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TRUMP ADMINISTRATION CRACKS DOWN ON EMISSIONS BANDITS: The Trump administration came down hard Thursday on automaker Fiat Chrysler, demonstrating that the shutdown over the border wall won’t stop the administration from enforcing the law. Environmental Protection Agency acting administrator Andrew Wheeler announced nearly a half-billion dollars in fines against the company for intentionally flouting emission rules for diesel cars and trucks. Wheeler applauded the expertise of his career staff who dug out the emissions-cheating software from millions of lines of company computer code. He told reporters on a call that, when confronted by the Trump administration, the company denied its intentional use of a “defeat device” to violate emissions rules when it was obvious what it was doing. Wheeler said the company’s denial resulted in it being served with even steeper fines than what was leveled against landmark-emissions cheater Volkswagen in 2015. But the political optics of the settlement agreement were even more interesting: Wheeler was just nominated to serve as the permanent head of the EPA on Wednesday. And the Senate is slated to hold a confirmation hearing next week to take up his appointment, which would be quick. A wall around emissions: In addition, there is a border enforcement angle to the Fiat Chrysler settlement, as wrangling over funding for President Trump’s border wall to end the government shutdown approaches day 20. Part of the massive amount of fines is also based on Fiat Chrysler shipping a portion of its cars and trucks with the violating software from overseas to be sold in the United States. The Justice Department explained that under a separate administrative agreement with the United States Customs and Border Protection, the company will pay a $6 million civil penalty to resolve allegations of illegally importing 1,700 noncompliant vehicles. Promises made, promises kept: Wheeler touted the settlement agreement as fulfilling Trump’s promise to level the playing field for businesses and not to tolerate cheating to gain competitive advantage. “We will enforce the law,” and “those that violate public trust in pursuit of profits will forfeit both,” Wheeler said. He also said the settlement shows the administration will adamantly enforce environmental rules and crack down hard on violators. 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. GREENS BEGIN PUSH FOR NATIONWIDE 100 PERCENT RENEWABLE ENERGY MANDATE: Environmental groups are set to fan out on Capitol Hill on Thursday to lobby lawmakers to back a 100 percent renewable energy mandate for the nation as an essential part of the progressive “Green New Deal” agenda. The groups, including Friends of the Earth, Center for Biological Diversity, and Food and Water Watch, along with 625 members, will call on lawmakers to pursue legislation to ensure that all electricity comes from solar and wind by 2035 or sooner. No nuclear power: Renewable energy, under the groups’ definition, would not include any form of fossil fuel or combustion-based electricity generation, nuclear power plants, biomass energy, large-scale hydroelectric power, or waste-to-energy technologies. Not including nuclear power in the mix could be a non-starter for some on Capitol Hill, especially from the Republican side. The UN and Green New Deal: The mandate corresponds to the United Nations’ recently released report on climate change that recommends transitioning away from fossil fuels to avert the worst effects of climate change. Those principles also align with the so-called “Green New Deal” agenda being floated by new Democrats in the House, which calls for taking more direct action to combat the threat of global warming. Critics of that deal say that, if adopted, it would ultimately raise the cost of electricity and place additional burdens on the average consumer. State effort begins too: Meanwhile, another large environmental coalition called Environment America also launched a campaign to persuade the nation’s 20 new governors elected in November to enact laws and regulations to face the challenge posed by climate change. INDUSTRY GROUPS TOUT LNG EXPORTS TO LOWER EMISSIONS IN 2019: Oil industry trade groups announced Thursday that the U.S. becoming the third largest liquefied natural gas (LNG) exporter in 2019 will lead to significant emissions reductions. The new joint assessment, led by the American Petroleum Institute, Center for LNG, and the group LNG Allies, is meant to underscore the job creation, emissions reductions and reliable energy supplies that U.S. LNG will provide in the new year. “With LNG export capacity set to nearly double in 2019, the United States is poised to become a leading global supplier,” said Todd Snitchler, API’s vice president for market development. He said LNG cargoes have been