Preview Newsletter
ACC PM 3/2/2017
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(ACC Mentioned) Nafta Renegotiation an Opportunity for Regional Risk-Based Regulation, Chemicals Bodies Say
Mar 2, 2017 | Chemical Watch
By Kelly Franklin
A renegotiation of the North American Free Trade Agreement (Nafta) presents an opportunity to set a “global precedent” for using a risk-based approach to chemical regulation, according to a joint statement from chemical industry groups in the US, Canada and Mexico. -
(ACC Mentioned) Commentary: Trump Speech to US Congress Ignites Chemical Stock Rally
Mar 2, 2017 | ICIS
By Joseph Chang
US President Donald Trump’s first speech to the joint session of Congress revealed little detail to his platform policy issues, but sparked a big rally in the US equity market on continued hopes for business friendly changes along with a change in tone directed towards compromise. -
(ACC Mentioned) Report: How Logistics Congestion is Stifling the Chemical Industry's Growth
Mar 2, 2017 | Supply Chain Dive
By Edwin Lopez
The U.S. chemical industry has generated 264 new projects and approximately $161 billion in capital investment in the past seven years, the American Chemistry Council reports. -
(ACC Mentioned) PE, PP, PVC Prices on the Rise
Mar 2, 2017 | Plastics News
By Frank Esposito
February is a short month, but North American producers of polyethylene, polypropylene and suspension PVC resins still found plenty of time to raise prices. -
Senate Advances Rick Perry to be Energy Secretary
Mar 2, 2017 | The Hill - E2 Wire
By Jordain Carney
The Senate voted Thursday to forward with Rick Perry's nomination to be Energy secretary. -
(ACC Mentioned) More Robust PMNs Will Speed EPA Reviews, Official Says
Mar 2, 2017 | Chemical Watch
By David Stegon
The US EPA says that providing a “more robust” pre-manufacture notice (PMN) submission will help expedite substance reviews under the newly reformed TSCA new chemicals programme. -
EPA Attorney Speaks About Toxic Substance Control Act
Mar 2, 2017 | Cavalier Daily
By Tomoya Kanno
The environmental science department hosted a talk Feb. 28 on the Toxic Substance Control Act given by Mark Garvey, attorney at the Environmental Protection Agency’s Office of Civil Enforcement. -
If You Are What You Eat, Are We Making Children Nonstick?
Mar 2, 2017 | Environmental Working Group
By David Andrews
According to the Centers for Disease Control and Prevention, on any given day one in three American children – no matter their age, race or family income – eat fast food. Hamburgers, french fries, burritos, pizza and other fast food items are often served in paper wrappers or boxes coated with grease-repellent perfluorinated chemicals, or PFCs, that may harm children’s health. -
Retailer Boots to Stop Selling Products Containing Microbeads
Mar 2, 2017 | Chemical Watch
By Tammy Lovell
Pharmacy chain store Boots will stop purchasing and selling products containing plastic microbeads from December. -
UK Chemicals Bodies Moot 'Mutual Agreement' on Authorisation
Mar 2, 2017 | Chemical Watch
By Luke Buxton
The UK could seek a 'mutual agreement' with the EU to mirror elements of the REACH authorisation process in UK law, national chemical trade bodies told a UK parliamentary inquiry. -
Echa Recommends Seven SVHCs for REACH Annex XIV
Mar 2, 2017 | Chemical Watch
By Luke Buxton
Echa has opened a consultation on its draft eighth recommendation to add seven priority substances to the authorisation list. -
Echa Sent Back to Drawing Board on Nanoform Information Requests
Mar 2, 2017 | Chemical Watch
By Geraint Roberts
A group of titanium dioxide producers have won an appeal against an Echa Decision asking them to give detailed information about the substance's nanoform as part of the information required on substance identity. -
Echa Round-Up
Mar 2, 2017 | Chemical Watch
The Board of Appeal has revised its practice directions to guide parties involved in appeal proceedings. The move was necessary to take into account recent changes to the Board's procedure rules, as well as to incorporate feedback from stakeholders and experience gained. -
Exxon CEO Places Bigger Bet on U.S. Shale in 2017
Mar 2, 2017 | E&E Energywire
By Nathanial Gronewold
U.S. shale oil will dominate Exxon Mobil Corp.'s activity in 2017 as global megaprojects take a back seat, the company's new CEO told investors yesterday. -
Trump's Justice Department Files First Motion in Ongoing Case
Mar 2, 2017 | E&E Greenwire
By Amanda Reilly
The Trump administration yesterday filed its first motion in the massive ongoing Clean Power Plan litigation. -
Senate Must Vote Against Roll Back of BLM Methane Waste Rule
Mar 2, 2017 | The Hill - Congress Blog
By Jonas Kron
Before we invest in a sector, we try to identify companies best positioned to deliver strong, stable financial returns. We are dedicated to our clients who trust us to manage their money for the long-term. -
Occidental’s Massive Petrochemical Plant Comes Online in Texas
Mar 2, 2017 | Fuel Fix
By Jordan Blum
The first of several new petrochemical plants coming online this year became operational this week when Houston-based Occidental Petroleum opened its new facility near Corpus Christi. -
EPA Chief Defends Grant Programs WH is Eyeing for Cuts
Mar 2, 2017 | The Hill - E2 Wire
By Devin Henry
Environmental Protection Agency (EPA) Administrator Scott Pruitt says he is urging the White House not to cut funding for several grant programs the Trump administration has targeted. -
Green Success Stories Critical to Budget Battle — Pruitt
Mar 2, 2017 | E&E Greenwire
By Kevin Bogardus and Emily Holden
U.S. EPA Administrator Scott Pruitt pleaded with mayors this morning to share their environmental success stories with his agency. -
'Anemic' Demand for Cap-and-Trade Permits Plagues State
Mar 2, 2017 | E&E Climatewire
By Debra Kahn
California's latest auction of greenhouse gas permits saw low demand, hurting state revenue, according to figures released yesterday.
Industry and Association News
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Mar 2, 2017 | Chemical Watch
By Kelly Franklin
A renegotiation of the North American Free Trade Agreement (Nafta) presents an opportunity to set a “global precedent” for using a risk-based approach to chemical regulation, according to a joint statement from chemical industry groups in the US, Canada and Mexico.
President Donald Trump has named renegotiation of Nafta as a priority for his administration. But he has also pledged to withdraw from the trade agreement if Mexico and Canada “refuse a renegotiation that gives American workers a fair deal”, according to whitehouse.gov.
The groups say that if Nafta is revised, and “at a time when the use of hazard-based approaches is rising elsewhere, the North American region has an opportunity to play a leadership role in demonstrating the value and practicality of chemical regulatory approaches that ensure the protection of human health and the environment, without imposing unnecessary costs or erecting unnecessary barriers to trade.”
A "modernised" Nafta, they say, could set a global precedent as a model for a risk- and "science-based" approach to chemical regulation.
The joint statement – issued by the Chemical Industry Association of Canada (CIAC), the Mexican Chemical Industry National Association (Aniq) and the American Chemistry Council (ACC) – promotes a revised trade agreement that includes enhanced regulatory cooperation.
This could include areas already under consideration in the US-Canada Regulatory Cooperation Council (RCC), such as aligning on classification and labelling procedures and streamlining approaches for new chemicals regulatory approvals.
“A more efficient and effective North American regulatory environment would provide a significant boost to innovation, growth and jobs, while ensuring that regulatory objectives are achieved to increase the overall health and safety for end use of products,” the trade groups add.
The call for a risk-based approach to serve as a global model is in line with remarks from the ACC’s president and CEO Cal Dooley who, last week, expressed the hope that a well-implemented TSCA could be promoted internationally as the “superior alternative” for chemicals regulations.
The ACC declined to respond to a Chemical Watch inquiry on whether it was referring to any hazard-based regulator regimes in particular, but pointed to the "EU system to find some examples of such approaches there".
