Preview Newsletter
ACC PM 4/17/2017
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(ACC Mentioned) Registration Now Open for the 60th Polyurethanes Technical Conference
Apr 17, 2017 | Benzinga
Registration is now open for the 60th Polyurethanes Technical Conference, which will be held Oct. 2 through 4 at the New Orleans Marriott. -
Trump Can Fund Chemical Safety Review while Cutting EPA Budget
Apr 17, 2017 | Competitive Enterprise Institute
By Angela Logomasini
Some observers express doubt that the Trump administration can cut the Environmental Protection Agency (EPA) budget by 31 percent and still fund implementation of the newly reformed Toxic Substances Control Act (TSCA), the law that governs the usage of new and existing chemicals found in consumer products from household cleaners to plastic toys. -
EWG Surveys Personal Care Product Companies About 1,4-Dioxane
Apr 17, 2017 | Environmental Working Group
By Monica Amarelo
The Environmental Working Group is surveying U.S. makers of personal care products to ask if they are working to remove 1,4-dioxane, a likely human carcinogen, from their products. -
Public Health Attacks You Missed During the Congressional Recess
Apr 17, 2017 | Environmental Defense Fund
By Keith Gaby
If you want evidence that elections matter, check your kid’s drinking water for lead. And arsenic. And mercury in her body. Because a series of new actions by the Trump administration mean the progress we’ve made on those public health threats is under attack. -
Enviros Push to Continue Legal Battle Over EPA Standards
Apr 17, 2017 | E&E Energywire
By Ellen M. Gilmer
A coalition of environmental groups is urging a federal court to allow litigation to continue over Obama-era standards for methane emissions from new oil and gas operations. -
Democratic Senators Question Pruitt's Methane ICR Withdrawl
Apr 17, 2017 | Inside EPA
Several Democratic senators are challenging EPA Administrator Scott Pruitt's decision to quickly withdraw an information collection request (ICR) on methane emissions from the existing oil and gas sector, suggesting his decision was solely influenced by Republican state officials who opposed the request and that he did not weigh other input. -
Golf Facility Transforming into Large Frac Sand Mine
Apr 17, 2017 | Fuel Fix
By Jordan Blum
Fort Worth’s Emerge Energy Services said it is buying a small sand facility south of San Antonio to transform it into a much larger mine to serve the hydraulic fracturing needs of the oil sector. -
Alaska Brings Ambitious LNG Export Project to FERC
Apr 17, 2017 | E&E Energywire
By Margaret Kriz Hobson
The state of Alaska plans to submit an application to the Federal Energy Regulatory Commission today for construction of a $40 billion to $45 billion pipeline and export project aimed at commercializing the state's giant North Slope natural gas reserve. -
BP Well Leak in Alaska Stops
Apr 17, 2017 | Fuel Fix
By Bloomberg
A well operated by BP Exploration Alaska Inc. on Alaska’s frigid North Slope is no longer spraying crude oil after leaks were discovered Friday morning. -
Hilcorp Fixes Leaking Cook Inlet NatGas Line
Apr 17, 2017 | Natural Gas Intelligence
By Joe Fisher
A leaking natural gas line in the Middle Ground Shoal area of Alaska’s Cook Inlet late last week, pipeline operator Hilcorp Alaska LLC said. -
New Challenge Pins Fouled Pa. Water on Driller
Apr 17, 2017 | E&E Energywire
By Ellen M. Gilmer
Weeks after a federal judge scrapped a jury verdict holding Cabot Oil & Gas Corp. responsible for water contamination in Pennsylvania, a new plaintiff has emerged. -
Calif. Urges EPA to Set Stricter Standards for Trains
Apr 17, 2017 | E&E Greenwire
By Camille von Kaenel
California has petitioned U.S. EPA to set more stringent emission standards for locomotives. -
Lobbyist Urges Restraint on CAFE Changes
Apr 17, 2017 | E&E Climatewire
By Camille von Kaenel
Automakers are urging restraint as academics propose alternatives to vehicle mileage and emissions standards that the Trump administration has started reconsidering. -
World Has Questions; State Department Has No Answers
Apr 17, 2017 | E&E Climatewire
By Jean Chemnick
The world has a lot of questions about how the United States is going to meet its near-term greenhouse gas emissions pledges, and so far it hasn't gotten many answers from the Trump administration. -
U.S. Air Quality Improves 'Dramatically' — Report
Apr 17, 2017 | E&E Greenwire
By Cecelia Smith-Schoenwalder
Toxic air releases are down by half over the last 10 years, according to a new report.
Industry and Association News
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(ACC Mentioned) Registration Now Open for the 60th Polyurethanes Technical Conference
Apr 17, 2017 | Benzinga
Registration is now open for the 60th Polyurethanes Technical Conference, which will be held Oct. 2 through 4 at the New Orleans Marriott. Hosted by the Center for the Polyurethanes Industry (CPI) of the American Chemistry Council (ACC), this prestigious conference brings together industry leaders and experts to discuss and learn about the latest innovations and creative applications for polyurethane.
"Over six decades, the Polyurethanes Technical Conference built a reputation as the must-attend event for all those who make, use or study polyurethanes around the globe," said Lee Salamone, senior director of CPI. "Our event offers industry experts a place to network with more than 1,000 of their peers and discuss the future landscape of the polyurethane and plastics industry."
