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IN ACCUSING CHINA OF MEDDLING IN MIDTERMS, TRUMP RISKS ENERGY DOMINANCE AGENDA: President Trump on Wednesday accused China of meddling in the upcoming midterm elections, “because I am the first president to challenge them on trade,” an allegation that could imperil a relationship that would be critical to Trump’s energy agenda.

He made the accusation at a special meeting of the United Nations Security Council in New York, while releasing few details of the investigation on which he based his remarks.

Trump explained that China doesn’t want Republicans to win in the midterms, fearing it will embolden his administration.

The statements signal that discussions between the U.S. and China about ending the trade war have reached a new level of intransigence and a definite impasse, in which Trump’s proposed new tariffs on an additional $267 billion of Chinese goods could become a reality sooner than later.

That could force China to begin playing hardball against U.S. oil, coal, and natural gas imports, which would stifle demand growth at least in the medium term.

“If eventually carried out, Trump’s latest threat could result in tariffs on all Chinese goods entering the US,” read a new report from the French research think tank IFRI.

So far, China has retaliated and imposed tariffs on $60 billion in U.S. goods, including a 10 percent duty on liquefied natural gas imports, according to the think tank. But further retaliation from another round of Trump tariffs could tip the balance for the world economy, according to IFRI.

That would be bad news for oil demand: “[T]he latest tariffs announced by President Trump could derail the global economy upswing and translate, in the medium term, into lower global crude oil and energy demand growth and thus exert downward pressure on prices,” the report said.

Oil prices are already rising above $80 per barrel due to U.S. sanctions on Iran, with analysts predicting the price rising to $100 per barrel in the coming months.

Clean energy would also be hurt: Earlier this week at the U.N., Indonesian Vice President Jusuf Kalla said the U.S. and China “trade war” will make it harder for overall exports to China, and could undermine the U.N.’s sustainable development goals.

He didn’t go into much detail, but his country is gearing up to become the largest renewable fuel producer in the world, while also being the seventh largest exporter of natural gas in the world, and a top exporter of coal. Indonesia is also invested in making coal cleaner through technologies that capture carbon dioxide from coal plants.

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RYAN ZINKE OPENS CLEAN ENERGY WEEK BY SPARRING WITH PROTESTERS: Interior Secretary Ryan Zinke blasted protesters Wednesday for interrupting a speech he delivered on clean energy, before launching into an off-the-cuff prognosis of the state of the nation.

“People can’t have a conversation or debate,” Zinke said, after two protestors stopped his speech at the National Press Club in Washington D.C. as part of the second annual National Clean Energy Week.

One spoke about Zinke’s ties to the fossil fuel industry. Another, off topic, complained about Trump’s Supreme Court nominee Brett Kavanaugh.

“That is so inappropriate. Please sit down,” Zinke told the protestors, as he audibly sighed at their disruption. “It is never nice to be rude.”

A call for more open debate: Zinke used the disruption to riff off-the-cuff against the polarization of politics.

“When you have the anger and the lack of civility,” he said, “what happens is decisions don’t get made and we won’t move forward as a country.”

Boasting about Trump’s clean energy credentials: After the protesters were quickly escorted away, Zinke boasted about the Trump administration’s work to promote clean energy, which is overshadowed by its focus on helping coal plants, and rolling back regulations to combat climate change.

Pulling back on offshore drilling: Zinke also continued to downplay a proposed plan to from last year to open nearly all federal waters to oil and gas drilling. Zinke is likely to scale back the plan when he finalizes it, in response to complaints by coastal governors and lawmakers from both parties who worry about spills on their shores.

MACRON CALLS FOR BOYCOTT OF TRADE DEALS WITH US TO PUNISH TRUMP OVER REJECTING PARIS DEAL: President Emmanuel Macron of France on Tuesday called for countries to refuse to sign trade deals with countries that don’t comply with the Paris climate change accord, a not-so-subtle dig at Trump, whose his administration is the only one in the world to reject the deal.

“Let’s stop signing trade agreements with those who don’t comply with the Paris agreement,” Macron said during a speech at the UN General Assembly in New York.

Charting the Paris targets: The U.S. is on pace to meet two-thirds of the its carbon emissions reduction goals under the Paris agreement even after Trump rejected it, according to a recent report by a group of governors and mayors still following the accord. But that means the U.S. will fall short of meeting the Paris targets of lowering the nation’s greenhouse gas emissions 26 to 28 percent below 2005 levels by 2025.

Industry responds to Macron: Industry officials were quick to criticize Macron for his attack on Trump, noting that countries are not fulfilling their Paris commitments.

“I find it funny and kind of ironic that Macron says he won’t deal with folks that aren’t following Paris,” said Frank Maisano, a communications specialist with Bracewell LLP. “Since most of the world isn’t it isn’t cutting their emissions nearly as much as the U.S. is already. Is anybody really following Paris in deeds rather than words?”

More climate action on deck: Macron will continue his climate advocacy on Wednesday at the UN, when he helps host the “One Planet Summit” with UN Secretary General António Guterres, World Bank President Jim Yong Kim, and Michael Bloomberg, the former New York City mayor.

