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    Industry and Association News

  1. (ACC Mentioned) U.S. Specialty Chemicals Market Ends Second Quarter on Soft Note

    Jul 23, 2015 | PRNewswire

    he Specialty Chemicals Market Volume Index, a new tool created by the American Chemistry Council (ACC), ended the 2nd quarter on a soft note, falling 0.3 percent on a three-month moving average basis (3MMA) in June from the previous month.
  2. Chemical Management News

  3. New Chemical Reforms are Vital to TSCA Legislation, Says Former Top Official for EPA Toxics Office

    Jul 23, 2015 | Environmental Defense Fund

    By Richard Denison

    In an op-ed published in today’s Roll Call, Dr. Lynn Goldman, Dean of the Milken Institute School of Public Health at the George Washington University, makes the case for why TSCA reform legislation needs to include changes to the provisions of the Toxic Substances Control Act (TSCA) that govern requirements for new chemicals prior to market entry.
  4. House Dust Chemicals Activate Receptor Linked to Obesity

    Jul 23, 2015 | Chemical Watch

    By Emma Davies

    Chemicals found in house dust can activate an important human receptor linked to obesity, according to a US study.
  5. Furfuryl Alcohol Proposed for California Proposition 65 List

    Jul 23, 2015 | Chemical Watch

    California's Office of Environmental Health Hazard Assessment is planning to list furfuryl alcohol on its Proposition 65 list of chemicals, known to the state to cause cancer.
  6. Chemical Security News

  7. No Hazard Yet from N.J. Warehouse Blaze, EPA Says

    Jul 23, 2015 | E&E - Greenwire

    Federal officials are monitoring a fire at a warehouse in North Brunswick, N.J., to ensure that the blaze does not release chemicals into the air.
  8. US EPA Silent on Setting CBI Time Limits

    Jul 23, 2015 | Chemical Watch

    The US EPA is yet to carry out a 2012 recommendation from its Office of Inspector General, to set a time limit for all chemical sector confidential business information claims, according to a report submitted to Congress.
  9. IG to Assess Progress on Risk Management Inspections

    Jul 23, 2015 | E&E - Greenwire

    By Sam Pearson

    U.S. EPA's inspector general will check the agency's progress on beefing up its risk management program after an audit uncovered quality control issues more than two years ago.
  10. Congress Lumbers toward Responses to Grid's Cyber and Physical Threats

    Jul 23, 2015 | E&E - Energywire

    By Peter Behr

    Legislation to protect the nation's power grid from a wide range of threats -- from extreme weather and solar storms to a cyberattack and nuclear explosions -- is gaining more traction in Congress.
  11. Cyber Leadership Void in Congress

    Jul 23, 2015 | The Hill - Congress Blog

    By James Norton

    With August recess and the end of the fiscal year looming, congressional leaders say they are focused on cyber security.
  12. Energy and Environment News

  13. Obama Administration Clears Shell to Begin Drilling

    Jul 23, 2015 | E&E - Energywire

    By Phil Taylor and Nathanial Gronewold

    The Obama administration yesterday gave Royal Dutch Shell PLC the green light to start drilling for oil in the Arctic Ocean this summer but barred the company from penetrating oil-bearing rock until a key ice-breaking ship is repaired and arrives at the drill site.
  14. Pipelines to Carry Cheap Gas from Northeast to Down South

    Jul 23, 2015 | E&E - Energywire

    New pipelines designed to carry Marcellus Shale gas from the glut of cheap gas in the Northeast to the Southeast will slowly close the price and supply divide between the Northeast and Southeast.
  15. Pennsylvania Task Force Tackles Plan for 30,000-Plus Miles of Pipelines

    Jul 23, 2015 | E&E - Energywire

    By Mike Lee

    Pennsylvania's top environmental regulator is pushing for a centralized, data-driven approach to planning the tens of thousands of miles of pipeline that will be needed to serve the Marcellus Shale gas field.
  16. Bush Endorses Rollback of Fossil-Fuel Subsidies

    Jul 23, 2015 | PoliticoPro Whiteboard

    By Elana Schor

    Environmental activists today released video of Jeb Bush endorsing an end to all energy “subsidies,” including fossil-fuel tax benefits as well as incentives for renewables.
  17. Bush Calls for Ending Subsidies for Oil, Gas

    Jul 23, 2015 | The Hill - E2 Wire

    By Devin Henry

    Republican presidential candidate Jeb Bush says he would look to end all energy subsides, including for fossil fuel, if he’s elected president.
  18. Climate Rule to Bring Lower Energy Bills, Report Says

    Jul 23, 2015 | The Hill - E2 Wire

    By Timothy Cama

    States can significantly lower electricity bills for consumers and businesses if they take the right steps in complying with the Obama administration’s climate rule for power plants, a new report concludes.
  19. N.Y., N.J. Port Operators Agree to Reduce Emissions

    Jul 23, 2015 | E&E - Greenwire

    By Amanda Peterka

    Port operators in New York and New Jersey have voluntarily agreed to take steps to reduce air pollution from diesel engine exhaust.
  20. U.S. Politicians Push for Climate Action at Vatican as Pope's Poll Numbers Plunge

    Jul 23, 2015 | E&E - Climatewire

    By Scott Detrow

    Dozens of mayors from around the world signed on to a joint declaration at the Vatican this week declaring climate change a "scientific reality" and calling for a "rapid transformation to a world powered by renewable and other low-carbon energy."
  21. Poll: Swing-State Voters Back Climate Change Action, Gay Marriage

    Jul 23, 2015 | The Hill - Briefing Room

    By Ben Kamisar

    Swing-state voters in Colorado, Iowa and Virginia are embracing Pope Francis’s push for action on climate change and the recent Supreme Court decision on gay marriage, according to a Quinnipiac University poll released Thursday.
  22. Swing States Back Pope on Warming, Dislike Morality Message

    Jul 23, 2015 | E&E - Greenwire

    By Jean Chemnick

    Swing-state voters agree with Pope Francis by healthy margins that climate change is caused by humans and that action to address it is needed, but they balk at his message that doing so is a moral issue, according to a new poll.
  23. C2ES' Diringer Discusses Negotiator Dialogues Ahead of Paris Meeting

    Jul 23, 2015 | E&E TV

    Last year, the Center for Climate and Energy Solutions (C2ES) organized the "Toward 2015" dialogue, drawing together climate negotiators from more than 20 countries for in-depth discussions on a Paris climate treaty. During today's OnPoint, Elliot Diringer, executive vice president at C2ES, discusses the outcome of the nearly 100 hours of discussions. He also previews the outlook and expectations for December's U.N. meeting in Paris.
  24. Pollution isn't Colorblind: Environmental Hazards Kill More Black Americans

    Jul 23, 2015 | The Guardian

    By Keith Ellison and Van Jones

    Thanks to people’s movements like Black Lives Matter and the Fight For 15, the call for racial and economic justice is getting louder and stronger. But while we are out on the streets fighting for equality, our kids are being poisoned by the air they breathe. Environmental injustices are taking black lives – that’s why our fight for equality has to include climate and environmental justice too.
  25. Coal, Oil Companies Should Make More Early Legal Deals with Indigenous Groups -- Report

    Jul 23, 2015 | E&E - Energywire

    By Benjamin Hulac

    In late November 2013, closing arguments winded down in a Manhattan courthouse over a three-decade-old legal battle over massive pits of toxic waste left for indigenous tribes to clean up in the Ecuadorian rainforest.
  26. California's Powerful and Influential Air Pollution Watchdog

    Jul 23, 2015 | Los Angeles Times

    By KATE GALBRAITH

    On the outskirts of Los Angeles, in a nondescript laboratory, a man in a yellow T-shirt and helmet sits on a stationary motorcycle, looking intently ahead. The bike's back wheel is spinning and a long orange tube connects to its exhaust pipe. A fan roars, mimicking wind.
  27. Transportation News

  28. Feds Nudge Railroads on Bakken Oil Train Whereabouts

    Jul 23, 2015 | E&E - Energywire

    By Blake Sobczak

    The top U.S. rail regulator sent a sternly worded letter yesterday reminding railroads to stay transparent about their oil shipments.
  29. Full Text of Stories Below

    Industry and Association News

  1. (ACC Mentioned) U.S. Specialty Chemicals Market Ends Second Quarter on Soft Note

    Jul 23, 2015 | PRNewswire

    The Specialty Chemicals Market Volume Index, a new tool created by the American Chemistry Council (ACC), ended the 2nd quarter on a soft note, falling 0.3 percent on a three-month moving average basis (3MMA) in June from the previous month. This follows steady declines since December as weakness in oilfield chemicals and a few other segments weighed on overall volumes. Of the twenty-eight specialty chemical segments included in the index, thirteen expanded in June, fourteen declined and one was flat.