"For 60 years, this conference has shaped the polyurethane industry," said Melissa Rose, polyurethanes technical service and development director at Dow and CPI's 2017 conference chair. "Every year, we craft an innovative program that allows our attendees to discover what's new in our industry. This year's lineup offers an exciting and unique opportunity to gather in-depth industry knowledge, learn about the latest applications for polyurethanes and hear from senior-level regulators."
During the 2017 Polyurethanes Technical Conference, thought-provoking technical sessions will cover the latest innovations, advancements and applications for polyurethanes, and subjects ranging from automotive manufacturing, construction, coatings, adhesives, product sustainability, and sealants and elastomers (CASE). The 2017 Technical Conference will offer its Professional Development Program, which is taught by current industry experts, to help train current and future leaders in chemistry, application, testing and safety-related topics.
Click here for more information and registration details. Follow us on Twitter @accpolyurethane and use #PolyCon2017 to join the conversation.
http://www.americanchemistry.com
The American Chemistry Council (ACC) represents the leading companies engaged in the business of chemistry. ACC members apply the science of chemistry to make innovative products and services that make people's lives better, healthier and safer. ACC is committed to improved environmental, health and safety performance through Responsible Care®, common sense advocacy designed to address major public policy issues, and health and environmental research and product testing. The business of chemistry is a $797 billion enterprise and a key element of the nation's economy. It is the nation's largest exporter, accounting for fourteen percent of all U.S. exports. Chemistry companies are among the largest investors in research and development. Safety and security have always been primary concerns of ACC members, and they have intensified their efforts, working closely with government agencies to improve security and to defend against any threat to the nation's critical infrastructure.
https://www.benzinga.com/pressreleases/17/04/p9305571/registration-now-open-for-the-60th-polyurethanes-technical-conference
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Trump Can Fund Chemical Safety Review while Cutting EPA Budget
Apr 17, 2017 | Competitive Enterprise Institute
By Angela Logomasini
Some observers express doubt that the Trump administration can cut the Environmental Protection Agency (EPA) budget by 31 percent and still fund implementation of the newly reformed Toxic Substances Control Act (TSCA), the law that governs the usage of new and existing chemicals found in consumer products from household cleaners to plastic toys. But a recently leaked EPA memo reveals there are plenty of discretionary programs to cut. That would enable the administration to meet statutory requirements for TSCA and other laws while achieving its budget cutting goal.
Drafted by acting EPA Chief Financial Officer David A. Bloom and distributed to other agency officials, the March 21 memo details the administration’s commitment to meeting the EPA’s “core legal requirements” while cutting discretionary programs.
The memo proposes increasing TSCA funding by $14 million, but implementation will likely demand much more. In January, the EPA reported to Congress that it will need $28.4 million in 2018, $38.3 million in 2019, and about $35.8 annually in subsequent years to conduct chemical risk evaluations required under the law.
That may sound daunting, but all of these funds can be found within the largely discretionary programs of the agency’s Office of Research and Development (ORD) budget. ORD is funded as an EPA appropriation line item for “Science and Technology,” which amounted to $695 million for fiscal year (FY) 2017.
The EPA could eliminate many—maybe even all—of its science and technology budget items and shift some of those funds to programs designed to implement specific laws, i.e., “core” statutory programs. Even if the administration were to simply cut science and technology programs by 31 percent in one year, that would leave more than $480 million to fund TSCA and other programs.
Currently, it’s not particularly clear from the EPA’s budget exactly where all of these science and technology funds go, which is a problem in itself. But it is clear that a good portion is spent to peddle junk science and questionable green advocacy.
As I detailed in a piece for Science 2.0, ORD’s Integrated Risk Information System (IRIS) has long been plagued with problems related to poorly performed chemical risk assessments. Not only are there methodological problems as identified by the National Academy of Sciences (NAS), IRIS assessments lack transparency and tend to be alarmist. Indeed this “research” appears more activist than scientific.
Apparently, Trump’s EPA team agrees, and has indicated that IRIS may be eliminated, which would be a welcome move. IRIS’ budget is included with an appropriations line item of $126 million of spending for “Chemical Safety and Sustainability,” of which IRIS is a part. It’s unclear from the budget how much of those funds go to IRIS, but the EPA memo says that eliminating it will save $5.6 million in “non-pay resources” and cut 104.8 full-time employees. The memo does not specify the fiscal savings related to staff reduction, but it’s likely substantial.
Unfortunately, the FY 2017 budget has already appropriated $1 million for the National Academy of Sciences’ second review of IRIS’s assessment of formaldehyde. NAS sharply criticized IRIS for poor methodology and lack of transparency in its 2011 formaldehyde assessment. According to the 2017 appropriations report, IRIS’ attempts to address problems for the 2011 assessment continue to be deficient.
The EPA’s continued failure to get this assessment right underscores why the program’s funding should shift into the budget for TSCA implementation. Unlike IRIS, the old TSCA law and the reformed version both require the EPA to employ basic scientific principles, such as applying the “best available science,” transparency, and weight-of-evidence testing. TSCA isn’t perfect, but hopefully it will improve EPA risk assessment.
