SIGN UP! If you’d like to continue receiving Washington Examiner’s Daily onEnergy newsletter, SUBSCRIBE HERE: http://newsletters.washingtonexaminer.com/newsletter/daily-on-energy/ |
TARIFFS ARE DISPLACING ETHANOL AS FARM COUNTRY’S GREAT WOE, SAYS JONI ERNST: The potential negative consequences of President Trump’s trade policies could replace the concerns farmers have about ethanol as a major issue in the midterm elections, says Sen. Joni Ernst, R-Iowa. 99 counties: Ernst will begin her 99-county tour of Iowa over the July 4th recess, where she says trade concerns will likely top farmers’ list of concernts, ahead of even the administration’s handling of the Renewable Fuel Standard. ‘Big issue’: “What I do anticipate will be a big issue is the trade issues that we’re having, right now,” Ernst told John Siciliano in an interview. “Even more than the RFS, it has reared its ugly head.” Midterms: When asked if the trade situation will be a defining issue in the 2018 midterm elections, Ernst said, “It will be in Iowa.” Trump won Iowa in 2016 on the promise of supporting farmers and the Environmental Protection Agency’s corn ethanol program. But with the prospects of tariffs driving up prices for farmers and increasing uncertainty from EPA on ethanol, it is unclear where the farm vote will go in November. Costs going up: “Prices have gone up 50 percent” for manufacturers in her state, she said. “So, that’s significant for those folks. And then the cost is passed on to our farmers.” Passed on to farmers: “If the manufacturer feels like they have to pass it on, they pass it on to the farmers,” Ernst explained. Tariff retaliation: The second wave of problems comes from countries who are preparing to retaliate for Trump’s imposition of tariffs on their goods. 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. BARRASSO GEARS UP FOR ENDANGERED SPECIES DEBATE: Sen. John Barrasso, R-Wy., chairman of the Environment and Public Works Committee, released draft legislation Monday morning to reform states’ role in protecting endangered wildlife. “We must do more than just keep listed species on life support — we need to see them recovered,” said Barrasso in a statement. Increase state input: He said the draft bill he released Monday will “increase state and local input and improve transparency in the listing process, which he says will promote the recovery of threatened and endangered species. GOP outlook: The GOP under Trump has been focusing on removing animals from the endangered species list once they have recovered, instead of keeping them on the list indefinitely, which can pose restrictions on economic activity. The draft bill “will promote the recovery of species and allow local economies to flourish,” Barrasso said. Working with the governors: “I have worked closely with the bipartisan Western Governors’ Association to draft a bill that works for endangered species and people alike,” the senator said. The bill would “elevate the role of state conservation agencies in species management,” said Barrasso’s office. The bill would also require that an endangered or threatened wildlife listing “include recovery goals, habitat objectives, and other criteria established by the Secretary of Interior, in consultation with impacted states, for the delisting or downlisting of the species,” according to a summary. CONSERVATIVE GROUPS PRESS TRUMP TO ABANDON COAL BAILOUT: A major coalition of conservative and free-market groups is urging President Trump to reconsider his proposal to bailout uneconomic coal and nuclear power plants. ‘Oppose’ bailout: “On behalf of our free market organizations and the millions of Americans we represent, we urge you to oppose a federal bailout of energy companies under Section 202(c) of the Federal Power Act,” the groups wrote in a letter sent to Trump on Friday. “Such a bailout would cost taxpayers billions of dollars and would represent an inappropriate government intervention into energy markets.” Who signed? The letter was signed by Grover Norquist, president of Americans for Tax Reform, Pete Sepp, president of Americans for Tax Reform, Tom Schatz, president of the Council for Citizens Against Government Waste, David Williams, president of the Taxpayers Protection Alliance, Jonathan Bydlak, president of the Coalition to Reduce Spending, Steve Ellis, executive director of Taxpayers for Common Sense, and Brent Wm. Gardner, chief government affairs officer of Americans for Prosperity. What’s Perry up to? The letter comes just days after Energy Secretary Rick Perry said a cost assessment of saving the power plants would be issued soon. Trump ordered Perry to take actions to save to plants after the Ohio-based utility First Energy asked the energy head to apply his authority under section 202c to keep its fleet of uneconomic plants from retiring prematurely. Perry had suggested months ago that he would likely not use his 202c authority because it was too limited under the law. But he did say he was open to using other powers under the Cold War-era Defense Production Act to keep the plants open as a matter of national security. Undermining Trump agenda: Although the conservative groups applaud Trump’s efforts to rollback regulations, they explain that bailing out these power plants would undermine the president’s market-based approach toward economic growth. ‘Tilting the field’: “Your efforts have helped create a more level playing field for competing energy sources to the great benefit of consumers and American energy companies,” the letter read. “However, a government bailout would mark a significant departure from your market-based approach by tilting the field in the favor of certain companies.” DEMOCRATS SAY NEW FERC RULING WOULD HARM CLEAN ENERGY: The Federal Energy Regulatory Commission late Friday ordered grid operator PJM Interconnection to rewrite their market rules to protect power plants from being harmed by state