    The overall specialty chemicals volume index was up only 0.1 percent year-over-year (Y/Y) also on a 3MMA basis. Year-earlier comparisons were generally in the 4.0 percent to 6.8 percent range during 2012-2014 but since February of this year they have been below that range as the downturn in the oil and gas sectors affected headline volumes. Still, on a Y/Y basis, gains are fairly widespread among most market and functional specialty chemical segments and, in some cases, they are improving. Compared to last year, June volumes were up in twenty-one segments and down in seven segments. That said the year-earlier comparisons have been moderating.

    Specialty chemicals are materials manufactured on the basis of the unique performance or function and provide a wide variety of effects on which many other sectors and end-use products rely. They can be individual molecules or mixtures of molecules, known as formulations. The physical and chemical characteristics of the single molecule or mixtures along with the composition of the mixtures influence the performance end product. Individual market sectors that rely on such products include automobile, aerospace, agriculture, cosmetics and food, among others.

    Specialty chemicals differ from commodity chemicals. They may only have one or two uses, while commodities may have multiple or different applications for each chemical. Commodity chemicals make up most of the production volume in the global marketplace, while specialty chemicals make up most of the diversity in commerce at any given time, and are relatively high value with greater market growth rates. Some areas where specialty chemicals are used include adhesives, cleaning materials, cosmetic additives, construction materials, food additives, fragrances and detergents

    This data is the only timely source of market trends for twenty-eight market and functional specialty chemical segments. Chemistry directly touches over ninety-six percent of all manufactured goods, and trends in these specialty chemical segments provide a detailed view of trends in manufacturing. The data also sheds light on how various consumer end-use markets are performing compared to others in the marketplace.

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  2. Chemical Management News

  3. New Chemical Reforms are Vital to TSCA Legislation, Says Former Top Official for EPA Toxics Office

    Jul 23, 2015 | Environmental Defense Fund

    By Richard Denison

    In an op-ed published in today’s Roll Call, Dr. Lynn Goldman, Dean of the Milken Institute School of Public Health at the George Washington University, makes the case for why TSCA reform legislation needs to include changes to the provisions of the Toxic Substances Control Act (TSCA) that govern requirements for new chemicals prior to market entry.

    The op-ed is notable for two reasons.  First, it addresses a key difference between the Senate and House versions of TSCA reform legislation.  The Frank R. Lautenberg Chemical Safety for the 21st Century Act (S. 697) includes numerous upgrades to Section 5 of TSCA governing new chemicals and significant new uses of existing chemicals.  Dr. Goldman’s op-ed points to the critical improvements the Senate bill would make.  In contrast, the TSCA Modernization Act of 2015 (H.R. 2576) passed by the House of Representatives would leave Section 5 unchanged.

    Second, Dr. Goldman is uniquely qualified to address this issue, having served as Assistant Administrator at the Environmental Protection Agency from 1993 to 1998, overseeing the office that implements TSCA.

    Dr. Goldman, a pediatrician, stresses the importance to public health of reforming how EPA reviews and regulates new chemicals prior to their entry into commerce.  These provisions have never been amended since TSCA was adopted nearly 40 years ago.  That’s why it’s a vital element to include in any meaningful reform of our nation’s obsolete chemical safety law.

    For more on how the Senate and House TSCA legislation compare, see these earlier posts.

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  4. House Dust Chemicals Activate Receptor Linked to Obesity

    Jul 23, 2015 | Chemical Watch

    By Emma Davies

    Chemicals found in house dust can activate an important human receptor linked to obesity, according to a US study.

    The "master" receptor, peroxisome proliferator-activated nuclear receptor gamma (PPARgamma), regulates lipid metabolism, cell proliferation and cell death (CW 5 December 2013). There is growing evidence that PPARgamma activation may be a “key factor for obesity”, say the researchers, led by Heather Stapleton from Duke University.

    In the past few years, a number of common environmental contaminants, including tributyltin and a metabolite of the phthalate DEHP, have been shown to activate the receptor. Dr Stapleton's team has recently found a wide range of chemicals, including organophosphates and polybrominated diphenyl ether (PBDE) metabolites, to bind to PPARgamma.

    The team also discovered that chemicals in house dust samples bind to the receptor. “House dust is an important pathway for the uptake of environmental contaminants,” said co-author Mingliang Fang. Young children are the most exposed, ingesting about 50mg of dust per day, according to figures from the US EPA.

    However, such binding does not necessarily activate the receptor. To investigate further, the team monitored PPARgamma activation, using a commercially available reporter gene assay. Their tests revealed that 28 of 30 common semi-volatile compounds (SVOCs) can do so. Meanwhile, 15 of 25 indoor dust samples, collected from homes, gyms and offices, showed “significant” PPARgamma activation.

    Results varied for the different types of dust. A previous study had found higher concentrations of PBDEs in gymnasium dust, probably resulting from treated foam mats. However, the gym dust caused no obvious activation, perhaps suggesting that PBDEs are not the main culprits.

    “This is the first time PPARgamma1 agonistic effects, from mixtures of chemicals present in house dust extracts, were found,” write the researchers in Environmental Science and Technology.

    The study shows how seemingly small changes to structure can significantly affect receptor activation. For example, triphenyl phosphate (TPP) is more potent than its phosphite form. To bind, it would appear that chemicals need a long chain, says Mr Fang. Halogenation also seems to increase binding, he adds.

    The researchers were interested to find that a tert-butyl phenyl diphenyl phosphate (BPDP) commercial flame retardant mixture - which contains TPP, BPDP isomers, dibutylphenyl and tributylphenyl phosphates - is more potent than TPP alone.

    BPDP is "of interest", say the researchers, because it is not only used as a flame retardant but is also added to lubricants, hydraulic fluids and plastics. 

    Stapleton's team is currently studying how "environmentally realistic" chemical mixtures activate PPARgamma, with the possibility of the constituents having additive or synergistic effects.

    “Our idea is to mimic real environmental exposure, with many chemicals, at low levels,” says Mr Fang. After running assays, the researchers use mathematical models to see whether the observed effects can be explained by a simple addition of chemicals in the mixture, or whether they may be acting synergistically.

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  5. Furfuryl Alcohol Proposed for California Proposition 65 List

    Jul 23, 2015 | Chemical Watch

    California's Office of Environmental Health Hazard Assessment is planning to list furfuryl alcohol on its Proposition 65 list of chemicals, known to the state to cause cancer. 

    The agency will accept comments on the intended listing until 31 August.

    Furfuryl alcohol is used to make furan resins, as a solvent in textile printing and alkaline print stripping, and as an intermediate substance in chemical synthesis processes.

    In food applications, it can be formed during thermal processing and when sugars dehydrate.

    The substance meets the state's listing criteria, based on a 2014 US EPA report that showed it causes an increased incidence of rare nasal tumours in male rats, and several types of kidney tumours in male mice.

    In Europe, furfuryl alcohol has been evaluated under REACH because of concerns relating to genotoxic effects on humans. It is widely used, including by consumers, and there are high releases to the environment.

    The evaluation concluded that more information is needed in order to decide if any regulatory action is necessary. In May, Echa published a decision, asking the registrants to test the substance's effects on the stomach, kidney and liver of mice.

    Separately, the agency determined that evidence from the same EPA study did not support the listing of furfural as a substance known to cause cancer.

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  6. Chemical Security News

  7. No Hazard Yet from N.J. Warehouse Blaze, EPA Says

    Jul 23, 2015 | E&E - Greenwire

    Federal officials are monitoring a fire at a warehouse in North Brunswick, N.J., to ensure that the blaze does not release chemicals into the air.

    "There's no environmental hazard as of right now," U.S. EPA spokesman Dwayne Harrington said.

    Hundreds of people were evacuated yesterday out of concern for chemical risks as a large plume of smoke ascended above the warehouse. It is not clear when they will be able to return. Other residents were told to conserve water, close their doors and windows, and avoid using their air conditioners.

    Hazmat crews are still performing air quality tests.

    Officials say roughly 500,000 pounds of plastic, as well as automotive parts, linoleum, rugs and other goods, was stored at the warehouse.

    The fire started around 2 a.m. yesterday. By noon, it was largely under control but still raging in the part of the warehouse that housed plastics (Patti Sapone, NJ.com, July 23).

    Smoke from the blaze was so large, it was picked up by a weather satellite photo.

    A firefighter was treated at the scene for a hand injury (Associated Press, July 23).

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  8. US EPA Silent on Setting CBI Time Limits

    Jul 23, 2015 | Chemical Watch

    The US EPA is yet to carry out a 2012 recommendation from its Office of Inspector General, to set a time limit for all chemical sector confidential business information claims, according to a report submitted to Congress.

    Last year, the agency told the OIG it expected to issue a proposed rule by 30 September (CW 19 June 2014).

    It subsequently said this was being delayed, due to “further senior management discussions, leading to a decision to develop a more complex and comprehensive rule.”

