Preview Newsletter
PM ACC (test) 13/7/17
-
TSCA Assessment of CTC to Include Consumer Products
Jul 13, 2017 | Chemical Watch
By Andrew Turley
The US EPA expects to include exposures from consumer products, such as adhesives, degreasers and paints, in its TSCA risk assessment of carbon tetrachloride (CTC). -
EPA Proposes Formaldehyde Labelling Change for Composite Wood Products
Jul 13, 2017 | Chemical Watch
The US EPA has proposed allowing composite wood materials that meet new standards for formaldehyde emissions, to be labelled as such before the requirements take effect. -
US EPA Round-Up
Jul 13, 2017 | Chemical Watch
The US EPA published a Federal Register notice announcing the availability of scope documents for the first ten substances subject to risk evaluation under the revised TSCA. -
Report: Some Chemicals May Alter Gene Function for Several Generations
Jul 13, 2017 | Environmental Working Group
By Alanna Wellspeak
The harmful effects of some chemicals can be passed down not only to children, but also to grandchildren and even great-grandchildren, according to a new EWG report on the growing body of transgenerational toxicity research. -
Canada Adds 18 Substances to DSL
Jul 13, 2017 | Chemical Watch
The Canadian government has added 14 substances to part 1 of the Domestic Substances List (DSL) and four to part 3 under review of the new substance programme. -
Dancet: REACH Change Could Ensure Dossier Updates 'Taken Seriously'
Jul 13, 2017 | Chemical Watch
By Luke Buxton
A change to the REACH Regulation could ensure that companies "take their job seriously" when it comes to updating registration dossiers, Echa head Geert Dancet has said. -
Efsa Consults on BPA Hazard 'Reassessment'
Jul 13, 2017 | Chemical Watch
The European Food Safety Authority (Efsa) is consulting on the draft protocol for its reassessment of the hazards of bisphenol A. -
Dutch REACH Bureau Releases Annual Report
Jul 13, 2017 | Chemical Watch
The Dutch advisory body dealing with the REACH Regulation has released its 2016 annual report. -
Echa Round-Up
Jul 13, 2017 | Chemical Watch
The European Commission has organised a workshop on two substances recently added to the REACH authorisation list because of their endocrine-disrupting properties. -
Echa's Rac and Seac Agree on Sodium Dichromate Authorisation
Jul 13, 2017 | Chemical Watch
A company's application for authorisation to use sodium dichromate as a mordant in wool dyeing has been approved by Echa's Risk Assessment and Socio-economic Analysis Committees (Rac and Seac). -
Enterprise Plans Ethylene Export Terminal for Houston
Jul 13, 2017 | Houston Chronicle
By Jordan Blum
Enterprise Products Partners said Wednesday it plans to built a terminal along the Houston Ship Channel to export the primary building of most plastics. -
U.S. Natural Gas Fueling ‘Second Revolution’ in Rising LNG Supply, Says IEA
Jul 13, 2017 | Natural Gas Intelligence
By Carolyn Davis
A major transformation of the global natural gas market is underway, driven by new supplies coming from the United States to meet growing demand in developing economies and as industry surpasses the power sector as the largest source of gas demand growth, according to the International Energy Agency (IEA). -
Environmentalists Fault Pruitt's 'Closed Mind' to Attack RMP Delay
Jul 13, 2017 | Inside EPA
Environmentalists challenging EPA's nearly two-year delay of an Obama-era facility safety rule are citing Administrator Scott Pruitt's prior opposition to the rule while serving as Oklahoma's GOP attorney general (AG) as evidence that he has an “unalterably closed mind” on the rule and that the delay is unlawful. -
Pruitt Sets Longer-Term Plans To Remake EPA, Secure Deregulatory Agenda
Jul 13, 2017 | Inside EPA
By Dawn Reeves
Even as EPA Administrator Scott Pruitt works to roll back a host of Obama-era rules as a relatively short-term priority, he is preparing a set of medium-term plans for the agency's budget and policy agenda that would remake the agency and institutionalize the Trump administration's deregulatory agenda. -
Better to Target Zero Emissions Than 100% Renewable Energy
Jul 13, 2017 | The Economist
Not that long ago, the world wondered whether clean energy could survive without lavish government support. Now the question is how far it can spread. -
Enforcement Pick Shrugs off Conflict-Of-Interest Concerns
Jul 13, 2017 | E&E Greenwire
By Kevin Bogardus, Corbin Hiar and Arianna Skibell
President Trump's pick to lead U.S. EPA's enforcement office is promising to avoid politics and enforce the law if confirmed to the job. -
Brown, Bloomberg Announce Plan to Track Climate Progress
Jul 13, 2017 | AP (in the Washington Post)
By Kathleen Ronayne
California Gov. Jerry Brown announced yet another plan Wednesday to keep the United States on track to reduce greenhouse gas emissions under the international Paris climate agreement. -
Jerry Brown Tries to Shore Up Cap-and-Trade Support in California
Jul 13, 2017 | The Wall Street Journal
By Alejandro Lazo
California Gov. Jerry Brown may have seized the role as a global-warming crusader abroad, but back home he is struggling to unite Democrats and even environmentalists around a key piece of his climate change agenda.
Industry and Association News - There are no clips to report at this time.
LCSA News
Chemical Management News
Energy News
Chemical Security News
Transportation News - There are no clips to report at this time.
Environment News
-
TSCA Assessment of CTC to Include Consumer Products
Jul 13, 2017 | Chemical Watch
By Andrew Turley
The US EPA expects to include exposures from consumer products, such as adhesives, degreasers and paints, in its TSCA risk assessment of carbon tetrachloride (CTC).
Although the Consumer Product Safety Commission banned its use in consumer products in 1970, the EPA and NGOs have found products, such as sticky tape, containing CTC marketed online which consumers could buy and use.
However, Halgonated Solvents Industry Alliance (HSIA) director Faye Graul told Chemical Watch there are "no consumer products containing carbon tetrachloride", and "even where it is used, it is severely restricted."
She described the EPA’s comments as "inaccurate" and said the agency is "showing a lack of knowledge" about the substance.
The EPA may yet decide that inclusion in the risk assessment of exposures from consumer products is not appropriate, according to the controversial "conditions of use" concept. But the scoping document suggests that – in principle at least – it will not disregard exposure via finished products, just because the substance is already banned in them.
National or global impact?
Carbon tetrachloride is a high production volume substance, used primarily as a feedstock in the production of fluorocarbons, perchloroethylene and agricultural chemicals. The fluorocarbons include hydrochlorofluorocarbons (HCFCs), hydrofluorocarbons (HFCs) and hydrofluoroolefins (HFOs), widely used in refrigeration and air conditioning.
In comments to the EPA earlier this year, the HSIA urged them to "use its flexibility in the scoping process to provide definitions for feedstock and intermediate uses and exclude them from the risk evaluation".