The trade group has also taken aim at international hazard-based approaches, such as the criteria used by the International Agency for Research on Cancer (Iarc).
https://chemicalwatch.com/53951/nafta-renegogiation-an-opportunity-for-regional-risk-based-regulation-chemicals-bodies-say
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(ACC Mentioned) Commentary: Trump Speech to US Congress Ignites Chemical Stock Rally
Mar 2, 2017 | ICIS
By Joseph Chang
US President Donald Trump’s first speech to the joint session of Congress revealed little detail to his platform policy issues, but sparked a big rally in the US equity market on continued hopes for business friendly changes along with a change in tone directed towards compromise.
Most relevant to the US chemical industry are corporate tax reform, including a potential border adjustment tax (BAT); infrastructure spending; and rollbacks of regulations, including on energy development – all of which Trump touched upon.
On taxes, Trump alluded to a potential border tax or BAT without mentioning them by name. “Currently, when we ship products out of America, many other countries make us pay very high tariffs and taxes. But when foreign companies ship their products into America, we charge them almost nothing,” said Trump.
A border tax would be a simple tax on all imports, essentially a tariff that would raise their cost. A BAT could exempt US exports from taxes, while not allowing imported raw materials or cost of goods sold (COGS) to be deducted as an expense for tax purposes. The BAT, which is being talked about in Congress, would incentivise companies to build plants in the US to export goods, and heavily penalise the use of imported materials.
This could have massive implications for chemicals and polymers supply chains where companies – and not just those in chemicals – would be highly incentivized to source local raw materials and eschew imports.
On trade protectionism, Trump quoted the first Reublican president, Abraham Lincoln, who warned that “abandonment of the protective policy by the American government [will] produce want and ruin among our people.”
Whether or not a protectionist tax regime would pass Congress is one thing, but we should fully expect a border tax or BAT to be proposed.
US CHEMICAL TRADE
The US chemical industry, excluding pharmaceuticals (all of the following data exclude pharma), has a substantial surplus in global trade. This surplus amounted to $28.2bn in 2016, according to statistics compiled by the American Chemistry Council (ACC).
Mexico, the target of much of Trump’s talk on trade protectionism, is the second largest destination for US chemical exports ($19.2bn in US exports) behind Canada, and accounts for more than half of the total US trade surplus in chemicals ($14.6bn) – by far the most of any other country.
That represents a major risk in the event of retaliatory trade measures by Mexico, as well as other countries.
Purely from a tax standpoint, a US BAT would be a net positive for the US chemical industry, but a trade war would be very negative.
INFRASTRUCTURE PLANS
Trump also reiterated his commitment to a massive infrastructure plan, asking Congress to “approve legislation that produces a $1 trillion investment in the infrastructure of the United States, financed through both public and private capital, creating millions of new jobs.” The programme would be “guided by two core principles: buy American, and hire American”.
That would favour US chemical companies or those with chemical plants in the US that would provide the polymers, coatings, adhesives, solvents and other materials used in the construction of critical infrastructure – from roads, bridges, railways and airports, to energy and telecom assets.
REGULATION ROLLBACK
On regulations, Trump reiterated his commitment to rolling them back to help US business. The administration recently cleared the way for the construction of two major crude oil pipelines – the Keystone XL pipeline and the Dakota Access Pipeline.
Any rollback of regulations that promotes the development of more energy resources would be a benefit to the US chemical sector as well.
Chemical stocks, as part of the industrial group, did far better than the overall market, with notable gains for Ingevity (+5.7%), Tronox (+4.4%), Westlake Chemical (+4.3%), Trinseo (+3.8%), Olin (+3.7%), Chemours (+3.2%), OMNOVA Solutions (+3.2%) and LyondellBasell (+2.9%). On the infrastructure theme, Ingevity’s asphalt paving chemicals likely gained the attention of investors.
https://www.icis.com/resources/news/2017/03/02/10084436/commentary-trump-speech-to-us-congress-ignites-chemical-stock-rally/
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(ACC Mentioned) Report: How Logistics Congestion is Stifling the Chemical Industry's Growth
Mar 2, 2017 | Supply Chain Dive
By Edwin Lopez
Dive Brief:
The U.S. chemical industry has generated 264 new projects and approximately $161 billion in capital investment in the past seven years, the American Chemistry Council reports. Roughly 426,000 new jobs and $301 billion in new economic output are expected as a result.
However, logistics shortcomings affecting truck, rail, and marine transport are poised to negatively impact the industry via $22 billion in excess inventory due to transportation delays; capital expenditures of $23 billion for equipment and infrastructure, and an increase of operating costs of $29 billion.
The roots of the shortcomings — such as a driver shortage, overregulation or a lack of investment — are often systemic in nature and require active participation from manufacturers, logistics providers and government officials alike.
Dive Insight:
When it comes to freight and manufacturing, an old tenet often holds true: volume leads growth. But what happens when volumes rise so much, congestion becomes the norm and customer service suffers?
According to the American Chemistry Council's report, the chemical industry fears the hypothetical issue may become a reality by 2020. The industry is expected to produce 18% more in capacity, or 53 million metric tons per year by that year, with most new projects launching within the next two years. Yet, road and port projects have been slow to keep up, and over 50% of industry respondents fear congestion will increase on all coasts.
The chemical industry is unduly affected by logistics, given the tight temperature controls and complexity of hazmat transfers. In particular, the industry has voiced concerns over regulations on truckers' hours of service and hazmat training stifling the trucking industry's capacity; 61% of chemical shipments travel by truck. In addition, the industry seemingly remembers the 2015 West Coast port strike delaying shipments for days, noting delays drive down profits all around.
The industry's growth, then, may depend especially on the importance placed on infrastructure upgrades under the next administration. Fortunately, as recently as Tuesday President Donald Trump reinforced his promise for a $1 trillion investment in infrastructure — which per a leaked list of projects would include investments on all modes of transport — financed by both public and private investment.
However, a stacked congressional agenda may delay the approval of such a bill until 2018, and leave countless industries to continue struggling in the meantime. Only time will tell, but the chemical industry is not alone in its concerns that volume will continue to increase without the infrastructure needed to guarantee economic growth.
http://www.supplychaindive.com/news/case-study-infrastructure-logistics-chemical-boom-slow/437195/
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(ACC Mentioned) PE, PP, PVC Prices on the Rise
Mar 2, 2017 | Plastics News
By Frank Esposito
February is a short month, but North American producers of polyethylene, polypropylene and suspension PVC resins still found plenty of time to raise prices.
Average selling prices for all three materials are up since Feb. 1, according to buyers and market watchers contacted by Plastics News. Prices for all grades of PE are up an average of 5 cents per pound, while PP prices have climbed 6.5 cents and PVC prices have increased 4 cents.
Price hikes for all three materials are tied into a combination of higher demand, tight supplies and higher feedstock costs.
The February PE hike “was a bit of a rebound from the decreases from the end of last year,” according to David Barry, a market analyst with the PetroChem Wire consulting firm in Houston.
“January [PE] demand sounds like it was very strong, even though there wasn’t much export activity,” he said. “And February started with a lot of spot [sales] activity, although that slowed down later in the month.”
Regional PE prices had been flat in January, but a February price increase was expected because of higher prices for ethylene feedstock. Prices for the material fell an average of 2 cents per pound in December, but were up a net of 4 cents for full-year 2016. PE makers now are seeking increases of 6 cents per pound set for March 1.
The regional PE market is bracing for large amounts of new capacity that are set to come online this year on the U.S. Gulf Coast. At least 6 billion pounds of new capacity is set to arrive this year, although some market watchers have speculated some of these moves may be delayed.
Through November, U.S./Canadian high density PE sales were up just over 2 percent, according to the American Chemistry Council, with low density PE sales down more than 2 percent and sales of linear low density PE up only 0.3 percent.
North American PP prices jumped 6.5 cents in February, following an increase for polymer-grade propylene feedstock. It’s the second straight significant monthly price increase for PP resin, following a 10-cent jump in January.
