Preview Newsletter
ACC PM 2/25/16
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(ACC Blog) Energy Outlook to 2040: Chemicals and Plastics Growth — in the U.S. and Globally
Feb 24, 2016 | American Chemistry Matters
By American Chemistry
Industrial energy usage is projected to rise by 30 percent from 2014 to 2040, with the chemical sector leading the way, according to an ExxonMobil report released last month, “The Outlook for Energy: A View to 2040.” -
(ACC Mentioned) PE, Solid PS Prices Fall 2 Cents
Feb 25, 2016 | Plastics News
By Frank Esposito
North American selling prices for polyethylene and solid polystyrene resins each have fallen an average of 2 cents per pound since Feb. 1, resulting mainly from lower feedstock costs. -
(ACC Mentioned) Nonprofits Dominate Airwaves in Senate Races, with No Donor Disclosure
Feb 25, 2016 | Open Secrets
By Robert Maguire
When Democrats consider their odds for regaining the Senate this November, one of the first states that comes to mind is Pennsylvania, where first-term Sen. Pat Toomey, a Republican, is locked in a rematch with former Democratic Sen. Joe Sestak, who lost to Toomey in 2010. But for a race with such high stakes, it seems, at first glance, to have drawn little interest from outside groups, which havereported spending only about $500,000 to sway the state’s voters so far, according to Federal Election Commission records. -
(ACC Mentioned) Real Estate Gift Will Support MSU College Of Engineering
Feb 25, 2016 | MSU Today
By Tom Oswald , Patricia Mroczek
Michigan State University’s ability to advance the fields of chemical engineering and materials science will be enhanced with a real estate gift appraised at $1.725 million which will subsequently be sold to support the College of Engineering. -
Harris Aims to be Green 'Champion' -- Just Like Boxer
Feb 25, 2016 | E&E Daily
By Jeremy P. Jacobs
In the race to succeed retiring California Sen. Barbara Boxer, Democratic front-runner Kamala Harris has ramped up efforts to position herself as the best qualified to carry on the senator's substantial environmental legacy. -
Washington Issues Enforcement Guidelines for Lead, Cadmium, Phthalates
Feb 25, 2016 | Chemical Watch
Washington’s Department of Ecology has issued a guidance document, clarifying the enforcement of lead, cadmium and phthalates limits under its Children’s Safe Products Act (CSPA). -
California Proposes Amendments to Prop 65 Litigation Reform
Feb 25, 2016 | Chemical Watch
California’s Office of Attorney General (OAG) has released additional amendments to its proposed reformof rules, governing private litigation enforcement of the state’s Proposition 65 chemical warning scheme. -
California Agency Credits Legislation for PBDE Decrease
Feb 25, 2016 | Chemical Watch
California’s Department of Toxic Substances Control (DTSC) has credited a decrease in PBDEs in women’s breast milk to legislative action against flame retardants. -
Johnson & Johnson to Pay $72m in Damages in Talc Suit
Feb 25, 2016 | Chemical Watch
By Kelly Franklin
Johnson & Johnson has been ordered to pay $72m in damages, after being found by a Missouri court to be liable for ovarian cancer linked to the use of its talc-containing products. -
Echa Finds More Non-Compliant Dossiers by Targeting 'Right’ Substances
Feb 25, 2016 | Chemical Watch
By Geraint Roberts
The proportion of compliance checks where Echa decided further information was needed to bring the REACH registration dossier into compliance rose in 2015 from 60% to 82%. -
Echa Round-Up
Feb 25, 2016 | Chemical Watch
The Netherlands plans to submit a proposal to Echa, by 8 August, that trimellitic anhydride (TMA) should be classified as an SVHC. -
States Form Group to Study Storage Issues
Feb 25, 2016 | E&E Energywire
By Mike Soraghan
State oil and gas regulators are responding to the monthslong methane leak at a natural gas storage site in California by forming a work group to examine how such storage is being regulated. -
Pipeline Regulators Pressed to Act on Gas Storage Leaks
Feb 25, 2016 | The Hill - E2 Wire
By Timothy Cama
Lawmakers repeatedly pressed the federal government’s pipeline safety agency to crack down on the potential for leaks at natural gas storage facilities. -
Leak in N.J. Park Reaches Tens of Thousands of Gallons
Feb 25, 2016 | E&E Greenwire
By Jonathan Lin
Workers in a Bayonne, N.J., park have gathered more than 40,000 gallons of oil from a broken pipeline that is still leaking and undergoing repairs, according to the state Department of Environmental Protection. -
N.Y. Coalition Urges Closer Look at Crude-by-Rail Impacts
Feb 25, 2016 | E&E Energywire
By Blake Sobczak
A coalition led by environmental group Earthjustice is calling on New York regulators to meet with locals in Albany before renewing permits for two major crude-by-rail terminals there. -
Clean Transportation Proposals Stalled Without Oil Tax
Feb 25, 2016 | E&E Climatewire
By Camille von Kaenel
President Obama's proposed clean transportation programs face major hurdles in the appropriations process because Congress is vowing to block the oil tax that's supposed to fund them. -
McCarthy Says EPA Must 'Do More' To Curb Oil & Gas Methane Emissions
Feb 25, 2016 | Inside EPA
By Lee Logan
EPA Administrator Gina McCarthy says the agency must “do more” than it is currently planning to curb emissions of methane, the potent greenhouse gas, arguing that new data it released earlier this week shows emissions from existing sources in the oil and gas sector are “substantially higher than we previously understood.” -
Sabine Pass' First LNG Cargo Setting Sail for Brazil
Feb 25, 2016 | E&E Energywire
By Jenny Mandel
The first cargo of liquefied natural gas to be produced for shipment from the Lower 48 states has been loaded onto a tanker and will depart "imminently" for delivery to Brazil, Cheniere Energy Inc. officials said yesterday. -
Senate Reaches Deal on $250M Flint Aid Package
Feb 25, 2016 | The Hill - E2 Wire
By Timothy Cama
Senate negotiators have reached a deal on an aid package for Flint, Mich. -
Sandoval is 'No Scalia'
Feb 25, 2016 | E&E Greenwire
By Robin Bravender and Phil Taylor
Nevada Gov. Brian Sandoval may be a Republican, but he's no Justice Antonin Scalia.
Industry and Association News
Chemical Management News
Chemical Security News
Transportation News
Energy and Environment News
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(ACC Blog) Energy Outlook to 2040: Chemicals and Plastics Growth — in the U.S. and Globally
Feb 24, 2016 | American Chemistry Matters
By American Chemistry
Industrial energy usage is projected to rise by 30 percent from 2014 to 2040, with the chemical sector leading the way, according to an ExxonMobil report released last month, “The Outlook for Energy: A View to 2040.”
Energy demand in the chemical sector will grow by about 50 percent over that period, driven by improving living standards in developing countries and robust shale gas supplies in the United States, the report said.
Rising prosperity is spurring demand for chemical products, including plastics, especially in China, India, Saudi Arabia and 10 “Key Growth” nations.* In the U.S., the chemical industry is expanding due to increased production of natural gas and natural gas liquids (NGLs), which are the main source of feedstock here.
Chemicals production is the fastest-growing source of industrial energy usage. Demand for plastics and other chemical products remains strong. – ExxonMobil, “The Outlook for Energy: A View to 2040”
In fact, increased natural gas supplies are shifting the global feedstock mix toward ethane and other NGLs. By 2040, NGLs and naphtha, an oil derivative that makes up 55 percent of today’s market, will be nearly equal.
ExxonMobil’s report supports the analysis of ACC economists, who are tracking announcements ofshale-related chemical industry projects in the United States. At latest count, 266 projectsrepresenting $164 billion in cumulative investment have been announced, with 40 percent completed or under construction and 55 percent in the planning phase. The new factories and capacity expansions will create hundreds of thousands of well-paying jobs, strengthen communities and promote economic growth across the nation. A separate ACC report projected that U.S. jobs related to plastics manufacturing will grow by 462,000 over the next decade—more than 20 percent—reaching more than 2.7 million.
The ExxonMobil outlook reflects the positive news presented in a Nexant report commissioned by ACC,Fueling Export Growth: U.S. Net Export Trade Forecast for Key Chemistries to 2030. It projected that gross U.S. exports of chemical products, including plastics, will double from $60 billion in 2014 to $123 billion by 2030 thanks to plentiful and affordable natural gas.
Industry continues to “make more with less,” the new report found. The “energy intensity” of industrial production—energy consumed per dollar of GDP—is projected to continue its decline over the next 25 years. Average industrial energy intensity worldwide will improve by 40 percent between 2010 and 2040.
In the U.S. chemical industry, managing energy efficiency in our companies and manufacturing facilities is a key part of our commitment to sustainability. Through Responsible Care®, ACC members report on their progress toward a number of energy-related performance measures.
Industrial energy intensity in the OECD32 improved at about 2 percent per year from 1995 to 2010, a rate that is expected to continue through 2040. – ExxonMobil, “The Outlook for Energy: A View to 2040”
*Comprised of Brazil, Mexico, South Africa, Nigeria, Egypt, Turkey, Saudi Arabia, Iran, Thailand and Indonesia.
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(ACC Mentioned) PE, Solid PS Prices Fall 2 Cents
Feb 25, 2016 | Plastics News
By Frank Esposito
North American selling prices for polyethylene and solid polystyrene resins each have fallen an average of 2 cents per pound since Feb. 1, resulting mainly from lower feedstock costs.