It said that "the vast majority of CTC is only loaded in bulk and shipped directly to feedstock customers, all of whom operate large integrated chemical manufacturing operations."
Liz Hitchcock at NGO Safer Chemicals, Healthy Families (SCHF) told Chemical Watch she is concerned the agency has failed to incorporate "important data on use and exposure that SCHF and other commenters submitted".
SCHF argues that the scope of the risk assessment should be much broader, taking into account, for example, the impacts of emissions on atmospheric ozone levels and the global greenhouse effect.Reprotoxicity
In its original comments, it said that the EPA should aim to fill data gaps associated with endocrine activity and reproductive-developmental toxicity.
But the latter is not listed in the scoping documents as one of the non-cancer endpoints that the agency "currently expects will likely be the focus of its analysis". These are acute, liver and kidney toxicity and skin irritation-sensitisation.
Reproductive-developmental toxicity has been the subject of heated debate in the EU.
Following REACH substance evaluation by France, Echa asked the CTC registrants to supply extended one-generation reproductive toxicity study (Eogrts) data. Studies have shown evidence of testicular atrophy, abnormality in the process of spermatogenesis and inhibition of the oestrous rhythm, as well as weight and vascularisation decreases for the ovaries and uterus.
But the registrants said that the data were unnecessary and in 2015 Echa's Board of Appeal dismissed the request on the grounds that only workers could be exposed and risk was managed by an exposure limit and strict risk management measures.
The EPA expects to publish a problem formulation document within six months. This will refine the scope – "as an additional interim step" – before publication of the draft risk assessment.
https://chemicalwatch.com/57652/tsca-assessment-of-ctc-to-include-consumer-products
-
EPA Proposes Formaldehyde Labelling Change for Composite Wood Products
Jul 13, 2017 | Chemical Watch
The US EPA has proposed allowing composite wood materials that meet new standards for formaldehyde emissions, to be labelled as such before the requirements take effect.
The action follows concerns from industry stakeholders that the final rule's prohibition on labelling the products as 'TSCA title VI compliant' before the compliance date would be problematic.
In its 11 July proposal, the agency said it shares these, and "believes that the risk of unintentional supply chain disruption is substantial, though through prompt regulatory action, avoidable". It is therefore proposing to delete the prohibition.
The agency said, this change would also "promote lower formaldehyde emitting products entering commerce earlier".
It is engaged in a separate rulemaking process, designed to delay several deadlines associated with the new regulations, due to come into force on 12 December. It was in comments on this that several stakeholders asked the EPA to allow manufacturers of compliant products to begin labelling them before the rules take effect.
The EPA has published the amendment as both a proposed rule and a 'direct final rule', a process that can be used for non-controversial changes. The Composite Panel Association (CPA) was among groups that advocated this spring for using direct final rulemakings in this way.
If no adverse comments are received during the 14-day comment period, ending on 26 July, the direct final rule will take effect on 25 August. Objections will result in the agency withdrawing it and proceeding with the traditional proposed rulemaking, instead.
The agency also employed this dual publication approach for its proposal to extend the formaldehyde emissions deadlines by 100 days, but will have to proceed with formal rulemaking because adverse comments were received.
The formaldehyde emissions rule nationalises the California Air Resources Board (CARB) standards applicable to hardwood plywood, medium-density fibreboard, particleboard – and finished goods containing these products – sold, supplied, manufactured and imported in the US. Its implementation was delayed twice after President Trump took office.
https://chemicalwatch.com/57634/epa-proposes-formaldehyde-labelling-change-for-composite-wood-products
-
Jul 13, 2017 | Chemical Watch
TSCA scope documentsThe US EPA published a Federal Register notice announcing the availability of scope documents for the first ten substances subject to risk evaluation under the revised TSCA. This follows the documents' release to the public on 22 June.
It has also advised that it is reopening existing dockets for these substances to allow input on the problem formulation phase of the assessments.Receipt of information under TSCA
The agency has announced receipt of information submitted pursuant to a rule, order or consent order under TSCA for propanoic acid, 2-methyl-,3-(benzoyloxy)-2,2,4-trimethylpentyl ester.
The plasticiser is subject to testing requirements for a group of high production volume (HPV) substances.
The EPA received a daphnia magna reproduction test.Access to CBI
The agency has granted a contractor and its subcontractors access to information submitted under TSCA, including some information that has been claimed as confidential business information (CBI).
The companies have been authorised to access information submitted under sections 4, 5, 6, 8 and 21 of TSCA in support of a project with the Office of Pollution Prevention and Toxics (OPPT). This includes providing support in scientific health and environmental assessments; risk management evaluations; and document processing for new and existing chemicals and products of biotechnology and nanotechnology under TSCA.
The contractor is Syracuse Research Corporation (SRC) of North Syracuse, New York and the subcontractors are:
BeakerTree Corporation of Arlington, Virginia;
Essential Software, Inc of Potomac, Maryland;
and
Versar, Inc of Springfield, Virginia.
https://chemicalwatch.com/57516/us-epa-round-up
-
Report: Some Chemicals May Alter Gene Function for Several Generations
Jul 13, 2017 | Environmental Working Group
By Alanna Wellspeak
The harmful effects of some chemicals can be passed down not only to children, but also to grandchildren and even great-grandchildren, according to a new EWG report on the growing body of transgenerational toxicity research.
The impact of toxic chemicals on generations of offspring with no direct exposure to the contaminant is known as a transgenerational effect. A limited number of new studies suggest that short-term exposures to some chemicals during pregnancy can cause reproductive system damages, alter body weight, and even increase the risk of cancer for great-grandchildren of exposed animals.
“New science suggests that exposure to contaminants during pregnancy can have health impacts decades later,” said EWG Senior Analyst Sonya Lunder, author of the report. “We need to know more about this phenomenon in order to protect our children and great-grandchildren from the effects of harmful pollutants.”
Groundbreaking research by Mohan Manikkam and Michael Skinner of Washington State University at Pullman helped establish the principle of transgenerational toxicity by showing how toxic chemicals affect subsequent generations that are not directly exposed. In one study, the researchers tested the transgenerational impacts of mixtures of chemicals that people are commonly exposed to in everyday life, including bug repellents, plastics additives and jet fuel. After exposing pregnant rats, they bred three subsequent generations of animals with no exposure to the contaminants.
Despite no direct exposure to the chemicals, the third-generation rats had damaged reproductive systems. Females had an earlier onset of puberty and fewer undeveloped eggs in their ovaries. Male rats had higher levels of dead sperm.
Very few studies of multigenerational health effects in people have been conducted so far. More experimental research is necessary to learn more about this phenomenon and shed light on several concerning health trends including infertility, obesity, and even cancer.
http://www.ewg.org/release/report-some-chemicals-may-alter-gene-function-several-generations
-
Canada Adds 18 Substances to DSL
Jul 13, 2017 | Chemical Watch
The Canadian government has added 14 substances to part 1 of the Domestic Substances List (DSL) and four to part 3 under review of the new substance programme.