There, the leaders will discuss how to accelerate implementation of the Paris accord.

TRUMP BECOMES MORE DESPERATE AS OPEC DEFIES HIS ASK FOR MORE OIL PRODUCTION: Trump could become more desperate to ward off high oil prices after he carved out space during his speech at the United Nations in New York on Tuesday to blame the group for high oil prices.

Trump took his frequent criticism of OPEC to the international stage after the group this past weekend refused to commit to more oil production despite the global oil price surpassing $80 per barrel less than two months from the U.S. midterm elections.

Laying out Trump’s options: With OPEC choosing to ignore Trump’s request for more oil, experts say he could become more desperate.

For example, Trump could look to build support for legislation in Congress that would allow the U.S. government to sue OPEC for manipulating the oil market. The House Judiciary Committee has already passed the so-called “NOPEC” bill that would open up the cartel to antitrust lawsuits, potentially leaving it vulnerable to paying billions of dollars in repatriations.

Joe McMonigle, president of the Abraham Group, a consulting firm, and a former chief of staff of the Energy Department in the George W. Bush administration, told Josh that OPEC members fear the potential legislation passing. The Saudis recently hired a lobbyist to campaign against it.

Trump could also order a release of the Strategic Petroleum Reserve, which is meant for an an emergency supply disruption. Critics say it is wrong to use the reserve for political reasons.

OIL INDUSTRY WARNS TRUMP TO TREAD LIGHTLY ON ETHANOL INCREASE: The oil industry and refiners pressed Trump directly on Tuesday not to move forward with a plan the Environmental Protection Agency is expected to release soon to relax restrictions on higher amounts of ethanol in the nation’s gasoline supply.

The plan to increase the availability of 15-percent ethanol fuel blends year round would be too much, too soon, the American Petroleum Institute and American Fuels and Petrochemical Manufacturers said in a joint letter to Trump, representing the oil industry.

EPA is ready to act: Recent reports indicate that EPA is preparing to extend a waiver to allow E15 to be sold year round – relaxing restrictions to it being sold in the summer – with only “minor changes” to Renewable Identification Number market trading, which impacts the cost of the ethanol mandate on refiners.

“Such an approach is insufficient for refiners and inconsistent with your long-standing commitment to finding a solution that meets the needs of both the biofuels and refining industries,” the groups told Trump. “We urge you to not move forward.”

Trump supports the plan to relax restrictions on E15 sales year-round because of its higher Reid vapor pressure rating. He said as much in a recent trip to Iowa, which was followed by the oil industry running a relentless online ad campaign pointing out the problems with the plan.

The letter advised Trump that, without simultaneous reductions in the amount of ethanol required to be blended next year under the Renewable Fuel Standard program, “more E15 could be forced into the market, increasing the risk of consumer misfuelling.”

“In fact, nearly three out of every four cars on the road today are not designed for E15, and several automakers have said that E15 could void car warranties,” the letter continues. “E15 is also incompatible in classic cars, motorcycles, boats, lawnmowers, and power equipment engines.”

EPA ALLOWS E15 TEST MARKET IN NEBRASKA: The EPA’s Region 7 office announced Tuesday that it is allowing Nebraska to create a test market for year-round 15-percent and 30-percent ethanol fuels.

“Today, @EPA approved Nebraska’s request for an exemption to conduct a one-year testing program to assess the effects of E15 and E30 blends on vehicle performance, fuel economy, and emissions control systems in state-owned vehicles,” EPA Region 7 tweeted.

This could be trial balloon for a national policy to come later from Washington. It could also signal that the oil industry’s message of caution is getting through to the administration.

… MEANWHILE, GASOLINE DEMAND GOES THROUGH THE ROOF: The U.S. hit record demand for petroleum products, led by gasoline, in August, the American Petroleum Institute reported on Wednesday in its latest analysis.

The group said it was the strongest demand for petroleum-based fuel of any month since Aug. 2007, reflecting good economic growth, industrial activity, and consumer confidence.

Over the last year, petroleum demand averaged 20.3 million barrels per day, which is an increase of almost 500,000 barrels per day over the same period through August in 2017.

INDUSTRY LAUNCHES NEW CLEAN CAR PUSH AMID TRUMP REGULATION ROLL BACK:  A special commission chaired by the utility industry and automakers launched a national campaign on Wednesday to push the federal government and states to adopt more efficient vehicle technologies, while the Trump administration looks to roll back regulations that would do just that.

The nonpartisan Alliance to Save Energy’s 50×50 Commission on U.S. Transportation Sector Efficiency, which includes a broad coalition of industry, state regulators, and environmental groups, released a set of recommendations in a report, calling on policymakers “to act urgently” to transform the transportation sector.

“Technology is at the core of every transformation, and is particularly central to reimagining mobility and transportation,” said Bert Van Hoof, partner group manager at Microsoft, and a member of the commission.