policies that provide subsidies to zero-carbon energy sources. Many states are increasingly supporting power plants that provide carbon-free energy, such as nuclear plants. Critics, such as the natural gas industry, say these policies limit competition in the wholesale power markets by creating price distortions that damage plants that don’t provide receive special payments from states. What FERC did: FERC, in its 3-2 ruling, rejected two proposals from PJM that are aimed at “mitigating” state energy programs in its market, which spans 13 states. But the commission’s three Republicans ordered PJM to rewrite its current market rules, saying they are “unjust and unreasonable and unduly discriminatory.” ‘Wrong side of history’: Democratic commissioners Rick Glick and Cheryl LaFleur issued sharp dissents, arguing FERC should not try to hamper state efforts to reward clean energy sources designed to combat climate change. Critics say FERC, by forcing PJM to rewrite its rules, is laying the groundwork for PJM to rescue uneconomic coal plants that are losing out in competitive markets. “Doing so puts the commission on the wrong side of history in the fight against climate change,” Glick said in a Twitter post. EPA ETHICS OFFICER CALLS FOR INVESTIGATIONS INTO SCOTT PRUITT: The ethics officer responsible for overseeing conduct at the Environmental Protection Agency has called for investigations into agency’s chief Scott Pruitt, after first defending the administrator’s actions, according to a new report. ‘The Known facts’: Kevin Minoli, the ethics officer, sent a letter Wednesday to the U.S. Office of Government Ethics informing it that he had referred potential ethics violations to the EPA’s inspector general after having determined that “the known facts” of certain conduct by Pruitt “demonstrate that some actions were inconsistent with the ethics requirements” of the EPA. The letter was first reported Saturday by the New York Times. Cooperating: Minoli said in the letter that he and his staff were fully cooperating with the inspector general in any investigations of the EPA. The newspaper reported that Minoli had defended Pruitt, issuing memos that cleared the EPA head on spending. The EPA inspector general is conducting a dozen investigations into potential ethics violations by Pruitt, including excessive spending for travel and security. PRUITT WANTS MORE TIME ON CLIMATE CHANGE COURT ORDER: Pruitt is asking a federal court for three more weeks to deliver the scientific basis for statements he made on CNBC earlier this year on human activity not causing climate change. July 11: Chief Judge Beryl Howell of the U.S. District Court for the District of Columbia ordered EPA on Saturday to complete conclude its search for the climate analysis by July 11 and produce it no later than August 1. The group that sued: The group Public Employees for Environmental Responsibility highlighted the decision on Monday morning. EPA was ordered by the judge last month to satisfy the group’s request under the Freedom of Information Act to provide the climate analysis. What’s at question: The analysis in question stems from comments Pruitt made on CNBC’s “Squawk Box” in March, stating that human activity is not “a primary contributor to the global warming that we see.” The group PEER filed a Freedom of Information Act request for the documents forming the analytical basis for the comments. EPA did not respond, and the group sued, which resulted in the court order. EPA SEEKS TO ‘CLARIFY’ REPEAL OF WOTUS: Pruitt issued a proposed rule on Friday to clarify the administration’s intention to repeal the Obama-era Waters of the U.S. rule, which is one of the pillars of Trump’s deregulation agenda. Intent to repeal: “We are making it clear that we are proposing to permanently and completely repeal the 2015 WOTUS rule and keep the pre-2015 regulatory framework in place as we work on a new, improved WOTUS definition,” Pruitt said in a statement. ‘Uncertainty’: Friday’s proposal requests comment on the legal basis of the 2015 Obama-era WOTUS rule, which EPA and the Army Corps “believe has led to uncertainty and confusion across the country,” EPA said in a statement. EPA and Army Corps proposed the rule together. TRUMP TURNS TO SAUDI ARABIA FOR OIL RELIEF AMID PRESSURE CAMPAIGN ON IRAN: Trump spoke with Saudi Arabia’s King Salman Saturday morning and asked him to increase his country’s oil production, a move that likely factors into the administration’s strategy to isolate and put economic and political pressure on Iran. Rising prices: Global oil prices rose drastically in response to the White House’s recent announcement of a zero-tolerance sanctions campaign on Iranian oil importers. Following the announcement, prices broke $70 a barrel for the first time since May, and Trump’s request of the Saudis is an obvious move to tamp down on rising costs. Trump’s warning: Last week, Trump warned European Union members to cut Iranian oil imports to “zero” by November or face strict sanctions, a direct response to the failure of the Iranian Nuclear Deal and the United States’ withdrawal from the framework last month. NATURAL GAS INDUSTRY AIMS TO STOP METHANE LEAKS TO BE FUEL OF FUTURE: The natural gas industry is selling itself as the fuel of the future, more than just a transitional energy source to a world dominated by renewable energy. Problem on the horizon: Natural gas’s move to replace coal as America’s most-used electricity source is responsible for most of the decline in planet-warming greenhouse gas emissions over the last few decades. But as the world struggles to meet emissions reductions goals set in the Paris climate change agreement, the natural gas industry knows it must confront its biggest problem — leaks of methane, a short-lived greenhouse gas that is more potent than carbon dioxide. That is the major theme that emerged from World Gas Conference, where 12,000 attendees