Preview Newsletter
ACC PM 11/29/2016
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(ACC Mentioned) U.S. Specialty Chemicals Markets Stable for Fourth Quarter
Nov 29, 2016 | Powder & Bulk Solids
The Specialty Chemicals Market Volume Index, a tool created by the American Chemistry Council (ACC), showed that U.S. specialty chemicals market volumes were essentially flat in October. -
(ACC Mentioned) Compounders Revel in Strong 2016
Nov 29, 2016 | Plastics News
By Frank Esposito
Many North American compounders and concentrate makers have enjoyed a sweet 2016, saying that the year has matched or exceeded their expectations so far. -
Trump Adviser Called for Killing White House Science Office
Nov 29, 2016 | E&E Greenwire
By Christa Marshall
A transition aide to President-elect Donald Trump called this year for eliminating the White House Office of Science and Technology Policy, consolidating the national labs and limiting research for "specific constitutional responsibilities." -
EPA Begins Process to Regulate Toxic, Widely Used Chemicals
Nov 29, 2016 | The New York Times
By Associated Press
The Environmental Protection Agency has released a list of toxic chemicals that will be the first reviewed under a recently enacted law that gives regulators increased authority to ban substances shown to endanger human health. -
EPA to Consider Banning Asbestos, Other Chemicals
Nov 29, 2016 | The Hill - E2 Wire
By Timothy Cama
The Environmental Protection Agency (EPA) has prioritized 10 chemicals, including asbestos, that could be banned under a new chemical safety law. -
Off and Running: EPA Identifies First 10 Chemical for Review Under New TSCA
Nov 29, 2016 | Environmental Defense Fund
By Richard Denison
Today, in advance of the December 19, 2016 deadline specified under the new TSCA, EPA has announced the first 10 chemicals to undergo risk evaluations (see list below). -
EWG Statement on EPA’s Top 10 Chemicals
Nov 29, 2016 | Environmental Working Group
Today the Environmental Protection Agency released its list of 10 priority chemicals. Here is a statement from Scott Faber, EWG’s senior vice president for government affairs: -
(ACC Mentioned) National Petrochemical Industrial Company Achieves First with ABS Certification
Nov 29, 2016 | Hydrocarbon Processing
ABS Quality Evaluations, Inc., a subsidiary of ABS Group, has awarded the National Petrochemical Industrial Company of Saudi Arabia the first issued RC 14001:2015 certificate globally. -
After Big Wins Under Obama, What's Next for LNG?
Nov 29, 2016 | E&E Energywire
By Jenny Mandel
This year, the U.S. liquefied natural gas industry launched its first modern export plant and began loading cargoes of domestic shale gas for world delivery. -
Riders, Spending in Play as Congress Returns for Final Stretch
Nov 29, 2016 | E&E Daily
By George Cahlink
Congress returns today for a frenetic, two-week stretch, with lawmakers scrambling to assemble a spending bill that may contain tax and energy provisions. -
As President, Trump Will Be CEO of 'US Energy Incorporated'
Nov 28, 2016 | The Hill - Pundits Blog
By Dan Reicher
On January 20, Donald Trump, the real estate tycoon, is going to become Donald Trump the president. He may not know it but in this transition he will take the reins of the largest energy company in the world. -
Trump: What's Good for Texas and Okla. is Good for America
Nov 29, 2016 | E&E Energywire
By Mike Lee
Men and women marching up to the gold-plated elevators at Trump Tower for meetings with the president-elect would bring an almost evangelical zeal for fossil fuels to Washington. -
N.D. Governor Calls for Immediate Evacuation
Nov 29, 2016 | E&E Energywire
By Ellen M. Gilmer
North Dakota's Republican governor is directing Dakota Access pipeline protesters to vacate their encampment near the oil project's route. -
Protesters File Class Action Alleging Excessive Force
Nov 29, 2016 | E&E Greenwire
By Ellen M. Gilmer
Dakota Access pipeline opponents have filed a class-action lawsuit against law enforcement officers alleging "excessive force" and violations of constitutional rights. -
Clean Energy Future Advancing Two More NatGas-Fired Power Plants in Ohio
Nov 29, 2016 | Natural Gas Intelligence
By Jamison Cocklin
Fluor Corp. has signed a memorandum of understanding with Boston-based Clean Energy Future LLC to provide development services for the company's next natural gas-fired power plants in Ohio. -
'Ransomware' Hackers Find a Critical Victim in Calif.
Nov 29, 2016 | E&E Energywire
By Blake Sobczak
A cyberattack on San Francisco's subway operator offers a stark lesson for other critical infrastructure industries, experts say. -
FRA: Railroads' PTC Progress is 'Uneven'
Nov 29, 2016 | Progressive Railroading
The Federal Railroad Administration's (FRA) latest report on the status of positive train control (PTC) implementation shows "uneven progress" across the country and railroads toward activating the safety technology, the agency announced yesterday. -
Air: States Reject EPA 'Exceptional Events' Rule as Ozone Fix
Nov 29, 2016 | Inside EPA
States suing EPA to scrap its latest ozone national ambient air quality standard (NAAQS) are rejecting EPA's assertion that its recently revised rule giving states regulatory exemptions for excess air emissions released during “exceptional” events such as wildfires will help them attain the NAAQS. -
With ESPS Focus, GOP Senators Hedge on Targeting EPA GHG Authority
Nov 29, 2016 | Inside EPA
By Doug Obey
Senate Republicans, buoyed by President-elect Donald Trump's victory, are vowing to undercut EPA's greenhouse gas (GHG) regulations next year, though they are hedging on whether they will try to rescind EPA's underlying authority to regulate GHGs or instead confine attacks to specific rules or EPA funding. -
Ivanka Trump is Our Best Hope on Climate Change
Nov 28, 2016 | The Hill - Pundits Blog
By Chelsea Henderson
The other night, I came home from a meeting and kicked off my leopard print flats that bear Ivanka Trump’s name. As a single mom, I cooked dinner alone for my two kids while they completed their homework. When it was time to eat, we sat down together at the dining room table. About halfway through his meal, my younger son asked:“What’s Donald Trump going to do for climate change?”
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(ACC Mentioned) U.S. Specialty Chemicals Markets Stable for Fourth Quarter
Nov 29, 2016 | Powder & Bulk Solids
The Specialty Chemicals Market Volume Index, a tool created by the American Chemistry Council (ACC), showed that U.S. specialty chemicals market volumes were essentially flat in October. This follows a revised 0.2 percent gain in September and 0.3 percent gain in August.
All changes in the data are reported on a three-month moving average (3MMA) basis. Of the 28 specialty chemical segments we monitor, nine expanded in October, four were stable and the remaining 15 markets experienced decline. During October, large gains (1.0 percent and over) were noted in mining chemicals.
The overall specialty chemicals volume index was off 2 percent year-over-year (Y/Y) on a 3MMA basis. The index stood at 104 percent of its average 2012 levels. This is equivalent to 7.17 billion pounds (3.25 million metric tons). During 2014, Y/Y comparisons were generally in the 4 percent to 6.8 percent range but since February 2015, they have fallen well below that range as the downturn in the oil and gas sector affected headline volumes. Weakness spread to other segments as well and year-earlier comparisons have been negative since second quarter 2015. Lately, the year-earlier declines have been moderating. On a Y/Y basis, there were gains among 12 market and functional specialty chemical segments.
Specialty chemicals are materials manufactured on the basis of the unique performance or function and provide a wide variety of effects on which many other sectors and end-use products rely. They can be individual molecules or mixtures of molecules, known as formulations. The physical and chemical characteristics of the single molecule or mixtures along with the composition of the mixtures influence the performance end product. Individual market sectors that rely on such products include automobile, aerospace, agriculture, cosmetics and food, among others.
Specialty chemicals differ from commodity chemicals. They may only have one or two uses, while commodities may have multiple or different applications for each chemical. Commodity chemicals make up most of the production volume in the global marketplace, while specialty chemicals make up most of the diversity in commerce at any given time, and are relatively high value with greater market growth rates.
This data is the only timely source of market trends for twenty-eight market and functional specialty chemical segments. Chemistry directly touches over ninety-six percent of all manufactured goods, and trends in these specialty chemical segments provide a detailed view of trends in manufacturing. The data also sheds light on how various consumer end-use markets are performing compared to others in the marketplace.http://www.powderbulksolids.com/news/U-S-Specialty-Chemicals-Markets-Stable-for-Fourth-Quarter-11-29-2016
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(ACC Mentioned) Compounders Revel in Strong 2016
Nov 29, 2016 | Plastics News
By Frank Esposito
Many North American compounders and concentrate makers have enjoyed a sweet 2016, saying that the year has matched or exceeded their expectations so far.
“We set aggressive targets and surpassed them,” said Ryan Howley, president of Techmer PM in Clinton, Tenn. “Our sales are on track to be up more than 5 percent.”
“We’ve had a good year, and it’s probably been good for our competitors as well,” added William Murray, president of Teknor Apex Co. in Pawtucket, R.I. “Our North American sales were reasonably good, and raw materials were favorable for us.”
Sales of commodity resins to compounders in the U.S. and Canada were mixed in the first nine months of 2016. Compounders in that region bought more polypropylene and low density polyethylene in that time period, but lower amounts of high and linear low density PE, PVC and polystyrene, according to the American Chemistry Council. The PP total includes sales to compounders in Mexico.
“The sluggish economy in Europe and North America has presented challenges, but we’ve grown revenue by maintaining our focus on service, collaboration and specialty formulations,” said Craig Nikrant, Specialty Engineered Materials president with PolyOne Corp. in Avon Lake, Ohio.
“We’ve had a good year volume-wise, but our sales total has been impacted by lower prices for resins like polyethylene, polypropylene and nylon,” added Jean Sirois, Europe managing director with RTP Co. in Winona, Minn.
“I think any compounder would tell you they’ve had a good year,” said Mike Rosenthal, executive vice president of The Plastics Group of America in Woonsocket, R.I. “We’re seeing growth of close to 10 percent in some product areas.”
Plastics News recently checked in with these and other executives to measure the health of the regional market for compounds and concentrates.
A lot to digest
Several firms have spent 2016 digesting recent acquisitions. At Americhem Inc. in Cuyahoga Falls, Ohio, that meant integrating Vi-Chem Corp., a PVC and thermoplastic elastomer compounder that Americhem acquired in March.
“The big story for us this year was Vi-Chem,” Americhem President John Deignan said. “We’ve been busy the last six months with integration. The key was the additions of TPE and flexible PVC. That will allow us to add on to our automotive business.
“Acquisition is a constant part of our strategy,” added Deignan, whose firm now has made three deals since 2012. “We’re always looking at strategic acquisitions for four reasons — technology, market entrance, a stronger position or geography.”
