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COAL HAS NO FUTURE WITHOUT TRUMP SPENDING, MOODY’S SAYS: Coal power plants will continue to wane without federal support to make them viable, the major credit rating firm said in a report on coal Thursday morning.
The report details the economic and policies tools required to keep coal part of the energy mix through the middle of the century.
More carbon capture funds: That means the U.S. needs to provide the research and development support for carbon capture technologies, which the report suggests is the only way to keep coal as part of the grid in a carbon-constrained world.
‘Game changer:’ “The continued development of carbon capture and storage could be a game-changer for U.S. coal producers in the long run, in that it could slow the industry’s decline,” said Anna Zubets-Anderson, the firm’s vice president and senior analyst.
The U.S. and other countries had been pouring money into developing commercially viable carbon capture technology beginning in the last decade. The technology takes carbon dioxide emissions out of a power plant’s emission and injects it underground. Many scientists blame greenhouse gases such as carbon dioxide for raising the temperature of the Earth.
Cuts continue: But policy support for the technology has been declining, even under pro-coal President Trump, whose fiscal 2018 budget proposal cut funding for coal research and development.
Policy support is ‘lacking:’ “However, while many technological barriers to increased deployment of CCS have been lifted, policy support and investment have been lacking,” Zubets-Anderson said.
Carbon capture investment is waning because the U.S., Europe, and China are moving their energy mix away from coal and “toward cost-competitive, often subsidized, alternative fuels,” according to the report.
Coal ‘important’ to grid reliability: Nevertheless, coal plays “an important role in grid reliability and fuel diversity,” according to Moody’s. The move away from coal could change “if its environmental footprint becomes of less concern,” especially if the price of natural gas rises, making coal more economically feasible.
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CLIMATE CHANGE A FACTOR IN ‘DOOMSDAY CLOCK’ MOVING CLOSER TO MIDNIGHT: Climate change and the threat of nuclear war with North Korea drove the Doomsday Clock closer to midnight Thursday morning, the Bulletin of the Atomic Scientists announced.
“Indeed, it has helped bring us as close to midnight as we have ever been during the nuclear age.”
Two minutes to midnight: The bulletin speeded up the time to two minutes to midnight, driven by President Trump’s nuclear tweeting and “fire and fury” remarks aimed at North Korean leader Kim Jung Un, said Rachel Bronson, president and CEO of the Bulletin of the Atomic Scientists.
The clock moved up 30 seconds this year.
Also, the Bulletin said the Trump nuclear posture review “has reversed course” and could stoke a new global arms race.
Clock’s history: The clock is in its 71st year after starting in the 1950s during the Cold War, when the U.S. and Russia were testing ever more powerful nuclear weapons.
GREENS PRESS CONGRESS TO OPPOSE ‘TOXIC’ ENDANGERED SPECIES BILL: More than 200 environmental and other groups called on Congress Thursday morning to oppose legislation being driven by the pesticides industry to ease species protections in support of their products.
“Some members of the pesticide manufacturing industry are proposing legislation that would exempt their products from key Endangered Species Act safeguards,” read a letter sent by the groups to all lawmakers.
“These proposed changes would severely undermine the Endangered Species Act and have devastating consequences for our nation’s threatened and endangered species.”
The 258 groups signing the letter included the Center for Biological Diversity, Center for Food Safety, Defenders of Wildlife, Earthjustice, Natural Resources Defense Council, Sierra Club, the Humane Society and others.
REFINERS FLOOD EPA WITH PETITIONS TO WAIVE RENEWABLE FUEL MANDATE: More than two dozen small refineries are flooding the Environmental Protection Agency with a formal request to have the ethanol mandate waived this year, because of the high cost of complying with the program.
The main concern is the refiners’ increasing reliance on pricey renewable identification number credits, or RINs, which they argue is harming their business and could force them to lay off workers or close.
A small Philadelphia refinery filed for bankruptcy last week. Some suggest the RFS was partly to blame.
FLORIDA LAWMAKERS DEMAND OFFICIAL ACTION FROM ZINKE ON OFFSHORE DRILLING PLAN: A bipartisan group of Florida lawmakers urged Interior Secretary Ryan Zinke on Wednesday to formally remove the state from his five-year offshore oil and gas drilling plan.
An Interior Department official said last week that Zinke’s announcement that Florida’s shores are “off the table” for oil and natural gas drilling does not represent official policy and is subject to official review.
The letter was signed by 22 of Florida’s 27 congressional delegation members, including Sens. Marco Rubio, a Republican, and Bill Nelson, a Democrat.
FLORIDA REPUBLICAN URGES TRUMP TO RESTORE OFFSHORE SAFETY RULES: Rep. Vern Buchanan, R-Fla., on Thursday sent Zinke a formal letter of protest against the Trump administration’s move to weaken offshore drilling safety standards imposed after the Deepwater Horizon disaster.
