Preview Newsletter
ACC PM 02/07/18
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Lawmakers Rally to Keep Pruitt from Transparently Restricting Science
Jul 2, 2018 | The Hill - Opinion
By Amanda Rodewald
Changes to the scientific review process of the U.S. Environmental Protection Agency (EPA) proposed by Administrator Scott Pruitt last year are back in the spotlight. -
EPA Extends Comment Deadline for Cost-Benefit Plan
Jul 2, 2018 | E&E Greenwire
By Cecelia Smith-Schoenwalder
EPA has extended the comment period for a controversial cost-benefit proposal by 30 days following requests from public interest groups. -
(ACC Mentioned) Socma: TSCA New Chemicals Problems Lie with Process, Not Filers
Jul 2, 2018 | Chemical Watch
By Kelly Franklin
Although industry groups have welcomed the US EPA’s updated guidance for submitting new chemicals for agency review under TSCA, they are questioning whether it will address the ongoing issues with the programme. -
INSIGHT: The EPA Scandal You May Have Missed: Reflections on Two Years of the Lautenberg Act
Jul 2, 2018 | BNA Daily Environment Report
By Sheldon Whitehouse
Most Americans probably assume the government has certified that the chemicals in the products we make and use are safe. -
EPA Extends Electronic Reporting Deadline for Utility MACT
Jul 2, 2018 | Inside EPA
EPA is extending by two years -- from July this year to July 1, 2020 -- a deadline for power plants to report emissions data required under the agency's utility air toxics rule using a new electronic submissions system, leaving in place the existing system based on submission of portable document format (PDF) files because the new system is not ready. -
Parsing FERC's News Dump
Jul 2, 2018 | Politico
By Kelsey Tamborrino
Regulators at FERC have known that one day they would have to decide how they would move to protect the power markets they oversee from the state-enacted energy programs, particularly those that support nuclear units, that are tilting the playing field. -
Utica Shale Further Consolidated With Ascent’s $1B-Plus Acquisition
Jul 2, 2018 | Natural Gas Intelligence
By Jamison Cocklin
Ascent Resources LLC announced on Friday that it would acquire 113,400 net Utica Shale acres for $1.5 billion in a package of deals with multiple sellers, ballooning the company’s position in the play to more than 300,000 net acres and becoming one of the country’s largest private exploration and production (E&P) companies in the process. -
(ACC Mentioned) Safety Equipment Group Teams With OSHA
Jul 2, 2018 | Associations Now
By Ernie Smith
The International Safety Equipment Association is kicking off a two-year alliance with the Occupational Safety and Health Administration to underline the importance of personal protective equipment on the job. -
House Democrats Warn FRA Against PTC Exemptions
Jul 2, 2018 | Progressive Railroading
House Democrats last week warned the Federal Railroad Administration (FRA) against issuing exemptions that allow railroads to avoid implementing positive train control(PTC). -
NJ Transit Could Qualify for PTC Extension Under New Testing Plan
Jul 2, 2018 | Progressive Railroading
The Federal Railroad Administration (FRA) has approved New Jersey Transit's positive train control (PTC) testing plan that would qualify the agency for a two-year extension to implement the technology. -
Judge Gives EPA Deadline for Studies Backing Pruitt's Claims
Jul 2, 2018 | E&E Greenwire
By Amanda Reilly
A federal judge is giving EPA more time — but not as much as the agency wanted — to search for and produce scientific studies backing Administrator Scott Pruitt's position on climate change. -
Conservatives Face Off on Obama-Era Agreement
Jul 2, 2018 | E&E Greenwire
By Hannah Northey
Almost two dozen conservative and free-market groups are pushing back against a growing group of Republican lawmakers supporting an Obama-era climate agreement. -
Seattle Bans Plastic Straws, Utensils at Businesses
Jul 2, 2018 | AP (In The New York Times)
Looking for a straw to sip your soda? It's no longer allowed in Seattle bars and restaurants.
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Lawmakers Rally to Keep Pruitt from Transparently Restricting Science
Jul 2, 2018 | The Hill - Opinion
By Amanda Rodewald
Changes to the scientific review process of the U.S. Environmental Protection Agency (EPA) proposed by Administrator Scott Pruitt last year are back in the spotlight. In particular, there is growing concern about the “transparency rule,” — what many have dubbed the “secret science” rule.
The transparency rule specifies the types of scientific evidence that may be used in rulemaking and requires that all scientific and technical information (e.g., data, protocols, computer codes, and models) used by the agency be publicly available online in a form that allows independent analysis and reproduction of results.
The transparency rule sounds reasonable, if not desirable, at first pass. However, the required level of disclosure and accessibility often are not achievable, especially within timeframes necessary for decision-making and regulatory activities. As explained in a joint statement from editors of five prestigious scientific journals, not all data can be publicly available. In these cases, reviewers have confidential access to key data and can evaluate the rigor of the study design, analysis, and interpretation of findings — a long-standing scientific norm.
Most worrisome, the transparency rule will prevent use of many public health or large-scale environmental studies, especially in light of laws and responsible research practices protecting the confidentiality of human subjects and private property. In this way, the rule will disproportionately affect public health studies relative to those focused on costs or economic impacts that are less likely to involve human subjects.