delivered to nearly 30 countries around the globe, stating that as LNG demand continues to grow, the industry expects even more countries to reap the benefits of reduced emissions from U.S. LNG. The statement follows a report by the Rhodium Group earlier this week that showed U.S. greenhouse gas emissions rose last year due to the rapid uptick in natural gas and despite the continued retirement of coal-fired power plants. PIPELINE INDUSTRY CRITICIZES TRUMP’S STEEL TARIFF EXCLUSION DECISIONS: An official from a top pipeline industry trade group on Thursday criticized the Trump administration’s process for how companies are considered for exemptions to steel tariffs, and said the lack of exclusions are hampering the buildout of energy infrastructure. “We continue to be concerned about a lack of process and transparency associated with the exclusion process,” Don Santa, president and CEO of the Interstate Natural Gas Association of America, said in a roundtable conversation with reporters in Washington. “There are consequences to this.” Santa said the industry has not tracked how many companies have been denied exclusions from Trump’s 25 percent steel tariffs. But he said there is “very little process to rebut” decisions from the Commerce Department rejecting exemptions to the tariffs. Steel is crucial to pipelines: The industry group says the type of steel used in pipelines and other energy infrastructure is a niche market, and most U.S. steel producers have left the pipeline market because of its high costs. Trump’s tariffs is raising the cost for projects that require steel, the group said. Republicans in Congress have also complained about the Trump administration’s exclusion process. Last summer, Sen. Ron Johnson, R-Wisc., demanded that the administration better explain its process, claiming that businesses in his Midwest state find decisions to be “arbitrary.” PIPELINE COMPANIES DEFEND WORK ON CYBERSEURITY: The pipeline industry group also on Thursday defended its work to protect energy infrastructure from cyberattacks, and criticized moves by the Trump administration to characterize pipelines as vulnerable and potentially unreliable. “We need to be seen as the most reliable form of transportation and reliable energy supply,” Bill Yardley, chairman of the Interstate Natural Gas Association of America, said at the roundtable event. “That has fallen under some skepticism. It’s unfounded.” Trump’s case against pipelines: The Trump administration has rationalized its attempts to subsidize coal and nuclear plants by arguing that natural gas, the most used fuel in the electricity market, is less secure because it’s dependent on pipelines. Pipelines are increasingly vulnerable to cyber and physical attacks, especially with the use of more digital sensors, controls, and even drones to remotely access and monitor pipeline facilities. The evidence: The Government Accountability Office released a report last month that found the Transportation Security Administration does not have a process to update its pipeline security guidelines, accusing the TSA of “weaknesses” in pipeline security. TSA, best known for airport security, is also tasked with protecting the nation’s natural gas pipelines from threats. Yardley countered the industry is taking cybersecurity seriously, working cooperatively with the Energy Department, and he said the GAO report only captured a “snapshot” of these efforts. “The issue of cybersecurity generally is extremely important and has captured the attention all the way to the CEOs of our organizations,” Yardley said. “We need to do a bit better job of communicating what we are doing.” MOST NEW ELECTRICITY GENERATION IN 2019 TO COME FROM RENEWABLES, GAS: Most new utility-scale electricity generation capacity in 2019 will come from renewable energy and natural gas, the Energy Information Administration said Thursday. The EIA expects there to be 23.7 gigawatts of new electricity capacity and 8.3 gigawatts of retirements next year. Most of the additions will come from wind power generation — 46 percent — followed by natural gas (34 percent), and solar (18 percent). Coal will be the most retired fuel generator at 53 percent, ahead of natural gas (27 percent) and nuclear (18 percent). INTERIOR DEPARTMENT POSTPONES MEETINGS ON DRILLING IN ALASKA REFUGE: The Interior Department’s Bureau of Land Management on Wednesday announced it is postponing eight public meetings in Alaska and Washington to discuss a draft environmental analysis for drilling in the Arctic National Wildlife Refuge, because of the government shutdown. The agency plans to reschedule the meetings, and is keeping its Feb. 11 deadline for public comments despite uncertainty over when the shutdown will end. Timeline for drilling: Under the environmental analysis released last month, drilling rights could be sold in a small portion of the