The PE drop affects all grades of high density, low density and linear low density resin. It’s the second consecutive monthly price drop for the material after a three-month stretch in which prices were flat. The January price drop was 3 cents.
Crude oil prices remain a global price setter for PE, even though most North American PE uses natural gas as a feedstock. West Texas Intermediate (WTI) oil prices started the year around $39 per barrel but soon declined, falling under $30 on two occasions and standing at just under $32 in early trading Feb. 25.
U.S./Canadian PE markets got off to a good start in 2016, with sales of HDPE and LLDPE each up almost 6 percent in January, according to the American Chemistry Council. HDPE export sales surged almost 40 percent for the month, overcoming a 1 percent drop in domestic sales. The story was somewhat similar in LLDPE, where a 26 percent gain in export sales boosted a 1 percent uptick in sales into the domestic market.
Regional PE makers remain focused on building the export market in order to handle large volumes of new PE capacity that are scheduled to come on line beginning this year. Increased availability of low-priced natural gas from shale formations has led to a wave of new PE capacity expansions throughout North America.
For PS, the 2-cent drop ended a streak of four consecutive months in which prices for the material had been flat. PS maker Americas Styrenics LLC had pre-announced the price decrease in early February, and the broader market held to that amount.
The PS decline was driven in part by lower selling prices for benzene feedstock, which is used to make styrene monomer. Benzene prices for February averaged $1.84 per gallon, down 13 percent from the January price. Some market watchers believe that the benzene market now has reached bottom and could begin heading up again.
North American PS sales notched a moderate sales gain of 1.2 percent in January, according to ACC. Much of that growth came from the electrical/electronic end market, where January sales surged more than 13 percent.
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(ACC Mentioned) Nonprofits Dominate Airwaves in Senate Races, with No Donor Disclosure
Feb 25, 2016 | Open Secrets
By Robert Maguire
When Democrats consider their odds for regaining the Senate this November, one of the first states that comes to mind is Pennsylvania, where first-term Sen. Pat Toomey, a Republican, is locked in a rematch with former Democratic Sen. Joe Sestak, who lost to Toomey in 2010. But for a race with such high stakes, it seems, at first glance, to have drawn little interest from outside groups, which havereported spending only about $500,000 to sway the state’s voters so far, according to Federal Election Commission records.
Nearly all of that spending has come from one source: The U.S. Chamber of Commerce, a 501(c)(6) trade association that doesn’t have to disclose its donors. Kicking its effort off in early July last year, the Chamber said it wanted to show its support for Toomey “before the presidential sweepstakes really takes off in August.”
Aside from outlays by the Chamber, the FEC’s files don’t show the presence of any big money in the race.
In reality, though, the fun was only getting started; it just wasn’t being reported to the FEC. Several more groups soon got in on the action, with ad buys that have totaled in the six and seven figures. And that isn’t unique to Pennsylvania. Similar stories are playing out in Senate races across the country. Airings of ads by politically active nonprofits like the Chamber, the League of Conservation Voters and Americans for Prosperity made up well over half of the nearly 29,000 ads run in Senate races nationwide by Feb. 14 — outpacing ads from the candidates themselves by a nearly 2-to-1 margin and beating super PAC airings by nearly 6-to-1, according to aWesleyan Media Project analysis in partnership with the Center for Responsive Politics. But by dressing up most of the spots as “issue ads,” the groups have avoided reporting the majority of their outlays to the campaign finance enforcement agency.
Well over 6,000 more TV ads have been run by politically active nonprofits in 2016 Senate races than such groups had run in all races, including the presidential contest, at about the same point four years ago. Add in 2016 presidential spots and the tally for ads by nonprofits this cycle jumps to more than twice the comparable 2012 number.
The Wesleyan Media Project report, which analyzed ad data from Kantar Media/CMAG, shows that, as of Feb. 14, more than 23,000 ads had been aired in presidential and Senate races by 501(c) organizations. Such groups — primarily 501(c)(4) social welfare organizations and 501(c)(6) trade associations that aren’t supposed to have politics as their primary purpose and can keep their donors’ identities hidden from the public — aimed nearly 17,000 of those airings at Senate races around the country. That handily surpasses the just over 10,000 ad spots aired in all races at a similar point in 2012 by organizations that don’t disclose their donors, according to Wesleyan Media Project report that year analyzed by the OpenSecrets Blog.
In Pennsylvania, shortly after the Chamber went on the air, Concerned Veterans for America — a 501(c)(4) social welfare organization that’s funded through the Koch donor network — issued a press release saying that it was going to spend $1.5 million on a “TV, digital video and direct mail campaign” thanking Toomey for his help “getting veterans the care and benefits they deserve and for fighting to hold the VA accountable.”
Then a handful of liberal nonprofits joined the fray. First, Planned Parenthood Action hit Toomey for “risking healthcare for millions of women” by voting to defund its parent group. Two environmental nonprofits, NRDC Action Fund and EDF Action, joined in, launching what they called a “seven-figure TV and digital ad campaign”urging Toomey to stop voting against the federal Clean Power Plan.”
A week later, the American Chemistry Council, a trade association like the Chamber, bucked up the bruised Toomey with a “seven-figure ad campaign” thanking him and other endangered GOP senators for “policies that will grow the economy and foster job creation.”
According to the report, these politically active nonprofits ended up running 2,674 TV spots in Pennsylvania by mid-February, all without disclosing any donors or — in all but one case — the spending itself, to the FEC.
Using Wesleyan Media Project and FEC data, as well as press releases from the groups themselves, OpenSecrets Blog estimates that spending by politically active nonprofits in Pennsylvania alone has come to more than $7.5 million, well beyond the $500,000 they’ve reported to the FEC. Toomey’s own campaign has only run 373 ads at a cost of less than $1 million, and his opponent Sestak hasn’t run any.
An analysis by OpenSecrets Blog of FEC data as well as press releases and WMP ad buy data shows that politically active nonprofits had spent more than $30 million as of Feb. 14, though less than $9 million of that had been reported to the FEC. At a similar point in 2012, such groups had spent only about $10 million, OpenSecrets Blogestimates, about $1.2 million of which had been reported to the FEC.
Praise for Candidate and [Insert Bill Here]
In several Senate races around the country, none of the candidates or their respective parties have even begun running their own ads, leaving politically active nonprofits to fill the airwaves. In Nevada, for example, every ad run so far has came from either One Nation — an old 501(c)(4) that was repurposed by operatives at Crossroads GPS last summer — or the Chamber. The two groups have sponsored a total of nearly 1,200 spots supporting GOP Rep. Joe Heck’s bid to replace Senate Minority Leader Harry Reid (D). Only one of those groups, once again the Chamber,reported its spending to the FEC.
Like Concerned Veterans for America and other nonprofits active in the Pennsylvania race, One Nation has avoided reporting its ad buys by casting them as issue advocacy. Legally, ads that don’t directly ask viewers to vote for or against a candidate needn’t be disclosed at the FEC if they run more than 30 days before a primary or 60 days before a general election. One Nation’s press release announcing the Heck ad, which included TV, radio and online versions, said the group was spending $792,000 in the hopes that viewers would “support Congressman Heck’s important legislation.”
But the One Nation release never mentions what legislation it wants viewers to support, nor does the audio of the TV ad itself. Most of it focuses on Heck, lauding his “bipartisan solutions to create job opportunities” and showing a clip of him saying that “there’s no doubt that the most important issue I’m working on is job creation.” In a quick flash of text at the end of the ad viewers see this: “Keep fighting to pass HR 1401” — a reference to a bill sponsored by Heck in the House that had been referred to committee six months before the ad was cut, with no action since.
One Nation’s other ads follow this general mold. According to the group’s own press releases announcing each buy, it has spent about $6 million airing them in seven states. None have been reported to the FEC.
The candidates mentioned in the ads are all running in states that pollsters suggest will be challenging for Republicans to keep or win in 2016. The fact that all of the candidates are sitting senators and House members allows One Nation to mention almost any bill in the ad and claim that the purpose of the communication was to build support for legislation — the essence of an issue ad — rather than to support anyone’s candidacy.
Bipartisan Nondisclosure
One Nation’s most sizable outlays thus far have been in Ohio, where other 501(c) groups from across the political spectrum have also been busy. One Nation and other conservative nonprofits — like the Chamber and the Koch flagship, Americans for Prosperity — have run more than 3,800 spots in the state already, while the Senate candidates have yet to air a single one. Liberal nonprofits like the Sierra Club and Planned Parenthood Action Fund have aired 856 spots so far in the state, less than 25 percent as many as right-leaning groups.
Only 65 of the 4,778 ads that had run in Ohio’s Senate contest as of mid-February were paid for by an organization that discloses its donors.
Nationally, liberal nonprofits are responsible for 5,583 ads in Senate races so far, or about one-third of all 501(c) ads that have focused on Senate campaigns. No left-leaning nonprofits had run ads at this point in 2012.
But in one matchup — the Wisconsin battle between incumbent Sen. Ron Johnson, the Republican, and former Democratic Sen. Russ Feingold — liberal groups have dominated the air wars. Of the 4,846 spots run so far in the race, nearly 3,000 were sponsored by Democratic-leaning organizations like the League of Conservation Voters and Environmental Defense Action Fund. None of that spending has been reported to the FEC.
