Preview Newsletter
PM ACC Clips Report - July 12, 2018
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(ACC Mentioned) Industry Reps Hope US, China Resolve Trade War
Jul 12, 2018 | Rigzone
By Matthew V. Veazey
In the latest chapter of the trade dispute between the U.S. and Chinese governments, the Trump administration has ordered the Office of the U.S. Trade Representative (USTR) to initiate the rollout of a new, larger set of tariffs on Chinese imports, USTR stated Tuesday. -
(ACC Mentioned) Let the 'Minibus' Negotiations Begin
Jul 12, 2018 | Politico - Morning Energy
By Kelsey Tamborrino
Negotiators begin hashing out their differences today on the so-called minibus package, H.R. 5895 (115), that passed both the House and Senate in June. -
(ACC Mentioned) U.S. House of Representatives Passes Rep. Katko’s 30th Bipartisan Bill
Jul 12, 2018 | URBAN CNY
The U.S. House of Representatives Tuesday evening unanimously passed the bipartisan Transportation Worker Identification Credential Accountability Act of 2018, introduced by U.S. Rep. John Katko (NY-24). -
(ACC Mentioned) 4 Dividend Paying Chemical Stocks to Boost Portfolio Returns
Jul 12, 2018 | Zacks (In Nasdaq)
The chemical industry continues its positive run this year on the back of healthy demand across automotive and construction end-markets, a recovery in demand for chemicals in the energy market supported by a rebound in oil prices and an upturn in the world economy. -
Trade War Means Seismic Shifts for Chemicals
Jul 12, 2018 | ICIS
By Will Beacham
As US President Donald Trump ratchets up his tariffs against China, it looks increasingly like a full-blown trade war is in the offing. -
Meet the New Second in Command
Jul 12, 2018 | E&E Greenwire
By Kevin Bogardus
A former Arizona state official brought to EPA by Scott Pruitt to streamline agency operations got a promotion yesterday in the wake of the embattled administrator's departure. -
Wheeler, in Break with Pruitt, Posts More Detailed Calendars
Jul 12, 2018 | E&E Greenwire
By Maxine Joselow
EPA has released the previous day's calendar for newly minted acting Administrator Andrew Wheeler, in a move toward greater transparency. -
Wheeler Lobbied for Coal — and Cheese, Washers, Cars
Jul 12, 2018 | E&E Climatewire
By Mike Soraghan and Corbin Hiar
Andrew Wheeler, EPA's acting administrator, might be best known as a former coal lobbyist. He was also a cheese lobbyist. -
House Dem Amendment Seeks to Ensure Pruitt Probes Are Completed
Jul 12, 2018 | The Hill - E2 Wire
By Timothy Cama
Two House Democrats have introduced an amendment that seeks to ensure the probes into former Environmental Protection Agency’s (EPA) chief Scott Pruitt are completed. -
Ewire: Trump Critics Seize on Russian Praise for EPA Asbestos Rule
Jul 12, 2018 | Inside EPA
Environmentalists are stepping up their attack on EPA’s plan for a limited rule governing new uses of asbestos rather than a long-sought ban after a Russian mining company has started branding pallets of the material with President Donald Trump’s face to celebrate that he is “on our side” against more stringent regulations. -
EPA Requests Input on Documents for TSCA Chemical Evaluations, Proposes Asbestos Rule
Jul 12, 2018 | Safety+Health Magazine
The Environmental Protection Agency is seeking comment on problem formulation documents for the first 10 chemicals slated for evaluation for potential health and environmental risks under the Frank R. Lautenberg Chemical Safety for the 21st Century Act, as well as a systematic review approach document and a proposed significant new use rule for asbestos. -
(ACC Mentioned) UN Reports Risk 'Oversimplifying EDCs Science', Says ACC
Jul 12, 2018 | Chemical Watch
By Leigh Stringer
The American Chemistry Council says three UN overview reports on endocrine disrupting chemicals risk "oversimplifying the science". -
Member States Back EU Phthalates Restriction Proposal
Jul 12, 2018 | Chemical Watch
By Luke Buxton
EU member states have voted unanimously in favour of a proposal to restrict the phthalates DEHP, DBP, DIBP and BBP in articles. -
Report on Decade of Echa BoA Shows Balanced Outcomes
Jul 12, 2018 | Chemical Watch
By Clelia Oziel
More than 100 decisions adopted by Echa's Board of Appeal over the past decade have demonstrated "balanced" verdicts that have been "widely accepted" by the parties involved in appeal proceedings, according to its annual report to the agency. -