These moves are a sharp reversal from a combined 11.5 cents in price drops that market had seen in the last three months of 2016. More hikes could be in store for March, sources said, as propylene remains in tight supply.
“Propylene inventory could be at a historical low by the end of March,” one major U.S. PP buyer told Plastics News. “This doesn’t bode well for propylene pricing coming down quickly.”
The buyer added that refinery and steam cracker turnarounds “are hurting the situation, as well as economics not favoring butane or propane as feedstocks.”
New propylene supply from Enterprise Petrochemicals in Mont Belvieu, Texas, was expected to alleviate the situation, but that project now isn’t expected to come online until mid-year.
North American PP sales were up only 0.4 percent for full-year 2016, according to ACC. Domestic sales fell 2.5 percent, with exports surging up 114.8 percent.
In the North American PVC market, the 4-cent February hike was expected, based on the same ethylene price movements that sent PE prices up. It was the first market movement for PVC since November, when producers essentially gave back a 2 cent increase they had won in October. Prior to those two moves, regional PVC prices had been flat for four consecutive months.
For full-year 2016, North American suspension PVC prices were up a net of 7 cents per pound. PVC sales in the U.S. and Canada enjoyed a solid year in 2016, growing more than 4 percent to more than 15 billion pounds, according to ACC. Domestic sales were up almost 4 percent, with exports up almost 6 percent.
“I’m optimistic on domestic demand for 2017,” an executive at a PVC maker told PN. “I think it will be steady, but not gangbusters. The skilled labor shortage is a real problem.”
Construction-related uses accounted for more than 63 percent of U.S./Canadian PVC sales in full-year 2016. U.S. housing starts grew almost 5 percent for the year to just under 1.17 million. That marked the seventh straight annual increase for the market, which had bottomed out at 554,000 in 2009. U.S. housing starts had been as high as 2.07 million in 2005.
http://www.plasticsnews.com/article/20170302/NEWS/170309971/pe-pp-pvc-prices-on-the-rise
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Senate Advances Rick Perry to be Energy Secretary
Mar 2, 2017 | The Hill - E2 Wire
By Jordain Carney
The Senate voted Thursday to forward with Rick Perry's nomination to be Energy secretary.
Senators voted 62-37 to get his nomination over an initial procedural hurdle, setting up a final vote for Perry as early as Friday if senators fail to reach a deal to speed up his nomination.
Democratic Sens. Mark Warner (Va.), Joe Manchin (W.Va.), Heidi Heitkamp(N.D.), Tom Udall (N.M.), Catherine Cortez Masto (Nev.), Debbie Stabenow(Mich.), Claire McCaskill (Mo.), Jon Tester (Mont.), Ben Cardin (Md.) and Joe Donnelly (Ind.), and Independent Sen. Angus King (Maine), voted with all present Republicans to back Perry.
GOP Sen. Johnny Isakson (Ga.) was not present.
Majority Leader Mitch McConnell (R-Ky.) predicted ahead of the vote that Perry would get bipartisan support, adding that once the former Texas governor is confirmed, he can "begin leading on smarter policies at the Energy Department."
Perry wasn't included on a list of top targets from Democrats.
The Senate's Energy and Natural Resources Committee voted 17-6 to approve Perry’s nomination in late January, sending it to the full Senate.
Perry pledged to abolish the Energy Department when he was running for president in 2011 — notably forgetting the department’s name during a debate while listing the agencies he wanted to cut.
He was forced to walk back that pledge during is confirmation hearing, instead saying he would focus on updating the country's nuclear arsenal and research activities.
“I am committed to modernizing our nuclear stockpile, promoting and developing American energy in all forms, advancing the department’s critical science and technology mission and carefully disposing of nuclear waste,” Perry said during his hearing.
Democrats also raised concerns about Perry's position on climate change. The former governor says he believes in it, but doesn't know how much influence humans have had.
Trump praised Perry last year as a potential 2018 challenger to Sen. Ted Cruz (R-Texas). Democrats have publicly fretted about whether Perry would be able to stand up to or influence the president.
Sen. Maria Cantwell (D-Wash.) said during the confirmation hearing that she worried about Perry's ability to influence the White House and Trump's inner circle of advisers.
"The governor’s responses for the record left me wondering whether he would stand up to fight the White House’s approach to these programs," she said.
http://thehill.com/policy/energy-environment/321975-senate-advances-rick-perry-to-be-energy-secretary
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(ACC Mentioned) More Robust PMNs Will Speed EPA Reviews, Official Says
Mar 2, 2017 | Chemical Watch
By David Stegon
The US EPA says that providing a “more robust” pre-manufacture notice (PMN) submission will help expedite substance reviews under the newly reformed TSCA new chemicals programme.
Since the amended TSCA took effect last summer, both industry and the EPA have been frustrated by the length of time it is taking to bring new chemicals to market. A rise in consent orders has slowed the review process, causing delays and issues up and down the supply chain.
Speaking at the American Chemistry Council’s (ACC) GlobalChem conference in Washington DC, Greg Schweer, chief of the US EPA’s new chemical management branch, said that the EPA has been speeding up of late.
In the last six months, the agency has issued action letters for nearly 300 chemicals, which he said is five times the amount it was doing annually before the new law came into effect. It has also signed 50 consent orders – almost double what the agency had previously done in a year.
“We’re picking up the pace, and I think things will continue to move faster,” Mr Schweer said.
But to improve the EPA’s ability to process PMNs, Mr Schweer said submitters should include more detail whenever possible. That includes aspects such as the physico-chemical properties – like water solubility, vapour pressure, and melting and boiling points – and information on a substance’s transport and disposal.
He also suggested they provide detailed descriptions of actual consumer and commercial uses, including exactly how a product will be used (for example, if it is applied via a spray or a brush).
He also called on industry to try and anticipate information the EPA might want to know. For example, if a chemical comes in a powdered form, the agency will want to know any potential inhalation risks.
https://chemicalwatch.com/53967/more-robust-pmns-will-speed-epa-reviews-official-says
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EPA Attorney Speaks About Toxic Substance Control Act
Mar 2, 2017 | Cavalier Daily
By Tomoya Kanno
The environmental science department hosted a talk Feb. 28 on the Toxic Substance Control Act given by Mark Garvey, attorney at the Environmental Protection Agency’s Office of Civil Enforcement. This seminar was part of the EVSC 4002 lecture series hosted every Tuesday at 4 p.m. in Clark Hall, Room 108.
The seminar focused on the role of the TSCA from its inception to the present. The talk began with a discussion on chemicals in general and why the TSCA arose in 1976.
“We had some events going on in the ‘60s and ‘70s that really energized the environmental movement,” Garvey said. “A lot of it was around chemicals ... being found in foods, in schools. Do you think about what this school is made of? When you think about the chemicals that are in the carpet, the table, the paint, the dyes … what are these chemicals? Are they safe?”
Garvey said the TSCA exercises authority over more organic or inorganic chemicals and the aim of the TSCA is to identify any risky chemicals before they make it onto the market.
“We’re not going to wait until the PCBs are in our food — the mercury is affecting the children,” Garvey said. “We’re not going to wait until things are so contaminated that everybody on earth has perfluorinated chemicals in them — which is a manmade chemical — and it’s at a level in which you’d expect some sort of health effect.”
Garvey said the risk of chemicals is dependent on toxicity and exposure. He used the company DuPont’s infamous toxic chemical PFOA as an example of a Persistent Biomagnifying and Toxic chemical.
Garvey said biomagnification is the most dangerous aspect of PBTs.
“A chemical is designated as a PBT if — at such a small dose — even a child crawling around picks up enough of a dose and accumulates enough [of the it] that it becomes a problem,” Garvey said. “[At that point] we say this chemical cannot be in imported goods.”
Garvey also said the EPA’s work with the chemical PFOA — which started in the 1990s — has resulted in a 41 percent decline of the compound in people's blood.