PolyOne has benefited from its July acquisition of composites makers Polystrand and Gordon Composites, according to Nikrant.
“We’re confident that composites are one of the fastest growing materials technologies today, and that with this acquisition, we can be at the forefront from a materials science and formulation perspective,” he said.
RTP’s 2015 purchases of Alloy Polymers and Polymer Partners LLC moved the firm into larger volume markets, Sirois said. Integration of both of those firms is going well, he added, and RTP is open to new acquisitions.
Teknor’s March acquisition of German compounder PTS GmbH “has solidified [Teknor’s] position with technology that we now can take to other parts of the world,” Murray said.
Techmer has made three acquisitions in the last decade — most recently buying compounder TP Composites in 2013 — and continues to look for “opportunistic deals,” according to Howley. “The No. 1 thing for acquisitions is the cultures of the two companies and how they mesh,” he said. “That can be hard to evaluate.”
Penn Color Inc. of Doylestown, Pa., is looking to be active in the M&A market in 2017.
“We searched hard for a domestic acquisition in 2016, and had fairly in depth conversations with several companies, but just haven’t found the right fit yet,” market development director Bob Kaminski said.
“We’ll continue to search for the right acquisition to complement our product offerings in 2017,” he added. “But it’s more likely that we’ll pull the trigger on an acquisition outside the U.S., perhaps as early as mid-2017.”
But the overall number of compounding deals appears to be shrinking, according to Phil Karig, managing director with the Mathelin Bay Associates LLC consulting firm in St. Louis. “There’s almost unlimited capital available for acquisitions, but compounding companies, especially smaller ones, haven’t attracted as much interest as other plastics processors recently,” he said.
Karig explained that this slowdown is due in part to financial problems that some compounders had when resin prices dropped faster than recycled feedstocks, and the gap between recycled and virgin compounds narrowed sharply. He added that the market still has too many compounders that rely on commodity resins and commodity products that don’t generate the solid EBITDA margins that attract financial buyers such as private equity companies.
But at the same time, Karig pointed out that “there are bargains to be had,” especially among smaller compounders where the prospective buyer has the marketing or technical expertise to expand the compounder’s market reach and upgrade its product offerings.
Is U.S. GDP OK?
If North American compounding execs are worried about the slow pace of U.S. GDP growth — which is expected to be 2 to 2.5 percent this year and in the near future — they’re not showing it.
“It’s really been a slow growth market globally since 2010,” said Joseph Gingo, CEO of A. Schulman Inc. in Fairlawn, Ohio. “Demographics have played a role. Europe, Japan and the U.S. have slow growth in part because of the age of their populations.
“That’s why we’re reinvesting in new opportunities in Turkey and China,” he added. “We’ll invest selectively in the U.S. and Europe, mainly to improve equipment and operating efficiencies. Those are slower growth markets.”
Karig said that, from a macro-perspective the U.S. has been in a slow growth environment since 2008-2009.
“For the first few years after the Great Recession, plastics processors and their compound suppliers played catch-up to make up for demand destruction in 2008-2009,” he said. “And almost everyone has benefited from growth rates above GDP since then.”
Going forward, Karig added, the question will be what happens when major markets such as automotive and construction start to get “a little long in the tooth.
“The answer is that those compounders that have cost advantages or unique proprietary products, or both, will fare better than those who specialize in products such as commodity black masterbatch,” he said. “And those with defendable positions in higher growth markets such as packaging or medical will also be better able to withstand the pressures of a slowing economy.”
At Penn Color, Kaminski said that 2 percent U.S. economic growth “doesn’t concern us that much.
“It’s been hovering around that number for several years now, but we’ve been fortunate enough to see growth rates that are two to four times larger than that,” he added. “A large part of our business model has always been to find solutions to problems, or to use technology to improve the value of other products on the market. When you can do that, there will always be customers that support those efforts, making us less reliant on the overall strength of the economy.”
When you wish upon a car
The automotive market remains an important one for many American compounders. That sector has come roaring back from recession levels, but U.S. auto builds for 2016 are expected to be flat with 2015 levels of around 17.5 million.
“Our budget for 2016 is that sales will be up 7 to 7.5 percent,” said John Moyer, North American president of Asahi Kasei Plastics North America, a compounder that generates more than 90 percent of its sales from the auto market. Moyer added that Fowlerville, Mich.-based Asahi Kasei is “a little worried going forward.
“Automotive seems to be slowing, but I’m not sure if it’s flattening,” he added. “Financing becomes an issue. I think most people who could get auto loans already did.”
Iichiro Kitsuda, the firm’s sales and marketing executive vice president, said that U.S. auto builds may plateau at close to 18 million before beginning a downward trend.
Americhem’s deal for Vi-Chem has expanded its auto offerings, according to global supply chain director Rod Manfull. “We now can offer materials for hard trim, soft-touch trim and fiber components,” he said. “No other compounder can offer those three.”
“Automotive is interesting, as there continues to be a gradual shift in the centers of gravity from Detroit, Stuttgart and Tokyo to China,” said John Van Hulle, president of color, additives and inks for PolyOne. He added that his firm has a number of facilities in China and South East Asia that can meet automotive demand.
PolyOne’s Nikrant added that although automotive growth has slowed, the firm continues to see interest in lighter weight, structural solutions from customers. “Their goal is range extension, getting the most mileage for the least amount of energy input, without compromising a vehicle’s structural integrity,” he said.
In these areas, PolyOne can provide customers with high strength-to-weight ratio materials, including continuous fiber advanced composites as well as long fiber materials, Nikrant added.
At Mathelin Bay, Karig said that the key thing to watch in the auto market is the continuing shift from passenger cars to more light vehicles such as pickups. “Passenger car sales may slow, but the increasing sales of light trucks will offset some of any lost compound sales for cars,” he added.
Gingo said that Schulman expects the auto market to be steady in 2017, but he pointed out how much expectations have changed over the years. “We used to love a 15 million build number,” he said.
The auto slowdown might be in the future — but for now, Asahi Kasei’s newly opened plant in Alabama is running seven days a week, with two extrusion lines in operation and a third due to start up later this year or in early 2017. The firm also expects to have a production site in Mexico operating by 2018, Moyer said. Mexico currently accounts for 15 percent of the firm’s North American sales, Kitsuda added.
Pack attack
The packaging end market also is creating opportunities for compounders in 2016.
“The packaging market has been very steady,” said Gingo at Schulman. “People always need to eat, and that means they’ll need packaging for food,”
“Packaging has been a great market for us over the years, and we don’t anticipate that changing in 2017,” Penn Color’s Kaminski said. “With the huge range of manufacturing processes and all the different polymers and colors and effects that are desired in the packaging industry, it gives us many opportunities to innovate and create value.”
But the packaging market also has seen some recent changes, according to Van Hulle at PolyOne. “There’s a decline in carbonated soft drinks,” he said. “Brands are shifting to juices, coffee drinks, dairy and other non-carbonated options.”
PolyOne has “the broadest portfolio capable of meeting the needs of this market,” Van Hulle added, with barrier additives for visible and UV light as well as oxygen, and color options in both solid and liquid.
Market mayhem
North American compounders are firing on all cylinders in many other 2016 end markets as well. Techmer has seen a rebound in its agricultural sector from products such as greenhouse and mulch films, Howley said, while the firm’s medical engineering compounds are growing because of new business in gowns, drapes and medical devices.
Teknor Apex is seeing an improvement in sales into building and construction. “It was kind of in the doldrums for about five years, but now you see a lot of cranes on the skyline in Boston,” Murray said. “There’s work in office buildings and in residential and commercial, and that’s increasing demand for our wire and cable materials.”
RTP is enjoying growth across the board, Sirois said, but especially in “top-end engineering resin applications” that need high-heat performance or lightweighting in auto or electronics.
At PolyOne’s Performance Products & Solutions unit, wire and cable and building and construction were the top two growth markets this year, both in residential and industrial sectors, according to President Don Wiseman. The unit’s strong performance there has supported growth in both existing and new applications, he added.
Top growth markets for Penn Color in 2016 have been rigid packaging, construction and automotive, both interior and exterior, Kaminski said. In total, the firm’s 2016 sales should be up 6 to 8 percent vs. 2015.
Americhem also has been advancing on many fronts. The firm has had a good year in building and construction, Americas Commercial Vice President Matt Miklos said, and has expanded its cladding products into decking. In engineering resins, Miklos said that Americhem has seen “a lot of development activity” in high-temperature grades of polycarbonate, nylon and more advanced materials.
At Clariant, Snow said that new business has emerged in food packaging and fiber production. The firm’s flame-retardant materials business “has taken off,” he added, with new demand in industrial packaging, construction and automotive.
“Flame retardants were a little slow to develop for us in the past,” Snow said. “But now non-halogenated grades seem to have found markets that have value.”
Clariant also is seeing growth in small to mid-size lots of compounds and concentrates based on engineering resins. Snow described these lots as ranging from 500 to 5,000 pounds.
“Previously, customers would have bought these amounts from resin producers, but now there’s a void in the market,” he said. “We made some investments in some of our U.S. locations to make these sized lots and they’ve been selling out like hotcakes.”
The Plastics Group has seen new applications for its materials in recreational products, ranging from gun stocks to jet skis to snowmobiles, according to Rosenthal.
Karig said that recycled-content compounds are growing as well. “Whether it’s for cost reasons or to promote ‘green’ goals, we have seen across the board demand for recycled compounds from plastics processors,” he added. “Some of the demand has been driven by regulatory requirements such as the need for more post-consumer recycled content in the California market, but big box retailers such as Wal-Mart and Home Depot are continuing to push for more recycled content.”
New and improved is expected
Regional compounders have to be looking ahead while focusing on existing markets. That’s where new products come in.
Nikrant said that 43 percent of PolyOne’s sales come from formulations that were invented in the last five years. “This really underscores our ability to develop new solutions that overcome the challenges customers present to us,” he added. “It’s made possible by the consistent and ongoing commitment to investment in R&D and innovation.”
In its color business, Van Hulle said that one of the areas PolyOne is focusing on is fiber coloration, using both liquid and solid masterbatches. Last year’s acquisition of Magenta Master Fibers — a specialty color concentrates business owned by BASF SE — is part of the firm’s strategy to focus on fiber colorant solutions and sustainability, he added.
For performance products — including PVC compounds — PolyOne is focused on flexible and rigid vinyl solutions for a connected world, Wiseman said. This includes internet of things-enabled home devices and appliances, LEDs, and electrical and wire and cable solutions for a range of end-use applications.