    In a report to Congress in February this year, the OIG quoted the EPA as saying that it was still in the “development stage” of the CBI rulemaking and does not have a “timeframe for issuing the proposal” (CW 12 February 2015).

    The OIG has listed the failure to issue the proposed rule among unimplemented recommendations in its latest semi-annual report to Congress. However, the report does not cite any reasons for the delay or a proposed date for it.

    On another issue, the report says the agency told the OIG that it proposes to develop “robust, transparent and adequately supported performance measures that capture” the Design for the Environment programme's results, by 30 September, this year.

    The DfE is a voluntary programme that aims to promote safer product design and green chemistry alternatives, through “informed substitution” of chemicals. The DfE label was revamped in March to make it more consumer friendly (CW 9 June 2015).

    The EPA also agreed to develop and implement 

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  9. IG to Assess Progress on Risk Management Inspections

    Jul 23, 2015 | E&E - Greenwire

    By Sam Pearson

    U.S. EPA's inspector general will check the agency's progress on beefing up its risk management program after an audit uncovered quality control issues more than two years ago.

    The Office of Inspector General's 2013 report found 15 of 45 risk inspectors were given credentials without any documentation that they met minimum training requirements. In addition, six of 12 of their supervisors did not meet EPA's minimum training requirements.

    OIG also found evidence that there were few procedures to monitor the quality of inspections, raising questions about how effectively the agency was able to identify violations even at the small percentage of sites it checks each year.

    The inspections are crucial because a noncompliant facility "could lead to accidental airborne releases of harmful chemicals, as well as an inadequate response to protect the public when such releases occur," the report notes.

    About a month after the report's release, a fertilizer plant exploded in West, Texas, killing 15 people. That brought new attention to the issue of chemical security and prompted President Obama to issue an executive order launching an interagency working group to evaluate how to improve existing programs, including EPA's risk management program.

    The follow-up review, which the OIG sent to EPA on July 15 and released yesterday, will focus on some, but not all, of the earlier recommendations.

    Among areas to be checked: whether EPA has revised the training curriculum used for risk management program inspectors, if it has developed clearer guidance for conducting compliance audits and whether contracts used at some regional offices were amended to ensure that support staff for the program are subject to more stringent training requirements.

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  10. Congress Lumbers toward Responses to Grid's Cyber and Physical Threats

    Jul 23, 2015 | E&E - Energywire

    By Peter Behr

    Legislation to protect the nation's power grid from a wide range of threats -- from extreme weather and solar storms to a cyberattack and nuclear explosions -- is gaining more traction in Congress.

    A House Energy and Commerce subcommittee yesterday unanimously backed the need for a federal plan to build a strategic reserve of the large transformers that move power across the interstate transmission network. The bill would give the Energy secretary a year from the legislation's enactment to send Congress the plan for acquiring and stockpiling the spare units.

    The bill also would establish a voluntary program called Cyber Sense at the Energy Department to test grid hardware and technologies for cybersecurity vulnerabilities.

    In the Senate, the chairman of the Senate Homeland Security and Government Affairs Committee said he will push for legislation that would fund devices that can shield vital grid transformers from dangerous rogue electrical currents triggered either by a solar geomagnetic disturbance (GMD) or by detonation of an electromagnetic pulse (EMP) weapon.

    Sen. Ron Johnson (R-Wis.), the committee chairman, could scarcely contain his frustration at a hearing yesterday about what he sees as a "ridiculous" delay in addressing the threats to the grid from a massive, once-in-a-century solar storm or from electromagnetic pulses triggered by detonating a nuclear weapon above the United States. A congressional commission first highlighted the threats in 2004.

    An EMP explosion could put large parts of the grid out of service for months, or a year, or more, "and some would say that is optimistic," he said. "We have done nothing." He said he was no friend of federal mandates, but in this case, if the government has to pay for first levels of protection, then that should happen.

    Johnson asked experts at the hearing yesterday about the value of electronic blocking devices that could shield high-voltage grid transformers from currents from solar storms or EMP explosions.

    "There have been several successful trials of such blocking devices in the United States, Canada and elsewhere, and they are now offered for sale to the industry," said Richard Garwin, IBM fellow emeritus at the IBM Thomas J. Watson Research Center in New York.

    "Their cost is on the order of $100,000 per transformer," Garwin said, "but they protect transformers that at a high-power terminal may cost $10 million and can preserve the economy of a million Americans that would otherwise suffer from temporary disruption if the power line needed to be shut off, and severe economic loss and even loss of employment and life."

    Joseph McClelland, director of the Federal Energy Regulatory Commission's Office of Energy Infrastructure Security, told the committee, "A few U.S. entities have taken some initial steps to address EMP on their systems, but much work remains."Complex relations

    FERC has initiated development by the North American Electric Reliability Corp. (NERC) of a two-part standard to protect the grid against solar flares. It approved the first phase, which requires transmission grid operators to set up operating procedures to isolate critical facilities from a GMD event. The second phase, still awaiting conclusion, would require more extensive and automatic protections that could include blocking devices.

    "The NERC standards are a baseline approach," McClelland said. "They are a foundational approach. And they certainly don't represent best practices that the industry could bring to bear."

    Responding to Johnson, McClelland noted that FERC has identified the most critical substation hubs in the high-voltage grid, whose loss would put the grid in greatest jeopardy, and has shared that with the grid owners and operators.

    FERC and NERC have reached different conclusions about the most likely consequences of a massive solar weather event on the grid, with FERC citing expert warnings that as many as 300 high-voltage transformers could become overheated and ruined by the currents. NERC concluded that the disruption would most likely take down the grid before there was time for widespread loss of critical transformers.

    Garwin of the IBM center said NERC and FERC "have a complex relationship themselves" and with the grid's operating companies. "Thus far, the national interest in a more resilient bulk power system has not resulted in incentives or initiatives" that would achieve the grid protection he is urging, he said.

    There are technical issues, "but economic and organizational changes must be sought to result in the adoption of best worldwide practices in the North American bulk power system, and to advance beyond those best practices, where it is justified in the national interest."

    Although solar storms and EMP shock waves from nuclear detonations have similarities, they have received different reactions from the utility industry and some members of Congress, with the industry arguing that unlike the solar threat, a missile-launched EMP attack is too much for the industry to defend against.

    "Some propose that industry install their particular 'protective device' or fully 'gold-plate' the entire grid so that it could, theoretically, at least partially survive a high-altitude nuclear blast," said committee witness Bridgette Bourge, senior principal for legislative affairs at the National Rural Electric Cooperative Association.

    "However, there is no consensus on precisely what measures should be taken, the unintended effects they might have on the system, how much such an effort would cost, or how successful such efforts would be in limiting impacts to the bulk power system. "

    Another witness from the Government Accountability Office reported on a preliminary examination of the Department of Homeland Security's efforts to address the GMD and EMP issues, saying the department's response was lacking in certain areas.

    "GAO's preliminary work suggests that DHS, in conjunction with the Department of Energy (DOE), has not fully addressed a key critical infrastructure protection responsibility -- identification of clear internal agency roles and responsibilities related to addressing electromagnetic threats," said Christopher Currie, GAO's director for homeland security and justice.'Get moving'

    While the House Energy and Power subcommittee's unanimous vote shows bipartisan support for a strategic transformer reserve, major questions remain on how the reserve would be organized and paid for, and how such a government program would mesh with current industry programs to share spare transformers in emergencies.

    These issues have come to the fore in a proceeding at FERC, docket EL15-76, initiated by a group of power companies that have proposed to create an independent organization called Grid Assurance that would purchase large transformers and other essential grid equipment as emergency stockpiles. Affiliates of American Electric Power Co., Berkshire Hathaway Energy, Duke Energy Corp., Edison International, Eversource Energy, Exelon Corp., Great Plains Energy Inc. and Southern Co. are behind the project.

    Utilities joining the program would pay a subscriber fee to cover storing and maintaining the stockpile, then pay a cost-based price for any equipment they needed, the sponsors said.

    International Transmission Co., an independent power line developer, advised FERC that while it supports the project as a general matter, it sees two issues. Grid Assurance would create a materials company with a utility rate structure, "an unprecedented cost recovery model over which commission jurisdiction is unclear," it said. And it asked whether it would be better to expand existing industry programs, particularly the Spare Transformer Equipment Program (STEP) operated by the Edison Electric Institute.

    Grid Assurance responded that its program would complement STEP. "Grid Assurance's sparing service will not displace or impact STEP," it said in a FERC filing.

    Yesterday, Johnson insisted it was time to get started, if not with transformers, then with the far cheaper blocking devices. He said Congress should authorize $100 million to begin purchasing the devices. Would that be an issue for the industry? he asked Bourge.

    "There would be some concern about flexibility, of what kind of technology would be applied, and where it would be applied," she said. "I'm not sure if we would be comfortable in it being a mandate."

    "I want to get moving," Johnson insisted.

