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NEW EPA HEAD WHEELER UNDOES PRUITT’S TRUCK RULE: Environmental Protection Agency Acting Administrator Andrew Wheeler Thursday reversed his predecessor Scott Pruitt’s last major regulatory decision that had stopped enforcement of an Obama-era restriction on the manufacturing of trucks that use old engines built before modern emissions standards.

Fine by me: On Pruitt’s last day, July 6, the EPA told manufacturers of glider trucks, which critics call “super polluters,” that the EPA would at least temporarily no longer enforce a 300-unit per company limit, allowing more of the trucks to be produced.

The EPA would do further study of the issue before deciding whether to continue a process started by Pruitt in November to permanently repeal restrictions on glider trucks.

Lawsuit prompts reversal: Wheeler previously told Josh he agreed with the move, but after being sued by three environmental groups and a coalition of states, he backed down.

In a memo to his deputies, first obtained by the New York Times, Wheeler said the EPA can only suspend enforcement of an agency rule in rare circumstances after consulting with EPA lawyers and policy experts.

“I have concluded that the application of the current regulations to the glider industry does not represent the kind of extremely unusual circumstances that support the EPA’s use of enforcement discretion,” Wheeler said. Wheeler also cited the lawsuits for influencing  him to change his mind.

The U.S. Court of Appeals for the D.C. Circuit granted a stay of Pruitt’s non-enforcement action after environmental groups sued July 17.

Lobbying for change: The EPA in its own modeling has projected that so-called glider trucks emit 20 to 40 times as much nitrogen oxide and soot as trucks with new engines.

But Pruitt was swayed by intense lobbying from manufacturers who sell glider trucks to stop enforcing, through the end of 2019, an annual cap of 300 gliders per manufacturer that had been imposed by the Obama administration.

The main producer of glider trucks, Fitzgerald Glider Kits of Crossville, Tenn., argues they are cheaper to run, and that emissions from them cannot be regulated under the EPA’s Clean Air Act.

Hang on: Despite Wheeler’s reversal of Pruitt’s non-enforcement of the glider truck limit through 2019, the EPA has not said if it will ultimately stop trying to repeal the Obama-era rules.

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BARRASSO OFFICIALLY KILLS PRUITT HEARING, READIES WHEELER FOR AUG. 1: The Senate environment committee officially scrapped a hearing it was planning to hold before Pruitt resigned suddenly July 5 amid a growing number of scandals.

Out with the old: Senate Environment and Public Works Committee chairman John Barrasso, R-Wyoming, decided to scrap the hearing for Pruitt, and plan a separate date for Wheeler, the acting EPA chief, to come before the panel.  

No more Pruitt hearing: “While Administrator Pruitt was still in his role running the EPA, Chairman Barrasso announced that he would testify in August,” Mike Danylak, the spokesman for the committee, told John. “Since he is no longer at the agency, that hearing will not take place.”

Instead, the Committee worked with Wheeler to schedule his testimony on August 1, he said.

Are the scandals over? The original Pruitt hearing was meant to coincide with the conclusion of a number of inspector general investigations into scandals involving expensive travel and security requirements, among other activities that came under federal investigation. Lawmakers were preparing to grill him on the inspector findings. But now that he’s gone, Barrasso appears to be working with a clean slate.

New questions: However, reports on Wednesday indicated that Wheeler has been meeting with former clients of his from when he was an industry advisers, which critics say reflect a conflict of interest.  

Protecting the environment and economy: The Senate is slated to remain in session during the August recess, which gave Barrasso the opportunity to hold the committee hearing with Wheeler.

The hearing title says it all on what will be covered during the committee meeting with Wheeler.  “Examining EPA’s Agenda: Protecting the Environment and Allowing America’s Economy to Grow,” is what Barrasso named it, reflecting the Republican priority of enacting regulations that allow the economy to thrive while addressing a number of environmental challenges.

INHOFE, SENATORS PRESS WHEELER ON ETHANOL WAIVERS: Sen. James Inhofe, R-Okla., led a group of 21 senators on Friday in a letter pressing EPA’s Wheeler not to listen to the ethanol industry’s arguments on the refinery waiver program.

Refinery waivers: The EPA has waived requirements to blend ethanol for dozens of refiners over the last two years, and the senators want to keep that program intact. They don’t want Wheeler to agree to reallocate the lost amounts of ethanol in the 2019 Renewable Fuel Standard, which directs refiners on how much fuel to blend net year.

