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TRUMP’S FERC NOMINEE PROMISES TO BE INDEPENDENT ON COAL SUBSIDIES: President Trump’s newest nominee to join a key panel of independent energy regulators vowed Thursday to be impartial when considering potential administration attempts to subsidize struggling coal and nuclear plants.

Critics have feared that Bernard McNamee, nominated to fill an open seat on the Federal Energy Regulatory Commission, would be biased in favor of Trump because he formerly worked as head of the Energy Department’s Office of Policy, which has spearheaded consideration of potential action to save coal and nuclear plants.

What he said: McNamee, in his confirmation hearing before the Senate Energy and Natural Resources Committee, said he “will be a fair, objective, and impartial arbiter” and that his “decisions will be based on the law and the facts; not politics.”

“Markets are the best way to allocate allocate resources and set prices and I am committed to continuing FERC’s independence in its decision making,” he said. “I don’t say this just because I’m trying to get your vote. It’s something I believe because I think the rule of law depends on the fact that people who are in the position of making decisions, that they listen.”

Senators of both parties have questions: Sens. Lisa Murkowski of Alaska and Maria Cantwell, the committee’s chairwoman and top Democrat, respectively, both questioned McNamee about his involvement with DOE’s efforts to help coal.

“I can honestly say I will an independent arbiter for issues that come before me,” McNamee responded when Murkowski asked if his prior work would “unduly” influence his FERC decision-making. “It’s important to look at the law and facts and make decisions based on that.”

Cantwell asked McNamee if FERC made the “right decision” in January when it voted unanimously to reject a proposal from Energy Secretary Rick Perry to provide special payments to struggling coal and nuclear plants in the name of resilience and reliability, saying the grid faces no immediate risk without them.

McNamee ducked answering directly, saying that FERC acted “within its authority.”

Sen. Martin Heinrich, D-N.M., later asked McNamee whether he thinks the grid is facing an “urgent threat” because of the retirement of coal and nuclear plants.

There’s no grid emergency: “It does not appear at this point on a general nationwide basis there is an emergency,” McNamee responded, agreeing with all of FERC’s sitting commissioners who have said the same thing.

Trump, even after FERC’s rejection of the Perry plan, has repeatedly pressed for action to save coal and nuclear plants, although the White House has reportedly stalled over an effort to use emergency executive authority to do so.

McNamee suggested he supported the administration’s decision not to act yet, saying he has “no reason to second guess” Perry’s reluctance to use emergency power so far.

MCNAMEE DECLINES CALL FROM DEMOCRATS TO RECUSE HIMSELF: Sen. Ron Wyden of Oregon and other Democrats challenged McNamee to recuse himself on issues related to helping coal and nuclear plants.

“This is like putting the fox inside the chicken coop,” Wyden said, referring to McNamee’s past role working on Perry’s proposal that FERC rejected. “Why should you be trusted to do anything different if you become commissioner? You ought to recuse yourself if you are chosen for this position.”

McNamee later would not commit to recusing himself on potential future coal and nuclear proposals, when asked again by Sen. Catherine Cortez Masto, D-Nev.

“I don’t know if anything is going to be proposed or will not be proposed,” he said. “The issue of [grid] resilience is constantly coming before FERC. I will consult with ethics counsel.”

Sen. Angus King, I-Maine, was not satisfied with that answer.

“I am surprised and disappointed you feel you have to consult with counsel on something that is so clear,” King told McNamee.

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.  

FERC LAUNCHES TRUMP TAX CUT RATE REDUCTION PLAN: FERC issued a suite of orders on Thursday aimed at ensuring that Trump’s 2017 tax cuts reduce customer utility costs.

Revise transmission costs: The proposed rulemaking requires all publicly-owned utility companies that own transmission lines “to revise” their rates to account for changes under the tax reform package.  

The FERC policy statement also issued Thursday provides accounting and ratemaking guidance to all FERC-jurisdictional public utilities, natural gas pipelines and oil pipelines to adjust for the tax benefits they received.

Show cause, or else: FERC also acted on 46 show-cause investigations, directing certain public utilities whose transmission tariffs used a tax rate of 35 percent to reduce their tax rates to 21 percent, or show why they did not need to do so.

INDUSTRY URGES FERC CHAIRMAN TO TAKE COAL FIGHT TO EPA : The re-appointment of Republican Neil Chatterjee as the energy commission’s chairman has emboldened him to urge the Environmental Protection Agency to make sure President Obama’s Clean Power Plan is killed off, or risk further coal plant retirements.  

