Preview Newsletter
ACC AM 1/12/17
-
(ACC Blog) Stronger, Safer, Sleeker: Modern Plastics Are Changing How We Get Around
Jan 11, 2017 | American Chemistry Matters
By Steve Russell
Plastics Make it Possible® visited the recent Los Angeles Auto Show to check out the latest innovations in the automotive world. -
(ACC Mentioned) Reading The Trump Tea Leaves
Jan 11, 2017 | Composites World
By Jeff Sloan
I am in Washington, DC, this week attending the ACMA Composites Executive Conference, where, not surprisingly, there was much speculation among the speakers about what President-elect Donald Trump and the new US Congress has in store for the United States. -
(ACC Mentioned) US PVC Set For Margin Gains In 2017, Report Says
Jan 11, 2017 | ICIS
By Bill Bowen
Rising demand and a lack of new production capacity over the next three or four years portends stronger pricing and margin strength for US and Asia producers of polyvinyl chloride (PVC). -
(ACC Mentioned) Crude Oil Slides As Iraq's Export Touches Record Highs
Jan 12, 2017 | Metal.com News
Oil prices were down 2.5% on Monday as signs that growing US production and record Iraqi exports raised concerns. -
House Passes Rule-Busting Bundle; CRA Up Next
Jan 12, 2017 | E&E Daily
By Arianna Skibell
The House yesterday passed a GOP regulatory reform package aimed at "abusive" rules and now has its sights set on voiding other rules via the Congressional Review Act. -
Chamber Sees Need For 'Compromise' To Advance Regulatory Reform Bills
Jan 11, 2017 | Inside EPA
By David LaRoss
The head of the U.S. Chamber of Commerce is downplaying prospects for sweeping regulatory efforts Republicans are pushing that would impose new limits on EPA's rulemaking powers, saying the bills will require “compromise” to advance otherwise they will fail to move quickly into law despite support from President-elect Donald Trump. -
Pruitt EPA Confirmation Hearing Scheduled For 18 January
Jan 12, 2017 | Chemical Watch
The confirmation hearing for Scott Pruitt – President-Elect Donald Trump's intended nomination as EPA administrator – has been scheduled for 18 January. -
(ACC Mentioned) EPA Sets Second Solvent-Chemical Restriction Rule
Jan 12, 2017 | BNA Daily Environment Report
By Pat Rizzuto
A proposed EPA rule to restrict vapor degreasing uses of the solvent called trichloroethylene was issued on Jan. 11 after being approved by the White House regulatory review office, setting the stage for debates over the science that underpins it. -
Some Nanoscale Chemical Makers, Users Must Give EPA Data
Jan 12, 2017 | BNA Daily Environment Report
By Pat Rizzuto
Companies that make, process or import certain nanoscale chemicals are required to submit information to the Environmental Protection Agency under a final rule the agency released Jan. 11. -
At Last: EPA Promulgates Nanomaterial Reporting Rule
Jan 11, 2017 | Environmental Defense Fund
By Richard Denison
Today, EPA issued its long-awaited rule to gather risk-relevant information on nanoscale materials. The new rule will finally allow EPA to obtain basic data on use, exposure, and hazards from those that manufacture or process these materials, which has long been recognized by experts as essential to understand and manage their potential risks. -
EPA Proposes Banning Additional Uses Of TCE
Jan 11, 2017 | Safer Chemicals, Healthy Families.
Today, under the newly reformed Toxics Substance Control Act (TSCA), the Environmental Protection Agency (EPA) proposed banning certain uses of the toxic chemical trichloroethylene (TCE) due to health risks when used as a vapor degreaser. -
Seventh Generation to Lobby for Chemical Ingredient Disclosure
Jan 12, 2017 | BNA Daily Environment Report
By Pat Rizzuto
Seventh Generation, Inc. plans to lobby state legislators and the U.S. Congress in favor of legislation that would require companies to disclose chemicals in the products they make, the company's director of sustainability said Jan. 10. -
EU Enforcement Project To Target Quality Of SDSs
Jan 11, 2017 | Chemical Watch
Inspectors in EU member states will focus on the quality of safety data sheets (SDSs), which contain guidelines on the safe use of hazardous substances, as they begin work on the fifth REACH enforcement project (Ref-5) this month. -
Citizens’ Initiative Aimed At Banning Glyphosate Gets The Go-Ahead
Jan 11, 2017 | EurActiv
By Cécile Barbière
Brussels has agreed to the launch of a European Citizens’ Initiative on banning glyphosate in the EU. EurActiv France reports. -
Bishop, Murkowski Look To Dust Off Energy Bill
Jan 12, 2017 | E&E Daily
By Geof Koss
Key House and Senate lawmakers said yesterday they may look to revive components of last year's unfinished energy bill in the coming months. -
Moniz On Scientific Integrity, Rick Perry And What's Next
Jan 12, 2017 | E&E News PM
By Christa Marshall
Not handing over the names of federal climate scientists to the Trump transition team was "absolutely the right thing to do," Energy Secretary Ernest Moniz said today. -
Trump's Energy Nominee Cuts Ties With Dakota Access Developer
Jan 12, 2017 | BNA Daily Environment Report
By Jennifer A. Dlouhy and Ari Natter
Former Texas Gov. Rick Perry (R) is cutting ties with two companies that have stakes in the disputed Dakota Access Pipeline as he prepares to serve as President-elect Donald Trump's Energy secretary. -
U.S. Shifts LNG Exports To Asia As Arb Opens Up
Jan 11, 2017 | Reuters
By Scott DiSavino
The biggest divergence between U.S. and Asian gas prices in a year has created an opportunity for tankers delivering liquefied natural gas, with most departures from a key Louisiana terminal in the last month-and-a-half heading toward East Asia, shipping data released on Wednesday show. -
Senators Go 'Retro' In Bid To Repel Cyberattacks
Jan 12, 2017 | E&E Daily
By Cecelia Smith-Schoenwalder
Members of the Senate Intelligence Committee reintroduced legislation Tuesday aimed at protecting the power grid from cyberattacks by letting people, not computers, do the heavy lifting. -
Energy Department Urges NatGas Pipeline Cybersecurity Review
Jan 11, 2017 | Natural Gas Intelligence
By Charlie Passut
With natural gas playing an increasing role in power generation, the Department of Energy (DOE) is recommending that it coordinate with other government agencies to determine whether additional cybersecurity protections for the nation's natural gas pipeline network are warranted. -
Chao's Hearing A Cozy Chat Among Friends
Jan 12, 2017 | E&E Daily
By Camille von Kaenel
Elaine Chao, President-elect Donald Trump's pick for Transportation secretary, has worked and socialized in Washington, D.C., for decades, and it shows -
Climate Pact Survival Hinges on ‘America First' Vow, Tillerson Says
Jan 12, 2017 | BNA Daily Environment Report
By Dean Scott
President-elect Donald Trump's pick for top U.S. diplomat, Rex Tillerson, said Jan. 11 the U.S. should stay “at the table” on the Paris climate pact and hinted that Trump conceivably could keep the U.S. in the deal—as long as it can be squared with his “America first” campaign vow. -
'America First' To Guide Paris Plan Prospects — Tillerson
Jan 12, 2017 | E&E Daily
By Hannah Hess
Rex Tillerson's support for the Paris climate agreement appears to hinge on the "America first" vision on which President-elect Donald Trump campaigned. -
Brown Seeks Law Authorizing GHG Cap & Trade After 2020
Jan 12, 2017 | Inside EPA
California Gov. Jerry Brown (D) says he will propose “urgency legislation” to authorize the extension of the state's pioneering greenhouse gas cap-and-trade program beyond 2020, in part to reduce legal uncertainty about the program's future that has led to significantly under-subscribed allowance auctions in recent months.
Industry and Association News
LCSA News
Chemical Management News
Energy News
Chemical Security News
Transportation News
Environment News
-
(ACC Blog) Stronger, Safer, Sleeker: Modern Plastics Are Changing How We Get Around
Jan 11, 2017 | American Chemistry Matters
By Steve Russell
Plastics Make it Possible® visited the recent Los Angeles Auto Show to check out the latest innovations in the automotive world. From concept cars to models likely to show up in your driveway there was one common denominator: Plastics. It makes sense: lightweight and sturdy plastics help make cars lighter and more fuel efficient, and enabling a multitude of safety and performance improvements. From the latest models featuring carbon fiber-reinforced plastics that add strength and safety without adding weight, to mass transit and self-driving vehicles made with 3-D printed plastics, plastics were everywhere. And, by using 3-D printing technology, some manufacturers say they can produce vehicles more quickly, and some of the parts can be recycled, too.
Check out our video (below) to explore the LA Auto Show and see these innovations made possible by plastics.
https://www.youtube.com/watch?time_continue=98&v=zjYS-oc8tdI
https://blog.americanchemistry.com/2017/01/stronger-safer-sleeker-modern-plastics-are-changing-how-we-get-around/
-
(ACC Mentioned) Reading The Trump Tea Leaves
Jan 11, 2017 | Composites World
By Jeff Sloan
The art and science of determining what the President-elect and the new US Congress might or might not do, and when they might or might not do it, and how it might or might not affect the composites industry.
I am in Washington, DC, this week attending the ACMA Composites Executive Conference, where, not surprisingly, there was much speculation among the speakers about what President-elect Donald Trump and the new US Congress has in store for the United States.
There is a fair amount of uncertainty surrounding this question, particularly given the non-specific nature of some of Trump's policy positions during the General Election campaign. And that uncertainty expressed itself today at the conference in the form of broad speculation by speakers about what Trump might do, and how it might affect the composites industry.
Today's speakers represented a variety of interests, ranging from the American Chemistry Council to a bipartisan consultantcy to the US House of Represetatives. Many of the speakers speculated about what might happen, with heavy emphasis on trade policy, tax policy, infrastructure, regulations and healthcare.
The person who spoke most directly and specifically about what might happen was Lamar Smith, a Republican Congressman from Texas' 21st District. He said Trump and Congress will assess and roll back many regulations, particularly those deemed overly burdensome, unnecessary or not supported by sound science. Further, he said Congress likely will pass a bill requiring that all regulations include the data that supported their creation. Smith admitted that "we all want clean air and clean water, but regulations should be justified and beneficial, not unnecessarily burdensome." Congress, said Smith, is also working on tax code reform, aiming to make is simpler and more business-friendly. He said to expect the number of tax brackets to be reduced from seven to three, and incentives to encourage companies to stay in the US. Smith also said that replacing the Affordable Care Act (Obamacare) will take about a year, and that the new system will focus on expanded use of private insurers and interstate competition, which, he said, will provide greater choice for the consumer, at lower cost. He also said the stipulation under ACA that a person cannot be denied coverage due to pre-existing condition will remain in place.
Cal Dooley, president and CEO of the American Chemistry Council (ACC) made many friends in the audience when he said "we think there is going to be an infrastructure build in the new administration, and if there is, we want an open materials competition." That is, ACC wants non-legacy materials like composites to be given a chance to compete with legacy materials like concrete and wood. "This is a white hat issue for us," he said. "This makes us look like heroes." Dooley also talked at length about the value of cheap natural gas in the United States, noting that 85% of chemicals in the US are made with natural gas-based feedstocks. This conveys a substantial competitive advantage, he said. He also talked a lot about the need for regulations based on sound science, not fear. Finally, Dooley expressed concern about Trump's rhetoric regarding trade restrictions or increased tariffs. "As a chemical industry, we want more trade, not less," he said.