Industry is growing ‘impatient’: Van Hoof said industry has become “impatient with the current pace of progress.”

A 50 percent boost in energy: The commission’s policies are geared toward improving the U.S. transportation system’s energy use by 50 percent by 2050. That goal doesn’t only apply to cars and trucks, but to all of the nation’s transportation network, including public buses and rail.

What EPA is doing: The report is being rolled out the same week that the Environmental Protection Agency is holding public hearings on its proposed rule to roll back fuel economy regulations from the stricter targets set by the Obama administration.

BMW CURBS 2018 PROFIT FORECAST DUE TO TRUMP’S TARIFFS, NEW EMISSIONS RULES: BMW is lowering its profit target for 2018 as Trump’s tariffs on Chinese goods and metals imports pinch demand.

Revenues will be “slightly lower” this year and profits will be “at least 7 percent,” down from a prior estimate of 8 to 10 percent, the company said in a statement on Tuesday, citing the “continuing international trade conflicts.”

Trump has imposed tariffs on $250 billion in Chinese imports and has threatened to place levies on all the goods the country ships to the U.S. The administration is also weighing a 25 percent tariff on auto imports, on top of separate duties on steel and aluminum.

The automotive industry expects significant impacts from the White House’s trade battle with China. General Motors already lowered its profit target for the year as a result of higher supply costs from the tariffs, and other manufacturers like Fiat Chrysler said they are bracing for the impact in 2019.

DEVELOPERS STILL UNDECIDED ABOUT AMERICA’S ONLY UNDER CONSTRUCTION NUCLEAR PLANT. The developers of Plant Vogtle in Georgia, America’s only under-construction nuclear plant, continue to negotiate whether or how to move forward with finishing the project, after talks that extended into late Tuesday did not reach a conclusion.

Utility Southern Company and the plant’s other developers are trying to reach a deal to limit further cost increases for the $28 billion project. The parties agreed to extend negotiations until 5 p.m. Wednesday.

Southern Company, the largest owner of the project, announced last month that costs for it had increased by $2.2 billion, which prompted a vote on whether to proceed with the plant, including the other two major owners, Oglethorpe Power and the Municipal Electric Authority of Georgia.

The federal government is invested in the plant: The Trump administration has firmly backed, and invested in the plant, providing $3.7 billion in loan guarantees, viewing at as central to keeping alive the promise of clean energy from nuclear power. It has received a total of $12 billion in federal loan guarantees, with the Obama administration also supporting the plant.

It’s crucial to nuclear’s ‘clean energy’ promise: Southern Company has pitched Plant Vogtle since 2009 as a way to revive the U.S. nuclear industry to supplement an aging fleet losing out to lower cost natural gas and renewables. The owners promised that two reactors planned for the site would give the state emission-free electricity for as long as 80 years.

But in March, Westinghouse, the lead contractor on the project that designed the reactors, went bankrupt, imperiling the future of the plant.

Cost overruns forced South Carolina last year to cancel a separate plan for two nuclear reactors in the state after Westinghouse, also the reactor’s designer for that project, went bankrupt.

CHATTERJEE, MURKOWSKI VOICE SUPPORT FOR NUCLEAR POWER: Speaking at National Clean Energy Week on Wednesday, federal officials said a thriving nuclear power industry is crucial for the U.S. to limit carbon dioxide emissions.

“I am worried about what even a slight uptick in the retirement of nuclear units may have on our ability to reduce global emissions,” said Neil Chatterjee, a Republican commissioner of the Federal Energy Regulatory Commission.

Added Sen. Lisa Murkowski, R-Alaska, in a separate speech: “I am pretty aggressive on this. We shouldn’t be sitting back in this area. We have to come up with reasonable policies to help ensure our status for this safe, clean, and reliable technology.”

EPA PLACES HEAD OF CHILDREN’S HEALTH ON LEAVE: The EPA on Tuesday placed the head of its Office of Children’s Health Protection on administrative leave, according to a report by the New York Times.

Dr. Ruth Etzel, a pediatrician and epidemiologist who had been with EPA since 2015, was placed on administrative leave, agency spokesman John Konkus confirmed. He did not provide a reason.

What the office does: EPA’s Office of Children’s Health Protection, created by President Bill Clinton in 1997, focuses on how agency regulations and programs consider the impacts on children, babies and fetuses.

What it means: Critics say the move to place Etzel on leave reflects a broader act by EPA to de-emphasize the children’s office. Konkus denied that claim.

“Children’s health is and has always been a top priority for the Trump administration and the EPA in particular is focused on reducing lead exposure in schools, providing funds for a cleaner school bus fleet and cleaning up toxic sites so that children have safe environments to learn and play,” he told the Times.

RUNDOWN

Wall Street Journal LNG in Europe offers opportunities for U.S., challenges for Russia

New York Times Utilities helped Puerto Rico fix its power grid. Now they face hefty tax bills.

Axios Shell sits out Washington state carbon fight  

Washington Post Climate change is destroying our national parks at an alarming rate, study finds

Bloomberg New climate debate: how to adapt to the end of the world