It has also removed significant new activity (Snac) reporting requirements for 33 substances. Consequently they have been moved from part 2 of the list to part 1.
Reporting obligations were imposed on the substances in June 2008 and September 2009 because they were considered to present an ecological risk, based on available information at the time.
They were reevaluated as part of the aromatic azo and benzidine-based substance grouping under the Chemicals Management Plan (CMP). A final assessment, published in March, indicated that they are no longer considered to be a potential ecological threat or to raise health concerns.
Finally, there are changes to the listing of four substances. They were added in 2011 and 2012 under masked names to protect confidential business information. This year, industry indicated that this is no longer needed, so their substance identifiers were updated and they were moved from part 3 to part 1.
The DSL is an inventory of substances in the Canadian marketplace. Those that are not on the list are considered new and are subject to notification and assessment requirements before they can be manufactured in or imported into Canada.
https://chemicalwatch.com/57654/canada-adds-18-substances-to-dsl
-
Dancet: REACH Change Could Ensure Dossier Updates 'Taken Seriously'
Jul 13, 2017 | Chemical Watch
By Luke Buxton
A change to the REACH Regulation could ensure that companies "take their job seriously" when it comes to updating registration dossiers, Echa head Geert Dancet has said.
In an annual exchange of views with the European Parliament's Environment Committee (Envi) this week, Mr Dancet said industry is wrongly interpreting Article 22 of REACH concerning the further duties of registrants.
Industry, he said, "basically thinks: we have registered and have no more work to do. They ignore this entire article, which has nine provisions for which the dossier needs to be updated."
It is "wrong" that companies should not pay again to revise their registrations – they have paid once, but dossiers need to be updated and the scientific work of Echa is ongoing, he said.
It should be "normal" that companies update their dossiers at least every five or ten years, Mr Dancet said, and they should pay an additional fee for the extra work that Echa does in processing the documents.
The agency has undertaken a study to examine the challenges and incentives for updating dossiers and to identify best practice that could help companies improve their data. The results are expected to be published at the end of July.
Meanwhile, a recent Chemical Watch survey has found that while some companies systematically update their dossiers, others have put the task on the back burner because of pressures on resources as the May 2018 registration deadline looms.
To date, Echa has revoked four registration numbers because the dossiers were incomplete or breached the ‘one substance, one registration’ (Osor) principle.
Data sharing
In a wide ranging question and answers session with the Envi committee, Mr Dancet said there are also issues around data sharing – with more disputes arising from the cost of letters of access. Lead registrants are asking "exorbitant" prices despite the Commission's implementing act, he said.
The Directors’ Contact Group – in which the Commission, Echa and industry associations exchange views – will have to come up with "much clearer guidance" on what is a reasonable price for a letter of access at specific tonnage levels, Mr Dancet said. This will ensure companies can remain in business rather than "threatening to withdraw" entirely from the market.
Nano concerns
In further comments, Mr Dancet said that companies are being "shortsighted in their determination to provide the minimum they can" when it comes to submitting data for the nanoforms of substances.
Getting reliable information is an "uphill struggle", he said. "The day will come, hopefully not far away, when the Commission has the courage to close the nano loophole and Echa will be on more solid ground to challenge companies on nanoforms."
Last month, Echa launched its EU observatory, a public website aimed at increasing transparency of information on nanomaterials on the EU market. This came after the Commission opted not to create an EU nano register, given delays in the introduction of new REACH information requirements for the substances.
https://chemicalwatch.com/57644/dancet-reach-change-could-ensure-dossier-updates-taken-seriously
-
Efsa Consults on BPA Hazard 'Reassessment'
Jul 13, 2017 | Chemical Watch
The European Food Safety Authority (Efsa) is consulting on the draft protocol for its reassessment of the hazards of bisphenol A.
The document describes the process the authority intends to use for this.
In 2015, the authority completed a risk assessment concluding that BPA 'posed no risk to consumers' at current levels of exposure. Soon afterwards, following a complaint by NGOs, it was forced to change the wording of the report summary to say there was "low health concern" from aggregated exposure rather than "no health exposure".
The 2015 assessment also slashed the tolerable daily intake (TDI) from 50 micrograms /kilogramme of body weight/day to a 'temporary' TDI of four micrograms; Efsa adding that it plans to reassess this, once the US National Toxicology Program completes its long-term toxicity study on rats in 2017-2018.
Meanwhile, more studies have emerged. A report last year from the Dutch National Institute for Public Health and the Environment (RIVM) said that recent findings on immune system effects meant stricter regulatory measures were needed.
With reference to the temporary TDI and discussions with the Dutch health ministry – which backed the RIVM report – the European Commission proposed a new Regulation for BPA which would significantly reduce the migration limit for plastic materials and articles, as well as varnishes and coatings found in canned foods.
But subsequently the Commission decided there was a need for more information on various toxicological aspects and issued a further mandate, asking Efsa to:establish a protocol, detailing the criteria for new study inclusion and for toxicological evidence appraisal for the re-evaluation of BPA, as soon as possible; andre-evaluate the risks to public health related to its presence in foodstuffs, taking into account the results of all relevant scientific data.
The results of the US NTP study, as well as all other new available information not examined by Efsa, should be considered, the Commission said.
Interested parties have until 3 September to submit comments on the draft protocol.
https://chemicalwatch.com/57666/efsa-consults-on-bpa-hazard-reassessment
-
Dutch REACH Bureau Releases Annual Report
Jul 13, 2017 | Chemical Watch
The Dutch advisory body dealing with the REACH Regulation has released its 2016 annual report.
The REACH Bureau of the country's National Institute for Public Health and the Environment (RIVM) is responsible for supporting and advising government ministries on the Regulation's implementation. Its work also includes preparing dossiers and checking those from other member states and industry.
The report, Taking care of chemicals, sets out the work it did over the year, including:
the submission of an Annex XV SVHC dossier;
preparation for the 2018 REACH deadline;
discussions on rubber granulate in artificial turf; and
the performance of two dust evaluations.
https://chemicalwatch.com/57667/dutch-reach-bureau-releases-annual-report
-
Jul 13, 2017 | Chemical Watch
Workshop on two additions to authorisation listThe European Commission has organised a workshop on two substances recently added to the REACH authorisation list because of their endocrine-disrupting properties.
The aim of the 22 August event in Brussels is to encourage an open exchange of views between stakeholders and Echa on the scientific evidence relating to:4-(1,1,3,3-tetramethylbutyl)phenol, ethoxylated [4-tert-octylphenol, ethoxylated; 4-tert-OPnEO]; and4-nonylphenol, branched and linear, ethoxylated [4-NPnEO].
The free workshop will look at the hazard, risk and impact assessment of the substances, and the possibility of deriving thresholds or dose-response relationships for them.
Agency updates list of hazardous substances with harmonised classification and labelling
Echa has updated its list of hazardous substances with harmonised classification and labelling. It now takes account of the European Commission's update in the 10th adaptation to technical progress (ATP).