Envi Presses EU Commission to Toughen up Plastics Strategy
Jul 12, 2018 | Chemical Watch
By Luke Buxton
The European Parliament's Environment Committee (Envi) has called on the Commission to bolster its plastics strategy, by banning microplastics in cosmetics, personal care, detergents and cleaning products by 2020. -
Echa Round-Up
Jul 12, 2018 | Chemical Watch
Echa has invited third parties to submit scientifically valid information and studies on 11 testing proposals for five substances. -
UK Brexit White Paper Repeats Calls for Echa Participation
Jul 12, 2018 | Chemical Watch
The UK has reiterated its desire for associate membership of Echa in a new Brexit White Paper that sets the government’s vision for a future economic partnership with the EU. -
Canada Adds Triclosan to Toxic Substances List
Jul 12, 2018 | Chemical Watch
By Kelly Franklin
Canada's government has added triclosan and the dye disperse yellow 3 to schedule 1 of the country's Environmental Protection Act (Cepa) – its list of toxic substances. -
Alaska Wants to Drill for Oil and Fight Warming
Jul 12, 2018 | E&E Climatewire
By Kelsey Brugger
Alaska's appetite for oil is as ubiquitous as the state's proliferating examples of a changing climate. -
Scientists Urge Jerry Brown to Halt Oil, Gas Production
Jul 12, 2018 | E&E Greenwire
By Anne C. Mulkern
California must end oil and gas drilling in the state to help meet the goals of the Paris Agreement to limit climate impacts, a group of scientists will tell Gov. Jerry Brown (D) today. -
Oryx Gauging Interest in More Crude Oil Takeaway from Permian Delaware
Jul 12, 2018 | Natural Gas Intelligence
By Carolyn Davis
Oryx Midstream Services II LLC is testing support for more crude oil transportation services from the Permian Basin’s Delaware formation. -
U.S. Supreme Court Nominee Brett Kavanaugh Likely to Limit Regulatory Authority
Jul 12, 2018 | Chemical & Engineering News
By Jeff Johnson
If confirmed to the U.S. Supreme Court, U.S. District Judge Brett M. Kavanaugh will be reliably conservative and show deference to presidential power, legal scholars say. He is also likely to limit authority of regulatory agencies such as the EPA and OSHA. -
Watchdogs Fear Kavanaugh Would Hamstring Environmental Suits
Jul 12, 2018 | E&E Greenwire
By Amanda Reilly
President Trump's Supreme Court nominee, Brett Kavanaugh, has shown "troubling tendencies" toward shutting the courtroom door on citizens and advocacy organizations by throwing out cases on procedural grounds, watchdog groups say. -
Will Wheeler Support a Climate Treaty? Backers Cross Fingers
Jul 12, 2018 | E&E Climatewire
By Jean Chemnick
Proponents of a U.N. agreement to phase out coolants and refrigerants that contribute to global warming hope EPA's change of leadership will help grease the skids for U.S. ratification. -
State Emissions Reach Milestone — 1990 Levels
Jul 12, 2018 | E&E Climatewire
By Debra Kahn
California has reached its greenhouse gas target of 1990 levels four years early, regulators announced yesterday.
Industry and Association News
LCSA News
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Energy News
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Environment News
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(ACC Mentioned) Industry Reps Hope US, China Resolve Trade War
Jul 12, 2018 | Rigzone
By Matthew V. Veazey
In the latest chapter of the trade dispute between the U.S. and Chinese governments, the Trump administration has ordered the Office of the U.S. Trade Representative (USTR) to initiate the rollout of a new, larger set of tariffs on Chinese imports, USTR stated Tuesday.
“On Friday, in response to unfair Chinese practices, the United States began imposing tariffs of 25 percent on approximately $34 billion worth of Chinese imports,” USTR Robert Lighthizer said in a July 10 press release. “These tariffs will eventually cover up to $50 billion in Chinese imports as legal processes conclude. The products targeted by the tariffs are those that benefit from China’s industrial policy and forced technology transfer practices.”
According to the USTR official, China took action “without any international legal basis or justification.” He went on to say that President Trump has subsequently ordered USTR to “begin the process of imposing tariffs of 10 percent on an additional $200 billion of Chinese imports.”