Laurn Bazel, vice president of the Alpine Group, a bipartisan consultantcy, emphasized that the value of composites is relatively unknown among lawmakers, and that it's incumbent on all composites industry players to engage with their representatives and senators to help them better appreciate the industry. In particular, she suggests inviting lawmakers to visit plants, to see, touch and feel composite materials, and understand their value.
Economist Robert Fry looked at broader economic indicators for hints about what the future might hold, and did speculate briefly about Trump and the new Congress. In general, he favors regulatory reform, tax reform and energy policy reform. He is opposed, he said, to backing out of trade deals, increased tariffs, deportations, and vilification of China and Mexico. Commenting on the latter, he noted that the best way to stem illegal immigration from Mexico is to help the Mexican economy get better, not worse. Regarding global oil supply and demand, Fry asserted that the world might reach peak demand before it reaches peak supply.
The biggest open question facing the conference today was whether or not the new president and congress would roll back CAFE requirements installed by President Obama. Further, if such requirements were rolled back, it's unknown what affect that might have on vehicle design, development, lightweighting and material use.
http://www.compositesworld.com/blog/post/reading-the-trump-tea-leaves
-
(ACC Mentioned) US PVC Set For Margin Gains In 2017, Report Says
Jan 11, 2017 | ICIS
By Bill Bowen
HOUSTON (ICIS)--Rising demand and a lack of new production capacity over the next three or four years portends stronger pricing and margin strength for US and Asia producers of polyvinyl chloride (PVC).
Rising construction activity in the US and southeast Asia to house growing populations will sustain a rising demand trend for PVC, according to a growing consensus.
Wednesday, investment advisory firm Jefferies added its voice in a note to investors. Lead author Yoshiro Azuma said that US PVC producers, especially Shintech, the US operating division of Tokyo-headquartered Shin-Etsu, are well positioned to expand margins during the period, continuing a trend that has seen global and domestic prices rise for PVC through the second half of 2016.
Natural gas from shale deposits is providing both an inexpensive raw material and cheaper energy source than found in almost any other region, giving US producers a production cost advantage, the report said.
Lower production in China as the result of higher coal costs will likely aid producers in the US and Japan as the changing regulatory and cost environment unfolds, the report’s authors said. The report also highlighted Japanese producers Tosoh and Tokuyama as additional beneficiaries to the current market trends.
In China, coal is used both as a fuel and a feedstock in the carbide-based process used to make PVC there. That makes the industry particularly susceptible to anti-coal initiatives.
US market participants are also optimistic about the domestic impact of any stimulus package that the incoming administration in the US might promote. That would likely include infrastructure spending that would consume PVC pipe for municipal systems and additional demand from other construction uses.
US and Canada domestic production and sales already began to rise in 2016, according to data from the American Chemistry Council (ACC) and Vault Consulting.
“If Trump cuts some of the red tape and we get a stimulus package, that will change everything,” a distributor said in December.
If the domestic market improves, it would add to the margin lustre already provided by US export growth.
US producer output appears on track to tally about 7m tonnes of output in 2017 when December production figures are released later this month by the ACC and a final count is possible.
Of that, about 43% is likely to have gone to export sales, or about 2.7m tonnes, according to the ICIS estimate based on figures from the US International Trade Commission (ITC). US PVC exports are up about 4% through the first 11 months of 2016, according to the most recent ITC data.
PVC exports from China have fallen off swiftly since September when the new regulations began to be felt in the market and domestic PVC prices rose there, according to Jefferie.
China is the second-largest destination for US PVC exports, having taken 256,000 tonnes through November, behind Canada’s 407,000 tonnes.
In the US, Shintech is in the process of adding 300,000 tonne/year production capacity at its plants in Louisiana with the second and final phase of that expansion set to launch at the end of the first quarter. Shintech is also building its own ethane cracker near its plants in Addis and Plaquemine to supply feedstock.
Other major US PVC producers include Formosa Plastics, Occidental Chemical and Westlake Chemical.
http://www.icis.com/resources/news/2017/01/11/10069389/us-pvc-set-for-margin-gains-in-2017-report-says/
-
(ACC Mentioned) Crude Oil Slides As Iraq's Export Touches Record Highs
Jan 12, 2017 | Metal.com News
SEATTLE (polymers.in): Oil prices were down 2.5% on Monday as signs that growing US production and record Iraqi exports raised concerns.
- US crude futures were trading USD 52.66 bbl, down USD 1.33.
- Brent futures were down USD 1.40/bbl at USD 55.70/bbl.Oil futures decline on record Iraqi exports, rising US rig count
- NYMEX February crude settled USD 2.03 lower at USD 51.96/bbl.
- ICE March Brent settled down USD 2.16 at USD 54.94/bbl.
- Iraqi crude exports from southern ports averaged a record 3.51 million bbl/day in December.Oil Drillers Growing Again After Losing Half-Million Jobs
- More than three quarters of the 440,131 oil jobs eliminated around the world through the end of 2016.
- Oil companies are starting to hire back workers as they add rigs to the shale patch in North America to take advantage of oil prices above USD 50/bbl.Kuwait Says Saudi Arabia to UAE Complying With Oil Cuts
- Oil producers from Saudi Arabia to the UAE are complying with production cuts promised last year to stabilize the market.
- Qatar, Kuwait and Oman are also complying, having announced cuts to customers, according to Nawal Al-Fezaia.
- OPEC and crude producers outside the group, including Russia, are implementing production cuts of about 1.8 million bbl/day.Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
Ethylene prices decline in some parts of Asia
- FOB Korea prices of ethylene were at USD 190/MT levels, a drop of USD 15/MT on the week.
- CFR North East Asia prices of ethylene were assessed lower at USD 1125/MT mark, a week on week drop of USD 10/MT.
- CFR South East Asia prices were assessed steady at USD 975/MT levels.US spot MEG climbs to 17-month high behind firm Asia market
- US spot MEG increased to a 17-month high of 37.50 - 38.50 cents/lb. FOB USG on Friday.
- Chinese MEG opened this week at USD 895/MT CFR China.
- The January US MEG contract was assessed at 40.71 - 41.21 cents/lb., up 5 cents from December.Ethylene margins up in SE Asia, down in NE Asia
- Ethylene margins for the week ended 6 January rose in southeast Asia but fell in northeast Asia compared with the close of December.
- In SE Asia, naphtha-based ethylene margins rose by 15% to USD 698/MT from the end of December.Polymers Demand
- Credit Suisse thinks the market consensus on eurozone growth in 2017 is too pessimistic.
- Consumer spending will continue to underpin the recovery.
- Construction investment has contributed positively to growth for the past six quarters.
- Exports will be supported by favorable global conditions.
- Financial fundamentals will continue to improve.
- Inflation will continue to rise, with core inflation coming into focus.Recession the base case scenario for 2017
- The American Chemistry Council index of global capacity utilization is the best indicator that exists in terms of the outlook for the economy.
- Populists provide simple answers to complex questions.
- Protectionism is replacing globalization.
- Interest rates are rising around the world.Gurit acquires PET operations of BASF
- Gurit has acquired BASF’s PET structural foam business for an undisclosed sum.
- The acquisition will strengthen Gurit’s structural core material product range and add a European-based PET production capacity to the Company’s existing operations in China.https://news.metal.com/newscontent/100719300/crude-oil-slides-as-iraqs-export-touches-record-highs
-
House Passes Rule-Busting Bundle; CRA Up Next
Jan 12, 2017 | E&E Daily
By Arianna Skibell
The House yesterday passed a GOP regulatory reform package aimed at "abusive" rules and now has its sights set on voiding other rules via the Congressional Review Act.
The "Regulatory Accountability Act," H.R. 78, which passed yesterday by a 238-183 vote, combines six reform bills the House passed in previous sessions of Congress. It would require federal agencies to identify the objective of a proposed rule and choose the lowest-cost alternative, among other provisions.
"The Obama administration abused regulation to force its will on the American people. The assembling Trump administration promises to wipe out abusive regulation — freeing Americans to innovate and prosper once more," House Judiciary Chairman Bob Goodlatte (R-Va.), who sponsored the measure, said on the House floor.
"Today's legislation will give this new administration the tools," he added
Meanwhile, the top Democrat on the House Judiciary Committee, Rep. John Conyers of Michigan, charged that the bill masquerades as a reform measure but in truth will undermine the regulatory process and "jeopardize" the ability of agencies to safeguard public health and the environment.
"For example, Title I of the bill would impose more than 70 new analytical requirements that will add years to the rulemaking process," he said from the floor.
"Worse yet, many of these new requirements are intended to facilitate the ability of regulated entities — such as well-funded corporate interests — to intervene and derail regulatory protections they oppose," he added.
Conyers also pointed out that the bill would require rulemaking agencies to consider costs, not just public health concerns — thereby overriding laws like the Clean Air Act that prohibit agencies from considering costs when lives are at stake.Amendments
The House adopted two of the 10 amendments debated on the floor.
The first was offered by Goodlatte and would limit agencies' ability to interpret statutes in ways that expand their control. The second amendment was offered by Reps. Collin Peterson (D-Minn.), Goodlatte and Jason Chaffetz (R-Utah) prohibiting agencies from impartially communicating with the public in order to generate support or opposition to a proposed rule.
The measure would foremost require agencies to choose the lowest-cost rulemaking option permissible within the law. It would prevent billion-dollar rules from taking effect until courts could resolve litigation brought against those agency actions.
Judiciary Committee member Rep. John Ratcliffe (R-Texas) offered two sections of the package, both of which he'd also introduced as stand-alone bills. The first, the "Separation of Powers Restoration Act," H.R. 76, would repeal the Chevron and Auer legal doctrines, which encourage the courts to defer to agency interpretations of laws.
Conyers cautioned against this provision, saying it would force agencies to take on even more detailed records and explanations, which would delay "critical life-saving" regulations.
"The Supreme Court has recognized that federal courts simply lack the subject-matter expertise of agencies, are politically unaccountable and should not engage in making substantive determinations from the bench," he said from the floor.
"It is ironic that those who have long decried 'judicial activism' now support facilitating a greater role for the judiciary in agency rulemaking," he added.
Ratcliffe's second provision, the "All Economic Regulations Are Transparent Act," H.R. 75, would prevent the administration from implementing new rules without first alerting the public and providing at least six months for comment. The measure passed the House last year, 244-173.
A proposal by Small Business Chairman Steve Chabot (R-Ohio), H.R. 33, to strengthen the Regulatory Flexibility Act, is also included in the package. It would require agencies to tally direct, indirect and cumulative impacts of new rules on small businesses.
Rep. Raúl Grijalva (D-Ariz.), the ranking member on the House Natural Resources Committee, offered an amendment to strip language from Chabot's section of the bill that he says would have protected public lands. The amendment failed, 185-236.
The Regulatory Flexibility Act currently only requires detailed economic assessments for rules expected to have an economic impact of $100 million or more. Grijalva said the amended version that passed would require all land-use management plans published by the U.S. Forest Service or Bureau of Land Management to undergo such analyses.
The Forest Service and BLM develop land-use plans for sites across the country. Regulations pertaining to these sites dictate the extent to which those lands see a balance of resource development, conservation and recreation. Currently, national regulations that act as a framework for establishing local plans are subject to analysis under the RFA. The amended bill will require the same level of analysis for each individual local land management plan.