Regarding the continued presence of other chemicals widely considered as risky — such as PCBs, mercury and asbestos — Garvey said the TSCA was required to take a route of “least burden” to the manufacturer when reviewing chemicals already on the market.
However, he concluded the seminar by explaining recent changes to the TSCA — which was overhauled last year and expanded its authority — that have allowed it to tackle these problems. Among the changes was the abandonment of the least burdensome requirement for chemical review. This was a result of a push for the EPA to incorporate harsher independent regulations put forth by some states.
http://www.cavalierdaily.com/article/2017/03/epa-attorney-speaks-about-toxic-substance-control-act
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If You Are What You Eat, Are We Making Children Nonstick?
Mar 2, 2017 | Environmental Working Group
By David Andrews
According to the Centers for Disease Control and Prevention, on any given day one in three American children – no matter their age, race or family income – eat fast food. Hamburgers, french fries, burritos, pizza and other fast food items are often served in paper wrappers or boxes coated with grease-repellent perfluorinated chemicals, or PFCs, that may harm children’s health.
These synthetic chemicals – kin to the compounds used in frying pans, raincoats and many other household products – have been used in food packaging for decades. Their widespread use has led to detection of PFCs in the bodies of virtually all Americans. The CDC tested blood for a dozen PFCs. Academic researchers have identified dozens more of these chemicals in people, but tests are not yet available to document the full extent of exposure.
Studies by the Food and Drug Administration demonstrated that PFCs used to coat paper and other packaging readily migrate into food – especially when used for oily and hot or heated foods like microwave popcorn. A child eating a sandwich wrapped in a PFC-loaded wrapper also ingests some of these toxic chemicals.
This is especially worrisome for kids, who are exposed to more contaminants, including PFCs, because they consume more food and water relative to their body weights than adults. PFCs can also be passed from mother to child through the umbilical cord and breast milk. And studies show that children are much more susceptible to harm from these chemicals.
A study done by Harvard researchers on children in the Faroe Islands discovered an association between PFC exposure and the reduced effectiveness of vaccines. An animal study found endocrine disruption of mammary gland development at doses below the levels already found in children. Exposure to PFCs in childhood has also been linked to attention deficit hyperactivity disorder and other health issues including obesity.
The most notorious PFC is PFOA, formerly used to make Teflon. It’s been phased out in the U.S., but it’s still a problem because like other PFCs it accumulates in the body and does not break down in the environment.
In February, DuPont and its spinoff company Chemours agreed to pay $671 million to settle 3,500 lawsuits by people made sick by PFOA contamination of their drinking water from DuPont’s West Virginia Teflon plant. A scientific panel funded by DuPont provided direct evidence that exposure to PFOA is linked to many diseases including cancer, high cholesterol and thyroid disease. Recent studies indicate that there is no safe level of exposure, and even very low doses cause developmental harm and reduce the effectiveness of vaccines.
But since PFOA and its cousin PFOS, formerly an ingredient in 3M’s Scotchgard, were phased out, chemical companies have replaced them with next-generation PFCs that have not been adequately tested for safety. A group of international scientists estimate that more than 3,000 PFC chemicals are in use today or have been used in the past. Dozens of these substances have been detected in fast food packaging.
Recently, EWG collaborated with researchers from academia, the government and public health groups to test fast food wrappers from national restaurant chains for these chemicals. The bad news is that 40 percent of the hundreds of wrappers tested positive for fluorine, a marker of PFC presence, including samples from every major chain.
Over a decade ago, EWG sent letters to the CEOs of many food chains calling on them to move away from this troubling class of chemicals. But our recent testing results show that the change hasn’t happened fast enough. EWG has again written the CEOs of the largest fast food chains asking them to discontinue the use of PFC coatings in food wrappers and to seek healthier alternatives.
Health agencies and public health advocates are also looking for ways to decrease children’s exposures to these toxic chemicals. In January 2017, the Washington state legislature introduced a bill that would prohibit the sale or distribution of food packaging to which perfluoroalkyl and polyfluoroalkyl chemicals were intentionally added. EWG is sponsoring a similar bill in California, and we’re asking the FDA to ban PFCs in fast food wrappers.
Toxic chemicals – and substitutes that may have the same health effects – do not belong in our children’s food, or in food packaging. You can sign our petition to the FDA here.
http://www.ewg.org/enviroblog/2017/03/if-you-are-what-you-eat-are-we-making-children-nonstick
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Retailer Boots to Stop Selling Products Containing Microbeads
Mar 2, 2017 | Chemical Watch
By Tammy Lovell
Pharmacy chain store Boots will stop purchasing and selling products containing plastic microbeads from December.
Boots, owned by US company Walgreens Boots Alliance (WBA), eliminated microbeads from its own brand, and exclusive beauty and personal care products, in 2015. Its stores are located in the UK, but the company distributes its products globally.
The WBA's 2016 Corporate Social Responsibility (CSR) report, says the company has worked with a range of stakeholders, including UK industry group the Cosmetic, Toiletry & Perfumery Association (CTPA), to understand and address "the industry-wide issue" of microbead pollution.
It adds that the company has also been working with its suppliers, many of whom have already committed to phase out plastic microbeads.
In the US, the WBA is working with its suppliers to reformulate its product brands to eliminate microbeads in advance of legislation deadlines. The Microbeads Free-Waters Act was signed into law in January 2016 and the phase-out of cosmetic products containing microbeads to begin in July 2017.
Since 2014, the WBA has been under pressure from the NGO Safer Chemicals Healthy Families (SCHF) to adopt a chemical programme that would eliminate harmful chemicals from personal care products.
Mike Schade of SCHF, said: "We commend both Walgreens and Boots for taking action on plastic microbeads, which have been polluting water bodies around the globe."
Boots UK has also been working with the water treatment industry, suppliers and stakeholders on developing consistent labelling for other materials prone to being incorrectly disposed of in wastewater systems, such as make-up remover wipes and cotton buds. Boots already labels these products with 'Do not flush' logos.
Many leading UK retailers – including Tesco, Waitrose and Superdrug – have also announced plans to phase out microbeads from products they sell.
The UK government has proposed a ban on microbeads in 'rinse-off' cosmetics and personal care products by October. The consultation closed on 27 February.
WBA also owns US pharmacy chain stores Walgreens and a number of pharmaceutical manufacturing, wholesale and distribution companies. It has owned Boots since December 2014, when it purchased a 55% stake in the company. It already owned the remaining 45%.
https://chemicalwatch.com/53964/retailer-boots-to-stop-selling-products-containing-microbeads
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UK Chemicals Bodies Moot 'Mutual Agreement' on Authorisation
Mar 2, 2017 | Chemical Watch
By Luke Buxton
The UK could seek a 'mutual agreement' with the EU to mirror elements of the REACH authorisation process in UK law, national chemical trade bodies told a UK parliamentary inquiry.
During an evidence session on 21 February with the House of Commons Environmental Audit Committee, Chemical Industries Association (CIA) chemicals policy director, Nishma Patel, said devising such an agreement would be difficult but if, for example, the EU were to ban or restrict a specific substance, “the UK may decide to recognise that and do something similar if it is in the national interest”.
Alternatively the country could adopt an approach based on its national priorities, Ms Patel told MPs. And if the UK does something similar, the EU could consider it – possibly resulting in “a mutual-recognition type of model that could work” if both parties agree.
MPs also heard that a divorce from REACH could bring opportunities for UK businesses. Susanne Baker, from techUK, said a small number of companies “see the benefits” of diverging from REACH because of complexities around authorisation. It might allow a “more pragmatic approach” in managing risks of certain substances in the manufacturing process, she said.
Certain substances are subject to sunset dates, after which they cannot be used unless authorised by Echa and the Commission. Ms Baker said techUK has asked the UK environment ministry whether they will still apply after the UK has left the EU.