The Trump administration’s latest tariff proposal would affect 6,031 product classifications. To review a list of products of interest to the oil and gas and chemicals industries, scroll down from page 45 of this document.
In response to the latest USTR announcement, the head of the American Fuel and Petrochemical Manufacturers (AFPM) told Rigzone that tariffs imposed by both the United States and China would be a losing proposition for both sides.
“Thanks in part to President Trump’s deregulatory and tax cutting agenda, America is moving toward its goal of energy security,” said AFPM President and CEO Chet Thompson. “Chinese tariffs on our energy and petrochemical exports would be counterproductive and hurt both countries. We hope the administration and the Chinese can come to agreement as soon as possible to avoid that damage.”
In a written statement, the American Chemistry Council (ACC) called the potential 10 percent tariff on $200 billion of additional imports from China “a stunning and unfortunate development for U.S. manufacturers and consumers.”
“Unilateral actions that alienate long-standing U.S. allies and close off the U.S. market to the rest of the world are not a recipe for economic growth and prosperity and are very unlikely to change China’s unfair practices,” stated ACC, which urged the Trump administration to form a “strong, multilateral coalition” to end the trade war.
“As an industry that touches 96 percent of all manufactured goods and which has much to gain from a productive, respectful trading relationship with China, ACC and our members remain hopeful that the U.S. and China can resolve their differences and prevent further harm to U.S. manufacturers, farmers and consumers,” the organization said.
https://www.rigzone.com/news/industry_reps_hope_us_china_resolve_trade_dispute-12-jul-2018-156268-article/
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(ACC Mentioned) Let the 'Minibus' Negotiations Begin
Jul 12, 2018 | Politico - Morning Energy
By Kelsey Tamborrino
LET THE ‘MINIBUS’ NEGOTIATIONS BEGIN: Negotiators begin hashing out their differences today on the so-called minibus package, H.R. 5895 (115), that passed both the House and Senate in June. The Senate signed off on its conferees Wednesday, following the House, which selected its negotiators in late June, Pro’s Jennifer Scholtes reports.
Lawmakers from both parties enter the conference optimistic they’ll be able to swiftly resolve the differences between the chambers, perhaps even by the end of the month. “I’ve already talked to Chairman [Mike] Simpson,” Sen. Lamar Alexander, who led the Senate’s bill, told ME. “We always have a few differences, but he’s excellent to work with and I’m optimistic.” Appropriations Chairman Richard Shelby told reporters he hoped to work “as fast as we can” but quickly added: “What’s fast around here? We don’t know.”
Simpson, who led the House bill, told ME he expected the conference to go quickly but seemed a little less upbeat that everything would be entirely smooth sailing: “There are some hurdles, but we’ll see if we can get through them,” he said.
Democratic conferees said early signs were positive that poison pill riders could be left off the final legislation, which would cover fiscal 2019 funding for, among other things, the Energy Department and water projects. Sen. Brian Schatzsaid the chamber is on the right path to completing its work, pointing to Republican leaders joining Democrats to vote down an amendment on WOTUS as an indication. “That was the kind of discipline you need to appropriate,” he said. Sen. Chris Murphy said completing work on this minibus would show congressional leaders they could get others across the finish line: “I don’t see why we couldn’t wrap this up in a week or two,” Murphy said. “If you show the ability in conference to keep off new legislative language and protect it when it comes back to the House and Senate, it becomes harder to load up the other bills with non-appropriations language.”
Senators also voted 95-4 Wednesday to pass a motion by Bill Cassidyinstructing lawmakers negotiating the appropriations bill to reauthorize the National Flood Insurance Program until Jan. 31. More on that here.
Ahead of the meeting: A host of energy efficiency organizations and businesses, including the Advanced Energy Economy and Alliance to Save Energy, sent a letterto appropriators urging them to enact the Senate’s appropriation for the energy efficiency programs under DOE.
SPEAKING OF APPROPS: House lawmakers had until yesterday to file any amendments to H.R. 6147 (115), the Interior-Environment appropriations bill, which the chamber plans to take up next week. More than 180 proposed changeswere submitted, Pro’s Budget team reports. Democratic Reps. Gerry Connolly and Don Beyer offered an amendment that would ensure the EPA’s inspector general will continue its investigations into former EPA Administrator Scott Pruitt by blocking funding to finalize rulemakings initiated by Pruitt until the probes end. The Rules Committee will soon vote to decide which amendments make the cut for debate for both the Interior-Environment and Financial Services, H.R. 6258 (115), measures, which will be combined into the second minibus.
