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EPA WON’T REGULATE METHANE IN LATEST OBAMA CLIMATE REGULATION ROLLBACK: The Environmental Protection Agency proposed a rule Thursday that would eliminate the direct federal regulation of methane emissions from oil and gas operations, a major rollback of an Obama administration policy to combat climate change.
Methane, the main component of natural gas, is more potent than carbon dioxide, although its emissions don’t last as long in the atmosphere.
Methane currently makes up nearly 10% of greenhouse gas emissions in the U.S., a significant portion of which comes from leaks of methane that occur in the drilling, transport, and storage of natural gas.
What the rule does: The Trump administration rule would reverse regulations imposed by the Obama administration in 2016 requiring oil and gas companies to install technologies to inspect and repair wells, pipelines, and storage facilities that leak methane, which can happen purposely or accidentally during the production and transmission of gas.
It would keep emissions limits for a related category of pollutants from gas called volatile organic compounds, which could prevent some methane emissions. The regulation applies to new oil and gas equipment, but it also precludes the EPA from regulating existing sources.
EPA says its proposal would save the oil and natural gas industry $17 to $19 million a year from 2019 through 2025.
“This is a very important step for removing inappropriate regulatory duplication,” said Anne Idsal, the acting assistant administrator for the EPA’s Office of Air and Radiation, in a press call with reporters.
Some major companies don’t want this: The move is likely to split the oil and gas industry, with some major companies warning the Trump administration that limiting federal oversight over methane leaks damage the industry’s attempt to sell gas as a “fuel of the future” rather than one that is phased out over coming decades as part of aggressive climate change regulations.
Some individual companies, such as Shell, BP, and Exxon have urged the EPA to keep Obama-era regulations targeting methane leaks, instead of weakening them.
But the oil and gas industry’s main trade group, the American Petroleum Institute, favors less direct federal regulation over methane, and prefers voluntary initiatives to limit leaks, arguing the industry is self-motivated to control methane emissions because leaks remove product that can be sold for profit.
“The oil and natural gas industry is laser-focused on cutting methane emissions through industry initiatives, smart regulations, new technologies, and best practices,” said Erik Milito, API’s vice president of upstream and industry operations.
API released its first progress report last month on a voluntary program it started with 27 oil and gas companies in 2017 called The Environmental Partnership, finding that companies conducted more than 156,000 leak surveys in 2018 across more than 78,000 production sites, finding a “leak rate” of only 0.16%.
The problem with voluntary actions: But studies have shown leak rates — which are tricky to measure given methane is invisible to the naked eye — are higher than federal estimates.
A study from the journal Science last year found methane from oil and gas was leaking at a 2.3% rate, with emissions 60% higher than previous EPA estimates.
Groups such as the Environmental Defense Fund that cooperate with industry to invest in technological research to better detect methane leaks say the current voluntary approach is insufficient. Ben Ratner, an EDF senior director who studies methane, told me that API’s voluntary program includes only 1% of America’s oil and gas producers, although they represent a larger amount of market share given the participation of larger companies.
“This methane rollback shows the administration is catering to the worst actors in industry who aren’t willing to lift a finger to make a reduction in their emissions,” Ratner said. “The problem is the industry is only as strong as its weakest link. There is such fragmentation in America’s oil and gas industry right now, and without a level playing field and requirements in bringing everyone along, the problem won’t be solved.”
Ratner disagrees with API’s argument that a federal regulation would disadvantage smaller companies that don’t have expertise in limiting methane leaks, but benefit from information-sharing for techniques to reduce emissions through voluntary programs.
“It’s absurd to think America’s rugged small oil and gas producers can withstand the boom and bust cycle, but not afford twice a year inspections of their facilities,” he said. “It doesn’t add up.”
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REFINERS WARN AGAINST TRUMP’S PROPOSED FIXES TO RFS: The CEOs of major refiners warned President Trump on Wednesday not to move forward with proposed fixes to the Renewable Fuel Standard.
Trump is expected soon to increase federal mandates for production of corn-based ethanol and biodiesel in order to quell complaints from farmers — a key voting constituency — about the administration’s policy of exempting some small oil refineries from RFS requirements to blend billions of gallons of corn ethanol into gasoline.
“The fixes that are being suggested by the Department of Agriculture and the biofuels community that would raise the conventional biofuel mandate will do nothing to increase domestic ethanol usage, but will only give incentives for more imported biodiesel,” said CEOs Joseph Gorder of Valero, Gary Heminger of Marathon and Jeff Ramsey of Flint Hills Resources, in a letter to Trump.
The refiners argue it is “simply untrue” that ethanol demand has been undermined by EPA waivers exempting some small refineries from biofuel-blending requirements.
The three companies say they collectively produce nearly 20% of the current U.S. ethanol supply and purchase over 1 billion bushels of corn annually from farmers.
What’s the problem for farmers? The EPA announced this month that it exempted 31 oil refineries from 2018 requirements to use renewable fuel, while denying six applications, marking the first time the Trump administration has denied small refiner exemption applications under the RFS.