At Mathelin Bay, Karig said that it’s critical for compounders to continue focusing on developing new products, especially because many processors are getting smarter when it comes to deconstructing the costs of commodity compounds.
“If a compound isn’t particularly unique, and the volume that a particular customer buys is large enough, there’s always the danger that the customer could move from buying a custom compound to having it tolled at a lower margin,” he said. “Or the customer could even backward integrate into making some compounds themselves.”
A fabulous future?
What wonders might 2017 hold for the North American compounding market?
Penn Color has been delayed in starting construction of its new Global Research Center in Hatfield, Pa., but Kaminski said that the firm is still very hopeful to break ground on the 30,000-square-foot expansion before winter sets in. The new building will give Penn Color room to add more applications equipment, physical and analytical testing equipment and a new design center.
Moyer said that for Asahi Kasei, growth might be “a little above GDP” in 2017, but that the firm likely would focus on new applications instead of volume growth.
Clariant will continue to invest in its 10 U.S. plants in 2017, as well as in its plant in Canada. Snow said he’s seeing “a mixed picture” from the firm’s customers, with some excited about growth and others “tightening their belts.”
But, overall, he said he’s positive and upbeat about 2017. “I’m excited about our possibilities in some markets,” he said.
Karig at Mathelin Bay said that one of the big things for compounders to watch in 2017 is the impact of the flood of new PE capacity on compounders specializing in recycled products. “The gap between recycled and virgin PE compounds is likely to narrow sharply and stay there for the next several years,” he said.
“It also wouldn’t be a surprise to see more interest in resin producers expanding their compound sales either internally or through acquisition to achieve more margin than they can on resin sales alone,” Karig added.
At PolyOne, Nikrant said that there are “abundant opportunities” for growth in its main technology focus areas, as well as in top growth markets such as health care, wire & cable and consumer. Van Hulle added that PolyOne “is looking for an improvement over this year, as our new technology and product launches gain traction with customers.”
The Plastics Group is considering the addition of a new production line in 2017, which would allow the firm to add a few employees as well, Rosenthal said.
Kaminski said that Penn Color should be able to achieve 6 to 8 percent sales growth again in 2017. “We have lots of products in the pipeline for 2017 and beyond,” he said. “And we have a strong current customer base.”
http://www.plasticsnews.com/article/20161129/NEWS/161129840/compounders-revel-in-strong-2016
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Trump Adviser Called for Killing White House Science Office
Nov 29, 2016 | E&E Greenwire
By Christa Marshall
A transition aide to President-elect Donald Trump called this year for eliminating the White House Office of Science and Technology Policy, consolidating the national labs and limiting research for "specific constitutional responsibilities."
Trump named James Carafano, a vice president at the Heritage Foundation, last week as a member of the transition landing team for the Department of Homeland Security.
Carafano specialized in national security and foreign policy at Heritage, but he also was the lead author on a Heritage paper this summer outlining science priorities and reforms for the 45th president. Last year, Carafano wrote an opinion piece for Forbes that stated, "Washington is already far prone to claim everything — from climate change, to the national debt, to obesity — as a national security problem."
It's uncertain whether Carafano is articulating his science and energy views to Trump, but he is one of the few people on the landing teams who is on the record about the Office of Science and Technology Policy. The landing teams are designed to work with current agency officials to help develop policies and identify appointees in the next administration.
The Heritage paper, first noted by the American Institute of Physics, urged "rationalizing" billions of dollars spent on federal research and moving jurisdiction over some of the national labs to non-federal entities like states or universities. It also pressed for limiting federal R&D to support only basic science and "clear national objectives."
In one example, Carafano said the Department of Defense should eliminate some of its biofuel research programs because they do not meet clear military objectives. "Despite clear direction from Congress that fuels be cost-competitive, the executive branch has camouflaged the costs of the Navy's biofuel program," he wrote.
The Department of Energy also should not support research and development on things like electric vehicles and renewable power that go beyond the constitutional role of the federal government, he said.
"In recent years, DOE has offered grants, loans, and loan-guarantee programs to a wide array of energy technologies — from solar panels to advanced nuclear and electric vehicles — that already have interest and investment from the private sector," the paper said.
The Department of Homeland Security is involved in energy policy in several ways, including via programs on developing resilience to natural disasters. Last year, the department released a plan with the Department of Energy to protect energy infrastructure ranging from bridges to the grid.
Today, Trump is meeting with Rep. Michael McCaul (R-Texas), chairman of the House Homeland Security Committee — and a possible candidate to be the next Homeland Security secretary. He co-sponsored legislation prohibiting U.S. EPA from implementing greenhouse gas regulations, but also supported renewable tax credits. Yesterday, Trump also met with Frances Townsend, homeland security adviser in the George W. Bush administration.
Carafano's appointment follows criticism from the scientific community about Trump's comments on climate science, and reports he wants to cut NASA's climate research. Many scientists are urging the president-elect to maintain funding for science programs and appoint a science adviser who is a well-respected scientist or engineer.
Yesterday, the leaders of 29 science organizations sent a letter to Trump urging the rapid appointment of a science adviser to address "national challenges" (E&ENews PM, Nov. 28).
In a column in Science this month, Rush Holt, CEO of the American Association for the Advancement of Science, urged Trump to appoint a science adviser who would be fully integrated into senior decisionmaking on a range of issues. The administration should continue policies such as scientific collaboration with other nations and reject ideological assertions that "crowd out evidence," Holt said.
"We hope that President Trump will be more grounded in specific facts than was candidate Trump and pay more attention to the process of careful, open vetting of hypotheses and claims," wrote Holt, a former Democratic congressman from New Jersey.
OSTP — created in 1976 — is critical because it's the one place in the White House the president can go to for information and advice on science and technology matters that affect everything the government does, including climate change, human health, natural disasters, clean air and water, agriculture, and safe food, said Neal Lane, former National Science Foundation director and now a senior fellow in science and technology policy at Rice University.
The office also plays a significant role in reviewing pending regulation. Obama's current OSTP director, John Holdren, made research and spending recommendations that ended up in White House spending plans and has guided major reports such as the National Climate Assessment.
Lane said the scientific community should be concerned about the future of OSTP, even though it is a statutory agency that the next president can't shut down easily.
"But the president would not have to appoint a science adviser or pay any attention to OSTP," said Lane. "That would be a serious mistake. The U.S. government is large and complicated. Most executive departments and agencies rely on scientific information and the latest technologies to carry out their missions and many provide funding for research and development activities."
Earlier this year, Lane co-authored a report from Rice University's Baker Institute for Public Policy calling for the president-elect to appoint a science assistant before Election Day to ensure that funding decisions are not delayed after the inauguration. The report also made a series of recommendations, such as keeping the office in the Eisenhower Executive Office Building for easier access to the White House (Greenwire, Sept. 15).
http://www.eenews.net/greenwire/2016/11/29/stories/1060046343
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EPA Begins Process to Regulate Toxic, Widely Used Chemicals
Nov 29, 2016 | The New York Times
By Associated Press
The Environmental Protection Agency has released a list of toxic chemicals that will be the first reviewed under a recently enacted law that gives regulators increased authority to ban substances shown to endanger human health.
The EPA on Tuesday named 10 chemicals that will be reviewed under an amendment to the Toxic Substances Control Act passed Congress earlier this year with bipartisan support. The list includes such common chemicals as asbestos and trichloroethylene that have for decades been known to be hazardous, yet EPA lacked the legal authority necessary to ban their manufacture or use.
Over the next three years EPA will study whether the listed chemicals present an unreasonable risk to humans and the environment. EPA will then have another two years to mitigate that risk through new regulations.
http://www.nytimes.com/aponline/2016/11/29/us/politics/ap-us-epa-chemical-safety.html?_r=0
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EPA to Consider Banning Asbestos, Other Chemicals
Nov 29, 2016 | The Hill - E2 Wire
By Timothy Cama
The Environmental Protection Agency (EPA) has prioritized 10 chemicals, including asbestos, that could be banned under a new chemical safety law.
The EPA released the list of chemicals Tuesday, the first set of substances that it is reviewing under the Frank R. Lautenberg Chemical Safety for the 21st Century Act, signed into law earlier this year.
Along with asbestos, the list includes the solvent methylene chloride, dry cleaning substance tetrachloroethylene, solvent 1-Bromopropane and others.
The release kicks off a three-year period during which the EPA must study whether the chemicals present unreasonable risks to human health or the environment. That could lead to restrictions or bans on their use.
“Under the new law, we now have the power to require safety reviews of all chemicals in the marketplace” Jim Jones, the EPA’s assistant administrator for chemical safety, said in a statement. “We can ensure the public that we will deliver on the promise to better protect public health and the environment.”
Asbestos was a poster child in recent years for efforts to reform the Toxic Substances Control Act of 1976.
While the substance is widely known as a carcinogen, a federal court blocked the EPA from restricting its use in 1991.
Advocates framed that decision as evidence that the original law was ineffective and toothless. All in all, the EPA was only able to ban a small handful of chemicals under the 1976 act.
Supporters Tuesday welcomed the EPA’s progress in implementing the new law.
“The potentially dangerous chemicals on this list are long overdue for attention from EPA,” the Environmental Defense Fund said in a statement. “This action is a sign that the reformed law, passed with overwhelming bipartisan support, is on the right track.”
http://www.thehill.com/policy/energy-environment/307870-epa-to-consider-banning-10-chemicals
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Off and Running: EPA Identifies First 10 Chemical for Review Under New TSCA
Nov 29, 2016 | Environmental Defense Fund
By Richard Denison
Today, in advance of the December 19, 2016 deadline specified under the new TSCA, EPA has announced the first 10 chemicals to undergo risk evaluations (see list below).
This is a very important early step called for under the Lautenberg Act, which passed Congress with overwhelming bipartisan support. Early action by EPA was seen by stakeholders across the spectrum as essential to begin the process of restoring public and market confidence in our nation’s chemical safety system. So EPA’s issuance of this list in advance of the statutory deadline next month is a welcome sign of timely implementation of the new law.
While not every chemical that everyone may have wanted is included among the first 10, that is because there are many more than 10 chemicals that need far greater scrutiny as to their safety. Indeed, the longer “Work Plan Chemicals” list from which EPA drew the first 10 consists of nearly 100 chemicals that present significant potential risk.
What is most important is that EPA gets started, so that it can complete risk evaluations of the first 10 and move on to the next. EPA now has 6 months to establish the scope of its risk evaluations for these chemicals, identifying the uses, hazards, exposure and vulnerable populations it will evaluate.