EPA had considered: “In recent weeks, media reports indicated that the Environmental Protection Agency considered a proposal to retroactively reallocate the Renewable Fuel Standard compliance obligations from small refineries, which have received hardship relief, to other refineries and importers,” the letter reads.  

Denied ‘ill-considered plan’: “Thankfully, in the proposed rule setting renewable volume obligations for 2019 (the “2019 RVO”), EPA abandoned this ill-considered plan,” it continued.

No future ‘resurrection’: “However, given the requests from biofuel interests, we are writing this letter to state very clearly our strong opposition to any future resurrection of this proposed policy,”.

TRUMP ‘VERY CLOSE’ TO ALLOWING YEAR-ROUND ETHANOL BOOST: President Trump said Thursday he is “very close” to finalizing a plan that will allow higher amounts of ethanol to be sold in gasoline year round.

“We are very close, I have to tell you, to pulling off something that you have been looking forward to for many years,” Trump said while speaking in Iowa on Thursday.

EPA waiver: The policy that Iowa farmers and ethanol producers have been waiting for is a waiver by the Environmental Protection Agency to allow 15 percent ethanol fuel blends to be sold the entire year.

Summer break: Currently, E15 fuel blends are not allowed to be sold in the summer months because of the fuel’s high volatility. The current amount of ethanol in most gasoline sold in the country is 10 percent.

BOATERS, ENGINEMAKERS ASK FOR PROTECTIONS AGAINST TRUMP’S ETHANOL PLAN: “President Trump’s pledge to allow the year-round sale of E15 will needlessly put consumers in danger,” Thom Dammrich, president of the National Marine Manufacturers Association, said in a statement Friday morning.  

The risk will be placed on 142 million American boaters if Trump moves forward with the plan to allow year round sales of 15-percent ethanol fuel blends, said Dammrich.

‘Bad policy’: “There’s a reason that previous proposals to expand the sale of E15 have failed – it’s simply bad policy,” he said.

The trade group, representing some of the largest engine makers in the world, has fought the introduction of E15 because of the adverse effects it has on marine engines and parts that are not designed to take the high-octane fuel.

The assumption is that it’s safe: “Sixty-five percent of people assume that any gas sold at retail gas stations is safe for all their products, when in fact federal regulation prohibits E15 use in small engines,” said Dammrich. “These engines – like those in boats, lawn mowers, and motorcycles – suffer immediate damage when fueled with blends exceeding 10 percent ethanol, thus voiding their warrantee and saddling consumers with high repair and replacement costs.”

Pruitt’s final farewell: Former EPA administrator Scott Pruitt gave the boating industry a parting gift before resigning by approving the commercial sale of an alternative to ethanol called biobutanol that Dammrich’s group favors and has actively sought to research and advance into the marketplace.

The renewable fuel is very similar to conventional gasoline, but without any of the drawbacks of ethanol that pose problems for marine engines. However, it is not being produced in signifcant quantities yet.

Consumer awareness first, Trump’s plan later: “We need to educate the public about the hazards of misfuelling before we even begin thinking about expanding E15 sales,” Dammrich said.

New legislation needed: The trade group is supporter a bill introduced in the House that would require the EPA to revise the labeling requirements for ethanol fuel blends exceeding 10 percent and implement a consumer education campaign to raise awareness.

A bipartisan bill: The Consumer Protection and Fuel Transparency Act of 2018, was introduced by Reps. Lois Frankel, D-Florida, and Austin Scott, R-Georgia.

The ethanol industry disputes most of the claims made by the boating group on the problems ethanol poses for marine and other small engines.

CARPER TRIES TO COUNTER ENDANGERED SPECIES ROLLBACK IN SPENDING BILL: Democratic Sen. Tom Carper of Delaware is introducing a slew of amendments to block the Trump administration’s rollback of endangered species protections.

Carper, the top Democrat on the Environment and Public Works Committee, responded to last week’s proposal by the Fish and Wildlife Service seeking to rein in species protections.

The Interior Department announced a number of proposals meant to change a number of species protections rules to emphasize recovery of an animal and its habitat, over keeping animals listed indefinitely.

Riders: Carper submitted four amendments to an EPA and Interior Department spending bill being debated on the Senate floor.

Increased funding: The amendments seek to increase funding for implementation of the Endangered Species Act, which Carper points out is helping to recover the Red Knot and Piping Plover birds in Delaware.  

A ‘popular’ law: “The Trump Administration is brazenly trying to gut one of the most successful and popular environmental protection laws in our country,” said Carper. “We can’t lose sight of the importance of protecting and recovering endangered species in Delaware and across the country – we should look to the thousands of species that have been recovered over the last 45 years and the $1.6 trillion in economic benefits America has enjoyed since its enactment.”