For example, confidentiality laws would allow the EPA to disregard the most critical research underlying regulations, such as the 1993 landmark “Six Cities study” that established an association between air pollution and mortality in six cities. Specifically, the Six Cities study followed the health of 8,100 participants over 20 years and found that life expectancy dropped by two-to-three years when individuals in cities were exposed to fine particulate matter (<2.5 microns diameter). A study of nearly 550,000 participants further substantiated that result.
These studies, both bound by confidentiality agreements, provided pivotal scientific evidence to support new air quality standards that save hundreds of thousands of lives in the U.S. each year.
Fortunately, there is growing awareness of and concern about the proposed transparency rule. At their recent meeting, the Science Advisory Board (SAB) unanimously voted to review the secret science policy as well as the research underlying regulations that limit greenhouse gas emissions and are slated for repeal (e.g., Clean Power Plan, vehicle emissions standards). More than 20 additional speakers representing diverse industries also spoke at the meeting and advocated for full scientific reviews.
A bipartisan group of more than 100 members of Congress recently urged Pruitt to withdraw the transparency rule. Their letter explains that the rule would limit the scientific research available during the rulemaking process and, in that way, undermine the Agency’s scientific integrity with an “opaque process allowing EPA to selectively suppress scientific evidence without accountability and in the process undermine bedrock environmental laws.”
They also note how the rule is sharply at odds with the transparency it claims to promote by authorizing the EPA administrator to grant exceptions without sharing the rationale or providing opportunity for comment or appeal.
Lawmakers further explained in their letter that the proposed rule would be costly (likely over $250 million annually) and burdensome for EPA and researchers, based on an analysis of expected costs of the similar but defeated Secret Science Reform Act.
Transparency establishes trust and legitimacy and should underlie public decision-making processes. As former EPA Administrator Gina McCarthyexplained to Congress in her nomination hearing, “Transparency is all about letting in and embracing new ideas, new technologies and new approaches. No individual entity or agency, no matter how smart, how old or how experienced, can afford to stop learning.” The proposed transparency rule does just the opposite by restricting the ideas and science available to the EPA.
The development of effective environmental regulations requires strong science. The public now has the opportunity to communicate this point to the EPA during their comment period for the proposed rule that has been extended until August 16, 2018 and/or a public hearing scheduled for July 17, 2018 in Washington.
Amanda Rodewald is the Garvin professor and director of conservation science at the Cornell Lab of Ornithology, faculty in the Department of Natural Resources at Cornell University and a faculty fellow at Cornell University's Atkinson Center for a Sustainable Future. Views expressed in her column are hers alone and do not represent those of these institutions.
http://thehill.com/opinion/energy-environment/394786-lawmakers-rally-to-keep-pruitt-from-transparently-restricting
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EPA Extends Comment Deadline for Cost-Benefit Plan
Jul 2, 2018 | E&E Greenwire
By Cecelia Smith-Schoenwalder
EPA has extended the comment period for a controversial cost-benefit proposal by 30 days following requests from public interest groups.
The comment period for "Increasing Consistency and Transparency in Considering Costs and Benefits in the Rulemaking Process" was originally set to end July 13. In an announcementscheduled to be published in the Federal Register tomorrow, the agency will extend the deadline to Aug. 13.
The proposal could fundamentally alter how EPA assesses the need for new or stiffer environmental and public health protections.
The upcoming notice says EPA made the change "in response to public requests for an extension of the comment period."
The Union of Concerned Scientists asked EPA in a letter last month to extend the comment period by 60 additional days (E&E News PM, June 14).
UCS said EPA's next steps "could have significant consequences for the ability of EPA to adequately protect the public from the impacts of air pollution, unsafe chemicals, and other public health and environmental hazards."
Michael Halpern, the deputy director of UCS's Center for Science and Democracy, said the extension "falls short of what was requested."
He pointed to a separate agency proposal to restrict science in policymaking as complicating the subject.
"Additional time is still needed for experts to evaluate how these separate proposals would impact each other," Halpern said in an email.
The letter also asked for a public hearing on the plan, which EPA did not acknowledge in the announcement.
https://www.eenews.net/greenwire/2018/07/02/stories/1060087501
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(ACC Mentioned) Socma: TSCA New Chemicals Problems Lie with Process, Not Filers
Jul 2, 2018 | Chemical Watch
By Kelly Franklin
Although industry groups have welcomed the US EPA’s updated guidance for submitting new chemicals for agency review under TSCA, they are questioning whether it will address the ongoing issues with the programme.
The guidance – Points to consider when preparing TSCA new chemical notifications – provides non-binding information to assist submitters of pre-manufacture notices (PMNs), significant new use notices (Snuns) or exemption notices under section 5 of TSCA.
It was developed amid ongoing frustration at the slow pace of reviews and "overly conservative" risk determinations.
Commenting on the update, Robert Helminiak, vice president of legal and government relations at Socma, told Chemical Watch that the specialty chemicals trade group is pleased that the EPA is "taking seriously" problems in the new chemicals approval process.
But he said that while the document may be helpful for those new to the process, it "will not help resolve the backlog or help EPA complete new reviews on time."
