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NOT ALL POLICIES CREATED EQUAL IN AMERICA’S ‘ENERGY REVOLUTION’: A new report by a center-right think tank takes aim at the pros and cons of federal subsidies versus market forces when it comes to the recent U.S. energy boom, while suggesting the Trump administration’s latest push to prop up coal and nuclear plants is the wrong direction to go.

More competition, less subsidy: “When you don’t have competition, and you have a lot of government intervention, you might get the policy outcome that is desired, but you’re not necessarily going to get the most cost-effective policy,” said Philip Rosetti, energy director at the American Action Forum, in an interview with the Washington Examiner, providing an exclusive preview of the findings of his forthcoming new report.

The lessons: The report, “America’s Energy Revolution 101: Lessons Learned,” looks at the policies that led to the dramatic rise in both fossil energy resources from the shale boom and the cost reductions in solar and wind technologies.

Trump’s coal plan: Even though the report does not evaluate President Trump’s latest venture to save uneconomic coal and nuclear plants for national security reasons, Rosetti does concede that his findings are applicable.

Although the particulars of Trump’s proposal with regard to coal and nuclear are not yet known, it is hard to say exactly how the market will be affected, said Rosetti.

‘Raise cost’: “But in general, if you have a government policy, which is forcing a different ordering of capital than what the market finds most efficient, then that is going to raise cost, it’s going to carry inefficiencies, and most likely those are going to get passed on to consumers,” he explained.

Energy prices: “The ‘Energy Revolution’ marked rapidly falling energy prices in oil, natural gas, wind, and solar power, which has resulted in Americans spending $431 billion less on energy annually,” according to the new report’s findings. But not all policies that led to the energy boom are created equal, and the task of policymakers going forward will be to promote those that actually work best for consumers, according to Rosetti.

Bottomline: “Numerous policies contributed to the Energy Revolution, but they were not equally effective,” according to the report’s summary. “Policies aimed at early-stage innovation were enormously beneficial for both the economy and the environment, but policies aimed at expanding government-preferred energy deployments sacrificed economic benefits for environmental ones.”

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WORLD’S OIL CUSHION COULD BE ‘STRETCHED TO THE LIMIT,’ IEA WARNS:

The world’s excess supply of oil may be “stretched to the limit” as Middle East countries and Russia boost production to offset a confluence of output disruptions from major producers.

The International Energy Agency, in its monthly oil market report released Thursday, welcomed the recent deal by OPEC and Russia to increase oil production by a collective 1 million barrels per day to stem rising prices and offset lost barrels in Venezuela, Libya, and Iran.

Cost to produce now: But it warned that the planned production increase “comes at the expense of the0. world’s spare capacity cushion, which might be stretched to the limit.”

“This vulnerability currently underpins oil prices and seems likely to continue doing so,” the IEA said.

Spare capacity is idle production that can be brought online within 90 days.

Rising prices: Until the new OPEC agreement to boost production took effect this month, the oil cartel for the last 18 months had worked with Russia to cut crude production to boost prices that had fallen to below $30 in 2016.

But prices have rallied even more than OPEC expected in recent months, approaching $80 per barrel, as some countries restricted production more than the amount targeted under the agreement, and other unintended supply disruptions have occurred.

Saudis to the rescue?: Saudi Arabia, OPEC’s largest producer, is doing its best to respond, increasing production by 430,000 barrels a day in June — before the new deal came into effect — the IEA said. But OPEC doesn’t have that much excess supply, and its spare capacity could be challenged because of immediate new output.

Saudi Arabia’s extra capacity makes up nearly half of OPEC’s spare output. Its spare capacity fell by 440,000 barrels a day to 1.58 million barrels a day, the IEA said.

“There are already indications from leading producers, particularly Saudi Arabia, its Gulf allies, and Russia, that production is climbing and may reach record levels,” the IEA said. “That prices have remained relatively high reflects various supply concerns, some of which will be with us for some time to come, e.g. Iran and Venezuela, and others that are probably shorter term.”

The Iran question: Looming over losses from Venezuela and Libya is the potential for lost production from Iran.

The U.S. has signaled it wants to reduce Iran’s oil exports to zero and sanction countries that buy crude from Tehran, after leaving the nuclear deal with that country.