IRIS is but one of many EPA programs that could be eliminated without sacrificing environmental protection or preventing implementation of environmental laws. Accordingly, TSCA does not provide an excuse to prevent reduction of many of these wasteful and counterproductive EPA programs.
https://cei.org/blog/trump-can-fund-chemical-safety-review-while-cutting-epa-budget
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EWG Surveys Personal Care Product Companies About 1,4-Dioxane
Apr 17, 2017 | Environmental Working Group
By Monica Amarelo
The Environmental Working Group is surveying U.S. makers of personal care products to ask if they are working to remove 1,4-dioxane, a likely human carcinogen, from their products. According to EWG’s Skin Deep® database, at least 8,000 products on the market contain ethoxylated ingredients, which may be contaminated with the chemical.
Last week, Senators Charles Schumer and Kirsten Gillibrand of New York petitioned the Food and Drug Administration to ban 1,4-dioxane from personal care products. EWG followed up today by sending its survey to approximately 500 makers of shampoos, shower gels, body washes, foaming hand soaps, bubble baths and lotions. 1,4-dioxane is a byproduct of other cosmetics chemicals that may be used in those products.
“The health risks posed by exposure to 1,4-dioxane deserve immediate action from the FDA,” said Scott Faber, EWG's senior vice president of government affairs. “Manufacturers need to be aware of the hazardous substances found in their personal care products. American families – especially those with young children – need to know the chemicals they’re exposed to when they wash their hair, cleanse their skin and fill their tubs with bubble bath.”
The survey asks manufacturers if they use ethoxylated ingredients in their products and what steps they’re taking to strip 1,4-dioxane from those ingredients.
“Personal care products are largely unregulated and real reform is long overdue,” said Tina Sigurdson, EWG's assistant general counsel. “The federal law designed to ensure that personal care products are safe has remained largely unchanged since 1938. The FDA doesn’t even require manufacturers to prove personal care products are safe before putting them on store shelves.”
http://www.ewg.org/release/ewg-surveys-personal-care-product-companies-about-14-dioxane
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Public Health Attacks You Missed During the Congressional Recess
Apr 17, 2017 | Environmental Defense Fund
By Keith Gaby
If you want evidence that elections matter, check your kid’s drinking water for lead. And arsenic. And mercury in her body. Because a series of new actions by the Trump administration mean the progress we’ve made on those public health threats is under attack.
EPA Administrator Scott Pruitt announced a series of actions last week meant to kick off a public relations tour to promote his agenda – and perhaps gain a little exposure for his widely rumored Senate campaign.
These actions are an assault on public health and will result in more dangerous neurotoxins in our water, food, and bodies, and developmental problems for children, dangers for pregnant women, and others.
More toxic rivers and waterways
Pruitt said he was halting a rule that would limit dumping of coal ash, and the toxic chemicals it carries, into rivers and waterways. Starting next year, power plants, which account for about 30 percent of all toxic industrial discharges into our nation’s waterways, were supposed to use the latest technology to remove metals like lead, arsenic, and mercury from their wastewater.
These discharges cause lowered IQ in children, elevated cancer risk for humans, and deformities in fish and wildlife; but Pruitt is postponing the deadlines and said he will “reconsider” the rule.
More mercury in the air
The Trump administration may seek to delay a court hearing on the Mercury and Air Toxics Standards, which keeps these same chemicals out of the air, our lakes and rivers, and the fish we eat. These standards are already fully implemented and delivering life-saving protections. The air is cleaner at fraction of cost that industry predicted. Yet Pruitt seems ready to revisit these standards.
More regulations under the axe
Pruitt held a press event at a mine in Pennsylvania which was fined by EPA for 350 cases of dumping pollution into a river. The message seems to be that the ideology of cutting regulations trumps the value of keeping seriously dangerous chemicals out of our water supply.
Pruitt is counting the modest price of corporate compliance, but apparently not the human and economic cost of developmental problems and sickness from more toxic pollution.
More to come
Trump and Pruitt’s attack on public health is not likely to stop. By May 15, all agencies are supposed to have completed a process of finding rules and protections they’d like to cut. Pruitt has set up an internal process for hunting safeguards to kill, apparently seeking input from industry and few others. I suppose this shouldn’t be surprising from an Administrator who seemed to indicate last week that he might rather define “healthy” smog levels than listen to scientists.
The public does not appear to be happy with the direction things are going. Trump’s approval rating on environmental issues is at 29%. But even more than polls, elected officials know from long experience that the public cares deeply about clean air and water. Pruitt might get some credit from big energy companies who will now get to cut corners, but it’s hard to believe there will be cheering from the parents whose children will only get more pollution.
https://www.edf.org/blog/2017/04/17/public-health-attacks-you-missed-during-congressional-recess
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Enviros Push to Continue Legal Battle Over EPA Standards
Apr 17, 2017 | E&E Energywire
By Ellen M. Gilmer
A coalition of environmental groups is urging a federal court to allow litigation to continue over Obama-era standards for methane emissions from new oil and gas operations.
The Sierra Club, the Natural Resources Defense Council, the Environmental Defense Fund and four other groups on Friday asked the U.S. Court of Appeals for the District of Columbia Circuit to reject a recent request from the Trump administration to freeze a legal battle over U.S. EPA's new methane rule while the agency rethinks it.
"EPA's decision to undertake a review of unknown length and uncertain outcome does not justify an indefinite abeyance of these cases," the groups told the court.