The problem in the new chemicals programme does not derive from the filers or filings, Mr Helminiak said. Instead, it comes from the "unnecessary increased scrutiny in the ‘conditions of use’ process from EPA."
The 2016 amendments to TSCA have required the agency to consider a substance’s intended, known or reasonably foreseen uses, a change which has contributed to the slower pace of reviews and an increase in regulation of new substances.
"EPA must resolve the internal issue of assessing [these] and internally streamline the process to complete reviews," said Mr Helminiak.
The American Chemistry Council’s Mike Walls agreed that it is "essential that the programme reduce delays, complete reviews on the 90-day schedule required by law, and operate with greater predictability and transparency."
"ACC urges EPA to continue its work to adopt efficiency and process improvements in the new chemicals programme," the vice president of regulatory and technical affairs told Chemical Watch.
But he did note that the new document should improve the PMN process by "giving submitters clearer up-front guidance on how to improve the quality of, and documentation for, their new chemicals submissions."‘Hand-holding’
The Environmental Defense Fund’s lead senior scientist, Richard Denison, told Chemical Watch that the premise of the EPA providing companies with guidance on what to include with new substance submissions is one the NGO supports.
But he did raise concerns with the agency’s reliance on pre-consultation discussions, when it works with companies to revise PMNs prior to their beginning the formal review process.
Dr Denison said he agrees with this approach in principle, but objects that the agency did not include a specific budget for these activities in its fees rule.
"If they are, in fact, going to engage companies early and often ... and their whole strategy is to go back and forth with a company until they reach a 'not likely [to present an unreasonable risk]' finding, and correspondingly not issue an order, then that will take a huge amount of agency resources," he said.
And he further questioned whether the agency should be engaging in this level of 'hand-holding'.
TSCA is already clear on what must be submitted to support a PMN, said Dr Denison, and the recent guidance makes that even clearer. If a company fails to submit the information that the EPA needs, the agency should "just reject the PMN".
"It does at some point become a question of whether EPA's role here is to protect human health and the environment or to somehow ... create an expeditious pathway to the market" for new chemicals, he said.
"Almost never mentioned ... is ensuring that chemicals are reasonably expected to be safe," Dr Denison added.
https://chemicalwatch.com/68153/socma-tsca-new-chemicals-problems-lie-with-process-not-filers?q=%22american+chemistry+council%22
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INSIGHT: The EPA Scandal You May Have Missed: Reflections on Two Years of the Lautenberg Act
Jul 2, 2018 | BNA Daily Environment Report
By Sheldon Whitehouse
https://www.bna.com/insight-epa-scandal-n73014477024/
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EPA Extends Electronic Reporting Deadline for Utility MACT
Jul 2, 2018 | Inside EPA
EPA is extending by two years -- from July this year to July 1, 2020 -- a deadline for power plants to report emissions data required under the agency's utility air toxics rule using a new electronic submissions system, leaving in place the existing system based on submission of portable document format (PDF) files because the new system is not ready.
EPA has for some time been attempting to shift reporting under the utility maximum achievable control technology (MACT) rule to its Compliance and Emissions Data Reporting Interface (CEDRI), and is under an existing regulatory deadline of June 30 to make the switch.
However, EPA in a July 2 Federal Register notice says the CEDRI system is “unavailable” for compliance reporting with the rule, also known as the mercury and air toxics standards (MATS). Therefore, EPA is extending the deadline until July 1, 2020, and will continue accepting PDF reports until then.
Citing “good cause” for the move, EPA is issuing the extension as an immediately effective final rule and foregoing the normal Administrative Procedure Act notice-and-comment period, along with a typical 30-day period before the rule becomes applicable.
EPA air policy chief William Wehrum is a skeptic of the Obama-era MATS rule, and has discussed the flaws he believes are inherent in a prerequisite finding that it is “appropriate and necessary” to regulate the sector. The Obama EPA revised the finding to include consideration of costs after an adverse Supreme Court ruling, but critics of the rule say the finding is wrong, and hence the rule lacks the required legal underpinning.
Power plants have already spent millions of dollars to comply with MATS, and therefore scrapping the rule would be a tough decision, Wehrum acknowledges.
Nevertheless, EPA intends to in the future issue a proposal evaluating the stringency of the MACT itself, and will also examine the underlying “appropriate and necessary” finding, according to the agency's unified agenda of forthcoming rulemakings.
https://insideepa.com/daily-feed/epa-extends-electronic-reporting-deadline-utility-mact
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Jul 2, 2018 | Politico
By Kelsey Tamborrino
FERC’S FRIDAY NIGHT NEWS DUMP: Regulators at FERC have known that one day they would have to decide how they would move to protect the power markets they oversee from the state-enacted energy programs, particularly those that support nuclear units, that are tilting the playing field. A divided FERC waded in Friday night in a way that raised concerns among climate advocates and consumer groups about the future of the markets and the viability of state energy initiatives.
