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| TRUMP TEASES ENERGY, EPA ‘VICTORIES’ FOR POST-SHUTDOWN STATEU OF THE UNION: President Trump is using Twitter to pitch ideas that could make their way into his yet-to-be-announced State of the Union address, using his accomplishments on deregulation and energy to show off two years of “victories” in the wake of a record-setting government shutdown. Trump tweeted on Sunday night a list of accomplishments over the last two years to demonstrate the inevitability of him getting the money to build a border protection wall. He also reverted back to simply calling it “the WALL,” and not a barrier or steel slats, which was the characterization used in his negotiations with Democrats during the 36-day shutdown. |
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| Without the wall under his belt going into a State of the Union speech, Trump is recounting other “victories.” “Done more in first two years than any President! MAKE AMERICA GREAT AGAIN!” he added. Let’s focus on energy: Trump used the 36 days of government shutdown to float the idea that low fuel prices are a result of his actions. But the Energy Department says the reason for low prices has more to do with his granting waivers to China and other countries to continue using Iranian oil. The administration’s waiver policies did not appear to take into consideration record oil production from the U.S., Russia, and Saudi Arabia, which caused an oil glut and inadvertently reduced prices. Trump also likes to tout the idea that he told Saudi Arabia, the world’s largest swing producer, to up oil output ahead of sanctions on Iran’s oil exports on Nov. 5. But he reportedly did so without disclosing the administration’s plans to grant numerous waivers. Is causing a crash in the oil price good? Trump likes to tout the idea that low prices was part of a plan. But many in industry saw the administration’s moves as risky, because in crashing the oil market, U.S. producers could have been hurt. The market has recently showed signs that supply and demand are rebalancing, with prices going up. Shutting down deregulation: As far as his progress on rolling back environmental and other regulations, the government shutdown has likely put a damper on that too. For example, Iowa corn growers and ethanol producers are worried a rulemaking at the Environmental Protection Agency to allow year-round sales of 15-percent ethanol blends could be sidelined significantly, industry officials tell John. Allowing the sale of E15 was a promise Trump made to Iowa and corn farmers in holding several meetings last year to hash out a deal between refiners and the ethanol industry. Other rulemakings, such as those looking to streamline endangered species restrictions for the energy industry, and a rule to replace the Obama-era Clean Power Plan will likely suffer some delays. Welcome to Daily on Energy, written 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. TRUMP WEIGHS OIL EMBARGO ON VENEZUELA TO OUST MADURO: The Trump administration, fed up with the authoritarian government in Venezuela, could soon play its last hand and block imports of the country’s oil, a move that would upset Gulf Coast refiners and pressure energy markets. “The likelihood of significant sanctions including an import ban is higher now than it ever has been during the Trump administration,” George David Banks, Trump’s former international energy adviser, told Josh. Refiners in Texas and Louisiana built to process heavy crude that the oil-rich country produces would struggle to find replacement sources — even though they have tried. But an embargo is now possible after the Trump administration last week recognized opposition leader Juan Guaido as Venezuela’s official head of state, in a swipe at leftist authoritarian President Nicolas Maduro, whose political oppression and economic policies have created food shortages and a public health crisis. Trump administration allies say it favors sanctioning oil because that would impose a crushing blow on Maduro and perhaps deprive him of support from Venezuela’s powerful military. Joseph McMonigle, a former chief of staff of the Energy Department in the George W. Bush administration, told Josh that 70 percent of Venezuela’s oil production goes to pay off loans from China and Russia, while the rest is exported to U.S. refiners for cash. “The administration is cognizant of the impacts of sanctions to oil prices and to refiners, but they feel they have tried everything else, and this is the final shove needed to get Maduro out,” he said. Read more of Josh’s report here. EIA CONFIRMS US EMISSIONS HIKE LAST YEAR: The Energy Information Administration confirmed Monday that U.S. carbon emissions rose in 2018, although the agency expects that to be a one-year blip. The EIA said emissions increased 2.8 percent in 2018 — the largest year-to-year rise since 2010. But the agency said emissions will decline again in 2019 and 2020. The report comes after the Rhodium Group earlier this month projected that U.S. carbon emissions rose 3.4 percent in 2018 after three years of decline, even as a record number of coal plants retired. The Rhodium Group found U.S. emissions’ increases in all major sectors: electricity, transportation, buildings, and industrial. What’s driving the increase: It attributed higher emissions from last year to an unusually hot summer and cold winter, and increased manufacturing activity. The EIA report, likewise, said weather conditions and “continued economic growth” were the primary drivers of higher energy consumption, and emissions. Emissions from natural gas, a common home-heating fuel, increased 10 percent. NATIONAL PARKS CELEBRATE END OF THE SHUTDOWN: The end of the longest government shutdown in American history had National Park Service employees across the country celebrating on social media. “Following the enactment of the continuing resolution, the National Park Service is preparing to resume regular operations nationwide,” NPS said in a statement posted to its social media. |