The New Source Performance Standards, finalized by the Obama administration last summer, require operators of new oil and gas operations to monitor and repair leaks of methane, a potent greenhouse gas. States and industry groups quickly challenged the rule last year, while environmental groups and other states lined up on the Obama administration's side.
The standards are now in the crosshairs of President Trump's March "energy independence" executive order, which directs EPA and other agencies to review regulations that could burden domestic energy development.
On April 7, the administration asked the D.C. Circuit to put the litigation on hold while EPA decides whether to suspend, revise or rescind the methane standards (E&E News PM, April 7).
The environmental groups' Friday filing argues that resolution of legal questions raised in the litigation would help inform any rulemaking process for methane standards and other Clean Air Act regulations.
"It would in no way compromise EPA's regulatory review were this Court to resolve the various legal issues presented in this litigation, many of which would be relevant in any future action related to [Clean Air Act] section 111 regulations for the oil and gas sector and other industrial sectors," the groups told the court, adding that they are prepared to defend the methane standards even if the Trump administration is not.
They noted, however, that they would not oppose a 90-day extension of the briefing schedule in the case "to provide a reasonable period for EPA to determine its course of conduct." Opening briefs have not yet been filed.
The other environmental groups in the coalition are the Clean Air Council, Earthworks, the Environmental Integrity Project, and the Group Against Smog and Pollution, represented in part by Earthjustice.
The debate over holding the methane case in abeyance comes as the Trump administration reconsiders its position in several other lawsuits over regulations, most notably the Clean Power Plan. Many of the same groups have urged the D.C. Circuit to reject a similar Trump administration request to pause that case — which has been fully briefed and argued (Energywire, April 6).
https://www.eenews.net/energywire/2017/04/17/stories/1060053134
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Democratic Senators Question Pruitt's Methane ICR Withdrawl
Apr 17, 2017 | Inside EPA
Several Democratic senators are challenging EPA Administrator Scott Pruitt's decision to quickly withdraw an information collection request (ICR) on methane emissions from the existing oil and gas sector, suggesting his decision was solely influenced by Republican state officials who opposed the request and that he did not weigh other input.
“It is difficult for us to believe that in the two weeks between your confirmation and your withdrawal of the ICR, you followed through with your promise you made on January 18, and examined 'the submitted data to determine the appropriate next steps' on the ICR,” write Sens. Sheldon Whitehouse (D-RI), Brian Schatz (D-HI), Tom Carper (D-DE) and Ed Markey (D-MA) in an April 14 letter to Pruitt.
They add that it appears the “submitted data” Pruitt reviewed “may have consisted entirely of the letter from Republican officials claiming the ICR was an 'unnecessary and onerous burden on oil and gas producers.'”
That refers to a March 1 letter sent by several Republican state attorneys general (AGs) and governors urging Pruitt to withdraw the data request, which would have formed the basis for a rule limiting emissions of the potent greenhouse gas from existing sources. The GOP officials in their letter called the ICR “harassment” and said the states were outright opposed to any potential methane rule for existing oil and gas operations.
Pruitt withdrew the ICR on March 2, just one day after, citing the letter he had received from the GOP officials.
Now, the Democratic senators in their recent letter are accusing Pruitt of prioritizing the input of Republican state officials and are highlighting his “well-documented” ties to the Republican Attorneys General Association (RAGA), with which they say Pruitt met just days before acting on the ICR.
And the senators reference a 2014 report from the New York Times that found Pruitt coordinated with industry groups while serving as Oklahoma's AG to oppose Obama-era climate rules. “[W]e are aware that when you were Attorney General of Oklahoma, it was a practice of your office to take industry-produced data and talking points, and represent them as the official position of state government,” they write.
In addition, the senators note an April 3 letter from Democratic AGs from eight states and the District of Columbia strongly opposing the ICR withdrawal. “You unilaterally withdrew” the ICR “with no meaningful explanation, let alone a reasoned one,” the states wrote, urging Pruitt to “reconsider that decision, or otherwise explain how EPA intends to fulfill its legal obligation to address methane leaks that are endangering public health and welfare.”
The lawmakers in their letter ask Pruitt to comment on how he will consider the concerns raised in the letter from the Democratic AGs as he reviews “next steps on methane regulations.”
They also ask Pruitt to list events associated with RAGA and the related Rule of Law Defense Fund he has attended since his nomination to be EPA administrator, as well as whether he discussed the ICR at any of those events. And they call on Pruitt to provide “either documentation of the waiver granted by the Designated Agency Ethics Official allowing you to sign the March 2 notice or an explanation as to why no such waiver was sought or granted and how your signing of the March 2 [notice] in the absence of a waiver comports with the obligations set forth in your ethics agreement.”
The Democrats' letter comes after the four senators, joined by several fellow Democrats, wrote April 6 to Pruitt requesting he provide the data and analysis supporting his decision to quickly withdraw the ICR, and to release the information collected thus far.
https://insideepa.com/daily-feed/democratic-senators-question-pruitts-methane-icr-withdrawl
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Golf Facility Transforming into Large Frac Sand Mine
Apr 17, 2017 | Fuel Fix
By Jordan Blum
Fort Worth’s Emerge Energy Services said it is buying a small sand facility south of San Antonio to transform it into a much larger mine to serve the hydraulic fracturing needs of the oil sector.