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  11. Cyber Leadership Void in Congress

    Jul 23, 2015 | The Hill - Congress Blog

    By James Norton

    With August recess and the end of the fiscal year looming, congressional leaders say they are focused on cyber security.  They are focused on the private sector as they work to collaborate on legislation, which would bolster information sharing between the government and corporations.  They are focused on the executive branch as they review the results of the White House’s 30-day “cybersecurity sprint.”  But to truly address our cybersecurity vulnerabilities Congress must turn its focus within.

    Consider three recent cybersecurity issues and Congress’ response.  As the government has disclosed, the cyber attack on the Office of Personnel Management (“OPM”) compromised the personal information of over 21 million federal employees, contractors, and legislative leaders.  Congress is now running a read and react playbook, scrambling to get movement on any cyber security bill.  The most viable bill appears to be the cybersecurity Information Sharing Act (“CSIA”), which would bolster information sharing between the government and the private sector through liability protection.  A good policy to implement however, it remains unclear what—if anything—the CSIA would do to prevent another cyber attack on the federal government.  Furthermore, the CSIA is at best a piecemeal fix at a time when comprehensive reform is desperately needed.

    Just last week, the Department of Defense requested a whopping $4.5 billion be reprogrammed in the wake of OPM attack.  To put it in perspective, that amount is four times as much as the Department of Homeland Security (“DHS”) spends on cyber security in an entire year.  It seems staffers will handle this reprogramming request, without the benefit of hearings and public debate.  If so, taxpayer dollars will once again be thrown at the cyber problem without real scrutiny as to whether they will be used efficiently and effectively.  This week brought the news that DHS’s political leadership—including the Secretary himself—may have exposed the Department to vulnerabilities by using personal e-mail accounts on government desktops.  There is no indication that those in Congress charged with overseeing DHS knew top-level officials were being granted exemptions from the Department’s ban on the use of personal e-mail. 

    The same problem is causing Congress’ bungled response in each instance.  Far too many committees and subcommittees have jurisdiction over cybersecurity.  The complicated web of congressional jurisdiction makes for a split decision process on cyber policy and leads to weak oversight over DHS and other critical agencies.  A Congressional leader has not emerged to truly take the cybersecurity reigns.

    In contrast, take for example the response to the Federal Emergency Management Agency’s (“FEMA”) unforgivable response to Hurricane Katrina.  From the outset, Congress’ response was ushered by Sens. Collins (R-Maine) and Lieberman (D-Conn.)—leaders of the Senate Committee on Homeland Security and Governmental Affairs.  Collins and Lieberman conducted a rigorous and thorough investigation of the causes of FEMA’s failures.  Less than a year later, they introduced informed and sensible legislation to reform the agency.  Their bipartisan collaboration and heavyweight status in the Senate helped get the legislation through, including the necessary funding to put FEMA on track.

    Before Congress can reform cyber security across the federal government and private sector, it must reform itself.  To end the stalemate a joint committee on cyber should be considered with leadership that has a history of bipartisanship at the helm.  Once in place, the committee would stand at the ready to respond to cyber security issues as they arise.  Moreover, the committee should identify and investigate our vulnerabilities, collaborate with stakeholders to draft truly comprehensive legislation, and not rest until such legislation is signed.  At a time when the cyber alarm is sounding louder than ever, Congress must put an end to its own finger pointing and turf wars and fill its void of cybersecurity leadership.

    Norton is a homeland-security and public-safety policy expert. He has served as a senior defense-industry executive and as deputy assistant secretary of the U.S. Department of Homeland Security in the Office of Legislative Affairs. He is an adjunct professor at Johns Hopkins University, teaching courses on cyber, homeland security and the legislative process. Follow him on twitter @jamesnorton99

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  12. Energy and Environment News

  13. Obama Administration Clears Shell to Begin Drilling

    Jul 23, 2015 | E&E - Energywire

    By Phil Taylor and Nathanial Gronewold

    The Obama administration yesterday gave Royal Dutch Shell PLC the green light to start drilling for oil in the Arctic Ocean this summer but barred the company from penetrating oil-bearing rock until a key ice-breaking ship is repaired and arrives at the drill site.

    The Bureau of Safety and Environmental Enforcement issued two conditional drilling permits allowing the company to drill the top sections of two wells in shallow Chukchi Sea waters about 70 miles from the Alaska coast.

    The move -- which allows Shell to resume drilling in the Arctic for the first time in three years -- is a sign of the administration's continued commitment to exploring the frontier oil-rich region over the strong objections of its green allies.

    Regulators told Shell it couldn't drill into any oil-bearing layers beneath the Chukchi Sea until the company is able to position equipment at the site to respond to a blowout or loss of well control. The permits also call on Shell to have a second drilling rig nearby so it can drill a relief well if there's an oil spill. Shell has contracted with Transocean Ltd. and Noble Corp. for the offshore rigs.

    Shell's icebreaker, the Fennica, is traveling to Portland, Ore., to repair a gash in its hull that occurred July 3. The vessel is carrying Shell's capping stack, a key piece of equipment Shell is required to have on hand to stanch any unexpected oil spills.

    "Shell has received conditional approval of two Applications for Permits to Drill (APD) to conduct limited exploratory drilling activities in the Chukchi Sea offshore Alaska," BSEE said in a statement. "Specifically, the APDs limit Shell to drilling only the top sections of wells and prohibit Shell from drilling into oil-bearing zones."

    The decision to allow drilling in Alaska's Arctic waters puts the Obama administration squarely at odds with environmental groups. It also shows Shell's determination to see an expensive Alaska offshore drilling program succeed, even as international oil prices have collapsed by 50 percent since the summer of 2014. The number of offshore rigs active in the Gulf of Mexico has fallen by about 45 percent in a year, according to a recent count by oil field services provider Baker Hughes Inc.

    Several groups issued press releases condemning BSEE's decision.

    Franz Matzner of the Natural Resources Defense Council said the conditional permit is "misguided" and goes against U.S. government efforts to combat climate change. "Shell shouldn't be drilling in the Arctic, and neither should anybody else," said Matzner, who heads NRDC's Beyond Oil Initiative.

    The Wilderness Society's Arctic Program Director Lois Epstein called it "a tremendously disappointing decision that poses a serious, long-term threat to the fragile environment of the Arctic Ocean." Oceana's CEO Andrew Sharpless said the government's approvals "fly in the face of common sense," pointing to the damaged Fennica and mishaps that occurred in 2010 and 2012.

    In an earlier interview, BSEE spokesman Gregory Julian said the agency will have safety inspectors on site to monitor Shell's offshore drilling.

    The activity is slated to occur in a region 70 miles from the coastline close to the town of Wainwright. In its announcement yesterday, BSEE said its team has carefully reviewed Shell's Arctic Alaska drilling plan, "including well casing design, equipment design, testing procedures, safety protocol, third party certifications of key equipment and rig information."

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  14. Pipelines to Carry Cheap Gas from Northeast to Down South

    Jul 23, 2015 | E&E - Energywire

    New pipelines designed to carry Marcellus Shale gas from the glut of cheap gas in the Northeast to the Southeast will slowly close the price and supply divide between the Northeast and Southeast.

    Transporting the cheap gas sequestered in the Northeast to the South could whittle down the price gap to as little as a 30-cent difference compared with its previous $1 difference.

    "These projects will definitely reduce the spread between the Northeast and other regions," said Tony Franjie, senior natural gas analyst for Genscape in Sugar Land, Texas. "Everyone but those near the shale plays has kind of missed out on the boom. It's just crazy what's happened in the Northeast" (Buurma/Gilblom, Bloomberg, July 21).

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  15. Pennsylvania Task Force Tackles Plan for 30,000-Plus Miles of Pipelines

    Jul 23, 2015 | E&E - Energywire

    By Mike Lee

    Pennsylvania's top environmental regulator is pushing for a centralized, data-driven approach to planning the tens of thousands of miles of pipeline that will be needed to serve the Marcellus Shale gas field.

    Pennsylvania is the second-biggest gas producing state after Texas, but prices for Marcellus gas are lower than other parts of the country because there aren't enough pipelines to reach key markets. It will take 4,600 miles of high-pressure interstate pipelines and as many as 27,000 miles of smaller, in-state gathering lines to move all its production to markets, according to figures presented yesterday to a statewide task force on gas pipelines and infrastructure.

    That much construction could lead to widespread conflicts among the industry and landowners, along with pollution, landscape fragmentation and other downsides, Department of Environmental Protection Secretary John Quigley said. The solution is for pipeline companies, local communities and other interest groups to work out routes in advance, he said.

    "We do have here an opportunity to assert national leadership," Quigley said during a webcast of the pipeline task force's inaugural meeting. Good planning "is also essential in helping to insure this industry's social license to operate."

    Gov. Tom Wolf (D) convened the task force in July. Its 48 members include oil and gas producers, national pipeline companies, environmental groups and legislators. An additional 110 volunteers will participate in 12 work groups that will focus on topics including safety, environment protection and emergency preparedness. The group is scheduled to present its recommendations to Wolf by Feb. 1 (EnergyWire, July 9).

