Preview Newsletter
ACC PM 4/7/16
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(ACC Blog) OEHHA P65 Warnings Website Provides Few Answers for Consumers
Apr 7, 2016 | American Chemistry Matters
By American Chemistry
Without fanfare, OEHHA launched the Proposition 65 Warnings Website last Friday to further consumer understanding of warning labels required by the Safe Drinking Water and Toxic Enforcement Act of 1986, better known as Prop 65. -
US EPA Issues Final Snur For Trichloroethylene
Apr 7, 2016 | Chemical Watch
The US EPA has issued a final significant new use rule (Snur) for certain consumer uses of trichloroethylene (TCE). -
Reading Glasses On: Where's The Health Data on Fracking Chemicals?
Apr 7, 2016 | Politico Pro - Morning Energy
By Eric Wolff
There seems to be a lot of data missing from EPA's review of 105 fracking and drilling chemicals the agency reviewed under the Toxic Substances Control Act, according to a report out today from the environmental group the Partnership for Policy Integrity. -
Echa Round-Up
Apr 7, 2016 | Chemical Watch
Echa has added harmonised classification and labelling intentions (CLH) to its registry. -
(ACC Mentioned) Clinton Adviser to Talk Power with Utility Executives
Apr 7, 2016 | Bloomberg Government
By Mark Drajem
Hillary Clinton’s outside energy adviser, Trevor Houser, is set to meet with utility executives and union leaders today, as the Democratic campaign frontrunner confronts questions about her energy and climate policies. -
(ACC Mentioned) ACC: US Chemical Capital Projects Linked to Shale Reach $164 Billion
Apr 6, 2016 | Chemical Week
By Clay Boswell
The ACC says the number of announced US chemical capital projects tied to the shale gas revolution has reached 264. The ACC puts the potential investment at $164 billion, of which 40% is completed or underway, and 55% in the planning phase. -
(ACC Mentioned) Shale-Driven Chemical Investment Keeps Growing
Apr 7, 2016 | Natural Gas Intelligence
By Joe Fisher
About 40% of the U.S. chemical industry investment being spurred by the American shale gas revolution is either completed or under way, with another 55% in the planning phase, according to the American Chemistry Council (ACC). -
(ACC Mentioned) Japanese Chemical Company Opening New Plant in Texas
Apr 7, 2016 | Chem Info
By Meagan Parrish
Kuraray America is planning to open a new chemical plant near Houston later this month. -
W.Va. Loosens CO2 Plan Restrictions, Citing Utility Concerns
Apr 7, 2016 | E&E Energywire
By Elizabeth Harball and Emily Holden
West Virginia's governor quietly signed off on a small change last month that might give environmental regulators more leeway when planning for a federal rule to curb carbon emissions at power plants. -
Upcoming BLM Analysis of First Production Plant Sparks Outcry
Apr 7, 2016 | E&E Energywire
By Scott Streater
The Obama administration this week plans to release the draft analysis of what would be the nation's first oil shale production plant, drawing sharp criticism from environmental groups that say the project would lead to widespread air and water pollution. -
EPA Sends Second Methane Rule to OMB
Apr 7, 2016 | Politico Pro - Whiteboard
By Elana Schor
EPA yesterday sent a second plank of its four-part plan to regulate methane from the oil and gas industry to the White House budget office for review, indicating the complete plan is on track for release later this spring. -
Agriculture Spews More Methane Than Oil And Gas
Apr 7, 2016 | Environmental Working Group
By Emily Cassidy
The recent Porter Ranch methane spill in Los Angeles County spewed about 66 tons of methane into the air every hour for four months. After the leak was finally sealed in February, scientists estimated it had discharged a total of 106,000 tons of methane into the air, making it the worst such leak in U.S. history. -
Proposed Decision Rejects SoCalGas NatGas Pipeline Link; Aliso Outage A Factor
Apr 7, 2016 | Natural Gas Intelligence
By Richard Nemec
A California regulatory judge's proposed decision Tuesday rejects longstanding plans for a $600 million large-diameter natural gas transmission pipeline link in Southern California Gas Co.'s (SoCalGas) system, and the closure of SoCalGas' Aliso Canyon underground gas storage facility was cited as a factor. -
American LNG Now Sees 2017 Startup of Export Project at Titusville, Florida
Apr 7, 2016 | Platts
By Laura Brooks
American LNG Marketing's planned $250 million onshore LNG export facility at Titusville, Florida, will likely start operations next year, not this month as previously planned, according to a company update posted Wednesday on the US Department of Energy's website. -
Missing Fences, Faulty Alarms at Transmission Provider -- IG
Apr 7, 2016 | E&E Greenwire
By Hannah Hess
One of the 10 largest transmission providers is falling short in physical security, reveals a new report from the Department of Energy's Office of Inspector General. -
Enviros Urge EPA to Probe Arsenic in Texas Taps
Apr 7, 2016 | E&E Greenwire
By Tiffany Stecker
A coalition of Texas environmental groups is asking U.S. EPA Administrator Gina McCarthy to look into arsenic levels in the state's public drinking water systems.
Industry and Association News - There are no clips to report at this time.
Chemical Management News
Energy News
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Transportation News - There are no clips to report at this time.
Environment News
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(ACC Blog) OEHHA P65 Warnings Website Provides Few Answers for Consumers
Apr 7, 2016 | American Chemistry Matters
By American Chemistry
Without fanfare, OEHHA launched the Proposition 65 Warnings Website last Friday to further consumer understanding of warning labels required by the Safe Drinking Water and Toxic Enforcement Act of 1986, better known as Prop 65. Under that law, manufacturers and facilities are prohibited from knowingly exposing any individual to any of more than 800 listed substances without first providing a “clear and reasonable warning.” Thus, the ubiquitous Prop 65 warning labels are found throughout the state of California on consumer products, in parking garages, restaurants and other places of business.
As an organization representing chemical manufacturers, we support consumers’ access to important information about chemicals and how they can be used safely. But we also want to point out that the mere presence of a chemical is not an indication that there is cause for alarm.
Chemical makers invest significant resources to study and test the products of chemistry. Having access to accurate and trustworthy information helps inform decisions individuals make for themselves and their families. However, we believe that consumers who are confused about whether a product is safe to use, or a building is safe to enter, will find no clear answers on OEHHA’s website. Instead, they will find incomplete and limited information about chemical exposure and unsupported allegations that certain product uses may result in negative health outcomes.
OEHHA promotes the site as a right-to-know resource to provide supplemental information to consumers who want to know more about the products and locations that carry the Proposition 65 “warning” label. The regulations that created the website authorized a variety of methods to obtain that information. However, based on unknown criteria, OEHHA has created fact sheets for a handful of chemicals that don’t seem to represent the facts at all. These documents discuss chemicals we encounter every day–formaldehyde in furniture products, mercury in teeth fillings and nitrous oxide (or “laughing gas”) for dental procedures. As if a trip to the dentist isn’t already an anxiety producing event for many, we’re now warned that chemicals in essential dental care may cause reproductive effects.
After raising these concerns, OEHHA then offers examples of how to reduce exposure to the chemicals. But a suggestion to “have regular check-ups and talk to your dentist about good oral hygiene practices” seems unequal to the task of addressing the fear-inducing potential health outcomes OEHHA suggests on the same page.