So … what happened? PJM Interconnection, which runs the market that spans 13 states, came to FERC with two proposals this spring for “mitigating” state energy programs in its capacity market that ensures enough power plants are available to provide electricity. FERC didn’t like either PJM plan. But the commission’s three Republican members ordered PJM to rewrite its current market rules, declaring they were “unjust and unreasonable and unduly discriminatory.” The order — which was published at 8:45 p.m. Friday — stated the current rules didn’t protect competition in the capacity market against "unreasonable price distortions and cost shifts" from the state policies that are keeping older, uneconomic plants resources in operation or subsidizing new power technologies that aren't yet competitive. Axing the current rules may indicate that FERC's tolerance for state programs may be over.
In a late-night tweetstorm, Democratic FERC Commissioner Rich Glick took issue with the move, writing that the agency shouldn’t use its authorities to restrain state efforts to address global warming. “Doing so puts the Commission on the wrong side of history in the fight against climate change,” he said.
Fellow Democrat, Cheryl LaFleur, also weighed in with a sharp dissent. The majority was considering “the most sweeping changes to the PJM capacity construct since the market’s inception more than a decade ago.” The commission, she added, is “proceeding to overhaul the PJM capacity market based on a thinly sketched concept, a troubling act of regulatory hubris that could ultimately hasten, rather than halt, the re-regulation of the PJM market.”
Doing DOE’s work: Public Citizen’s Tyson Slocum has been raising this issue to ME since before the Energy Department’s grid study was released last year, warning that DOE’s efforts to rescue coal and nuclear plants would surely give cover to PJM’s plans. “FERC is now clearing a wide path … for PJM to implement a ‘market-based’ bailout for uneconomic power plants that will have profound impacts on working families' utility bills and on states' ability to craft emissions reduction strategies,” he said by email. “Everyone remains focuses on the DOE's clumsy efforts to pick winners and losers, while FERC quietly just gave a green light for PJM to do the same.”
What now? FERC is taking comments through Aug. 28 and will “make every effort” to issue new rules by Jan. 9.
IT’S MONDAY! I'm your host, Kelsey Tamborrino. Duke Energy’s Vicky Sullivan was the first to correctly identify Montana as the state with a triple divide that allows water to flow to the Pacific Ocean, Atlantic Ocean or the Hudson Bay at the state’s Glacier National Park. For today: The Declaration of Independence was first publicly read in Philadelphia. Where was it read next? Send your tips, energy gossip and comments to ktamborrino@politico.com, or follow us on Twitter @kelseytam, @Morning_Energy and @POLITICOPro.
ONCE MORE, WITH FURTHER READING: EPA is filling in some of the blanks on its effort to repeal the Obama-era Waters of the U.S. rule, adding about 80 pages to its initial proposal. On Friday, Pro’s Annie Snider reports, the agency released a 93-page “supplemental” proposal, providing more details on its plans — including the administration's multi-step repeal-and-replace process and what happens on the ground in the meantime. The new details suggest the agency might be seeking to bolster its initial 11-page document in an effort to withstand legal challenges to the contentious move. Read more.
EPA SAYS UPWIND STATES HAVE DONE ENOUGH ON OZONE UNDER CSAPR: EPA on Friday said that it believes a 2016 update to the Cross-State Air Pollution Rule satisfies “good neighbor” provisions under the 2008 ozone standard that require upwind states to reduce pollution that hurts air quality in downwind states. In its proposed rule, EPA says that it projects every part of the eastern U.S. will meet the 2008 ozone standard by 2023, and thus upwind states do not need to pay for further pollution controls or otherwise act to reduce emissions beyond what was previously required under the 2016 rule. “Based on progress in reducing concentrations and precursor emissions of ozone, this proposed action will close out the CSAPR approach to ‘good neighbor’ obligations, which has involved the imposition of federal implementation plans and lingering uncertainty for our state partners,” EPA air chief Bill Wehrum said in a statement. Read the proposed rule here; comment will be open for 45 days once it runs in the Federal Register.
Senate Environment and Public Works Committee ranking member Tom Carper (D-Del.), who often complains his state has bad air quality because of upwind pollution, blasted the proposal. “Families in downwind states depend on the EPA to protect the air they breathe by holding polluters in upwind states accountable for their messes. Instead of prioritizing public health, this Administrator seems solely worried about the costs and burdens to upwind polluters,” he said.
CEI, GROUPS AGAINST KIGALI: The Competitive Enterprise Institute and more than 20 other national and state groups will send a letter to the president today, opposing the Kigali amendment to the Montreal Protocol — an Obama-era treaty limiting global use of hydrofluorocarbons, a climate change-causing coolant. The letter outlines how the amendment would do "far more economic harm than environmental good," adding that the environmental benefits are minimal. "It is not just consumers who will be harmed by the Kigali Amendment," they write. "So too will millions of businesses and property owners that rely on air-conditioning or refrigeration — hotels, restaurants, office buildings, rail and truck refrigerated transport — and public buildings, such as schools, churches, theaters, and indoor sports facilities."
FOR YOUR RADAR: EPA on Friday released its second triennial report to Congress on "biofuels and the environment" in relation to the Renewable Fuel Standard, updating the first such report from 2011. Read the report here.