Registration 'agreement'
On the issue of REACH registration, said Ms Patel, the CIA is looking at a model of mutual recognition between a UK-REACH system and EU REACH whereby data requirements for registration dossiers would essentially be similar or identical.
This would mean "one registration would cover you for UK and EU manufacturing and supply, because many of our companies are not only based in the UK but have counterparts in the EU".
The Chemical Business Association’s technical director, Douglas Leech, told the inquiry that mutual agreement is a “likely possibility” if the UK and member states see benefits, but the “critical factor” will be getting that recognition in place.
Addressing risk
The CIA has previously said that Brexit could mean more risk-based chemicals regulation for the UK, but Ms Patel told MPs that a true mirroring would not be possible without “enshrining” the precautionary principle in UK legislation.
“REACH has both hazard and risk elements, and, by no means, am I saying that we stray from those hazard-based elements.” Without basic hazard information and intrinsic information on chemicals, essentially there is no market, she said.
The UK could take a “different approach” on zero-exposure in manufacturing, she said, and look at the hazards of the chemical and if entire containment is required, or if there is sufficient work being done to minimise exposure.
Often, said Mr Leech, during EU discussions the UK has “had to push” for risk management options instead of a blanket proposal for a ban. The UK has "championed" this process and it has asked if there is “a better way” if, for example, the substance in question is vital to global manufacturing.
https://chemicalwatch.com/53945/uk-chemicals-bodies-moot-eu-mutual-agreement-on-authorisation
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Echa Recommends Seven SVHCs for REACH Annex XIV
Mar 2, 2017 | Chemical Watch
By Luke Buxton
Echa has opened a consultation on its draft eighth recommendation to add seven priority substances to the authorisation list.
The agency's public consultation on a draft recommendation typically runs once a year. Its selection of the candidate list substances is primarily based on information in registration dossiers on uses and volumes of the substance in the scope of authorisation. As such, it encourages registrants to keep their dossiers up to date.
The recommended substances, their grounds for consideration and uses are:
5-sec-butyl-2-(2,4-dimethylcyclohex-3-en-1-yl)-5-methyl-1,3-dioxane [1], 5-sec-butyl-2-(4,6-dimethylcyclohex-3-en-1-yl)-5-methyl-1,3-dioxane [2] [covering any of the individual stereoisomers of [1] and [2] or any combination thereof] (karanal group): this has very persistent and very bioaccumulative (vPvB) properties and is used as a fragrance ingredient in applications such as fine fragrances, soaps and detergents;
1-methyl-2-pyrrolidone (NMP): this is suspected of being toxic for reproduction (category 1B). Its uses include: formulation and (re)packing of substances and mixtures, in coatings, cleaning agents, oil field drilling and production operations, as binders and release agents, functional fluids, polymer processing, and in water treatment;
2-(2H-benzotriazol-2-yl)-4,6-ditertpentylphenol (UV-328): this has persistent, bioaccumulative and toxic (PBT) and vPvB properties. Some examples of its uses are: formulation and use of preparations containing additives, compounds in the manufacture of plastics products, formulation and use of adhesives and sealants, as well as applications in printing inks. This and the other three phenolic benzotriazoles can be used as UV stabilisers;
2,4-di-tert-butyl-6-(5-chlorobenzotriazol-2-yl)phenol (UV-327): is suspected of having vPvB characteristics. It is found in industrial sites and in plastic articles;
both 2-(2H-benzotriazol-2-yl)-4-(tert-butyl)-6-(sec-butyl)phenol (UV-350) and 2-benzotriazol-2-yl-4,6-di-tert-butylphenol (UV-320) have vPvB properties, with the latter also having PBT properties. They can be used in plastic articles and coatings; and
1,2-benzenedicarboxylic acid, di-C6-10-alkyl esters; and 1,2-benzenedicarboxylic acid, mixed decyl and hexyl and octyl diesters with ≥ 0.3% of dihexyl phthalate (EC No. 201-559-5): this is suspected of being toxic for reproduction (category 1B). Uses of the first substance include industrial use in polymer processing and by professionals and consumers in adhesives, coatings, paints and thinners. The latter substance is not registered and no information is available.
The deadline for commenting on the consultation for all substances is 2 June.
NMP is the subject of an ongoing restriction procedure in the EU. In North America, a US EPA report on consumer use of the substance has raised questions about the conclusions drawn in its Canadian draftscreening assessment, which said it is not harmful.
https://chemicalwatch.com/53974/echa-recommends-seven-svhcs-for-reach-annex-xiv
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Echa Sent Back to Drawing Board on Nanoform Information Requests
Mar 2, 2017 | Chemical Watch
By Geraint Roberts
A group of titanium dioxide producers have won an appeal against an Echa Decision asking them to give detailed information about the substance's nanoform as part of the information required on substance identity.
The Echa Board of Appeal ruling makes it clear that while information on the hazards of a substance's nanoform should be addressed by the scientific information provided in a registration dossier, the agency cannot demand such information on the grounds that the dossier fails to provide enough information on substance identity.
Echa sent the Decision to lead registrant Tioxide Europe in 2014. It required it to give detailed substance identity information on the crystal phases, nanoforms and surface treatment of nanoforms covered by the registration.
The agency accepted that the text of the relevant annex of the REACH Regulation does not include an explicit provision for the information it was seeking. But, backed by the French REACH competent authority, it argued that a registration must, in principle, address separately the toxicological and ecotoxicological properties of every crystal phase and nanoform covered by a dossier.
Alternatively, Echa and the French authority argued, a registrant could establish scientifically that differences in physical properties between different crystal phases or nanoforms do not result in different different toxicological and ecotoxicological properties.
But the BoA rejected this argument. It ruled that if the wording of a provision of EU law is clear and precise – as it decided it was in this case – its contextual meaning or apparent purpose must be applied according to its wording, and could not be interpreted by the agency to require the detailed substance information it was seeking.
It also rejected Echa's argument that a literal interpretation of the wording would prevent a high level of health and environmental protection. A registrant, it said, can give a broad definition of the substance it intends to register, for example, by including both its bulk and nanoforms – but if it does so, the hazards posed by all possible forms must be addressed by the toxicological and ecotoxicological information provided in the dossier.
The text of the REACH Regulation does allow the agency to require this information in a dossier, says the BoA – but it would have to go about it in a different way.
Different approach would work
For example, the BoA says, a compliance check of the toxicological and ecotoxicological information submitted, rather than substance identity information only, will allow the agency to consider whether all the required information regarding, inter alia, the human health and environmental effects of the substance have been submitted.
Furthermore, the BoA adds, a decision taken under the REACH substance evaluation process could request further information that is needed to clarify a potential concern.
Asked what action it intends to take in light of the ruling, Echa said it will assess the reasons set out in the document and consider their impact on regulatory strategy for nanomaterials.
However, it noted "the board considered the obligations of registrants defining broadly their substances and said that the registrants must demonstrate the safe use of all the forms possibly covered by the broad definition."
https://chemicalwatch.com/53973/echa-sent-back-to-drawing-board-on-nanoform-information-requests
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Mar 2, 2017 | Chemical Watch
Board of Appeal practice directions revised
The Board of Appeal has revised its practice directions to guide parties involved in appeal proceedings. The move was necessary to take into account recent changes to the Board's procedure rules, as well as to incorporate feedback from stakeholders and experience gained.
The existing directions were published in 2010.
The main changes are:
extra guidance on presenting procedural documents and what they should include;
the introduction of a recommended maximum number of pages for the documents;
clarifications on when, and how many, copies of submissions are needed;
clarification on confidentiality request rules;
additional guidance on evidence; and
guidance for cases where several appellants bring a single appeal.
The revised directions entered into force on 1 March. They are available on the Board of Appeal's section of Echa's website in 23 official EU languages.
Electronic cards for 2018
In mid-January, Echa sent e-cards to 18,000 pre-registrants with no prior registrations, lead registrants and members of joint submission. The purpose was to remind them of the 2018 deadline. The agency has now made the cards available on its website.
