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FIRST ENERGY SENDS A MESSAGE TO TRUMP IN STRING OF COAL PLANT CLOSURES: The Ohio-based First Energy announced a string of coal power plant closures on Wednesday night, but said it could reverse its decision if the Trump administration takes action. What does it take to get a bailout? The utility had been lobbying the Trump administration over the last several months to implement a plan to save the plants. Trump ordered Energy Secretary Rick Perry to develop a plan to save both coal and nuclear plants on June 1. Critics have called the Trump plan a “bailout” for uneconomic power plants that cannot compete in a changing energy market dominated by low-cost natural gas. The market is failing coal: The utility said in a statement that it “is closing the plants due to a market environment that fails to adequately compensate generators for the resiliency and fuel-security attributes that the plants provide.” But a fuel-security plan is on Trump’s mind: The president said earlier this month that he was preparing to release what he called a “military plan” to help coal plants. The plan is expected to subsidize the ailing coal units based on a national security argument the White House is developing. The utility wants a market that values security: “As with nuclear, our fossil-fueled plants face the insurmountable challenge of a market that does not sufficiently value their contribution to the security and flexibility of our power system,” said Don Moul, First Energy’s president of its generation companies and its chief nuclear officer. “The market fails to recognize, for example, the on-site fuel storage capability of coal, which increases the resilience of the grid.” The message to Trump: The company said that based on the timing of any federal policy action, these decisions could be “reversed or postponed.” 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. … MEANWHILE, THE EPA IS READYING TO ROLLBACK MORE COAL RULES: The Environmental Protection Agency said earlier Wednesday that it will be revisiting the 2011 air pollution rule for coal plants, which is blamed for closing dozens of power plants around the country. Stopping a trainwreck seven years later: The Obama-era rule was part of what the utility industry once dubbed the “train wreck,” a group of EPA environmental rules that together required either massive upgrades to power plants, or for companies to shutter them. What rule is it, again? The one that EPA is targeting is the Mercury and Air Toxics Standards, or MATS, which was meant to control air emissions and other pollutants like mercury from, primarily, coal and oil power plants. Is the war on coal over, yet? The MATS rule is a prime component of what is commonly referred to by the coal industry and its supporters as the “war on coal.” President Trump and his Cabinet have frequently declared that the “war on coal is over.” Is it too late to act? The utility industry told EPA recently it already spent $18 billion to comply with the regulations, and states have been meeting their air pollution targets based on those investments and the rules remaining law. The industry wants EPA to evaluate technical changes to the rules, but “leave the underlying MATS rule in place and effective,” according to a letter sent to EPA recently by all segments of the utility industry. IRAN’S EMISSIONS SURGE MAKES CALIFORNIA LOOK GOOD: STUDY: Iran was one of the biggest culprits behind a spike in carbon emissions in 2015, right behind China and India, while California and U.S. emissions were falling, according to a new study released on Thursday. Tracking a Republican-signed climate law: The study, produced by the consulting firm Beacon Economics for the innovation group Next 10, tracks California’s decadelong implementation of its climate change law, AB 32, signed by former Republican Gov. Arnold Schwarzenegger. The new greenhouse gas inventory details how the Golden State ranks when compared to 50 countries by using the most recent data compiled by the California Air Resources Board, the Environmental Protection Agency, and other government entities. Golden state ranks as 18th largest polluter: “When looking at the global level, California was still the 18th-largest polluter in terms of carbon dioxide emissions from fossil fuel activities among the top 50 global polluters in 2015,” the study said in its executive summary. But the trifecta of big emitters included Iran: At the same time, however, carbon dioxide emissions from fossil fuels rose 15 percent, driven by China, India, and Iran, which led countries in greenhouse gas emissions that year, the study said. 2015 was the same year that nearly 200 countries signed onto the Paris climate change accord, which President Trump decided to later exit in 2017. FERC ALLOWS CONSTRUCTION ON MOUNTAIN VALLEY PIPELINE, SPARKING TWITTER DEBATE AMONG COMMISSIONERS: The Federal Energy Regulatory Commission on Wednesday allowed construction to continue on most of the Mountain Valley Pipeline, a change in course after it had issued a stop work order earlier this month. The 303-mile, $3.5 billion Mountain Valley Pipeline would carry shale natural gas from West Virginia to southern Virginia. FERC in early August had suspended construction after a federal appeals court rejected prior environmental approvals from the Bureau of Land Management and Forest Service for sections of the pipeline that crossed federal land. Why FERC changed its mind: But on Wednesday, FERC staff said BLM had appropriately addressed questions about the feasibility of having an alternative route cross the federal land. BLM said greater use of existing rights-of-way across federal lands would be impractical, meaning the current route should continue as planned. FERC is still blocking construction on a small