The agency has also published other changes, effected by the 10th ATP, on its website. These include
:new notes; and
acute toxicity estimates (ATEs).Reputation study
Echa has agreed to be part of an international scientific study into the measurement of reputation of public sector organisations.
Developed by the universities of Leiden, Utrecht and Sheffield, the agency says it "would greatly appreciate" it if those receiving an email on the survey could take the time to fill it in.
https://chemicalwatch.com/57645/echa-round-up
-
Echa's Rac and Seac Agree on Sodium Dichromate Authorisation
Jul 13, 2017 | Chemical Watch
A company's application for authorisation to use sodium dichromate as a mordant in wool dyeing has been approved by Echa's Risk Assessment and Socio-economic Analysis Committees (Rac and Seac).
Mordants fix dyes onto a fabric, and their consolidated opinion found the benefits of using the substance in the process "outweigh the risks by several orders of magnitude".
The authorisation is "clearly justified from a societal perspective", it says.
Italian textile fibre dyeing company Gruppo Colle requested a ten-year review period. The opinion says: "Authorisation would allow for the additional time needed to establish technical feasibility of the alternative through proper testing and implementation".
https://chemicalwatch.com/57659/echas-rac-and-seac-agree-on-sodium-dichromate-authorisation
-
Enterprise Plans Ethylene Export Terminal for Houston
Jul 13, 2017 | Houston Chronicle
By Jordan Blum
Enterprise Products Partners said Wednesday it plans to built a terminal along the Houston Ship Channel to export the primary building of most plastics.
The proposed ethylene export terminal would be constructed at Houston-based Enterprise's Morgan's Point complex in a joint venture with the United Kingdom's Navigator Gas to take advantage of all the new ethylene production coming online this year in the Houston region.
The ethylene surge is the result of the ongoing shale boom producing much more natural gas liquids, including ethane, which is used to create ethylene.
Companies like Exxon Mobil, Dow Chemical and Chevron Phillips Chemical are all slated to complete major ethylene and polyethylene plastics expansions this year in the Houston area ranging from Baytown to Freeport.
Enterprise CEO Jim Teague said the idea for the ethylene export terminal is to give companies the option of exporting the base petrochemicals rather than the refined plastics.
"The proposed ethylene export terminal would provide U.S. petrochemical companies critical market diversification rather than relying solely on polyethylene export markets," Teague said in the announcement.
However, Enterprise's news is short on details. Teague isn't yet revealing estimated project costs, jobs created, or the size of the proposed terminal project. That's because Enterprise and Navigator signed a letter of intent to develop the terminal, but haven't formally authorized it yet.
The export terminal would tie into Enterprise's ongoing expansion of its salt dome storage facilities near the ship channel. Enterprise will have about 600 million pounds of storage capacity.
Enterprise has evolved into the country's biggest exporter of goods related to natural gas liquids. In the fall, Enterprise finished building the world's largest ethane export terminal along the Houston Ship Channel.
In April, Enterprise said it will build a 571-mile pipeline from the Permian Basin to the Houston area to transport NGLs.
Enterprise's Mont Belvieu NGL complex is the largest of its kind in the world. Enterprise can sell the ethane to petrochemical plants or export the ethane, propane and butane to foreign markets. Enterprise also is building new fractionation capacity to separate the natural gas liquids into ethane, propane and more.
http://www.chron.com/business/energy/article/Enterprise-plans-ethylene-export-terminal-for-11284482.php#photo-6941305
-
U.S. Natural Gas Fueling ‘Second Revolution’ in Rising LNG Supply, Says IEA
Jul 13, 2017 | Natural Gas Intelligence
By Carolyn Davis
A major transformation of the global natural gas market is underway, driven by new supplies coming from the United States to meet growing demand in developing economies and as industry surpasses the power sector as the largest source of gas demand growth, according to the International Energy Agency (IEA).
In its latest market analysis and five-year-forecast for natural gas, “Gas 2017,” the global energy watchdog said the role of natural gas in the global energy mix is evolving, creating far-reaching consequences on energy trade, air quality and carbon emissions, as well as the security of global energy supply.
The United States, the world's largest gas consumer and producer, is expected to account for 40% of the world's extra gas production to 2022 because of the remarkable growth in the domestic shale industry. The United States also is seen challenging Australia and Qatar as the world’s largest liquefied natural gas (LNG) exporter.
“By 2022, U.S. production will be 890 billion cubic meters (bcm), or more than a fifth of global gas output,” IEA researchers said. That translates to 2.92 Tcf.
"The U.S. shale revolution shows no sign of running out of steam and its effects are now amplified by a second revolution of rising LNG supplies," said IEA Executive Director Fatih Birol. "Also, the rising number of LNG consuming countries, from 15 in 2005 to 39 this year, shows that LNG attracts many new customers, especially in the emerging world. However, whether these countries remain long-term consumers or opportunistic buyers will depend on price competition."
IEA’s conclusions about the growth in U.S. gas and its impact on the world’s LNG trade mirror the annual global energy outlooks issued by ExxonMobil Corp., BP plc and Statoil SA.
U.S. LNG is seen as the catalyst for change in the international gas market, diversifying supply, challenging traditional business models and suppliers, and transforming global gas security, according to IEA.
“A new wave of liquefaction capacity is coming online at a time when the LNG market is already well supplied,” researchers noted. “This LNG glut is already affecting price formation and traditional business models -- and attracting new LNG-consuming countries like Pakistan, Thailand and Jordan.”
At the same time, ample LNG availability is creating new competition with pipeline gas supplies, which could benefit consumers.
“This intense competition is loosening pricing and contractual rigidities that have traditionally characterized long-distance gas trade,” researchers said. “The change will be accelerated by the expansion of U.S. exports, which are not tied to any particular destination and will play a major role in increasing the liquidity and flexibility of LNG trade.”
Europe could see growing competition between LNG imports and pipeline gas as domestic production declines, creating extra uncertainty on the sources of future supply.
The recent standoff involving Qatar, which supplies about a third of the world's LNG, and neighboring countries has also underscored potential risks to gas supply security.
"Even in a well-supplied market, recent events remind us that gas security remains a critical issue." Birol said.
Increased U.S. supply in part is to be fueled by the Marcellus Shale, considered one of the world’s largest fields, where output is expected to increase by 45% between 2016 and 2022, “even at current low price levels, as producers increase efficiency and produce more gas with fewer rigs.”
While U.S. domestic demand for gas is growing in part on higher consumption by the industrial sector, more than half of the production increase is seen being used for LNG. By 2022, the IEA estimated that the United States will be on course to challenge Australia and Qatar for global leadership among LNG exporters.
Global gas demand overall is expected to grow by 1.6% a year for the next five years, with consumption reaching almost 4,000 bcm by 2022, up from 3,630 bcm in 2016. China is seen accounting for 40% of this growth.