Ideology aside, groups like LCV, which has a long history of social welfare activism, operate differently from organizations like One Nation, many of which have popped up since the Supreme Court’s 2010 Citizens United decision and appear to do littler other than try to influence elections in favor of one party or another. Still, LCV and its allies have been barraging Johnson for months, all without disclosing a single donor. Somewhat ironically, they’ve explicitly endorsed the candidacy of his opponent, Feingold, who championed the largest campaign finance reform legislation since Watergate during his time in the Senate.
And no donor disclosure leaves voters lacking key information, said Craig Holman, a government affairs lobbyist at Public Citizen, a group that supports stricter campaign finance rules. “If the public could see who paid for any particular ad, we could better judge the merits of the message,” Holman wrote in an email.
Last time around
At roughly the same point in the 2012 cycle, just 10,000 ads had been run in all races by nondisclosing groups, a WMP report shows. Almost all of them – 9,395 – were sponsored by two social welfare groups, Americans for Prosperity and Crossroads GPS.
Some of those ads focused on the presidential race (though it’s impossible to tell from the data available exactly how many). Virtually none were reported to the FEC, though all had the hallmarks of attempts to influence voters.
One ad sponsored by Americans for Prosperity attacked the Obama administration’s handling of its failed $535 million loan to solar panel maker Solyndra. Politifact deemed it “mostly false.” And undercutting the notion that it was anything other than an election ad, the spot didn’t list any upcoming decision or bill for which viewers could voice their support. It simply ended with a call to tell Obama “You shouldn’t use taxpayer dollars for political favors.”
Crossroads GPS spent heavily on ads criticizing President Obama’s economic policies. By the fall, it was also making questionable claims about Democratic Senate candidate Tim Kaine of Virginia. The ad, which didn’t mention a single policy decision Kaine controlled at the time, given that he wasn’t an officeholder, was clearly meant to discourage voters from supporting him. Nevertheless, the ad wasn’t reported as a political expenditure to the FEC.
A nonprofit trade association for the oil industry, the American Petroleum Institute, had purchased air time for 1,496 ads around the country at this point in 2012. Those, however, talked about domestic oil exploration and thanked senators who had won their elections the previous cycle, such as Sen. Pat Toomey (R-Pa), so weren’t on the ballot four years ago. Most were noncandidate ads; the API spot attacking Obama for his stance on the Keystone pipeline appeared to be the exception rather than the rule.
A nondisclosing super PAC, Citizens for a Working America PAC — funded entirely through a convoluted network of nonprofits linked to former officials of the Republican Governors Association — was the other group in the game at a comparable point in the 2012 cycle, having spent more than $450,000 on 1,287 ad spots supporting Mitt Romney in mid-January.
Those were enough to put CWA among the top five most active groups in the GOP nomination that year.
But this cycle, a single nonprofit, Conservative Solutions Project, has bought nearly four times as many ads, 4,882, all supporting Sen. Marco Rubio’s (R-Fla) presidential bid.
Little is likely to change, given the current regulatory environment. Public Citizen’s Holman points to decisions by oversight agencies like the FEC and the IRS not to pursue or penalize politically active nonprofits. These groups have now recognized “that there is no cop on the beat and that they could get away with paying for campaigns ads with secret sources of funds,” he wrote. “That problem has now grown into a catastrophe for our democracy.”
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(ACC Mentioned) Real Estate Gift Will Support MSU College Of Engineering
Feb 25, 2016 | MSU Today
By Tom Oswald , Patricia Mroczek
Michigan State University’s ability to advance the fields of chemical engineering and materials science will be enhanced with a real estate gift appraised at $1.725 million which will subsequently be sold to support the College of Engineering.
An endowed faculty position and scholarship will be created through the gift from Craig A. Rogerson, chairman, president and chief executive officer of Chemtura. He is a 1979 chemical engineering graduate of MSU.
“I have an appreciation for and have been impressed with the work going on at Michigan State, especially in the College of Engineering,” Rogerson said. “I see the need for more classically trained chemical engineers in the industry, so I see this as a real opportunity to get the best and brightest back into chemical engineering.”
Rogerson’s gift is based on the sale of real estate he owned in southern New Jersey. Rogerson, who lives with his wife, Irene, in Bay Harbor, Michigan, and Philadelphia, donated the property to MSU to establish the endowed faculty position and a new scholarship fund.
“I am grateful to Craig for his generous gift of real estate,” said President Lou Anna K. Simon. “It will result in a valued contribution to our Empower Extraordinary campaign goal of creating 100 endowed faculty positions. His gift will enable the College of Engineering to create a brand-new position and immediately begin its search for a professor of the highest caliber to fill it.”
Leo Kempel, dean of the College of Engineering, said the addition of another endowed faculty position represents the seventh new position as a part of the Empower Extraordinary Capital Campaign.
“Endowed faculty positions are among the most generous gifts donors can provide the college,” he said. “They not only ensure excellence in higher education and teaching, but they contribute to the university’s growth and innovation. I am very grateful to Craig for his generosity.”
This gift of real estate is a great example of how donors can consider a wide range of assets they have at their disposal when making such a significant investment in MSU, noted Bob Groves, vice president for University Advancement.
“MSU carefully considers the marketability and liabilities associated with gifts of real estate before they are accepted, and we have a process to do that,” Groves said. “In this case, a gift of appreciated real estate provided a great vehicle to make a larger gift that otherwise might not have been possible.”
This gift supports Empower Extraordinary, the $1.5 billion campaign for MSU that publicly launched in October 2014.
To date, the College of Engineering has raised nearly $50 million of its $80 million campaign goal.
Chemtura is a global specialty chemicals company listed on the New York Stock Exchange and Euronext Paris, with leading positions in transportation, energy and electronics, building and construction, and other diversified markets.
Rogerson joined Chemtura in December 2008 after serving as president, CEO, and director of Hercules Inc.
He currently serves on the board of directors of PPL, where he chairs the Compensation, Nominating and Governance Committee and sits on the Audit Committee. He is also on the American Chemistry Council board, and serves as treasurer on the Society of Chemical Industry board. In addition, he serves on the advisory board of the MSU Department of Chemical Engineering and Materials Science.
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Harris Aims to be Green 'Champion' -- Just Like Boxer
Feb 25, 2016 | E&E Daily
By Jeremy P. Jacobs
In the race to succeed retiring California Sen. Barbara Boxer, Democratic front-runner Kamala Harris has ramped up efforts to position herself as the best qualified to carry on the senator's substantial environmental legacy.
Harris, the state's attorney general, has in the last month filed a lawsuit seeking penalties for a massive methane gas leak in Los Angeles, begun an investigation into whether Exxon Mobil Corp. misled the public on climate change and even weighed in on chemical policy reform -- a politically obscure issue that Boxer has long promoted.
And on the campaign trail, environment and energy issues have become a major talking point for Harris.
"We know this -- climate change is real, and it is caused by human beings," Harris said at a Ventura County Women's Political Council event in January.
Adding that Boxer was an environmental "champion," Harris went on to discuss the current historic drought facing California.
"The reality," she said, is that in the future, "wars will not be fought over oil but water."
That emphasis on environmental issues reflects a belief among Harris' team that she has a clear advantage on the subject over her chief Democratic rival, Rep. Loretta Sanchez, as the candidates head into the state Democratic convention this weekend in San Jose and eventually a June primary.
Harris has also secured endorsements from billionaire climate activist Tom Steyer and local environmental groups, including Climate Hawks Vote, a group that scores candidates based on their climate activism and is led by the chairwoman of the state party's environmental caucus, R.L. Miller.
Miller emphasized that Harris has made climate change an integral part of her campaign.
"Climate Hawks Vote endorsed Kamala specifically for the leadership she has shown on Exxon and on investigating Exxon," Miller said. "We anticipate that she will take every step possible."
The race to succeed Boxer, the top Democrat on the Senate Environment and Public Works Committee, is a complicated game of 3-D political chess.
Under California's new election rules, the state will hold an open primary in June, and the top two finishers will advance to the general election regardless of their party.
Harris has maintained a significant lead in all the early polls, appears to have the backing of the Democratic establishment and has raised the most money (E&E Daily, Feb. 9).
The big question mark, however, is whether Sanchez -- who is viewed as more of a centrist than Harris -- will come in second, or if a Republican candidate will overtake her. Two former state GOP chairmen, George "Duf" Sundheim and Tom Del Beccaro, are currently in the race but trail significantly in polls and fundraising.
Harris' strategy has been to run to Sanchez's left in a bid to solidify support among Democratic voters.
That has entailed emphasizing income inequality, education, immigration reform, civil rights and environmental issues on the stump.
Specifically, Harris touts her successful legal defense of the state's landmark 2006 climate change law, A.B. 32.
Critics of the law have filed numerous complex lawsuits seeking to undermine it. Harris, in her role as attorney general, has led the state's defense and has been largely successful in rebuffing challenges, including to the state's low-carbon fuel standard.
After prevailing at the San Francisco-based 9th U.S. Circuit Court of Appeals, challengers including oil trade groups appealed to the Supreme Court, which has declined to review the case so far (Greenwire, June 30, 2014).
Harris has also joined about a dozen other state attorneys general in supporting President Obama's landmark carbon dioxide emission standards for power plants, the Clean Power Plan.
That work has earned her supporters in the environmental legal community.
"I think Kamala Harris is a uniquely strong and substantive candidate on these issues," said California Rep. Jared Huffman (D), a former Natural Resources Defense Council attorney.