section of the pipeline where permits are still needed. A new tradition of Twitter fights: The decision by FERC staff prompted a Twitter argument among Republican and Democratic commissioners. In recent months, Democratic commissioners Richard Glick and Cheryl LaFleur have dissented on pipeline approval decisions, and taken their concerns public — often to Twitter — which is unusual for the low-key agency. “We have significant concerns with today’s decision to allow construction to resume while required right-of-way and temporary use permits remain outstanding,” Glick and LaFleur said in a joint statement, parts of which they posted to Twitter. The duo added it should be up to commissioners, not FERC staff, to decide whether to allow construction of a pipeline to proceed after a court vacates permit approvals, as what happened in the Mountain Valley case. Republican FERC chairman Kevin McIntyre, and fellow GOP commissioner Neal Chatterjee, soon responded to their colleagues’ tweets with posts of their own defending the decision to resume pipeline construction, and the authority of FERC staff. “Agree w/ Chairman @McIntyreFERC that most appropriate approach here is for the Commission to rely on @FERC career staff’s thoughtful, expert judgment on mitigation of #environmental impacts,” Chatterjee said in a Twitter post. How to mend a Twitter fight: The commissioners concluded their Twitter tiff amicably, with Chatterjee tweeting at LaFleur and Glick that he appreciated their concerns. “Don’t @ me, bro,” LaFleur replied back, punctuating the lighthearted post with a winking face emoji. CANADA COURT REJECTS GOVERNMENT’S APPROVAL OF TRANS MOUNTAIN PIPELINE: Canada’s Federal Court of Appeal on Thursday rejected the government’s approval of the controversial Trans Mountain pipeline, halting construction. The court ruled that the National Energy Board erred in a review of the $7.4 billion project that determined it would not have a significant environmental impact. The federal cabinet relied on that review when it gave final approval to the project in November 2016. The appeals court also determined the Canadian government, led by liberal Prime Minister Justin Trudeau, did not properly consult with indigenous people who oppose the pipeline. Trudeau badly wants the pipeline: In May, the Canadian government announced it bought the Trans Mountain pipeline for $3.4 billion from developer Kinder Morgan to ensure a planned expansion of it got built. Trudeau has said the pipeline expansion is “economically necessary,” promising it would create tens of thousands of jobs. But Texas-based company Kinder Morgan threatened to halt its proposed expansion of the Trans Mountain pipeline because of opposition from the provincial government of British Columbia, which fears potential spills along a coastline that attracts tourists. Two sides to the pipeline fight: The Trans Mountain expansion would nearly triple the amount of crude flowing from Alberta’s oil sands to a port near Vancouver, to 890,000 barrels a day from 300,000. Canada has the world’s third-largest oil reserves, and 99 percent of its exports go to refiners in the U.S. Indigenous leaders, concerned about threats to their native lands, and environmentalists also oppose the expanded pipeline and some have threatened to stop it by chaining themselves to construction equipment. TRUMP TO NOMINATE CENTRIST TO LEAD EPA’S CHEMICAL SAFETY OFFICE: Trump is poised to nominate a centrist to lead the EPA’s chemicals office after he was forced to withdraw his first pick due to insufficient support from senators. The president plans to select Alexandra Dapolito Dunn to lead EPA’s Chemical Safety and Pollution Prevention Office, the Washington Post reported Thursday. She has nonpartisan credentials: Since November, Dunn has been administrator of EPA Region 1, the local office covering the New England area. Prior to that, Dunn served as executive director and general counsel for the Environmental Council of States, a nonpartisan nonprofit that helps states improve their environments. In that role, she helped state governments improve water infrastructure, air pollution, and chemical management, according to her EPA bio. Before that job, Dunn occupied the same role for the Association of Clean Water Administrators. She was also dean of environmental law programs at Pace University. She’s different than the last failed nominee: Dunn’s nonpartisan background will likely please senators, including Republicans, who opposed Michael Dourson, Trump’s first nominee for the chemicals office, because of his ties to industry, forcing him to withdraw. DEMOCRATS QUESTION EPA’S IMPLEMENTATION OF CHEMICAL SAFETY LAW: If Dunn is nominated, Democrats will have plenty of questions for her on how she plans to implement a bipartisan law approved during the last year of the Obama administration, known as the Toxic Substances Control Act (TSCA), that set rules for how the agency determines health and safety risks of chemicals. Democrats say the Trump administration is not faithfully implementing the law. Ten Democrats of the House Energy and Commerce Committee wrote a letter Wednesday to the panel’s Republican chairman, Greg Walden of Oregon, urging him to schedule a hearing on how EPA is managing the TSCA law and accusing the agency of “rubber-stamping” chemical risk reviews. The Democrats said they have been urging Republicans to call a hearing for more than a year. What EPA allegedly is doing differently: The TSCA law required the EPA, under new authority, to evaluate hundreds of chemicals to determine if they should face restrictions or be removed from the market. But the EPA, in its review of the first batch of 10 chemicals, decided in most cases not to consider the effects of indirect exposure to the substances, including possible leaking into