Downstream notifications
The agency has released a table and maps showing the number and geographical distribution of downstream notifications it has received. Companies using authorised substances of very high concern have to notify them.
This requirement is based on Article 66 of REACH. The agency passes on the notifications to EU member state enforcement authorities.
Updated guidance
Echa has sent a draft version 2.0 of its Guidance on information requirements and Chemical Safety Assessment, recommendations for nanomaterials applicable to human health endpoints appendices, to the competent authorities for REACH and CLP (Caracal) for consultation.
Webinar on benefits of sector use maps
The agency is to run a webinar 'Getting meaningful exposure scenarios: how sector use maps help' on 13 March. It recommends this to downstream users and sector organisations that want to optimise the communication of safe use information in the supply chain.
Participants will learn about the sector use-map concept, its benefits and implementation.
Seminar on ten years of REACH litigation
Echa is running a REACH litigation seminar on 24 May to mark its tenth anniversary. The agency and its Board of Appeal have organised the one-day event.
The seminar will discuss the similarities and differences in the European courts' and the Board of Appeal's work on REACH over the past ten years, mainly from the angle of procedure and scope of review.
Participation is free, but registration is required.
Stakeholders' Day conference
The agency is to hold its 12th Stakeholders' Day conference on 4 and 5 April. Its main focus will be preparing for 2018's final REACH registration deadline. Participation is free. The event will be web-streamed live and participants will be able to send questions in remotely.
Iuclid 6
Iuclid 6 Desktop installer version 1.2.0 has been made available for Mac OS X. The installer and the final installation come with their own built-in installation of Java so this will not need to be done separately. An installer and an updater will be supplied for the Mac OS X in future releases of Iuclid 6 Desktop.
https://chemicalwatch.com/53933/echa-round-up
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Exxon CEO Places Bigger Bet on U.S. Shale in 2017
Mar 2, 2017 | E&E Energywire
By Nathanial Gronewold
U.S. shale oil will dominate Exxon Mobil Corp.'s activity in 2017 as global megaprojects take a back seat, the company's new CEO told investors yesterday.
The two great exceptions to this are Exxon's projects in Guyana and Papua New Guinea. The company discovered a rich resource base offshore from Guyana, one that can be developed economically, while Exxon looks to expand its position in natural gas exports from Papua New Guinea.
Exxon CEO Darren Woods rang the opening bell at the New York Stock Exchange yesterday before telling an annual investors and analysts gathering that his company plans to focus on short-cycle projects, directing some $5.5 billion toward investments in advanced horizontal drilling in the Permian Basin and Bakken Shale. Ongoing long-cycle projects are in development, and that work will continue, but Exxon seems poised to center in on tight and shale oil rather than sanction new megaprojects, a past hallmark of its upstream investment.
"Through a series of acquisitions in the Permian, we have substantially enhanced our position," Woods said, pointing in particular to a major recent acquisition of drilling acreage in New Mexico's portion of that basin. "We currently hold more than 1.8 million net acres with more than 140,000 net oil equivalent barrels per day of current production."
By drilling long laterals on its contiguous drilling acreage, Exxon thinks it can net massive quantities of liquids and associated natural gas in the Permian. In Woods' presentation, he predicted production volume growth from U.S. tight and shale assets that begin to rival major long-lead deepwater offshore projects. Exxon is planning to develop wells in the Delaware Basin of the Permian of 10,000 to 12,500 feet in length, or roughly 2 miles.
"We will drill some of the longest wells in the Permian, reducing development cost and increasing reserve capture," Woods said.
Exxon thinks it can expand oil-equivalent hydrocarbons production from just the Permian and Bakken to around 750,000 barrels a day by 2025, about 75 percent of that volume in liquids, "representing a 20 percent compounded annual growth rate."
Supreme confidence
Woods' bold proclamations were aimed at communicating to the investment community loudly and clearly Exxon's supreme confidence in the wake of the oil price crash.
Exxon's shares rose by 2 percent in value following the briefing.
The company was forced to write off some $3 billion worth of prior booked proved reserves in response to low average 2016 crude oil prices and reporting requirements by the Securities and Exchange Commission. The write-off, centered mainly at Exxon's massive Kearl oil sands project, prompted grim headlines questioning the company's fate and the fate of the Canadian oil sands in general.
Up north, regulators and researchers are more sanguine about the future of oil sands investments.
In a new report, the Canadian Energy Research Institute said it expects oil sands production to continue to climb, with profitability returning as the oil price rises. CERI notes that operations in the oil sands region have also pursued cost-cutting measures in response to the crude price plunge. Experts widely predict ongoing rising oil sands output but acknowledge that perpetually lower oil prices will discourage investment in new greenfield large-scale oil sands extraction.
Woods' presentation reflected this view. While not mentioning the reserves write-off, he indicated that Exxon remains committed to Kearl and will drive value there by driving down the operating expenses at the newer oil sands project. Woods called Kearl a "very long-life asset."
"We've continued to lower unit cash [operating expenses] at Kearl, capturing economies of scale and driving improvements in the mining and plant," he said, adding that costs are less than half what they were two years ago.
Exxon's presentation also reflected the company's concern over the outlook for the crude oil price. International Brent oil prices stand at around $56 per barrel as of yesterday, while the West Texas Intermediate North American oil benchmark rate was a little over $53 per barrel.
Executives at Exxon said they're looking for projects that can make money at $40 per barrel. The company says it sees oil prices continuing to be volatile for the foreseeable future.
So it's putting more emphasis on U.S. shale oil. Woods argues that drilling in the Bakken and Permian affords greater flexibility than in other regions. Drilling can be increased or scaled back depending on the per-barrel price, "allowing us to drill at a pace appropriate to market conditions."
U.S. shale drillers are already demonstrating the remarkable speed with which they can move new oil supplies to fill in any gaps in supply or unexpected surges in demand. There are already signs that, at least for now, rising U.S. oil production may be replacing production cuts by other major oil exporters (Energywire, Feb. 27).
Are megaprojects worth it?
With massive volumes of recoverable shale oil locked up in the Permian, Bakken and Eagle Ford shales; Canada; and Alaska's North Slope, some are beginning to question whether offshore megaprojects make sense at all. One analyst asked the executives whether shale diminishes the attractiveness of new deepwater offshore drilling.
Exxon says it looks at each potential project on a stand-alone, case-by-case basis and doesn't write off any particular category of upstream investment. It gave a nod to the Guyana operations, potential in the Black Sea, offshore Mozambique and Cyprus as indicative of this.
The Gulf of Mexico was largely left out of yesterday's discussion, though the company maintains a footprint, while eyeing potential in Mexico's portion of the Gulf following that country's decision to open its energy resources to foreign direct investment. Exxon is pressing ahead with a North American offshore megaproject, but in Canada, with the massive Hebron platform poised to enter into service off the coast of Newfoundland in the latter half of this year.
"It's all about making it work at these low, low prices," said Exxon Senior Vice President Mark Albers. "Making it work at $40 or lower."
Woods' presentation made no mention of Russia.
Exxon famously signed agreements committing it to supporting offshore exploration, shale production, and shale oil technology research and development in Russia over a period of several years. Then Moscow invaded Ukraine and annexed Crimea. In response, sanctions were put in place by the United States and Europe prohibiting their oil companies from assisting with Russia's Arctic and shale oil ambitions, and those restrictions remain in force.
Those Russia deals were pursued aggressively by Woods' predecessor, Rex Tillerson. Tillerson is now the U.S. secretary of State.
http://www.eenews.net/energywire/2017/03/02/stories/1060050810
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Trump's Justice Department Files First Motion in Ongoing Case
Mar 2, 2017 | E&E Greenwire
By Amanda Reilly
The Trump administration yesterday filed its first motion in the massive ongoing Clean Power Plan litigation.
The motion — the first document filed by the Justice Department for U.S. EPA since Jan. 12 — asks for a weeklong delay in responding to a request to consolidate other lawsuits dealing with the agency's reconsideration of the Clean Power Plan.