The amendments would provide “more resources for recovery efforts, not proposals that hamstring our agencies working to protect vital species and environments,” he said.

ZINKE GETS A FAMILIAR NEW TOP ADVISER: Interior spokeswoman Heather Swift is being promoted to be Interior Secretary Ryan Zinke’s “Senior Adviser.”

Swift confirmed the switch to John, saying she had been “promoted to Senior Advisor to the Secretary,” noting that there will be some time where she will be serving two roles until a replacement for the press office is found.

New allegations: Swift has been Zinke’s first line of defense in recent weeks as Zinke faces new legal questions over his involvement in a Montana land deal between an organization he started, but is no longer head of, and David lesar, the chairman of the global oil resources giant Halliburton. The Interior Department’s inspector general opened a formal investigation into the real estate deal last week.

Long-time confidante: Zinke has a history with Swift as she served on his communications team when he was a congressman.

LION TROPHIES SOAR UNDER TRUMP: The Trump administration has issued more than three dozen permits for U.S. hunters to import lion trophies into the United States, according to a new report out Friday by an animal welfare organization.

More hunters, more trophies: The animal advocacy group Friends of Animals pointed to 38 permits between 2016 and 2018 to 33 individuals, saying the increase is a result of the Trump administration easing restrictions on importing animal parts from overseas hunts.

Trump’s actions: The HuffPost first reported the trophy news, which comes months after Trump relaxed restrictions on imports from Zambia and Zimbabwe.

Remembering Cecil: Former President Barack Obama granted the African lion endangered species protections in 2015 after an American dentist sparked public outrage over the killing of a lion named Cecil at a game preserve in Africa. Obama’s actions made it more difficult to import trophies.

ENERGY DEPARTMENT BROKE LAW BY TWEETING PERRY’S ANTI-OBAMACARE VIEWS, GAO SAYS: The Energy Department violated federal appropriations law by sharing on social media a column written by Secretary Rick Perry criticizing Obamacare, the U.S. Government Accountability Office said Thursday.

Energy is not health care: GAO said a July 2017 tweet from the Energy Department’s media team violated the “purpose statute” because tweeting about Perry’s views on healthcare is not a proper use of money appropriated to the agency by Congress.

“Energy did not provide any explanation or make any particularized showing that communicating about healthcare is part of its work or is related to accomplishing its statutory mission,” the GAO said in a report.

‘Burdens of Obamacare’: The Energy Department’s Office of Public Affairs tweeted a July 2017 opinion piece written by Perry for cleveland.com in which the energy secretary opined on healthcare policy, calling for the enactment of “patient-centered reform” that “empower[s] the states.”

The account @EnergyPressSec tweeted: “Time to discard the burdens and costs of Obamacare: @SecretaryPerry” and linked to the column. The Energy Department deleted the tweet later that day.

DOE’s defense: GAO said the tweet did not violate other federal laws preventing agencies from political lobbying or issuing propaganda, because it did not make a direct appeal for action.

Shaylyn Hynes, an Energy Department spokeswoman, said the agency disagrees with GAO’s finding that the tweet violated the “purpose statute.” She said the Energy Department’s statutory responsibilities include components involving medical research and improving healthcare.

TEXAS LAWMAKERS INTRODUCE BILL TO CLEAR BACKLOG OF APPLICATIONS FOR EXPORTING LNG: Two Texas lawmakers introduced a bill Thursday to address a backlog of applications for building facilities to export liquefied natural gas, a problem that is challenging the Trump administration’s efforts to share the U.S. shale boom with the rest of the world.

Keeping score: The U.S. has only two facilities — one in Maryland and one in Louisiana —  to export liquefied natural gas, or LNG, the chilled, liquid form that gas must be converted to for overseas shipping in giant tanker vessels.

Four more LNG export terminals are set to enter service by the end of 2019, and an additional four more have earned regulatory approval.

But more than a dozen are awaiting permitting approval from the Federal Energy Regulatory Commission. The panel is struggling to clear the backlog because of a manpower shortage and other issues. It’s been three years since FERC approved a new LNG plant.

Money talks: To resolve that crunch, Texas Reps. Pete Olson, a Republican, and Gene Green, a Democrat, introduced legislation that would give FERC the authority to pay outside of government pay scales for positions where they have problems attracting talent for the complex legal work of reviewing LNG export applications.

FERC Commissioner Neil Chatterjee, a Republican, had complained of the commission’s struggle to attract workers.