"If this bill becomes law, the agencies that oversee our public lands won't be able to make important decisions in a timely way, and that's the last thing the American people want. The Republicans have started this Congress by doing a series of expensive favors for industry and treating them as unworthy of public attention. Every vote my friends across the aisle cast for these giveaways is another vote that will haunt them and their party," Grijalva argued.Opposition
Eleven national health and medical organizations this week circulated a letter, urging lawmakers to vote against the bill, calling it a sweeping attack on the government's ability to protect human health.
They said provisions requiring agencies to weigh costs in promulgating rules would undermine health and environmental protections by favoring profits.
"Under the Clean Air Act, Congress required the U.S. EPA to set standards that indicate what level of pollution is harmful to human health, based solely on health and medical science, and then work with states to implement cost-effective clean up measures to meet those standards," they write.
"H.R. 5 would force EPA and FDA to prioritize the historically overstated estimates of costs to industry over scientific evidence and public health," the letter continued.Next steps
House Majority Leader Kevin McCarthy (R-Calif.), however, praised the bill as the latest step in securing the antidote to the "duplicative and unforgiving federal bureaucratic state."
"The people can't vote out the bureaucrats who write rules at the EPA or at the Department of Health and Human Services," he said on the House floor. "And these bureaucrats know it. They know they aren't accountable to the people even as they exercise great power."
McCarthy, who will further discuss regulatory reform this morning at a press conference, said the House is engaging in a two-step approach to overturn regulations that burden the economy.
"First, to change the structure of Washington that deprives the people of their power; second, to repeal specific harmful regulations," he said. "We've already passed two bills last week to change Washington's structure."
The House passed the "Regulations From the Executive in Need of Scrutiny Act" (E&E Daily, Jan. 6) and the "Midnight Rules Relief Act" (E&E Daily, Jan. 5).
"We'll get started on that second part early next month," he said, referring to GOP plans to use the Congressional Review Act, which allows simple majorities in both chambers of Congress to nullify executive branch regulations by passing a resolution of disapproval.
The House has already introduced a resolution for disapproval of the Interior Department's recently finalized Stream Protection Rule and the Bureau of Land Management's methane rule is another likely candidate.
House Minority Whip Steny Hoyer (D-Md.) said Democrats might not be able to stop Republicans from repealing rules under the Congressional Review Act, but they could at least force a debate on the merits of scrapping the rules.
Hoyer said, in the Senate, Democrats will require individual debates on rules proposed for repeal by rejecting the House's recently passed "Midnight Rules Act," which would allow for disapproving multiple rules under one resolution with limited debate. The CRA currently allows for only rejecting one rule per resolution, which is time consuming.
While disapproval resolutions under the law are exempt from Senate filibuster rules, they are subject to up to 10 hours of debate.
Republicans "don't want to subject to debate what the consequences of a repeal will have on consumers, the environment, health care, etc., etc.," Hoyer told reporters yesterday afternoon. "You slow it down by not passing the 'Midnight Rules' package."
http://www.eenews.net/eedaily/2017/01/12/stories/1060048252
-
Chamber Sees Need For 'Compromise' To Advance Regulatory Reform Bills
Jan 11, 2017 | Inside EPA
By David LaRoss
The head of the U.S. Chamber of Commerce is downplaying prospects for sweeping regulatory efforts Republicans are pushing that would impose new limits on EPA's rulemaking powers, saying the bills will require “compromise” to advance otherwise they will fail to move quickly into law despite support from President-elect Donald Trump.
“Naturally, there will be debates, disagreements and delays. Welcome to a healthy democracy. And you can bet that every time a deal is struck, or a compromise is made, the absolutists on the right and on the left will cry 'sellout.' We must not allow a few to block the entire nation's progress in the name of ideological purity or political expediency,” said Tom Donohue, president and chief executive officer of the U.S. Chamber, during his annual “State of American Business” speech Jan. 11 in Washington, D.C.
Donohue did not explicitly call on Congress to approve certain reform bills as he has in previous iterations of the address. Measures now pending before legislators include H.R. 5, an omnibus bill that combines a host of GOP-backed legislation from the 114th Congress and could clear the House this week.
H.R. 5 would increase transparency mandates on agencies, broaden requirements for reviewing proposed rules' effects on small businesses, automatically stay certain “major” rules pending judicial review and strike down Supreme Court precedent mandating deference to agencies when they interpret “ambiguous” statutory or regulatory text.
Instead of calling on Congress to pass particular bills, Donohue said the Chamber will back regulatory reform efforts generally, with an expectation that action on that front will not be quick.
“Good intentions are fine, but policy-makers must deliver the goods. That could take some time. Nominees must be confirmed -- the Senate has to do their job. Bills must be passed, and they have to take effect, all before the economic benefits can be fully realized,” he continued.
Despite not urging passage of H.R. 5 or other specific legislation, Donohue said the Chamber will back efforts to use the Congressional Review Act (CRA) to block regulations issued late in President Obama's term, as well as legislative or regulatory avenues for repealing EPA's Clean Water Act (CWA) jurisdiction rule and greenhouse gas standards for existing power plants, known as the Clean Power Plan (CPP), either through executive action or lawmaking.
He acknowledged either process “will take longer” than the CRA, which can only be invoked to repeal rules issued within 60 legislative days.
Disapproval Resolutions
However, the Chamber's William Kovacs, its senior vice president for environment, technology and regulatory affairs, told Inside EPA after the speech that the group is still weighing targets for CRA repeal. That is in part because the law requires passing an individual resolution for each regulation, which will be a time-consuming process.
“There are a lot of different agencies, and you have to sort of balance it -- does every industry get its share? Does everybody get one?”
And he said there are concerns over the possibility that a successful CRA resolution could block EPA and other agencies from crafting new rules addressing the same topics that industry might support. The review law bars future rules that follow “substantially the same form,” or are “substantially the same” as a policy revoked through CRA action.
That restriction is untested in court, since there has been only one successful CRA resolution in the law's history, targeting a 2000 rule on ergonomic standards, but Kovacs said the possibility has stakeholders concerned.
“There are members who say, 'we hate the rule, but we have to have a rule so we don't want to block it forever.' There's a lot of this debate going on,” he said.
Kovacs continued that the Chamber and other industry groups are awaiting a memo from Trump's incoming chief of staff, Reince Priebus, that will lay out the White House's regulatory agenda -- including how it will use executive action to limit Obama-era rules Republicans hope to repeal.
“The first one you're going to see is the traditional executive order on how you deal with regulations. . . . That's going to spell out how he's going to deal with all the regulations,” Kovacs said.
He continued that among other issues the expected Priebus memo will address how the administration will handle rules that have been finalized but have not taken effect, and those that are stayed pending court challenges, which includes the CWA jurisdiction rule and the CPP. --
https://insideepa.com/daily-news/chamber-sees-need-compromise-advance-regulatory-reform-bills
-
Pruitt EPA Confirmation Hearing Scheduled For 18 January
Jan 12, 2017 | Chemical Watch
The confirmation hearing for Scott Pruitt – President-Elect Donald Trump's intended nomination as EPA administrator – has been scheduled for 18 January.
Mr Pruitt will appear before the Senate Committee on Environment and Public Works (EPW). The hearing will allow senators to question him on his stance on potential policies for the agency if confirmed.
Mr Pruitt, currently Oklahoma's attorney general, is one of several high-profile Trump appointees currently going through the Senate confirmation process. The President-Elect cannot officially make any nominations until his inauguration on 20 January.
Committee chair Sen John Barrasso (R-Wyoming) announced the hearing after meeting with ranking member Sen Tom Carper (D-Delaware). It will be Mr Barrasso's first major appearance since being unanimously elected the committee's chair on 4 January. He replaces Sen Jim Inhofe (R-Oklahoma).
Mr Barrasso said in a statement that his early priorities as EPW chair include working to pass "badly needed reforms to problematic EPA regulations issued over the past eight years.
"As chairman, I will focus on measures that will remove red-tape and bureaucratic barriers to economic development, while ensuring clean air, land, and water for every American.
"Over the past eight years, a runaway Environmental Protection Agency has time and again issued cumbersome regulations that have limited job creation and energy development. Our committee will work closely with the next administration to remove these obstacles to economic growth, while protecting the environment."
The House of Representatives has moved quickly in recent weeks with an aggressive regulatory rollback agenda, including the Regulations from the Executive in Need of Scrutiny Act of 2017 (REINS) and the Midnight Rules Relief Act of 2017 (HR 21). Both rules aim at reducing regulations implemented by the outgoing Obama administration, and increasing congressional oversight of final rulehttps://chemicalwatch.com/52085/pruitt-epa-confirmation-hearing-scheduled-for-18-january
-
(ACC Mentioned) EPA Sets Second Solvent-Chemical Restriction Rule
Jan 12, 2017 | BNA Daily Environment Report
By Pat Rizzuto
A proposed EPA rule to restrict vapor degreasing uses of the solvent called trichloroethylene was issued on Jan. 11 after being approved by the White House regulatory review office, setting the stage for debates over the science that underpins it.
The compound, called TCE, is used to clean machine parts across a wide swath of industries including cleaning aircraft parts, defense-related maintenance of vehicles, and metal fabrication processes.
The Office of Management and Budget's approval cleared the way for the Environmental Protection Agency to issue the proposed rule (RIN:2070-AK11) Jan. 11.
EPA is proposing to prohibit manufacture (including import), processing, and distribution in commerce of TCE for use in vapor degreasing. EPA is also proposing to require manufacturers, processors, and distributors to notify retailers and others in their supply chains of the prohibitions.
According to the proposed regulation, new controls would affect manufacturers of soap, detergent, saw blades, handtools, jewelry and silverware.
Sufficient concentrations of exposure to TCE affects the central nervous system, and has been associated with toxic effects in the liver and kidney.
The vapor-degreasing restriction would be the second rule limiting TCE uses to be proposed by the agency.
The EPA published on Dec. 7 the first proposed rule (RIN:2070-AK03). That first rule would ban the use of trichloroethylene (TCE; CAS No. 79‐01‐6) for spot cleaning by dry cleaners and in aerosol degreasers, such as sprays designed to remove grease from electrical motors or metal.
Both rules mark the EPA's first attempt since 1991 to use the chemical-restriction authorities it has under Section 6 of the Toxic Substances Control Act. In 1991 the U.S. Court of Appeals for the Fifth Circuit overturned the agency's 1989 effort to ban most uses of asbestos (Corrosion Proof Fittings v. EPA, 947 F.2d 1201, 33 ERC 1961 (5th Cir. 1991)).
Chemical manufacturers and their representatives, such as the American Chemistry Council, have blasted the risk assessment that underlies both TCE rules as failing to meet the scientific requirements of TSCA as amended in 2016.
Others, including Sen. Tom Udall (D-N.M.), who spearheaded passage of the amendments that updated TSCA, have praised the agency for striving to protect the public from a hazardous chemical in common use.
Debate over the sufficiency and specificity of the science that EPA uses to justify TCE controls is being closely watched by industry and environmentalists for what it portends for future chemical regulations.
http://news.bna.com/deln/DELNWB/split_display.adp?fedfid=103279032&vname=dennotallissues&fn=103279032&jd=103279032
-
Some Nanoscale Chemical Makers, Users Must Give EPA Data
Jan 12, 2017 | BNA Daily Environment Report
By Pat Rizzuto
Companies that make, process or import certain nanoscale chemicals are required to submit information to the Environmental Protection Agency under a final rule the agency released Jan. 11.