“Demand from the industrial sector becomes the main engine of gas consumption growth, replacing power generation, where gas is being squeezed by growing renewables and competition from coal,” researchers said.
"The environmental advantages of natural gas, particularly when replacing coal, also deserve more attention from policymakers,” Birol said.
http://www.naturalgasintel.com/articles/111075-us-natural-gas-fueling-second-revolution-in-rising-lng-supply-says-iea
-
Environmentalists Fault Pruitt's 'Closed Mind' to Attack RMP Delay
Jul 13, 2017 | Inside EPA
Environmentalists challenging EPA's nearly two-year delay of an Obama-era facility safety rule are citing Administrator Scott Pruitt's prior opposition to the rule while serving as Oklahoma's GOP attorney general (AG) as evidence that he has an “unalterably closed mind” on the rule and that the delay is unlawful.
Groups including the Sierra Club and Earthjustice are challenging Pruitt's June 14 decision to delay by 20 months the Obama EPA's Jan. 12 final rule updating the agency's Risk Management Plan (RMP) facility safety rule. The previous administration added requirements for independent audits, hazard analysis, and disclosure of facility data to first responders and the public, but Pruitt has said he needs months to review and potentially reconsider those changes.
The rule has drawn strong opposition from industry groups as well as GOP-state attorneys general, including Pruitt prior to his selection to lead EPA. As Oklahoma AG, Pruitt led a July 2016 letter to former EPA Administrator Gina McCarthy arguing proposed requirements for disclosure of facility data would worsen terror threats.
In a July 11 non-binding statement of issues filed with the U.S. Court of Appeals for the District of Columbia Circuit, environmentalist petitioners opposing the Trump EPA's delay of the rule argue that Pruitt's past opposition to the RMP revisions while serving as AG in Oklahoma -- which is now seeking to back Pruitt in the delay case -- was not adequately vetted in the delay process, and undermines the stay of the rule.
“EPA provides no reasoned and lawful explanation for how Administrator Pruitt’s prior representation of and advocacy for the particular position of one of the reconsideration petitioners in this matter (the State of Oklahoma) does not disqualify him from delaying, reconsidering, or taking other action in regard to the [RMP] Rule,” petitioners say.
“[R]ather than resulting from the legally required, fair and objective process of reasoned decisionmaking in the public interest, including a meaningful opportunity for public participation and the rational consideration of public comments, the Delay Rule was issued by an EPA Administrator with an 'unalterably closed mind,'” they add.
The D.C. Circuit is currently weighing competing arguments on whether to stay, or possibly vacate, Pruitt's June 14 final rule, postponing the Obama-era RMP rule's effective date from June 19 to Feb. 19, 2019 to allow time to revise the RMP update rule.
In recent court filings, EPA has claimed broad authority under Clean Air Act section 112(r) to set effective dates through notice-and-comment rulemaking. But advocates contend that an additional 20-month delay is “plainly illegal” under the air law and “contravenes both the letter and spirit” of a provision allowing for three-month administrative stay .
Industry groups, as well as certain GOP-led states, including Oklahoma, Louisiana, and Texas, have petitioned the Trump EPA to delay and revise the RMP rule, and have sought to intervene in the delay case backing EPA. The D.C. Circuit has granted the industry requests to intervene, and the states' request is pending.
Labor unions that have intervened in support of environmentalist petitioners also filed a July 11 non-binding statement of issues opposing Pruitt's delay rule and arguing that workers are harmed “first and worst” when employers and federal rules fail to prevent industrial disasters.
https://insideepa.com/daily-feed/environmentalists-fault-pruitts-closed-mind-attack-rmp-delay
-
Pruitt Sets Longer-Term Plans To Remake EPA, Secure Deregulatory Agenda
Jul 13, 2017 | Inside EPA
By Dawn Reeves
Even as EPA Administrator Scott Pruitt works to roll back a host of Obama-era rules as a relatively short-term priority, he is preparing a set of medium-term plans for the agency's budget and policy agenda that would remake the agency and institutionalize the Trump administration's deregulatory agenda.
Among other things, the agency is crafting previously scheduled guidance for program managers for fiscal years 2018-19 that sets a host of goals and priorities and also appears to be revising the Obama-era strategic plan for FY14-18 that makes climate change a priority.
The revised strategic plan is likely to follow the outlines of the Trump administration's budget request for EPA in FY18, which sought to slash EPA's budget by 31 percent -- even though lawmakers are not planning cuts that deep.
For example, House appropriators July 12 took an initial step toward providing EPA with $7.5 billion in FY18, a reduction of $528 million from FY17 but $1.9 billion above the Trump administration's request.
One former EPA official who worked for Democratic administrations and has helped develop strategic plans says that Pruitt can revise the plan before the five-year cycle is up if he chooses.
“There's no reason not to do that, and I think administrations typically want to get their arms around the strategic plan to make sure it is consistent with what they plan to do, so it is not particularly surprising that they would be focusing on revising the strategic plan,” the source says.
The former official adds that the possible effort to revise the plan early -- and without early input from career staff -- suggests that Pruitt may want to use it to “make a big splash and say, 'The new guys are here, we've changed the agency's mission and this is what we're going to be doing.'”
While Pruitt is working to re-set priorities for EPA through FY18, the agency is also working on plans for FY19 and beyond.
The White House late last week released initial budget guidance for EPA and other agencies for FY19 that requires leaders to submit strategic planning documents for FY18-22 by Sept. 11, when their draft budget requests are due.
The July 7 guidance from Mick Mulvaney, director of the Office of Management & Budget, reiterated that EPA could see a slight increase over what the administration sought for FY18, suggesting the agency's request would be no higher than $6.02 billion, a slight bump relative to the proposed $5.6 billion the administration sought for EPA in FY18, though Congress is poised to provide the agency with more than that.
Nevertheless, Mulvaney touts the FY19 request as an opportunity to present a “comprehensive plan” for “reforming” the government and cutting its workforce, telegraphing continued steep cuts despite signs of Capitol Hill blowback.
Mulvaney said he and other top officials will give “special consideration to bold reform reorganization proposals that have the potential to dramatically improve effectiveness and efficiency of government operations.”
“Agencies should develop agency priority goals that are near-term, implementation and outcome focused, measurable, and reflect the performance priorities of agency leadership,” Mulvaney said.
Program Managers Guidance
One of the first areas where EPA could begin to demonstrate how it plans to implement and prioritize its FY18 budget is its national program managers guidance. The agency late last month released draft national program managers (NPM) guidance for FY18-19 that detail proposed performance measures and other goals and priorities that agency managers are planning to meet in the coming fiscal years.
Among the goals, the agency indicated it plans to overhaul rules governing its new source review permit program, signaling that the Trump administration is backing widespread calls from industry and labor groups to reform the controversial permit program even before formal advice from the Commerce Department that is expected to seek such reforms.