Of course this has garnered a lot of attention from the coal and utility industry, which this week can be seen urging him on,and for EPA to heed FERC’s advice on rolling back and replacing the climate rules for power plants.

The switch: Chatterjee was re-named to the post of chairman last month after Kevin McIntyre stepped down due to a health condition. About a week later, one of his first actions as FERC chairman was to submit comments to EPA on the climate regulations.

The FERC chairman argued that allowing the Obama-era rule to move forward would significantly impact the resilience and reliability of the grid. He further argued that the Obama-era rule would harm FERC’s effort to address resiliency by forcing more coal plant retirements.

Coal group gets behind FERC chair: His comments “bolsters the case for repealing and replacing the Clean Power Plan,” wrote Michelle Bloodworth, president and CEO of the pro-coal American Coalition for Clean Coal Electricity, a blog post on Tuesday.

Utility group also wants EPA to heed Chatterjee: A group representing utilities also wants EPA to take Chatterjee’s advice to heart in developing a replacement for the Obama plan.

But adequate cooperation between FERC and EPA “can only be of material assistance as the ACE Rule moves to finalization and eventually implementation,” Scott Segal, director of the Electric Reliability Coordinating Council told EPA acting chief Andrew Wheeler in a letter Tuesday.

DEMOCRATS AND REPUBLICANS EYE WORKING TOGETHER ON SMALL-BORE CLEAN ENERGY BILLS: Members of both parties see opportunities in a divided Congress next year for bipartisan action on clean energy development, even if comprehensive legislation meant to combat climate change remains far away.

Democrats are eyeing a potential infrastructure package, which Trump has also emphasized, as vehicle for clean energy legislation.

Putting the energy in infrastructure: Rep. Paul Tonko, D-N.Y., who is expected to lead the Energy and Commerce Committee’s subcommittee on environment, along with committee member Rep. Peter Welch, D-Vt., outlined provisions they would support in an infrastructure bill to tempt Republicans into working with them.

In particular, they would favor: improving energy efficiency in publicly funded projects; modernizing the electricity grid to accommodate the use of more wind and solar; rebuilding transmission and distribution lines to make them more resilient to severe weather events and wildfires; accelerating the deployment of electric vehicle charging stations; and providing incentives for localities to purchase electric buses.

A push for advanced technologies: There is also bipartisan support for initiatives that would make existing fossil fuel plants cleaner through carbon capture technologies and nuclear energy more viable with smaller, advanced reactors.

Republicans and Democrats are even talking about cooperating on clean energy before the new Congress begins, with some seeking, as part of a package of temporary tax breaks slated for re-upping, to extend the $7,500-per-vehicle tax credit for electric and plug-in hybrid vehicles — keeping it alive for more years — and lifting the individual manufacturer cap.

Read more of Josh’s report here.

SPEAKING OF THOSE TAX BREAKS: Dozens of trade associations representing industries as diverse as ethanol producers to thoroughbred racing want Congress to act as soon as possible to extend numerous expired temporary tax breaks that were allowed to die off two years ago after Trump was sworn in.

State of play: Some of the tax credits were only retroactively extended at the beginning of the year for 2017, but are expired for 2018’s tax year. Many of those included credits for renewable fuels like ethanol, biodiesel, as well as the construction and installation tax credits for building geothermal energy systems and wind turbines.

Key energy tax credits: The refueling infrastructure tax credit for alternative fuels like hydrogen, biogas, and natural gas-powered cars and trucks was also allowed to expire. Some of the tax credits given to purchasers of hydrogen and other electric cars were also allowed to expire.

KOCH WANTS THEM TO STAY DEAD: Koch industries, led by oil and gas billionaires Charles and David Koch, urged Congress Thursday to reject the renewal of the breaks, known as “tax extenders,” especially for electric vehicles.

“Companies should succeed or fail based on the value they provide through their products and services, not by government favoritism,” Philip Ellender, president of government and public affairs for Koch Industries, said in a statement. “Instead of expanding a subsidy for EV owners, Congress should eliminate it along with all other energy incentives, including eliminating any incentives given to us and our competitors where we participate.”

Ellender said Koch Industries does not oppose electric vehicles, but rejects their “subsidization” by the government.

TRUMP APPEALS TO ENVIRONMENTAL MOVEMENT BY RENEWING US COMMITMENT TO RECYCLING: Trump honored America Recycles Day on Thursday, saying that “our Nation renews its commitment to reducing, reusing, and recycling waste in ways that contribute to the continued growth of our economy and the responsible stewardship of our environment.”