The rule (RIN:2070-AJ54), more than 10 years in development, marks the first time the agency has required manufacturers and processors to submit chemical identity, production volume and other information about nanoscale chemicals. Under the Toxic Substances Control Act, which provides the legal authority for this rule, importing a chemical is considered the same as manufacturing it.
The regulation applies only to chemicals specifically made at the nanoscale to have strength, electrical conducting, light transmitting or other special properties they would not exhibit if they were larger. The EPA defined reportable chemicals as substances containing particles in the range of 1 to 100 nanometers. A nanometer is about the size of a virus.
Chemical manufacturers including BASF SE, CHASM Advanced Materials, Inc., and Dupont are among the companies that make nanoengineered chemicals. Such chemicals are incorporated into diverse industrial and consumer products ranging from tennis rackets to lithium ion batteries to airplane parts.
The rule will be effective in May, 120 days after it is published in the Jan. 12 Federal Register.
Two Reporting Requirements
The rule has two reporting requirements.
The first is a one-time requirement to report information known to or reasonably attainable by a company that has made or processed a nanoscale chemical “at any time during the three years prior to the final effective date of this rule.”
The second is an ongoing reporting requirement for companies that, in the future, decide to make, import or process a distinct, or “discrete,” form of a nanoscale chemical.
Companies that decide in the future to make, process or import a distinct form of a nanoscale chemical will have to provide the EPA the required information under one of two deadlines.
They must submit the information to the EPA either 135 days before they make, import or process the chemical or within 30 days of deciding they intend to manufacture or process the chemical.
Companies that want to make or process a nanoscale form of a chemical already in commerce are free to do so before the 135-day deadline, although the information must be submitted, the final rule said. The 135-day period “is not a formal review-period that prohibits manufacture,” the agency said.
If a company intends to make a new, nanoscale chemical—meaning a chemical that is not on the TSCA inventory of chemicals that have been made in or imported into the U.S.—it must comply with existing TSCA rules that require it to submit a premanufacture notice 90 days before making the chemical.
Some attorneys that represent nanoscale chemical manufacturers and processors told Bloomberg BNA before the final rule was published that companies might challenge the final rule in court if it contained the 135-day reporting requirement the agency originally proposed.
The final rule's requirements, however, are somewhat different. For example, the final rule allows manufacture or processing of the nanoscale chemical to commence before 135 days.
Final Rule Changes Exemptions
Companies that make or process biological materials such as enzymes and microorganisms, which are at the nanoscale, are exempted from the final rules reporting requirements. That exemption was not in the proposed rule.
The agency, however, eliminated a proposed exemption for nanoclays and zinc oxide following concerns some public commenters raised. The EPA said the comments made it realize that it did not have sufficient information to exempt these or other chemicals that may be intentionally engineered at the nanoscale.
The EPA's final rule exempts more small businesses from its reporting requirements than did the proposed rule.
The agency had proposed to define small businesses as ones with annual sales less than $4 million, but several commenters urged the agency to expand the exemption.
The final rule exempts companies with annual sales of $11 million or less.
The final rule also defines many terms that public commenters had criticized as being vague in the proposed rule.
The rule offers examples of testing methods that could generate some of the information the agency would like to receive. The EPA stressed, however, that manufacturers and processors are not required to conduct testing or develop new information under this rule, but rather report information they already have or can readily obtain.
http://news.bna.com/deln/DELNWB/split_display.adp?fedfid=103279030&vname=dennotallissues&fn=103279030&jd=103279030
-
At Last: EPA Promulgates Nanomaterial Reporting Rule
Jan 11, 2017 | Environmental Defense Fund
By Richard Denison
Richard Denison, Ph.D., is a Lead Senior Scientist. Lindsay McCormick is a Project Manager.
Today, EPA issued its long-awaited rule to gather risk-relevant information on nanoscale materials. The new rule will finally allow EPA to obtain basic data on use, exposure, and hazards from those that manufacture or process these materials, which has long been recognized by experts as essential to understand and manage their potential risks.
Nanomaterials – a diverse category of materials defined mainly by their small size – often exhibit unique properties that can allow for novel applications but also have the potential to negatively impact our health and the environment. Some nanomaterials: more easily penetrate biological barriers than do their bulk counterparts; exhibit toxic effects on the nervous, cardiovascular, pulmonary, and reproductive systems; or have antibacterial properties that may negatively impact ecosystems or lead to resistance.
Numerous expert bodies have identified the need for the kinds of information on nanomaterials EPA will now be able to collect, including the National Academy of Sciences, the National Nanotechnology Initiative, and EPA’s Office of Research and Development. The Organization for Economic Cooperation and Development (OECD) published a report last year noting that the number of products containing nanomaterials increased fivefold in the global market between 2006 and 2011, and are being used in hundreds of new products ranging from cosmetics and personal care products to clothing and textiles, solar cells, plastics for the automotive and aircraft industries, and food packaging.
EPA’s new rule institutes a one-time reporting requirement for existing nanomaterials, as well as a standing one-time reporting requirement for new nanomaterials before they are manufactured. Companies that manufacture, import or process existing nanomaterials, or intend to start doing so for a new nanomaterial, are required to submit the following categories of “reasonably ascertainable” information to EPA: chemical identity, production volume, methods of manufacture and processing, exposure and release information, and available environmental and health impacts data. By collecting such data, EPA will finally be able to draw a clearer picture of the nanomaterials in and entering commercial use, and better determine whether action to mitigate risk is needed, on a case-by-case basis.
This basic rule has been a very long time coming. As illustrated in the graphic above, EPA has been attempting – for over a decade – to issue such a rule to gather even this most basic information on nanomaterials in the U.S. market. Over the years, we have blogged extensively on EPA’s slow progress, due to opposition from both industry and other parts of the Federal government at every step.
There are a number of notable aspects of what is included – and not included – in the final rule:It applies both to nanoscale materials already in commerce and to new nano forms of existing chemicals that companies intend to make or process in the future. (Wholly new nanoscale chemicals would be required to be reviewed under TSCA’s new chemicals provisions.)In promulgating the rule, EPA affirmed its broad authority to collect existing information under section 8(a) of TSCA, rejecting industry arguments that such authority was highly constrained.EPA removed reporting exemptions it had proposed for nanoclays and zinc oxide, and rejected industry calls to include numerous additional exemptions.
The rule is not perfect and omits reporting EDF and others urged be included. For example:Aggregates of nanoscale particles must fall within the 1-100 nanometer (nm) range to be reportable. We argued that aggregates comprised of nanoparticles between 1-100 nm be reported even if the aggregate is larger, given that such aggregates can often disaggregate in the environment or during use.Companies that submitted a pre-manufacture notice (PMN) for a nanoscale material at any time since 2005 do not have to report for that material. Our concern is that this will miss new information on that material that has been developed since the PMN was reviewed.Chemical substances “formed at the nanoscale as part of a film on a surface” are exempted from reporting. We argued that such films can break down or erode over time especially if exposed to the elements, potentially releasing the nanoscale materials.
Still, with this rule finally finalized, EPA can at last begin to get basic risk-relevant information needed to make sound decisions about which materials and uses present concerns and which do not.
http://blogs.edf.org/health/2017/01/11/at-last-epa-promulgates-nanomaterial-reporting-rule/
-
EPA Proposes Banning Additional Uses Of TCE
Jan 11, 2017 | Safer Chemicals, Healthy Families.
Today, under the newly reformed Toxics Substance Control Act (TSCA), the Environmental Protection Agency (EPA) proposed banning certain uses of the toxic chemical trichloroethylene (TCE) due to health risks when used as a vapor degreaser. In response, Liz Hitchcock, Legislative Director of Safer Chemicals, Healthy Families, issued the following statement:
“Today’s announcement is another important milestone for public health. EPA is proposing to prohibit industrial use of known toxic chemical TCE for vapor degreasing and is also proposing to require manufacturers, processors, and distributors to notify others in their supply chains of the prohibitions.
“Along with EPA’s December announcement of a ban on several consumer uses of TCE, this is the kind of common sense action to protect public health that is 40 years overdue, and it is only possible because of the recent reform of the Toxic Substances Control Act (TSCA.)”
For more information on trichloroethylene, including its risks and uses, please see our page on TCE.
http://saferchemicals.org/newsroom/epa-proposes-banning-additional-uses-of-tce/
-
Seventh Generation to Lobby for Chemical Ingredient Disclosure
Jan 12, 2017 | BNA Daily Environment Report
By Pat Rizzuto
Seventh Generation, Inc. plans to lobby state legislators and the U.S. Congress in favor of legislation that would require companies to disclose chemicals in the products they make, the company's director of sustainability said Jan. 10.
Martin Wolf, director of sustainability and authenticity for Seventh Generation, said the company plans to lobby for chemical disclosure legislation in California, Vermont and nationally. Seventh Generation, which makes laundry detergents, diapers, baby wipes and other household products marketed for consumers interested in sustainability, already discloses its ingredients through information on the label and online. Unilever purchased Seventh Generation in 2016.
“Customers don't always like what [chemical] we use, but it starts a conversation. We can talk about why we use it. We may not win the consumer, but we build trust,” said Wolf during a webinar called “Chemical Transparency: The Value of Ingredient Disclosure.” Clean Production Action, a non-profit organization that advocates for green chemicals and sustainable products, organized the webinar.
Ingredients Expected to Be Disclosed
Roger McFadden, a former vice president at Staples, Inc., said it's inevitable that chemicals in products will be disclosed.
“Get used to it. We live in an age of information, transparency and disclosure,” he said during the webinar.
“Consumers will dig, discover and divulge any and all information across the web,” said McFadden, who now runs his own Portland, Oregon-based consulting company firm called McFadden and Associates, LLC.
Companies can choose to get ahead of the curve and disclose those ingredients voluntarily, wait for regulations, or wait until the information is obtained through internet hacking or other means, McFadden said.
Companies can benefit from chemical disclosure legislation and regulations, he said.
Leveling the Playing Field
Laws and regulations can provide clear definitions of terms like “chemical” and “chemical disclosure,” he said.
Clear definitions create a level playing field on which businesses are evaluated consistently. They also ease supply chain communications, McFadden said.
Brand vulnerabilities that result when chemicals of concern are found in consumer products are reduced through disclosure, he said.
State Interest
State interest in chemical disclosure legislation is expected to continue in 2017, according to Sarah Doll, director of a chemical-policy group called Safer States.
Legislators in New York, California and elsewhere are expected to reintroduce disclosure bills that failed to pass in 2016, she previously told Bloomberg BNA.
Vermont adopted legislation in 2014 that required disclosure from companies making children's products. The law applied to products containing any of 66 chemicals of high concern. Seventh Generation would like that disclosure to be expanded to additional products, Wolf said.
Bryan McGannon, policy director of the American Sustainable Business Council, has told Bloomberg BNA that his organization will work with congressional legislators to secure the reintroduction of the Cleaning Product Right to Know Act in 2017. Introduced in 2016 by Rep. Steve Israel (D-N.Y.), who has since retired, the bill would have required cleaning products to disclose their ingredients, including components of dyes, fragrances, and preservatives making up 1 percent or more of the product.
Industry Efforts
Wolf said Seventh Generation also will work with the American Sustainable Business Coalition, BizNGO, a coalition of businesses and environmental organizations, and other groups to expand industry disclosure initiatives.