The San Antonio-based Osburn Materials facility currently produces sand to for building materials, golf courses and baseball fields. Emerge is buying it for $20 million with plans to spend much more to rapidly expand it into a sand mine for the oil and gas sector.
The energy sector is increasingly relying much more on sand for fracking, and in some cases using up to 1,000 truck loads of sand for a single well.
Emerge Energy said the mine, which is located south of San Antonio off of Pleasanton Road, has 80 million tons of sand reserves that can serve Texas oil needs.
“Osburn’s (sand) reserves, located near the heart of the Eagle Ford basin, will be highly desirable for frac sand purposes, as the sand is high quality and logistically-advantaged,” said Emerge Chairman Ted Beneski.
The mine is close to South Texas’ Eagle Ford shale, and offers nearby rail access to ship sand to West Texas’ Permian Basin.
Emerge CEO Rick Shearer said the plant can produce 300,000 tons of dry sand a year. By the end of the year, Shearer said the goal is to double the production levels. An even larger expansion will build it out to 3 million tons of dry sand production annually by as soon as mid-2018, he said.
However, the project could draw the ire of residents and environmentalists. Just a little south of the Osburn Materials site, in Atascosa County, residents are fighting a 300-acre sand mine proposed by Preferred Sands of Radnor, Pa., citing health risks, potential well water contamination, truck traffic and potential damage to the site of the 1813 Battle of Medina, a bloody fight in the early years of Mexico’s long war for independence.
Although a sand mine has very few carbon emissions, there are concerns the mines despoil pristine land and create health hazards by kicking up silica dust, which has been linked to lung cancer, tuberculosis and other lung diseases when inhaled.
Emerge Energy and other frac sand companies primarily own sand mines in Wisconsin and Minnesota where there’s the more desired Northern White sand. However, the Permian Basin oil boom is leading to new and expanded Texas mines. Emerge already owns another Texas sand mine near Kosse.
http://fuelfix.com/blog/2017/04/17/golf-facility-transforming-into-large-frac-sand-mine/
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Alaska Brings Ambitious LNG Export Project to FERC
Apr 17, 2017 | E&E Energywire
By Margaret Kriz Hobson
The state of Alaska plans to submit an application to the Federal Energy Regulatory Commission today for construction of a $40 billion to $45 billion pipeline and export project aimed at commercializing the state's giant North Slope natural gas reserve.
The Alaska Gasline Development Corp. (AGDC), which is handling the project for the state, voted last week to send a 55,000-page application to FERC for construction of the massive three-phase venture.
Under that plan, the state would build a natural gas processing plant in Prudhoe Bay, home to the North Slope oil industry. The gas would be shipped via an 800-mile pipeline to an export terminal on the Kenai Peninsula in southern Alaska. Once converted into liquefied natural gas, the fuel would be loaded into tankers for delivery to Asian customers.
The Alaska LNG project was originally developed under a partnership between the state and Alaska's major oil companies — Exxon Mobil Corp., BP Alaska and ConocoPhillips Co. But late last year, the companies decided not to move forward with the expensive venture due to low natural gas prices and an oversupply of LNG on the world market.
Now state officials are seeking to move the project forward on their own. They're courting potential customers, investors and equity partners in a number of Asian countries that are expecting increased energy demand over the next seven years. AGDC is specifically targeting China, Japan, Singapore and South Korea.
Alaska Gov. Bill Walker (I) and his team recently discussed the Alaska LNG project with Chinese President Xi Jinping and his Chinese ministers when Xi made a stop in Anchorage. The governor also hopes to meet with top Japanese officials in an upcoming trip.
Meanwhile, Alaska officials are lobbying the White House for federal support for the Alaska LNG project. On Saturday, Walker met with Vice President Mike Pence when Pence's plane made a refueling stop in Alaska. The governor used the opportunity to promote the Alaska LNG project, as well as the state's strategic location for military operations in the Asia-Pacific region.
In March, Walker sent a letter asking President Trump to exempt the natural gas venture from two dozen environmental mandates. He's also seeking $40 billion in federal loan guarantees for the plan, which would more than double a federal loan guarantee program for an Alaska project passed by Congress in 2004.
Last week, AGDC President Keith Meyer noted that Trump administration officials have spoken favorably about Alaska's gas venture.
"They said it is the big, meaty kind of project that they like to see," Meyers said Friday at a state legislative hearing.
In submitting the Alaska LNG application to federal regulators, AGDC officials are asking FERC to complete work on a draft environmental impact statement in the second quarter of 2018, and to issue the final EIS by the end of 2018.
Under that schedule, the state hopes to make a final investment decision on the project in early 2019. But given the size and complexity of the ambitious project, energy experts suggest the state's proposed timeline is unrealistic.
"This will be the largest and most complicated EIS that FERC has done," said Larry Persily, former head of the federal Office of the Federal Coordinator for Alaska Natural Gas Transportation Projects. "So common sense says it's not going to go quicker than anyone expects. It probably will go slower."
The pace of the FERC environmental review could depend on the state's ability to pay for the EIS studies. "FERC selects the contractor to work under its direction to prepare the EIS," explained Persily, now special assistant to the Kenai Peninsula Borough Mayor's Office. "And the project applicant pays the bill."