A spot check of information presented in one of the formaldehyde fact sheets is a cancer claim thatcontradicts current scientific evidence. Numerous scientific studies show that levels of formaldehyde normally found in homes and offices do not pose a risk. It is also important to note that formaldehyde occurs naturally in the environment, is produced by the human body and highly efficient biological mechanisms in the body ensure that normal, everyday exposures do not pose a risk. This makes us wonder about the correctness of other materials developed by OEHHA for the site.
During the public discussion of the proposed P65 Warnings Website, many, including ACC, urged OEHHA to ensure that information posted to the site would not further confuse consumers and to note that the mere presence of a Proposition 65 listed substance in consumer products does not represent a health risk. As OEHHA itself has often said, a Proposition 65 listing has nothing to do with product safety.
OEHHA has a responsibility to avoid confusing and needlessly alarming consumers with inaccurate information presented as factual. We strongly encourage OEHHA to incorporate more transparency and vetting of information before it finalizes and posts information about chemicals and product safety.
Bottom-line, the public is shortchanged when information is posted that is incomplete, inaccurate and not properly placed into context. “Right to Know” should also mean “Right to Understand.”
https://blog.americanchemistry.com/2016/04/oehha-p65-warnings-website-provides-few-answers-for-consumers/
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US EPA Issues Final Snur For Trichloroethylene
Apr 7, 2016 | Chemical Watch
The US EPA has issued a final significant new use rule (Snur) for certain consumer uses of trichloroethylene (TCE).
The rule requires persons who intend to manufacture or process TCE for covered uses to notify the EPA at least 90 days before starting. During this period, the agency will evaluate the new use and take action to "protect against potential unreasonable risks" that may result.
Exempted from the rule are uses of TCE in:
cleaners and solvent degreasers;
film cleaners;
hoof polishes;
lubricants;
mirror edge sealants; and
pepper spray applications.
The Snur follows the EPA’s TSCA work plan final risk assessment of TCE, completed in June 2014. This identified health risks associated with several uses of TCE, including from:
arts and craft spray fixative;
aerosol and vapour degreasing; and
as a spotting agent in dry cleaning facilities.
The final rule will take effect 60 days following its publishing in the Federal Register.
Separately, the EPA has announced plans to initiate a rulemaking under section 6 of TSCA to address risks from TCE used in degreasers, spray fixatives and as a stain remover. A proposal is expected before the year’s end.
The agency has not attempted to regulate a substance via this mechanism since 1991 when a court overturned its section 6 rule banning most uses of asbestos.
Possible regulation under this provision of TSCA could include labelling requirements, restricting the amount of substance used in products, and bans.
https://chemicalwatch.com/46347/us-epa-issues-final-snur-for-trichloroethylene
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Reading Glasses On: Where's The Health Data on Fracking Chemicals?
Apr 7, 2016 | Politico Pro - Morning Energy
By Eric Wolff
There seems to be a lot of data missing from EPA's review of 105 fracking and drilling chemicals the agency reviewed under the Toxic Substances Control Act, according to a report out today from the environmental group the Partnership for Policy Integrity. The group used the Freedom of Information Act to review dockets for all 105 fracking chemicals submitted for review between 2009 and 2014. It found that submissions for six chemicals were missing, and health studies were missing from all but two of the remaining 99 cases. In 12 of the 105 cases, companies claimed health studies had been submitted, but the report authors couldn't locate studies in 10 of those 12.
http://www.politico.com/tipsheets/morning-energy/2016/04/pro-morning-energy-wolff-213643 -
Apr 7, 2016 | Chemical Watch
CLH intention
Echa has added harmonised classification and labelling intentions (CLH) to its registry for:
diisooctyl phthalate. France is expecting to submit a dossier by 29 July, with a proposed future entry of reproductive toxicity; and
sodium metaborate, anhydrous. Sweden is expecting to submit a dossier by 30 June 2017, with a proposed future entry of reprotoxicity 1B.
Harmonised classification and labelling
And the agency has launched a public consultation on proposed harmonised classification and labelling for:
propiconazole (ISO). The dossier was submitted by Finland. The hazard classes open for commenting are: carcinogenicity; germ cell mutagenicity; reproductive toxicity; acute toxicity; skin sensitisation; specific target organ toxicity – repeated exposure; and hazardous to the aquatic environment. The deadline for comments is 16 May.
New PACT substances
Echa has added five substances to its public activities coordination tool (PACT) for risk management option analysis (RMOA) or hazard assessment:
1,1,2,2,3,3,4,4,4-nonafluorobutane-1-sulphonic acid (PFBS);
bis(2-ethylhexyl)terephthalate;
formic acid;
pentasodium (carboxylatomethyl)iminobis(ethylenenitrilo)tetraacetate; and
phenol, heptyl derivs.
Classification and labelling notification exercise progresses
As part of a pilot exercise to encourage notifiers to come to an agreement on the classification and labelling of their substances, Echa has contacted almost 700 notifiers of 11 substances. They are mostly in the metals sector. The exercise is being carried out in collaboration with the European Commission, Eurometaux, Cefic and FECC.
IR&CSA guidance update
The agency has sent a draft update to Part E, Section E.2 of its Guidance on information requirements and chemical safety assessment (IR&CSA) to the Competent Authorities for REACH and CLP (Caracal) for consultation. This section deals with risk characterisation for physico-chemical properties.
WSSD workshop
Echa has published the proceedings of a workshop on how REACH and CLP contribute to the 2020 goals of the World Summit on Sustainable Development (WSSD). Held in January, the workshop aimed to agree on actions that can be taken to increase the overall contribution and impact on the safe use of chemicals.
https://chemicalwatch.com/46307/echa-round-up
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(ACC Mentioned) Clinton Adviser to Talk Power with Utility Executives
Apr 7, 2016 | Bloomberg Government
By Mark Drajem
Hillary Clinton’s outside energy adviser, Trevor Houser, is set to meet with utility executives and union leaders today, as the Democratic campaign frontrunner confronts questions about her energy and climate policies. “This discussion sets the stage for a robust dialogue with the Clinton campaign about the priorities of our mutual stakeholders,” according to an invite to the event at the Edison Electric Institute obtained by Jennifer Dlouhy.
Utilities are the rare energy companies that split their campaign donations between Democrats and Republicans; in fact, Clinton is the presidential candidate with the most donations from the industry, $151,280, according to OpenSecrets.org. Their attitude was best summed up by Southern Co. CEO Tom Fanning, when we asked him who he’s supporting in this year’s election: “The incumbent.”Industry lobbyists tell us they’re anxious to find out if there will be any difference between a Clinton administration and the Obama administration on energy and environment issues, and what those differences may be. Brian Wolff, who was a top aide to former Speaker Nancy Pelosi, said the meeting is crucial to show what the industry is doing “to deliver an energy future that is smarter, cleaner, and stronger.” He added in an e-mail: “We want to ensure that we are communicating with and educating the presidential campaigns as part of our outreach. We plan to hold similar briefings with other campaigns in the future.”
The fuels utilities use have been a big part of the campaign between Clinton and Bernie Sanders. Clinton’s been pressed into declaring her opposition to fossil-fuel production on public lands, for the elimination of the use of coal for electricity generation and for rules that would curtail fracking in most of the country. Each of those would be radical departures from current norms. But none likely represent the true policy priorities of what a Clinton administration would do; Bill Clinton told a Wyoming audience that coal will be around for a long time.