EPA needs "some additional time" to consider the request and prepare a response, DOJ said in the short motion.
The U.S. Court of Appeals for the District of Columbia Circuit in September heard nearly seven hours of arguments in the lawsuit over the Obama administration rule, which required states to develop and put in place plans to lower carbon dioxide emissions from power plants.
The D.C. Circuit has yet to issue a ruling in the closely watched case. The Supreme Court in February 2016 stayed the rule nationwide until litigation is resolved.
State and industry opponents of EPA recently filed a new round of lawsuits challenging the agency's decision to deny dozens of petitions to administratively reconsider the rule.
Three of those opponents — the Utility Air Regulatory Group, the American Public Power Association, and LG&E and KU Energy LLC — last week asked the court to consolidate their petitions with the litigation over the underlying Clean Power Plan.
The Trump DOJ's current deadline to respond to that request is Monday.
As attorney general of Oklahoma, EPA Administrator Scott Pruitt was among the fiercest opponents of the rule, arguing that it usurped states' rights. The Trump administration is planning to issue an executive order next week starting the process for weakening the rule.
http://www.eenews.net/greenwire/2017/03/02/stories/1060050830
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Senate Must Vote Against Roll Back of BLM Methane Waste Rule
Mar 2, 2017 | The Hill - Congress Blog
By Jonas Kron
Before we invest in a sector, we try to identify companies best positioned to deliver strong, stable financial returns. We are dedicated to our clients who trust us to manage their money for the long-term. We look at whether a company is efficient in its business practices, and whether it adheres to strong positive environmental and social policies, which may increase company profitability and give it a competitive edge.
That’s why it concerns us that Congress is working to roll back U.S. Bureau of Land Management (BLM) rules aimed at reducing methane pollution – an especially potent greenhouse gas – from oil and gas production on federal and tribal lands. These rules provide the necessary encouragement for companies to be prudent with public energy resources, rather than squander a saleable product. Prior to the rule’s implementation, oil and gas investors saw more than $1 million worth of natural gas wasted every day by venting and flaring methane into the atmosphere. Billions of dollars of product was lost over the last decade.
The Congressional proposal – approved by the House and now under consideration in the U.S. Senate – would scuttle these investor- and environment-friendly rules and would also prevent the BLM from making similar positive rules in the future.
The BLM standards are really just common sense: requiring companies to check for and reduce methane leaks, the main component of natural gas. Methane leaks from oil and gas operations are odorless and invisible to the naked eye; they can happen anytime, anywhere. Without effective practices to regularly inspect facilities, companies continue to have natural gas escaping into the air, leaving meaningful revenue on the table.
This rule also requires companies to significantly reduce the amount of natural gas that is vented (intentionally released into the atmosphere) and flared (burned off from these public lands). Through venting and flaring, companies knowingly and purposefully release valuable energy resources into the air. While some parties have attributed high volumes of venting and flaring to a lack of infrastructure, the U.S. Government Accountability Office (GAO) found that only 9 percent of flaring occurs due to lack of necessary infrastructure.
Methane emissions on public lands represent lost natural gas that could have been used to heat American homes and run American industries. Fortunately, making substantial reductions to this waste is achievable. When companies want to prevent emissions, perhaps when cracking down on methane leaks, they can turn to U.S. companies in the methane mitigation sector. While providing good paying jobs, these companies exist to help find these leaks and provide technology and employees to reduce the emissions. We have seen the methane mitigation sector’s services deployed with great success by leading companies and in pioneering states like Colorado, Wyoming and Ohio.
The flaring provisions in the BLM’s rules were modeled after successful standards that North Dakota enacted to reduce the state’s flaring problem, which had been burning off as much as a third of all natural gas produced. California is expected to implement similarly strong standards to reduce such waste soon.
The BLM rule simply makes straightforward financial and economic sense, and it also helps to reduce risks by lessening climate warming pollution, smog and toxic carcinogens like benzene. As investors, these common-sense and cost-effective rules help secure the industry’s social license to operate, mitigate our investment risks, and provide us with additional confidence to invest in the U.S. energy industry.
The Senate has an important choice in front of it. One is to preserve, protect and defend the nation’s treasured natural resources. The other is to vote for more waste and pollution – most of which is avoidable.
Just as we expect and urge companies we invest in to continue to strive to do better, Senators need to take their responsibilities to taxpayers and our global climate seriously.
We call on all Senators to vote against nullifying the BLM methane waste rule, a rollback that would harm taxpayers, investors and our air.
Jonas Kron is Senior Vice President, Director of Shareholder Advocacy at Trillium Asset Management. Luan Jenifer is Executive Vice President of Miller-Howard Investments. Will Morgan is Head of Impact at Sonen Capital.
http://www.thehill.com/blogs/congress-blog/campaign/322019-senate-must-vote-against-roll-back-of-blm-methane-waste-rule
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Occidental’s Massive Petrochemical Plant Comes Online in Texas
Mar 2, 2017 | Fuel Fix
By Jordan Blum
The first of several new petrochemical plants coming online this year became operational this week when Houston-based Occidental Petroleum opened its new facility near Corpus Christi.
The $1.5 billion ethylene plant in Ingleside is a joint venture between Occidental’s OxyChem subsidiary and Mexico-based Mexichem. The facility, called an ethylene cracker, takes ethane from natural gas production and converts it into ethylene, which is the primary building block for most plastics.
The project is the smallest and first of several Texas Gulf Coast ethylene crackers being completed this year. Others are under construction in the Houston area by Exxon Mobil, Chevron Phillips Chemical and Dow Chemical.
The plant will churn out 1.2 billion pounds of ethylene a year that Occidental will turn into vinyl chloride mononers, which Mexichem will then convert into polyvinyl chloride to make PVC piping.
While the project included thousands of construction jobs, the plant only created about 150 permanent positions. The facility was built by The Woodlands-based CB&I.
The slew of petrochemical plants in Texas are the result of the cheap and ample shale gas supplies that serve as the feedstock for the facilities.
http://fuelfix.com/blog/2017/03/02/occidentals-massive-petrochemical-plant-comes-online-in-texas/
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EPA Chief Defends Grant Programs WH is Eyeing for Cuts
Mar 2, 2017 | The Hill - E2 Wire
By Devin Henry
Environmental Protection Agency (EPA) Administrator Scott Pruitt says he is urging the White House not to cut funding for several grant programs the Trump administration has targeted.
The White House is considering cutting a host of programs as part of an effort to slash the EPA’s budget by up to a reported 24 percent.
Among those programs are grants for clean-up work at brownfields industrial sites and other grant programs for states, which Pruitt said Thursday should be protected.
“In this budget discussion that’s ongoing with Congress, it’s just starting, so there are some concerns about some of these grant programs that EPA has been a part of, historically,” Pruitt told a gathering of mayors in Washington on Thursday.
“I want you to know that with the White House and also with Congress, I am communicating a message that the brownfields program, the Superfund program, water infrastructure … are essential to protect.”
Pruitt said funding for the Superfund program, which aims to restore contaminated areas of the country, and clean-up at brownfields, former industrial sites too polluted for redevelopment, are priorities for him and areas of the budget he will aim to protect in spending discussions.
“I want to be able to share that the investment with the brownfields program needs to be enhanced and strengthened because it truly goes to job creation, benefits to the community and environmental benefits, as well,” he said
In a short speech to the mayors, Pruitt did not address other programs that are on the Trump administration’s chopping block, including climate change funding.
The reported budget proposal for the EPA — a potential $2 billion cut to the agency’s $8.1 billion budget — received mixed reviews on Capitol Hill this week. As expected, Democrats lambasted the idea, but some key Republicans were skeptical of it as well.