"I've worked with her in her capacity as attorney general, and frankly, she and her team have been stellar in terms of understanding what's at stake, taking seriously their public trust responsibilities and getting it right," he said. "I've got a high degree of confidence in her as a U.S. senator."
Harris' more recent work has directly appealed to the party's environmental wing.
In January, reports surfaced that she had opened an investigation into whether Exxon misled the public and shareholders on the risks of climate change in the 1980s and '90s. The news followed investigative reports in the Los Angeles Times last October, which quickly generated a rallying cry among environmental activists in California and elsewhere. Harris and New York's attorney general launched investigations.
Harris was also one of a dozen attorneys general who weighed in last month on reforming the 1976 Toxic Substances Control Act, or TSCA, the nation's primary law for regulating chemicals.
This issue is relatively low profile in the world of environmental politics, but it is one that has been championed by Boxer.
Efforts to update the law have been progressing slowly on Capitol Hill (E&ENews PM, Feb. 10). Harris urged any final bill to preserve California's ability to pre-empt federal regulations with more stringent policies of its own -- a key point that Boxer has repeatedly made during negotiations.
"As Congress moves closer to reforming the Toxic Substance Control Act, it is critical that states' ability to protect communities from toxic chemicals is not preempted," Harris said in a statement.
And in late January, Harris filed a lawsuit on behalf of the state seeking civil penalties against Southern California Gas Co. for an enormous natural gas leak in Los Angeles. The rupture released at least 80,000 metric tons of methane, a potent greenhouse gas, and Harris framed the lawsuit as seeking a remedy for the prevention the state from reaching its climate change goals (E&ENews PM, Feb. 2).
All of those actions have been an effort to draw a contrast between Harris and Congress and, by extension, Sanchez.
"Kamala Harris has been a strong, consistent leader for protecting California families and our environment," said Nathan Click, her spokesman. "While Congress has gotten little accomplished on these issues, Kamala will bring California's bold leadership fighting climate change and protecting the environment to Washington."
Harris' efforts in the environmental arena have not been without their stumbles, however.
An early version of her stump speech contained a line about caring about the environment "not because I have a particular desire to hug a tree" but because she has a "very strong desire to hug a healthy baby" -- an awkward juxtaposition that was later nixed from her talking points.
Drawing contrasts with Sanchez
Harris' supporters are quick to compare her efforts to Sanchez's campaign and record, particularly leading into the state Democratic convention this weekend.
They note that while environmental issues are prominently featured on Harris' campaign website, they aren't listed on Sanchez's.
And Miller, the chairwoman of the state Democratic Party's environmental caucus and co-founder of Climate Hawks Vote, said Sanchez's leadership on climate change issues has been minimal.
Sanchez's campaign, however, argues that there isn't as much daylight between the two candidates on environmental issues as Harris' supporters contend. Sanchez, for example, has earned good marks from the League of Conservation Voters, including a 97 percent voting score in the 113th Congress.
The congresswoman has championed water issues in Southern California and in her Orange County district, her campaign said. She supported legislation that backed the county's unique groundwater replenishment system that helped reduce the area's reliance on imported water from Northern California and the Colorado River.
And her campaign has sought to emphasize Sanchez's Capitol Hill experience to differentiate her from Harris.
"There are two issues at hand here: Stalling climate change and combating the drought conditions that are very much amplified by climate change," her spokesman, Luis Vizcaino, said in an email. "Rep. Sanchez is the only candidate in this Senate race who has federal experience tackling both of these issues in a meaningful way, which is why she would be the most effective and the best option for climate-conscious voters to send to the United States Senate."
Vizcaino said Sanchez takes "great pride" in that work, and "passionately talks about what more can and needs to be done for water, transportation and conservation infrastructure in the state of California."
She has also sponsored legislation on underground gas storage -- a response to the Los Angeles gas leak -- as well as other bills to address the drought and to reauthorize the Land and Water Conservation Fund.
Open primary strategy
While she may not emphasize climate change as much as Harris, Sanchez's environmental policies appear driven by a specific political strategy.
Latching on to water issues may be politically savvy for Sanchez, said Tony Quinn of the nonpartisan "California Target Book," a leading political handicapper in the state.
Water, especially when tied to economic issues, may resonate with moderate and Hispanic voters in California's Central Valley, its agricultural hub.
Sanchez will need those voters if she wants to compete with Harris' strength among liberal and coastal voters.
"That might help her," Quinn said of Sanchez. "She might be able to attract Republican votes."
Quinn noted, however, that Sanchez's path forward is much more complicated, and several factors are beyond her control.
A lot may depend on the state of the presidential nomination races when California holds its primary in June, Quinn said. If the Democratic contest between Vermont Sen. Bernie Sanders and former Secretary of State Hillary Clinton is still competitive, that could drive up Democratic turnout and help Sanchez secure a second-place finish.
But if no Republican has secured the presidential nomination by that point, Republican turnout will likely surge. That could boost the chances of Republican contenders Sundheim and Del Beccaro.
"If you get an equal number" of Republican and Democratic primary voters, Quinn said, "it's hard to see how Sanchez gets into second place."
In order to advance to the general election, Sanchez likely needs to appeal to moderate Democratic voters and convince centrist Republicans that she has a better chance of beating Harris in the general election than either Republican candidate -- both of whom have limited statewide name recognition and have trailed in fundraising.
"Her problem is she does have to get a good Democratic vote and pick up some Republicans who want to vote strategically realizing that neither of the two Republicans have a chance to win in the fall," Quinn said. "That requires a level of sophistication."
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Washington Issues Enforcement Guidelines for Lead, Cadmium, Phthalates
Feb 25, 2016 | Chemical Watch
Washington’s Department of Ecology has issued a guidance document, clarifying the enforcement of lead, cadmium and phthalates limits under its Children’s Safe Products Act (CSPA).
According to the American Apparel and Footwear Association, “the guidance serves as notice that the Department of Ecology intends to begin enforcing the applicable state standards” for those products not already covered by federal rules.
Its issuance follows a request from an NGO, last year, that the state enforce self-reported violations of substance limits. The state had responded that it routinely tests products and reports federal violations to the Consumer Products Safety Commission (CPSC), but that it would begin to investigate self-reported violations as well.
The CSPA limits the use of lead, cadmium and phthalates in children’s products. However, the adoption of the Consumer Products Safety Improvement Act (CPSIA) in 2008 largely preempted the state’s rule, as it imposed its own limits on the three substances.
But the Washington CSPA has a broader definition of “children’s products” than covered by the CPSIA, and the state therefore has the authority to regulate those products that fall outside of the federal rule’s scope.
According to the guidance, product-chemical combinations that Washington may enforce include:
a 40 parts per million (ppm), by weight, limitation on cadmium in clothing, footwear, jewellery, childcare articles and cosmetics (as compared to a federal 75ppm cadmium limit in surface-coating or accessible substrate of toys);
phthalates in clothing, footwear and cosmetics, which are limited to 0.10% by product weight (individually or combined); and
lead in children’s car seats, which is not to exceed 90ppm.
Washington’s limits are “generally more stringent” than those in the CPSIA, according to the Department of Ecology.
Separately, the state’s next reporting deadline, under the Children’s Safe Products reporting rule, is 29 February. This applies to manufacturers, which first reported to the state in February 2013.
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California Proposes Amendments to Prop 65 Litigation Reform
Feb 25, 2016 | Chemical Watch
California’s Office of Attorney General (OAG) has released additional amendments to its proposed reformof rules, governing private litigation enforcement of the state’s Proposition 65 chemical warning scheme.
Several of the amendments were made in response to public comments, submitted during a consultation and public hearing that took place in late 2015.
The modified proposal includes:
the addition of a proposed definition of “private enforcer”;
clarification of the determination of whether a product reformulation will “confer a significant benefit on the public”; and
increased detail on required disclosure of economic interest in a settlement.
Written comments on the proposal will be accepted until 26 February.
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California Agency Credits Legislation for PBDE Decrease
Feb 25, 2016 | Chemical Watch
California’s Department of Toxic Substances Control (DTSC) has credited a decrease in PBDEs in women’s breast milk to legislative action against flame retardants.
Findings from a recent DTSC study show a 39% decrease in polybrominated diphenyl ethers in women’s breast milk. This follows the passage of legislation in 2003 (Act 302) phasing out their use.
Meredith Williams, head of the state’s Safer Consumer Products (SCP) programme, says the study “demonstrates that we can make a difference with legislative and regulatory action”.
“The statutory action to ban PBDEs had a direct result in lowering the amount of PBDEs we’re seeing in women’s bodies”, says Dr Williams.
Barbara Lee, DTSC director, adds: “It shows that by taking action on harmful chemicals in consumer products we can reduce our uptake of those chemicals and better protect public health.”
In a press conference announcing the study’s findings, the DTSC staff highlighted the importance of continuing similar biomonitoring studies to track the effectiveness of regulatory action, and to identify declines and increases of chemicals in the population to inform future regulatory activity.
Biomonitoring California is conducting studies measuring more than 30 substances, including:
bisphenol A;
parabens;
perfluorochemicals (PFCs);
phthalates; and
polycyclic aromatic hydrocarbons (PAHs).
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Johnson & Johnson to Pay $72m in Damages in Talc Suit
Feb 25, 2016 | Chemical Watch
By Kelly Franklin
Johnson & Johnson has been ordered to pay $72m in damages, after being found by a Missouri court to be liable for ovarian cancer linked to the use of its talc-containing products.