While the Obama administration had shifted the NPM process to a two-year cycle for the 2016-17 period, David Bloom, EPA's acting chief financial officer, said in a June 2 memo that officials “explored various options for developing this cycle of the NPM guidances in light of the transition to the new administration and the adjusted budget release date."
But after consulting with a state-EPA work group, decided to “proceed with developing two-year NPM
guidances for FY 2018-2019 to maintain alignment with multi-year grant work planning."
EPA also looks to be revising the current five-year strategic plan developed by the Obama administration. Although the current plan runs through the end of FY18, the agency may be working to revise it sooner, given some of the tight deadlines career staff are facing, including a looming July 21 internal deadline, according to one informed source.
The current FY14-FY18 plan is heavy on climate change, so sources outside the agency expect that Pruitt would want to revise it as part of his long-term strategy to steer the agency away from the Obama agenda.
The current plan lists “addressing climate change and improving air quality” as the first of five goals. It also includes protecting America's waters; cleaning up communities and advancing sustainable development; ensuring the safety of chemicals and preventing pollution; and protecting human health and the environment by enforcing laws and assuring compliance.
Bypassing Career Staff
The informed source says a draft version of the revised strategic plan was developed by Pruitt and his inner circle, and then sent to the White House before any agency staff saw it.
EPA's press office did not respond to questions from Inside EPA about whether the strategic plan is being updated and timing of any update.
The former Democratic official notes that the description of how this update is being executed -- first by Pruitt's inner circle and then to the White House before staff sees it -- is unusual and potentially worrisome.
“Normally, there's sort of a bottom-up process for doing the strategic plan because it really contains a lot of nitty-gritty information on performance metrics and program outputs and quantitative measures for determining whether programs are succeeding or not. It is a very detailed, nitty-gritty document,” the source says. “The overall themes are important but a lot of the detail is, I think, not terribly interesting to most people . . . But Pruitt certainly has his ideas about what the agency ought to be doing and the existing five-year plan is not consistent with that.”
Yet, the “notion of doing it without a lot of input from the career staff . . . is sort of scary . . . because the plan is very granular and sets specific programmatic goals and performance metrics, and it's tied into the whole system . . . of bean counting and performance tracking within the agency, and is also tied into the budget process.
“So I don't see how you could pull a credible plan together without a lot of input” from career-level staff, the source says.
The Democratic former official cautions that the top-down approach means it is not a real strategic plan but instead would be more of a “thematic statement” and if they want it to tie the plan into the established system of budgets and performance reviews within EPA, then “they need to be pretty granular. I don't know what they're trying to accomplish here but I can certainly understand why Pruitt would not like the current plan. Among other things, it formalizes the role of climate change as one of the biggest and most important parts of the EPA's mission.”
Finally, the source notes that it is difficult to write a good strategic plan when the budgetary parameters are unknown, as is the case now since the Trump proposed budget is vastly lower than what Congress is expected to approve.
A former Obama EPA official agrees, and notes that when Gina McCarthy became administrator in 2013, she developed a strategic vision that included seven themes to guide the agency's work that was developed by top political appointees. But McCarthy and her top advisers did not see the FY14-18 strategic plan update until it was nearly finalized, and that effort was fully initiated and executed by staff.
This source agrees it would not be surprising if Pruitt is seeking to revise the strategic plan to seek to impose his long-term vision on the agency but questions whether he has enough staff in place to be able to explain the substance that would be needed in such a document.
Another former EPA official who worked for a Republican administration says that strategic plans do not usually receive a lot of attention and instead are “usually something that goes on a shelf unless someone needs it to make a political point” during a rule review.
The plans are generally not used for day-to-day business but instead for “waging more philosophical battles with the agency” as to whether its actions align with the plan, that source says. The plans are important but less so than budgets in terms of resources and priorities.
https://insideepa.com/daily-news/pruitt-sets-longer-term-plans-remake-epa-secure-deregulatory-agenda
-
Better to Target Zero Emissions Than 100% Renewable Energy
Jul 13, 2017 | The Economist
NOT that long ago, the world wondered whether clean energy could survive without lavish government support. Now the question is how far it can spread. The number of electric vehicles, which breached 1m in 2015, last year reached 2m; countries like France and firms like Volvo are looking ahead to the demise of the internal combustion engine. In electricity generation, too, momentum is with the greens. In June the Chinese province of Qinghai ran for seven consecutive days on renewable energy alone; in the first half of this year wind, solar and hydro generated a record 35% of Germany’s power.
Greater success is breeding greater ambition. California is proposing to reach 60% renewable energy by 2030; 176 countries have clean-energy goals. Hawaii, America’s most oil-dependent state, has pledged to be 100% renewable by the middle of the century. So have 48 poor countries vulnerable to climate change. This week the number of multinationals making a commitment to running their operations on 100% renewable energy rose to 100.
Even if such targets are never met, they galvanise effort. They also provide reassurance about long-term climate policy, despite reversals such as America’s withdrawal from the Paris agreement. The resulting economies of scale help bring down the costs of wind and solar projects.
But not every target is helpful. To see why, consider that goal of 100% renewable energy. It makes solving climate change seem deceptively easy. In fact, though wind and solar can generate all a country’s electricity on some days, renewables still account for less than 8% of the world’s total power output. Moreover, cleaning up electricity is only part of the battle. Even though gas-fired heating and cooking can be at least as big a source of greenhouse-gas emissions, renewable heating gets minuscule attention. Transport policy is erratic, too. Carmakers may hit their goal of annual sales of 10m electric vehicles in a decade, but battery-powered road haulage, shipping and aviation are dreams. A much-quoted claim that America could rely on wind, solar and hydro alone for its electricity has recently been witheringly criticised by a group of respected academics (see article).
Most important, a 100% renewables target confuses means with ends. The priority for the planet is to stop net emissions of greenhouse gases, especially carbon dioxide. Putting too much emphasis on wind, solar and other renewables may block off better carbon-reduction paths. After decades of investment, it is wrong to leave nuclear power off the table. Carbon emissions in Germany actually rose because it chose to phase out nuclear power and so burned more coal. New technologies, such as “direct air capture” systems designed to separate carbon dioxide from the air, may in time prove vital.
Likewise, greater energy efficiency could reduce emissions by even more than deploying renewables would. Indians last year consumed twice as much energy from newly installed air conditioners as they produced from new solar farms. More accurate metering of energy consumption could encourage companies and households to rein in power demand.
Putting the wind up
It would be better, as the Paris agreement urges, for countries to focus on reductions in emissions rather than to set goals for renewable energy. Global emissions have stabilised in the past three years, which is encouraging. But to stand a chance of mitigating global warming, they must start falling sharply and keep doing so for decades. The world will move in that direction with the help of wind and solar. It will not get there without big advances on every other front as well.
https://www.economist.com/news/leaders/21725001-goal-after-all-curb-global-warming-not-favour-particular-technologies-better
-
Enforcement Pick Shrugs off Conflict-Of-Interest Concerns
Jul 13, 2017 | E&E Greenwire
By Kevin Bogardus, Corbin Hiar and Arianna Skibell
President Trump's pick to lead U.S. EPA's enforcement office is promising to avoid politics and enforce the law if confirmed to the job.