The Alaska gas line corporation has a $100 million budget for 2017 and is under close scrutiny from the state Legislature, which is struggling to cut Alaska's $3 billion budget deficit.
Before FERC will sign off on the project, AGDC must also settle a property ownership agreement with Exxon Mobil, BP and ConocoPhillips. The oil companies currently own or have an option to buy 650 acres of land in Nikiski, where the Alaska LNG gas liquefaction plant and marine export terminal are proposed to be built.
Under federal law, AGDC must control that site before regulators will grant a final permit.
https://www.eenews.net/energywire/2017/04/17/stories/1060053123
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Apr 17, 2017 | Fuel Fix
By Bloomberg
A well operated by BP Exploration Alaska Inc. on Alaska’s frigid North Slope is no longer spraying crude oil after leaks were discovered Friday morning.
The crude spray onto the well pad, which occurred while the well in the Greater Prudhoe Bay area was venting gas, had stopped by Sunday afternoon. A second leak at the well was emitting gas at a reduced rate, the state’s Department of Environmental Conservation said in a statement. Well pressure was monitored through the night and excess pressure was bled off to keep it within a safe range.
The volume of the leak hasn’t been determined and the cause of the release is unknown, the department said. There have been no injuries and no reports of harm to wildlife.
Based on aerial pictures, the release appears to be contained to the gravel pad surrounding the well head and hasn’t reached the surrounding tundra, BP said in a statement. The well has been shut in since Friday and the response is ongoing, BP spokeswoman Dawn Patience said by email Sunday.
The leak comes as the remote North Slope, once home to America’s biggest oilfields, enjoys a resurgence as producers work to boost output from aging wells and extend their reach to new supplies. North Slope production rose to 565,000 barrels a day in March, its highest level since December 2013. It’s another sign, along with multibillion-barrel discoveries in recent months, that the area may be reversing decades of declining volumes and investment.
Alyeska Pipeline Service Co.’s Trans-Alaska Pipeline System, which runs from Prudhoe Bay south to Valdez, isn’t affected by this incident and is operating normally, Michelle Egan, a company spokeswoman, said by telephone Sunday. Alyeska is a joint partnership led by the North Slope’s top producers, BP Plc, Exxon Mobil Corp. and ConocoPhillips.
Alaskan North Slope crude was valued at $1.90 a barrel over U.S. benchmark West Texas Intermediate on April 13. It has averaged a $1.16 premium to WTI this year.
http://fuelfix.com/blog/2017/04/17/bp-well-leak-in-alaska-stops/
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Hilcorp Fixes Leaking Cook Inlet NatGas Line
Apr 17, 2017 | Natural Gas Intelligence
By Joe Fisher
A leaking natural gas line in the Middle Ground Shoal area of Alaska’s Cook Inlet late last week, pipeline operator Hilcorp Alaska LLC said.
“Weather and ice conditions allowed divers to begin their work on Saturday, April 8,” the company said. “A total of 12 dives were completed on the fuel gas line in order to locate the leak, then properly position, stabilize and prepare the pipeline for repair.”
The leak point was on the bottom of the pipeline, which was resting on a boulder embedded in the seafloor. Initial inspections noted the breach to be approximately 2 inches in size. The affected section of the line was lifted about 1.5 feet from the seafloor, then stabilized, allowing for closer, more careful inspection.
The actual size of the pipeline breach turned out to be three-sixteenths of an inch by three-eighths of an inch.
“Now that the leak has been stopped, over the next several days, as weather permits, further inspection and stabilization of both the oil and gas pipelines in Middle Ground Shoal will be completed,” Hilcorp said. “Neither pipeline will be returned to regular service until Hilcorp, along with state and federal regulators, agree it is safe to do so."
The natural gas line leak was discovered in February, and at the time sea ice prevented its immediate repair. Regulators later ordered inspection of an adjacent crude oil pipeline. The leaking natural gas line necessitated the shut-in of crude oil production from the platforms served by the fuel gas line.
http://www.naturalgasintel.com/articles/110139-hilcorp-fixes-leaking-cook-inlet-natgas-line
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New Challenge Pins Fouled Pa. Water on Driller
Apr 17, 2017 | E&E Energywire
By Ellen M. Gilmer
Weeks after a federal judge scrapped a jury verdict holding Cabot Oil & Gas Corp. responsible for water contamination in Pennsylvania, a new plaintiff has emerged.
Dimock, Pa., resident Raymond Kemble late last week filed suit against Cabot and two other companies, alleging that they fouled local groundwater via "reckless" drilling activities in the Marcellus Shale.
The lawsuit notes that Kemble began noticing discoloration and sediment buildup in his drinking water after Cabot, GasSearch Drilling Services Corp. and Williams Field Services Co. LLC drilled several wells near Kemble's property. Many of those wells had received violation notices from state regulators in 2008 and 2009.
"Plaintiffs' water continues to this day to turn different colors, emit different foul and toxic chemical odors, making it unfit to use for any purpose, let alone drinking water, and making it unfit to even breathe in the fumes given off by the water," the complaint says.
Kemble was once a plaintiff in the original litigation, but court records show he reached a settlement with Cabot in 2012.