IT’S THURSDAY! I'm your host, Kelsey Tamborrino. Ketchum’s Becca Kronebusch was first to identify Rep. Anna Eshoo, of California’s 18th District, the district with the highest median household income in the nation, according to the U.S. Census. For today: Name the two U.S. states that each border eight other states. Send your tips, energy gossip and comments to ktamborrino@politico.com, or follow us on Twitter @kelseytam, @Morning_Energy and @POLITICOPro.
I WANT YOU FOR FERC: FERC Commissioner Neil Chatterjee went on a recruiting blitz via Twitter Wednesday night floating ideas to attract engineering and legal expertise to the agency to review natural gas export project applications. In a lengthy tweetstorm Chatterjee suggested higher pay, a regional office in Houston, and establishing a fellowship program to attract talent. “Look forward to exploring these & other creative options w/ Chairman @McIntyreFERC, #Congress & the #Administration. Stay tuned!” he wrote. Last month, Chairman Kevin McIntyre said that the agency had hired private contractors for LNG terminal construction inspections for the first time because the workload had become “enormous.”
HOUSE REPUBLICAN BREAKS WITH TRUMP: GOP Rep. Erik Philip Paulsen released his first TV ad Wednesday in his bid for reelection in Minnesota. Paulsen uses the ad to draw a line between him and President Donald Trump on mining in the Boundary Waters Canoe Area Wilderness. “I’m for mining — just not there. It’s too special — too important a place,” Paulsen says in the spot. Watch it here.
PENCILED IN: EPA released calendars on Wednesday for recently departed Administrator Scott Pruitt and acting Administrator Andrew Wheeler, and the two look … different. Immediately notable is the number of staff meet-and-greets on Wheeler’s calendar. Since he started at EPA as Pruitt’s No. 2 on April 20, Wheeler met with all 10 regional administrators, visited two regions, and held meet-and-greets with a few key EPA offices like the Office of Public Affairs and the Office of Policy, and received briefings on others. Pruitt’s calendar shows he made it to only three regional offices since he started in February 2017, though he may have met all the regional administrators at a meeting in Dallas in January.
Howdy, boss! Wheeler’s first congressional meeting after getting sworn in was with his old boss, former Senate Environment and Public Works Chairman Jim Inhofe. He followed up that meeting with calls with current EPW Chairman John Barrasso and the committee’s top Democrat, Tom Carper. Wheeler also spoke with House Energy and Commerce Chairman Greg Walden and key subcommittee Chairman John Shimkus, as well as top E&C Democrats Frank Pallone and Paul Tonko. As deputy, Wheeler also sat down with two environment and conservation groups: the National Wildlife Federation and Trout Unlimited. He had face time with Big Business, including the American Chemistry Council, the Production Agriculture Council CEOs, the United Egg Producers, the National Association of Manufacturers, and the U.S. Chamber of Commerce.
Biofuel interests got some face time: Wheeler held three meetings with pro-biofuels interests in his short time as deputy administrator, including the Fuels America Coalition, the Renewable Fuels Association, and Love’s Truck Stops (which blends biofuel and has an interest in the RFS program). By contrast, Pruitt met with the American Petroleum Institute, no fan of the program, though it also opposed most of Pruitt’s moves to suppress biofuel compliance costs. Pruitt’s meetings and calls with senators on the issue included major RFS players like Iowa Sens. Chuck Grassley and Joni Ernst, Pennsylvania's Pat Toomey and Texas' Ted Cruz.
EPA Pride! Wheeler also celebrated Pride Month at EPA in June, an event that never appeared on Pruitt’s calendar.
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SPEECH USHERS IN NEW EPA ERA: Wheeler addressed EPA staffers for the first time Wednesday as acting administrator, aiming to put employees at ease after 17 months under Pruitt, POLITICO’s Alex Guillén and Emily Holden report. But while his remarks left many staffers hopeful, there was still an air of “wait and see" among the crowd. Wheeler made clear he intended to stay the course laid out by Pruitt — rolling back regulations and helping speed the development of energy sources like coal, gas and oil. But, Alex and Emily write, the contrast with the Pruitt era had people expressing relief. One such staffer said Wheeler’s comments were predictable, but seemed “like he gets it better than Pruitt.” Read the story.