The company was found guilty of negligence, failure to warn and conspiracy, and will be required to pay $10m in actual damages and $62m in punitive damages. The verdict is the first reached, among the 66 cases being heard by the court in the class-action complaint.
A spokesperson for the company said that it “strongly [disagrees] with the outcome” of the case. They say that the verdict “goes against decades of sound science, proving the safety of talc as a cosmetic ingredient in multiple products”.
Similar suits, that have been brought against the company in New Jersey, South Dakota and Illinois in recent years, found it liable. This was the first case to also award damages.
'Ongoing battle'
The class-action complaint named Johnson & Johnson and its supplier, Imerys Talc America, defendants in the case. It alleged that they:
failed to inform consumers of the hazards associated with talcum powder products;
“procured and disseminated false, misleading and biased information” regarding their safety; and
used influence over governmental and regulatory bodies with regard to regulating talc.
Jere L Beasley, a principal and founder of Beasley Allen, the law firm that represented the plaintiff, toldChemical Watch that it is “hard to say” if future cases will award similar damages. But, he noted, the jury awarded a higher sum than the plaintiff had sought in the case.
The law firm has already been contacted about more than 6,000 potential individual claims, regarding talcum powder and ovarian cancer. Since Monday’s verdict, Mr Beasley reports having received inquiries from around the US and world, from women who had not been aware of the link.
“It’s going to be an ongoing battle,” said Mr Beasley. He is confident that the complaints, filed against the company in courts, will number in the thousands.
Findings 'mixed'
The use of talc is not restricted by the Food and Drug Administration, despite past petitions from NGOs. The European Commission does not regulate its use as a cosmetic, and Canada's Cosmetic Ingredient Hotlist only requires a cautionary statement, regarding its inhalation by children.
The American Cancer Society says that findings from studies, linking talcum powder and ovarian cancer, are “mixed”. “If there is an increased risk, the overall increase is likely to very be small,” it says.
According to Johnson & Johnson: “Ovarian cancer is a complex disease with no known cause, and the US FDA National Cancer Institute and Cosmetic Ingredient Review Committee have all concluded that there is insufficient evidence linking talc to the disease.”
But Ted Meadows, a principal with representing law firm Beasley Allen, says the company has known, for “literally decades, that the talc contained in its products could cause cancer”.
The complaint referred to several studies from bodies like the International Agency for Research on Cancer (Iarc) and the National Toxicology Program (NTP), which linked the substance to ovarian cancer and of which the company had knowledge.
According to court documents, Imerys Talc America began disclosing on its safety data sheets (SDSs), in 2006, the substance’s Iarc designation as a 2B “possible carcinogen”.
The court did not find Imerys liable.
Talc is the main ingredient in talcum powder, found in the company’s Johnson’s Baby Powder and Shower to Shower products, both named in the suit.
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Echa Finds More Non-Compliant Dossiers by Targeting 'Right’ Substances
Feb 25, 2016 | Chemical Watch
By Geraint Roberts
The proportion of compliance checks where Echa decided further information was needed to bring the REACH registration dossier into compliance rose in 2015 from 60% to 82%.
But the agency’s latest annual report on evaluation says this is not a reflection of the quality of all dossiers. Instead it is because it deliberately targeted substances it felt were likely to have data gaps.
In his introduction to the report, Echa executive director Geert Dancet says he encourages industry associations “to convince and support their members in filling the knowledge gaps, rather than seeking to delay addressing the identified gaps that stop us from concluding whether a substance is a concern or not.”
As usual, the report not only gives an update on dossier compliance checks, but also on the other two evaluation processes – the review of testing proposals and substance evaluation. It also includes recommendations for both first-time registrants and companies updating their dossiers on how to ensure they are of sufficient quality.
The compliance checks focused on the eight higher-tier endpoints set out in the compliance check strategy Echa adopted in 2014. The strategy, says the report, “is designed to increase registrants’ compliance with key information requirements that are essential to conclude whether substances are of concern or not”.
The most common areas of non-compliance, the agency says, related to:
substance identification and composition;
issues related to the chemical safety report;
pre-natal developmental toxicity; and
effects on terrestrial organisms.
Following the inclusion of the extended one generation reproductive toxicity study (Eogrts) into the REACH data requirements in March 2015, the agency began addressing them in dossier evaluations. As a result 34 draft decisions were sent to registrants in 2015. Most of the 216 cases referred to the European Commission for decision making since 2011 will be sent back to the affected registrants for reconsideration and re-submission to Echa as testing proposals “during 2016”.
During 2015 Echa conducted 300 follow-up evaluations of compliance check and testing proposal decisions.
In 75% of these cases, the registrant complied with all the information requests in the decision without the need for any further action by the agency.
Of the others, 11% of dossiers became compliant after the agency issued a Statement of Non-Compliance (Sonc). For the remaining 14% of cases – 25 related to compliance checks and 17 to testing proposals – the Sonc has been sent to member state authorities for them to consider enforcement action.
Echa's key recommendations for registrants, set out in detail near the back of the report are:
animal testing must be a last resort;
familiarity with Echa’s read-across assessment framework is essential for building a successful read-across case;
maintenance of efficient communication and planning throughout the substance evaluation process; and
accurate substance identification is vital.
Meanwhile, of the 50 substances allocated for evaluation by the member state authorities during 2014, only 11 were deemed to have sufficient information available to make conclusions.
During 2015, 18 conclusion documents originating from substance evaluations conducted in 2012-2014 were submitted to Echa by member states. Of these, 16 have so far been published. In 12 of these cases, the potential concerns have been dismissed. the other four led to proposals for risk management measures, or a risk management option analysis.
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Feb 25, 2016 | Chemical Watch
SVHC proposal expected
The Netherlands plans to submit a proposal to Echa, by 8 August, that trimellitic anhydride (TMA) should be classified as an SVHC.
The scope will be "equivalent level of concern, having probable serious effects to human health" (Article 57f).
Appeal announcement
The Board of Appeal has announced its receipt of an appeal from Envigo Consulting and DJChem Chemicals Poland Spolka Akcyjna.
They are contesting an Echa Decision on the substance evaluation of 1,4-benzenediamine, n,n’-mixed penyl and tolyl derivatives.
In this, the agency requested the companies, one British, the other Polish, to:
carry out simulation testing on ultimate degradation in surface water; and
carry out additional sediment simulation testing.
The companies also contest the agency conclusion that the substance fulfils bioaccumulation criteria.
They want the Board of Appeal to annul the Decision, made last October, and order the refund of the appeal fee.
REACH authorisation enforcement
A pilot project, conducted by Echa's Enforcement Forum, has found only three cases of non-compliance.
The project was limited to compliance checks on two substances:
musk xylene; and
4,4'-diamoniodiphenylmethane (MDA).
The two substances share the earliest Annex XIV sunset date of 21 August 2014.
Eighteen member states took part, conducting 421 inspections. Just three cases of non-compliance were found. The authorities' responses included written advice, an administrative order and a fine.
Presentations for downstream users
The agency has produced a number of presentations on key issues under REACH and CLP, for downstream users.
They are aimed at a wide range of audiences, including management, workers, industry groups and authorities.
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States Form Group to Study Storage Issues
Feb 25, 2016 | E&E Energywire
By Mike Soraghan
State oil and gas regulators are responding to the monthslong methane leak at a natural gas storage site in California by forming a work group to examine how such storage is being regulated.
They will work together to identify technological advances, look at aging infrastructure problems and determine regulatory challenges.
The Groundwater Protection Council (GWPC) and Interstate Oil and Gas Compact Commission (IOGCC) will coordinate the work group. The panel will include mostly state regulators, but also representatives of academia, nonprofit groups, federal agencies and industry.
The plan is for the group to recommend solutions, guidelines and regulatory examples for overseeing the construction, operation and closure of storage facilities. Releases from GWPC and IOGCC yesterday indicated that a goal is to avoid federal regulation with a comprehensive state effort.
IOGCC describes itself as a multistate government organization with a mission to maximize domestic oil and natural gas resources while protecting health, safety and the environment.
GWPC is a national nonprofit association governed by a board of state water-protection officials.
Southern California Gas Co.'s Aliso Canyon storage facility spewed methane uncontrollably for almost four months. The leak drove thousands of families from their homes.
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Pipeline Regulators Pressed to Act on Gas Storage Leaks
Feb 25, 2016 | The Hill - E2 Wire
By Timothy Cama
Lawmakers repeatedly pressed the federal government’s pipeline safety agency to crack down on the potential for leaks at natural gas storage facilities.
A Thursday hearing in a subcommittee of the House Transportation Committee came days after workers with a California gas utility stopped a massive leak that had gone on for 117 days at a storage well just north of Los Angeles.
But as the panel works this year to reauthorize the Pipeline and Hazardous Materials Safety Administration’s (PHMSA) power to regulate the safety of hundreds of thousands of miles of pipelines, members want to give the agency clear power and a mandate to oversee storage sites.
“They have no regulations for natural gas storage,” Rep. Brad Sherman (D-Calif.), whose district is near the Aliso Canyon underground storage facility, told the panel. “Our California regulations are weak, the history of this incident will show you how weak.”
Rep. Steve Knight (R-Calif.), whose district is adjacent to Sherman’s, agreed, and promoted legislation he’s sponsored to require PHMSA regulations on underground storage. PHMSA is part of the Department of Transportation.