PRUITT ETHICS OFFICIAL WANTS INVESTIGATION: EPA’s top ethics official, Kevin Minoli, earlier this year defended EPA Administrator Scott Pruitt’s sweetheart condo deal only to then acknowledge he didn't have all “factual information” on the lease at the time. Now, Minoli is working behind the scenes to urge independent investigations into Pruitt, according to a letter sent last week and obtained by The New York Times. Minoli recommended investigations that include an examination of Pruitt’s $50-a-night condo, an official with knowledge of the inquiries told the Times. In the letter, Minoli wrote that “additional potential issues regarding Mr. Pruitt have come to my attention through sources within the EPA and media reports.” The letter to the Office of Government Ethics represents the first public acknowledgment by Minoli that Pruitt may have violated federal ethics rules, the Times writes.
YOU'VE GOT MAIL: Pruitt wrote only one email in 10 months to anyone outside the agency, as POLITICO reported earlier this month — a curious practice, greens said, considering the secretive nature of Pruitt's EPA. But new documents released under FOIA from the Sierra Club show Pruitt instead had a penchant for "snail mail" in the early months of 2017, sending physical mail to various oil and gas executives, the Times' Eric Lipton explains in series of tweets.
— Pruitt's book club: During that same time frame, Pruitt's mailbox was filled with at least 11 books on climate change sent to him from the public, POLITICO’s Alex Guillén and Anthony Adragna report. According to the records released under FOIA, Pruitt received titles ranging from Pope Francis’ 2015 climate encyclical “Laudato Si” to two copies of “Global Warming for Dummies.” The books arrived in March 2017, just weeks after Pruitt was confirmed. And while EPA appeared to try to return some of the books, most of them arrived at agency headquarters without any explanation, Alex and Anthony report. Read more.
OFF LIMITS: Former lobbyist and current No. 2-ranking official at EPA, Andrew Wheeler will recuse himself from any matters before the agency related to his former clients, a recusal memo obtained through FOIA said. The only issue specific to EPA from which Wheeler said he is recused is Energy Star, Alex reports. But the memo also said he’d stay away from anything to do with the Energy Department's work to bail out economically struggling coal and nuclear power plants, due to his time formerly lobbying the department on the issue. More here.
TWEET HEARD ROUND THE WORLD: President Donald Trump raised eyebrows this weekend for a tweet that seemed to run counter to the agreement oil producers set at recent OPEC talks and would have required Saudi Arabia to up its oil production to maximum capacity. On Saturday, Trump tweeted that he spoke to the "King Salman of Saudi Arabia and explained to him that, because of the turmoil & disfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference...Prices to high! He has agreed!" But in a statement later Saturday, the White House walked back the announcement, saying that "in response to the President's assessment of a deficit in the oil market, King Salman affirmed that the Kingdom maintains a two million barrel per day spare capacity, which it will prudently use if and when necessary to ensure market balance and stability, and in coordination with its producer partners, to respond to any eventuality."
NEW DETAILS IN WHITEFISH REQUEST: A new email obtained through FOIA and sent to Interior Secretary Ryan Zinke sheds new light on the contract awarded to the small utility, Whitefish Energy, to help rebuild Puerto Rico’s electric grid in the aftermath of Hurricane Maria. “We could really use some assistance with the Department of Energy and Mr. Rick Perry,” wrote Andy Techmanski, CEO of the Montana company. Zinke in October said Whitefish Energy had contacted him after it won the contract, but that he had “absolutely nothing to do with” the company landing the eventually canceled deal. Read morefrom Pro’s Ben Lefebvre.
NAMES ADDED TO MEXICO ENERGY COUNCIL: The departments of Commerce and Energy on Friday released the names of newly appointed U.S. private sector representatives to the U.S.-Mexico Energy Business Council, which is "tasked with providing actionable, non-binding recommendations to both governments on ways to strengthen the U.S.-Mexico relationship" on issues including the energy sector. New members include: Cecilia De La Macorra, director for the Americas of international government relations at Exxon Mobil; Hugo Espinosa, oilfield services commercial director for Latin America at Baker Hughes; and Arturo Infanzon, CFO of Sempra Energy's IEnova.
MAIL CALL! SENATORS PRESS ON PFAS: Democratic Sens. Maggie Hassanand Jeanne Shaheen last week urged Pruitt to take action to protect New Hampshire residents from further contamination from polyfluoroalkyl substances in drinking water, following a public meeting on the topic the agency held in the state. “It is critical for the EPA to take immediate action to protect citizens from further contamination and ensure that responsible parties are held liable for addressing any resulting health and safety concerns,” they write in the letter.
— Democratic Rep. Raja Krishnamoorthi sent a letter to Oversight Chairman Trey Gowdy, calling on him to investigate a recent report from in the Daily Beast that Pruitt used his agency resources to retaliate against current and former aides. Read the letter here.
GREENS MOVE AHEAD OF KLAMATH DAMS: The American Rivers environmental group says the Klamath River Renewal Corporation has submitted to FERC a plan to remove four dams along the contentious Klamath River. As part of the group's application to transfer the license for the dams and remove them, KRRC submitted a 1,500-page document — dubbed the "Definite Plan" — with "analysis and detail on project design, decommissioning, reservoir restoration, and other post-deconstruction activities." FERC must now decide whether to move ahead with the transfer license.