Utilities are increasingly reliant on cheap gas, so fracking may be more important than coal for them. The New York Times reported that upstate New York self-styled fracktivists are pushing Clinton further to the left against fracking, and giving support to Bernie Sanders. “The absolutism of Mr. Sanders’s position on this and other climate issues — as well as the fact that Mrs. Clinton arrived at her views under pressure from the left — has made many activists mistrustful of her and supportive of Mr. Sanders,” the newspaper declared.Sanders is also absolutely against the Indian Point nuclear plant near New York City; Clinton’s views are more nuanced — which should appeal to the utility executives and their union workers, as well.
“There’s a current Nuclear Regulatory Commission study being undertaken. But we also have to be realistic and say, you get 25 percent of the electricity in the greater New York City area from Indian Point,” Clinton told WAMC news. “I don’t want middle-class taxpayers to see a huge rate increase, so this has to be done in a careful, thoughtful way.”
Utilities, of course, have many other issues specific to what they do: the Clean Power Plan, siting policy and, even, ozone rules, BI analyst Cheryl Wilson says. As for Clinton herself, she’s scheduled to go to my hometown of Buffalo tomorrow. I’ve got to recommend a visit to Allen Street, first for the wings at Gabriel’s Gate and then for a Labatt’s and steak sandwich at the Old Pink. The Ramones will be playing on the jukebox.
In today’s edition, we also have details on mergers and more. Sagging stock prices and looming debts led many analysts to predict an era of merger mania among energy companies. Yesterday showed that’s going to be no easy task. Pipeline company Williams accused Kelcy Warren, the chief executive officer of its would-be owner Energy Transfer Equity, of “maliciously orchestrating” a unit offering that breached the terms of the takeover. And the Department of Justice filed a lawsuit to block the merger of Halliburton with Baker Hughes, the second and third largest oil services companies. Bill Baer, the head of the Justice Department’s antitrust division, said the deal is “unfixable” and assailed the companies for proposing “the most complicated array of piecemeal divestitures and entanglements” that he has ever seen. Also today, the latest on the FAA bill and ITC expansion, EPA tries to figure out biomass, cheap natural gas may mean trouble for producers, but chemical manufacturers couldn’t be happier; and T. Boone Pickens on talking frogs and Texas oilmen.
Quotable
“People view the Arctic as this snow globe that sits up a on a shelf and looks pretty — but don’t touch it! Hands off!,” Sen. Lisa Murkowski said at an Arctic Forum yesterday. Congressional debates on the Arctic are “so focused, so targeted specifically on the issues of climate change, of environmental protections.”“In our state, we will not allow the prioritization of production and profits over the safety of our workers,” W.V. Sen. Joe Manchin said in response to the sentencing of Don Blankenship. “No sentence is severe enough, and no amount of time in jail time will heal the hearts of the families who have been forever devastated, and I pray that this sentence brings them some closure.”
The Predictor
Chances that oil producers will agree to freeze output fell to 50% from 90% after Saudi Deputy Crown Prince Mohammed bin Salman said the world’s largest producer will only join the effort if Iran signs on, too, DNB Markets analyst Torbjoern Kjus said in a report.
In Depth
Why Utilities Were So Antsy at the BNEF Summit Kit Konolige, a BI analyst, gets at why utilities sounded so anxious at the BNEF summit this week. He gives the case study of Texas: “Wind power can produce 10 percent of demand on the Texas grid, crushing off-peak pricing. Ercot fossil-fuel generators are now concerned that 2,000 megawatts of solar expected online by 2017 may wipe out their 30 highest-priced hours. Wind is strongest overnight and almost disappears during midday’s high demand, keeping August prices from 4-5 p.m. above $100 a megawatt in 2015. Solar is strongest in summer afternoons, which could cut peak pricing. While their coal and nuclear plants are hardest-hit by low power prices, natural gas spark spreads have also narrowed.”
Inside the Beltway
Senate Nears Deal on Adding Tax Extenders to FAA Bill While Minority Leader Harry Reid continues to insist that he had a handshake deal with Majority Leader Mitch McConnell on attaching renewable energy tax credits to the FAA reauthorization bill, the chamber’s resident tax experts haven’t yet come to agreement on the actual numbers behind such a deal, according to Republican and Democratic leadership aides.Democrats are asking for a straight five-year extension of the investment tax credit for all eligible energy sources under Section 48, which means fuel cells and small-wind projects would get a 30 percent tax break while geothermal, micro-turbine and combined heat and power projects would get a 10 percent cut. An initial proposal floated by Wyden would cost $1.4 billion over 10 years, according to his office. Republicans, of course, aren’t exactly wedded to those figures but at close of business yesterday, Wyden told reporters outside of Reid’s office that they were getting close to working it out.
Also at issue is how such a deal would be introduced: Democrats want a finance title added to a manager’s amendment but some Republicans would prefer a stand-alone amendment, which would raise the hurdle for getting it included. (FWIW, energy lobbyists say they have no doubt a stand-alone would get the requisite 60 votes — after all, CHP tax breaks benefit the natural gas industry, too.)
Making Coal Out of Farm Waste at the EPA Today Enginuity Worldwide CEO Nancy Heimann came by the office with product samples that looked a heck of a lot like coal. The Missouri-based company, which is 75% farmer owned, uses friction and pressure to turn waste plant material into “biocoal,” which can be burned in a regular coal plant. The benefit is “you can change the fuel, not the plant,” she says, while cutting emissions. Enginuity is working on a pilot program with Ameren that the utility projects would add 180 jobs and generate $40 million for the rural economy. The process isn’t unlike what nature does using heat and compression, but Heimann points out, “we do it in two minutes and 40 seconds.”
Heimann is speaking at today’s EPA workshop on using biomass to address carbon pollution, which starts at 9 a.m. and can be livestreamed here.
Jay Faison Has Company Julian Robertson, a top Republican donor and legendary hedge-fund manager, is backing a campaign to push the party’s candidates to support clean-energy policies. Robertson recently gave $500,000 to a new super-PAC known as ClearPath Action, which advocates for nuclear and hydroelectric power and cleaner coal and natural gas technology. “The time has come for Republicans to embrace a conservative clean energy platform,” the billionaire investor said in an e-mail to Bloomberg. ClearPath is the brainchild of Jay Faison, a North Carolina entrepreneur and Republican. In addition to the super-PAC, which plans to support Republicans in congressional races this year, he’s also funded a related $165 million nonprofit foundation dedicated to clean energy.
T. Boone Pickens and Talking Frogs Energy tycoon T. Boone Pickens opened yesterday’s event on shale gas at the Hudson Institute with a pretty good one, and in the process compared himself to a talking frog: “The oil business is pretty sad right now,” he said, “and this woman was walking down Travis Street in Houston and there was a frog in the gutter and he said, ‘Stop stop!’ And she looked at him and said, ‘Did you say that?’ He said, ‘Yes, I am a talking frog, pick me up.’ She picked him up and she went, ‘You really are a talking frog.’ ‘Yes, I had this horrible spell cast over me and it made me a frog and if you’ll kiss me I’ll turn into a Texas oil man.’ And she looked at him, zipped her purse and he said, ‘Wait a minute, if you kiss me I’ll turn into a Texas oil man!’ She said, ‘Let me tell you something. A talking frog today is worth a hell of a lot more than a Texas oil man.'”
