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CAP AND TRADE PROGRAM ALSO TWISTING IN THE WIND WITH NORTHAM: Democratic Virginia Gov. Ralph Northam’s recent scandal threatens Virginia’s potential participation in a regional cap-and-trade program.

The governor has been trying to get Virginia to join the nine-state Regional Greenhouse Gas Initiative, or RGGI. He’s faced pushback from the GOP legislature, but has eyed a potential regulatory workaround in order to help expand the cap-and-trade program.

Northam has found himself plunged into scandal after the discovery of his 35-year-old medical school yearbook page, which included a photo of an individual in a KKK outfit and another in blackface. The governor has denied that he appeared in the photo.

The governor held a meeting on Monday morning with key staff advisers to go over options, including his resignation, the Washington Post reported.

What about his deputy? Deputy Virginia Lt. Gov. Justin Fairfax, who holds strong environmental views, and would likely continue the RGGI effort if Northam resigns, has also found himself embroiled in controversy over an alleged sexual assault. Fairfax denied the allegations on Monday.

RGGI officials in New York did not respond to a request for comment on how the matter would influence the future of the greenhouse gas initiative, deferring instead to the state’s representatives.

New Jersey’s in better position to join the agreement: Meanwhile, New Jersey is also looking to join the cap-and-trade program, after exiting during the administration of Republican Gov. Chris Christie. Democratic Gov. Philip Murphy has vowed to re-enter the agreement.

The greenhouse gas initiative held a member meeting last week to mull New Jersey’s official proposal to re-join the multi-state climate change market.

Both New Jersey and Virginia were anticipated to join RGGI by 2020, pending any delays or the speed of state environmental regulators.

Murphy’s “committed to restoring environmental programs, including re-entering the Regional Greenhouse Gas Initiative and focusing on environmental justice concerns,” he said in the governor’s fiscal budget for 2019.

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.  

DEEP FREEZE PROMPTS TRUMP ADMINISTRATION TO RE-UP BID TO BOLSTER COAL: The Trump administration is relitigating its support for coal after the fading fuel source was used more frequently last week to help meet surging power demand during the deep freeze that overtook the Midwest and East Coast.

Steven Winberg, the Energy Department’s assistant secretary for fossil energy, touted early data Friday showing coal and nuclear generated a higher percentage of power during the cold surge than usual.

“Those are power sources that have fuel on the ground, and that’s absolutely important. If we didn’t have that, it would have been a much worse situation,” Winberg said, noting that coal and nuclear plants can store fuel on-site.

Coal’s numbers go up: Coal provided 37 percent of electricity last week (as of Thursday) in the nation’s largest power market run by PJM Interconnection, which includes 13 states from Illinois to the District of Columbia.

But PJM reported no reliability issues on its grid and has previously said its electricity supply would hold up against a range of threats, including extreme weather.

Also last week, coal served 51 percent of power in the Midcontinent ISO, representing 15 Midwest states, more than the roughly 33 percent that is the norm.

Counterarguments: Critics of the Trump administration’s bid to help coal and nuclear argue those energy sources do not protect the grid during extreme events, and most disruptions occur from fallen power lines, not supply shortages.

In addition, despite record demand for natural gas during the cold stretch, prices stayed low.

“There is no feasible constraint to the amount of natural gas available in the market,” Dean Foreman, chief economist of the American Petroleum Institute, told Josh. “That has taken the air out of arguments against gas’ resilience.”

Read more of Josh’s report here.

OIL REFINERS GET BEHIND UN FUEL RULES THAT ANALYSTS SAY WILL DRIVE UP PRICES IN 2020: Oil refiners are defending new United Nations environmental rules against private consultants’ forecasts that they will hurt consumers in the run-up to the 2020 election, rather than aiding President Trump’s energy dominance agenda.

The refinery industry supports the impending new 2020 International Maritime Organization rules, which call for the use of cleaner, low-sulfur fuels in all seagoing vessels and could drive up costs by diverting millions of gallons of diesel, jet fuel, and heating oil to the maritime sector.

The American Fuels and Petrochemical Manufacturers, the refining industry’s main trade group in Washington, says the environmental rules will likely be a boon for the U.S. energy industry, which has been meeting federal low-sulfur fuel standards for years.

The 2020 U.N. rules require a massive cut in the amount of sulfur allowed in conventional fuels used in large commercial tankers and cargo ships. The rules go into effect Jan. 1, 2020.

“We think that cost impacts, if they occur, will be short-lived and minimal,” said Derrick Morgan, the refinery group’s senior vice president for federal and regulatory affairs.

But there have been a number of consulting firms in Washington and elsewhere that have projected the implementation of the rules as potentially catastrophic.

Read more from John’s story.

BUDWEISER TOUTS COMMITMENT TO WIND ENERGY WITH SUPER BOWL AD: Budweiser touted it clean energy commitments with a Super Bowl ad featuring a team of Clydesdales pulling a wagon with two drivers and a Dalmatian through fields and mountains, with wind turbines visible in the background.

“Wind never felt better,” a message reads. “Now brewed with wind power for a better tomorrow.”

Anheuser-Busch, which produces Budweiser, announced in 2017 that it seeks to obtain 100 percent of its electricity from renewable sources by 2025 to power its brewing operations.

CORN LOBBY POPS OFF ON BUD LIGHT’S ANTI-CORN SYRUP SUPER BOWL AD: The national lobbying group representing corn growers wasn’t too sweet on Bud Light’s Super Bowl ad Sunday taunting competitors for making their beers with corn syrup.

SENATE DEMOCRATS URGE EPA TO EXTEND COMMENT PERIODS FOR RULES AFFECTED BY SHUTDOWN: Senate Democrats urged EPA Acting Administrator Andrew Wheeler on Friday to extend public comment periods for pending regulatory decisions that were affected by last month’s government shutdown.

“According to past precedent and EPA’s own public health mission, a government shutdown cannot be allowed to obstruct public participation in our regulatory process,” wrote Sens. Tom Carper of Delaware, the top Democrat of the Environment and Public Works Committee, Tammy Duckworth, D-Ill., Bernie Sanders, I-Vt,, Ben Cardin, D-Md., and others.

DEMOCRATS ALSO SEEK INFORMATION ON EPA’S DROP IN ENFORCEMENT ACTIONS: House Democrats demanded Monday that the EPA explain why it is penalizing fewer polluters.

EPA documents and press reports have shown a decline in the number of enforcement actions taken against polluters; a reduction in enforcement staff; and a delegation of more oversight authority to states. Civil penalties for polluters under the Trump Administration have fallen to the lowest average level since 1994, according to an analysis by the Environmental Data and Governance Initiative.

“We are deeply concerned that these actions undermine key enforcement programs and severely limit EPA’s ability to address climate change and protect public health and the environment,” Rep. Frank Pallone of New Jersey, the chairman of the Energy and Commerce Committee, said in a letter he wrote with other Democrats to Wheeler.

Democrats first sought information from EPA in December, but the agency has not cooperated with lawmakers’ requests, they said.

RUNDOWN

New York Times How a ‘monster’ Texas oil field made the US a start in the world market

Washington Post As vacancies pile up Republican senators grow concerned

Wall Street Journal Sanctions on Venezuela’s crude hit oil market in vulnerable spot

Bloomberg Tesla Model 3 owners vent about polar vortex affecting cars

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