally in Washington.

publicpower.org/event/legislative-rally#event-3

All day, St. Regis Hotel. The Association of California Water Agencies holds its 2018 Annual Washington Conference through March 1.

acwa.com/events/acwa-dc2018/

THURSDAY, MARCH 1

10 a.m., 366 Dirksen. Senate Energy and Natural Resources Committee holds a hearing to examine “Cybersecurity in our Nation’s Critical Energy Infrastructure.”

energy.senate.gov/public/index.cfm/hearings-and-business-meetings?ID=6457EC01-9EC8-4AFD-9854-9C1611AB9D7F

10 a.m., 406 Dirksen. The Senate Environment and Public Works Committee holds a hearing called “The Administration’s Framework for Rebuilding Infrastructure in America.”

epw.senate.gov/public/index.cfm/hearings?ID=993C02C3-83B9-473D-B4FC-17B301D39397

MONDAY, MARCH 5

All day, Texas. The Cambridge Energy Research Associates (CERA) consulting firm hosts CERAWeek in Houston, the annual energy event that attracts energy industry CEOs and policymakers for five days of discussions, panels, and major keynote addresses. A number of senators will be attending with Interior Secretary Ryan Zinke and the head of Saudi Aramco.

ceraweek.com/agenda/

Related Content