The IEA Thursday predicted that Iran’s oil exports could fall by more than 1.2 million barrels per day, which is the amount Tehran lost during the last round of international sanctions against it.

‘Pressure’ remains: The IEA did note some signs of optimism for oil supply, saying disruptions in Alberta, Canada and Brazil could be temporary.

“Some of these supply issues are likely to be resolved, but the large number of disruptions reminds us of the pressure on global oil supply,” the IEA said.

LARGE U.S. UTILITY SAYS PIPELINES ‘REAL’ KEY TO GRID RESILIENCE: Joseph Kelliher, executive vice president of NextEra Energy, a large U.S. utility, said Thursday that strengthening the U.S. pipeline system is the key to making the power grid more resilient.

In saying that, Kelliher, in testimony before the Senate Energy and Natural Resources Committee, took an implicit shot at attempts by the Trump administration to reward coal and nuclear plants for their ability to store fuel for long periods of time on-site. The administration argues fuel storage is most important to making the grid better able to respond quickly after major weather events and cyber attacks.

‘Real resilience issue’: “Strengthening the energy infrastructure is the real resilience issue,” said Kelliher, who is a former Republican chairman of the Federal Energy Regulatory Commission. “The resilience associated with onsite fuel is insignificant by comparison.”

Kelliher’s comment in support of more pipelines to transport natural gas, America’s most used energy source, contrasts with the Trump administration’s view that pipelines are vulnerable to cyberattacks, meaning the U.S. should be shoring up failing coal and nuclear plants to compensate for that.

Pipeline shortage: There is also a shortage of pipelines in the Permian Basin, the country’s most prolific area for shale gas, constraining the ability to get gas to market.

“There remain limits on where and how quickly we can build pipelines,” said James Hoecker, executive director of WIRES, a trade group, in testimony before the Senate committee. Hoecker is also a former FERC chairman.

HOUSE TO ROLL OUT ENDANGERED SPECIES AGENDA: House members of the Western Congressional Caucus will come together late Thursday afternoon to introduce eight bills that will make up the GOP-led legislative agenda for updating and modernizing the Endangered Species Act.

“These much-needed, critical pieces of legislation will provide important updates to historically and currently problematic or dysfunctional components of the law,” according to the Natural Resources Committee.

The event will be livestreamed here.

HOUSE VOTES TO SHED LIMITS ON COMMERCIAL AND SPORT FISHING:

The House voted to open up U.S. fisheries to more commercial and sport fishing on Wednesday.

The House passed the Strengthening Fishing Communities and Increasing Flexibility in Fisheries Management Act by a 222-193 vote.

Eliminates ‘unscientific’ conservation limits: The bill would open up U.S. coastal waters to more fishing by reducing “unscientific” conservation limits and quotas on the amount of fish caught annually.

The bill “eliminates unscientific timeframes to rebuild fish stocks,” which “unnecessarily restrict access to fisheries,” according to a summary of the bill.

Reauthorizes the fisheries law: The bill introduced by Rep. Don Young, R-Alaska, reauthorizes, while modernizing, the Magnuson-Stevens Act, which is the primary law governing marine fisheries management in U.S. federal waters.

The bill provides greater regional flexibility, tailored management practices, and improved data collection for all U.S. federal fisheries off the coasts of most ocean-adjoining states.

ANDREW WHEELER PROMISES TO ‘VALUE’ STAFF AS HE CONTINUES TRUMP’S AGENDA: Environmental Protection Agency Acting Administrator Andrew Wheeler ushered in a new tone and tenor at the agency Wednesday by promising career employees he would value their work and input as he stays loyal to a deregulatory agenda promised by President Trump.

Wheeler, in his first address to EPA career employees after Scott Pruitt resigned from ethics scandals, aimed to ease the angst of agency staff, while also asserting his commitment to continue the Trump administration’s focus away from combating climate change through regulations, and instead “restoring the rule of law by reining in federal overreach.”

Open ears: “It is privilege and honor to be standing before you today,” Wheeler said to a standing-room-only crowd in the EPA’s Rachel Carson Green Room, which was open to media. “You can’t lead unless you listen. I value your input and feedback. I will start with the presumption you are performing your work as well as can be done. I will seek facts from you before drawing conclusions.”