Welcome aboard: Henry Darwin, EPA’s chief of operations, will take on the role of acting deputy administrator, Wheeler announced Wednesday.
WHAT’S NEXT FOR PRUITT? Inhofe said he hasn’t spoken with Pruitt since his resignation, nor does he know anyone else who has, in what he called a period of “unusual” silence. But he said no one should count out a political resurrection for Pruitt in Oklahoma. “He’s always been very popular in Oklahoma and I’d think that’d be something he’d want to consider,” he told ME.
BARRASSO: EPW GETS DIBS ON WHEELER: There’s no set date yet, but Barrasso told ME that Wheeler promised his first stop on Capitol Hill as acting administrator would be the panel where he served as a longtime aide. “He’s going to make the EPW Committee his first visit to the Hill,” Barrasso said after speaking with Wheeler on Tuesday. Remember Pruitt was scheduled to come before EPW in August before he resigned.
WRDA timing: Barrasso said the Senate will likely consider appropriations legislation next week but that a broad water resources package, S. 2800 (115), is "likely coming after that.”
ENDANGERED SPECIES ACT PUSH ROLLS ON: A group of Congressional Western Caucus members, including House Natural Resources Chairman Rob Bishop, will release a package of bills today that they say will address “historically and currently problematic or dysfunctional components” of the Endangered Species Act. That comes as Barrasso is preparing a hearing, featuring Wyoming Gov. Matt Mead, next week on his own discussion draft aimed at changing the statute. The House presser kicks off in the House Triangle at 4 p.m. and will be streamed here.
NATHANIEL REED, EVERGLADES LEGEND, DIES AT 84: Nathaniel “Nat” Reed, a lifelong Florida environmental advocate who served in state government, as well as the Nixon and Ford administrations, died Wednesday at 84. Reed cut his teeth serving in Republican Florida Gov. Claude Kirk’s administration in the 1960s, where he took on developers, mayors whose cities were dumping untreated sewage directly into waterways, and backers of a massive “jetport” slated for construction in the center of the Everglades.
Nixon appointed Reed to the No. 2 post at the Interior Department, during which time he convened a group of fellow administration officials for a meal at a Chinese restaurant and crafted language that went on to become the Endangered Species Act, according to the Tampa Bay Times. Reed was a fixture in Florida environmental circles, serving on a number of nonprofit boards, and maintained a fresh enthusiasm for the natural world, especially his Everglades, well into his later years. The full Tampa Bay Times obituary is worth the read.
ON TAP TODAY: The House Energy & Commerce Committee is slated to vote on more than a dozen bills across the panel’s broad health-tech-energy jurisdiction, including two measures that deal with nuclear power. Bipartisan legislation from Adam Kinzinger and Mike Doyle, H.R. 1320 (115), would rewrite how the Nuclear Regulatory Commission assesses user and annual fees on the industry, which funds 90 percent of the agency’s budget. The bill would tamp down how much money the NRC can use for its overhead, cap annual fees and avoid using fees on operating plants to fund regulatory work on advanced reactors. The Nuclear Utilization of Keynote Energy Act has a Senate counterpart that is similarly bipartisan, S. 512 (115), that is awaiting floor time. The markup starts at 10 a.m. in Rayburn 2123.
MUSK COMMITS TO FLINT: Tesla Founder Elon Musk tweeted Wednesday that he’d commit to getting clean water to Flint, Mich. “Please consider this a commitment that I will fund fixing the water in any house in Flint that has water contamination above FDA levels. No kidding,” he tweeted. It's worth noting EPA is the agency that regulates public drinking water lead requirements, not FDA.
MEET PREPA’S NEW CHIEF: The Puerto Rico Electric Power Authority announced Wednesday that board member Rafael Díaz-Granados will take over as CEO. The previous CEO, Walter Higgins, will step down and join the board. Díaz-Granados was appointed last year as an independent member of the Governing Board of the Electric Power Authority for a term of five years.
https://www.politico.com/newsletters/morning-energy/2018/07/12/let-the-minibus-negotiations-begin-276548
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(ACC Mentioned) U.S. House of Representatives Passes Rep. Katko’s 30th Bipartisan Bill
Jul 12, 2018 | URBAN CNY
The U.S. House of Representatives Tuesday evening unanimously passed the bipartisan Transportation Worker Identification Credential Accountability Act of 2018, introduced by U.S. Rep. John Katko (NY-24).
