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SIGN UP! If you’d like to continue receiving Washington Examiner’s Daily on Energy newsletter, SUBSCRIBE HERE: http://newsletters.washingtonexaminer.com/newsletter/daily-on-energy/ EPA TO WEAKEN VEHICLE FUEL-EFFICIENCY STANDARDS: The Environmental Protection Agency plans to weaken emissions rules for vehicles covering model years 2022–2025. The EPA on Friday submitted to the White House a draft of a so-called final determination on the Obama-era national fuel economy rules, according to the Office of Management and Budget website. The notice does not include details of the proposal, but Reuters reports the EPA is expected to say that the 2022-2025 model year rules on fuel economy for cars and light duty trucks, such as pickups and sport utility vehicles, must be revised, although the agency won’t immediately propose new requirements.
Rules of the road: The EPA under Administrator Scott Pruitt has long been expected to ease the Obama administration rules, negotiated with the industry in 2011, that would require automakers to nearly double the average fuel economy of new cars and trucks to 54.5 miles per gallon by 2025.
EPA has an April 1 deadline for deciding if the standards should be strengthened, weakened or left unchanged. Industry seeks relief: Automakers have pressed for relief from the rules, arguing that low gasoline prices have weakened consumer demand for hybrid-electric cars and smaller, fuel-efficient models. Less fuel-efficient SUVs and light trucks have become more popular in recent years, meaning manufacturers are having difficulty hitting the fuel-efficiency targets, automakers say. They say complying with former President Barack Obama’s standards could cost the industry $200 billion, threaten jobs and increase vehicle prices. What’s at stake: Emissions from automobiles are the largest source of greenhouse gas pollution that most scientists say contributes to manmade climate change. Outstanding questions: It remains to be seen how the EPA will settle a dispute with California over the fuel efficiency rules. California, which can set its own fuel efficiency standards, has warned it could withdraw from the nationwide vehicle emissions program if the EPA limits the regulations. Federal law since 1967 has allowed California, because of severe air pollution problems caused by smog, to obtain a waiver, permitting it to set its own fuel efficiency regulations that are tougher than the national standards. Other states can follow California’s standards instead of the national rules. 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. BILL WOULD REQUIRE PRUITT, ZINKE TO DISCLOSE TRAVEL TO PUBLIC: Democratic Sen. Tammy Duckworth of Illinois introduced a bill Friday that would require all administration officials to disclose their travel on a public website.
Public disclosure: “When Trump administration officials spend thousands of taxpayer dollars to charter a private or military plane or purchase a first-class ticket, they should — at the very least — be required to tell the American people who are bankrolling their luxurious travel why it is necessary,” Duckworth said.
The bill reflects the tens of thousands of dollars EPA Administrator Scott Pruitt and Interior Secretary Ryan Zinke have spent on travel in the last year. House GOP’s latest probe into Zinke: The bill was introduced as House Oversight and Government Reform Committee Chairman Trey Gowdy is seeking to get to the bottom of the reported $139,000 door for Zinke’s office. Gowdy wants a briefing no later than two weeks from Friday to go over the details of the pricey door. Gowdy is also probing Zinke’s travel, including spending federal dollars to provide security when he and his wife were on vacation in Greece and Turkey last year. STATES GEAR UP TO SUE OVER LANDFILL EMISSIONS: Eight states are threatening to sue the Trump EPA for failing to enforce Obama administration rules for curbing air pollution from landfills. The EPA was supposed to move ahead in implementing the rules in November, but it deferred on approving state plans for how they planned to curb methane from rotting garbage and waste in the nation’s landfills.
Golden State takes lead: California Attorney General Xavier Becerra is leading the states in the push. He includes EPA’s lack of enforcement of the rules as part of the Trump administration’s lagging record on addressing climate change, since methane emissions are partially to blame for global warming.
Climate is the reason: “Climate change is the most important global environmental issue of our time. We must act to address it now for the sake of our children,” Becerra said. “EPA Administrator [Scott] Pruitt has a legal responsibility to enforce this critical landfill methane regulation. If he fails to do his job, our coalition is ready to go to court.” Becerra and the California Air Resources Board sent a letter to the EPA Friday on their intent to sue in 60 days if actions aren’t taken to remedy the situation. Who’s on board: Democratic attorneys general from Illinois, Maryland, New Mexico, Oregon, Rhode Island and Vermont signed onto the letter. Pennsylvania’s Department of Environmental Protection also joined. ETHANOL INDUSTRY IRE GROWS AS DEADLINE ON SETTLEMENT NEARS: The Monday night deadline is fast approaching for filing protests in bankruptcy court over the EPA’s settlement with Philadelphia Energy Solutions, which would give the giant a refiner a pass in complying with the nation’s ethanol mandate. The Philadelphia refiner is the East Coast’s largest fuel producer, but filed for bankruptcy protection in January, blaming the EPA’s Renewable Fuel Standard and the price of ethanol credits, or RINs, for it financial woes. It spent hundreds of millions of dollars buying RINs, because it cannot blend ethanol. The EPA settled with the refinery, saying that even though it did not possess enough RINs to comply with the ethanol mandate, the agency would count the RINs the refiner did have to fulfill its obligation and let it off the hook.
The ire of the ethanol lobby: The settlement has stoked the ire of the ethanol industry, which is protesting the settlement.
In comments to the Justice Department, the ethanol lobbying group Growth Energy argues that “the current EPA-PES settlement agreement would absolve the refinery of key obligations under the Renewable Fuel Standard.” Growth Energy CEO Emily Skor said the proposed settlement, filed as part of the company’s bankruptcy proceeding, “sends the wrong message to industry stakeholders, implying that there are no consequences for violating the law.”