He pointed to a voluntary disclosure initiative launched by the American Cleaning Institute, the Consumer Specialty Products Association and the Canadian Consumer Specialty Products Association. The initiative is a good step but should be expanded, Wolf said.
http://news.bna.com/deln/DELNWB/split_display.adp?fedfid=103279028&vname=dennotallissues&fn=103279028&jd=103279028
-
EU Enforcement Project To Target Quality Of SDSs
Jan 11, 2017 | Chemical Watch
Inspectors in EU member states will focus on the quality of safety data sheets (SDSs), which contain guidelines on the safe use of hazardous substances, as they begin work on the fifth REACH enforcement project (Ref-5) this month.
The enforcement aims to ensure that workers handling hazardous chemicals, especially those dealing with SVHCs, receive sufficient and correct safety information, Echa said in a release.
Throughout 2017, inspectors will check if the extended SDSs match the information established by the chemical safety reports (CSRs) that substance manufacturers prepare. They will also go through the exposure scenarios attached to the SDSs.
The project will also map how effectively extended safety data sheets are passed on and communicated all the way through the supply chain – from manufacturers of chemicals to users. This will be the first joint EU enforcement project to do so.
National inspectors will also check whether workers comply with the safety information at their workplaces. They will collaborate with labour inspectors to assess if the recommended operational conditions and risk management measures are fulfilled.
A report on the results of the inspections will be available in the fourth quarter of 2018. The Ref-5 project was adopted by Echa’s Forum for Exchange of Information on Enforcement at the end of 2015.Advice for downstream users
In its five-year report from May last year, Echa head Geert Dancet said that only a small proportion of SDSs have adequate exposure scenarios for all the uses made of the substance. This makes the risk management of chemicals in manufacturing companies more difficult. He added that downstream users should help themselves by demanding "better quality, user-friendly" safety data.
The report's conclusions are reinforced by a Dutch workplace inspectorate survey, which found that many small downstream users lack SDSs for the chemicals they use, while most of those they do have fall short of what is needed.
And at a conference in June 2016, representatives of EU members states said a legally required format for exposure scenarios could help improve the quality and usability of extended SDSs.
For better implementation of REACH, they said, better information on exposure is a key need.
https://chemicalwatch.com/52067/eu-enforcement-project-to-target-quality-of-sdss
-
Citizens’ Initiative Aimed At Banning Glyphosate Gets The Go-Ahead
Jan 11, 2017 | EurActiv
By Cécile Barbière
Brussels has agreed to the launch of a European Citizens’ Initiative on banning glyphosate in the EU. EurActiv France reports.
The controversy over the authorisation of the chemical glyphosate could find its way back to the European Commission’s table through a European Citizens’ Initiative (ECI) supported by environmental NGOs, including Greenpeace.
The European executive yesterday (10 January) announced the reception of an ECI inviting the Commission to “propose to member states a ban on glyphosate, to reform the pesticide approval procedure, and to set EU-wide mandatory reduction targets for pesticide use”.
Simply titled ‘Ban Glyphosate’, the initiative will be officially registered on 25 January. From this date, EU citizens will have 12 months in which to add their signature to the document.
One million signatures
If the proposal receives the support of a million people from at least seven member states, the Commission will be obliged to consider a legislative response and provide justification for its decision.
The world’s best-selling herbicide, an active ingredient in Monsanto’s weedkiller RoundUp, is the subject of intense debate at European level. Classified as “probably carcinogenic” by the International Agency for Research on Cancer (IARC), a branch of the WHO, glyphosate has nevertheless been authorised by the European Food Safety Authority (EFSA), whose practice of basing its analyses on studies by the big agro-chemical companies is highly criticised.
Member states were deeply divided over whether to renew the chemical’s licence, which expired in 2016.
The European Chemicals Agency (ECHA) has been given until later this year to submit a new assessment of the risk posed by glyphosate. And in the mean time, the product’s authorisation has been granted an 18-month extention.
Slim chance
But the ECI on glyphosate has little chance of succeeding. Since the ECI mechanism was launched in 2012, not a single petition has resulted in the presentation of a legislative bill.
Until now, only three ECIs have made it over the one million signature mark.
“Stop Vivisection,” an initiative demanding the end of animal testing in the EU, garnered an unenthusiastic reception from the EU executive, which saw a complete halt to animal testing as unrealistic.
The “One of Us” initiative, which called for an end to European credits to fund abortion in developing countries, was also firmly rejected by the Commission.
As part of its 2017 work programme announced last October, the Commission said it planned to present a legisltive proposal introducing minimum requirements for recycled water, as well as a revision of the Drinking Water Directive, following an ECI on the right to water, submitted in 2014.
Worryingly though, the decision of whether or not to accept an ECI depends on a certain unmber of criteria evaluated by the European Commission. Some initiatives, such as “Stop TTIP”, have been rejected by Brussels on technical grounds, despite receiving three million signatures.
On the other hand, an initiative entitled “Mum Dad & Kids”, pushing an openly anti-LGBTI view of marriage as being “a union between a man and a woman”, received the green light from the institution to begin collecting signatures.
http://www.euractiv.com/section/agriculture-food/news/citizens-initiative-aimed-at-banning-glyphosate-gets-the-go-ahead/
-
Bishop, Murkowski Look To Dust Off Energy Bill
Jan 12, 2017 | E&E Daily
By Geof Koss
Key House and Senate lawmakers said yesterday they may look to revive components of last year's unfinished energy bill in the coming months.
House Natural Resources Chairman Rob Bishop (R-Utah) told reporters he expects to see the committee "moving slowly out of the gate." The panel has yet to formally organize.
"I don't expect you to see any subcommittee work from us before late February, early March," he said. "If we do anything early on, it may be some of the stuff that was passed last year and is left over."
That includes several elements of the energy reform package under his committee's jurisdiction, including sportsmen's legislation and provisions to ease the siting of transmission lines on federal lands.
The upcoming omnibus appropriations bill, as well as President-elect Donald Trump's infrastructure package, could be vehicles for some of the leftovers, Bishop said.
House and Senate lawmakers went to conference last June to try to bridge the gap on competing energy reform bill visions, only to see the effort collapse before Christmas.
The House adjourned in December after rejecting pleas from Senate Energy and Natural Resources Chairwoman Lisa Murkowski (R-Alaska) and ranking member Maria Cantwell (D-Wash.) to put the agreed-to provisions on the floor for votes.
Murkowski said yesterday that she and Bishop discussed the possibility of reviving parts of the legislation last week during a phone call on other matters. Murkowski said she has also been informally checking with committee members to make sure she's "still in sync with what they want to do."
"I'm mentioning my desires to get things going again with my energy bill," she told E&E News yesterday. "Will it be everything that was on the floor that last week? No. But will we try to do as much as we can to kind of clear out the closet here? Yeah."
Murkowski also listed the sportsmen's package, along with public lands and nuclear provisions, as items that "can move through."
One proposal from the lengthy energy talks that ended up making it into law — legislation commemorating the National Park Service Centennial — could get another look, Bishop said.
"I would like to expand that slightly," he said.
However, lawmakers will likely revise some of the provisions crafted in order to win President Obama's signature, possibly including the agreement to end the practice of wildfire borrowing.
"You've got a new administration coming in, and I'm not sure where they're going to end up on the wildfire budgeting," Murkowski said, noting that she discussed the matter with Interior secretary nominee Ryan Zinke (R-Mont.).
The issue largely belongs to the Forest Service, however, and the lack of an Agriculture Department nominee means it's unclear what the Trump administration's position might be.
Bishop said he was holding off on talking policy with Zinke until the Senate confirms him. "It would be inappropriate," he said.
However, he said the incoming administration should review the string of national monuments Obama designated under the Antiquities Act.
The Congressional Review Act is probably not "a viable vehicle" for undoing monument designations, but Bishop said Trump could act executively to reverse them and the permanent withdrawal of federal offshore lands from drilling.
"Anything that you create by executive fiat can be changed by executive fiat," he said.Energy and Commerce
Rep. Joe Barton (R-Texas), vice chairman of the House Energy and Commerce Committee, said Chairman Greg Walden (R-Ore.) is meeting with subcommittee leaders and members to develop an agenda to be revealed in the coming weeks and months.
However, he noted that the panel is one of two in the House tasked with repealing Obama's health care law, which is expected to be an early focus.
Barton cautioned that Walden and House leadership will set the agenda, but that new Energy Subcommittee Chairman Fred Upton (R-Mich.) may be interested in revisiting the unfinished energy bill from last year "and try to move something."
Environment Subcommittee Chairman John Shimkus (R-Ill.), Barton said, "would like to take a look at Yucca Mountain and the Clean Air Act," which is now under his jurisdiction.
Barton, who served as full committee chairman during the George W. Bush administration, said he had recommended that Walden take a broad look at the Clean Air Act.
"I want us to be as aggressive as is reasonably possible," he said. "We as conservatives ... this is our best opportunity, better even than the Reagan years or the '[Newt] Gingrich Contract With America' years. This is our best chance to really rebalance the equation.
"Not try to gut stuff, but try to bring these laws back to where they were in the beginning, which was most of them were pretty evenly balanced between regulation and markets, between opportunity and government mandates, and they've all been moved to the left by Obama."
Barton added that he expects Trump to waste no time in using his own authority to reverse Obama's policies, including U.S. EPA's Clean Power Plan.
"My understanding is the president is going to fairly quickly by executive order undo quite a bit of the Obama executive orders on the energy and environment front," he said, adding that he was hopeful it would happen on the first day of Trump's presidency.
"How many executive orders can the president sign in a 24-hour period?" Barton asked, laughing. "He might set a new record."
http://www.eenews.net/eedaily/2017/01/12/stories/1060048256
-
Moniz On Scientific Integrity, Rick Perry And What's Next
Jan 12, 2017 | E&E News PM
By Christa Marshall
Not handing over the names of federal climate scientists to the Trump transition team was "absolutely the right thing to do," Energy Secretary Ernest Moniz said today.
Moniz also said he plans to return to Boston to "chill out" with family after his Washington stint — although he has no job lined up — and that Energy secretary nominee Rick Perry is very committed "to moving the department forward," based on private discussions.
"He certainly wants to get on top of things," Moniz said of Perry.
When asked whether he was concerned Perry would undo President Obama's policies, Moniz predicted Perry would see "value added" once he examines the reach and impact of DOE programs.
"Any new secretary is going to have particular priorities," said Moniz, adding the best way to institutionalize programs is for them to be successful. He said he would continue to work in the future on climate change and energy issues.
The comments came during Moniz's last public speech in Washington as the Department of Energy secretary. Moniz focused on DOE's 17 national laboratories and science and technology policy, including new protections for scientists to work and speak freely.
With many scientists jittery about Trump, Moniz issued a revised "scientific integrity policy" for the department today that prevents scientists from censorship, protects freedom of expression for them, establishes a scientific integrity official and expands whistleblower protections.
Previously, DOE had a less-detailed science policy offering protections for workers, but it did not cover many scientists at the national labs, which are under the jurisdiction of contractors.
"The cornerstone of the scientific integrity policy at DOE is that all scientists, engineers, or others supported by DOE are free and encouraged to share their scientific findings and views," the document states. It specifies that covered employees can express opinions as long as they are not presented as representing the U.S. government.
In a blog post, the Union of Concerned Scientists noted the case of a national lab scientist who may have been fired because of an academic article. Those kinds of problems could be "stopped before they start," the group said. Perry, if he is confirmed, would be responsible for implementing the new policy, the group said.
Moniz said the new plan was not directly in response to President-elect Donald Trump.
"This was done before there were even [presidential] candidates selected," he said.
The future of DOE science came under scrutiny after a leaked memo from the Trump transition team requested the names of department officials working on climate policies and asked for the salaries of research and national lab officials (Greenwire, Dec. 9, 2016).