Pruitt told the mayors he also wants to help localities cut ozone levels to within the limits set by the EPA. He said he will push the White House to include water infrastructure in any construction package the Trump administration might put together this year.
http://thehill.com/policy/energy-environment/321979-epa-chief-defends-grant-programs-wh-is-eyeing-for-cuts
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Green Success Stories Critical to Budget Battle — Pruitt
Mar 2, 2017 | E&E Greenwire
By Kevin Bogardus and Emily Holden
U.S. EPA Administrator Scott Pruitt pleaded with mayors this morning to share their environmental success stories with his agency.
The newly minted agency chief spoke to the U.S. Conference of Mayors in Washington, stressing that he wants to protect certain EPA programs from budget cuts proposed by President Trump. The White House blueprint would cut EPA's budget by nearly a quarter, or roughly $2 billion, and lay off 3,000 employees, which would leave several agency initiatives in limbo.
In his talk with mayors, Pruitt cautioned that the budget process was just starting.
"There are some concerns about some of these grant programs that EPA has been a part of historically," Pruitt said. "I want you to know that with the White House and also with Congress, I'm communicating the message that the brownfields program, the Superfund program, water infrastructure ... state revolving funds are essential to protect."
The EPA administrator said mayors have success stories with those cleanup programs such as brownfields and Superfund. They should share those stories with his agency as budget talks commence.
"There are tremendous successes all over the country," Pruitt said. "I want to hear from you about those successes. I want to be able to share those with the White House."
Pruitt said those programs lead to job creation as well as benefits to the community and the environment.
The EPA chief also noted that he has been invited to be part of the president's team on infrastructure and will be heading to the White House this afternoon to discuss the issue.
"We have a water infrastructure issue right now for us in this country," Pruitt said. "I want to hear from you on your needs with respect to water infrastructure."
In his early days as agency head, Pruitt has talked up the importance of clean water and cleanup programs. Today, he also discussed working with mayors to take down air pollution, noting there are still several nonattainment areas in the country that do not meet national air quality standards.
"I look forward to partnering with you in the future," Pruitt said.
State agencies stand ready to work with Pruitt at EPA.
"Our members realize this is the beginning of the conversation for FY2018 budget, and will look to engage with U.S. EPA, Congress and the White House to highlight recent success stories and the need for cooperative approaches to core Clean Air Act responsibilities," said Clint Woods, executive director of the Association of Air Pollution Control Agencies, in a statement to E&E News.
Nevertheless, Trump's budget cuts proposed for EPA have been meeting pushback on Capitol Hill as well as from agency employees.
Sen. Tom Carper (D-Del.), ranking member on the Senate Environment and Public Works Committee, said earlier this week that the proposed budget cuts "will put people across this country at risk for illnesses or even premature death." In addition, EPA Region 5 employees, based in Chicago, were slated to protest this afternoon against the president's budget plan while federal employees rallied by the U.S. Capitol today against the cuts.
Some feel, however, that the Trump administration could change course, given the budget process has only just begun.
Jim Brainard, the Republican mayor of Carmel, Ind., and an outspoken supporter of fighting climate change, said he's "cautiously optimistic" that the president's views on climate change and environmental protection could change.
"Like so many things, the president started out, he hadn't been in government, he hadn't studied a lot of the issues," Brainard said. "We've seen him do 180s on several issues at this point."
He said he's hopeful because the president's daughter Ivanka and son-in-law, Jared Kushner, seem to support the environment. Brainard was also pleased that Pruitt asked for examples of the successful use of EPA funds to clean up brownfields.
"I haven't met a Republican or Democrat yet that wants to drink dirty water or breathe dirty air," Brainard said.
"I think we start to take into the equation the health cost of dirty air, the ozone issue that the administrator mentioned, there may be an opportunity to change minds at the White House."
Brainard said he thinks the administration is wrongfully looking to slash agency funds in order to reduce taxes and boost defense spending.
"I think they're looking to support this proposal, which may not have been well thought out, to cut taxes. They've got to look at every function of government and then combine that with the increase they want to give to the U.S. military," Brainard said. "I'm not sure the math works even in the best of cases."
http://www.eenews.net/greenwire/2017/03/02/stories/1060050847
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'Anemic' Demand for Cap-and-Trade Permits Plagues State
Mar 2, 2017 | E&E Climatewire
By Debra Kahn
California's latest auction of greenhouse gas permits saw low demand, hurting state revenue, according to figures released yesterday.
The Feb. 22 auction sold just 16.5 percent of the 75 million allowances put up for auction by California; its trading partner, Quebec; and utilities that receive allowances to sell. The allowances fetched $13.57 per ton, the floor price set by the state.
None of the current-year allowances offered by California sold, and just 7 percent of the future-year allowances sold, so the state received roughly $8 million for its Greenhouse Gas Reduction Fund. The fund has received more than $3 billion from previous auctions, which Gov. Jerry Brown (D) and lawmakers are spending on high-speed rail, affordable housing near transit points and other programs linked to emissions reductions.
Demand for the permits — and resulting revenue — has been flagging since early last year, and Brown has blamed uncertainty over the legality of the system for the slowdown. He has sought to insulate future years of the program from uncertainty by asking lawmakers to approve cap and trade through 2030.
But yesterday's tepid results surprised many who had thought that lawmakers' support for the program would boost confidence in the market. As well, observers took an optimistic view of oral arguments last month in a case challenging the auctions. A decision in that case is expected by April (Climatewire, Jan. 25).
"It's a result that's dramatically below the fundamentals of the market, and it's contrary to what we were seeing in terms of the shorter-term signals from the legal events and the secondary market, so it's a bit mysterious," said Chris Busch, director of research at consulting firm Energy Innovation.
Others said the low demand could be explained by the uncertainties facing the market.
"Without certainty post-2020 and certainty on how to deal with the unsold allowances, the market is not going to recover," said Andre Templeman, a principal at consulting firm Alpha Inception LLC who advises businesses on their compliance plans. "People aren't going to show up at the auctions as long as the secondary market is trading below the auction price, which it will until there's clarity."
Lawmakers and industry representatives said the results point to the need to extend and reform cap and trade. Two bills have been introduced this year to reauthorize a market-based system, as last year's law extending the actual carbon targets through 2030 was mum on the actual policies that the state should use to get there.
The Western States Petroleum Association, which represents BP PLC, Exxon Mobil Corp. and other major oil companies, blamed another market-based program, the state's low-carbon fuel standard, for lowering demand for permits. WSPA President Cathy Reheis-Boyd also pinned the results on environmental justice advocates who oppose carbon trading and are pushing for more drastic changes in the state Legislature.
"Low-carbon fuel standard and other command and control regulations are artificially depressing the market and some stakeholders are pushing to get rid of the cap-and-trade program entirely, which undermines the certainty of the program," she said in a statement.
"Today's anemic auction results demonstrate that the state's landmark cap and trade program is in need of reform and the kind of market certainty that only the legislature and governor can provide via statute," California Senate President Pro Tem Kevin de León said in a statement. "Our work is not done, especially now that our nation's capital is abdicating climate leadership."
Premature press release raises questions of access
De León's statement actually came out Tuesday, a full 24 hours before the auction results were announced. Secondary markets reacted to the move Tuesday by shedding 15 cents on 2017 vintage allowances, from $13.71 to $13.56, before recovering to close at $13.62. Prices fell another 5 cents yesterday but were "likely softened by yesterday's drop," according to Dan McGraw, a senior market strategist with ICIS U.S. Carbon Markets.
De León spokesman Anthony Reyes said he did not have access to the results ahead of time and mistakenly sent a speculative release out early. "Our staff made a calculation based on how many allowances were offered and sold and at what price," he said. De León's office sent out the same release again yesterday, after the state's Air Resources Board announced the auction results.
In a statement, ARB staff members said they had not given advance information about the auction results to anyone outside a "small number of designated administration employees."
"As with previous auctions, no information regarding the results of the auction was divulged or released to anyone prior to today's public announcement beyond those staff specifically designated to receive it," agency spokesman Dave Clegern said.
http://www.eenews.net/climatewire/2017/03/02/stories/1060050817
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