from the around the globe, most from the industry, gathered last week. ‘Have to get ahead’: “There is a surprising camp intent on discrediting gas as an option for the future and that is very unfortunate,” said Bob Dudley, the CEO of BP, the British oil and gas giant, during a panel event at the conference. “Gas is key to the Paris goals. Renewables are very, very important, but [energy generation] cannot be erased to just renewables. We have an obligation to counter this view and make the case for gas that removes any doubts of its long-term benefits. We have to get ahead of methane emissions and leaks.” The leak problem: Methane, the main component in natural gas, is responsible for about a quarter of global greenhouse gas emissions, with the oil and gas industry accounting for one-quarter of methane emissions. A study this month in the journal Science found that methane leaks are a bigger problem than federal agencies say it is. The study found oil and gas operations have a methane leak rate of 2.3 percent, compared with the Environmental Protection Agency’s estimate of 1.4 percent figure, a 60 percent difference. While some environmental groups used the study to show that renewables should be counted on more in the future energy mix, others want to help natural gas become cleaner. ‘The grand promise’: “A core strategic challenge for this industry is to tackle the opportunity to reduce methane emissions,” said Fred Krupp, president of the Environmental Defense Fund, which produced the methane study with the help of academics. “This industry needs to expect there will big a push in the direction of environmental quality. That’s why living up to the grand promise that natural gas is a cleaner fuel is so important.” Technology opportunity: Krupp, as well as industry leaders, said a key to preventing methane leaks from natural gas is developing new technology that helps companies better detect leaks. The Environmental Defense Fund aims within three years to launch a satellite to measure methane emissions from global oil and gas operations. Krupp estimates that 75 percent of methane emissions can be eliminated, half at no cost, giving companies an economic incentive to plug leaks. RICK PERRY EXPECTS MEXICO’S NEW PRESIDENT TO BE A ‘WILLING PARTNER’ ON ENERGY: Perry told Josh he’s unconcerned about U.S. energy investment in Mexico being hit by the election of new president Andrés Manuel López Obrador. López Obrador, a leftist, has threatened to roll back constitutional reforms from 2013 that opened Mexico’s formerly nationalized energy industry to foreign investment. ‘Our neighbor’: “Regardless of who was or will be the next president of Mexico, they are our neighbor,” Perry told Josh last week in response to a question at the World Gas Conference. “They aren’t moving. The resources will be there. The need to develop those resources will be there. I have complete confidence, regardless of your political leanings, you’re going to need resources to address the needs of your countries and citizens. Mexico is going to be very willing to work with private sector partners in the U.S., and continuing as a good neighbor.” Perry said he sees Mexico in particular being a prime export market for U.S. natural gas, as more pipelines are built. The Energy Department, partnering with the Overseas Private Investment Corporation, last week announced a commitment to invest $1 billion in Mexico’s energy sector over the next three years. Hold up: David Goldwyn, former State Department special envoy and coordinator for international energy affairs, argued Sunday that Obrador will have problems undoing Mexico’s reforms, if he chooses to. Some of the reforms were constitutional and statutory changes that can’t be undone by executive action. “The estimated $200 billion in new foreign investment in Mexico, new production coming online in ninety awarded blocks among sixty-eight operators, the opening of more than 1,700 gas stations by thirty new private operators, and the development of an unbundled, competitive retail power market will continue unabated,” Goldwyn said. Big proposals: But as a candidate, Lopez-Obrador spoke in favor of pausing new oil and gas investment, building more refining capacity within Mexico, and developing the nation’s gas supplies, to ensure greater energy self-sufficiency. Obrador has said he intends to uphold existing projects. CALIFORNIA UTILITY PROPOSES WORLD’S BIGGEST BATTERY: California utility Pacific Gas & Electric Co. is seeking to build the world’s largest battery to store electricity. Build out: The utility proposed four energy storage projects totaling nearly 570 megawatts in a filing to regulators Friday, the Wall Street Journal reported. The proposal includes a 300-megawatt battery at a natural gas plant owned by Vistra Energy Corp, which would be the largest such project. PG&E also wants to build a 183 megawatt battery system that would be built by Tesla, the electric car maker, as well as two smaller projects. Big picture: The California Public Utilities Commission must approve the projects for them to happen. Energy storage is seen as key to allowing variable energy sources wind and solar to provide electricity more frequently. RUNDOWN Washington Post Emails reveal close rapport between top EPA officials, those they regulate Wall Street Journal Trump wants oil world doesn’t have to give Bloomberg This tiny country says it can beat climate change M Live Flint schools plan to start next year with water jugs, not drinking fountains Houston Chronicle Canada becomes competitor to Gulf Coast petrochemical industry |
CalendarMONDAY | July 2 Congress in recess all week. TUESDAY | July 3 1 p.m., The Federalist Society’s Environmental Law and Property Rights Practice Groups hosts a teleforum call to discuss Municipality Lawsuits on Climate Change and Public Nuisance. WEDNESDAY | July 4 Happy Independence Day. Enjoy the fireworks! |