long-contested refuge, known as ANWR, as soon as this year. However, actual drilling could be much farther away, due to expected court challenges and additional studies and approvals required for energy development in the refuge, which environmentalists say is one of the wildest places left on earth, inhabited by animals such as polar bears, caribou, and arctic foxes. DEMOCRATS LOBBY TRUMP TO EXTEND DEADLINE ON OIL LEASE PROPOSAL: A group of Democratic senators pressed Interior Acting Secretary David Bernhardt on Wednesday to extend the deadline for considering public comment on drilling in the Arctic. Sens. Tom Udall of New Mexico, Maria Cantwell of Washington, Tom Carper of Delaware, Michael Bennet of Colorado, and Ed Markey of Massachusetts wrote the letter, explaining that the administration was attempting to rush through the environment review process for drilling in the Arctic National Wildlife Refuge. They also complained that the public hasn’t had access to agency deliberations on the matter because of the shutdown, which has resulted in the Bureau of Land Management website going offline. TRUMP NOMINATES WHEELER TO STAY AS EPA CHIEF: Trump on Wednesday officially nominated Wheeler to stay on as administrator of the EPA, a position he has held in an acting capacity since July and that he was long expected to be nominated for. Wheeler has been serving as acting administrator after former EPA Administrator Scott Pruitt resigned from the post amid numerous scandals over his misuse of federal funds. Wheeler is a former energy lobbyist, lawyer, and Republican congressional staffer. How Wheeler has performed: During his time leading EPA, he has carried on Trump’s deregulatory agenda while implementing it in a more disciplined, understated, and professional manner, according to supporters. Environmental groups on Wednesday said Wheeler should have to “answer” for his moves to weaken Obama-era climate change and environmental regulations before being confirmed by the Senate again. Republicans of the Senate Environment and Public Works Committee have scheduled his confirmation hearing for Wednesday, Jan. 16 at 10 a.m. MURKOWSKI, CANTWELL REINTRODUCE PUBLIC LANDS PACKAGE: Sens. Lisa Murkowski, R-Alaska, and Cantwell reintroduced a package of public lands bills on Wednesday, using a procedural mechanism to bypass normal committee consideration to allow for the package to be voted on the Senate floor. The package includes measures to permanently reauthorize the Land and Water Conservation Fund, increase sportsmen’s access to federal lands, boost economic development in dozens of communities through land exchanges, and conserve lands of special importance. Murkowski, the chairwoman of the Natural Resources Committee, and Cantwell, the panel’s top Democrat who is stepping down from that position this year, had pushed to pass the package last year as part of must-pass spending legislation. New life for key public lands fund: Environmental groups had criticized the Senate for failing to permanently reauthorizing the popular Land and Water Conservation Fund during the last session of Congress. The fund uses money from offshore oil and gas leases and pays for public lands projects. LIBERAL CLIMATE ACTIVIST TOM STEYER DECLINES TO RUN FOR PRESIDENT: Billionaire liberal climate change activist Tom Steyer announced Wednesday that he won’t be running for president in 2020. Steyer said during an appearance in Iowa that he instead will spend 2019 continuing his efforts to impeach the president, spending $40 million on the effort. Steyer invested $120 million ahead of the 2018 elections to support Democratic candidates, including many with aggressive platforms to combat climate change. RUNDOWN New York Times Shutdown means EPA pollution inspectors aren’t on the job Washington Post Oil drillers, nature lovers get access to public lands despite shutdown USA Today ‘Race against time’: Chair of new congressional climate change panel wants quick action Reuters VW, China spearhead $300 billion global drive to electrify cars |
CalendarTHURSDAY | January 10 All day, 2500 Calvert St NW. The National Council for Science and the Environment holds its annual conference at the Omni Shoreham in Washington, D.C. through Jan. 10. All day, 1200 New Jersey Avenue SE. The Department of Transportation’s Pipeline and Hazardous Materials Safety Administration holds a meeting of the Gas Pipeline Advisory Committee, Jan. 9-10, to discuss the gathering line component of the proposed rule titled, “Safety of Gas Transmission and Gathering Pipelines.” 1 p.m., 1200 New Jersey Avenue SE. The Pipeline and Hazardous Materials Safety Administration holds a joint meeting of the Gas Pipeline Advisory Committee and Liquid Pipeline Advisory Committee to discuss a variety of policy issues and topics relevant to both gas and liquid pipeline safety, January 9-10. |