Wheeler was quick to empathize with EPA employees, by highlighting his work at the agency from 1991 to 1995 when he was a career staffer focused on toxic chemical issues. At the podium during his speech, he wore a bronze medal for commendable service earned from his time at EPA.

‘Minimize stress’: “I do understand the stress that goes along with a change in management,” Wheeler said. “We are going through that now. I want you to know I understand that. I will try to minimize the stress you deal with.”

Wheeler said he was focusing on repairing relationships with EPA career staff who bristled at Pruitt’s tendency to personalize his leadership of the agency and disregard people who worked for him.

‘Vital mission’: “I would say EPA employees are some of the most dedicated of all career employees in the federal government,” Wheeler said. “It is privilege to work on

‘Not ashamed’ of coal ties: Wheeler critics label him a “coal lobbyist,” a term he does not like, and made light of Wednesday. He lobbied for Murray Energy, America’s largest privately-owned coal company.

“I had a number of clients,” Wheeler said. “If you read the press, I only had one, but I actual had over 20. I did work for a coal company. I am not ashamed for work I did for a coal company.”

Some things stay the same: Although he did not say Pruitt’s name, Wheeler used his predecessor’s policy language, saying he wants to focus on the “core responsibilities of the agency.”

“President Trump asked me to focus on three things — clean air, water, and drive regulatory relief,” Wheeler said. “I think we can do all of those things at the same time.”

DOCUMENTS SHOW PRUITT SCRAPPED PLAN TO PUSH MORE ETHANOL INTO FUEL SUPPLY: New documents from the White House show Pruitt ditched plans to force the oil industry to blend higher amounts of ethanol in the gasoline supply.

Scrapped: The scrapped plan was intended to make up for Pruitt’s exempting dozens of small refiners from having to meet the Renewable Fuel Standard’s ethanol requirements, which requires increasing amounts of ethanol and other biofuels be blended in the nation’s fuel supply.

As Wheeler takes the helm: Reuters first reported on the new White House documents on Wednesday, as Wheeler was officially taking the reins at EPA. The ethanol industry described the documents as “very disturbing.”

It’s in then it’s out: The industry analysis showed that the annual renewable fuel blending targets for 2019 had included a plan to reallocate the lost ethanol gallons before they were officially proposed in June. That plan was reviewed by the White House Office of Management and Budget and sent back to EPA, but it was not included in the proposal Pruitt released last month. The ethanol industry’s timeline of events shows that about 10 days after the release of the 2019 ethanol mandate, Pruitt resigned.

Refinery fires back: Frank Maisano with Bracewell Law, representing refiners, struck back at the ethanol industry on Twitter. “[S]imply because ethanol shills at USDA place comments in interagency comments on #RFS program over which they have no jurisdiction does not compel the expert agency to follow them down the rabbit hole,” Maisano tweeted. “Now that is what is disturbing.”

PUERTO RICO’S FOSSIL FUEL POWER PLANTS VS. STRUGGLING SOLAR AND WIND: Puerto Rico’s power plants that use coal, oil, and natural gas are operating at nearly 100 percent, while nearly 80 percent of wind farms are still out of commission after last year’s devastating hurricane season, the federal government said this week.

First report on Puerto Rico: The Energy Information Administration, the analysis wing of the Energy Department, included Puerto Rico for the first time ever this week as part of its national monthly survey on existing, closed, and proposed power plants.

Damage: “Much of Puerto Rico’s electricity infrastructure was damaged during hurricanes Irma and Maria in September 2017,” EIA said in its first report including the U.S. island territory.

But the long half-year slog to restore electricity service to the island has been fruitful, particularly for its fossil and hydroelectric power plants.

The big 99: Over 99 percent of the hydroelectric and fossil-fueled power plants in Puerto Rico reported their status as operational as of April, according to the new report.

Renewables need more time: “However, several plants reported that they were not operating as of April 2018, but they are expected to return to service within the calendar year,” according to the agency. All of those plants were either wind, solar, or advanced batteries used to store electricity from the renewable plants when the sun is not shining, and the wind is not blowing to produce energy.

PUERTO RICO POWER UTILITY CEO ABRUPTLY RESIGNS: The new chief of Puerto Rico’s state-run power authority resigned Wednesday after four months on the job, as the utility struggles to rebuild its electricity grid from Hurricane Maria.