TARGET AUDIENCE: The Emmett Institute at UCLA Law is out with new analysis today on California’s greenhouse gas emissions reduction targets from transport fuels. Under California’s Low Carbon Fuel Standard current targets, the program is projected to cut total emissions by 15 million metric tons carbon dioxide equivalent in 2020, the analysis found — "or more than a quarter of projected reductions from all" California greenhouse gas policies that year. Read it here.
MOVER, SHAKER: Tim Charters will take over as vice president of governmental and political affairs at the National Ocean Industries Association, NOIA announced Friday. Charters previously served as senior director at NOIA.
— The American Coalition for Clean Coal Electricity's board of directors named Michelle Bloodworth ACCCE's new president and CEO. She previously served as the group's COO for more than a year.
QUICK HITS
— "Emails reveal close rapport between top EPA officials, those they regulate," The Washington Post.
— "To head off rising crude prices, it may take more than calls for more oil," The Wall Street Journal.
— "Gov. Walker urges suspension of Pebble Mine project," KTVA.
— Demonstrators protest Pruitt during San Francisco visit, San Francisco Chronicle.
— "MSNBC ends Hugh Hewitt's show," Washington Examiner.
— "2nd Circuit says White House sidestepped statutes in blocking new fuel standard penalties," New York Law Journal.
THAT'S ALL FOR ME!
https://www.politico.com/newsletters/morning-energy/2018/07/02/parsing-fercs-news-dump-268808
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Utica Shale Further Consolidated With Ascent’s $1B-Plus Acquisition
Jul 2, 2018 | Natural Gas Intelligence
By Jamison Cocklin
Ascent Resources LLC announced on Friday that it would acquire 113,400 net Utica Shale acres for $1.5 billion in a package of deals with multiple sellers, ballooning the company’s position in the play to more than 300,000 net acres and becoming one of the country’s largest private exploration and production (E&P) companies in the process.
The deals, cut with Hess Corp., CNX Resources Corp., Utica Minerals Development and another undisclosed seller are expected to close in the third quarter. The package also includes 93 operated wells and 216 MMcfe/d of production, including 19% liquids.
CEO Jeff Fisher said the bolt-on was a “milestone” for the company, which had its beginnings in 2013 when the late Chesapeake Energy Corp. co-founder Aubrey McClendon started a predecessor company to develop affiliates across the country with basin-specific strategies.
“We continue to consistently deliver basin-leading well results through our best in-class operations and after completion of these acquisitions, we will become one of the largest privately held E&P companies in the U.S. in terms of asset size and net production,” Fisher said.
Ascent and its affiliates plan to fund the transactions with about $965 million of common equity and $535 million of borrowings under the company’s revolving credit facility, which was recently upsized. The announcement further consolidates the Appalachian Basin as Ascent said the assets are largely contiguous with its existing position, allowing the company to extend lateral lengths, improve efficiencies and gain more exposure to liquids.
Hess Corp. and CNX Resources Corp. came forward to enable a large part of the deal by agreeing to sell their 50/50 joint venture assets in Ohio for $800 million as both look to continue funding share repurchase programs and core development.
The JV divestiture includes 39,000 net Utica Shale acres, 26,000 of which are undeveloped. Each company would receive $400 million in proceeds at closing, a CNX spokesperson said.
The assets are located in the wet gas window of Belmont, Guernsey, Harrison and Noble counties. Full-year 2018 production from the properties is forecast to average 14,000 boe/d, of which 70% is expected to be residue gas, Hess said.
The announcement ends a nearly seven-year partnership between the two companies. For Hess, the sale marks an exit from Ohio, and it would free up more cash for other onshore operations and a major oil discovery offshore South America that it’s developing with ExxonMobil Corp.
“We continue to focus our portfolio by divesting lower return, noncore assets as part of our strategy to deliver long-term value to shareholders,” CEO John Hess said. “Proceeds from this transaction will be used to invest in our higher return growth opportunities in Guyana and the Bakken, and to fund the company’s previously announced share repurchase program.”
Appalachian pure-play CNX, which has divested more than $500 million in noncore assets since last year when it ditched the coal business to become a standalone natural gas producer, said much the same. The company said proceeds would be invested into the drilling program, bolt-on acreage, share repurchases and paying down debt.
“This transaction is immediately accretive and brings forward the value of assets that were simply outranked by other options in CNX’s opportunity set,” CEO Nicholas Deluliis said. “We will evaluate the use of proceeds through the same capital allocation filter and be methodical in our decision-making.”
CNX still holds more than 600,000 net Utica acres across the Appalachian Basin. It has focused its Ohio operations primarily in Monroe County. The company said the divestiture would reduce 2018 production by 10 Bcfe. It has reduced full-year guidance to 490-515 Bcfe as a result. For 2019 and 2020, the sale is expected to reduce production volumes by 20-25 Bcfe.
http://www.naturalgasintel.com/articles/114909-utica-shale-further-consolidated-with-ascents-1b-plus-acquisition
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(ACC Mentioned) Safety Equipment Group Teams With OSHA
Jul 2, 2018 | Associations Now
By Ernie Smith
The International Safety Equipment Association is kicking off a two-year alliance with the Occupational Safety and Health Administration to underline the importance of personal protective equipment on the job.A major trade group focused on safety issues is teaming up with a federal agency this week. The goal? Keeping workers safe.
