Daily on Energy: Trump’s bid for the Asian energy market

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TRUMP’S ENERGY BID FOR THE ASIAN MARKET: The Trump administration will begin a push to create a market for U.S. energy technology and liquefied natural gas in the Asia-Pacific region, U.S. Agency for International Development Administrator Mark Green said Monday morning.  

Asia’s energy market growth is open to U.S. investment, “especially advanced energy technology and LNG,” Green told the Chamber of Commerce’s day-long forum on the Indo-Pacific region.

$3 trillion opportunity: The market in India alone will grow 250 percent by 2050, which is part of a $3 trillion opportunity in the region.

Requires ‘a lot’: “Meeting that kind of demand will require a lot” to help Asian countries rebuild their “antiquated infrastructure” to create a modern grid, Green said. He added that USAID will help “combat corruption” in those countries in order to help U.S. companies get the best deals in doing business in the region.

Asia Edge: The agency’s new initiative, called “Asia Edge,” will ensure the Asia-Pacific region is “free, fair and open to American business,” Green said. The agency will also work “to integrate regional markets” as a “multiplier” to boost other markets such as Afghanistan and Pakistan, said Green. He said efforts have already helped companies like GE become “confident enough to place bids.” It is all part of an effort to create a “level playing field,” he said.

Grid build-out: Other areas of opportunity include building out the electricity grid in the region, including advanced “smart grid” technologies and even mobile apps to allow consumers to pay bills online, Green said.

More energy experts deployed: Green said that the agency will be working to place “energy experts” in all its regional offices.

OPIC initiative: Overseas Private Investment Corporation chief Ray Washburne also announced Monday morning that his agency will be opening a first-time office in Japan to match LNG development there. Japan, the world’s largest LNG importer, will be a large investor in U.S. natural gas exports.

Wind turbines: Washburne said his agency recently approved debt financing for the largest wind farm in Asia in Indonesia and another in India, in addition to LNG terminals in Vietnam.

Double OPIC budget: Washburne wants the Senate to move forward legislation passed in the House to more than double OPIC’s budget to $60 million per year.

Ex-Im follies: The Export-Import Bank will also have a role in energy development in Asia. But for now it lacks enough board members to do much, a representative from the bank told the forum. The bank needs Trump’s nominations to pass the Senate to restore the quorum it needs to make big deals.

U.S. COMPETING WITH OTHER ‘POWERS’ THAT EXACT A ‘HEAVY PRICE’: “Other powers are reaching out as well,” but “they offer a very different bargain,” said Green. Without naming the countries, he said the deal the other powers offer will “exact a heavy price” on the countries there.

“Non-capitalist powers” are seeking to make deals with “distributing strings attached,” which will mean more debt and the loss of control of resources, Green said.

American dream: The American terms offer principles that look more like “the American Dream,” he said. Green explained that other countries have the same aspirations as the United States.  

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.

RICK PERRY TO DETAIL US ENERGY PLANS IN ASIA: Energy Secretary Rick Perry will unveil his agency’s role in the “Indo-Pacific” region later on Monday.

Perry is expected to discuss new liquefied natural gas investment in the U.S. by Japan and India to open new markets for U.S. shale natural gas in the region.  

Secretary of State Mike Pompeo, at the opening of the U.S. Chamber of Commerce’s Indo-Pacific Business Forum, announced $113 million in new initiatives, to support the energy, infrastructure and the digital economy, which he called “foundational areas of the future.”

Energy Secretary Rick Perry is scheduled to address the forum at 12:45 p.m. ET.

TRUMP MEETS WITH ITALIAN PRIME MINISTER: Natural gas investment is also expected to come up during Monday’s meeting between President Trump and Italian Prime Minister Giuseppe Conte.

The White House said Monday’s talks are aimed at “cooperation in addressing global conflicts and promoting economic prosperity on both sides of the Atlantic” while recognizing “the historical and cultural ties between the countries.”

TRUMP’S AUTO RULES ROLLBACK MEANS MORE FUEL BURNT: The Trump administration’s draft plan to weaken fuel efficiency rules for vehicles would increase fuel use by 500,000 barrels per day, according to a report.

An undated draft of the proposal, leaked to Bloomberg, said rolling back the Obama-era regulations would “reduce societal costs by about half a trillion dollars and reduce highway fatalities by up to a thousand lives annually” through 2029.

Societal costs could mean air pollution, traffic accidents, road congestion, and other issues.

The 700-page draft, posted online by the New York Times, asserts weakening the standards would have “minimal” impact on climate change and air pollution.

State of play: Details outlined in the leaked draft could change. The Trump administration won’t release its proposal for revised fuel efficiency rules for cars and light trucks until this week at the earliest, sources tell John and Josh. Stakeholders had been expecting publication last week.

But the Environmental Protection Agency, and National Highway Traffic Safety Administration, are expected to propose freezing fuel-efficiency and greenhouse gas emissions targets at 2020 levels through 2026, instead of raising them each year.