A bailout for Carlyle Group: Skor argues that the large holding company that owns the refinery, the Washington-based Carlyle Group, “pulled hundreds of millions of dollars out of the company and failed to make the clean energy investments that have allowed other refiners to thrive.
“The EPA should not reward the Carlyle Group by allowing PES to escape more than 70 percent of its obligations under the Clean Air Act.” Poking at sue-and-settle: Skor suggested the settlement also reflects EPA’s pledge to end the process known as sue-and-settle, in which environmental groups use legal means to force environmental policy decisions. She said Pruitt is doing something similar with the ethanol case. “If this sue-and-settle-style settlement is approved, it sends a terrible message to investors who have played by the rules,” Skor said. “With farm income at a 12-year low, rural America can’t afford another handout to refinery owners.” GOP AND DEMOCRATS JOIN FORCES TO STOP WHITE HOUSE UTILITY SELLOFF: Republicans and Democrats are upping the pressure on the White House to revoke its plan to sell off the federal public utilities’ assets, which was included in the fiscal 2019 budget request. Sens. John Barrasso, R-Wyo., the chairman of the Environmental and Public Works Committee, and Maria Cantwell of Washington, the top Democrat on the Energy and Natural Resources Committee, are leading the effort against the White House plan. Nearly two dozen senators joined them in the letter.
It’s up to Mulvaney: The letter was sent to Office of Management and Budget Director Mick Mulvaney to oppose a provision in the budget proposal that seeks to auction off the transmission assets of the Department of Energy’s Power Marketing Administration and abandon cost-based rates.
The opposition tradition: “There is a long, bipartisan tradition of opposing similar past proposals, including last year’s proposal that recommended selling off federal PMA transmission assets,” the letter read. “Unfortunately, this year’s budget is broader in scope, potentially undermining reliable and affordable electric service in our states. “We believe divesting over 33,000 circuit-miles of transmission – transmission that was built specifically to connect federal electric generation to load – will not improve our nation’s infrastructure,” the letter stated. Effect on grid: The plan will have the effect of destabilizing the economic viability of the Bonneville Power Administration, the Western Area Power Administration and the Southwestern Power Administration through a privatization scheme that “will likely not result in incentivizing new transmission infrastructure that many of us support.” TRUMP TO NAME ENERGY DEPARTMENT OFFICIAL AS TOP CLIMATE ADVISER: Trump is poised to name Wells Griffith, an Energy Department official who worked on the president’s campaign, as his top climate adviser in the White House. The selection of Griffith to be international energy and climate adviser, first reported by E&E News, fills a void after George David Banks abruptly left the post because he was unable to get a full security clearance.
Path to Paris: Banks had advocated for remaining in the Paris climate change agreement and was seen as a moderating voice on energy and environmental issues. The U.S. can’t formally leave the agreement until November 2020, and Trump has repeatedly suggested he would be open to rejoining it if the U.S. can secure more favorable terms.
Griffith, who could take on that effort, has been serving as principal deputy assistant secretary in the Energy Department’s Office of International Affairs. Political past: A former political operative, Griffith also was deputy chief of staff to Reince Priebus, Trump’s former chief of staff, when Priebus was chairman of the Republican National Committee. E&E News says Griffith will take on his new position on a three-month detail, with the chance secure the post full time. TRUMP ALSO NAMES PICK FOR EPA POST: The president on Friday nominated William Charles McIntosh to be the EPA’s assistant administrator for International and Tribal Affairs. McIntosh is a former Ford Motor Co. executive who was responsible for environmental permitting and compliance. Before that, he was former Michigan Gov. John Engler’s environmental and natural resources adviser and deputy director of the Michigan Department of Environmental Quality. RUNDOWN Bloomberg China is about to shake up the oil futures market Chron.com Steel tariffs to squeeze oil service, producer margins in West Texas, investors say Axios Inside Exxon’s climate-change strategy New Yorker How the EPA became the fossil fuel industry’s best friend Politico Can the most hated man in West Virginia win? Bloomberg One of world’s dirtiest oil sources wants to go green |
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CalendarMONDAY, MARCH 26 All week. Congress not in session. 6:30 p.m., 80 M St. SE. The Clean Energy Leadership Institute holds a discussion on blockchain technology and the implications for clean energy. TUESDAY, MARCH 27 9 a.m., 1155 15th St. NW. Inter-American Dialogue holds a discussion on “Unconventional Oil and Gas in Argentina.” Noon, Webinar. Americans for a Clean Energy Grid (ACEG) holds a webinar, beginning at noon, on “Transmission Needed to Meet Corporate America’s Growing Demand for Renewable Power.” register.gotowebinar.com/register/2221283257516337922?source=Event 2 p.m., Webinar. The National Academy of Sciences holds a webinar on “Risks, Concerns, and Potential Problems Regarding the Use of Biotechnology to Address Forest Health.” WEDNESDAY, MARCH 28 Noon, 1300 Pennsylvania Ave. NW. The U.S. Energy Association holds a discussion on grid reliability and what the U.S. can learn from Europe on integrating renewable energy. THURSDAY, MARCH 29 4:30 p.m., 1521 16th St. NW. Institute of World Politics holds lecture based on a large-scale survey and a choice experiment, this presentation will discuss energy-related preferences and climate change beliefs in Western Estonia and Southern Ukraine. eventbrite.com/e/improving-energy-security-tickets-41458774310?aff=es2 |