    Quigley suggested a planning system that the state Department of Conservation and Natural Resources uses to site windmills on public land. The process, developed during Quigley's stint as secretary of the DCNR, uses overlapping computerized maps to find locations that have good wind potential but don't threaten water quality, recreation or wildlife habitat.

    Pipelines may be a bigger challenge, both because of the number of miles and the tangle of sometimes-conflicting regulations. Interstate pipelines, for instance, are overseen by the Federal Energy Regulatory Commission with the ability to condemn private property for right of way.

    The bulk of the pipelines, though, will be gathering pipelines that serve an individual well or pad site. Pennsylvania doesn't allow condemnation for those types of pipelines.

    Depending on a line's location, it can require other permits from the DEP, the DCNR and local counties and townships, Quigley said in an interview before the meeting.

    It wasn't immediately clear how the 48-member task force reacted to Quigley's ideas. There was little debate and a handful of public comments.

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  16. Bush Endorses Rollback of Fossil-Fuel Subsidies

    Jul 23, 2015 | PoliticoPro Whiteboard

    By Elana Schor

    Environmental activists today released video of Jeb Bush endorsing an end to all energy “subsidies,” including fossil-fuel tax benefits as well as incentives for renewables.

    The video circulated by 350 Action shows Bush telling an activist after a New Hampshire event that energy subsidies — “all of them,” including for wind and solar energy as well as oil and gas — should be eliminated as part of comprehensive tax reform. Bush did not specify what subsidies he was referring to, and the campaign did not immediately respond to a request for additional details.

    Bush’s call to “let markets decide” on the performance of competing energy sources signals a fresh debate during the presidential primaries over the future of government support for various energy industries. Bush previously endorsed a phase-out of the production tax credit and end to the renewable fuel standard, both of which are popular in Iowa, which hosts the first caucus of the primary season.

    Republican proposals to phase out all energy subsidies have typically left intact benefits such as the Section 199 tax credit for oil and gas — which is widely claimed by other U.S. manufacturers — and the percentage depletion allowance that the oil and gas industry describes as its version of the general depreciation credit for manufacturers. Democrats say those benefits should be eliminated and generally support continuing renewable energy incentives such as the production tax credit.

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  17. Bush Calls for Ending Subsidies for Oil, Gas

    Jul 23, 2015 | The Hill - E2 Wire

    By Devin Henry

    Republican presidential candidate Jeb Bush says he would look to end all energy subsides, including for fossil fuel, if he’s elected president. 

    Bush told an environmental activist at an Americans for Prosperity event in Manchester, N.H., on Wednesday that he would look to “phase out, through tax reform, the tax credits for wind, for solar, for the oil and gas sector, for all that stuff” if he wins the presidency. 

    “The best way to get to the next form of — the next economy, fuel system — is to let markets decide this,” he said, according to a video from the environmental group 350 Action.

    Ending subsidies for large oil and gas companies is a recurring proposal from environmentalists and liberals, but it’s a step the industry and many Republicans oppose. The activist told Bush that he was “really excited” to hear the former Florida governor calling for ending those subsidies. 

    But Bush’s proposal to cut off subsidies for renewable energy is likely to turn off environmentalists, who consider them key to greening the American energy sector. On Capitol Hill, lawmakers continue to grapple over the fate of tax credits for wind and solar energy production. 

    In the video, Bush equated the subsidies to picking winners and losers by giving preferential treatment to certain sources of energy over others. He said he would look to do away with all the subsidies through an overhaul of the tax code.

    “I don’t think we should pick winners and losers,” he said. 

    “I think tax reform ought to be to lower the rate as far as you can and eliminate as many of these subsidies, all of the things that impede the ability, in a more dynamic way, to get to where we need to get, which is low-cost energy that is respectful of the environment.”

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  18. Climate Rule to Bring Lower Energy Bills, Report Says

    Jul 23, 2015 | The Hill - E2 Wire

    By Timothy Cama

    States can significantly lower electricity bills for consumers and businesses if they take the right steps in complying with the Obama administration’s climate rule for power plants, a new report concludes.

    Specifically, Synapse Energy Economics analyzed what would happen if states focused their efforts on expanding carbon-free energy production and energy efficiency programs, and found big savings.

    “For the two-thirds of residential consumers who participate in ratepayer-funded energy efficiency programs under this scenario, 2030 bills are expected to be $35 per month lower than in a business-as-usual ... scenario and, on average, $14 per month cheaper than residential bills were in 2012,” Synapse concluded.

    Synapse’s findings go farther than predictions from the Environmental Protection Agency (EPA), which also forecasts lower energy bills, but only by about $8 per month compared with what would have happened without the climate rule.

    And it contrasts with the conclusions of many opponents of the regulation, who predict higher energy bills resulting from it. The Chamber of Commerce forecasts that the direct and indirect effects of the rule would cost individual families an average of $200 per year.

    Synapse’s report, funded by a foundation that advocates for renewable energy, also concluded that the United States’ electricity sector will cut its carbon emissions 58 percent by 2030, almost double what the climate rule actually calls for.

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  19. N.Y., N.J. Port Operators Agree to Reduce Emissions

    Jul 23, 2015 | E&E - Greenwire

    By Amanda Peterka

    Port operators in New York and New Jersey have voluntarily agreed to take steps to reduce air pollution from diesel engine exhaust.

    In a memorandum of agreement with U.S. EPA, the Port Authority of New York & New Jersey and terminal operators will reduce truck idling at Port Newark, as well as help area ports replace older trucks with ones containing newer engines.

    The Port Authority will also spend up to $1.5 million to power cranes and cargo equipment by electricity instead of diesel and create a better system of managing truck traffic.

    Terminal operators APM Terminals North America, Maher Terminals LLC and Port Newark Container Terminal LLC will provide $600,000 to Newark for green infrastructure projects such as plant barriers between ports and residential areas.

    "Diesel pollution from idling trucks can make people sick and damage the environment. It is imperative that trucks, especially in heavily congested port areas, reduce idling," EPA Region 2 Administrator Judith Enck said in a statement today. "The children of Newark suffer from asthma at a rate three times higher than the state average. These agreements should help relieve that burden."

    The Port Authority and EPA signed the memorandum July 16. EPA credited the U.S. Attorney's Office for the District of New Jersey and the Environment and Natural Resources Division of the Justice Department for helping with the deal.

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  20. U.S. Politicians Push for Climate Action at Vatican as Pope's Poll Numbers Plunge

    Jul 23, 2015 | E&E - Climatewire

    By Scott Detrow

    Dozens of mayors from around the world signed on to a joint declaration at the Vatican this week declaring climate change a "scientific reality" and calling for a "rapid transformation to a world powered by renewable and other low-carbon energy."

    The declaration, also signed by Pope Francis, focused on a key point of the pontiff's recent environmental encyclical: that climate change disproportionally affects the world's poor. "In spite of having a minimal role in the disruption of the climate," it reads, "the poor and excluded face dire threats from human-induced climate change, including the increased frequency of droughts, extreme storms, heat waves, and rising sea levels."

    Yesterday's conference sessions at the Vatican were dominated by discussions of best practices for lowering cities' carbon footprints and combating poverty. Mayors from cities like Vancouver, British Columbia; San Francisco; New Orleans; Johannesburg; and Boston discussed the benefits of comprehensive zoning, long-term planning, transportation master plans and public-private partnerships.

    New York City Mayor Bill de Blasio (D) explained the carrot-and-stick approach his administration took in selling an 80 percent carbon reduction goal to New York's business and real estate leaders. "We would love to do that voluntarily," he said, "and we think there's a lot of enlightened people in the business community who would embrace that notion, understand it's good for their bottom lines as well -- but we were going to do that on a very tight leash. And if over a year or so, we did not find sufficient progress with a voluntary model, we would go to a mandate model."

    De Blasio hopes to cut New York City's carbon footprint 80 percent by 2050. On the first day of the Vatican conference, he unveiled an updated proposal to achieve half of those reductions by 2030 (ClimateWire, July 22).Brown, Landrieu warn of political minefields.

    Amid the wonkery, two high-profile American politicians cautioned their colleagues about the political pitfalls that stand in the way of aggressive climate action. "There are many challenges," said California Gov. Jerry Brown (D). "But a fundamental challenge is our inability to imagine where we could end up if we don't take the measure we have to."

    "It's hard to imagine, catastrophe," Brown said. "It's hard to imagine extinction. Even to talk about it makes you sound like a crank or a nut."

    New Orleans Mayor Mitch Landrieu (D) agreed with the sentiment. "Does it take a catastrophic event for transformational change? The answer to that may be yes," he said. "It should be no. But it requires people to look honestly at themselves and determine what they did incorrectly the problems that they have, because they don't happen by accident."