DOE's refusal to hand over the names of scientists was not only the right thing to do, but would ultimately be a favor to the next secretary, Moniz said. He said he wouldn't speculate on the motivation behind the memo from the Trump transition team.
Getting the issue off the table would allow career scientists to do their work and get everyone "rowing in the same direction." As one example, he said that during negotiations for the Iran nuclear deal, he relied on highly technical scientific data that were free of political influence.Are the labs 'bulletproof'?
Moniz also released a sweeping report today examining the accomplishments and challenges facing the national labs.
The inaugural report says, for example, that the labs were critical in developing technologies for the shale gas boom, lowering the costs of renewables and batteries, and developing efficiency technologies that saved consumers billions of dollars.
Moniz made many structural changes at the department, including creating a lab policy council and an undersecretary for science and energy to help coordinate lab operations on issues like grid modernization. He also oversaw many new programs to speed up commercialization of new technologies.
He said the lab report would provide an important baseline for the next administration. The idea of an annual assessment on the status of the labs was enshrined in a congressionally mandated commission that called for numerous reforms, including labs having more flexibility over their budgets (E&E Daily, Feb. 25, 2016).
After the release of the DOE questionnaire, many congressional Democrats criticized the memo publicly and threatened to join future lawsuits if they arose.
But a source close to the Trump transition team said in an interview last month the national labs are "bulletproof," even though there may be interest in cutting spending on energy efficiency and renewable power sources at DOE.
Several Republican senators who met with Perry this month also said they stressed the importance of the labs with him.
Sen. Lamar Alexander (R-Tenn.), among others, released a statement after a meeting saying Perry "knows that the future of clean energy and our brainpower advantage depend to a great extent upon research at our outstanding national laboratories."
http://www.eenews.net/eenewspm/2017/01/11/stories/1060048231
-
Trump's Energy Nominee Cuts Ties With Dakota Access Developer
Jan 12, 2017 | BNA Daily Environment Report
By Jennifer A. Dlouhy and Ari Natter
Former Texas Gov. Rick Perry (R) is cutting ties with two companies that have stakes in the disputed Dakota Access Pipeline as he prepares to serve as President-elect Donald Trump's Energy secretary.
Perry has resigned from the boards of both the developer of that $3.8 billion pipeline, Energy Transfer Partners LP, and the company trying to acquire it, Sunoco Logistics Partners LP, according to an agreement released Jan. 11 by the U.S. Office of Government Ethics. He also is shedding shares in the companies and pledged to steer clear of any matters that could affect them for at least two years.
The agreement, and a similar one with Interior Secretary pick Ryan Zinke, clear the way for the Senate to begin consideration of Trump's Cabinet choices on energy and interior next week.
Zinke, a Republican lawmaker from Montana tapped to lead the Interior Department, is set to appear before the Senate Energy and Natural Resources Committee on Tuesday, Jan. 17. And the next day Oklahoma Attorney General Scott Pruitt, Trump's pick to lead the Environmental Protection Agency, is slated for a hearing before the Senate Environment and Public Works Committee.
Perry's past link to the pipeline companies could still cast a shadow over his Senate confirmation hearing, which also may take place next week. Senators grilled former Exxon Mobil Corp. CEO Rex Tillerson, Trump's pick for Secretary of State, Jan. 11 about the decisions he made when leading the oil giant, from opposing Russian sanctions to paying royalties to unsavory regimes.
Keystone XL
The incoming president has promised to streamline pipeline permitting, approve TransCanada Corp.’s rejected Keystone XL and review the Obama administration's denial of a critical permit needed to complete the Dakota Access project amid protests from Native Americans and environmental activists.
The U.S. Army Corps of Engineers said a lengthy environmental review is needed before a federal easement can be granted for construction of the final portion of that pipeline beneath North Dakota's Lake Oahe. The project would provide a new outlet for crude oil extracted from the Bakken shale formation in North Dakota.
According to the Jan. 11 disclosures, Perry amassed significant energy company interests since his 14-year tenure as governor of Texas, including a role as an advisory board member of the firm his son co-founded, Grey Rock Energy Partners. Perry resigned that position effective Dec. 31, and pledged to “not participate personally and substantially” in matters involving the company for a set period of time unless he receives special authorization.
Perry had held up to $250,000 each in unvested restricted stock in Energy Transfer Partners and Sunoco Logistics Partners and collected director fees totaling $171,000 from the companies.
Consulting Fees
Perry has earned nearly $600,000 in consulting fees from work with MCNA Insurance Co., McKenna and Associates and Celltex Therapeutics, and pledged to sever ties with those companies. He has also gotten honoraria from a slew of organizations, ranging from the publication Bond Buyer to the American Association of Orthopaedic Surgeons. Since March, he also has collected $51,527 in payments from the Texas Public Policy Foundation, a conservative think tank based in Austin, Texas.
Zinke served as a board member and consultant to Santa Barbara-based energy services firm Save the World Air from February 2013 until December 2014. The company, which changed its name to QS Energy in 2015, develops technology designed to increase the efficiency of oil pipelines, according to its website.
Montana Microbrewery
Assets listed by Zinke include a family trust valued at more than $1 million, royalties from a Whitefish Montana microbrewery, Double Tap LLC, for which he serves as a managing member, and an art collection valued between $100,001 and $250,000, according to the disclosure report.
Pruitt's financial portfolio, obtained earlier by Bloomberg but posted by the ethics office over the weekend, is one of the least complicated of Trump's cabinet nominees, primarily made up of mutual fund holdings. Pruitt disclosed his previous role as chairman of the Rule of Law Defense Fund, a group linked to Republican attorneys general that promotes federalism; Pruitt has stepped down from the organization.
Environmental activists have raised concerns with these three picks along with that of Tillerson, arguing that the selections show fossil fuel advocates will have undue access and influence with the incoming administration. Sierra Club Executive Director Michael Brune has called Trump's cabinet-in-waiting a “nightmare for the planet.“
http://news.bna.com/deln/DELNWB/split_display.adp?fedfid=103279037&vname=dennotallissues&fn=103279037&jd=103279037
-
U.S. Shifts LNG Exports To Asia As Arb Opens Up
Jan 11, 2017 | Reuters
By Scott DiSavino
The biggest divergence between U.S. and Asian gas prices in a year has created an opportunity for tankers delivering liquefied natural gas, with most departures from a key Louisiana terminal in the last month-and-a-half heading toward East Asia, shipping data released on Wednesday show.
The facility, Sabine Pass, owned by Cheniere Energy Inc, opened last year as the first LNG export terminal in the U.S. Lower 48 states. The United States has been exporting gas out of Alaska since 1969.
U.S. gas prices at the Henry Hub benchmark in Louisiana this week dropped about 20 percent since hitting a two-year high on Dec. 28, trading around $3.25 per million British thermal units (mmBtu) on Wednesday.
Spot gas in Asia has soared by more than 30 percent since early December to a near two-year high of $9.75 per mmBtu.
The premium of Asia over U.S. gas has reached its highest level since January 2015, presenting an arbitrage opportunity that LNG traders have rushed to fill.
"China is experiencing colder-than-normal conditions, demand has kicked higher and prices have followed," said Matt Smith, director of commodity research at energy data provider ClipperData in Louisville, Kentucky.
In addition, China is looking to avoid previous gas shortages that the country has experienced in the past, Smith said.
Of the 17 LNG vessels that left Sabine Pass in Louisiana since the start of December, at least 10 have either delivered their cargoes in East Asia or were moving in that direction across the Pacific Ocean, data from Reuters and ClipperData show.
Those 10 ships have the capacity to carry about 33.2 billion cubic feet (bcf) of gas, worth about $120.6 million, based on the Henry Hub average. The United States consumes about 75 bcf per day (bcfd) of gas on average.
Those 10 included the first shipments from Sabine to both Japan and South Korea.
Royal Dutch Shell Plc's BG Group has the contract for the part of the capacity for parts of the first and second 0.65-bcfd liquefaction trains at Sabine Pass. Gas Natural Fenosa also has a contract for part of the capacity of the second train.
Since February, 61 vessels have taken cargos from Sabine, but just three vessels delivered LNG to East Asia between February and the end of November. Another 27 went to either South America or Mexico and five to India; the rest were scattered around the Middle East and Europe.
http://www.reuters.com/article/us-usa-asia-lng-idUSKBN14V2KX
-
Senators Go 'Retro' In Bid To Repel Cyberattacks
Jan 12, 2017 | E&E Daily
By Cecelia Smith-Schoenwalder
Members of the Senate Intelligence Committee reintroduced legislation Tuesday aimed at protecting the power grid from cyberattacks by letting people, not computers, do the heavy lifting.
Sens. Jim Risch (R-Idaho) and Angus King (I-Maine) say their bill, S. 79, or the "Securing Energy Infrastructure Act," is "retro" because of its reliance on manual technology.
The measure would create a two-year pilot program to identify security vulnerabilities in the energy sector. For example, the legislation would replace computer-connected operating systems that are vulnerable to cyberattacks with human-operated systems.
The legislation was originally introduced last January in response to the cyberattack on the Ukraine power grid in December 2015. The loss of power only lasted a few hours because operators were able to switch their systems into manual control (Energywire, Jan. 5, 2016).
"More than a year has passed since we saw Ukraine plunged into darkness as a result of a cyber-attack that cut electricity to hundreds of thousands of people," King said in a statement. "Meanwhile, here in the United States, we have been too slow to take meaningful action to protect ourselves from similar attacks."
The bipartisan measure would also create a working group to examine technology solutions proposed by the National Laboratories and develop a national strategy to isolate the grid from attacks. The two-year pilot program would be authorized at $10 million, while the working group would get $1.5 million.
http://www.eenews.net/eedaily/2017/01/12/stories/1060048254
-
Energy Department Urges NatGas Pipeline Cybersecurity Review
Jan 11, 2017 | Natural Gas Intelligence
By Charlie Passut
With natural gas playing an increasing role in power generation, the Department of Energy (DOE) is recommending that it coordinate with other government agencies to determine whether additional cybersecurity protections for the nation's natural gas pipeline network are warranted.
One month after tangling with the incoming Trump administration over a controversial questionnaire sent to DOE officials on climate change, the department laid out 76 policy recommendations in the second installment of its Quadrennial Energy Review (QER), which it released last Friday.
While acknowledging in "Transforming the Nation's Electricity System," also dubbed "QER 1.2," that natural gas "plays an increasingly important role as fuel for the nation's electricity system," the DOE warned that a gas pipeline outage or malfunction caused by a cyberattack "could affect not only pipeline and related infrastructures, but also the reliability of the nation's electricity system."
And while the DOE also lauded Congress for passing, and President Obama for signing, the Fixing America's Surface Transportation (FAST) Act into law in December 2015, the department warned that the types of national security threats envisioned by the law stand "in stark contrast to other major reliability events that have caused regional blackouts and reliability failures in the past.
"In the current environment, the U.S. grid faces imminent danger from cyber attacks, absent a discrete set of actions and clear authorities to inform both responses and threats. Widespread disruption of electric service because of a transmission failure initiated by a cyberattack at various points of entry could undermine U.S. lifeline networks, critical defense infrastructure, and much of the economy; it could also endanger the health and safety of millions of citizens."
Among its recommendations, the DOE called for amending the Federal Power Act even further than the changes enacted under the FAST Act. Congress should "clarify and affirm the DOE's authority to develop preparation and response capabilities that will ensure it is able to issue a grid-security emergency order to protect critical electric infrastructure" from damage, including cyberattacks,” it said.