The 10 chemicals EPA has identified clearly warrant scrutiny, as there is significant evidence both that they pose hazards to health and the environment and that exposure to them is likely or actually occurring. For three of the 10 chemicals – TCE, methylene chloride, and NMP – EPA previously completed risk assessments for narrow uses of them. Those assessments identified very high risks to workers and consumers from those uses, and EPA has proposed restrictions on them that are pending in OMB review (see here, here and here). EPA’s inclusion of these three chemicals on the first-10 list indicates it intends to examine a broader range of their uses and potential exposures going forward, which is called for under the new law.
Below are the first 10 chemicals and examples of their uses and hazards. We’ll have more information on these chemicals going forward.
For chart of chemicals see link: http://blogs.edf.org/health/2016/11/29/off-and-running-epa-identifies-first-10-chemical-for-review-under-new-tsca/
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EWG Statement on EPA’s Top 10 Chemicals
Nov 29, 2016 | Environmental Working Group
Today the Environmental Protection Agency released its list of 10 priority chemicals. Here is a statement from Scott Faber, EWG’s senior vice president for government affairs:
"Chemicals that are so dangerous that they have been placed on the EPA’s top 10 list have no place being on the market.
Consumers and workers should not have to wait five years or more for the EPA to complete reviews and regulations. Manufacturers should act now to replace these chemicals with safer alternatives.
We applaud the EPA for releasing this list ahead of schedule and for taking other steps to implement the nation’s new chemical safety law. While this is an important milestone, this list is just the first 10 of 1,000 chemicals in need of urgent EPA review.
What's more, many of the hazardous chemicals in consumer products, including cosmetics, are not regulated by the EPA, but instead the Food and Drug Administration. Congress should act swiftly to update the laws regulating these chemicals to ensure that these everyday products are safe."
http://www.ewg.org/testimony-official-correspondence/ewg-statement-epa-s-top-10-chemicals
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(ACC Mentioned) National Petrochemical Industrial Company Achieves First with ABS Certification
Nov 29, 2016 | Hydrocarbon Processing
ABS Quality Evaluations, Inc., a subsidiary of ABS Group, has awarded the National Petrochemical Industrial Company of Saudi Arabia the first issued RC 14001:2015 certificate globally.
The RC14001 Technical Specification (2015 edition) combines elements of the American Chemistry Council's Responsible Care initiative with those of the ISO Environmental Management Systems Standard. This Technical Specification was recently revised in 2015 and enables a company to obtain, through an application and audit process, a certification that its management system conforms to both the ISO 14001 and RC14001 requirements.
"This recognition is a significant achievement for NATPET and further strengthens our commitments and promise for a better future through an improved organization," says Jamal J. Malaikah, President and COO of NATPET. "This requires us to continually increase our competitiveness, assure operations with the least possible impacts on the environment and enhance efficiency and effectiveness in our business to promote the safety and wellbeing of our employees, community and business partners."
"We are pleased to issue the first certificate globally for RC 14001:2015, which is a milestone for both ABS QE and our client," says Dominic Townsend, Vice President of ABS QE.
http://www.hydrocarbonprocessing.com/news/2016/11/national-petrochemical-industrial-company-achieves-first-with-abs-certification
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After Big Wins Under Obama, What's Next for LNG?
Nov 29, 2016 | E&E Energywire
By Jenny Mandel
This year, the U.S. liquefied natural gas industry launched its first modern export plant and began loading cargoes of domestic shale gas for world delivery. In less than a year of operation, the plant has sent cargoes to buyers around the globe and turned the United States into a net exporter of LNG, with four additional export plants yet to come.
But after a year of banner headlines under the Obama administration cued up by more than a decade of building, the LNG industry faces a downturn, with unexpectedly slack global demand holding back prospects for growth.
Weak global economic activity has hurt Asian demand for natural gas, dropping prices below the break-even cost for U.S. producers to reach most of that distant market. And while many industry-watchers expect global demand to grow slowly over the coming decade and catch up to supply by the mid-2020s, in the near term it will be hard for investors to justify committing the tens of billions of dollars that can be needed to complete a new project (EnergyWire, Oct. 5).
Where can the next administration turn to score wins on LNG?
Charlie Riedl, who leads LNG lobbying efforts for the Natural Gas Supply Association, has been working for years on legislation that would speed Energy Department permitting for sales of LNG to buyers not covered by free-trade agreements with the United States.
Language that would place DOE under a deadline for acting on export applications was included in a broader energy bill that separately passed the House and Senate earlier this year, and negotiators are working on passage of a final bill during the lame-duck session.
But the urgency of passage has waned post-election, and it is unclear whether an energy measure will pass and, if so, whether it will include the language on LNG (Greenwire, Nov. 28).
Steven Miles, who leads the LNG practice at law firm Baker Botts LLP, suggested that regardless of congressional action on the permitting question, an Energy secretary appointed by President-elect Donald Trump will likely move quickly on export project authorizations.
During President Obama's first term, DOE took fire for moving slowly on LNG export applications. But the agency changed its approach two years ago to only consider exports from terminals that had already received safety and environmental permits from the Federal Energy Regulatory Commission, a far more costly and higher bar to clear than DOE's smaller role in permitting commerce. That change took the pressure off DOE officials.
Miles said with that change, a project's FERC review and the market-based process of securing financing became the more significant hurdles. "DOE can issue export authorizations more quickly if it wants to do so," he said. "The question is, will it really matter, and will doing so affect LNG exports? That is, will we really export more LNG just because DOE issues more licenses or does it faster?"
Trump's ability to speed up reviews by FERC will be much more limited than his sway over DOE's process. FERC's LNG permitting is based on completion of a National Environmental Policy Act (NEPA) review, a lengthy and carefully specified process that typically takes 18 months or longer to complete and can cost upward of $50 million for an LNG export proposal.
Miles said he could see FERC trying to expedite its end of the approval process. "But that is really limited by the amount of resources that FERC has and the professional staff," Miles added. "I would not anticipate a material change at FERC."
Coal vs. LNG
Industry-watchers see a greater likelihood for change from Trump's broader economic agenda, which includes growing the domestic economy and expanding U.S. manufacturing.
"If successful, that could increase demand for energy and increase prices for all commodities, including LNG," Miles said, adding that such inflationary pressure would be tempered by the current production overhang that has kept natural gas prices low for several years.
Anne-Sophie Corbeau, a natural gas researcher at the King Abdullah Petroleum Studies and Research Center in Riyadh, Saudi Arabia, stressed that domestic demand for natural gas and new policies related to coal and renewables will shape the markets for all power sources, potentially changing the outlook for U.S. LNG exporters.
As long as gas prices remain low, Corbeau said by email, and exports increase over the next few years, it wouldn't make much sense to block gas export projects. But she stressed that there are still market fundamentals that cause U.S. LNG to fall short at today's world prices when factoring in the cost and time to transport LNG from U.S. shores.
As for Trump's promises to help the domestic coal industry, some see LNG exports as a possible avenue to make good. The assault on coal in recent years has been the result of market decisions to shift to natural gas for power production. Late last decade, U.S. gas emerged from a period of scarcity to a shale gas boom that sent prices tumbling. Gas also happened to help electric utilities slash air emissions as regulations tightened up under Obama.
Adding a big new stream of natural gas demand, in the form of an international market for U.S. gas, could push domestic prices up in the power market and help coal compete.
"The coal industry thinks that promoting LNG exports is one of the best things you can do to promote coal," said Baker Botts' Miles.
The great game
In the bigger picture, Trump's geopolitical goals could also shape LNG policy.
The Obama administration has worked with European officials over the past several years to improve the interoperability of the European gas grid, a priority that both sides describe as a way to boost European energy security in the face of a long-standing reliance on Russia for pipeline gas.
That effort has borne fruit with several new European LNG import terminals, including in Poland and Finland, and pipeline compatibility improvements that now allow key lines to be reversed in case of supply disruptions from Russia. U.S. LNG is typically still more expensive than Russian pipeline gas for buyers in the Baltic states and other landlocked parts of Europe, but the prospect of competition with LNG has driven Russia to renegotiate terms on some contracts (ClimateWire, Dec. 22, 2015).
Whether Trump will continue to support Eastern European efforts to buck Russian influence remains to be seen. The president-elect has also raised the specter of trade battles with China, an important Asian LNG buyer.
Just two years ago, most analysts saw the Chinese economy as the emerging dominant force in LNG markets, with a huge industrial thirst for the product. The downgrading of China's growth engine is a key factor in the current global oversupply and raises doubts about its future LNG buying patterns.
Data published by DOE this month reflecting LNG imports and exports through the end of September reflected just one cargo sold to Chinese buyers, from Cheniere Energy Inc.'s new Sabine Pass export facility, though a second such shipment departed the United States for China earlier this month.
Miles, from Baker Botts, said U.S.-China relations could potentially affect the domestic LNG industry. "If you get into a trade war with your major customers, bad things can happen," he said. "Whether the administration will get into a trade war, I don't know."
http://www.eenews.net/energywire/2016/11/29/stories/1060046315
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Riders, Spending in Play as Congress Returns for Final Stretch
Nov 29, 2016 | E&E Daily
By George Cahlink
Congress returns today for a frenetic, two-week stretch, with lawmakers scrambling to assemble a spending bill that may contain tax and energy provisions. They also hope to settle leadership fights, including a battle for the House Energy and Commerce gavel.
"We've got a lot to do, including approving several conference reports and funding the government," Senate Majority Leader Mitch McConnell (R-Ky.) said yesterday.
Lawmakers' main task in the coming days will be to pass another stopgap funding bill, known as a continuing resolution, to avert a government shutdown when current spending authority runs out on Dec. 9.
Congress needs to move a CR because it failed to pass the vast majority of its spending bills, including for U.S. EPA and the Interior and Energy departments.
Neither party sees a government shutdown as a viable option, but there is not yet consensus on Capitol Hill on how long a CR should last.
McConnell said on the floor yesterday that Congress would "work to pass" spending legislation but did not say anything about its duration.
House GOP leaders want the CR to last into the spring. That would allow them to make final spending decisions for the fiscal year that runs through Sept. 30 in concert with the Trump administration.
But Senate Republicans have not yet agreed to that plan. They could wind up siding with Democrats and President Obama in wanting Congress to wrap up fiscal 2017 work by funding the government now through September.
"We are going to fund the government. It's just a question of how long. I'd rather do it for a year if we are going to do it. I want keep next year open" for the new administration's agenda, said Sen. John Thune (R-S.D.), a member of the Senate leadership.
House Appropriations Chairman Hal Rogers (R-Ky.) is writing a CR that would run through March 31. A House aide said that proposal likely won't be released until next week.
"We are in the process now of switching gears from trying to do an omnibus [spending package] to a CR, and therefore anomalies are in play," said Rogers.