    Many environmentalists have hoped that Francis' aggressive engagement on climate change could help convince skeptics of the need for new policies. But a new poll released by Gallup yesterday showed that Francis' popularity has sharply dropped in the United States since the release of his encyclical.

    While most politicians would covet Francis' 59 percent favorability marks, those numbers have dropped 17 points since Gallup last polled the issue in early 2014. Among American conservatives, the pope's favorability dropped to 45 percent, from 71.

    The poll, which has a 4-point margin of error, was conducted earlier this month.

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  21. Poll: Swing-State Voters Back Climate Change Action, Gay Marriage

    Jul 23, 2015 | The Hill - Briefing Room

    By Ben Kamisar

    Swing-state voters in Colorado, Iowa and Virginia are embracing Pope Francis’s push for action on climate change and the recent Supreme Court decision on gay marriage, according to a Quinnipiac University poll released Thursday.

    More than 60 percent of voters in each state agree with the pope that the world should increase efforts to combat climate change. Behind those poll numbers is a strong partisan split, where the vast majority of Democrats back those calls while Republicans disagree by slight margins. 

    On Wednesday, Francis met with a group of mayors from around the world to echo that call, which has been controversial for some conservatives politicians. 

    A similar majority in the survey believes that climate change is caused by human activity.

    The poll also shows that most Coloradans and Iowans back the recent Supreme Court decision that legalized same-sex marriage, and a plurality of Virginians agreed with the ruling.

    But the voters are mixed on whether business-owners can refuse gay people service because of religious beliefs. Between 45 and 46 percent of voters in each state think businesses should be allowed to refuse service, while between 46 and 48 percent do not.

    Quinnipiac polled about 1,200 voters in each state, with an error margin of about 3 percent.

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  22. Swing States Back Pope on Warming, Dislike Morality Message

    Jul 23, 2015 | E&E - Greenwire

    By Jean Chemnick

    Swing-state voters agree with Pope Francis by healthy margins that climate change is caused by humans and that action to address it is needed, but they balk at his message that doing so is a moral issue, according to a new poll.

    The Quinnipiac University survey conducted earlier this month showed that voters in Colorado, Iowa and Virginia support Francis' call to action by more than 2-1, and agree by a similar margin that warming is driven by human emissions.

    The survey of 1,231 voters in each of the three states was conducted from July 9 to Monday and carried a 2.8-point margin of error.

    More than 60 percent of voters in each of the three battleground states responded yes to two questions about whether climate change is human-caused and whether they agreed with the pope that action is needed.

    Thirty-one percent of Colorado voters said they disagreed with Francis on action, compared with 25 percent in Iowa and 27 percent in Virginia. Thirty-two percent of Coloradans rejected man-made warming compared with 27 percent of Iowans and Virginians.

    But voters parted ways with the pope on his morality messaging, which has been hailed by Democrats and environmentalists as the pontiff's unique contribution to the climate change debate.

    Fifty-four percent of Coloradans said combating warming is not a moral obligation, compared with 41 percent who said it was. The same result played out by 44 to 50 percent margins in both Iowa and Virginia.

    The poll came after Francis released his long-awaited encyclical "Laudato Si'" last month, with his authoritative moral argument for why the world must shift away from fossil fuels use to stem catastrophic climate change. He is expected to drive home the same points during a visit to Washington, D.C., in September.

    It also comes ahead of the expected release very early in August of U.S. EPA's Clean Power Plan to curb carbon emissions from existing power plants, together with rules for new and modified generation.

    The same Quinnipiac poll showed that more than half of voters disapprove of both President Obama and 2016 Democratic presidential hopeful Hillary Clinton. Coloradans and Iowans disapproved most at 56 percent for both Democrats, while 50 percent of Virginians had an unfavorable view of Clinton and disapproved of Obama by 51 percent.

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  23. C2ES' Diringer Discusses Negotiator Dialogues Ahead of Paris Meeting

    Jul 23, 2015 | E&E TV

    Last year, the Center for Climate and Energy Solutions (C2ES) organized the "Toward 2015" dialogue, drawing together climate negotiators from more than 20 countries for in-depth discussions on a Paris climate treaty. During today's OnPoint, Elliot Diringer, executive vice president at C2ES, discusses the outcome of the nearly 100 hours of discussions. He also previews the outlook and expectations for December's U.N. meeting in Paris.Transcript

    Monica Trauzzi: Hello and welcome to OnPoint. I'm Monica Trauzzi. With me today is Elliot Diringer, executive vice president of the Center for Climate and Energy Solutions. Elliot, great to have you back on the show.

    Elliot Diringer: Great to be here.

    Monica Trauzzi: Elliot, C2ES organized the "Toward 2015" dialogue last year, drawing together negotiators from more than 20 countries for in-depth discussions on the Paris climate treaty. A report that highlights the outcome of these more than 100 hours of discussions has just been released. Why was a dialogue that is separate from the U.N. discussions necessary?

    Elliot Diringer: Well, the formal negotiations really are not always conducive to making progress, as we've seen over time. The 192 countries, they all have their formal positions, and there really isn't a lot of opportunity for negotiators to sit down and actually engage in some honest give-and-take. And that's what the dialogue provided, an opportunity for them to meet over a period of time. We met eight times over about 15 months off the record, a small group, and it really gave them a chance to sit at a table with one another, get a better understanding of the issues they're all facing together, some of the options available to them, where they stand on those issues and why those are their positions and really start to sketch out some common ground.

    There're a lot of forums like this at different levels. For instance, the French as the host of the Paris conference are convening in formal discussions among negotiators and among ministers. We have the Major Economies Forum, which met just this past weekend, again, a ministerial-level discussion. It's really important to provide those informal opportunities to hopefully create some better alignment both at the political and the negotiator level, which then can be carried back into the formal negotiating process to make some progress.

    Monica Trauzzi: So you think by having all these different discussions, including the Toward 2015, that come December when everyone's in Paris that it'll help facilitate the dialogue in Paris?

    Elliot Diringer: Absolutely. I think these informal conversations are vital, but I'm also encouraged because of what we saw in our dialogue, and some of the political signals that we're seeing more publicly. So, I think there're a lot of encouraging signs.

    Monica Trauzzi: So talk about this idea of a hybrid agreement and why that would be a successful approach top-down, bottom-up.

    Elliot Diringer: Right, and this is the emerging paradigm that we've seen for some time now, in which the report coming out of our dialogue really puts front and center. And the idea here is that you want to balance on the one hand some flexibility for countries to design their own contributions. That's really key to getting broad participation, bringing countries into the agreement, but you want to balance that on the other hand with some rigor at the international level to ensure the countries are held accountable for their promises and to ensure that we build ambition over time.

    Monica Trauzzi: And that is the sort of key sticking point. How do you keep everyone accountable? I mean, you can make pledges forever, but if you're not sticking to them, they're meaningless. So, is there some kind of path forward to that accountability element?

    Elliot Diringer: Well, the point of convergence we're seeing around accountability is really strong transparency, countries being really clear up front about what they're intending to do, and then reporting regularly and thoroughly on their implementation efforts so everyone can see what kind of progress they're making and whether they're really sticking to their promises. Now, transparency has been a feature of the international regime for some time, but we've had a very bifurcated process with different standards for developed and developing countries, and I think one of the key points that comes across in the dialogue report was that the Paris agreement needs to work toward a common transparency framework for all countries, needs to allow some flexibility, because different countries have different capacities, but the idea is that over time everyone's aiming for the same standards of transparency and accountability.

    Monica Trauzzi: China, they've recently made their pledges. How did they play into the Toward 2015 discussions, and would you say that they are on board?

    Elliot Diringer: Well, first I just have to note that the discussions were held under the Chatham House Rule, meaning that while we can describe the issues discussed and the insights and points of convergence that emerge, I can't really attribute any of the statements made by any of the one participants, but China participated from beginning to end. We had a senior official from the foreign ministry, somebody we've known for probably a dozen years or so. He participated in a dialogue we convened about 10 years ago, and they were there. They were engaged, and I think judging both from what we heard within the dialogue but, again, what we're seeing publicly, the joint announcement with the United States, the contribution they've formally submitted now, all the signs, I think, indicate that China is committed to getting to a deal in Paris.

    Monica Trauzzi: Should stakeholders be concerned about the U.S. and D.C., considering the level of pushback that the Clean Power Plan is already getting and the level of litigation that we're expecting come fall and winter?

    Elliot Diringer: Well, I think over time representatives of other countries have developed a very sophisticated understanding of our political process, the kinds of challenges we face in advancing stronger climate efforts, so they understand that there aren't uncertainties in the U.S.'s ability to follow through, but the U.S. isn't alone in that regard. All countries face political obstacles and political uncertainties, but that's part of the reason that transparency is so important, so that other countries can see how well each country is doing in holding to its promises.

    Monica Trauzzi: So, among the negotiators at these discussions, where were the biggest points of contention, the biggest disagreements?