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Trump’s controversial parks decision: During the 35 days the government was partially shut down, many of the country’s 418 parks had remained accessible with basic services, while others had closed due to a total lapse in funds. Environmentalists and Democrats criticized the Trump administration for keeping parks open, saying them were not appropriately staffed, exposing them to looting and creating safety hazards. NPS said the schedule for each individual park to re-open or begin operating at full capacity depended on “staff size and complexity of operations” and recommended that visitors call ahead if they are unsure of a park’s status. Interior gives thanks to employees: The Interior Department shared a post of two rangers looking out at the landscape of the Glacier National Park, declaring that they’re “back online and honored to continue sharing the beauty and wonder of America’s public lands.” “As all of the government reopens, we want to thank those respectful and protective of these important places during the shutdown,” the post read, adding a nod to employees who worked without pay in order to keep the public lands “safe and clean, and to ensure they’ll continue to be a proud legacy for future generations.” |
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EPA’S TOP AIR OFFICIAL TRYING TO ‘BETTER UNDERSTAND’ CLIMATE CHANGE: EPA’s top air official Bill Wehrum said Friday he is still learning about the science of climate change, and considers the issue one of “many priorities” facing the agency. “I think reducing carbon emissions is important, and it’s a priority for us. It’s one of many priorities for us,” Wehrum, the EPA’s assistant administrator for air and radiation, said at an event in Washington hosted by the Society of Environmental Journalists. Asked if climate change is a “crisis” Wehrum replied: “I’m trying to figure that out. Everyone is still exploring the science behind climate change.” He acknowledged his lack of experience dealing with climate change. “I’ll admit I did not come to the agency as a climate change expert,” he said. “I’ll admit, there is a lot I don’t understand about climate change.” Wehrum’s background and record: Wehrum, a former corporate lawyer who represented energy industry clients, insisted he is not “ideological.” He is the leading architect of EPA’s rollback of Obama-era environmental regulations, spearheading proposals to weaken rules on power plant emissions, and vehicle fuel efficiency. He claimed Friday that EPA’s effort to restrain the Clean Power Plan would still result in significant emissions reductions. But most of that would happen without any regulation, due to market forces, with cheap natural gas and renewables and retiring coal plants. Wheeler’s commentary on climate change comes after his boss, EPA acting administrator Andrew Wheeler, recently testified to Congress that global warming is a “huge issue” but not “the greatest crisis.” GERMANY PLANS TO ELIMINATE COAL BY 2038: Germany plans to end its use of coal power by 2038, with a proposal that would invest at least 40 billion euros, or $45.6 billion, in coal communities to help local economies recover. A government-appointed commission of representatives from the power industry, environmental groups, miners, and others introduced the plan on Saturday, which requires approval by the federal government and 16 regional states. Eliminating coal would help Germany fulfill its commitments to the Paris Climate Accord, to reduce carbon emissions by 80 percent to 95 percent by 2050. Germany relies on coal for about 40 percent of its electricity. Mixed record on emissions reductions: Germany is working to phase out all use of zero-carbon nuclear power. But Germany has also invested heavy in renewables. Renewables made up more than 40 percent of the country’s electricity last year, more than coal. FERC ASSERTS AUTHORITY OVER PG&E’S POWER CONTRACTS: The Federal Energy Regulatory Commission asserted Friday it has authority over PG&E’s power contracts, meaning the commission would have a say in any efforts to cancel or renegotiate contracts while the troubled California utility goes through bankruptcy proceedings. NextEra Energy had requested FERC to not allow PG&E to change its power contracts without the commission’s approval. PG&E had argued that only the bankruptcy court could have jurisdiction over the contracts. Wind and solar contracts could be vulnerable: NextEra has several contracts for PG&E to buy wind and solar power. Companies fear that PG&E contracts to buy renewable energy could be dissolved during bankruptcy, because many of them were set at above-market rates, when wind and solar were more expensive. PG&E was among the first utilities to buy large quantities of renewable power. California Gov. Gavin Newsom has urged PG&E to honor its contracts for renewable energy with power providers because they are crucial to achieving the state’s aggressive emissions reductions goals. RUNDOWN Wall Street Journal Google, Amazon seek foothold in electricity as home automation grows Washington Post Bill Gates comes to Washington — selling the promise of nuclear energy Politico The new language of climate change E&E News Biden fought this climate policy before embracing it |
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Calendar MONDAY | January 28 3 p.m., 1030 15th Street NW. The Atlantic Council holds a discussion on “The Global Status of Carbon Capture and Storage (CCS): Is U.S. Technology Leadership at Risk?” TUESDAY | January 29 10 a.m., 406 Dirksen. The Senate Environment and Public Works Committee holds a hearing on the nomination of Nicole R. Nason to be administrator of the Federal Highway Administration. THURSDAY | January 31 10 a.m., 2123 Rayburn. The Energy and Commerce Committee holds a hearing on “Examining the Trump Shutdown’s Devastating Impact on Federal Workers, Public Health, the Environment, and Consumers.” |