The International Safety Equipment Association has announced an alliance with the Occupational Safety and Health Administration in an effort to raise awareness of the need for personal protective equipment.
The organizations will work together to promote OSHA campaigns focused on prevention of issues such as on-the-job falls and heatstroke.
The two-year initiative between the groups extends on safety initiatives for both organizations. ISEA is a trade group that represents the manufacturers of personal protective equipment, and is responsible for helping to set official standards for safety equipment as an ANSI-accredited organization.
OSHA, meanwhile, has focused heavily in recent years on collaborations with private organizations through its Alliance Program.
“Alliance partners help OSHA reach targeted audiences, such as employers and workers in high-hazard industries, and give them better access to workplace safety and health tools and information,” the agency stated in a news release.
A number of associations and nonprofits count themselves among the alliance’s members, including the American Chemistry Council, the American Red Cross, the American Staffing Association, and the Institute of Scrap Recycling Industries.
https://associationsnow.com/2018/07/safety-equipment-group-teams-osha/
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House Democrats Warn FRA Against PTC Exemptions
Jul 2, 2018 | Progressive Railroading
House Democrats last week warned the Federal Railroad Administration (FRA) against issuing exemptions that allow railroads to avoid implementing positive train control(PTC).
In a letter to FRA Administrator Ron Batory, the lawmakers said the exemptions included in the FRA's PTC regulations were "overly broad." Although Congress did not authorize exemptions to the PTC mandate, the FRA included them in its regulations.
The exemptions would enable intercity passenger, commuter and freight railroads to avoid PTC implementation by reducing service, according to the letter.
"This end-run around the law is contrary to congressional intent in mandating implementation of PTC, the requirements of the 2008 [Railroad Safety] Act, and repeated [National Transportation Safety Board] recommendations, as they could lead to serious safety consequences for the traveling public," the lawmakers wrote.
Signing the letter were U.S. Rep. Peter DeFazio (D-Ore.), ranking member of the House Transportation Committee; U.S. Rep. Michael Capuano (D-Mass.), ranking member of the Subcommittee on Railroads, Pipelines and Hazardous Materials; and U.S. Reps. Steve Cohen (D-Tenn.) and Jim Cooper (D-Tenn.).
The letter was prompted by the FRA's approval of a request from the Nashville Regional Transit Authority (RTA) and the Nashville & Eastern Railroad Corp. (NERC) for a permanent exemption from the PTC mandate for the Music City Star commuter railroad, which operates on 32 miles of NERC-owned right of way.
"Although the Music City Star is one of the smallest commuter rail operations in the United States, the size of a railroad does not negate the potential for an accident," the letter stated, noting that the FRA's database indicates that "human factors" remain the leading cause of accidents involving commuter railroads.
"PTC is designed to address accidents attributable to human factors. While RTA has committed to implement PTC if it expands its commuter rail service, any exemption from PTC raises serious safety concerns," they wrote.
The lawmakers urged the FRA to revise its regulations to tighten PTC exemptions "and focus on ways to help railroads comply with the law rather than circumvent it through regulatory carve outs."https://www.progressiverailroading.com/ptc/news/House-Democrats-warn-FRA-against-PTC-exemptions--55023
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NJ Transit Could Qualify for PTC Extension Under New Testing Plan
Jul 2, 2018 | Progressive Railroading
The Federal Railroad Administration (FRA) has approved New Jersey Transit's positive train control (PTC) testing plan that would qualify the agency for a two-year extension to implement the technology.
While existing PTC law allows railroads to seek an extension if they initiate a PTC revenue service demonstration on at least one required territory, the FRA can establish "substitute criteria" for commuter railroads.
In a June 26 letter to NJ Transit leaders, FRA Associate Administrator for Railroad Safety Robert Lauby approved NJ Transit's request to establish different criteria for obtaining the extension.
For NJ Transit, that will involve initiating field functionality testing of its Advanced Speed Enforcement System II (ASES II) on a portion of its Morristown Line by Dec. 31, according to Lauby's letter. NJ Transit also must submit a a master test plan, along with a schedule for its field functionality testing.
"We expect to meet the FRA's statutory requirements by the end of the year and, ultimately, receive their approval to have PTC fully implemented on our rail system by Dec. 31, 2020," NJ Transit officials said in an emailed statement.https://www.progressiverailroading.com/ptc/news/NJ-Transit-could-qualify-for-PTC-extension-under-new-testing-plan--55018
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Judge Gives EPA Deadline for Studies Backing Pruitt's Claims
Jul 2, 2018 | E&E Greenwire
By Amanda Reilly
A federal judge is giving EPA more time — but not as much as the agency wanted — to search for and produce scientific studies backing Administrator Scott Pruitt's position on climate change.
In her decision Friday rejecting EPA's full request for additional time, Chief Judge Beryl Howell of the U.S. District Court for the District of Columbia admonished the agency for rehashing "already-rejected arguments" and dragging its feet on compliance with the records request.