"Mr. Kemble's complaint contains numerous allegations and claims, many of which appear to have been resolved or settled long ago with Cabot," company spokesman George Stark said in an email, adding that Kemble is simply opposed to oil and gas development in general.
"Mr. Kemble has been active for years in the media voicing his opposition to development of natural gas in Pennsylvania," he wrote. "This suit appears to be nothing more than a continuation of that ongoing monologue. Cabot intends to vigorously defend the lawsuit."
The lawsuit attempts to paint a much broader picture than the one at issue in the case that went to trial last year. That lawsuit — with Dimock's Ely and Hubert families as the sole remaining plaintiffs — was drastically narrowed by settlements, summary judgment rulings and pre-trial motions in the years since its 2009 filing.
Last year's trial, for example, focused on one group of wells at the "Gesford" well pad, while Kemble's lawsuit complains of impacts from 20 nearby wells.
A jury issued a verdict against Cabot last year, but Chief Magistrate Judge Martin Carlson set aside the determination last month and ordered a new trial, finding that the evidence in the case did not support the jury's conclusion (Energywire, April 3).
https://www.eenews.net/energywire/2017/04/17/stories/1060053133
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Calif. Urges EPA to Set Stricter Standards for Trains
Apr 17, 2017 | E&E Greenwire
By Camille von Kaenel
California has petitioned U.S. EPA to set more stringent emission standards for locomotives.
Mary Nichols, chairwoman of the California Air Resources Board, urged EPA Administrator Scott Pruitt last week to update the standards to bring pollution in affected communities to near zero and help states achieve federal air quality standards.
CARB's request adds pressure on EPA to act at a time when the two regulating agencies are preparing for contentious negotiations over vehicle emission standards. The San Joaquin Valley Air Pollution Control District had already petitioned EPA to set more stringent locomotive standards in June 2016.
Matthew Rodriquez, California's secretary for environmental protection, told state environmental officials this month the move was part of an ongoing effort to address "both NOx emissions and climate change."
Rail yards can be a significant source of air pollution in California, which has set forth a plan to cut emissions from its entire freight system. But the state has no special authority to regulate locomotive emissions.
California's proposed standards would require newly manufactured locomotives to achieve 99 percent control of nitrogen oxides and diesel particulate matter, 98 percent control of hydrocarbons, and 10 to 35 percent control of greenhouse gases.
Nichols requested a response from EPA by this summer.
https://www.eenews.net/greenwire/2017/04/17/stories/1060053161
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Lobbyist Urges Restraint on CAFE Changes
Apr 17, 2017 | E&E Climatewire
By Camille von Kaenel
Automakers are urging restraint as academics propose alternatives to vehicle mileage and emissions standards that the Trump administration has started reconsidering.
Car companies have told the government the current emissions standards through 2025 are difficult to meet because Americans are buying gas-guzzling trucks. But Chris Nevers, the vice president for energy and the environment at the Alliance of Automobile Manufacturers, told a panel of free-market think tankers Friday that automakers had concerns about rewriting the current regulations.
"We don't want to repeat this process again and again and again dependent on the administration," he said. "You can see a rapid cycling of this where standards get issued and pulled back and reissued.
"The industry wants some certainty on where the standards will be, but you need them to be sustainable," he added.
He said he was "interested" in any proposal to improve the current system but cautioned that fundamentally changing the rules would need 60 votes in Congress, and he did not see that happening.
Automakers lobbied President Trump heavily to reconsider the rules as soon as he won the election. They said the Obama administration rushed to finalize the rules in its final days, and Trump agreed, reopening a review last month.
Now, U.S. EPA and the National Highway Traffic Safety Administration have until April 2018 to decide whether to lower the tailpipe requirements for 2022 to 2025. California has vowed to plow ahead with its own stringent version of the rules, raising the possibility of a showdown over a patchwork of regulations.
The White House will seek to broker an agreement with the California Air Resources Board (Greenwire, April 12).
Nevers acknowledged that automakers have met and exceeded the fuel economy standards so far.
"For the first couple years, things were going great," he said. "Even our internal modeling showed that the fleet could meet the standards out to 2020 standards. We all knew that there would be overcompliance."
That's changed, he said. The drop in fuel prices has prompted consumers to buy more gas-guzzling trucks. Data released by NHTSA show automakers falling behind the fleetwide fuel economy target for 2016, although they can still meet the standards using credits banked from earlier years of overcompliance.
Flexibilities within the program, like credits for flex-fuel vehicles, are also gradually getting restricted, Nevers argued. Continuing record high sales are "not a given" either, he said.
"It doesn't look good," he said.
Last week, Mitch Bainwol, president and CEO of the Alliance of Automobile Manufacturers, called concerns that the standards would be rolled back "fallacious." He said automakers were seeking to adjust the timing of the requirements, not the ultimate targets.
Environmental advocates fear any change to the standards would mean more pollution and fuel use.
Academics have seized on Trump's reconsideration of the rules to propose alternative regulations.
Nevers was speaking at an event held by the libertarian R Street Institute promoting "clean tax cuts" for automakers who reduce their emissions. The proposal by Ian Adams would grant corporate tax cuts to automakers who overcomply with the current regulations.
"We want to stick to things that are a positive feedback loop rather than a negative feedback loop," said Rod Richardson, the president of the Grace Richardson Fund. "Whether [the climate change problem] does or does not exist, you could still address it with benefits to the economy with supply-side economics."