Walter Higgins, who was appointed in March to lead the Puerto Rico Electric Power Authority, or PREPA, resigned effective July 14, citing personal reasons and opposition from Puerto Rican politicians regarding his compensation, the Wall Street Journal reported.

PREPA said that board member Rafael Díaz-Granados will take over as CEO.

Power problems: PREPA, the sole power provider to the island, filed for bankruptcy last year, and is $9 billion in debt. The power authority is short-staffed, and has been vulnerable to political favoritism and corruption. Gov. Richard Rossello is trying to privatize PREPA to lower costs for consumers.

Criticism: PREPA has been criticized for decisions it made in responding to an island-wide blackout after Maria, including its decision to hire private contractors instead of using crews from mainland U.S. utilities.

Other resignations: In November, PREPA’s former CEO, Ricardo Ramos resigned after the utility signed a $300 million contract with small Montana firm Whitefish Energy to restore the island’s power, a company that had no experience with that kind of emergency work.

INDUSTRY PUSHES FOR HIGHER ENERGY EFFICIENCY SPENDING: Lawmakers on an energy spending bill conference committee are being pressured by industry and others to endorse the bigger numbers for energy efficiency programs in the Senate version of the bill, and oppose the limits endorsed by the House.

Let the urging begin: “We urge you to accept the Senate position on funding levels in conference negotiations and include clear and direct report language to ensure these programs continue contributing to improved energy efficiency in our nation’s buildings and infrastructure and increased economic and energy productivity as Congress intends,” the coalition letter read.

Intel inside: Signers on the letter include large companies like Intel, Johnson Controls, Ingersol Rand, as well clean energy advocacy groups and the California Energy Commission.

‘Most abundant energy’: “Energy efficiency is our nation’s most abundant energy resource,” the letter continued. “Without the gains in energy efficiency made since 1973, the U.S. economy would today require 60 percent more energy than we currently consume.”

Since the ‘70s: In that time, it explains that U.S. gross domestic product has tripled. “These programs return benefits and savings to American homeowners, consumers, and businesses many times greater than the public’s investment,” read the letter.

Jobs, jobs, jobs: “Furthermore, according to a recent report these programs have helped develop an energy efficiency sector that accounts for 2.25 million jobs.”

CALIFORNIA LEADS NORTH AMERICA IN CARBON CUTS WHILE GROWING ECONOMY: The California Air Resources Board announced Wednesday that it achieved its greenhouse gas emission goals while growing its economy 26 percent.

Falling below 1990: The air pollution regulators in charge of the emissions program said “greenhouse gas pollution” in California fell below 1990 levels for the first time since the state’s emissions peaked in 2004. That’s equal to taking almost 12 million cars off the road or saving 6 billion gallons of gasoline a year, the agency said.

Go further to 40: Democratic Gov. Jerry Brown used the announcement as evidence that the state can yet cut emissions 40 percent below 1990 levels by 2030 — “a heroic and very ambitious goal,” as he put it, and “the most ambitious carbon goal in North America” as the state agency put it.

Thirteen is half of 26: The inventory showed California cut statewide carbon emissions 13 percent since 2004, while “the economy grew 26 percent.”

“In California we see the impacts of climate change all around us, but our efforts to curb its worst impacts are on track,” said air board chairwoman Mary Nichols. “We are well positioned to meet the challenge of the 2030 target.”

RUSSIA’S LARGEST ASBESTOS COMPANY THANKS TRUMP BY USING HIS IMAGE:

A Russian manufacturer of the hazardous chemical substance asbestos is using President Trump’s likeness on shipments to the United States.

The face: The company, Uralasbest, posted photos of large shipping pallets with Trump’s face emblazoned on them, which appeared bound for the United States.

Thank you: The gesture was made to thank the president and Pruitt for supporting the continued use of the substance in America.

RUNDOWN

Reuters U.S. oil exports to India soar ahead of sanctions on Iran

Bloomberg Hurting for buyers, U.S. coal miners are learning to love India

New York Times Solar plan collides with farm tradition in Pacific northwest

Washington Post Scientists may have solved a huge riddle in Earth’s climate past

Bloomberg Banks pivot toward greener finance in climate action push