Automakers Join Chorus Against EPA Race Car Provision An obscure provision in proposed truck emissions standards would mark a significant departure by the Environmental Protection Agency from its treatment of non-road vehicles under the Clean Air Act and deprive consumers of property rights by barring legitimate activities, automobile manufacturers said in comments to the agency, Bloomberg BNA’s Anthony Adragna reports. The Alliance of Automobile Manufacturers, whose members include Ford Motor Co. and General Motors Co., and the Association of Global Automakers, whose members include Honda Motor Co. and Toyota, proposed clarifying language to the EPA’s greenhouse gas emissions standards for medium- and heavy-duty trucks to ensure that modifying a vehicle to be used solely in competition did not constitute tampering with emissions controls under the Clean Air Act.
Interior Approves California Solar Project A 287-megawatt solar project proposed to be constructed on federal lands in Southern California by privately held Bechtel has been granted final approval by the Interior Department, Bloomberg BNA’s Ari Natter reports. Approval of the Soda Mountain Solar Project on 1,767 acres of property owned by the Bureau of Land Management comes despite objections from environmental groups such as the Sierra Club, which has said the project less than one mile from the Mojave National Preserve threatens wildlife habitat.
Outside the Beltway
Md. Senate OKs Increasing State’s Renewable Energy Standard: AP A measure to increase Maryland’s renewable energy standard has passed the state Senate. The vote was 31-14 Wednesday. The bill increases requirements to use energy sources like wind and solar to 25 percent by 2020. That’s up from the current goal of 20 percent by 2022. The House passed a similar bill last month 92-43. The two chambers will need to pass the same version of the measure before Monday at midnight to send the bill to Gov. Larry Hogan.
Coahoma Electric Cuts Ribbon on Miss. Solar generation facility: Clarksdale Press Register South Mississippi Electric (SME) last week celebrated the first solar power generation facilities in the Mississippi Delta with a joint ribbon-cutting event for sites at Delta Electric Power Association and Coahoma Electric Power Association. Coahoma is headquartered in Lyon, and Delta in Greenwood, where the event was held. Both facilities are operational and generating electricity. The smaller-scale installations of 100 kW or less are among five such facilities that SME has announced it would construct and operate.
BP Engineer Gets 10 Months Probation on Pollution Charge: AP A former BP engineer was sentenced Wednesday to 10 months’ probation for a misdemeanor pollution charge connected to the 2010 Gulf of Mexico oil spill. Donald Vidrine had served as a rig supervisor on the Deepwater Horizon offshore rig. Prosecutors had argued that he and one-time co-defendant Robert Kaluza botched a pressure test before the rig’s explosion, which sent millions of gallons of oil spewing into the Gulf. Both had once faced manslaughter charges connected to the deaths of 11 rig workers.
Utica Shale Drilling Downturn to Cost Ohioans: Beacon Journal The downturn in shale drilling will likely be costly for Ohio landowners hoping to cash in on Utica Shale royalties, says an energy researcher. The drilling slowdown and low commodity prices are projected to cost Ohio landowners $6.5 billion in lost income over the next five years, said Maria Cortez of Houston-based Wood Mackenzie, an energy research company.
First of Two Calif. Central Basin Water District Reform Bills Passes First Test: Whittier Daily News The first of two bills to reform the Central Basin Municipal Water District by adding additional directors to its board was approved Wednesday by the state Senate Governance and Finance Committee. Sen. Ricardo Lara’s bill, S.B. 953, would add two seats to the Central Basin board and give the Los Angeles County Board of Supervisors the responsibility of appointing the new members.
Pacts Signed to Remove Dams from Klamath River: AP Endangered salmon blocked for nearly a century from hundreds of miles of the Klamath River in Oregon and California are expected to return en masse under unusual agreements signed Wednesday to tear down four hydroelectric dams. U.S. Interior Secretary Sally Jewell, who signed agreements with the governors of both states, said the plan would bring about one of the largest river restoration projects in the history of the U.S.
Buffalo News: Cuomo says SolarCity funds secured in state budget The state budget should put an end to the cash squeeze that caused the state to fall behind on its payments to vendors working on the SolarCity solar panel factory in South Buffalo late last year and early this year. The budget includes $685 million in funding for “high technology” projects in Erie and Chautauqua counties, including $200 million for the Athenex pharmaceuticals plant in Dunkirk. The rest of the funding – $485 million – is targeted for the SolarCity plant on South Park Avenue, which is being built with $750 million in promised state funding.
Chinese Emissions to Peak Early: E&E China could peak its carbon emissions a decade earlier than it promised as part of last year’s global climate deal, according to a new analysis by an influential Chinese think tank. The Chinese Academy of Social Sciences’ (CASS) “World Energy China Outlook 2016” found that under one scenario, the world’s largest emitter would likely peak its CO2 emissions in or around 2020 if the country takes recommended steps to decarbonize.
Oil, Gas and Coal
Market Wrap: Oil extended gains following the biggest advance in three weeks after crude stockpiles unexpectedly declined from the highest level in more than eight decades. West Texas Intermediate for May delivery rose as much as 55 cents to $38.30 a barrel on the New York Mercantile Exchange and was at $38.12 at 7:47 a.m. London time. Natural gas futures for May delivery on the Nymex fell as much as 1% to $1.892/mmBtu and were trading at $1.906 at 7:22am London time.
Halliburton Sued by U.S. Seeking to Block Baker Hughes Deal Halliburton Co. was sued by U.S. antitrust officials who say its planned takeover of rival oil-services firm Baker Hughes Inc. threatens competition and should be blocked, a blow to Halliburton’s bid to bulk up to better compete against rival Schlumberger Ltd. The deal, which would unite the No. 2 and No. 3 firms in the industry, threatens to eliminate head-to-head competition in 23 products and services used in oil exploration and create a duopoly with market leader Schlumberger, the Justice Department said.
Williams Accuses Would-Be Owner of ‘Maliciously’ Breaching Deal Williams Cos. is accusing pipeline magnate Kelcy Warren, the chief executive officer of its would-be owner Energy Transfer Equity LP, of “maliciously orchestrating” a unit offering that breached the terms of its takeover. Warren interfered with the terms of the companies’ merger pact by arranging the offering of units in Energy Transfer last month that it may use to finance the merger, Williams said in a lawsuit filed in a Texas court. Warren led the offering to “enrich himself” at the expense of other shareholders, according to Williams. The legal challenge is just the latest bump on what’s proven to be a rocky road toward closing the transaction between Energy Transfer and Williams, a deal valued at $32.9 billion at the time of its announcement in September. Oil’s collapse is already weighing on the value of both of the companies’ stocks, casting doubt on whether Energy Transfer, the midstream giant founded by Warren, will actually follow through with the buy.
Blankenship Gets Year in Prison Over Mine-Safety Conspiracy Six years after 29 miners were killed in a West Virginia coal dust explosion, the man who ran the mining company like a fiefdom — a coal baron and power broker who earned millions of dollars a year — learned Wednesday he’s prison-bound. Donald Blankenship, who presided over his coalfields from a mountaintop castle, was sentenced Wednesday to a year in prison and a $250,000 fine, the maximum punishment after his misdemeanor conviction for conspiring to flout mine-safety rules.
PennEast’s $1 Billion Pipeline Start Delayed to 2018 for Review Developers of a $1 billion shale gas pipeline in the Northeast are pushing back the start date because a review by federal energy regulators is taking longer than anticipated. The 118-mile (190-kilometer) PennEast natural gas pipeline project is expected to begin operations in the second half of 2018, compared with an earlier planned date of late 2017, according to an announcement on the project’s website Monday.