the air, ground, and water caused by improper disposal. The agency, according to internal documents obtained by the New York Times, said it would evaluate only direct exposure to the chemicals in the workplace or elsewhere. ANTI-FRACKING MEASURE MAKES THE NOVEMBER BALLOT IN COLORADO: Colorado voters will have a chance to decide in November whether to block drilling in most of one of America’s largest oil and gas producing states. The Colorado secretary of state’s office said Wednesday that opponents of oil and natural gas fracking had obtained sufficient signatures to put the issue on the November ballot. It’s basically a ban: The measure would ban drilling within 2,500 feet of homes, schools, and “vulnerable areas” such as playgrounds. A state analysis shows that if the measure passed, it would block new oil and gas wells on 85 percent of nonfederal land in the state. Colorado is America’s fifth-largest gas-producing and seventh-largest oil-producing state. Consequences of the fracking boom: Oil and gas producers flooded Colorado during the fracking boom of the early 2000s, bringing jobs to the state, and boosting local and state tax revenue. Both of Colorado’s candidates for governor, Republican Walker Stapleton and Democrat Jared Polis, have spoken out in recent weeks against the anti-fracking ballot measure, worried about the economic impact. But opponents say wells are increasingly encroaching on populated areas. They question the safety of oil and gas operations, noting frequent explosions, including a fatal one last year that killed two men and destroyed a home, blamed on a leaky well that wasn’t capped properly. FEDERAL AND STATE OFFICIALS CELEBRATE DEMOLITION OF MARYLAND DAM TOGETHER: In what is being hailed as the largest wildlife restoration project on the East Coast, state and federal officials will gather next week to celebrate the demolition of the Bloede Dam on the Patapsco River just north of Washington. Safety and wildlife is the focus: Demolishing the over 200-feet long Bloede Dam will improve public safety in Patapsco Valley State Park and revitalize fish and wildlife vital to the Chesapeake Bay, according to the group American Rivers that is helping to organize the Sept. 5 event. A model for other states: The dam removal and river restoration is expected to be a model for other states challenged by outdated dams and water infrastructure. Who is expected to attend? A number of Commerce Department officials are invited to attend the event, along with Democratic Sen. Chris Van Hollen and Rep. Elijah Cummings. What about Ellicott City? The dam resides near Ellicott City, Md., where a landmark flooding event ravaged the historic part of town earlier this summer. The city had just recovered from another once-in-a-hundred-years flood just about two years earlier. It isn’t being discussed whether the dam demolition will help the town from being flood prone. Environmentalists blamed the floods on changing weather patterns due to global warming. EPA WATCHDOG TO REPORT ON SCOTT PRUITT’S USE OF ROUND-THE-CLOCK SECURITY: The EPA’s internal watchdog hasn’t forgotten about former Administrator Scott Pruitt. EPA’s inspector general said Wednesday it plans to release a report the day after Memorial Day on former Administrator Scott Pruitt’s use of an expensive round-the-clock security detail. EPA’s inspector general said it will release the report the morning of Sept. 4, along with an accompanying podcast. In case you forgot: Pruitt resigned last month after facing a dozen federal investigations over his spending, first-class travel, and use of security. The EPA’s inspector general in April began investigating Pruitt for his use of the security detail on personal trips to Disneyland, the Rose Bowl, and college basketball games. The EPA spent nearly $3.5 million on Pruitt’s security detail during his first year on the job, including travel and overtime pay. He was the first EPA administrator with that level of security. The EPA justified the constant security presence by saying Pruitt has faced unprecedented threats from people who opposed his deregulatory agenda. CARGO REVENUE HELPS US AIRLINES SOFTEN IMPACT OF HIGHER FUEL COSTS: A sizable increase in cargo revenue helped U.S. airlines curb the impact of higher fuel prices in the first half of 2018, an industry lobbying group said Wednesday. Trump’s policies are risking higher prices: Jet fuel prices in August topped $90 a barrel, a nearly 38 percent climb from the prior year, according to the International Air Transport Association. Driving that increase, among other things, was Trump’s decision to withdraw the U.S. from the Iran nuclear accord and reimpose sanctions. As a result, fuel expenses at U.S. carriers rose 31 percent in the six months through June, compared with a year earlier, according to Airlines for America, which represents domestic companies including United Airlines, Southwest Airlines and JetBlue. What it means for airlines: While that drove operating costs higher, it was softened by an 18 percent increase in freight revenue, partly due to increased e-commerce shipments for wealthier U.S. consumers. Still, U.S. carriers — some of which have slashed profit targets for the year because of fuel costs — say they plan to reduce flights in 2018 and into 2019. BRYCE HAS SOMETHING TO SAY ABOUT U.S. FALLING BEHIND ON NUCLEAR POWER: A new video featuring conservative energy guru Robert Bryce is causing some buzz on Youtube this week. He spoke recently at an event called the Resurgent Gathering. Here are some excerpts:
Bryce is currently a senior fellow at the Manhattan Institute. |
CalendarTHURSDAY | August 30 8 p.m., Salt Lake City, Utah. House Natural Resources Committee holds meeting on “Forum — Catastrophic Wildfire: What Can be Done?” MONDAY | September 3 Labor Day. Federal holiday. |