In written responses to senators' questions obtained by E&E News, Susan Bodine, Trump's nominee for assistant administrator of enforcement and compliance assurance, answered dozens of queries on budget proposals, climate change and conflicts of interest.
Yesterday, Bodine, who has been chief counsel on the Senate Environment and Public Works Committee since 2015, took a step closer to full Senate confirmation. Her nomination was approved in a party-line vote of 11-10 on the EPW panel (Greenwire, July 12).
In written questions, committee Democrats pressed Bodine on whether she would steer clear of political influence as head of EPA enforcement. Ranking member Tom Carper (D-Del.) asked if she agreed to shield the office from politics, given Administrator Scott Pruitt's ties to fossil fuel companies like Devon Energy Corp., as well as Trump properties having been subject to EPA enforcement actions.
"Yes," Bodine responded.
She also said in another response that she has "a deep respect" for EPA career staff, given her prior service as head of EPA's solid waste office during the George W. Bush administration. Bodine said she would employ "the same management style" and seek input from and listen to career staff.
Bodine was also quizzed about Trump's proposed budget cuts for the EPA enforcement office — reducing its funds by almost 24 percent, down to $419 million in fiscal 2018 — resulting in 757 full-time employees being fired from the Office of Enforcement and Compliance Assurance (OECA), according to Carper.
She responded that the president's budget includes $12 million for voluntary early retirement and that 20 percent of the agency's workforce is at or over retirement age. In addition, Bodine said she understands that EPA expects to see "significant reductions" in the number of employees from buyouts, retirements and the continuing hiring freeze.
There has been speculation that under Pruitt, EPA will shutter its enforcement office and return its various duties to the other program offices in the agency (E&E Daily, Feb. 9). Bodine said she had not heard of those plans.
"I am not aware of any plans to close OECA and return enforcement duties to the program offices," Bodine said.
In addition, she said she wasn't aware of plans to close any of the agency's regional offices.
Bodine also took the chance in her written responses to tout her work on EPW. She said she helped draft amendments to the Senate energy bill in response to the drinking water crisis in Flint, Mich., as well as made sure to include provisions in the Senate's Water Resources Development Act to reduce lead contamination.
Further, Bodine dismissed concerns that budget cuts sought by the Trump administration would hamstring efforts to clean up the country's most polluted sites.
"If I am confirmed, OECA will continue to pursue and enter into settlements with parties responsible for cleanup action," she said. Bodine added that the cleanup program's trust fund has more than $3.6 billion on the books "as a result of successful OECA enforcement actions."
The White House proposed funding Superfund cleanups at about $516 million, down from nearly $1.1 billion in fiscal 2017. But the House Interior and Environment Appropriations bill released earlier this week would actually increase Superfund spending by $27.6 million from the fiscal 2017 omnibus deal (E&E News PM, July 11).
Bodine also disputed suggestions the legal and lobbying work she and OECA Deputy Assistant Administrator Patrick Traylor have done for industry in the past could pose a conflict of interest.
"If confirmed, I would have no problem taking appropriate enforcement action against any company," she said.
Carper noted that before coming to EPW, Bodine was a lobbyist with Barnes & Thornburg LLP, where she represented Saint-Gobain Containers Inc. In 2010, Saint-Gobain agreed to pay a $2.25 million civil penalty to settle a case that alleged Clean Air Act violations by 15 company facilities for glass bottle manufacturing. In addition, one of the firm's plastics division sites is now being considered for a Superfund designation.
But Bodine said "my representation of Saint-Gobain Containers related to the encouragement of glass recycling, not regulatory matters." Further, she said, "the Saint Gobain Performance Plastics company referred to in your question is a separate entity that I have never represented."
The nominee also defended her work for the American Forest and Paper Association, a trade group whose member companies have hundreds of EPA enforcement actions issued against them.
"My representation of AFPA involved working with EPA to ensure that the forest products industry can continue to use secondary material like biomass as a fuel in their boilers," she said.
"In states with a large forest products industry, like Maine, New Hampshire, Vermont, Washington, and Oregon, biomass from forest products residuals is an important fuel source. For example, it is used by the city of Burlington, Vt., as well as by my son's alma mater, Middlebury College."
Asked about how Traylor, a former partner at Hogan Lovells LLP, could regulate past clients such as Dominion Energy Inc., Koch Industries Inc. and TransCanada Corp., Bodine said, "If confirmed, I will make sure that all OECA staff recuse themselves from cases in which they have a conflict of interest and abide by their obligations under federal ethics laws and regulations and, where applicable," President Trump's ethics order.Climate change
Sen. Bernie Sanders (I-Vt.) pressed Bodine on climate change, asking whether she believes, as Trump has said, that it is a "hoax."
"The climate has always been changing," she said. She later answered Sen. Sheldon Whitehouse (D-R.I.) that "yes," she believes climate change is real.
While Bodine did not explicitly recognize a causal relationship between fossil fuels and global warming, she said she would work to ensure that entities are in compliance with environmental regulations, like greenhouse gas reporting rules.
"If confirmed, I will work to ensure compliance with all applicable regulations, including climate-related regulations," she said.
Bodine said she supports the president's decision to leave the Paris climate agreement.
"Given the uncertainty over the accuracy of the climate models, particularly over sensitivity of temperature to CO2, I do not believe it is appropriate to mandate a complete overhaul of the U.S. energy portfolio and constrain our gross domestic product," she said.
Bodine said some have estimated that such actions "could cost the U.S. economy nearly $3 trillion over the next several decades — while leaving U.S. manufacturing at a competitive disadvantage with other countries that are not similarly constrained."
Bodine was also asked about whether she would commit to EPA's role in ensuring the United States plays "a leadership role" in protecting the global environment. She responded, "If confirmed, I will enforce U.S. law."
Sanders also probed Bodine on how she would handle EPA's proposed budget cuts and a move to state sovereignty over environmental protection.
Bodine said she agreed with a paper put out by the Environmental Council of the States on so-called cooperative federalism. In the report, ECOS outlines a vision for EPA and states to work collectively to protect the environment and public health, rather than EPA sending down mandates from on high (E&E News PM, June 12).
https://www.eenews.net/greenwire/2017/07/13/stories/1060057347
-
Brown, Bloomberg Announce Plan to Track Climate Progress
Jul 13, 2017 | AP (in the Washington Post)
By Kathleen Ronayne
California Gov. Jerry Brown announced yet another plan Wednesday to keep the United States on track to reduce greenhouse gas emissions under the international Paris climate agreement.
This time, he’s teaming up with former New York City Mayor Michael Bloomberg to launch “America’s Pledge,” an initiative to compile all of the climate change-fighting commitments of states, cities, businesses and universities in one place where they can be easily tracked and shared.