Flint
Even though the CR would keep most spending at current levels, agencies often ask for tweaks, called anomalies, to deal with pressing issues.
Interior, for example, wants to free up fresh funds for the presidential inauguration. EPA wants money to begin implementing a new chemical safety law.
Stopgap spending legislation will also likely contain other more significant funding changes and, perhaps, policy provisions. It remains one of the last major pieces of legislation Congress will move before adjourning.
Among the increases in play are hundreds of millions of dollars in emergency money to help Flint, Mich., address its lead water crisis.
Help for Flint is already part of Water Resources Development Act reauthorization bills in both chambers. But lawmakers may not be able to come up with a compromise, particularly because the measures are almost $5 billion apart (see related story).
The administration has also asked for $11.6 billion in emergency spending for various military and counterterrorism operations overseas.
Generally, there is bipartisan support for military and war-related spending on Capitol Hill. But Democrats would likely want concessions to let it ride on the CR.
Energy bill, taxes
Talks continue between House and Senate negotiators over energy reform legislation, which could move in the closing days of the congressional session (Greenwire, Nov. 28).
But if lawmakers fail to reach a deal, it's possible that some of the bill's bipartisan provisions could be instead tacked onto the CR.
McConnell cited the ongoing energy work yesterday. "I would encourage colleagues on both sides to continue working together so that we can complete our work soon," he said.
Year-end funding measures also have a history of carrying tax riders. Democrats have been lobbying for months to extend allowances for renewable energy sources left out of last year's deal.
There's also a push for expanded credits for carbon capture and sequestration (CCS) technology. Bills in both chambers have bipartisan support, including from McConnell and Sen. Sheldon Whitehouse (D-R.I.).
Coal interests and environmentalists have said the existing 45Q credit is too restrictive and is holding back CCS projects (Greenwire, July 15). Last week, Wyoming Gov. Matt Mead (R) sent McConnell a letter urging action.
Miners, sage grouse
Backers of CCS often talk about the technology as a way to make coal viable amid concerns about global warming. The stopgap spending bill may also include legislation to help miners, particularly those at risk of losing United Mine Workers of America retiree benefits.
Last year, McConnell yanked a version of the "Miners Protection Act" from spending legislation, saying he wanted the issue to go through regular order (Greenwire, Nov. 22).
The latest version, S. 3470, passed the Senate Finance Committee earlier this fall. But time is running out for it to move as a stand-alone measure. McConnell's office cited "ongoing discussions."
Separately, lawmakers are also closing in on a bicameral deal on the defense authorization bill. It could settle a long-running dispute over a House proposal to scale back protections for the sage grouse.
The issue has put House Natural Resources Chairman Rob Bishop (R-Utah), who supports the grouse provision, against Senate Armed Services Chairman John McCain (R-Ariz.). If negotiators fail to reach a compromise, some defense language could also ride in the CR.
Leadership, gavel fights
Beyond legislation, this week is key for lawmakers to finish organizing how their leadership structures will look next year.
House Republicans are expected to pick the next chairman of the Energy and Commerce Committee in the coming days. The current chairman, Rep. Fred Upton (R-Mich.), is term limited for the spot.
The race has largely been a contest between committee veterans Reps. Greg Walden (R-Ore.) and John Shimkus (R-Ill.). The committee's former chairman, Joe Barton (R-Texas), is also making a long-shot bid to reclaim the gavel.
Walden has emerged as a slight favorite for the post after his work as the chairman of the House GOP's campaign arm, the National Republican Congressional Committee.
Walden won praise for helping keep party losses below 10 seats. In the weeks leading up to the election, analysts said the GOP could lose as many as 20 seats.
The House Republican Steering Committee is set to interview the Energy and Commerce candidates this week and vote on its recommendation soon after. The entire conference would then vote to ratify the choice.
Meanwhile, Democrats are having their first significant leadership fight in years, with longtime leader Nancy Pelosi (D-Calif.) facing an upstart challenge from Rep. Tim Ryan (D-Ohio).
Pelosi, the first and only woman to serve as speaker, remains a heavy favorite to stay as minority leader. Before the Thanksgiving break, she claimed support from two-thirds of the caucus.
Ryan, 43, is making a case for generational change, arguing that Pelosi and other top leaders, including Reps. Steny Hoyer (D-Md.) and Jim Clyburn (D-S.C.), are all in their mid-70s.
Ryan is also pressing the fact that Democrats have lost more than 60 House seats since 2010. He says the party no longer appeals to white, working-class voters.
More Democratic moves
Pelosi moved to shore up her case last week by proposing changes in the leadership structure to include more junior members.
Pelosi is proposing that the Democratic Policy and Communications Committee have three chairs rather than one. She nominated three junior members for the post: Reps. Matt Cartwright (D-Pa.), Hakeem Jeffries (D-N.Y.) and Cheri Bustos (D-Ill.).
Pelosi has also proposed having the current Democratic Congressional Campaign Committee chairman, Rep. Ben Ray Luján (D-N.M.), return for a second tour of duty. And Kentucky Rep. John Yarmuth would take the top Democratic slot on the Budget Committee.
The Democrats' only other competitive race will be for caucus vice chairman. Rep. Joe Crowley (D-N.Y.) is moving up from that slot to chairman. Current holder Rep. Xavier Becerra (D-Calif.) is term limited.
The vice chair contest is putting two California Democrats, Reps. Barbara Lee and Linda Sanchez, against each another. The winner will be the first woman of color to hold a slot in the House Democratic leadership. Both Lee and Sanchez have League of Conservation Voters lifetime ratings of more than 90 percent.
Observers say the race will test the cloud for the Congressional Black Caucus and Congressional Hispanic Caucus. Lee is a member of the Black Caucus and Sanchez of the Hispanic Caucus.
http://www.eenews.net/eedaily/2016/11/29/stories/1060046312
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As President, Trump Will Be CEO of 'US Energy Incorporated'
Nov 28, 2016 | The Hill - Pundits Blog
By Dan Reicher
On January 20, Donald Trump, the real estate tycoon, is going to become Donald Trump the president.
He may not know it but in this transition he will take the reins of the largest energy company in the world.
The federal government owns energy-rich real estate covering one-quarter of all U.S. lands, hundreds of power plants, tens of thousand of miles of transmission lines, 350,000 buildings and even more vehicles.
Throw in an annual energy bill of $23 billion, by far the largest in the nation, and a President Trump can rightly be called the CEO of U.S. Energy Inc.
There are many opportunities the new CEO has to do good and do well, that could save taxpayer dollars, cut pollution, advance U.S. competitiveness and reduce foreign oil imports. These are described in a recent major report to Secretary of Energy Moniz by a bipartisan federal task force of the Secretary of Energy Advisory Board that I co-chaired with former U.S. Representative and State Department official Ellen Tauscher.
First, President-elect Trump, with his deep real estate experience, ought to understand the major opportunity to invest in energy upgrades of his vast building portfolio and cut the federal energy bill.
Even better, there are well-established private ventures, called Energy Service Companies (ESCOs), which are willing to pay for energy efficiency improvements to public buildings — with private dollars — and pay themselves back out of the savings.
ESCOs have financed $30 billion of U.S. energy infrastructure improvements to date and stand ready to do more under President Trump’s proposed infrastructure plan.
Second, the federal government owns much of the U.S. transmission grid, especially in the western and southeast parts of the country. The nation’s grid is in desperate need of upgrade and expansion to improve system reliability, move vast stocks of wind and solar energy to distant markets and reduce cyber attacks.
The U.S. government, through its federal Power Marketing Administrations (PMAs), has the authority to undertake major improvements to significant portions of the grid, build badly needed power lines, and finance their development with cheap capital. This could be another element of President Trump’s infrastructure plan.
Third, the Departments of Defense and Energy and the General Services Administration have an unrivaled complex of facilities to test emerging energy technologies — efficiency, renewables, storage, carbon capture, nuclear and beyond — that can help meet the needs of the federal government’s vast complex of military bases, office buildings, and power plants.
U.S. companies are eager to increase their use of these energy technology “test beds” and win the federal government’s seal of approval. Modest federal funding of these test beds could help accelerate the commercialization of critical energy technologies developed by U.S. companies and sales at home and around the globe.
Fourth, the private sector is anxious to invest in the development of clean energy projects at federal facilities and on federal lands — but too often faces unwieldy federal power-purchase mechanisms and permitting requirements.
The Department of Defense and some of the PMAs have developed innovative new federal procurement vehicles, while the Department of Interior is working on improved approaches to permitting energy projects on federal lands and addressing wildlife impacts.
Finally, if CEO Trump wants to really cut the $23 billion federal energy bill, and other operational costs of his new building empire, he should trim the federal government’s real estate footprint, which stands at more that 3 billion square feet — more than a thousand times the president-elect’s current holdings. The Obama administration has regularly asked Congress for authority to close unneeded civilian and defense facilities but has regularly been rebuffed.
A White House and Congress of the same political party might stand a better chance of pulling this off — and saving taxpayers lots of money in the process.
Dan Reicher is executive director of Stanford University’s Steyer-Taylor Center for Energy Policy and Finance and formerly Google’s Director of Climate and Energy Initiatives and Assistant Secretary of Energy in the Clinton Administration.
http://thehill.com/blogs/pundits-blog/the-administration/307719-as-president-trump-will-be-ceo-of-us-energy
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Trump: What's Good for Texas and Okla. is Good for America
Nov 29, 2016 | E&E Energywire
By Mike Lee
Men and women marching up to the gold-plated elevators at Trump Tower for meetings with the president-elect would bring an almost evangelical zeal for fossil fuels to Washington.
President-elect Donald Trump's candidates to lead U.S. EPA and the Energy Department are the antithesis of Obama administration leadership at the agencies. They view their home states of Texas and Oklahoma as models of light-handed regulation, and they believe the gushers of boom-time oil money in the region come in spite of Washington's heavy-handedness.
Scott Pruitt (R), the Oklahoma attorney general, and Kathleen Hartnett White, a former head of the Texas Commission on Environmental Quality, were scheduled to meet with Trump yesterday and are considered to be on the shortlist for the job of EPA administrator. To replace Energy Secretary Ernest Moniz, the shortlist includes billionaire Oklahoma oilman Harold Hamm and reportedly Larry Nichols, former head of Oklahoma City-based shale gas giant Devon Energy Corp.
Oklahoma Gov. Mary Fallin (R) and Brooke Rollins, president of the conservative Texas Public Policy Foundation, are also named as possible jobholders in a Trump administration.
What they all have in common is a Texas- and Oklahoma-style adherence to hands-off energy and environmental regulation. Politicians in the GOP-led states argue that they have created jobs and economic growth by giving energy companies a free hand.