The DOE also recommended that Congress grant FERC with authority to either modify reliability standards proposed by the North American Electric Reliability Corp. (NERC) or to promulgate new standards on its own, depending on whether lawmakers feel expeditious action by the Federal Energy Regulatory Commission is necessary.
"This narrow expansion of FERC's authority would complement DOE's national security authorities related to grid-security emergencies affecting critical electric infrastructure and defense-critical electricity infrastructure," the DOE said. "This approach would maintain the productive NERC-FERC structure for developing and enforcing reliability standards, but would ensure that the federal government could act directly if necessary to address national security issues."
Another recommendation calls for DOE, in cooperation with FAST Act authorities and FERC, to assess current cybersecurity protections for the nation's gas pipelines and associated infrastructure. Such an assessment would aid the department in determining whether additional measures needed to be enacted to protect pipelines, or if certain measures needed to become mandatory.
"If the assessment concludes that additional cybersecurity protections -- including mandatory cybersecurity protocols -- for natural gas pipelines and associated infrastructure are necessary to protect the electricity system, such measures and protocols should be developed and implemented," the DOE said. "This work should build on existing assessments, including those underway at the Transportation Security Administration (TSA)."
The TSA, part of the Department of Homeland Security, holds regulatory authority for the security of natural gas and hazardous liquid pipelines, but pipeline safety is the dominion of the Pipeline and Hazardous Materials Safety Administration (PHMSA) within the Department of Transportation. PHMSA and the TSA have cooperated on pipeline safety issues since 2004, when the two agencies signed a memorandum of understanding (MOU). An annex to the MOU was signed in 2006.
Last October, a group of environmental activists disrupted operations at five crude oil pipelines in the United States and Canada. According to reports, the activists used bolt cutters to cut padlocks and chains to access remote shutoff valves on pipelines operated by Enbridge Inc., Kinder Morgan Inc., Spectra Energy Partners LP and TransCanada Corp. The pipelines, which collectively can transport 2.8 million boe/d, were restarted within days.
Two individuals were arrested after making separate attempts to blow up natural gas pipelines in Oklahoma in 2011 and in Texas in 2012. Meanwhile, a survey conducted in November 2015 of more than 150 information technology professionals in the oil and gas industry found that 82% had seen an increase in successful cyberattacks in the preceding 12 months.
Trump has nominated former Texas Gov. Rick Perry as secretary of the DOE, despite Perry's pledge on the campaign trail to dismantle the department if he were elected president. According to reports, Perry's confirmation hearing in the Senate may be held next week.
http://www.naturalgasintel.com/articles/109014-energy-department-urges-natgas-pipeline-cybersecurity-review
-
Chao's Hearing A Cozy Chat Among Friends
Jan 12, 2017 | E&E Daily
By Camille von Kaenel
Elaine Chao, President-elect Donald Trump's pick for Transportation secretary, has worked and socialized in Washington, D.C., for decades, and it shows.
Senators from both parties, already addressing her as "madam secretary," heaped praise on Chao at her confirmation hearing yesterday.
They cited her family's immigration story and her previous experience in the Transportation Department and as George W. Bush's Labor secretary but also close personal and social ties — starting with her marriage to Senate Majority Leader Mitch McConnell (R-Ky.).
In response, Chao gave few specifics on her or Trump's transportation agenda, dodging questions on air traffic control, autonomous vehicles, drones and greenhouse gas emissions.
Chao said she "believes" that Trump's goal to build out the country's infrastructure will include direct federal spending.
So far, details for the president-elect's $1 trillion effort are scarce, but advisers have said the money would come largely from the private sector, thanks to around $137 billion in tax credits.
Chao called the declining revenue in the Highway Trust Fund, which gets money from the gas tax and provides funding to transportation projects, a "huge issue."
Sen. Deb Fischer (R-Neb.) said she would be putting a forward a proposal to "spark a conversation on how we'll fund highways" in the coming weeks.
Chao mentioned turning more to public-private partnerships but also acknowledged there was opposition to that. She said the incoming administration was putting together an infrastructure task force to figure out a plan and provide details on funding after Inauguration Day.
Chao said that the one point of agreement between all committee senators she visited was the appreciation for the Transportation Investment Generating Economic Recovery, or TIGER, grants. She suggested the sum was too "modest."Energy infrastructure
Chao remained tight-lipped about any other projects she has for the department. Prodded by Sen. Dan Sullivan (R-Alaska), she wouldn't say whether she would speed up permitting for pipelines and other energy infrastructure.
When pressed by Sen. Tom Udall (D-N.M.) on whether she would continue the Transportation Department's work on curbing greenhouse gas emissions from transportation, she said she was "not familiar with the work."
Under President Obama, the agency set stricter fuel economy standards in conjunction with U.S. EPA to bring average fuel economy for new light-duty vehicles above 50 mpg by 2025. The Obama administration has also started to advance and accommodate electric and alternative fueled vehicles.
Chao recognized that a review of the fuel economy rules would be an "important issue" for the department in the coming years but did not comment further.
At another point, she spoke about the popularity of commuter rail, saying it was "good for the environment."
"I look forward to working with you, if confirmed," she said repeatedly.
Senators made it clear she would face no hurdles to confirmation. Chairman John Thune (R-S.D.) called her an "ideal candidate."
Ranking member Bill Nelson (D-Fla.) praised her "grace and excellence" in her previous government service. "I certainly look forward to you, in this new administration, doing the same," he said.
McConnell set the tone in his introduction of her. "She's got really great judgment ... on a whole variety of things," he said to laughter.
McConnell echoed former Senate Majority Leader Bob Dole, who once introduced his wife Elizabeth Doyle to the Commerce Committee to be President Reagan's Transportation secretary to say, "I regret that I have but one wife to give to my country."
Sen. Rand Paul (R-Ky.) and his wife Kelly also showed up to introduce Chao, calling her a "dear friend." Sens. Jerry Moran (R-Kan.), Richard Blumenthal (D-Conn.) and Nelson sent greetings from their wives, friends of Chao. Sen. Jim Inhofe (R-Okla.) praised Chao's father, businessman James Chao, who was in the audience.
"In the years that I've been here, I've never seen anyone come in to get the nomination for the position that people loved more than you," Inhofe added, pointing to her staff in the Labor Department.
Sen. Brian Schatz (D-Hawaii) joked that the day was "historic." "It was the first time I saw Leader McConnell hug anyone," he said to much laughter.
"I'm glad it was me," she replied.
In her opening statements, Chao joked that she would be "working to lock in the majority leader's support over dinner tonight."
http://www.eenews.net/eedaily/2017/01/12/stories/1060048255
-
Climate Pact Survival Hinges on ‘America First' Vow, Tillerson Says
Jan 12, 2017 | BNA Daily Environment Report
By Dean Scott
President-elect Donald Trump's pick for top U.S. diplomat, Rex Tillerson, said Jan. 11 the U.S. should stay “at the table” on the Paris climate pact and hinted that Trump conceivably could keep the U.S. in the deal—as long as it can be squared with his “America first” campaign vow.
Trump's “priority during the campaign was, ‘America first,’ so there is an important consideration as we commit to such accords and as those accords are executed over time,” the former Exxon Mobil CEO told the Senate Foreign Relations Committee.
Tillerson also sought during his confirmation hearing to allay concerns that State Department employees who have worked on the climate issue might face retaliation in the next administration; he also sidestepped Democrats who demanded he defend allegations that Exxon Mobil worked for decades to quash climate science.
Trump's pick for secretary of state is at odds with the president-elect on the 2015 Paris deal reached by the U.S. and nearly 200 nations, which Trump vowed to “cancel” during the presidential campaign. Under the deal, developed and developing nations agreed for the first time after more than two decades of United Nations talks to take action to address climate change.
The committee's top Democrat, Ben Cardin (Md.), and other Democrats including Ed Markey (Mass.) and Tom Udall (N.M.) repeatedly pressed Tillerson over whether he will press Trump to ultimately abandon his campaign pledge to move the U.S. away from the agreement.
All Elements of Deal Under Consideration?
If he is confirmed, “I'm sure that there will be opportunities [for] the president-elect to get a fulsome review of our policies around climate issues, global accords and agreements. I feel free to express my views to him around those,” Tillerson said, adding that he has already voiced his support for the pact directly to Trump.
“I also know that for the president, part of his priority during the campaign was, ‘America first,‘ so [that] is an important consideration,” Tillerson said, particularly “as we … commit to such accords, and as those accords are executed over time.”
The question, Tillerson said, is “are there any elements of that [deal] that America could participate” in? The former Exxon Mobil CEO, who spent virtually his entire career at the company, would if confirmed succeed Secretary of State John Kerry, a long-time advocate of international climate action who helped negotiate the Paris deal.
Environmental advocates are pressing Democrats on the committee to reject Tillerson due to his long career at Exxon Mobil. But barring some unexpected disclosures or controversies, he is expected to survive a confirmation battle.
A Lonely Advocate?
Tillerson is seen as a lonely advocate of the climate pact in the incoming administration; ExxonMobil welcomed the deal's entry into force in November as an “important step forward by world governments” to confront “the serious risks of climate change.”
“I think it's important that the United States maintain its seat at the table on conversation around how to address the threat of climate change,” Tillerson said at the first of what could be a two-day hearing. The nature of the climate threat requires such “a global response,” he said, adding “no one country is going to solve this alone.”
Foreign Relations Committee Chairman Bob Corker (R-Tenn.) reiterated late in the day that he expects to resume Tillerson's confirmation hearing Jan. 12.
Retaliation a ‘Pretty Unhelpful’ Start
Udall pressed the nominee toward the end of the all-day hearing whether the American people would be better served by the U.S. being in or out of the Paris deal, which countries expect to implemented over the next two to three years through talks under the UN Framework Convention on Climate Change.
“I think we're better served at being at that table than leaving that table,” Tillerson said.
Udall also asked the nominee for secretary of state if he would “persecute” State Department career employees who worked to address climate change.
“No sir. That would be a pretty unhelpful way to get started,” Tillerson responded.
Tillerson also said he continues to support a tax on the carbon content of fossil fuels as the best policy approach for addressing climate change, although he stressed that his former company backed that approach in the context of an ill-fated congressional effort in 2009 and 2010 to pass cap-and-trade legislation.
There is little appetite for a cap-and-trade bill or other climate legislation in the Republican-led House and Senate, although climate advocates are hopeful a carbon tax might be put on the table in any broad tax reform package.
Tillerson said he'd continue to support the carbon tax approach in part because it would replace a “hodgepodge” of other policies and tax credits that in the end are less efficient.
A second “qualifier,” Tillerson said, is that any such tax would have to be revenue-neutral, returning all of the funding raised to taxpayers, such as through reduced payroll taxes. “It's not a revenue raiser,” Tillerson said.
http://news.bna.com/deln/DELNWB/split_display.adp?fedfid=103279046&vname=dennotallissues&fn=103279046&jd=103279046
-
'America First' To Guide Paris Plan Prospects — Tillerson
Jan 12, 2017 | E&E Daily
By Hannah Hess
Rex Tillerson's support for the Paris climate agreement appears to hinge on the "America first" vision on which President-elect Donald Trump campaigned.
The former Exxon Mobil Corp. CEO believes the Trump administration should "maintain a seat at the table" for international climate negotiations so it can keep tabs on whether other big polluters are committed to cutting their greenhouse gas emissions and "adjust our own course accordingly," he said yesterday.