“We’re looking at setting standards at the federal level, and then making sure that the other 35 or so states that have these types of underground facilities ... have some sort of a baseline,” Knight said. “Now, states can take it over ... they can take these limits and raise them. But there should be some sort of standards.”
Knight’s bill, which enjoys industry support, would implement the American Petroleum Institute’s standards for underground storage, which are currently voluntary.
Rep. Michael Capuano (D-Mass.) said a key takeaway from the Aliso Canyon leak is that PHMSA needs authority to enforce emergency orders to the entire pipeline industry, something most other transportation regulatory agencies have.
“When there’s a problem like the one we know about in California, I think thoughtful regulators should have the ability to immediately implement especially standards that are already accepted by the industry,” he said.
Marie Therese Dominguez, PHMSA’s administrator, said the agency has the authority to write rules on underground storage tanks, but it would have to go through a long rulemaking process to do so.
PHMSA has put out industry advisories amid the California leak, but Dominguez admitted more should be done.
“We have worked for many years with the states, and looked primarily to the states to regulate in this year,” she said at the hearing. “Given the incredible occurrences at Aliso Canyon ... it’s very clear that there’s a role for the federal government to play in terms of regulating underground storage.”
Southern California Gas Co. is under criminal and civil investigation for the lead-up and response to the leak, which caused thousands of nearby residents to evacuate. The company allegedly missed numerous warning signs, including problems with old pipes.
PHMSA was also under fire at the hearing for its slow regulatory process. Of the 42 rules mandated in a major 2011 pipeline safety law, the agency has only completed 26.
Lawmakers agreed that their next legislation should focus mostly on helping PHMSA complete the remaining tasks from the 2011 law.
“Work on this reauthorization needs to make sure that PHMSA can stay focused on closing out the 2011 act,” said Rep. Bill Shuster (R-Pa.), chairman of the full Transportation Committee.
The remaining tasks center on leak detection, automatic shutoffs, excess flow valves and a wide range of other major safety problems in pipelines.
“We should give them an opportunity to finish what they’ve been tasked to do,” said Rep. Peter DeFazio (Ore.), the top Democrat on the full committee.
“I’d like to see us put some things in this bill to help them actually get the job done, and the goals and the objectives and the mandates that we put forward in 2011,” he said. “I think there are things we can do to make the agency work better.”
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Leak in N.J. Park Reaches Tens of Thousands of Gallons
Feb 25, 2016 | E&E Greenwire
By Jonathan Lin
Workers in a Bayonne, N.J., park have gathered more than 40,000 gallons of oil from a broken pipeline that is still leaking and undergoing repairs, according to the state Department of Environmental Protection.
The DEP has identified the oil as "Number 2 fuel oil," also known as heating oil.
"The leak is ongoing, and the reason for that is the repairs are still going on, and material ... is still being vacuumed up and pulled out," DEP spokeswoman Caryn Shinske said.
Shinske has said the leak is not a threat to public health or safety.
While it's unknown when the underground pipeline broke, the leak was reported to DEP on Monday at 12:40 p.m., said spokesman Larry Hajna.
DEP did not say when the repair work would be completed.
IMTT, a liquid storage and handling facility, owns the pipeline and took it out of service several months ago to carry out repairs and upgrades. The leak came from oil left in the out-of-service line, Hajna said.
IMTT has assumed responsibility for cleaning up the site and will reimburse the state for costs incurred, DEP said. IMTT did not provide any additional information about the incident.
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N.Y. Coalition Urges Closer Look at Crude-by-Rail Impacts
Feb 25, 2016 | E&E Energywire
By Blake Sobczak
A coalition led by environmental group Earthjustice is calling on New York regulators to meet with locals in Albany before renewing permits for two major crude-by-rail terminals there.
In a letter addressed to the acting head of the New York State Department of Environmental Conservation, Earthjustice attorney Christopher Amato argued that the state has failed to conduct a full environmental justice analysis for oil transfer facilities operated by Buckeye Partners LP and Global Partners LP.
The two terminals along the Hudson River have seen a surge in oil train traffic since earning updates to their air quality permits four years ago, and are now cleared to process as much as 2.8 billion gallons of oil each year. But the increase in oil shipments through the area has met with controversy since the DEC "rubber-stamped" modifications to the energy suppliers' air quality allowances in 2012, Amato said.
"Since those permits are now up for renewal, we're asking DEC to make it right and remedy their failure four years ago to involve the community and to actually comply with the environmental justice policy this time around," Amato told EnergyWire.
The Earthjustice coalition includes one other environmental organization, Albany County Executive Daniel McCoy and a representative from the tenants association of a housing development located near the terminals.
"The public housing project is literally at the fence line of the Global facility," Amato said. "Those oil tank cars are sitting within 20 feet of their kitchen windows."
The letter to the DEC comes on the heels of a separate Earthjustice lawsuit to pin Global Partners for alleged Clean Air Act violations at the same facility, which transfers crude onto barges (EnergyWire, Feb. 4). The company has vigorously denied those claims.
A DEC spokesman said the department has received the latest letter and is reviewing it.
Representatives from Global Partners and Buckeye Partners did not immediately respond to requests for comment yesterday afternoon.
Both companies have been financially pinched from the recent slump in crude oil markets. Crude-by-rail traffic has trailed off across the United States recently, falling from nearly half a million carloads in 2014 to about 410,000 carloads last year, according to data released yesterday from the Association of American Railroads. Rail-bound oil shipments in the fourth quarter of 2015 were down by more than 35 percent compared to the previous year, the AAR reported.
Amato said that despite the downturn, his work will continue, as "there are still oil trains coming into this [Albany] facility on a regular basis."
"People who live next door are still dealing with the threat of fire and explosion, the air quality impacts, the noise impacts," he said. "Let's find out what's really going on in this community -- let's find out how peoples' lives are being affected."
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Clean Transportation Proposals Stalled Without Oil Tax
Feb 25, 2016 | E&E Climatewire
By Camille von Kaenel
President Obama's proposed clean transportation programs face major hurdles in the appropriations process because Congress is vowing to block the oil tax that's supposed to fund them.
The $10.25-a-barrel oil tax would provide more than $300 billion in revenue over the next 10 years for a series of initiatives to promote clean vehicles, public transit, urban planning and climate preparedness.
The proposals reflect the administration's push to reduce greenhouse gas emissions and shifting priorities at the Department of Transportation, which is seeking to promote more regional collaboration and competitive grants.
Achieving those goals appeared unlikely as congressional Republicans slammed the oil tax as "dead on arrival." Their future remained murky after House appropriators weighed in at a hearing yesterday.
"I don't want to discard things outright, but we're going to have to be a lot more realistic than the proposals," Rep. Mario Díaz-Balart (R-Fla.), chairman of the House Transportation, Housing and Urban Development Appropriations Subcommittee, toldClimateWire. "This is like a shopping spree."
Transportation Secretary Anthony Foxx suggested to the panel yesterday that some of the proposals could still move forward without funding from the oil tax.
"I think you can make some progress, but it would require statutory changes," said Foxx, a former mayor of Charlotte, N.C., in response to a question about giving more transit planning resources to local and regional bodies without revenue from the oil tax. "If Congress were willing to take a look at that, that would be one way to move that forward. ... I'd be happy to work together."
Díaz-Balart said he was waiting for more details on that from the secretary.
"If it's good policy, and if we can do it within the numbers that we have, we'll look at that," he said.
Rep. David Price (D-N.C.), the subcommittee's ranking member, praised the administration's budget proposal but wouldn't say whether he would push to include new clean transportation initiatives as line items.
"The level of transit funding, the level of transportation enhancements, [Transportation Investment Generating Economic Recovery (TIGER)] funds, the whole transition from just adding more lanes to highways -- a lot of that's already environmentally relevant, so in some cases we'll be thinking about how to beef up those efforts as opposed to some of these new efforts, and that's just a judgment we're going to have to make," he said.
The "burden of proof" to justify environmental spending rests with him and his Democratic colleagues, Price added.
The $98 billion spending blueprint for DOT included $17.5 billion above current spending levels for programs under the "21st Century Clean Transportation System" (ClimateWire, Feb. 10).
The biggest chunk of the money would go toward new initiatives by the Federal Highway Administration, including $3.7 billion for advanced rail technologies, $1.5 billion for climate preparedness and $1 billion for regional-scale transportation.
Integrating regional transit planning has been a constant priority for Foxx.
The budget proposal would also nearly double funding for the popular TIGER program, which provides grants for multimodal projects, from the currently appropriated level of $700 million to $1.25 billion. Some existing grant programs including TIGER would also become mandatory under the proposal.
Rep. Hal Rogers (R-Ky.), chairman of the Appropriations Committee, slammed the shift from discretionary to mandatory spending as a "gimmick."
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McCarthy Says EPA Must 'Do More' To Curb Oil & Gas Methane Emissions
Feb 25, 2016 | Inside EPA
By Lee Logan
EPA Administrator Gina McCarthy says the agency must “do more” than it is currently planning to curb emissions of methane, the potent greenhouse gas, arguing that new data it released earlier this week shows emissions from existing sources in the oil and gas sector are “substantially higher than we previously understood.”
McCarthy stopped short of committing the agency to launch a new rulemaking to limit methane emissions from existing oil and gas sources, as environmentalists have long sought.
Nevertheless, McCarthy told scores of oil and gas industry executives at the annual IHS CERAWeek conference in Houston Feb. 24 that observers should “be on the lookout for more on this to come soon, because this is something we're not going to ignore,” according to her prepared remarks.