It’s the latest effort by cities and states — and Brown in particular — to fight back against President Donald Trump’s decision to withdraw the United States from the international pact. The two will share the data at this year’s United Nations Framework Convention on Climate Change, held in Germany.
Brown, a Democrat, and Bloomberg, a Republican-turned Independent, have both played an outsized role on the world stage when it comes to fighting global warming.
Brown is serving as a special adviser to states and regions at the Germany gathering, while Bloomberg was appointed a special envoy for cities and climate change in 2014 by U.N. Secretary-General Ban Ki-moon.
“In the U.S., emission levels are determined far more by cities, states, and businesses than they are by our federal government - and each of these groups is taking action because it’s in their own best interest,” Bloomberg said in a statement.
Under former President Barack Obama, the country committed to reducing greenhouse gas emissions 26 to 28 percent below 2005 levels by 2025.
Governors, mayors and other leaders have pledged to uphold that target even without the White House’s commitment. Brown is at the helm of several multi-state pacts to lower carbon emissions.
The new pledge will record and track those individual commitments and measure their cumulative effect on reducing emissions. The Rocky Mountain Institute and the World Resources Institute will lead the analysis for the project, paid for by grants from Bloomberg Philanthropies. Antha Williams, director of the foundation’s environment program, could not provide an estimated cost of the America’s Pledge research. Bloomberg’s foundation has spent more than $100 million on climate initiatives.
The project will also present a “game plan” for non-federal actors to take more aggressive action on climate.
https://www.washingtonpost.com/national/energy-environment/brown-bloomberg-announce-plan-to-track-climate-progress/2017/07/12/a8ce953c-6739-11e7-94ab-5b1f0ff459df_story.html?utm_term=.92619ee22d85
-
Jerry Brown Tries to Shore Up Cap-and-Trade Support in California
Jul 13, 2017 | The Wall Street Journal
By Alejandro Lazo
California Gov. Jerry Brown may have seized the role as a global-warming crusader abroad, but back home he is struggling to unite Democrats and even environmentalists around a key piece of his climate change agenda.
Mr. Brown, a Democrat, wants the state legislature to extend California’s cap-and-trade program, which requires businesses here to pay for their carbon dioxide emissions while also reducing those emissions over time.
The environmental push on Mr. Brown’s home turf has emerged as a key test for the governor after he has pledged to defy Republican President Donald Trump on climate change.
The program—a key aspect the state hopes to use to reduce CO2 emissions to 40% below 1990 levels by 2030—has faced questions as business groups have attacked it as an unconstitutional tax on industry. Also contributing to market unease has been uncertainty about whether the program could continue beyond 2020, a benchmark set by the 2006 legislation that led to the program’s creation.
The California Chamber of Commerce and the Pacific Legal Foundation sued the state, saying the program was an illegal tax on businesses. A state appeals court in April rejected their arguments and the California Supreme Court last month left that decision in place.
The state’s Chamber of Commerce now supports a cap-and-trade program as an alternative to more direct regulations. The chamber said it is “reviewing” the governor’s proposal.
Mr. Brown wants to insulate the program from future legal challenges by achieving a two-thirds vote of approval in the legislature—the threshold for all new taxes in the state—as well as extend the program to 2030.
But the governor is struggling to get Democrats on board, with some more business-friendly members, concerned about effects on jobs.
Environmentalists also aren’t unanimous in their support.
Amy Vanderwarker, co-director of the California Environmental Justice Alliance, which advocates for environmental policies aimed at low-income and minority communities, said she opposed the plan.
“We feel like the proposal put forward is actually a step backward for California climate policy, with way too many loopholes for industry that actually make it harder to achieve our 2030 targets,” she said.
With revenue from the cap-and-trade program, the governor is also meant to fund one of his pet projects: a planned high-speed rail train from Los Angeles to San Francisco.
Mr. Brown managed to reach a deal with his party’s legislative leaders, but some rank-and-file Democratic lawmakers remain reticent. He may need to woo Republican support for the plan’s passage by a two-thirds margin.
The plan is eligible for a vote as Thursday, though legislative leaders said they planned a vote early next week.
After Mr. Trump said the U.S. would withdraw from the historic Paris agreement—requiring developed and developing nations to limit greenhouse-gas emissions—Mr. Brown said he’d join with other like-minded jurisdictions in fulfilling the U.S. obligations without the help of the federal government.
He was named a special adviser for states and regions ahead of this year’s United Nations Climate Change Conference. Mr. Brown on Wednesday announced a joint climate effort with New York Mayor Michael Bloomberg to track climate commitments around the country; he plans to host an international climate conference in San Francisco next year.
Proponents of California’s cap and trade say the program is a model one that other countries, including China, have studied, and that it creates a marketplace in which CO2 emissions can be priced, a goal of some economists for addressing climate change.
Business groups and some Republicans have called cap and trade a burdensome regulatory scheme that drives employers to competitor states such as Texas, Nevada or Arizona.
John Cox, a 2018 Republican candidate for governor, said Mr. Brown’s cap and trade plan is a tax.
“Our goal is not to cooperate with the Democrat leadership’s war on the middle class, but to counter because our ideas about growth, jobs and pocket book issues are better than theirs,” Mr. Cox said.
State Assemblyman Rocky Chavez, a Republican, said he met with the governor Tuesday to discuss Republican concerns, and said that while the proposal had some appealing elements, such as a tax break for manufacturers and a fee waiver for rural residents, he wants to make sure that the proceeds from cap and trade auctions will help fund some Republican priorities.
Money from the quarterly auctions have gone toward the state’s greenhouse gas reduction fund, which the state uses to fund various projects including high-speed rail, so far totaling $4.9 billion.
“If we can design a cap and trade system that could link or align itself with other states, or other countries, to define the price of carbon, then I think that is something that could not just help California, but help the world,” Mr. Chavez said.
Some analysts said the legal uncertainty the lawsuit created over the program, and its potential 2020 expiration, roiled quarterly auctions for carbon permits in 2016, causing many businesses to leave these allowances on the table, and causing the price of those permits to plunge on the secondary market.
In May 2016, for instance, the state offered about 67.7 million carbon allowances for sale and businesses only purchased about 7.3 million.
This year, with the state’s success in court, auctions have rebounded and the price for the allowances on the secondary market has risen sharply in recent weeks.
In May, at the most recent auction, the state sold all of the roughly 75.3 million credits it put out for bid.
“In the world of large, industrial corporations that need forward planning horizons, certainty is key,” said Lenny Hochschild, managing director at Evolution Markets, an institutional brokerage service for global energy and environmental markets.
https://www.wsj.com/articles/jerry-brown-tries-to-shore-up-cap-and-trade-support-in-california-1499958763
Industry and Association News - There are no clips to report at this time.
LCSA News
Chemical Management News
Energy News
Chemical Security News
Transportation News - There are no clips to report at this time.
Environment News
Add recipients
Suggested