Shale Gas and Chemical Investments U.S. chemical industry investment linked to shale gas reached $164 billion. Forty percent of the investment for the 264 projects – new facilities, expansions and factory re-starts – is completed or underway, while 55 percent is in the planning phase, the American Chemistry Council said. The ACC analysis shows that the capital spending could lead to $105 billion per year in new chemical industry output, and 69,000 direct jobs.
Keystone Oil Pipeline Shuts and Oversupplied U.S. Market Shrugs This week’s shutdown of the Keystone oil pipeline has stopped up the route for roughly a quarter of the crude flowing into the U.S. Midwest.To which the oil market has essentially said: Eh.TransCanada Corp. closed the pipeline that ships 590,000 barrels a day of Canadian crude to the U.S. on April 4, responding to signs of a leak in South Dakota, and doesn’t expect to restart it until at least early next week. While there’s no good time for a shutdown, the move comes with American oil stockpiles booming.
http://about.bgov.com/blog/clinton-adviser-to-talk-power-with-utility-executives/
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(ACC Mentioned) ACC: US Chemical Capital Projects Linked to Shale Reach $164 Billion
Apr 6, 2016 | Chemical Week
By Clay Boswell
The ACC says the number of announced US chemical capital projects tied to the shale gas revolution has reached 264. The ACC puts the potential investment at $164 billion, of which 40% is completed or underway, and 55% in the planning phase.
The ACC says the projects could lead to $105 billion per year in new chemical industry output and support 738,000 permanent new jobs in the United States by 2023, including 69,000 new chemical industry jobs, 357,000 jobs in supplier industries and 312,000 jobs in communities where workers spend their wages.
“We need the right regulatory and policy approaches in order to fully realize the potential of shale gas as an engine of manufacturing growth,” says Owen Kean senior director/energy policy at the ACC. “Policymakers must avoid unreasonable restrictions on oil and gas production on public lands, keep oversight of production on private lands in the hands of the states, and expedite the construction and permitting of infrastructure, such as pipelines, needed to move natural gas and [natural gas liquids] to market.”
http://www.chemweek.com/home/top_stories/ACC-US-chemical-capital-projects-linked-to-shale-reach-$164-billion_78348.html
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(ACC Mentioned) Shale-Driven Chemical Investment Keeps Growing
Apr 7, 2016 | Natural Gas Intelligence
By Joe Fisher
About 40% of the U.S. chemical industry investment being spurred by the American shale gas revolution is either completed or under way, with another 55% in the planning phase, according to the American Chemistry Council (ACC).
U.S. shale-driven chemical industry investment planned or in progress has reached $164 billion in total, accounting for 264 projects: new facilities, expansions and factory re-starts, ACC's Owen Kean, senior director of energy policy, said at a Hudson Institute event Wednesday in Washington, DC.
Natural gas and natural gas liquids, particularly ethane, from shales have been a boon to the domestic chemical industry for a while now, providing both feedstock and plant fuel. Just over two years ago, ACC tallied up the shale-related projects and found 148 worth about $100.2 billion (see Shale Daily, Feb. 21, 2014).
"It's a stunning reversal of fortune from just a few years ago, when the chemical industry was losing market share -- and jobs -- to competitors abroad," Kean said Wednesday. "America enjoys a robust supply outlook, expected to last for decades, and a price environment that's the envy of the world. Our country has become the most attractive place in the world to make chemicals, and a historic wave of expansion and investment is under way."
ACC analysis shows that $164 billion in capital spending could lead to $105 billion per year in new chemical industry output and support 738,000 permanent new jobs across the U.S. economy by 2023, including 69,000 new chemical industry jobs, 357,000 jobs in supplier industries and 312,000 jobs in communities where workers spend their wages. Much of the investment is geared toward export markets, which can help improve the U.S. trade balance, ACC said.
The data update the ACC report "Shale Gas, Competitiveness, and New U.S. Chemical Industry Investment -- An Analysis of Announced Projects" that was published in May 2013. It examined nearly 100 chemical and plastics projects totaling $71.7 billion in potential investment announced as of March 2013 (see Shale Daily, May 21, 2013).
It's not just the domestic chemical industry that is benefiting from U.S. shale-produced feedstock. Ethane exports from the United States are making inroads into overseas chemical feedstock markets. For instance, Switzerland-based INEOS Group Ltd. recently said that a long-shuttered manufacturing unit at its ethane cracker in Scotland was back online in advance of U.S. ethane deliveries that are expected to arrive there this fall (see Shale Daily,March 29).
Meanwhile, Enterprise Products Partners LP late last year finished its Aegis ethane pipeline, which supplies Gulf Coast chemical facilities and soon will feed a Gulf Coast export terminal (see Daily GPI, Dec. 31, 2015).
http://www.naturalgasintel.com/articles/105975-shale-driven-chemical-investment-keeps-growing
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(ACC Mentioned) Japanese Chemical Company Opening New Plant in Texas
Apr 7, 2016 | Chem Info
By Meagan Parrish
Kuraray America is planning to open a new chemical plant near Houston later this month.
The company is a branch of Kuraray Co., a Tokyo-based company that specializes in chemicals, fibers, functional resins and other materials.
This latest plant will be the company’s third in the Houston area and will produce 40,000 metric tons of polyvinyl alcohol (PVOH) a year. Kuraray is the world’s largest producer of PVOH. The chemical has a wide variety of applications and is used to manufacture paper, textile, emulsion, adhesives, oil, packaging and PVC. The company cited the growth in the dishwasher detergent pod market as a main driver for the new digs.
The plant will sit on 81 acres of land and employ a total of 94 people including contract personnel. The company has not disclosed the price of the new plant.
Houston is home to about 132 Japanese companies and about one in three are manufacturers.
According to Fuel Fix, George Avdey, president and CEO of Kuraray America, said that cheap natural gas, which produces cheap feedstocks such as ethane and butane, has made the U.S. a more attractive destination for manufacturers.
“It’s certainly made them (Europe and Asia) more competitive, but not near as low as the U.S.,” Avdey said. “The U.S. has the lowest cost for many of the materials.”
Several other major companies such as Dow Chemical Co., BASF, Chevron and LyondellBasell, have multibillion dollar expansion project plans in Texas. All told, the American Chemistry Council has estimated that 104 expansion projects are underway — which could result in 15,800 new jobs (not including construction jobs) in the state by 2023.
http://www.chem.info/news/2016/04/japanese-chemical-company-opening-new-plant-texas
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W.Va. Loosens CO2 Plan Restrictions, Citing Utility Concerns
Apr 7, 2016 | E&E Energywire
By Elizabeth Harball and Emily Holden
West Virginia's governor quietly signed off on a small change last month that might give environmental regulators more leeway when planning for a federal rule to curb carbon emissions at power plants.
The move comes in a state that is spearheading opposition to U.S. EPA's Clean Power Plan, and it appears to show that utilities are urging lawmakers to give the electricity sector more options when trying to meet the requirements of the federal climate rule.
State lawmakers passed a bill last year limiting the Department of Environmental Protection to a narrow set of tools that could be used to comply with President Obama's landmark climate regulation. The law effectively left regulators and utilities with one way to address the rule: through efficiency at the plant.
That left more controversial aspects of the Clean Power Plan, like efforts to conserve residential energy, off the table. Such initiatives are considered "outside the fenceline" of power plants and are at the heart of legal challenges against the federal program.
Utilities and environmental advocates alike have said the law makes it impossible for the state to reach goals set by EPA. The measure signed last month by Gov. Earl Ray Tomblin (D) tweaks the law by changing three words. To some, it appears to loosen the restriction on regulators and utilities, allowing them to find more creative ways to cut carbon.