The bill marks the 15th bipartisan measure Rep. Katko has passed through the House this term, and the 30th bill passed since he was sworn in to represent Central New York in Congress in 2015.
The bill provides necessary relief to transportation stakeholders who have suffered under the opaque and unresponsive rulemaking processes of the Department of Homeland Security. Specifically, the bill addresses concerns expressed by many industry stakeholders over the pending implementation of a biometric reader requirement for Transportation Worker Identification Credentials (TWIC) card holders at high-risk ports. The TWIC program was established after 9/11 to improve security at high-risk ports. However, since its inception, DHS has failed to issue timely implementation guidance in advance of this rulemaking, leaving stakeholders unsure as to how and where to direct resources for compliance. Rep. Katko’s bipartisan bill will delay the implementation of the “reader rule” until an ongoing study on the effectiveness of the TWIC program is complete.
“Nationwide, thousands of individuals are employed by countless industries that support our nation’s infrastructure. For several months, many of these industries have awaited guidance from DHS regarding implementation of the TWIC ‘reader rule.’ Yet, as the upcoming August 23rd deadline approaches for compliance with this program, it has become nearly impossible for industries to move forward without guidance from DHS,” said Rep. Katko. “The bipartisan measure passed through the House yesterday evening will ensure greater transparency from DHS and enable a more responsive and collaborative process in implementing any future rule.”
Majority Whip Steve Scalise stated, “I applaud Rep. Katko for introducing the Transportation Worker Identification Credential Accountability Act of 2018 and for his hard work in its successful passage on the House floor. For years, the TWIC program has been plagued with red tape and burdensome requirements, which bog down efficiency on our waterways. I have been a strong champion of reforming the TWIC program, and know that Congressman Katko’s bill is a commonsense approach to preventing further onerous regulations under the TWIC program, while allowing proper oversight of the Coast Guard’s rulemaking process. I applaud Rep. Katko on passing this important piece of legislation and on his record of passing 30 similarly strong bills over the past two Congresses.”
Katko’s legislation received the support of several organizations which would be burdened by implementation of this rule, including the American Fuel & Petrochemical Manufacturers, the American Chemistry Council, the American Petroleum Institute, the International Liquid Terminals Association, the Louisiana Chemical Association, the National Association of Manufacturers and the National Tank Truck Carriers.
Rep. Katko continued, “In a time of gridlock in Washington, I’ve consistently worked across the aisle to be an independent and productive representative for Central New York, and I’m proud to have passed my 30th bipartisan bill through the House.”
http://www.urbancny.com/u-s-house-of-representatives-passes-rep-katkos-30th-bipartisan-bill/
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(ACC Mentioned) 4 Dividend Paying Chemical Stocks to Boost Portfolio Returns
Jul 12, 2018 | Zacks (In Nasdaq)
The chemical industry continues its positive run this year on the back of healthy demand across automotive and construction end-markets, a recovery in demand for chemicals in the energy market supported by a rebound in oil prices and an upturn in the world economy.
Moreover, President Trump's business-friendly tax reform contributed to the impressive earnings performance of the U.S. chemical companies in the first quarter. It is likely to remain a major tailwind as the reforms are expected to boost their bottom line, improve cash flow and incentivize capital investments.
How Things Are Shaping Up in the Industry?
Strong Demand in Major Markets : Chemical makers continue to see strong demand from construction and automotive sectors - major chemical end-use markets. The underlying trends in the housing space remain healthy, backed by strong economic growth, steady buyer demand, declining mortgage rates, high homebuilders' confidence and strong job market scenario.
The automotive sector also continues its good run amid certain challenges, supported by an improving job market, rising personal income, favorable credit conditions, improved consumer confidence and impressive vehicle launches.
A Rebound in Energy : Improving fundamentals in the energy space - a key market for chemicals - has been a major tailwind for the chemical industry. A recovery in crude oil prices has led to an increase in demand for chemicals in the energy market and a favorable pricing environment for chemical products. This is because chemical and oil prices move in tandem.