BP TO BUY MAJOR SHALE HOLDINGS IN $10 BILLION DEAL: British oil and gas giant BP invested Thursday in some of the most productive shale acreage in the U.S. by buying most of BHP Billiton’s U.S. onshore holdings for $10.5 billion.

Taste of shale: The bet on shale is significant because large oil and gas companies have usually focused on big offshore projects. Small independent operators were the first to realize the shale boom a decade ago, and Big Oil was late to the game. But that is starting to change.

BP is purchasing 470,000 acres spread across the Eagle Ford and Permian basins in Texas, some of the hottest shale plays in the U.S.

Transformational deal: “This deal transforms BP’s U.S. business,” Maxim Petrov, a senior analyst at Wood Mackenzie, said in a research note. “It will immediately raise its U.S. production by almost a fifth while providing competitive returns and volumes growth.”

TRUMP PRESSING ISRAEL TO FINISH PIPELINE PROJECT WITH JORDAN: The Trump administration is prodding Israel to fulfill a deal it signed with Jordan several years ago for building a pipeline to connect the Red Sea and Dead Sea, according to a report Thursday.

The U.S. has committed to providing $100 million in funding for the project, which it sees as valuable to “cement the Israeli-Jordanian relationship for generations to come,” Axios reported.

Freeze tag: Israel last summer had paused the project that would transport natural gas to Jordan, as leverage to force its neighbor to reopen the Israeli embassy in Amman. The embassy reopened, but Israel still kept a freeze on the pipeline, which is expected to be built in Jordanian territory.

Full court press: Trump administration officials U.S. ambassador to Jerusalem David Friedman, White House Special Envoy Jason Greenblatt and Senior Adviser Jared Kushner have pushed the Israelis to finish the project, Axios reports.

“The United States told Israel that the U.S. supports the project and expects Israel to live up to its obligations under the Red-Dead agreement or find a suitable alternative that is acceptable to Israel and Jordan,” a National Security Council spokesperson told the news outlet.

Israeli Prime Minister Benjamin Netanyahu, who is close to Trump, is expected to make a decision on the project in the coming weeks.

GREEN GROUPS GET WIN AS BRAZILIAN STATE OIL COMPANY SETTLES EMISSIONS LAWSUIT: Petrobras, Brazil’s state-run oil company, agreed Thursday to settle a lawsuit alleging the company violated air pollution restrictions at its 100-year-old Pasadena refinery.

Terms of deal: The settlement, pending court approval, would force Petrobras to pay more than $3.5 million in fines and mandate equipment upgrades at Pasadena to better control emissions.

Most of the money obtained from the penalty would be used to help local communities pay for electric vehicles.

‘Benefit twice’: Environmental groups Environment Texas and the Sierra Club last spring filed a “citizen enforcement” lawsuit in federal court, alleging Petrobras violated its emissions permits under the Clean Air Act.

“We welcome PRSI’s decision to resolve this case rather than spend years litigating it in court,” said Brian Zabcik, clean air advocate at Environment Texas. “Pasadena and Galena Park residents will benefit twice. Refinery upgrades will reduce illegal air pollution, while the electric vehicles project will further improve air quality.”

HOGAN MOBILIZES FOR MAJOR DISASTER AS DAM BEGINS TO SPILL: Maryland Gov. Larry Hogan is mobilizing a massive statewide response to stave off a potential disaster from a dam breach that already has local officials organizing voluntary evacuations.

Rainfall proves hard to handle: Week-long rainfall forced the large Conowingo Dam on Thursday to open multiple spill gates, a warning sign that the dam is having difficulty holding back the water of the Susquehanna River.

Around the clock effort: “Maryland state agencies are actively engaged and working around the clock to provide any support needed to Port Deposit and the areas surrounding the Conowingo Dam,” said the Republican governor. “I urge all local residents to put safety first and heed all warnings from local officials.”

Voluntary evacuations: His office explained that significant amounts of rain and water flow in the Susquehanna River prompted the response. Hogan has “directed state agencies” to coordinate a massive statewide mobilization that includes the town of Port Deposit beginning voluntary evacuations.

Wayne Tome, Sr., the mayor of Port Deposit, has called for a voluntary evacuation, Hogan’s office pointed out.

RUNDOWN

Wall Street Journal Wildfire drives tourists from Yosemite, takes local economy with it

Washington Post Climate change is supercharging a hot and dangerous summer

New York Times Colorado group says thousands of signatures for anti-fracking measure are missing

Bloomberg Exxon misses on profit as output hits lowest level in decade

S&P Global Platts With cyberattacks inevitable, energy sector focuses on response