Former Obama officials have proposed a cap-and-trade system for vehicle emissions (Climatewire, March 28).
https://www.eenews.net/climatewire/2017/04/17/stories/1060053139
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World Has Questions; State Department Has No Answers
Apr 17, 2017 | E&E Climatewire
By Jean Chemnick
The world has a lot of questions about how the United States is going to meet its near-term greenhouse gas emissions pledges, and so far it hasn't gotten many answers from the Trump administration.
China, the United Kingdom and Brazil are among the nations that have submitted questions formally to the U.N. Framework Convention on Climate Change's multilateral assessment process since early January, requesting more details on how the United States plans to cut emissions 17 percent below 2005 levels by 2020.
A former State Department official called the process "one of the most serious, formal ways for officials to ask other governments how committed they are to climate action." The State Department has until April 30 to respond, but it is an open question whether it will do so. An agency spokesman declined to answer questions about the State Department's plans.
President Obama made the 2020 commitment at a summit in Copenhagen, Denmark, in 2009. Six years later, in Paris, he followed it with a steeper promise to cut carbon 26-28 percent. Only the later pledge is connected to the Paris Agreement. Still, the 2020 promise is likely to get caught up in the Trump administration's evaluation of whether to remain in the global deal or at least whether to offer a new, laxer target.
"I'm not surprised to see the questions unanswered at a point where it doesn't yet seem as though the new administration has decided what it's going to do about Paris," noted former U.S. Special Envoy for Climate Change Todd Stern.
A final decision on Paris is due next month, timed for a leader-level summit of the Group of Seven (G-7) nations in Italy.
While the 2020 pledge is not part of the Paris deal, it did guide U.S. climate policy through most of the Obama administration. The 17 percent target mirrored the goals of a cap-and-trade bill that passed the House in 2009, and Obama's 2013 Climate Action Plan aimed to deliver the same level of reductions.
The questions posted on the UNFCCC website note that the United States may not be on track to meet the commitment with existing policies. That's despite repeated assertions last year by the outgoing Obama administration that market forces and other drivers would deliver U.S. climate commitments, despite the likelihood that President Trump would roll back regulations (Climatewire, March 6).
The United States submitted its second U.S. biennial report to the UNFCCC last year, which estimated that current measures including U.S. EPA's Clean Power Plan, methane rules and other policies now would put the country on track to cut emissions between 13 and 15 percent below 2005 levels in 2020, compared with the Copenhagen promise of 17 percent.
Those policies are now in the process of being dismantled, but other countries in their questions to the United States asked for details about how the world's largest historic emitter would cut emissions beyond what it had already done.
"What level of performance standards does U.S. expect in future for cars?" queried Japan.
China asked about the future of the Clean Power Plan in a February submission, which came a month before Trump formally announced plans to kill the rule.
"Has the U.S. prepared any alternative approaches to mitigation emission of electricity sector in case the CPP is cancelled?" it asked.
The United Kingdom asked for a new assessment of U.S. emissions, while Brazil asks about the 2016 report's reference to possible action by "future administrations or Congress."
"What are the commitments to put the additional measures in place?" it asked.
If the Trump administration opts to remain in Paris, it is expected to offer either a range of emissions-reduction commitments that track roughly with business as usual or to adopt an end date that is far enough into the future to eliminate the need for immediate action. In addition to killing the Clean Power Plan, the Trump administration has also targeted rules for vehicles and oil and gas methane and has proposed curtailing climate spending at federal agencies.
https://www.eenews.net/climatewire/2017/04/17/stories/1060053141
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U.S. Air Quality Improves 'Dramatically' — Report
Apr 17, 2017 | E&E Greenwire
By Cecelia Smith-Schoenwalder
Toxic air releases are down by half over the last 10 years, according to a new report.
The report from the Association of Air Pollution Control Agencies compares U.S. EPA and other agency data from states, including the 20 states that serve on the AAPCA board of directors, to show that federal, state and local air quality agencies have made progress in "virtually every measure of air pollution control."
"Air quality has improved dramatically, and ambient air monitoring data continues to reveal the downward trend of air pollutants. It is, perhaps, the greatest story seldom told, and one that is certainly worth telling," said AAPCA President Sean Alteri, director of the Kentucky Division for Air Quality.
Reported toxic air releases were down 56 percent, or over 851 million pounds, between 2005 and 2015, according to the report.
As of 2015, the combined emissions of the six criteria air pollutants that have federal standards were down 71 percent since 1970.
The report also found that the United States has "far exceeded" the international air quality trends. Over the last decade, the United States reported some of the lowest levels of average annual fine particulate matter and the largest reduction in carbon dioxide emissions in the world.
AAPCA is an organization focused on assisting state and local air quality agencies with implementation and technical issues related to the federal Clean Air Act.
Between 2000 and 2015, states that are members of AAPCA saw a more rapid reduction of nitrogen oxides emissions than the national average, according to the report.
"AAPCA members, who have primary responsibility for air quality in parts of the country growing in population and economic activity, have demonstrated leadership across all key metrics of air quality success," said Stuart Spencer, vice president of the Arkansas Department of Environmental Quality.
https://www.eenews.net/greenwire/2017/04/17/stories/1060053167
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