But there's a downside. Texas leads the nation in oil spills and rarely takes enforcement action against the companies responsible. Oklahoma has been wracked by earthquakes tied to the oil industry, and the state's slow, defensive response upset its residents. Both states are big emitters of carbon dioxide and other gases linked to global warming, and air pollution in most of Texas' big cities has been a major problem for decades.
Pruitt was elected in Oklahoma with big donations from poultry farmers who wanted to roll back the state's restrictions on dumping waste in rivers. In Texas, White was part of a campaign to prop up a particularly dirty form of coal production.
The attention Trump has given to Texans and Oklahomans suggests the states are, in fact, models under a Trump EPA and DOE.
"Is the rest of the country ready to embrace oil and gas above all other forms of energy and to the detriment of the environment?" said Cory Williams, a Democratic state representative from Stillwater, Okla.
TXU saga
White was an environmental regulator in Texas from 2001 to 2007, when her agency, TCEQ, clashed with public interest groups trying to move the state away from burning coal.
In 2007, TCEQ voted 2-1 with White's support to give the utility giant TXU Corp. an air permit for coal-fired power units at its Oak Grove site in Texas. There were concerns inside her agency and among outside groups about the effect on air quality in Austin and the North Texas region. National groups thought a Texas decision to double down on coal use would be a disaster for the climate.
There had also been public controversies about the agency's handling of pollution cases.
TCEQ under White faced "mounting scrutiny by lawmakers and citizen groups over recent revelations about failures to adequately inspect or regulate industry sites," the Austin American-Statesman reported in 2004, "such as massive quarries, or to collect fines from polluters that are significant enough to deter and hold them accountable."
The Dallas Morning News channeled the views of environmental advocates in a 2007 editorial as it became clear that White would be leaving TCEQ.
"She has been an apologist for polluters, consistently siding with business interests instead of protecting public health," the newspaper wrote. "Ms. White worked to set a low bar as she lobbied for lax ozone standards and pushed through an inadequate anti-pollution plan. She also voted to approve TXU's pollution-intensive Oak Grove coal units, ignoring evidence that emissions from the lignite plant could thwart North Texas' efforts to meet air quality standards."
The TXU saga that played out in 2007 was a defining moment for White. She played a central role as the top environmental regulator in the state, and she was around for a deal that ultimately unraveled as a result of a spectacularly bad bet on the direction of energy in the United States.
TXU had already pledged to build 11 coal-fired power units when environmental groups and Wall Street entered the fray over Texas' energy future and air quality.
That year, as White was wrapping up her tenure at TCEQ, KKR & Co. LP, TPG Capital and Goldman Sachs led a record leveraged buyout of TXU, with an estimated value of $45 billion. Critics warned that the company, whose name became Energy Future Holdings Corp., was taking on too much debt.
The group of Wall Street heavyweights earned praise for a handful of environmental promises, including scrapping eight of the 11 planned coal-fired power units. But a surge in U.S. shale exploration and an accompanying rise in natural gas production were factors in a plunge in gas and electricity prices, souring the numbers behind the leveraged buyout. The company had counted on robust prices as it ran coal and nuclear power plants.
Today, nearly a decade later, the remnants of Energy Future Holdings are grappling with a bankruptcy proceeding that left one of the state's largest sources of power in legal limbo.
Jim Marston, regional director of the Texas office of the Environmental Defense Fund, said White fits "the stereotype of what many people think of Texas government" — in other words, that "we don't really care about the science" and that "regulators here are in the pocket of the regulated."
"I'll get to be at dinners around the country where people make fun of Texas again," Marston said, but added that many people in Texas regulation are "smart and would apply the law. She's just not one of them, sadly."
Mike Nasi, a partner with the law firm Jackson Walker in Texas who has represented electricity and mining interests, said it would make sense to consider someone from TCEQ for EPA. Nasi called White's tenure at TCEQ "impressive" and said the former regulator is "vested in the science behind environmental regulatory issues, much more so than a lot of people who fill that position can be."
White's time at TCEQ included work on state implementation plans, Nasi noted, as well as implementing the Texas Emissions Reduction Plan, the state plan to cut emissions from vehicles and equipment.
White went on to a staff job at the Texas Public Policy Foundation, a nonprofit group that has been an incubator for GOP policy positions in the state. In 2012, The Texas Observer reported, citing leaked documents, that the foundation was funded by a who's who of energy and utility companies, including Koch Industries Inc., Exxon Mobil Corp., and pieces of the former TXU, such as Luminant and Oncor Electric Delivery Co.
Red state, blue state
As Oklahoma's top state lawyer, Pruitt built a career on fighting President Obama's environmental rules. He played a key role in organizing other Republican attorneys general to oppose Obama administration regulations on air pollution from oil and gas drilling. He joined in on lawsuits challenging the Clean Power Plan, saying in all cases that the Obama regulations represented a vast overreach by the federal government.
The New York Times reported in 2014 that Pruitt frequently leaned on oil and gas companies for advice in his anti-regulatory campaign. In some cases, he used briefs and letters drafted by energy companies and their lobbyists to build his case, after changing a few words and putting them on state letterhead (Greenwire, Dec. 8, 2014)
The oil and gas industry has been generous to Pruitt. Energy companies are among his largest sources of campaign contributions, contributing $250,000 out of the $3.1 million he's raised since 2002, according to data compiled by the National Institute on Money in State Politics.
During that time, though, "Scott Pruitt hasn't weighed in on the side of consumers toward the oil and gas industry, with all the damage that's being done on a grand scale by that industry," said Williams, the Oklahoma lawmaker.
The real battles fought by Pruitt and White have been over the separation of state and federal powers to regulate industry.
Ironically, the Texas and Oklahoma officials may wind up reversing themselves if they join the Trump administration, said Paul Nolette, an assistant professor of political science at Marquette University who has studied the tension between states and federal law.
Trump could impose a sweeping national plan to roll back environmental regulations, which is antithetical to the federalist, state-led approach that Pruitt has argued for in Oklahoma.
That could lead to a similar federalist revolt by blue states that want to maintain tough environmental standards, Nolette said. Courts have begun to show more deference to states that challenge the federal government on energy policy, he noted, saying they're due "special solicitude" that gives them standing to bring lawsuits.
"The Californias, New Yorks and Massachusetts are not going to go gently into the good night," he said, "They're going to be fighting."
In the oil and gas patches of Texas and Oklahoma, where production boomed for almost a decade before global oil prices crashed in 2014, the go-it-alone approach to regulation has tended to favor companies before public accountability.
Oklahoma and Texas both take a "compliance-based" approach to most environmental violations, allowing companies to avoid a penalty if they bring their operations in line with the law. As a result, enforcement tends to be lax. Texas oil and gas inspectors cited 61,189 violations and assessed 1,878 penalties, according to a state legislative report issued in April. That's about one penalty for every 32 violations (EnergyWire, Dec. 10, 2014).
Texas experienced 2,733 spills and leaks at oil and gas sites in 2015, up from 2,500 leaks in 2014 — more than any other state, according to an E&E News analysis of state data. Texas is also one of few states to see an increase in spills — the 9 percent year-over-year uptick was in line with an increase in oil production over the same period. (EnergyWire, July 21).
Texas led the country in 2014 in carbon dioxide emissions from fossil fuel consumption, at about 642 million metric tons, according to U.S. Energy Information Administration data. That was more than the next two states — California and Pennsylvania — combined.
Dallas and Houston — the two biggest metropolitan areas in Texas — have high levels of ozone pollution, and El Paso has high levels of soot, according to EPA. San Antonio is likely to slide into nonattainment for ozone soon, in part because of pollution from oil and gas operations.
Texas and Oklahoma have also employed a laissez-faire approach to corporate accountability and regulation in dealing with one of the strangest side effects of the nation's drilling boom: earthquakes linked to oil-field disposal wells. A huge increase in the amount of wastewater injected underground has pressured faults, causing them to slip.
Last year, Oklahoma was shaken by 903 earthquakes of magnitude 3 or greater, more than California. The rate has slowed this year, but the quakes have gotten larger. The state had its biggest recorded quake, magnitude 5.8, on Sept. 3.
Oklahoma started seeing an uptick in earthquakes in the state in 2009. But, under pressure from the oil industry, it took until 2015 for Gov. Fallin and the Oklahoma Geological Survey to firmly acknowledge the link between the shaking and the state's dominant industry.
Fallin has been floated as a potential nominee to lead Trump's Interior Department.
http://www.eenews.net/energywire/2016/11/29/stories/1060046317
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N.D. Governor Calls for Immediate Evacuation
Nov 29, 2016 | E&E Energywire
By Ellen M. Gilmer
North Dakota's Republican governor is directing Dakota Access pipeline protesters to vacate their encampment near the oil project's route.
Gov. Jack Dalrymple last night issued an emergency evacuation order for protesters to immediately leave the Army Corps of Engineers land, known as the Oceti Sakowin camp, where they have gathered for months to demonstrate against the pipeline.
The governor's order comes just days after the Army Corps called for the protesters to leave the camp. The corps noted in a statement that it would not "forcibly remove" demonstrators but warned that anyone present after Dec. 5 would be considered trespassers and subject to prosecution.
The agency is maintaining a "free speech zone" for protesters to assemble just south of the Oceti Sakowin camp (EnergyWire, Nov. 28).
Dalrymple's move builds on the Army Corps' decision, calling for immediate evacuation. The order says North Dakota's harsh winter conditions could "endanger human life" and public safety and could prevent emergency vehicles from reaching the area.
The governor called on state agencies, emergency responders and others to "reduce threats to public safety by not guaranteeing the provision of emergency and other governmental and nongovernmental services in the evacuation area."
"The general public is hereby notified that emergency services probably will not be available under current winter conditions," the order says.
The document also specifies that it remains in effect even if the Army Corps "redefines or removes these prohibited areas."
Many pipeline protesters have vowed to stay put despite the closure of the lands. A video posted on Facebook yesterday showing the camp blanketed in snow had the caption: "Winter is here and we aren't leaving!"
Protestors are calling on the Obama administration to deny the final necessary approval for Dakota Access to complete construction beneath the Missouri River, just north of the Standing Rock Indian Reservation.
Standing Rock Sioux Chairman Dave Archambault II criticized the governor's move as a "menacing action" that only worsens the situation.
"This state executive order is a menacing action meant to cause fear, and is a blatant attempt by the state and local officials to usurp and circumvent federal authority," he said in a statement last night.
http://www.eenews.net/energywire/2016/11/29/stories/1060046313
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Protesters File Class Action Alleging Excessive Force
Nov 29, 2016 | E&E Greenwire
By Ellen M. Gilmer
Dakota Access pipeline opponents have filed a class-action lawsuit against law enforcement officers alleging "excessive force" and violations of constitutional rights.