“Now is not the time to place lives and our environment at risk by lifting these important safeguards,” Buchanan said in his letter.
Among the proposed safety changes, the Interior Department would eliminate a provision requiring third-party inspectors of certain safety equipment, such as a blowout preventer device, be certified by its safety bureau. The blowout preventer broke at the bottom of the sea in the Deepwater Horizon incident, spewing almost 4 million barrels of crude oil into the Gulf of Mexico.
The public comment period on the agency’s proposal closes Monday.
METHANE DOWN, PRODUCTION UP IN TEXAS: Methane emissions are falling in several of Texas’ largest oil- and natural gas-producing counties even as production is increasing, according to a new analysis published Thursday by Texans for Natural Gas.
Among the largest natural gas-producing counties, methane emissions between 2011 and 2016 dropped by more than 211,000 metric tons of carbon dioxide equivalent, a more than 51 percent decline.
For example, Midland County, the top oil-producing county, produced nearly 73 million barrels of oil in 2016, roughly a 296 percent increase from 2011. Over the same period, methane emissions from oil and gas in Midland County fell by 20 percent.
Powerful pollutant: Methane is the main component in natural gas. It is more potent than carbon dioxide, although its emissions are relatively short-lived.
The Trump administration is trying to repeal Obama-era methane emissions, but many companies have pledged to take more limited action to combat it on their own.
GM, TOYOTA OFFICIALS PUSH SENATE TO HELP EV GROWTH: A senior General Motors official pushed the Senate Thursday to “help sustain continued growth” in electric vehicle adoption by helping facilitate the building of charging stations across the nation.
“On infrastructure, this committee has a unique opportunity to lay the foundation for the future,” said Britta Gross, director of GM’s advanced vehicle commercialization, in testimony before the Senate Energy and Natural Resources Committee during a field hearing at the Washington Auto Show.GM has announced plans to introduce at least 20 new all-electric vehicles to the market by 2023.
Last year, Americans bought nearly 200,000 electrified vehicles from more than a dozen manufacturers.
Moody’s predicted this week that electric vehicles, which are now less than 1 percent of global car sales, will grow to 17 to 19 percent of new vehicle sales by 2030.
Toyota talks EVs: A top executive of Toyota, meanwhile, stressed his company’s commitment to electrifying the auto industry.
In December, Toyota announced its target to sell 5.5 million electrified vehicles globally per year globally by 2030. Toyota plans to introduce 10 new battery-powered electric vehicles by the early 2020s.
Robert Wimmer, director of energy and environmental research for Toyota’s North American unit, urged senators to consider the potentIal of hydrogen fuel cell vehicles, not just EVs.
“To ensure the U.S remains competitive in this space, the federal government needs to take a much more proactive role supporting hydrogen infrastructure growth,” Wimmer said in his testimony. “Without robust federal support for hydrogen infrastructure, possibly part of a national infrastructure program, the numbers of fuel cell vehicles on our roads will remain modest.”
‘Neutral policies’: Sen. Lisa Murkowski, R-Alaska, chairwoman of the Energy and Natural Resources Committee, expressed support for electric vehicles, but vowed to pursue “neutral” policies.
“This is exciting time for the auto sector,” Murkowski said. “Battery prices are falling, a new generation of batteries are powering electric vehicles. Consumption has increased for alternative fuel vehicles. Here in the U.S., we are going to do what we do best, and that’s innovate. It’s important our federal policies are modern, neutral and working as intended.”
FOSSIL FUELS CAN PROVIDE ‘BETTER QUALITY OF LIFE,’ PERRY TELLS DAVOS: Energy Secretary Rick Perry told world energy leaders Wednesday that the U.S. will rely on fossil fuels for decades to come, and framed exports of crude oil, natural gas, and coal as a core component of President Trump’s “energy dominance” agenda.
“We are blessed to be in countries with a substantial ability to deliver the people of the globe a better quality of life through fossil fuels,” Perry said during an energy-focused panel at the World Economic Forum in Davos, Switzerland.
Combined, the three countries represent more than one-third of global oil production.
FEAST OR FAMINE? Perry at the panel downplayed concerns that an expected surge in U.S. output could spoil an agreement between OPEC and non-OPEC nations, such as Russia, to curtail production to drive up global oil prices.
The U.S. is expected to reach a historic high above 10 million barrels of oil production per day in 2018, an amount that would overtake Saudi Arabia and rival Russian oil production.
Not afraid: The Saudis and Russians also said they are not afraid of exploding U.S. production, citing rising global demand.
“For the U.S. to regain and even to exceed some of its market share in a much bigger market doesn’t necessarily present a threat to other producers,” al-Falih said, predicting world oil demand will hit 125 million barrels a day in coming years. It’s currently at about 100 million barrels. “In the overall global supply-demand picture, it is not going to wreck the train. We should not be scared.”