The exemption program aims to protect companies that find it economically untenable to meet the standard.
But corn farmers and their representatives in Congress have accused EPA of excessive use of the refinery exemptions, which they argue are eroding the market for ethanol.
Trump previews action: Trump on Thursday previewed his forthcoming proposed changes to the RFS, which are expected to keep the exemptions in place for refiners while slightly increasing biofuel-blending quotas.
“The Farmers are going to be so happy when they see what we are doing for Ethanol, not even including the E-15, year around, which is already done. It will be a giant package, get ready! At the same time I was able to save the small refineries from certain closing. Great for all!” Trump tweeted.
HURRICANE DORIAN MAY REACH CATEGORY 4 STRENGTH BEFORE HITTING FLORIDA: Hurricane Dorian may reach Category 4 strength before slamming into Florida over Labor Day weekend, meaning that it would have the potential to cause “catastrophic damage,” according to the Saffir-Simpson Hurricane Wind Scale.
The storm, currently a Category 1, is expected to make landfall over the eastern Florida coast by Monday, but earlier than that its outer bands, rough surf, and strong winds will start buffeting the coast.
The last time a hurricane made landfall over the United States as a Category 4 storm was in 2017 when Hurricane Irma hit the Florida Keys. Before that, Hurricane Harvey slammed into Texas.
Here’s what the Saffir-Simpson Hurricane Wind Scale says of a Category 4’s potential for damage: “Well-built framed homes can sustain severe damage with loss of most of the roof structure and/or some exterior walls. Most trees will be snapped or uprooted and power poles downed. Fallen trees and power poles will isolate residential areas. Power outages will last weeks to possibly months. Most of the area will be uninhabitable for weeks or months.”
Florida governor Ron DeSantis declared a state of emergency for more than two dozen eastern Florida counties earlier in the day and urged residents to stock up on supplies for the next seven days. Georgia governor Brian Kemp said his state is also preparing.
“Hurricane Dorian looks like it will be hitting Florida late Sunday night. Be prepared and please follow State and Federal instructions, it will be a very big Hurricane, perhaps one of the biggest!” Trump tweeted on Thursday.
He also said Puerto Rico is in “great shape” after Dorian largely spared the U.S. territory on Wednesday.
US SAYS IT WILL HELP BRAZIL FIGHT AMAZON FIRES: The U.S. is standing by to assist Brazil in fighting fires in the Amazon rainforest.
Deputy assistant to the president Garrett Marquis tweeted Wednesday that the U.S. has a long history of helping Brazil with conservation. He also addressed the controversy surrounding aid to Brazil from the G-7 conference, noting that the U.S. wanted to make sure Brazilian President Jair Bolsonaro was involved in the discussions.
“The US stands ready to assist Brazil in efforts to combat fires in the Amazon. We didn’t agree to a G7 initiative that failed to include consultations w/@jairbolsonaro. The most constructive way to assist w/ Brazil’s ongoing efforts is in coordination w/ the Brazilian Gov.” Marquis said.
Bolsonaro said he would only take a $22 million aid package pledged during the G-7 summit to fight the fires if French President Emmanuel Macron apologized to him for insinuating that Brazil doesn’t have sovereignty over the Amazon.
According to Brazil’s space agency, fires in the world’s largest rainforest are up more than 80%.
Local media has reported that farmers have been setting fires to clear land for additional development since Bolsonaro, who has been less stringent on environmental protection, took office in January. In addition to the fires, there has been increasing deforestation in Brazil.
The Amazon produces 20% of the world’s oxygen and is vital to combating climate change by absorbing carbon dioxide.
KIRSTEN GILLIBRAND EXITS THE RACE, TAKING HER CLIMATE CHANGE ‘MOONSHOT’ WITH HER: Senator Kirsten Gillibrand of New York, a presidential candidate who had proposed a $10 trillion “moonshot” plan to combat climate change, quit the race Wednesday after failing to qualify for next month’s debate.
Gillibrand was one of many candidates with a comprehensive climate plan with a goal of reaching net-zero carbon emissions across the economy by 2050. She frequently compared fighting climate change to the moon landing, saying that “saving our planet should be this generation’s moonshot.”
The main component of her plan was a $52 per ton carbon tax, spending the more than $200 billion projected annual revenues on renewable energy.
Gillibrand also proposed to “phase out” fossil fuel production, ending all new fossil fuel leases on public lands, and requiring a tougher “climate analysis” for building new energy infrastructure projects.
In exiting the race, Gillibrand follows Washington governor Jay Inslee, who ran a climate-focused campaign, and Colorado governor John Hickenlooper, who is now running for Senate.
The Rundown
New York Times US cyberattack hurt Iran’s ability to target oil tankers, officials say
Politico How Russia and China are preparing to exploit a warming planet
Reuters Oil giants shower Qatar with crown jewels in race for LNG prize
Time Climate activist Greta Thunberg, 16, arrives in New York after sailing across the Atlantic
Calendar
THURSDAY | August 29
House and Senate in August recess.