A group of nine pipeline protesters filed the federal suit yesterday, arguing that officers from the Morton County Sheriff's Department in North Dakota and several other jurisdictions have violated civil rights by using rubber bullets, tear gas and water cannons on peaceful demonstrators. The suit focuses on an altercation that took place last week when law enforcement sprayed fire hoses on more than 200 protesters in subfreezing temperatures as they attempted to move closer to the Dakota Access pipeline route (EnergyWire, Nov. 22).
"This is not the first time defendants attacked water protectors who were praying and peacefully exercising their right to protest under the First Amendment to the U.S. Constitution," the legal challenge says. "Defendants' attack represented the most brutal of an increasingly violent campaign by Defendants to suppress and chill Plaintiffs' constitutionally protected rights."
The protesters are asking the U.S. District Court for the District of North Dakota to certify the case as a class action including all protesters affected by authorities' use of force. They're also requesting a temporary restraining order prohibiting the use of rubber bullets, explosive grenades, chemical agents, and water cannons or hoses for crowd dispersal.
"This Court must decide whether the poorly trained defendant law enforcement agencies used [rubber bullets], freezing water, chemical agents, and explosive grenades to harm the Water Protectors and chill or deter them from their lawful exercise of the rights to free speech, association, and religion in violation of the First Amendment," said the Civil Liberties Defense Center, which is representing the protesters, in a statement last night.
Named in the suit are Morton County Sheriff Kyle Kirchmeier, Mandan Police Chief Jason Ziegler, Stutsman County Sheriff Chad Kaiser and their respective jurisdictions, along with unnamed law enforcement officers present for the altercation with protesters.
Morton County Sheriff's Department representatives did not respond today to a request for comment on the lawsuit but have previously defended their use of force against protesters. They maintain that many protesters are not peaceful and have attacked law enforcement officers with rocks, Molotov cocktails and other objects. Asked at a press conference last week whether officers would again use water hoses to disperse crowds in subfreezing temperatures, Ziegler responded: "It was effective, wasn't it?"
Meanwhile, legal proceedings related to a separate altercation between protesters and law enforcement are moving forward in the same federal court. A protester who allegedly fired a gun during a conflict in late October appeared in court in Bismarck, N.D., yesterday, facing a criminal charge of possession of a firearm by a convicted felon.
According to an affidavit, Red Fawn Fallis, 37, fired two shots from a .38-caliber revolver while resisting arrest. The affidavit says nobody was hit but that Fallis later told officers they were lucky she didn't shoot "all you fuckers." Fallis was convicted of felony "accessory to crime" in 2003 in Colorado.
According to U.S. Attorney Christopher Myers, Fallis was detained after waiving her right to a hearing. The Justice Department's Bureau of Alcohol, Tobacco, Firearms and Explosives is handling the investigation.
http://www.eenews.net/greenwire/2016/11/29/stories/1060046323
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Clean Energy Future Advancing Two More NatGas-Fired Power Plants in Ohio
Nov 29, 2016 | Natural Gas Intelligence
By Jamison Cocklin
Fluor Corp. has signed a memorandum of understanding with Boston-based Clean Energy Future LLC to provide development services for the company's next natural gas-fired power plants in Ohio.
Clean Energy is moving forward with the Trumbull and Oregon Energy Centers in Northeast and Northwest, OH, respectively. The company is already constructing two other gas-fired facilities in Lordstown, OH, and Oregon, OH, where the next plants are planned.
Under the agreement, Fluor said it would provide permitting and development services for the projects. Once they've secured financing and regulatory approval, Fluor said it would provide engineering, construction and commissioning for both plants.
"These two facilities will represent the fourth and fifth such CCGT (combined-cycle gas turbine) projects developed by Clean Energy Future in Ohio, and the sixth and seventh in the PJM Interconnection region," said Clean Energy Future President Bill Siderewicz. "Fluor will be working in partnership with our other team members including Siemens Energy, Siemens Financial Services and BNP Paribas."
Irving, TX-based Fluor is a global engineering and construction company that has built 50,000 MW of gas-fired power over the last 20 years. Construction of the 940 MW Trumbull Energy Center and the 955 MW Oregon Energy Center is expected to begin in 2018, with both projects slated for operations in 2020.
Clean Energy also led development of the 869 MW Oregon Clean Energy facility that's currently under construction in Northwest Ohio. That facility is expected to enter service next year. It also spearheaded the 940 MW Lordstown Energy Center in Northeast Ohio, which broke ground over the summer and is expected to be operational by 2018. Both of those facilities will cost more than $800 million to build.
A rush is on to replace aging coal- and gas-fired power in the Appalachian Basin, where dozens of facilities have been approved or proposed in recent years in Ohio, Pennsylvania and West Virginia.
http://www.naturalgasintel.com/articles/108562-clean-energy-future-advancing-two-more-natgas-fired-power-plants-in-ohio
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'Ransomware' Hackers Find a Critical Victim in Calif.
Nov 29, 2016 | E&E Energywire
By Blake Sobczak
A cyberattack on San Francisco's subway operator offers a stark lesson for other critical infrastructure industries, experts say.
The San Francisco Municipal Transportation Agency confirmed in a statement Sunday that its computer networks, including email, had been hit with "ransomware," malicious code that encrypts computer files and demands huge sums of money to untangle them.
SFMTA said in a brief online statement that transit service "was unaffected and there were no impacts to the same operation of buses" or the city's light-rail system, Muni Metro. SFMTA spokesman Paul Rose said the attack affected about 900 workstations. As a precaution, he said, the agency and its contractor temporarily offered free rides to rail passengers to protect them from interacting with potentially infected systems.
The cyberattack comes on the heels of several ransomware incidents in hospitals, emergency service providers and at least one power utility.
"These days, with ransomware, we're having much more disruption in corporate and government environments," said Dewan Chowdhury, founder and CEO of industrial control systems cybersecurity company MalCrawler, who has worked with many major energy companies.
Chowdhury said he has not seen evidence that key industries, such as the electric power or transportation sectors, are being specifically targeted by ransomware hackers. But high-profile hacking cases have still shifted corporate attitudes toward cybersecurity, he noted.
"No one's going to sit there and pretend like they're never going to get hacked," he said. "You're going to get hit — but how do you resolve it?"
Victims of ransomware are given the chance to pay a fixed dollar amount — typically using the anonymous cryptocurrency Bitcoin — to get the digital key needed to unlock their files.
The Lansing Board of Water & Light, a municipal utility in Michigan, paid its hackers a $25,000 ransom to get its computer files back following an April infection. LBWL General Manager Dick Peffley said in a statement last month that the ransom was a "distasteful and disgusting but sadly necessary" concession to restore the company's communications systems.
The FBI recommends against paying hackers a ransom, but Chowdhury pointed out that this can be a hard pill to swallow, particularly for companies with critical data or operations to protect.
"The whole concept of 'We don't negotiate with terrorists' — that theory makes complete sense," he said. "But when you're actually held hostage, that theory goes down the toilet for a lot of these folks."
It's unclear how much money hackers sought from San Francisco transit authorities last week. Rose said that the agency is still working out how much the episode will cost overall. He said SFMTA is cooperating with the FBI to investigate, adding that his organization has not contacted the attacker.
"We would never consider paying the ransom," he said, noting that "we have an IT team that can restore the systems within the agency."
Cybersecurity experts, including Chowdhury, recommend keeping robust data backups and limiting key computer systems' Internet access to help curb hackers' impact.
http://www.eenews.net/energywire/2016/11/29/stories/1060046316
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FRA: Railroads' PTC Progress is 'Uneven'
Nov 29, 2016 | Progressive Railroading
The Federal Railroad Administration's (FRA) latest report on the status of positive train control (PTC) implementation shows "uneven progress" across the country and railroads toward activating the safety technology, the agency announced yesterday.
PTC is now active on 17 percent of freight railroad tracks as of third-quarter 2016, up from 9 percent in the second quarter. Passenger railroads increased their percentage to 23 percent in the third quarter, up from 22 percent in the second quarter, according to an FRA press release.
The most measurable progress made by passenger railroads has been predominantly on the West Coast, while East Coast railroads — other than Amtrak and the Southeastern Pennsylvania Transportation Authority (SEPTA) — have been relatively stagnant, FRA officials said.
The third-quarter status update includes railroad-by-railroad quarterly data as of Sept. 30. The data include track segments completed, locomotives equipped, employees trained, radio towers installed and route miles in PTC operation.
Railroads have until Dec. 31, 2018 to implement PTC. Extensions are available under some circumstances until 2020's end.
"In order to achieve full PTC implementation, everyone has to do their part — railroads must make implementation a priority, and Congress must make funding for commuter railroads a priority," said FRA Administrator Sarah Feinberg.
The FRA provided this link to view each railroad's PTC status.
In response to the FRA's latest status update, the Association of American Railroads (AAR) issued a statement noting that the report underscores the complexities of developing, installing and testing PTC technology. Implementing PTC on 60,000 miles of freight-rail track remains a priority, with Class Is "remaining on track at having PTC fully installed by the deadline," said AAR's statement.
"To this point, the freight-rail industry has invested more than $7.1 billion on this complex technology, spending $100 million a month on continuous development, testing and installation, with final costs expected to reach about $10.6 billion by the time it is fully operational," AAR said.http://www.progressiverailroading.com/ptc/news/FRA-Railroads-PTC-progress-is-uneven--50152
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Air: States Reject EPA 'Exceptional Events' Rule as Ozone Fix
Nov 29, 2016 | Inside EPA
States suing EPA to scrap its latest ozone national ambient air quality standard (NAAQS) are rejecting EPA's assertion that its recently revised rule giving states regulatory exemptions for excess air emissions released during “exceptional” events such as wildfires will help them attain the NAAQS.
In a Nov. 28 letter to the U.S. Court of Appeals for the District of Columbia Circuit in Murray Energy Corporation v. EPA, the Arizona Attorney General's Office on behalf of state petitioners opposed to EPA's stricter ozone NAAQS faults the agency's claims that it outlined in a prior Nov. 17 letter to the court.
EPA said its final rule issued Oct. 3 modifying the exceptional events policy will help western states with high levels of background ozone, which is naturally-occurring or foreign sourced, to comply with the 70 ppb standard. The NAAQS, set at 70 parts per billion (ppb), is stricter than the prior standard of 75 ppb that EPA issued in 2008.
State petitioners maintain that the 70 ppb NAAQS is unachievable because of high background, which local regulators cannot control. While EPA says its revised exceptional events policy makes it easier for states to win exemptions, state petitioners say in their new letter, “the new rule is no substitute for an achievable NAAQS. It continues to apply in only the narrowest of circumstances and to place the burden of demonstrating an exceptional event on the States, which is an inversion of the Agency’s burden to promulgate a lawful rule.”