The measure's sponsor, state Sen. Greg Boso (R), said utilities requested the changes.
"It provides flexibility to the industry," Boso said in an interview, characterizing the modification as a "minor adjustment."
"It does offer flexibility to DEP in the formulation of our plan," he added.
The move comes as the state leads opposition to the Clean Power Plan. West Virginia's attorney general is suing EPA, and many elected officials in the state are highly critical of the rule.
From 'shall' to 'may'
A spokesman for the West Virginia Department of Environmental Protection, Jake Glance, said in an email that the changes to S.B. 691 "have little impact."
Power companies said the revisions did not go far enough to allay their concerns that state law might make it impossible for West Virginia to comply with the regulation, potentially subjecting utilities there to a more stringent federal plan.
West Virginia's environmental groups disagree. They say the revisions could give state regulators and utilities enough space to craft a plan to meet EPA's carbon goals. The Clean Power Plan is currently under a stay enacted by the U.S. Supreme Court.
The tweaks established last month might allow state officials to look for carbon cuts throughout the power system -- like ramping up renewable energy, switching to natural gas or trading carbon credits -- rather than just upgrading coal plants, they say.
"This gives [the West Virginia DEP] some flexibility in designing a plan that gives utilities the option of reducing overall emissions, without having to set specific emissions limits for every generation unit," said Jim Kotcon, Energy Committee chairman for the Sierra Club's West Virginia Chapter.
Others agree, including James Van Nostrand, a law professor at West Virginia University and director of the Center for Energy and Sustainable Development. He noted that three new natural gas-fired plants are expected to come online in the state before the regulation takes effect in 2022 or later, depending on the outcome of court battles.
That means West Virginia could be well along the way to meeting the Clean Power Plan targets, he said. EPA is requiring the state to cut its power plant emissions 36.8 percent below 2012 levels by 2030.
Van Nostrand said environmental advocates have shown modeling results to state regulators that suggest West Virginia might be able to complete its federal compliance by trading carbon credits with other states.
Will small tweaks allow carbon trading?
While other coal-heavy states opposing the Clean Power Plan have wound down their planning work because of the high court's stay, West Virginia's Department of Environmental Protection is preparing a report on the feasibility of the rule. The document is required by state lawmakers, and it's expected to be released by April 20.
DEP officials have said it would be impossible to achieve EPA's 2030 target with the restrictions by state lawmakers in place. (See E&E Publishing's West Virginia Power Plan Hub page for more details.)
Key industry and environmental representatives agree. Some of them have called for a carbon trading program so coal plants could purchase emissions allowances earned by cleaner energy sources (ClimateWire, Jan. 21).
The law signed last year instructed that West Virginia's state plan "shall be on a unit-specific performance basis." The measure enacted last month changed that to say the plan "may be on a unit-specific performance basis."
Tammy Ridout, a spokeswoman for the utility American Electric Power Co. Inc., said the bill "corrected some minor drafting errors."
But Ridout said her company remains concerned by a provision in the overriding legislation from last year that gives the Legislature the final say when approving, or disapproving, the state's plan to comply with the Clean Power Plan.
"Requiring legislative approval of a state implementation plan may impede the state's ability to submit an acceptable plan, and risk subjecting West Virginia to a 'one size fits all' federal plan that may not provide the most cost-effective or feasible compliance strategy," she said.
Dan Genest, a spokesman for Dominion, said, "The legislation does not address our concerns, as adherence to the legislation would result in performance standards that would not meet the standards established by EPA in the Clean Power Plan."
Before the Supreme Court issued its stay of the Clean Power Plan, ClimateWire obtained documents showing that multiple power companies operating in West Virginia -- including AEP, Dominion and FirstEnergy Corp. -- had written letters to the state environment agency noting that the law seemingly prohibits carbon trading as a way to comply with EPA's required emissions cuts.
Asked if the change was made in response to utilities' preference to use carbon trading to comply with the Clean Power Plan, Boso replied, "I don't recall that being part of the discussion ... to say yes or no, I'm not going to venture into those waters."
Legislators put forward the change to the law shortly after the Supreme Court halted implementation of the Clean Power Plan, but Boso said the change was necessary in case the rule is ultimately upheld.
"Yes, they stayed the rule, but the law is still on the books," Boso said. "Until we have a final adjudication of that process, we don't know what the final outcome is going to be."
http://www.eenews.net/energywire/2016/04/07/stories/1060035231
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Upcoming BLM Analysis of First Production Plant Sparks Outcry
Apr 7, 2016 | E&E Energywire
By Scott Streater
The Obama administration this week plans to release the draft analysis of what would be the nation's first oil shale production plant, drawing sharp criticism from environmental groups that say the project would lead to widespread air and water pollution.
At issue is Enefit American Oil's Utility Corridor Project, which proposes to build an estimated 50,000-barrel-per-day oil shale production plant entirely on private lands in Uintah County, southeast of Bonanza, Utah. Enefit American, the U.S. arm of Estonian-owned Eesti Energia AS, owns the mineral rights.
The Bureau of Land Management is scheduled to release a draft environmental impact statement (EIS) that analyzes only the sections of the project that cross federal lands. The company's right-of-way application seeks approval to route sections of water and natural gas supply lines, an oil product line and a 138-kilovolt transmission line across BLM land that's necessary to operate the proposed plant, referred to as the South Project.
"Enefit American Oil is pleased that the Bureau of Land Management will soon release the draft [EIS] that reviews potential effects of a utility corridor across federal land that is required to serve Enefit's planned oil shale project on the company's private property," Enefit American Oil CEO Rikki Hrenko-Browning said in an emailed statement to EnergyWire.
Hrenko-Browning said the company has "worked closely with the BLM and other agencies" since at least 2012 to address issues and concerns associated with the project, "and we will continue to do so."
In total, the company plans to build 19 miles of water supply pipeline, 8 miles of natural gas supply pipeline, 10 miles of oil product line and 29 miles of power lines. The company also wants to upgrade and pave Dragon Road on BLM land.
The draft EIS is also expected to analyze the "potential indirect and cumulative effects associated with the South Project" on nearby federal lands, air quality and wildlife. That analysis will include climate impacts associated with expected emissions of greenhouse gases, said Jeff Fontana, a BLM spokesman in Salt Lake City.
A notice on BLM's National Environmental Policy Act page states that the draft EIS is scheduled to be released Friday and that it will be open for a 60-day public comment period running through June 7.
"We look forward to hearing from members of the public" at scheduled hearings next month, Hrenko-Browning said, "as well as reviewing and responding to written comments received by the BLM."
The proposed project could be a major advancement in a decadeslong effort to develop technologies capable of extracting vast oil shale reserves that proponents say could meet the nation's energy needs for more than a century.
Northwestern Colorado, northeastern Utah and southwestern Wyoming sit atop a 16,000-square-mile section of the Green River Formation, which is believed to contain more than half the world's oil shale reserves. Some officials have estimated that the formation contains as much as 1.5 trillion barrels of recoverable oil shale -- more than three times the total that will ever be produced in the oil fields of Saudi Arabia.
But the process of extracting crude oil from shale rock can be a resource-intensive process, with some government estimates calculating it could take 3 barrels of water for every 1 barrel of oil produced.
Extracting crude oil from shale rock requires heating an organic material in the rock called kerogen to 650 degrees Fahrenheit or more, requiring huge expenditures of energy and water and potentially causing large-scale environmental degradation, critics say.