    Elliot Diringer: Well, we spent a lot of time discussing the legal nature, the legal character, of the agreement, which parts of it would be binding at the international level, and one point of disagreement is whether the targets themselves should be considered internationally or legally binding. And we heard very strong arguments in both directions. On the one hand, some participants felt strongly that making the targets legally binding provides greater certainty that they will be met. Others argued just as forcefully that if you insist on them being binding, that may keep some countries away, so it will weaken participation, and some countries might come in with weaker targets if they think they're going to be held legally accountable for those targets. So how do you strike the right balance there? The report expresses both views, but it notes that in the end, ultimately the strength of the agreement really rests on the transparency and accountability it provides and on the political will of countries to implement it. So we need to create a set of conditions that helps to enhance that political will.

    Monica Trauzzi: This report has been getting a lot of traction. You actually just returned from Luxembourg, where you presented the report to the Major Economies Foreign Meeting. What're the biggest questions that you've been receiving from stakeholders about what's in the report?

    Elliot Diringer: The biggest question I've received is, OK, how do we now turn that into an agreement that people can sign on to in Paris? We got a lot of positive feedback on the report, both in Luxembourg and elsewhere. I think a lot of people feel that it does a really good job of capturing the points of convergence, telegraphing where the landing zones are in Paris. It's not a complete blueprint. There're still some areas that need to be further fleshed out, finance, for instance, but I think on the whole people are pretty comfortable with the direction that it lays out.

    Monica Trauzzi: New York City Mayor Bill de Blasio was recently speaking in Vatican City, and he said that Paris is the last best hope. Do you agree with that?

    Elliot Diringer: Well, I think we've seen in the past how setting expectations too high isn't necessarily helpful. This is a challenge that has accumulated over decades, and frankly we're going to be working on it for decades. I don't think you could point to any one moment or any one process as delivering the grand solution. I think Paris presents a real opportunity. I think things are aligning to actually make some real progress there and move us to the next level, creating a durable, more balanced international framework that can give countries confidence that everyone's contributing their fair share and that we have a way of holding countries accountable. I think that will move us in the right direction.

    Monica Trauzzi: All right, Elliot. Thank you for your time.

    Elliot Diringer: Always a pleasure.

    Monica Trauzzi: And thanks for watching. We'll see you back here tomorrow.

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  24. Pollution isn't Colorblind: Environmental Hazards Kill More Black Americans

    Jul 23, 2015 | The Guardian

    By Keith Ellison and Van Jones

    Thanks to people’s movements like Black Lives Matter and the Fight For 15, the call for racial and economic justice is getting louder and stronger. But while we are out on the streets fighting for equality, our kids are being poisoned by the air they breathe. Environmental injustices are taking black lives – that’s why our fight for equality has to include climate and environmental justice too.

    African-Americans are more likely to live near environmental hazards like power plants and be exposed to hazardous air pollution, including higher levels of nitrogen oxides, ozone, particulate matter and carbon dioxide than their white counterparts. The presence of these pollutants increases rates of asthma, respiratory illness and cardiovascular disease. It puts newborn babies at risk. It causes missed days of work and school. We can’t afford this. Black kids already have the highest rate of asthma in the nation, and our infant mortality rate is nearly double the national rate.

    Increased health problems hit people financially. African-Americans typically spend a higher share of their income on health care than their white counterparts (16.5% v 12.2%), and roughly one in five African-Americans don’t have health insurance.

    President Obama’s Clean Power Plan is a desperately needed response to this problem. The Clean Power Plan would cut carbon pollution from power plants and put our country on a path towards cleaner energy solutions. It could stop up to 6,600 premature deaths and prevent up to 150,000 asthma attacks in children over the next 15 years – especially in African-American communities.

    The total climate and health benefits from the Clean Power Plan could add up to as much as $93bn. According to the National Resources Defense Council (NRDC), every dollar we spend on the Clean Power Plan will translate into $7 in health benefits for American families. That’s a good return on investment.

    But some utility and fossil fuel companies are spending a lot of money to scare black people into believing this plan will hurt them. They’re afraid that tackling climate change and cleaning up pollution will cut into their enormous profits – and they want us to think it will hurt us, too. Nothing could be further from the truth.

    Pollution from power plants is America’s single largest contributor to climate change. But you won’t hear these industry executives talk about the toxic air their companies spew into communities of color or the disproportionate health costs we shoulder. They won’t spend time explaining that carbon emissions from power plants amplify the devastating effects of ozone and other pollutants, or that their pollution leads to a direct worsening of asthma symptoms. Nor will they admit that economic projections show that the Clean Power Plan will reduce utility costs for American families. The EPA estimates that electricity bills will go down by roughly 8%, saving customers almost $100 dollars annually – and that’s on top of the savings in health costs.

    According to the NRDC, the Clean Power Plan would create good, well-paying jobs in green technology and renewable energy. There are already more solar industry jobs than coal jobs in the United States. This energy revolution is an opportunity to increase African-American employment in a booming sector.

    Centuries of racial discrimination as well as bad trade deals and economic policies that favor the wealthiest have led to black Americans being almost three times more likely to live in poverty than white Americans. We can’t fight this trend by believing the lies that rich fossil fuel and utility executives tell us. Black lives matter more than corporate profits –now is a chance to make sure our laws reflect that.

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  25. Coal, Oil Companies Should Make More Early Legal Deals with Indigenous Groups -- Report

    Jul 23, 2015 | E&E - Energywire

    By Benjamin Hulac

    In late November 2013, closing arguments winded down in a Manhattan courthouse over a three-decade-old legal battle over massive pits of toxic waste left for indigenous tribes to clean up in the Ecuadorian rainforest.

    The case, stemming from a controversial $19 billion ruling won against Chevron Corp. in 2011, is still going on. Chevron's legal team claimed there was tampering with witnesses, money laundering and ghostwriting of favorable verdicts from Ecuadorian judges, while the trial lawyer who won the verdict has denied wrongdoing and tried to enforce judgement.

    Yet this drawn-out legal slugfest over the Lago Agrio oil field and cleanup is the kind of case that might have been avoided if the indigenous community and Texaco, the original driller in northeastern Ecuador, agreed to what's called an "FPIC" policy, according to Emily Greenspan, senior policy adviser for Oxfam America's extractive industries program.

    FPIC, or "free, prior and informed consent," is a legal tool that local and indigenous communities can use to negotiate with oil, gas and mining firms interested in drilling into or working on their land. If finalized, FPIC is a form of approval for the firm to proceed.

    To meet FPIC requirements, as Oxfam and international bodies have defined the term, "indigenous peoples and local communities must be adequately informed in a timely manner about projects that affect their lands." This process must happen "free of coercion and manipulation," and those signing off on projects "should be given the opportunities to approve or reject a project before any activity starts," according to Oxfam's definition.

    As the lead author of a report Oxfam released today called the "Community Consent Index," Greenspan said FPIC policies are becoming more common among oil, gas and mining companies.

    "As demand for resources increase, the potential for negative impacts on communities and social conflicts also rises," Raymond Offenheiser, president of Oxfam America, said in a statement. "Companies need to strengthen their policies on engaging with communities in order to protect their human rights."

    The report, which reviewed 38 large extraction companies, found 14 of the firms surveyed have public commitments to FPIC practices, up from five in 2012, when Oxfam published a previous version of the report.

    "There's been a lot of change just in the last three years," said Greenspan, referring to the uptick.

    Corporations with FPIC commitments are only coal and mining companies, such as BHP Billiton, Newmont Mining Corp. and Teck Resources. No oil and gas companies have backed the FPIC standard.

    AngloGold Ashanti Ltd., the South African gold miner, has said their FPIC pledge is due out soon, Greenspan said.The 'business case' for early cooperation

    Energy companies might have something to gain from sitting down with and getting approval from tribes and local citizens, according to prior research.

    A 2014 study by researchers at the University of Queensland and Harvard University examined 50 "cases of prolonged or escalated company-community conflict around extractive operations."

    A "major, world-class mining project" that has cost $3 billion to $5 billion to construct will lose about $20 million weekly, "largest due to lost sales," the study found. And as tension grows around a project, costs due to lost productivity, shutdowns, delays and time diverted from top executives and managers are also financially concerning.

    In May, for example, the indigenous Jagalingou and Wangan people in Queensland sued to block Indian coal firm Adani Group from proceeding with its Carmichael mine. The project has developed for five years and coal-mining operations have yet to begin.

    Almost half of the 50 cases studied resulted in a blockade of the company facility and one-third involved a death, injuries, property damage "or the suspension or abandonment of a project," the study reads.

    "There's definitely a strong business case for companies to get FPIC right," Greenspan said. "FPIC should happen really early in the process," she said. "Really even before the bidding process."

    FPIC measures are only legal frameworks for indigenous people, and national governments often supersede indigenous and local leaders when giving the go-ahead on extraction projects.