The administrator noted that EPA plans to finalize its methane standards rule for new and modified oil and gas sources this spring, and will formally launch its recently finalized voluntary “Methane Challenge” program in the coming weeks.
But she highlighted EPA's Feb. 22 release of its new draft GHG inventory, which showed that emissions from existing sources in the oil and gas sector are 26 percent higher than estimates released last year.
“The new information shows that methane emissions from existing sources in the oil and gas sector are substantially higher than we previously understood,” McCarthy said, adding that the figures do not necessarily mean that methane emissions have increased, but rather that they “provide a fuller picture of methane emissions that are taking place.”
She added: “So, the bottom line is -- the data confirm that we can and must do more on methane. It has always been EPA's job to follow where the science and data lead us. So that's exactly what we plan to do moving forward.”
McCarthy did not explicitly say that the agency would begin crafting Clean Air Act limits for existing oil and gas facilities, but environmentalists and congressional Democrats have been strongly urging the agency to take such a step.
For example, one environmentalist earlier said that the Supreme Court's stay of EPA's existing power plant GHG rule “has made it all the more urgent for the Administration to look harder at all sources of greenhouse gases, and propose and finalize a standard on existing sources of methane from the oil and gas industry.”
The source added that the Obama administration is committed to achieving the GHG targets in the Paris climate agreement, “so we feel more strongly than ever that the Administration must address existing sources.”
And the Environmental Defense Fund in a Feb. 23 statement said the draft GHG inventory makes it “crystal clear that there can be no more excuses for ignoring this huge challenge -- not only controlling methane emissions from future sources, as proposed new EPA rules will do, but also controlling emissions from the tens of thousands of leaking facilities already operating now. Existing systems account for all of today’s emissions, and will generate the lion’s share of pollution for many years to come.”
'Shall Prescribe Regulations'
McCarthy in her CERAWeek remarks noted that the agency is now reviewing about 900,000 comments on its proposed methane limits for the sector, known as a new source performance standards (NSPS) rule, crafted under section 111(b) of the Clean Air Act. EPA plans to finalize the rule this spring, she said.
Advocates have long noted the air act says that once EPA sets rules for new and modified sources under section 111(b), the agency “shall prescribe regulations” that would require states to craft plans for meeting standards for existing sources under section 111(d) -- the same authorities EPA used for its power sector GHG rules.
But EPA officials have earlier said that the air act gives them significant flexibility on the timing of any existing source regulation, and that they will hold off on crafting a 111(d) rule to gauge the effectiveness of other efforts to curb emissions.
McCarthy, for example, said last year that the agency is gathering data to consider whether there is a need for future rules on existing sources, though the new source rule and voluntary program are higher priorities. “That's one of the things we're trying to look at now, what are the gaps still in the system and what is necessary to fill those gaps,” she told an Oct. 22 Center for American Progress (CAP) discussion on reducing methane from the oil and gas sector.
In addition to the voluntary program -- an effort environmentalists have panned as far too weak -- the Interior Department has proposed a rule governing natural gas flaring on public lands.
Advocates have also pointed to state rules in Pennsylvania, Colorado and elsewhere, arguing that there is a gap in much-needed regulation of methane from existing activities.
Similarly, advocates have argued that despite the current efforts to curb methane in the sector, the Obama administration remains far short of its pledge to reduce oil and gas methane emissions by 40-45 percent over the next decade.
“The good news is that the Administration has the opportunity to meet its methane reduction goal by issuing strong existing source methane rules this year,” says a Jan. 26 report from the Clean Air Task Force.
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Sabine Pass' First LNG Cargo Setting Sail for Brazil
Feb 25, 2016 | E&E Energywire
By Jenny Mandel
The first cargo of liquefied natural gas to be produced for shipment from the Lower 48 states has been loaded onto a tanker and will depart "imminently" for delivery to Brazil, Cheniere Energy Inc. officials said yesterday.
The initial loading of a ship from the first liquefaction train of the Sabine Pass project is what is known as a "commissioning cargo," transferred from the newly built export terminal to the ship to test the plant's systems.
"This historic event opens a new chapter for the country in energy trade and is a significant milestone for Cheniere as we prepare Train 1 for commercial operations," said Neal Shear, Cheniere's chairman of the board and interim CEO, in a statement yesterday.
Observers near the Cameron Parish, La., facility have closely monitored the plant over the past several days as the LNG carrier Asia Vision moved in from offshore and supply lines were connected to the ship.
The commissioning cargo had been due for loading in mid-January, but technical problems arose that led to a delay. On Tuesday, external signs suggested that LNG was beginning to be transferred onto the ship, and yesterday, officials confirmed that the vessel's departure was imminent.
Cheniere started construction on the first two LNG production "trains" at Sabine Pass in August 2012, and work started on two additional trains the following year. Officials are marketing contracts on two more trains that could ultimately be constructed on the site. Cheniere says that once the first liquefaction unit is fully online, the next three should be completed at six- to nine-month intervals.
For the first four liquefaction trains, most of the LNG to be produced under normal operating conditions has been contracted under long-term supply deals to Britain's BG Group (now part of Royal Dutch Shell PLC), Spain's Gas Natural Fenosa, South Korea's Korea Gas Corp. and India's GAIL Ltd.
Yesterday, the Federal Energy Regulatory Commission granted Cheniere permission to proceed with additional plant commissioning activities, not to include any further loading or export. "I remind you that Sabine Pass must comply with all applicable remaining terms and conditions of the orders" governing its operating license, regulators warned.
Ted Michael, an LNG analyst with energy market intelligence firm Genscape, said the first two trains could remain in startup mode for six months before Cheniere takes complete control from Bechtel Corp., the contractor that built them.
Michael said production from Train 1 is expected to start flowing to BG Group in the fourth quarter of this year, and production from Train 2 will go to Gas Natural Fenosa during the second quarter of 2017.
Cheniere's trading arm has supply contracts with Japan's Osaka Gas and Kansai Electric Power Co. that, if met from Sabine Pass shipments, would rely on either transit around South America or through a not-yet-complete project to widen the Panama Canal, in part to serve massive LNG carriers.
But Michael said initial Sabine Pass cargoes will flow largely to Europe, Brazil and Argentina, in part because of oversupply in Asia. The firm's Japanese contracts are short-term arrangements and could be supplied via swaps of physical cargoes from Australia, shortening transit distance and avoiding the Panama Canal, he said.
Sabine Pass' commissioning cargo alone is not enough to make the United States a net LNG exporter, as several import plants receive periodic "cool-down" cargoes to keep equipment at the ready.
"Sometime during 2017, the U.S. will be a net LNG exporter," Michael said. "Once both [Sabine Pass] trains are running as commercial operation sometime mid-2017, the U.S. will be exporting 1.2 [billion cubic feet per day] of LNG or 9 [million tons per year]."
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Senate Reaches Deal on $250M Flint Aid Package
Feb 25, 2016 | The Hill - E2 Wire
By Timothy Cama
Senate negotiators have reached a deal on an aid package for Flint, Mich.
The $250 million agreement, which the Senate is expected to vote on as soon as next week, would provide aid to Flint and other parts of the country with contaminated drinking water.
But it would not provide any help that is specific to Flint, where a citywide lead contamination drew national attention and put scrutiny on state and federal officials. Instead, the measure focuses on fixing drinking water contamination across the nation.
The measure seems likely to be approved by the Senate.
Seven Democrats and four Republicans are backing the deal, and the fast-track process suggests that GOP leaders are confident it has the votes to be approved.
The bulk of the package, $200 million, would go to expand and finance a pair of loan programs to help states and localities with drinking water infrastructure improvements.
Another $50 million would go toward health programs, including one meant for children suffering from lead poisoning and another to reduce toxins in homes.
“Using these existing, authorized programs is the fiscally responsible thing to do not only for Flint but also for the entire nation facing a water infrastructure crisis,” said Sen. James Inhofe (R-Okla.).
He was the lead GOP negotiator on the deal. Michigan Sens. Debbie Stabenow and Gary Peters were the lead Democrats.
“These programs provide low-interest loans to the states, local governments and other water suppliers to help address critical water infrastructure needs, and when the loan is paid back, more communities can receive funding,” Inhofe said.
He argued that the programs would not provide a “blank check” to anyone, and cities would need a “rigorous plan” to qualify for funding.
Accountability measures were a top concern of Republicans in the negotiations, including Majority Whip John Cornyn (Texas), who accused Democrats of asking the Senate to “write a blank check” to Flint.
The fight had torpedoed a broader energy bill on the Senate floor earlier this month.
The final deal falls significantly short of what Stabenow and Peters originally wanted for Flint, a city of 100,000 that is largely surviving on bottled water.
They had asked last month for $600 million, with $400 million going directly to the city to repair and replace corroded lead pipes and $200 million to create a “center of excellence” on lead poisoning.
“This does what we need,” Stabenow said of the deal. “There’s such a broad need around water infrastructure that we’re seeing very strong bipartisan support.”
Sens. Barbara Boxer (D-Calif.), Rob Portman (R-Ohio), Sherrod Brown (D-Ohio), Dick Durbin(D-Ill.), Mark Kirk (R-Ill.), Jack Reed (D-R.I.) and Richard Burr (R-N.C.) are co-sponsoring the measure with Inhofe, Stabenow and Peters.