Thus, the anticipated release of the draft EIS has already sparked an outcry from environmental leaders, who say they fear that the project could emit hundreds of millions of tons of greenhouse gases and consume billions of gallons of water in the already stressed Colorado River Basin.
"President Obama was right when he said in his State of the Union that 'We've got to accelerate the transition away from old, dirtier energy sources,'" said Ted Zukoski, an attorney for Earthjustice based in Denver. "It's time BLM got the memo and stopped wasting taxpayer money subsidizing companies that would foul our atmosphere and endanger our planet and our future."
Rob Dubuc, a senior staff attorney with Boulder, Colo.-based Western Resource Advocates, says oil shale is "the dirtiest fuel on the planet" and authorizing the Enefit project is inviting an "environmental disaster."
"Renewable energy innovations and improvements in energy efficiency make this fuel unnecessary to develop," Dubuc said. "BLM should not advance this project."
The project will be "located within one of the richest areas of the region's oil shale formation, containing a continuous layer of oil shale resource more than 50 feet thick," according to the company.
The company says an estimated 3.5 billion barrels "of oil shale resource lies within Enefit's Utah location."
Enefit says its initial plan for 50,000 barrels per day would be located on only a portion of the 27,000-acre Enefit South property. The rest of the property will be available, at some point, for additional development, according to the company.
Hrenko-Browning said in her statement that the company "has invested in engaging and educating the local community about the project," and that a recent survey indicated that 84 percent of residents in the Uinta Basin support the project.
http://www.eenews.net/energywire/2016/04/07/stories/1060035228
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EPA Sends Second Methane Rule to OMB
Apr 7, 2016 | Politico Pro - Whiteboard
By Elana Schor
EPA yesterday sent a second plank of its four-part plan to regulate methane from the oil and gas industry to the White House budget office for review, indicating the complete plan is on track for release later this spring.
The rule forwarded Wednesday to the Office of Management and Budget, according to its website, seeks to define adjacency for purposes of determining whether particular industry sources of methane are "stationary" and "major," thus subjecting it to regulation.
The American Petroleum Institute is lobbying against the measure as a whole, warning it would amount to "a significant burden to state and federal regulators and operators with little to no benefit," but has expressed a preference for tweaks to EPA's favored option of aggregating all methane sources that are one-quarter of a mile from a "target" methane source.
https://www.politicopro.com/energy/whiteboard
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Agriculture Spews More Methane Than Oil And Gas
Apr 7, 2016 | Environmental Working Group
By Emily Cassidy
The recent Porter Ranch methane spill in Los Angeles County spewed about 66 tons of methane into the air every hour for four months. After the leak was finally sealed in February, scientists estimated it had discharged a total of 106,000 tons of methane into the air, making it the worst such leak in U.S. history.
Reducing methane emissions linked to oil and gas is critical to addressing the global climate crisis and will require major efforts to upgrade natural gas production and storage infrastructure. Leaks from old pipelines and equipment are a major source.
But agriculture is an even bigger source of methane emissions than oil and gas production, according to a paper published last week (April 1) by an international team of scientists. The study found that since 2006, more methane emissions have spewed from agriculture worldwide than from fracking for gas and oil production.
So why are agriculture’s methane emissions exempt from regulation?
Methane is a powerful greenhouse gas, and pound for pound it warms the climate 30 times more than carbon dioxide. Because of this, the Obama Administration announced last year that the Environmental Protection Agency would require the oil and gas industry to cut methane emissions by 40 percent by 2025. And in a blog post this March, EPA Administrator Gina McCarthy said oil and gas were the world’s largest industrial sources of methane.
This new study seriously calls that assertion into question.
The researchers, led by Hinrich Schaefer at the New Zealand National Institute for Water and Atmospheric Research, looked at the chemical signatures, or isotopes, of methane emissions from data collected all around the world. Methane released from fracking has a different isotopic signature than methane from cow burps and rice production, the main sources of agricultural emissions.
The study found that the isotopic signature of the increased methane in the atmosphere since 2006 was consistent with agricultural sources and was likely the result of rapid growth in beef cattle and rice production in Asia.
The emissions spike documented in the study was the equivalent of about 150 Porter Ranch spills in one year!
This finding came as a shock to the researchers, who had assumed oil and gas would be the biggest source since the U.S. began widespread fracking for oil and gas around 2006.
Agriculture accounts for about a third of all greenhouse gas emissions globally and about 10 percent of U.S. emissions. But even though emissions from U.S. agriculture have jumped by 17 percent since 1990, EPA’s methane strategy completely ignores agriculture.
In fact, last year Congress renewed a provision attached to the federal budget thatstrictly forbids the EPA from tracking emissions from livestock operations. It is the only industry to enjoy such an exemption.
There are steps farmers can take to reduce methane, such as better management of livestock manure. Some farmers, like northwest Indiana dairy producer Mike McCloskey of Fair Oaks Farms, are recycling livestock manure and turning it into fuel. And Duke Energy in North Carolina recently announced that it plans to buy waste from nearby livestock operations and turn it into usable natural gas.
Most farmers, however, aren’t given the right incentives to reduce emissions, and their pollution is largely unchecked.
You can’t improve what you don’t measure. Instead of giving industrial agriculture free rein to pollute our air and water, it’s time to include it in our plans to reduce climate-warming emissions.
http://www.ewg.org/agmag/2016/04/agriculture-spews-more-methane-oil-and-gas
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Proposed Decision Rejects SoCalGas NatGas Pipeline Link; Aliso Outage A Factor
Apr 7, 2016 | Natural Gas Intelligence
By Richard Nemec
A California regulatory judge's proposed decision Tuesday rejects longstanding plans for a $600 million large-diameter natural gas transmission pipeline link in Southern California Gas Co.'s (SoCalGas) system, and the closure of SoCalGas' Aliso Canyon underground gas storage facility was cited as a factor.
The proposed decision found that there are more economical, non-utility alternatives to SoCalGas' project.
The California Public Utilities Commission (CPUC) issued the proposed decision from Administrative Law Judge Karl Bemesderfer denying the Los Angeles-based Sempra Energy utility's proposal to upgrade a compressor station and build a 65-mile, 36-inch diameter north-south pipeline link (see Daily GPI, May 7, 2015).
The five-member CPUC could vote on the proposed decision at its May 12 business meeting.
As proposed by the utility, the project would cost $621.3 million, including a new pipeline between the high desert town of Adelanto and the utility's Moreno pressure limiting station, along with rebuilding the Adelanto compressor station.
In part, the linking of northern and southern branches is aimed at increasing the reliability of the SoCalGas system by allowing its Honor Rancho underground storage field on the northern system to help support deliveries on the southern system, according to the CPUC's assessment.
SoCalGas argued that its project was needed to bolster its southern system reliability and alleviate the potential for curtailments of customers due to a mismatches between the demand of large customers and the volume of flowing supplies.
Bemesderfer concluded that there are more cost-effective alternatives to support the utility’s southern natural gas system, a CPUC spokesperson said. Those include separate projects to increase links to the southern system by Transwestern Pipeline, Trans-Canada Corp., and El Paso Natural Gas Co.
Bemesderfer also said that because of the prolonged leak at SoCalGas' Aliso Canyon storage facility (see Daily GPI, Feb. 18), there is little stored gas available on the northern system to support deliveries on the southern system, a situation that significantly reduces the value of a new north-to-south pipeline, particularly in light of lower cost alternatives.