Higher Production to Drive Growth in U.S. Chemical : The U.S. chemical industry is expected to witness strong gains in the production of agricultural chemicals, consumer products, coatings and bulk petrochemicals this year, per the industry trade group - American Chemistry Council (ACC). The trade group expects a strong growth in several chemical sectors in including fertilizers, petrochemicals, crop protection, coatings and consumer products. The ACC envisions national chemical production (excluding pharmaceuticals) to rise 3.4% in 2018.
Moreover, the group expects continued expansion in production across the United States this year, with the Gulf Coast region witnessing strongest gains. Moreover, growth in output is expected to be driven by higher demand across light vehicles and housing markets as well as upturn in U.S. manufacturing. While the automotive sector is expected to remain at high levels, steady recovery in housing is likely to continue in 2018.
Favorable Shale Gas Economics : The United States continues to be an attractive destination for chemical investment. The American chemical industry has the competitive advantage of accessing abundant supplies of natural gas liquids (NGLs) and shale gas. Economics of shale gas is driving strong capital investment in new chemical projects, which is driving growth in the U.S. chemical space.
Improving Export Markets : The ACC expects strong export markets to bolster the U.S. chemical industry in 2018. It expects two-way trade between the United States and foreign partners to expand 6.2% year over year and reach $241 billion this year on the back of strong demand from overseas markets and domestic manufacturers downstream.
How Dividend Paying Stocks Can Enrich Your Portfolio
Stocks with solid dividend yield and attractive growth prospects offer excellent choices for investors seeking to create a portfolio that performs well in a growing market and offers downside protection.
Consistent dividend payouts underscore a company's financial strength and stability. Given the positive developments in the chemical space, it would be a prudent move for investors to add some top-quality dividend stocks in their portfolio.
We have employed the Zacks Stocks Screener to find four top chemical companies that offer a decent dividend yield and sport a favorable Zacks Rank. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Methanex CorporationMEOH
This Canada-based chemical company is the world's largest producer and supplier of methanol. The stock currently sports a Zacks Rank #1 and offers dividend yield of 1.9%. It has expected long-term earnings per share growth rate of 15%.
Eastman Chemical CompanyEMN
This Zacks Rank #2 (Buy) stock is a global chemical producer boasting a broad portfolio of chemical, plastic and fiber products. The stock has a dividend yield of 2.3% and expected long-term earnings per share growth rate of 9.4%.
Celanese CorporationCE
Irving, TX-based Celanese carries a Zacks Rank #2 and offers dividend yield of 1.9%. It has long-term expected EPS growth rate of 8.9%.
LyondellBasell Industries N.V.LYB
This Netherlands-based company is among the leading plastics, chemical and refining companies globally. The stock currently carries a Zacks Rank #2 and offers dividend yield of 3.8%. It has long-term expected EPS growth rate of 9%.
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Trade War Means Seismic Shifts for Chemicals
Jul 12, 2018 | ICIS
By Will Beacham
As US President Donald Trump ratchets up his tariffs against China, it looks increasingly like a full-blown trade war is in the offing.
His decision to put “America First” signals a move away from the globalisation philosophy that has dominated the global economy since the Second World War. Replacing it is a retreat into a focus on individual nations and regions which has major implications for the chemical industry.
With import tariffs going up between major economies and likely to increase in scope and intensity, chemical CEOs will need to focus on ensuring they have production within their key markets. Relying on a single plant to serve the global market may no longer make business sense if a 25% tariff will be slapped onto its exports.
FROM FEEDSTOCKS TO MARKET ACCESS
Close proximity to cheap feedstocks has been a key driver in plant location decisions for many years. Now unfettered market access may become more of a factor in decision-making.
Indeed this change is happening already. Look at BASF’s decision this week to choose China for its largest-ever investment – a $10bn verbund site in Guangdong province. The company had been expected to choose the US for its largest investment – a methanol-to-propylene plant based on propane from shale gas. By prioritising China (without advantaged feedstocks), BASF shows how its strategy has shifted.
Local production in China has also become a priority for US electric carmaker Tesla, which this week also chose China over the US as the location for a world-scale factory. China is a huge market for electric vehicles which Tesla will now be able to access on equal terms to local competitors. The latest round of tariffs had forced the company to raise the price of its US-made exports to China by $20,000 per vehicle.
CHINA JVS SWITCH TO WHOLLY-OWNED
China is seizing the opportunity the trade war has brought by implementing rules which allow large investments like these to be 100% foreign-owned. BASF’s new verbund complex will be owned and operated by BASF and Tesla’s new plant will also be independent. Previously local joint venture partners were required, such as the BASF-YPC JV with Sinopec at its Nanjing verbund site.