CALIFORNIA SUES TRUMP ADMINISTRATION FOR REPEALING FRACKING RULE: California sued the Trump administration in federal court Wednesday for repealing the Obama administration’s 2015 fracking rule regulating oil and natural gas drilling on federal lands.
“Once again, President Trump and Interior Secretary [Ryan] Zinke didn’t let the law or facts get in their way in their zeal to repeal the 2015 Fracking Rule,” said Attorney General Xavier Becerra, in announcing the lawsuit, filed in the U.S. District Court for the Northern District of California.
The legal argument: California argues repealing the rule ignores environmental risks and is “devoid of any reasoned analysis,” violating the Administrative Procedure Act, federal land management statutes, and the National Environmental Policy Act.
Greens also sue: A coalition of tribal and environmental groups filed their own lawsuit against the Trump administration for repealing the fracking rule in the same federal court.
REPUBLICAN SENATORS DRAFTING LETTER TO OPPOSE TRUMP TARIFFS: Republican senators are preparing a letter expressing opposition to Trump’s decision this week to impose tariffs on imported solar panels and washing machines.
The senators will argue the tariffs could start a trade war, threaten the American economy, and harm U.S. workers, the Washington Post reported.
“There won’t be a trade war,” Trump told reporters in the Oval Office, after signing the proclamations imposing tariffs. “Our action today helps to create jobs in America, for Americans.”
GORE SAYS TRUMP SOLAR DECISION COULD HAVE BEEN WORSE: Climate change activist and former Democratic Vice President Al Gore said Trump’s solar tariff decision could have been worse, in comments at the World Economic Forum in Davos.
“I don’t typically defend him. [But] I will say, in this case, it really did not start with him,” Gore said during a panel discussion, according to Politico. “This was a trade action brought by private companies. They chose a kind of midpoint in the range of alternatives … It could have been handled differently, should have been handled differently, but it’s not an utter catastrophe.”
Trump on Tuesday announced 30 percent tariffs on solar panels for next year, less than the 50 percent duty he could have imposed under U.S. law.
RUNDOWN
Wall Street Journal California, Trump officials weigh vehicle-emissions rule changes
New York Times Coal’s decline seems impervious to Trump’s promises
Reuters Saudi Aramco seeks to expand in U.S., says Trump is pro-oil
Press Herald Maine governor blocks new wind projects
Post and Courier Lack of trust from South Carolina leaders could doom Dominion’s deal for Scana after canceled nuclear project
Wall Street Journal Germany falling short of emissions targets
Calendar
THURSDAY, JAN. 25
8 a.m., 2121 P St. NW. Energy Department holds the Wind Industry Partnership Summit to share innovative technologies that may be beneficial to your firm and engage industry leaders in a dialogue about the future of public research and development laboratory R&D investments, Jan. 24-25.
10 a.m., 801 Mt. Vernon Place NW. Senate Energy and Natural Resources Committee holds a field hearing, called “The Road to Tomorrow: Energy Innovation in Automotive Technologies,” to examine the opportunities and challenges facing vehicle technologies, especially energy-relevant technologies.
All day, 1001 16th St. NW. The U.S. Conference of Mayors convenes in Washington through Jan. 26 to discuss local leadership. Bipartisan mayors will host a series of discussions on environmental issues including climate change, energy, sustainability, food policy, resilience, and disaster recovery.
All day, 1767 King St., Alexandria. The Institute for Nuclear Materials Management and the U.S. Nuclear Infrastructure Council holds the 33rd Spent Fuel Management Seminar through Jan. 25 at the Hilton.
inmm.org/Events/Spent-Fuel-Seminar.aspx
TUESDAY, JAN. 30
10 a.m., 366 Dirksen. The Senate Energy and Natural Resources Committee holds votes on Trump Energy and Interior nominees, including: Melissa Burnison to be assistant secretary of Energy for Congressional and Intergovernmental Affairs; Susan Combs to be assistant secretary of the Interior for Policy, Management, and Budget; Ryan Nelson to be solicitor for the Department of the Interior; and Anne White to be assistant secretary of Energy for Environmental Management.
10 a.m., 2318 Rayburn. The House Science, Space, and Technology Committee will hold a hearing titled “Department of Energy: Management and Priorities.” science.house.gov/legislation/hearings/full-committee-hearing-department-energy-management-and-priorities
All day, Altoona, Iowa. Iowa Renewable Fuels Summit kicks off at the Meadows Conference Center.
2 p.m., 1324 Longworth. The House Natural Resources Committee’s subcommittee on federal lands holds a legislative hearing on a bill to create the first tribally managed national monument — the Shash Jáa National Monument and Indian Creek National Monument, formerly part of Bears Ears National Monument.