AUTOMAKERS PROD ADMINISTRATION TO CEASE TARIFFS HURTING INDUSTRY: The automakers’ top trade group that had pressed Trump to roll back Obama-era environmental rules on cars and trucks, now wants the administration to cease major tariff actions that are harming many of its companies.

The Auto Alliance pressed the administration on Thursday at a hearing of the International Trade Commission on the U.S. trade agreement with Mexico and Canada, which Trump dubbed USMCA.

The group has no problem with the trade accord that was hashed out recently, but wants major tariffs imposed by the administration to be lifted, or risk all the advantages that would come from the trade accord.

Kill off section 232: First, it wants the Commerce Department to drop its review to impose section 232 tariffs on imported cars, SUVs, vans, and trucks.

Second, the tariffs on steel and aluminum must be lifted, or exemptions issued, or risk ongoing harm to U.S. automakers, Jennifer Thomas, vice president of federal affairs at the Alliance, told the trade panel.

Companies’ bottom lines harmed by tariffs: So far, many companies have recently lowered their full-year earnings outlooks due to the increased costs of steel and aluminum, she added. “We urge the Administration to eliminate the steel and aluminum tariffs or, at the very least, provide a permanent exemption from these costly tariffs to Canada and Mexico prior to the signing of the USMCA,” she said.

CALIFORNIA UTILITY TUMBLES AMID LIABILITY RISK FOR CALIFORNIA’S WILDFIRES: PG&E, which supplies electricity to 16 million California residents, tumbled on Wednesday after warning that insurance might not cover its liabilities if the utility is held responsible for a still-raging wildfire that has destroyed a Northern California town, killed at least 56 people, and heightened tension between the largely Democratic state and the Trump administration.

Utility could be at fault: The San Francisco-based company said it reported a power outage in Butte County, where the Camp Fire is still only 35 percent contained, minutes before the fire began and discovered damage to a transmission tower in the area later that afternoon.

“While the cause of the Camp Fire is still under investigation, if the utility’s equipment is determined to be the cause, the utility could be subject to significant liability in excess of insurance coverage,” PG&E said in a filing with the Securities and Exchange Commission. The company renewed wildfire liability coverage for a total of $1.4 billion this summer.

PG&E fell 24 percent to $24.87 in New York trading after the disclosure.

Working to restore power: In Butte County, some 800 PG&E employees headquartered in a base camp are working to remove fallen utility poles and wires from roads and assess needed repairs to electrical and gas distribution networks once they’re allowed access, the utility said Wednesday.

Since Monday, crews have restored electrical power to approximately 2,200 customers in areas where that’s possible, but about 23,000 electricity customers and 12,000 gas customers are still without.

CEOS CREDIT REPUBLICANS FOR LOBBYING AGAINST TRUMP’S SOLAR TARIFFS: A coalition of 11 CEOS from U.S. solar companies sent a letter Wednesday to 35 members of Congress, including many Republicans, thanking them for working to oppose Trump’s tariffs on solar panels that he imposed in January.

The CEOS, in a letter obtained by Josh, say that the tariffs unfairly apply to utility-scale solar panels, not just residential ones, which are often installed in rural, Republican states and districts. The 30 percent tariffs have led to lost investment and jobs in states like North and South Carolina, Georgia, and Arizona, the solar leaders say.

What the lawmakers and CEOs want: The solar leaders say that Republican senators and House members have expressed support for the Trump administration to apply an exclusion from the tariffs to bifacial utility-scale solar panels, a special type that are made with glass instead of plastic to produce more energy. The Trump administration has not yet decided on whether to grant the exemption request.

Solar CEOs say the list of supportive Republicans includes Sen. Thom Tillis of North Carolina, Lindsey Graham of South Carolina, Pat Roberts of Kansas, and others, in addition to Reps. Patrick McHenry and Mark Meadows of North Carolina, Martha McSally of Arizona, Steve Knight of California, and others.

“Our coalition understands the objectives of President Trump’s trade policy but, in this case, the tariffs are too broad, and they are harming our ability to build projects that produce affordable energy for Americans,” said Cypress Creek Renewables CEO Matt McGovern.

RUNDOWN

Reuters At U.N. climate talks, Trump team plans sideshow on coal

Washington Post California’s deadliest wildfire is also a massive air quality problem

New York Times Part of the answer to climate change may be America’s trees and dirt, scientists say

Wall Street Journal Three South Korean firms plead guilty to fixing fuel prices at U.S. military bases

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