This would be the preferred option of several put forth by the agencies.

The Trump administration is also expected to propose revoking the exception that allows California to set its own, tougher fuel emissions standards, which more than a dozen other states follow.

Obama’s argument: The Obama administration’s fuel-efficiency and greenhouse gas rules for cars and light trucks had set a 54-mile per gallon standard by 2025, up from the current average of 38.3 mpg. It came to a different conclusion about costs and benefits, arguing the tougher rules would result in net benefits of about $98 billion.

Their stricter rules would have cut oil consumption by about 12 billion barrels and reduced carbon dioxide emissions by about six billion tons over the lifetime of the cars affected by the regulations, according to the Obama EPA.

Safety first: The Trump administration is poised to say that Obama-era fuel efficiency mandates should be less strict for safety’s sake. It will claim that higher fuel standards would make newer cars unaffordable, forcing drivers to use older, less-safe vehicles.

It will also resort to an argument frequently used over the last 40 years that less fuel-efficient cars can reduce traffic fatalities because they are heavier.

Counter point: A memo produced in March by Securing America’s Future Energy, a nonprofit that seeks to reduce oil use, contends that making a vehicle lighter — and more efficient — “when done properly, poses no overall increased safety risk.”’

FCC COULD BE GOING DEEPER INTO ENERGY SECURITY: The Federal Communications Commission could address the needs of the energy grid soon, especially given the increased focus on cybersecurity.

Growing dependence: Morgan O’Brien, the CEO of pdvWireless, a company that builds private telecom networks for utilities, sees the electricity sector’s growing reliance on the Internet making it more vulnerable to cyberattack. This was evident from a recent report that showed Russian hackers successfully infiltrated a U.S. utility firm’s plant controls.

Convincing Pai: O’Brien has helped lead an effort to convince the Federal Communications Commission that the utility industry needs its own dedicated radio bandwidth to keep its power plants, transmission lines, and customers safe. “There is a gathering consensus that something needs to be done,” he said in an interview with the Washington Examiner.

FCC is listening: FCC chairman Ajit Pai seems to be responding to their pleas, O’Brien said. Pai told lawmakers on Capitol Hill last week that the commission would issue a proposed rule soon that could pave the way for freeing up additional spectrum for utilities.

New rule coming: “I can say I am working with our staff, and we are drafting a notice of proposed rulemaking to follow up” on a notice of inquiry issued almost exactly one year ago, Pai told the Energy and Commerce Committee last week in response to a direct question by Rep. Leonard Lance, R-N.J., vice chairman on the committee’s communications panel.

The industry push: O’Brien sent joint comments with the Enterprise Wireless Alliance to the FCC earlier this month as the agency examines possible rule changes for spectrum that could include a dedicated source of bandwidth for utilities.

The argument: O’Brien has explained to the commission that the utility industry represents “critical infrastructure” that needs to be protected. But in order to protect itself it needs its own communications bandwidth freed up for its own private use.

DEMOCRATS CALL FOR INVESTIGATION INTO EPA’S NEW ACTING CHIEF: House Democrats asked the government’s chief ethics officer to investigate Andrew Wheeler, the acting EPA chief, for possible conflicts of interest.

‘Conflicts of interest’: Wheeler’s “past work as a coal lobbyist, and the many conflicts of interest which that work naturally presents to his leadership of the EPA demand that his meetings and communications be carefully scrutinized so that he is held to the highest ethical standard,” reads a letter sent Friday by four Democrats to the federal ethics office.

Further recusals: Reps. Don Beyer of Virginia, Raja Krishnamoorthi of Illinois, Pramila Jayapal of Washington, and Jamie Raskin of Maryland all signed the letter, asking the ethics office to clarify which clients and regulatory matters warrant future recusals by Wheeler to conform with “both the spirit and the letter of ethics rules.” The letter follows reports on Wheeler’s public calendar that showed he met with former clients when he was an industry adviser.

‘Tarnished’: “Andrew Wheeler is the Acting Administrator of the EPA because of the departure of Administrator Scott Pruitt, which occurred under a cloud of ethical controversy and scandal that tarnished the reputation of the Agency,” the Democrats said.

They want the ethics office to probe whether Wheeler’s meetings as acting administrator and deputy chief violated the administration’s ethics pledge that states that no appointee can engage with previous clients for two years.

IOWA’S ONLY NUCLEAR POWER PLANT TO CLOSE: The owner of Iowa’s only nuclear plant announced Friday that the plant will close in late 2020, the latest blow to the fading U.S. nuclear power industry.

NextEra Energy said it would shorten the term of their power purchase agreement with Alliant Energy by five years, prematurely ending the life of the 615-megawatt Duane Arnold Energy Center in Palo. The plant has been producing nuclear power since 1975.

Cost problem: Alliant Energy, a public utility, said the move to close the nuclear plant early would save Alliant’s customers about $300 million over 21 years, starting in 2020.