At issue: Howell's June 1 order that EPA respond to a Freedom of Information Act request filed by Public Employees for Environmental Responsibility seeking records related to comments Pruitt made in a 2017 interview on CNBC's "Squawk Box."
In the interview, Pruitt stated that human activity is not a "primary contributor" to climate change and that "there's tremendous disagreement about the degree of impact" that human activity has on global warming.
PEER filed its request a day after the March 9, 2017, interview aired, seeking both studies upon which Pruitt based his statements and any EPA scientific findings that human activity is not the biggest factor behind climate change.
But Howell found that EPA failed to even begin a search for the records. She ordered EPA to conduct and complete a search for the records that PEER requested by today and to disclose any records it found on a rolling basis (Greenwire, June 4).
EPA, though, last week asked Howell to extend by more than a month her earlier deadlines for producing the records. The agency said it was "taking steps" to comply with the order but that it was still working on a search methodology and that PEER's request was "complicated" (Greenwire, June 27).
In her order Friday, Howell gave EPA 10 extra days to complete a search for records upon which Pruitt based his statements. EPA must produce any nonexempt records by Aug. 1.
"Contrary to this Order, in the last month, EPA advises that no search for records responsive to either part of the FOIA request submitted fifteen months ago has been initiated," Howell wrote.
As for the second part of the FOIA request — that EPA produce any scientific studies supporting the conclusion that humans aren't driving climate change — Howell wrote that the agency's motion for more time was predicated on a "continued mis-reading" of PEER's request.
She ordered EPA to confer with PEER and begin a search for the records by the end of the week.
PEER, which had objected to EPA's bid for more time, today accused EPA of stalling to avoid having to admit in court that "Mr. Pruitt was simply talking out of his hat."
"PEER is more than willing to help EPA search its own database, although one would think a federal agency should be capable of undertaking such a pursuit without needing guidance from a small nonprofit," PEER attorney Paula Dinerstein said. "Perhaps the problem is that EPA has banished all its climate experts and must rely upon staff who have little grasp of the extensive work the agency has done in this field."
https://www.eenews.net/greenwire/2018/07/02/stories/1060087499
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Conservatives Face Off on Obama-Era Agreement
Jul 2, 2018 | E&E Greenwire
By Hannah Northey
Almost two dozen conservative and free-market groups are pushing back against a growing group of Republican lawmakers supporting an Obama-era climate agreement.
The Competitive Enterprise Institute, Heritage Foundation and American Energy Alliance jointly asked the White House today not to send the so-called Kigali Amendment to the Senate for approval.
The amendment — named for the Rwandan capital where it was finalized in 2016 — would phase out the potent greenhouse gases known as hydrofluorocarbons (HFCs).
"We urge you not to submit this United Nations treaty negotiated by the Obama Administration to the Senate," the groups told Trump in the letter. "Congress should be spending its time working with you to cut red tape, not add to it."
Myron Ebell. Competitive Enterprise Institute.
Signatories of the letter included Tim Chapman, executive director of the Heritage Foundation; Myron Ebell, EPA transition team lead and energy and environment director at the CEI; and Princeton University physicist William Happer, who has argued more carbon dioxide is good for the planet. Also signing the letter was Thomas Pyle, who led Trump's DOE transition and is now president of the American Energy Alliance.
While the pushback is not unexpected, the groups involved have found some influential footing within the Trump administration.
The goal of the amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer is to avert enough emissions from air conditioning units and refrigerators to reduce warming by 0.5 degree Celsius (0.9 degree Fahrenheit) by 2100.
The agreement requires ratification in the U.S. Senate by a two-thirds majority (Climatewire, June 2).
While the language got a stamp of approval from Trump's State Department last year, it's since hit a snag within the broader administration.
And yet it continues to gather support on Capitol Hill, even on the right.
Last month, a trio of Senate Republicans wrote Trump and asked him to send it their way. That letter was signed by Sens. John Kennedy and Bill Cassidy of Louisiana and Susan Collins of Maine.
The senators said the amendment is critical for fostering a smooth transition to American-made, commercially available, next-generation technologies, a move that would give the nation's domestic manufacturing sector a leg up.
https://www.eenews.net/greenwire/2018/07/02/stories/1060087513
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Seattle Bans Plastic Straws, Utensils at Businesses
Jul 2, 2018 | AP (In The New York Times)
Looking for a straw to sip your soda? It's no longer allowed in Seattle bars and restaurants.
Neither are plastic utensils in a push to reduce marine plastic pollution. Businesses that sell food or drinks won't be allowed to offer the plastic items under a rule that went into effect Sunday.
The Seattle Times reports that it's believed to be the first major U.S. city to ban single-use plastic straws and utensils in food service.
Seattle Public Utilities says a 2008 ordinance has phased out various plastic products from the food industry. Businesses can use compostable utensils, straws and cocktail picks.
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Advocates say plastic items can't be recycled and many single-use plastics end up in the ocean, polluting the water and harming sea life.
Businesses that don't comply may face a fine of up to $250.
https://www.nytimes.com/aponline/2018/07/02/us/ap-us-seattle-plastic-ban.html
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