The petitioners note that under EPA's policy, routine international anthropogenic emissions are not considered exceptional events. “Neither are 'biogenic VOC [volatile organic compound] emissions.' These limitations are the centerpiece of the State Petitioners’ objection to the manner in which EPA now relies on relief measures to downplay issues of achievability. The new rule does nothing to blunt that objection.”
The states further complain that the reworked exceptional events rule “perpetuates an onerous petition process which requires thousands of hours of preparation with little chance of success and subtly shifts the burden to the States to show a 'clear causal relationship' between an exceptional event and a given [NAAQS] exceedance.”
http://insideepa.com/the-daily-feed
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With ESPS Focus, GOP Senators Hedge on Targeting EPA GHG Authority
Nov 29, 2016 | Inside EPA
By Doug Obey
Senate Republicans, buoyed by President-elect Donald Trump's victory, are vowing to undercut EPA's greenhouse gas (GHG) regulations next year, though they are hedging on whether they will try to rescind EPA's underlying authority to regulate GHGs or instead confine attacks to specific rules or EPA funding.
The comments appear to largely echo prior Republican talking points opposing EPA's signature power plant GHG rules -- in part because lawmakers say they have not yet settled on a strategy for attacking EPA in the aftermath of Trump's surprise win.
But some of the statements may hint at reluctance by Republican lawmakers to be seen as opposing the Clean Air Act or renewables, even though they are willing to criticize specific regulations as an economic burden.
“Everything is on the table, but the specific thing you asked about I really don't know,” said Sen. Shelley Moore Capito (R-WV), in response to a recent query from Inside EPA on whether EPA's Capitol Hill foes might try to revoke the agency's authority to regulate GHGs in the air act.
“We haven't really . . . mapped our strategy,” Capito added, suggesting lawmakers might instead choose to focus initially on targeting specific EPA regulations.
“I think we will certainly look at regulatory issues first,” she said, citing EPA's power plant existing source performance standards (ESPS) and a companion rule for new plants, as well as water rules affecting the coal sector, as ripe for Hill scrutiny next year.
“This president's regulatory environment that he has created, we will go after those first,” she said, adding that lawmakers are also likely to target funding for implementing the Paris climate deal.
Capito has previously backed legislation to block the ESPS, and her statements are broadly consistent with other senators who predict attacks on EPA will only grow next year, even as they hedge on specific strategies.
To the extent that the Republicans are signaling early reluctance for aggressive climate actions, it could reflect their thin majority in the chamber and the potential risk that such efforts could alienate Democrats and spark a sharp backlash in future elections.
For example, Senate Majority Leader Mitch McConnell (R-KY) in a Nov. 9 press conference cautioned against legislative overreach.
“We've been given a temporary lease on power, if you will. And I think we need to use it responsibly. I think what the American people are looking for is results. And to get results in the Senate, as all of you know, it requires some Democratic participation and cooperation,” he said, adding, “We are going to be looking for bipartisan support. And I think overreaching after an election is, generally speaking, a mistake."
'Way Overboard'
Sen. John Barrasso (R-WY), expected to chair the Senate Environment & Public Works (EPW) Committee next year, told reporters Nov. 16 that the executive branch went “way overboard” under President Obama, and he reiterated his intention to block a newly finalized Bureau of Land Management oil and gas methane rule using the Congressional Review Act (CRA).
But Barrasso in an interview with Inside EPA declined to elaborate on specific plans for going after EPA or its GHG rules, and demurred on whether lawmakers would target EPA's underlying GHG regulatory authority under the Clean Air Act. “We still have things we need to finish off this year,” Barrasso said.
Sen. James Inhofe (R-OK), the outgoing EPW chairman, in an interview likewise predicted extensive use of the CRA next year to target recently final rules. He added that the ESPS, no longer subject to the CRA, is also a likely target for Senate Republicans. “We can change it. There's any number of ways to do that.”
Inhofe deferred to Barrasso on whether EPA's GHG authority would be in the cross hairs. “We agree on everything. . . . But we haven't really even started talking about that,” said Inhofe, calling the topic of “correcting the damage” that has been done in the Obama administration “the next thing on our list.”
Sen. Lamar Alexander (R-TN), a senior lawmaker who accepts climate science but opposes the ESPS, said in response to a similar query that he would not rule out a direct attack on EPA's GHG regulatory authority in 2017. But he said rescinding EPA's power over GHGs “would be one way to approach it. . . . let's wait and see. We now have a Republican president. Let's see what he proposes and let's consider that.”
And Sen. Cory Gardner (R-CO), who has voted for legislation to block the ESPS, told Inside EPA Nov. 16 that he has examined the ESPS issue far more closely than the debate over EPA's underlying GHG regulatory authority, as recognized by the Supreme Court in the 2007 case Massachusetts v. EPA.
“I haven't looked as much at [proposals to block EPA's GHG authority] or the Supreme Court case that led to that interpretation as I have the specific regulations like the” ESPS, he said.
Gardner, one of a handful of Republican senators from states that voted for Hillary Clinton, also sought to highlight his support for the environment. “We have an obligation to protect the environment to make sure that our children and grandchildren have a cleaner environment that they inherited from us,” he said, adding that “we ought to do so in a way that doesn't destroy the economy.”
Sen. Susan Collins (R-ME), the only Republican senator in next year's Congress who backs the ESPS, said “I have no idea, I really don't,” to a query about what will happen to EPA's GHG authority next year.
Democratic Resistance
Republican talk of going after EPA next year has Democrats vowing to resist, albeit without the help of a friendly White House.
Sen. Richard Blumenthal (D-CT), whose state has aggressively promoted clean energy and GHG controls, expressed hope that the Senate would not get bogged down in EPA fights in 2017. But he stressed that Democrats would oppose, and presumably filibuster, attempts to weaken the agency.
“We will fight any effort to undercut or undermine the progress that has been made,” Blumenthal said.
Meanwhile, observers have held out hope that lawmakers might embrace a lame duck tax credit package that would extend several “orphan” tax credits for renewable power categories while also expanding tax credits for carbon capture and sequestration (CCS). A broad coalition of industry and environmentalists also reiterated its support for the CCS incentives in a Nov. 16 letter to Finance Committee leaders.
Outgoing Senate Minority Leader Harry Reid (D-NV) Nov. 16 cited the “orphan” tax credits as a priority for the next several weeks.
But coal state lawmakers reduced expectations for moving the CCS credit in the lame duck session. “I'm sure it is going to be discussed,” Capito said, warning that a budget bill was seen as a vehicle for the tax credits this year but is likely to be “pretty slimmed down.”
Barrasso, in a similar vein, told reporters Nov. 16 that the last-minute legislative agenda is crowded with unrelated items. “There is just not that much time left in the lame duck to do many things, and we need to fund the government,” he said.
http://insideepa.com/daily-news/esps-focus-gop-senators-hedge-targeting-epa-ghg-authority
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Ivanka Trump is Our Best Hope on Climate Change
Nov 28, 2016 | The Hill - Pundits Blog
By Chelsea Henderson
The other night, I came home from a meeting and kicked off my leopard print flats that bear Ivanka Trump’s name. As a single mom, I cooked dinner alone for my two kids while they completed their homework. When it was time to eat, we sat down together at the dining room table.
About halfway through his meal, my younger son asked:“What’s Donald Trump going to do for climate change?”
Before I could answer, my older son, a freshman in high school, blurted out: “He thinks it’s a hoax. He’s going to cancel the Paris agreement and let industry pollute.”
My younger son responded: “So he’s a bad guy.”
This exchange is not unlike many we have at the dinner table. My teenager is finding his political footing as he seeks out his trusted news sources and practices critical thinking. My tween still regards the world as comprised of superheroes and villains.
I wasn’t sure how to thoughtfully respond to them about President-elect Trump’s climate change position in a way that leaves them hopeful. What policies will he support to ensure the U.S. remains a leader in the global effort to address climate change, the biggest environmental crisis in generations? I wondered, what does Ivanka plan to say to her own young kids, grandkids of the 45th president, on this matter?
Maybe someone needs to ask. Mother to mother.
During her father’s campaign, Ivanka portrayed herself as a voice of reason, a connection to working mothers, a millennial who understands the concerns of the rising leadership generation. While it remains unclear whether she will assume an official advisory role in the White House, she undeniably has the ear of the next president. And an opportunity to bring him to reason on an issue about which other mothers, other millennials, other children care deeply.
Mother to mother, I’m asking Ivanka to lean in on climate change and encourage her father to take advantage of his access to the best scientific minds in the world. Ask him to sit through a briefing, several briefings, with leaders of the National Aeronautics and Space Administration (NASA) and the National Oceanic and Atmospheric Association (NOAA).
Ask him to reach out to evangelical climate scientist Katharine Hayhoe, who marries science with faith. Ask him to bring in economists to discuss the benefits of adopting a revenue neutral, border adjustable carbon tax. Ask him to drop the campaign rhetoric and use the office he fought for and won not to dismantle progress, but to build a 21st century America founded on clean energy and innovation.
Dismissing climate change might have earned the President-elect applause at campaign rallies, but to persist with this narrative will make the United States not only the laughing stock of the world, but will hurt him with millennials, one demographic he failed to attract on November 8th. Already the largest voting block in U.S. history, they consider climate action a values issue.
If Trump wants to ease millennials’ concerns in his efforts to unite a divided nation, he might want to consider reversing course on some early climate proclamations. Don’t let paid climate change denier Myron Ebell mold (or lead) the Environmental Protection Agency. Don’t pull the U.S. out of the Paris Agreement, or worse, the United Nations Framework Convention on Climate Change. Do find an alternative to the Clean Power Plan of 2015.
Unfortunately, Trump filled his transition team with a greatest hits list of climate deniers who are unlikely to present him a balanced viewpoint. Only Ivanka can undo their damage and encourage her father to take a measured approach to climate change. Only Ivanka can urge her father to follow in the footsteps of Presidents Richard Nixon, Gerald Ford, Ronald Reagan and George H.W. Bush. Only Ivanka can help him appeal to the generation that otherwise is going to be responsible for dealing with our inaction. Only Ivanka can lead her father to a satisfactory policy answer for other mothers struggling with what to say to their kids.
The potential for both of them to carve out a climate legacy is huge.
Chelsea Henderson is is a senior advisor to RepublicEn.org and handled environmental policy for three Republican U.S. Senators.
http://thehill.com/blogs/pundits-blog/energy-environment/307696-ivanka-trump-is-our-best-hope-on-climate-change
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