    FPIC agreements could work smoothly in U.S. states where shale drilling spots overlap with indigenous communities, Greenspan said.

    The International Council on Mining and Metals unveiled a statement in May 2013 in support of FPIC processes. The position requires the council's member firms to follow FPIC protocol.

    "A good chunk of the companies here are part of the International Council of Mining and Metals," Greenspan said.

    The United Nations' Declaration on the Rights of Indigenous Peoples, ratified in 2007, formed FPIC as a right for native groups to "ensure protection of their other self-determination-based rights" and the International Finance Corporation amended its official policies in 2012 to require companies that receive loans "whose operations affect indigenous peoples" to practice FPIC methods.

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  26. California's Powerful and Influential Air Pollution Watchdog

    Jul 23, 2015 | Los Angeles Times

    By KATE GALBRAITH

    On the outskirts of Los Angeles, in a nondescript laboratory, a man in a yellow T-shirt and helmet sits on a stationary motorcycle, looking intently ahead. The bike's back wheel is spinning and a long orange tube connects to its exhaust pipe. A fan roars, mimicking wind.

    Nearby, on a computer screen, colorful lines show the concentration of pollutants emitted from the motorcycle, such as nitrogen oxides and carbon dioxide. This is an emissions test, and the rider must calibrate his acceleration and deceleration precisely, even as he goes nowhere.

    "It's like 55 things you've got to do to get this test right," said Tom Valencia, a branch chief for the California Air Resources Board, the state agency that runs the lab, as the next test, on a Chevy Impala, got underway.

    The Air Resources Board, one of the most influential — and controversial — pollution regulatory agencies in the nation, conducts more than 1,500 tests each year at the lab.

    To environmentalists, the board offers a bulwark against pollution, setting an example for the nation and the world on how to clean the air and fight climate change. To detractors, it is an out-of-control agency run by unelected bureaucrats who are throttling the state economy.

    "It's come to the point that they tell you what to do, and you salute. And you hope that your members don't fire you," said Jay McKeeman, a vice president at the California Independent Oil Marketers Assn.

    Besides its long-standing mission to scrub California's air of damaging pollutants, the board in recent years has taken charge of the state's efforts to combat climate change, including the controversial cap-and-trade system that limits greenhouse gas emissions across most of the economy.

    "It's not hyperbole when I say there is probably not a more important agency, not just in this country but around the world, than CARB and what they're doing on pollution control and climate change," said William Becker, executive director of the National Assn. of Clean Air Agencies in Washington.

    The air board's roots go back nearly half a century to a time when thick smog smothered Southern California. Air pollution was a menace, in the words of Gov. Pat Brown, the current governor's father. A Dutch-born biochemist at Caltech, Arie Jan Haagen-Smit, took up the challenge.

    After studying plants' reactions to different compounds and collecting flasks of dirty air, he ultimately traced the smog to a reaction involving vehicle exhaust and sunlight, as well as emissions from industrial plants. Oil companies and automakers fought his conclusions, but in 1968, Gov. Ronald Reagan appointed the "stubborn Dutchman" chair of the brand-new Air Resources Board. Haagen-Smit, a lifelong smoker, died of lung cancer in 1977.

    His name is on the Los Angeles-area lab, which plans to test so many vehicles, including heavy-duty trucks and cars using new technologies, officials want to move it to a bigger space. The tests cover everything from tailpipe emissions to vapors given off during refueling. The air board certifies new vehicles sold in California, an unusual role for a state-level agency.

    Adrienne Alvord, the California and Western states director for the Union of Concerned Scientists, said the air board's policies were paying off.

    "They have not been afraid to stand up to oil companies and auto companies, which are obviously very well-heeled interests, in the interest of achieving clean air for the public good," she said.

    Air quality has greatly improved since the board began its work, though ozone and fine-particle pollution still plague parts of the state. But the war on smog helps explain why the agency became so powerful. When Congress passed the Clean Air Act decades ago, it allowed California to set its own standards, more stringent than the federal government's, for pollution from cars.

    Mary Nichols, 70, is at the helm of the air board. She is a veteran regulator and environmentalist and served as the board's chairwoman more than three decades ago, when Jerry Brown was governor the first time. In 2007, Gov. Arnold Schwarzenegger appointed her chair again.

    The agency, which is part of the California Environmental Protection Agency, is approaching 1,400 employees and has a budget of more than $730 million, larger than most states' environmental agencies.

    "Certainly when I first started at the Air Resources Board in 1975, we didn't see energy efficiency or fuel use as being part of our mandate," Nichols said in a recent interview. "It simply wasn't something we paid a lot of attention to."

    But since Assembly Bill 32, California's landmark climate change law, passed in 2006, "thinking about climate change has become a part of everything we do," she said. For Nichols, that has meant a steady stream of international visitors and trips. She spoke at an international climate change summit in Peru in December and visited China for the launch of an emissions trading system there.

    "I think the thing that's probably surprised me the most is the international role that we play today," she said.

    As Brown and lawmakers strengthen their climate goals, the air board remains a lightning rod. About a decade ago, the Legislature debated whether the board or an interagency group should take charge of climate programs, such as cap-and-trade. The air board won, and now industry groups shudder at the idea of the agency expanding its role and crafting new programs.

    "The level of authority granted to ARB … is quite dramatic," said Michael Shaw, a vice president with the California Manufacturers and Technology Assn., in testimony in July over a bill that would require the air board to carry out a plan for cutting petroleum use in half by 2030. "Taking it further, we think, is a tremendous error."

    That's not how Nichols sees it.

    If lawmakers craft new climate and pollution goals, she said, the air board will engage in a long process of consultation on how to achieve the new standards, as happened with earlier climate programs.

    "The science behind global warming requires that more stringent targets be met," she said. "And California's goal of being a leader in this field, which we believe benefits our economy overall, requires that we stay ahead of the pack."

    Kate Galbraith is a writer for CALmatters, a nonprofit journalism venture dedicated to explaining California policies and politics. 

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  27. Transportation News

  28. Feds Nudge Railroads on Bakken Oil Train Whereabouts

    Jul 23, 2015 | E&E - Energywire

    By Blake Sobczak

    The top U.S. rail regulator sent a sternly worded letter yesterday reminding railroads to stay transparent about their oil shipments.

    Sarah Feinberg, acting administrator of the Federal Railroad Administration, said the agency would "take enforcement actions as necessary" to ensure companies follow a May 2014 orderthat requires railroads to tell state officials wherever trains move with more than 1 million gallons of crude oil from North Dakota's Bakken Shale play.

    "Responsibly sharing this information is crucial for first responders to act quickly and to allow state and local officials to develop accurate, quality emergency plans," Feinberg said in the letter to all Class I railroads and the Association of American Railroads, an industry group.

    A series of derailments and fires have brought heightened scrutiny on the mile-long trains hauling crude throughout the country. Just last week, an oil train jumped the tracks near Culbertson, Mont., injuring no one but prompting evacuations (Greenwire, July 17).

    An FRA spokesman said yesterday's letter wasn't triggered by lax compliance, but was rather an attempt to clear up any confusion after sweeping Department of Transportation regulations in May appeared to override last year's emergency order. After facing pressure from transparency advocates, transportation officials later clarified the emergency order would not expire next year, as had been reported in the new oil safety regulations (EnergyWire, May 29).

    "We're reiterating and making our expectations clear for the railroads, to let everyone know these are our expectations and they're here to stay," said FRA spokesman Matt Lehner.

    Although railroads must share oil train traffic updates with state emergency response commissions, the data aren't always made public. A pair of railroads have filed suit in Maryland to prevent disclosure of the information under open records laws, and the industry writ large is skeptical of broadcasting oil train routes.

    "This is security-sensitive information that should remain with emergency first responders, and we support providing pertinent data to emergency officials," said Ed Greenberg, spokesman for the Association of American Railroads. He added that "freight railroads have and continue to comply with last May's emergency order."

    Representatives from several state Emergency Response Commissions contacted byEnergyWire, including Washington and Minnesota, said they've continued to receive on-time reports from railroads moving large volumes of crude through their states.

    DOT leaders have indicated they will make the reporting requirements permanent in a future rulemaking.

    Transportation Secretary Anthony Foxx said in a statement yesterday that his agency "is committed to making certain that states and local officials have the information they need to prepare for and respond to incidents involving hazardous materials, including crude oil."

    The 2014 emergency order applies only to Bakken crude, which has come into regulators' crosshairs due to its "light," highly flammable chemistry. Marie Therese Dominguez, whom President Obama recently tapped to lead the Pipeline and Hazardous Materials Safety Administration, told lawmakers at a nomination hearing yesterday that "there are indeed volatility issues that are of significant concern" for Bakken crude.

    "We have an ongoing study with [the Department of Energy] and Sandia Labs to examine the characteristics of the crude oil coming out of the Bakken area and really, truly understand what that volatility threshold is," she said.

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