Portman and Kirk are facing tough reelection fights this year, and each co-sponsor’s state has had some recent problems with drinking water contamination.
While Flint’s water crisis spurred the movement for aid, the legislation’s benefits would not be limited to that city.
“Other communities across the country will be able to access resources that are part of this. There will be a process to do that, dealing with not just lead, but other kinds of toxic contaminants as well,” Peters told reporters.
To pay for the bill, the Senate would pull money back from the Energy Department’s Advanced Vehicle Technology Manufacturing program, a little-used program that is a favorite of Michigan’s auto industry and its congressional delegation.
Stabenow had initially dismissed Inhofe’s suggestion to use that funding as a “slap in the face.”
But Wednesday, she said the negotiations had yielded a better solution that still uses money from the car program.
“We made a decision on how to structure things, so we’re structuring it in a way that’s positive,” she said.
Inhofe called the Energy Department program “a failed program that hasn’t been used in more than a year and has only issued five loans since 2008.”
With the Flint issue cleared up, the Senate’s broader energy bill could return to the floor for amendments and consideration as early as next week. A spokesman for Senate Energy and Natural Resources Committee Chairwoman Lisa Murkowski (R-Alaska) said she’s working on a way to move the bill forward.
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Feb 25, 2016 | E&E Greenwire
By Robin Bravender and Phil Taylor
Nevada Gov. Brian Sandoval may be a Republican, but he's no Justice Antonin Scalia.
With rumors flying that Sandoval is being vetted by the White House as a possible nominee to replace the late justice, the record of the centrist governor and former federal judge is already coming under intense scrutiny. When it comes to environmental issues, Sandoval would almost certainly veer the court sharply to the left if he fills the seat of the court's most vocal foe of environmental regulations.
"Gov. Sandoval has the reputation for being a moderate, so by all accounts he won't be a hard-line conservative in the model of Justice Scalia," said Justin Pidot, a professor at the University of Denver's Sturm College of Law and former Justice Department environmental attorney.
Sandoval, 52, has a long track record on energy and environmental law and politics from his time as governor, attorney general and legislator in Nevada, and from his stint as a President George W. Bush-appointed federal judge. He's widely viewed as a moderate on those issues, according to lawyers and environmental advocates in the state.
"Based on the little we know about his judicial philosophy, I would say he's no Scalia," Vermont Law School professor Pat Parenteau said in an email. He's also "no [Elena] Kagan or [Sonia] Sotomayor," Parenteau added, referring to President Obama's two other appointees, who are firmly in the court's liberal wing. "He's probably closer to [Anthony] Kennedy -- a pragmatist with an open mind. He also reminds me a bit of [former Justice David] Souter, a 'moderate' who turned out to more progressive" than President George H.W. Bush imagined when he nominated him.
Richard Frank, an environmental law professor at the University of California, Davis, also wrote today in a blog post that Sandoval would "doubtless be more conservative" than Sotomayor and Kagan. "But Sandoval likely would be far more moderate when it comes to environmental law and policy than was Justice Scalia in his three decades on the Court."
It's unclear whether Sandoval will ultimately get the nod from Obama, and it's uncertain whether the nomination of a moderate Republican would break the GOP-led Senate's staunch opposition to allowing a nominee to even be considered until a new president assumes power next year.
White House spokesman Josh Earnest yesterday declined to comment on The Washington Post's reports that Sandoval was being vetted. "I suspect it is only the first of many stories that speculate on potential Supreme Court nominees," Earnest told reporters. Once Obama "has chosen the best person to fill this vacancy, then we can have a conversation about that individual's credentials," he added.
Meanwhile, some liberal groups have bristled at the notion that Obama may appoint a Republican for the seat. Democracy for America Executive Director Charles Chamberlain said in a statement that nominating Sandoval would "not only prevent grassroots organizations like Democracy for America from supporting the President in this nomination fight, it could lead us to actively encouraging Senate Democrats to oppose his appointment."
Scott Segal, an industry attorney at Bracewell LLP, called Sandoval's vetting "intriguing," adding that he doubts the administration will actually nominate a sitting Republican governor.
Segal said it's unclear how Sandoval might come down on hot-button environmental issues like the legality of the Obama administration's Clean Power Plan, should he take Scalia's seat on the bench. Segal noted that the state's attorney general filed a friend-of-the-court brief challenging the rule earlier this week. "While Sandoval has stated that Nevada would explore options regarding implementation of the Clean Power Plan, he has never stated that he believes the regulation will ultimately be found to be lawful," he said.
Sage grouse controversy, Cliven Bundy melee
Given the unsure political climate, "Sandoval may well be the best candidate President Obama can possibly hope to get confirmed by the Senate to serve on the Supreme Court before Obama leaves office," said Frank of UC Davis.
"Based on Sandoval's past record in public service, Obama -- and the American people -- could do a lot worse."
Frank pointed to Sandoval's work as a member of the Governing Board of the Tahoe Regional Planning Agency when he was in the Nevada State Assembly. There, "he charted a fairly moderate course, helping to direct an agency that over the past few decades has been a reasonably good steward of Lake Tahoe's spectacular environmental resources," Frank wrote.
And as attorney general, Sandoval "worked across party lines to successfully block the federal government's efforts to build and operate a national nuclear waste repository near Las Vegas," Frank added. As governor, he recently "earned the ire of some Nevada solar advocates by not, in their view, sufficiently supporting increased deployment of solar energy projects in the Silver State." But Frank also pointed to Sandoval's efforts to steer the state away from dependence on coal-fired power and partnership with other states in pursuing renewable energy.
Sandoval has been a key Republican ally to Interior Secretary Sally Jewell in the administration's effort to prevent a sage grouse listing under the Endangered Species Act, one that has seen fierce pushback from oil and gas, mining, and ranching interests, as well as other Republican governors including Idaho's Butch Otter and Utah's Gary Herbert.
Sandoval was at Jewell's side in Reno on April 21, 2015, when she announced the Fish and Wildlife Service would not list the bi-state grouse along the Nevada-California line, and again in Denver last September when Jewell said FWS would not list the greater sage grouse.
Both decisions had major ramification for the Silver State, which is 85 percent owned by the federal government and is a stronghold for the plump, flamboyant birds.
"Today, we reinforce the fundamental importance of a public-private partnership where federal and local stakeholders have equal platforms and participate as partners," Sandoval said at the Denver event. "I appreciate Secretary Jewell's commitment to continue working with us, and I take her at her word that we will collaborate in good faith during the next two years."
Sandoval's alliance came with some political risks.
Within weeks, two Nevada counties and two mining companies filed a lawsuit accusing Jewell's department of preserving sage grouse habitat at the expense of grazing, mining and recreational access to public lands. Attorney General Adam Laxalt (R) and several other counties later joined the lawsuit.
Sandoval has kept his powder dry. He's lobbied Jewell with letters and personal meetings for surgical changes to Interior's sage grouse plans to ensure they don't block projects like water tanks, cemeteries and schools. He's also supported a novel conservation credit system backed by the Environmental Defense Fund to allow developers to efficiently mitigate for impacts to grouse habitat.
Jewell and Sandoval appeared side by side again in December at a news conference in Las Vegas during the Western Governors' Association winter meeting, and seemed on amenable terms.
"We will be reasonable and flexible and work with the states at every level as we implement these plans," Jewell said. "This is part of an ongoing effort to make sure we're aligned in communication at every step of the way."
The alliance shows Sandoval willing to break from his conservative flank in the Silver State, one that gave birth to the Sagebrush Rebellion in the 1970s and '80s and where antipathy to federal land control still runs high. But in part, it's an alliance of necessity that's rooted in shared interests to develop clean energy and sustainably manage Nevada's vast rangelands.
More than two-thirds of Nevada is controlled by the Bureau of Land Management, which acts as a gatekeeper for everything from hardrock mining, grazing and renewable energy development to the Burning Man festival, all of which are major economic drivers.
BLM has made Nevada a major hub in its aggressive pursuit of commercial wind and solar development. And the Energy Department has offered more than $1 billion in loan guarantees to prop up solar, geothermal and transmission lines in the state.
The relationship hasn't always been sunny.
In April 2014, when BLM started rounding up trespass cows owned by Nevada rancher Cliven Bundy, Sandoval lashed out at the agency for closing 600,000 acres of public lands and herding conservative protesters into First Amendment zones. Sandoval called the move "offensive" and accused the agency of creating an "atmosphere of intimidation."
Sandoval's administration would be responsible for inspecting any cattle that BLM removes from the public lands. Those without an identifiable brand will become the property of the state.
But Sandoval has not defended Bundy, either. That summer, he told Greenwire that Bundy, who is now in federal custody for his role in the now-infamous standoff at Bunkerville, "undoubtedly" owes BLM money and "should pay."
Like other Western Republicans -- and Bundy allies -- Sandoval has spoken favorably about transfer of federal lands to state ownership. Yet he's also recognized the political and legal hurdles to doing so and has abstained from the political brinksmanship of other Western governors, namely Herbert, over land control issues.
Sandoval's response to Obama declaring a 700,000-acre Basin and Range National Monument in southeast Nevada last summer was decidedly mild compared with his Republican Silver State colleagues'.
"While we all share a common goal of preserving our lands for the use and enjoyment of generations to come, I would have preferred a more collaborative process when making such an important designation," he said in a statement. "I firmly believe our local ranchers, environmentalists, and community stakeholders are the best experts in ensuring Nevada's lands are preserved, protected and accessible."
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