"The proposed decision finds that even without considering the developments at Aliso Canyon, there are multiple alternatives to the north-south pipeline that could reliably deliver additional gas supplies to the southern system at much lower cost than the proposed pipeline," the commission spokesperson said.
For a number of years, California's energy regulatory process has examined various aspects of the Southern California pipeline proposal, which at one point carried a price tag of more than $850 million. It was expected to influence price differentials among the different receipt points on the SoCalGas transmission system.
The utility project offered a second transmission link into the southern end of the state and would involve SoCalGas' affiliated Sempra utility, San Diego Gas and Electric Co. (SDG&E). Currently there is only one link between SoCalGas and SDG&E, which provide the gas utility service to most of the southern half of California.
http://www.naturalgasintel.com/articles/105973-proposed-decision-rejects-socalgas-natgas-pipeline-link-aliso-outage-a-factor
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American LNG Now Sees 2017 Startup of Export Project at Titusville, Florida
Apr 7, 2016 | Platts
By Laura Brooks
American LNG Marketing's planned $250 million onshore LNG export facility at Titusville, Florida, will likely start operations next year, not this month as previously planned, according to a company update posted Wednesday on the US Department of Energy's website.
The DOE last year authorized the facility to export up to 600,000 mt/year of LNG (approximately 30.2 Bcf/year regasified) in ISO containers to countries with which the US has free trade agreements.
The company had said in October it was negotiating potential sales deals and that facility construction was underway, with commercial LNG production expected to begin in April 2016.
But in its latest report to the department, it said "development activities for the Titusville facility are ongoing, with a likely commercial operation date in 2017."
Efforts to get more information from the company were not immediately successful.
Separately, American LNG told the DOE that it is now producing LNG at its other export terminal, the smaller Hialeah facility near Miami, according to an update also posted Wednesday. The first export of LNG occurred February 5, the company said.
The project has approval to export LNG in ISO containers to non-free trade agreement nations. The company plans to export up to 60,000 mt/year (approximately 3.02 Bcf/year of gas). Natural gas for the facility is supplied by Peninsula Energy Services Co. to an affiliate of American LNG.
American LNG has said it inked a March 7 contract with US-based New Fortress Energy for purchase of up to 2.26 Bcf/year. New Fortress last year signed a supply accord with Jamaica Public Service Co. to provide LNG for the power company's 120-MW Bogue power plant at Montego Bay.
American LNG is controlled by Fortress Equity Partners.
http://www.platts.com/latest-news/natural-gas/austin-texas/american-lng-now-sees-2017-startup-of-export-21223159
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Missing Fences, Faulty Alarms at Transmission Provider -- IG
Apr 7, 2016 | E&E Greenwire
By Hannah Hess
One of the 10 largest transmission providers is falling short in physical security, reveals a new report from the Department of Energy's Office of Inspector General.
Investigators visited six sites in two regions of the Western Area Power Administration, a DOE office that markets and transmits electricity over a 17,000-mile transmission system in 15 Central and Western states.
They found perimeter access gates left unlocked and unattended, fences lacking barbed wire barriers, malfunctioning alarm systems, and landscaping "that could permit the concealment of dangerous objects or obstruct the view of the perimeter by security and personnel and cameras," said the report.
A regional official told investigators that cameras installed at three "critical assets" -- defined as electric substations and power system control centers that, if rendered inoperable or damaged, would affect the reliability or operability of the electric system -- were about 12 years old and in need of replacement.
Additionally, the official said that many sites needed "a complete overhaul of their security systems" and that most cameras at the substations had limited coverage of the yard and no nighttime capability.
One region's power system control center did not have a perimeter fence, a problem the IG had identified in a February 2011 risk assessment.
The regional manager said a fence would draw "unneeded attention to an already obscure building" protected by fortified walls, perimeter cameras and landscaping berms, according to the report.
The report also revealed that a November 2013 breach of a critical substation's control building went undetected for more than two days.
A report on the incident noted known problems in control building door alarms that workers had yet to resolve and the lack of security cameras.
Additionally, someone at the site decided that dispatch could ignore alarms "due to the number of false alarms," the new probe found. In several instances, officials failed to repair or replace faulty equipment.
Investigators also found WAPA failed to maintain logs on people holding remote controls or keys to perimeter gates. In one case, a regional official said he could not verify that all the keys were represented on the key log.
Staffers created the log after the keys had been in circulation for several years. Therefore, there was no history of the number of keys purchased or any knowledge of keys taken out of circulation.
"These concerns are not merely theoretical," said Rickey Hass, DOE's acting inspector general, in a memo attached to the report. "Western had experienced instances where its critical assets had been penetrated and, in some cases, Western did not have the physical security capabilities to promptly detect the intrusions."
Hass commended WAPA for establishing an Office of Security and Emergency Management to centralize its security programs. However, he noted that the office did not have the authority to fund and implement recommended measures.
The IG made four recommendations, including that WAPA create a formal funding plan and process to ensure recommended physical security measures were prioritized and funded.
In response, WAPA Administrator Mark Gabriel said the transmission provider was committed to continually improving its security posture and would implement the recommendations.
Gabriel stressed protecting the infrastructure, valued at $4 billion, "is a high priority for Western in maintaining and operating a highly reliable electric transmission system."
"Our commitment to protecting our critical assets is fundamental to the continual improvement of our program and meets the ever-growing demands needed to protect the nation's electrical power grid," Gabriel wrote.
The Obama administration has made securing the grid and critical infrastructure from a growing number of cyberattacks and hackers a top priority. At the beginning of his second term, Obama used his executive power to establish a voluntary program to encourage utilities, telecommunications firms and transportation companies to adopt security standards.
http://www.eenews.net/greenwire/2016/04/07/stories/1060035261
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Enviros Urge EPA to Probe Arsenic in Texas Taps
Apr 7, 2016 | E&E Greenwire
By Tiffany Stecker
A coalition of Texas environmental groups is asking U.S. EPA Administrator Gina McCarthy to look into arsenic levels in the state's public drinking water systems.
The six organizations in a letter call on EPA to issue guidance to states to clearly communicate to communities not to drink water that violates federal standards and to investigate why so many water systems in Texas have struggled to meet the arsenic standard.
The letter comes three weeks after the release of an Environmental Integrity Project study that found 65 public water systems in Texas exceeded the allowable limit for arsenic under the Safe Drinking Water Act for the last two years. Nearly half those have surpassed the arsenic limit for a decade (Greenwire, March 15). High levels of arsenic have been linked to bladder and other cancers.
The report also criticized the Texas Commission on Environmental Quality for the language on public notices. The arsenic warnings issued when a water system is in violation say residents "do not need to use an alternative water supply" in the short term.
"Because of the chronic health risks posed by arsenic, this message is inappropriate when violations persist for years," wrote the groups.
In response to the report, TCEQ said arsenic levels in the United States "do not pose an immediate health threat" to residents. Data on cancers linked to arsenic were pulled from Taiwanese population studies and could not be extrapolated to U.S. communities, they said.
TCEQ has said the agency already follows EPA guidelines in issuing arsenic notifications, sampling water and analyzing samples.
In addition to the Environmental Integrity Project, the letter was signed by representatives of Public Citizen's Texas office, Environment Texas, Sustainable Energy and Economic Development, the Texas Campaign for the Environment, and the Sierra Club's Lone Star Chapter.
http://www.eenews.net/greenwire/2016/04/07/stories/1060035255
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