Tillerson repeatedly affirmed his belief in man-made climate change over the course of eight hours of testimony before the Senate Foreign Relations Committee on his nomination to lead the State Department. But he left the door open to pulling out of the deal or not following through on its carbon-slashing goals if they put U.S. businesses at a competitive disadvantage.
"Countries that attempt to influence this by acting alone are probably only harming themselves," Tillerson said. He later added, "If America is the only one that's willing to lead, then my conclusion is the rest of the world doesn't think this is important."
Democrats said after the hearing that Tillerson's answers on climate raised alarm.
His responses to queries about the oil giant's record on human rights, the Iraq War and sanctions against Iran led Sen. Chris Murphy (D-Conn.) to conclude Tillerson is "not prepared" to be secretary of State.
Sen. Ben Cardin (D-Md.), ranking member of the panel, said Tillerson's remark that the Paris Agreement "looks like a treaty" was "an overreach." Cardin told E&E News several parts of Tillerson's testimony "raised concern."
However, Tillerson's nomination may be on the path to quick approval in the Senate.
Senate Majority Leader Mitch McConnell (R-Ky.) and Minority Leader Chuck Schumer (D-N.Y.) are working on a deal to allow Trump's "national security team" to be confirmed when the president-elect takes office.
That includes Tillerson, Republican Whip John Cornyn (R-Texas) said yesterday, and Trump's picks to head the CIA and the departments of Homeland Security, Defense and Justice.
"I don't know anybody who would want to be responsible for delaying Trump getting his national security team in place, only to have our adversaries take advantage of that by thinking they can do something that hurts the United States when the president really needs his team in place," Cornyn said yesterday.
Republicans hold a one-seat advantage on the Foreign Relations Committee.
Chairman Bob Corker (R-Tenn.) concluded the hearing yesterday, ditching plans to drag Tillerson before the committee for a second day of questioning.
"I think everything was covered well," Corker told reporters. "He ran a major company around the world and obviously people have a lot of questions. He's done a great job of extracting himself from that, if he's confirmed, as he should be — and as everyone expected that he would."Support for LNG exports, crude oil, coal
If confirmed, Tillerson may be one of the only members of Trump's energy and environment policy team who sees climate change as an imminent threat. He would play an active role on energy diplomacy (Greenwire, Jan. 11).
"Energy is vital to every economy the world over so it can be used as a powerful tool to influence, kind of tip the balance of the table in one party's direction or the other," Tillerson said in response to a question from Sen. John Barrasso (R-Wyo.) about an oil pipeline between Russia and Germany.
Proponents of liquefied natural gas exports urged the Energy Department to act promptly on applications, based on worries that Europe could become more dependent upon Russia.
Tillerson commended government policies that have made it easier to sell domestic natural resources abroad, including a provision in year-end spending legislation that allowed crude oil exports.
"I think from a policy standpoint, it's engaging with countries to make sure they understand they have choices and what these choices are — what can we do in foreign policy to help them gain access to multiple choices so they're not captive to one or a dominant source," Tillerson said.
Asked whether he would support policies to help develop renewable energy, Tillerson said that was "largely a trade issue." American companies should be able to participate in the global market and sell to countries that choose those sources, he said.
Tillerson also expressed support for the construction of coal-fired power plants in developing countries. The World Bank has committed to cut funding for the carbon-intensive sector.
"Nothing lifts people out of poverty faster than electricity ... whatever is the most efficient, effective way to deliver electricity to these areas that don't have it, that should be the choice, and that is the wisest use of American dollars," Tillerson said.Green Climate Fund, Exxon investigations
Republicans who oppose the Obama administration's climate agenda seemed pleased by Tillerson's suggestion that Trump would recognize the "proper role" of the Senate to weigh in on international agreements.
Sen. Ron Johnson (R-Wis.), who has called himself a "skeptic" of man-made climate change, wished Tillerson well, after he agreed that the Paris Agreement "looks like a treaty."
Barrasso asked Tillerson to commit to ensuring that no funding would go toward the United Nations' Green Climate Fund, which aims to help poorer nations mitigate the effects of climate change. Barrasso said there are "so many examples where money could be better spent."
Tillerson replied, "In consultation with the president, my expectation is that we're going to look at all these things from a bottom-up in terms of funds we've committed towards this effort."
Meanwhile, Democrats pressed their climate priorities. Sens. Jeff Merkley of Oregon, Ed Markey of Massachusetts and Tim Kaine of Virginia all tried to drill down on Tillerson's views on carbon emissions.
"It's overwhelmingly — the scales are on one side of this argument," Merkley said, describing the impact of forest fires, storms and sea-level rise on the United States. He questioned whether Tillerson agrees with military leaders and intelligence officials that climate change is a threat to global security (Greenwire, Jan. 10).
Tillerson said, "I don't see it as the imminent national security threat that perhaps others do."
Climate activists, who showed up to protest during the first half of the hearing, hoped the hearing would turn into a cross-examination of Exxon's stance on the issue. The oil giant started investigating global warming 40 years ago, and those scientific findings are now the subject of investigations by state attorneys general in New York and Massachusetts.
Tillerson diverted questions about his former employer, and in one case said he had to talk to a lawyer about whether there were confidentiality agreements related to what he could say about the cases.
Tillerson repeatedly emphasized he feels "free" to express his view on climate to Trump.
Meanwhile, in a victory for those investigating Exxon, a Massachusetts judge yesterday ordered the company to hand over a trove of documents to Attorney General Maura Healey (D).
"Rex Tillerson may be trying to make his getaway, but it's good to see that the courts may yet hold Exxon responsible for the damage it's done to this planet and to our democracy," said 350.org co-founder Bill McKibben.
"It was astonishing to watch Tillerson dodge and weave, almost as if he hadn't spent his entire career at Exxon Mobil. Apparently, alongside the climate damage it causes, long-term exposure to Big Oil impairs your memory," McKibben added.Russia
The sharpest line of questions yesterday came from Sen. Marco Rubio (R-Fla.), who pressed Tillerson to denounce the behavior of Russia, China, Saudi Arabia and the Philippines.
Rubio told Tillerson "moral clarity" is crucial to the job and pressed him to call out Russian President Vladimir Putin for human rights abuses and trying to hack the U.S. election.
Tillerson said he had not talked in depth with Trump about Russia, where Exxon holds massive shares of energy leases.
"Sanctions are not a strategy; sanctions are a tactic," Tillerson said in response to a line of questions related to a bill that would mandate sanctions on Russia's energy sector (E&E News PM, Jan. 10).
Tillerson said the United States needs to aggressively confront Putin but did not commit the Trump administration to sticking with or increasing sanctions. He said the United States has other tools for trade, immigration and visa exchange, in addition to "hard power," to respond to aggression.
"Having ineffective sanctions is worse than having no sanctions at all because it sends a weak signal to the target country," Tillerson said.
Tillerson also said he never lobbied against Russian sanctions, "and to my knowledge Exxon Mobil never lobbied against the sanctions." He later acknowledged speaking directly to the Obama administration about the matter.
Exxon was in the midst of drilling a well in a very remote part of the western Arctic when U.S. sanctions against Russia over its annexation of Crimea went into effect, Tillerson noted. He said he engaged with the departments of State and Treasury to explain "there was significant risk to people and the environment ... and we were going to comply with the sanctions."
Compliance meant immediate evacuation of people and equipment, he said. It took about five days for the government to understand that, Tillerson added, and during the evaluation Exxon Mobil "stood still." Eventually the company was granted a temporary license to get all the people and equipment subject to sanctions out of the country.
"That was my direct engagement ... in dealing with an effect of the sanctions," he said. "The characterization that Exxon Mobil lobbied against these sanctions is just not accurate."
It was unclear last night whether Rubio would support the nomination.
Schumer said Tillerson's testimony was "incredibly troubling," especially on the issue of sanctions.
The minority leader added that he was "appalled" that Tillerson has not discussed Russian policy with Trump "and disheartened by the kid-gloves with which he appears to treat Russia and potentially other countries of concern."
http://www.eenews.net/eedaily/2017/01/12/stories/1060048253
-
Brown Seeks Law Authorizing GHG Cap & Trade After 2020
Jan 12, 2017 | Inside EPA
California Gov. Jerry Brown (D) says he will propose “urgency legislation” to authorize the extension of the state's pioneering greenhouse gas cap-and-trade program beyond 2020, in part to reduce legal uncertainty about the program's future that has led to significantly under-subscribed allowance auctions in recent months.
A chief source of uncertainty for the program is a pending industry lawsuit that alleges that the auctions are taxes, and as such they are illegal because the 2006 legislation authorizing the program -- AB 32 -- did not receive a two-thirds vote of approval by state lawmakers. Under state law, a two-thirds vote is required to levy new taxes.
An eagerly awaited oral argument hearing in the consolidated state appellate court case -- Morning Star Packing Company, et al., v. CARB, et al., and California Chamber of Commerce v. CARB -- is scheduled for Jan. 24.
Brown made the announcement Jan. 10 as part of his proposed 2017-18 state budget, which would spend $2.2 billion from GHG auction proceeds on emission-reduction programs, with a continued emphasis on low-income and disadvantaged communities.
“California's one of the leading forces of the world in dealing with climate change,” the governor said during a Jan. 10 press conference. “Cap-and-trade is not the whole response, but it is an important program, and it generates important funds. And I'm going to work very hard to win legislative approval for that program.”
Urgency legislation requires a two-thirds vote of approval by California lawmakers, which would provide the certainty needed to overcome any potential legal vulnerability should the court rule the auctions are taxes.
Because Democrats in the state Senate and Assembly hold a two-thirds majority, observers say Brown has a decent chance of succeeding with his proposal.
However, some Democrats who are sympathetic to environmental justice organizations that oppose the California Air Resources Board's (CARB) cap-and-trade program could potentially thwart the governor's initiative.
Aiming to counter this potential opposition, Brown's proposed budget states that the $2.2 billion in cap-and-trade revenue will only be allocated in the coming year “after legislation confirming the Air Board’s authority to administer the Cap and Trade Program beyond 2020 is enacted through a two-thirds vote.”
Legislation enacted in last year's legislative session -- SB 32 -- codified Brown's 2030 GHG target of 40 percent below 1990 levels. Observers are divided over whether provisions in that bill and a companion law implicitly authorize CARB to continue operating cap-and-trade after 2020.
But the governor's proposed bill for the new session has the potential to settle such questions and could render the industry lawsuit moot.
During the Jan. 10 press conference, Brown also repeated his recent declarations that California's GHG programs are more important than ever given expectations that the Trump administration will shelve many of President Obama's climate initiatives.
“I would think that, given the fact that the federal government seems to be going in the opposite direction, that Californians may want to strengthen their own commitment, because the world is really looking to us,” he said. “And given the fact that California now is part of a worldwide coalition of more than 160 states, regions and even countries, that we ought to continue and not fall back in our efforts.”
Asked how California plans to respond to “climate change denial” in the Trump administration, Brown said: “We're going to respond by continuing our efforts to do what we're doing and even embrace more efforts as they become available and plausible.”
He added that he is “very optimistic that what's going on in Washington is a pause, not a new direction.”
https://insideepa.com/daily-feed/climate-brown-seeks-law-authorizing-ghg-cap-trade-after-2020
Industry and Association News
LCSA News
Chemical Management News
Energy News
Chemical Security News
Transportation News
Environment News
Add recipients
Suggested