A spokesman for Alliant, Justin Foss, told the Gazette, an Iowa newspaper, that nuclear power has become more costly than renewable energy sources, especially wind. Iowa gets more than 35 percent of its electricity from wind, one of the highest rates in the country.

Fading industry: Nuclear’s struggle in Iowa follows a national trend, which the Trump administration is concerned about and wants to address. The Energy Department, on the orders of President Trump, is considering using emergency powers to subsidize coal and nuclear plants slated to close, citing national security risks.

Bipartisan concern: Some Democrats and environmental groups also fear the closure of nuclear plants, because nuclear power does not emit carbon dioxide or other greenhouse gases.

CALIFORNIA CARR FIRE CONTINUES TO GROW: Seven people are missing in Shasta, County, Calif., as the vicious Carr Fire has continued to grow after burning for nearly a week.

Two children and their great-grandmother were among the six killed as of Sunday, according to multiple reports.

The toll: The blaze has so far burned 193 square miles in the county, or nearly 90,000 acres, since erupting last Monday when a vehicle suffered mechanical failure.

More than 38,000 people remained under evacuation orders Sunday in and around the city of Redding, which is about 160 miles from Sacramento.

The blaze has destroyed more than 500 buildings and damaged 135 more. More than 5,000 structures are threatened by the fire.

Despite efforts by 3,500 firefighting personnel, more than 300 engines, and 17 water-dropping helicopters, just 5 percent of the fire is contained as of Sunday.

At least two people died fighting the fire, and several others, including three from Marin County, have been hurt.

Trump declares emergency: Trump on Saturday declared the fire an emergency, authorizing federal funds for disaster relief efforts.

More than a dozen other fires are burning across California, putting pressure on state resources.

 

FERGUSON FIRE TO KEEP YOSEMITE CLOSED THROUGH AUG. 3: Closures to the main section of the Yosemite National Park in California are expected to last until Aug. 3 because of the Ferguson wildfire, park officials announced Friday.

The section, called Yosemite Valley, is expected to reopen at 4 p.m. Aug. 3, the Los Angeles Times reported. Visitor services such as campgrounds, lodging and food service will be limited.

The Ferguson fire, which started July 13, had burned more than 46,000 acres as of late Friday, and killed of one Cal Fire firefighter responding to it. The fire is 29 percent contained.

Zinke grieves loss: Interior Secretary Ryan Zinke said Monday that a National Park Service firefighter has also been killed responding to the blaze.

“Saddened to hear of the loss of a @NatlParkService wildland firefighter at a fire near @YosemiteNPS,” Zinke said in a Twitter post. “We grieve for the loss and our prayers go out to the firefighter’s family and unit. Thank you for your service and sacrifice. Keeping all firefighters in my thoughts & prayers.”

TRUMP’S SCOTLAND GOLF COURSE DESTROYED LEGALLY PROTECTED LAND: The Trump International Golf Links Scotland has led to the “direct loss” of legally protected land, according to newly released documents.

Builder first: When the golf course, owned by Trump’s family business, was built in 2012, more than 160 acres of the 205-hectare Foveran Links site — legally protected sand dunes — were destroyed.

“The construction has removed the vast majority of the geomorphological interest within the vicinity of the golf course,” Scottish Natural Heritage said in documents released following a public records request. Britain’s Observer newspaper first reported the studies.

Trump’s defense: Trump had been permitted to build on the site despite the protected designation based on promises to create jobs and curate the dune site.

Trump International executive vice president Sarah Malone said the company owned less than 5 percent of the site of special scientific interest, or SSSI — and most of it remains untouched.

“As for the small portion that we do own, no other SSSI site in the land has seen more environmental care or investment,” Malone said in a statement to the Associated Press. “The site was ignored until Trump took ownership, and is now celebrated and enjoyed by many.”

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Calendar

MONDAY | July 30

House of Representatives out of session on congressional August recess.

12:45 p.m., Energy Secretary Rick Perry addresses U.S. Chamber of Commerce’s Indo-Pacific Business Forum.

WEDNESDAY | August 1

9:45 a.m., 53 Russell. Senate Commerce, Science and Transportation Committee Full committee markup of S.2242, the “COASTAL Implementation Act of 2017”; S.2773, the “Driftnet Modernization and Bycatch Reduction Act”; the “Endangered Salmon Predation Prevention Act”; Senate Office Building

10 a.m., 406 Dirksen. Senate Environment and Public Works Committee Full committee markup of pending business.

10:30 a.m., 406 Dirksen. Senate Environment and Public Works Committee hearing on “Examining EPA’s Agenda: Protecting the Environment and Allowing America’s Economy to Grow.”

2:30 p.m., 425 Third Street, SW. On-the-record roundtable discussion with incoming Renewable Fuels Association President and CEO Geoff Cooper and current President and CEO Bob Dinneen.

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