Opinions vary widely about the impact of the trade war on US shale-based start-ups, some of which are 100% export-oriented. The impending Chinese tariffs against the US include low density polyethylene (LDPE) and linear LDPE (LLDPE).
Houston-based ICIS senior consultant James Ray points out that US ethane-sourced PE producers are so cost-advantaged they could absorb the 25% tariff on their products exported to China and still be profitable. He says the tariffs will impede additional US PE capacity additions, but only temporarily. The ICIS Supply and Demand Database forecasts that as the new capacities come on line, US LDPE exports will increase from 35% of production in 2017 to reach 56% in 2020. For LLDPE the figure goes from 45.5% in 2017 to 65% in 2020.
According to Ray, with US LDPE and LLDPE exports accounting for only 12% and 17% of global exports respectively, “it would seem they could easily find another home for this production.” Exports to China only accounted for 6.9% of US LDPE production in 2017 while the figure for LLDPE was just 0.4%.
Ray believes the current tariff moves by Trump are simply an attempt to redress the current trade imbalance between the US and China. The US has run a trade deficit with China at least since 1985 with the figure rising to over $300bn/year since 2012.
ICIS consultant John Richardson points out that China’s proposed $50bn of tariffs against the US includes a 25% duty on US exports of ethane. At stake could be the viability of 11 Chinese cracker projects that would rely on imports of US ethane. He believes China may invest more in Iran to access alternative feedstocks.
GLOBAL PE PRICE WAR
International eChem chairman Paul Hodges believes the tariffs could lead to a global PE price war, as the wave of new US production will be sent to new markets, most likely Europe.
“This won’t just be a US problem, because they will still want to move their product – it has got to come to Europe, as there is no surplus demand in Asia, the Middle East or Latin America.” The consultant added that this first wave of tariffs were a wake-up call to those who thought globalisation was going to continue as it did in the past. “We have reached a tipping point where we have to expect that trade wars are more rather than less likely,” Hodges said.
https://www.icis.com/resources/news/2018/07/12/10240607/trade-war-means-seismic-shifts-for-chemicals/
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Meet the New Second in Command
Jul 12, 2018 | E&E Greenwire
By Kevin Bogardus
A former Arizona state official brought to EPA by Scott Pruitt to streamline agency operations got a promotion yesterday in the wake of the embattled administrator's departure.
Henry Darwin is taking on the duties of deputy administrator at EPA.
Acting Administrator Andrew Wheeler announced Darwin's move up yesterday in his address to employees. Darwin joined EPA last summer as assistant deputy administrator and chief of operations.
An EPA spokesman told E&E News that while he is serving as acting administrator, Wheeler will be delegating his deputy administrator responsibilities to Darwin.
In his year at EPA, Darwin has been at the forefront of effort framed as making the agency quicker and more effective, measuring its performance with new metrics and instituting the so-called Lean management system. He had done similar work in Arizona as chief of operations for Gov. Doug Ducey (R) and before that as director of the Arizona Department of Environmental Quality (ADEQ).
Pruitt touted Darwin's reforms at EPA as well as his time at ADEQ in an interview last year with The Daily Signal, the conservative Heritage Foundation's news organization.
Pruitt said Darwin had told him that ADEQ under his watch had gone from an agency of 700 employees to 350 but was improving its performance and would better tabulate its results. At EPA, Darwin has set up a "dashboard" to measure the agency's results every day, the former administrator said.
"The Darwin Effect is in full force and we are going to make sure that we achieve accountability," Pruitt said.
Darwin has been an advocate for bringing the Lean system more into play at EPA, speaking to staff about its benefits over the past year.
"The system at its core is designed to keep small problems from becoming big problems," Darwin said in one meeting with EPA employees.
Some employees have worried that Lean could be used to shrink EPA's workforce. But Darwin told E&E News last year that it shouldn't be seen as a precursor to downsizing the agency (Greenwire, Oct. 6, 2017).
"It's about becoming more efficient and being able to perform the work that you do better," he said, "not necessarily with less people."
Stan Meiburg, formerly acting deputy EPA administrator in the Obama administration, said Darwin should be careful how the Lean system is framed for employees.
"It will be much more effective if he resists the temptation to use Lean as a code word for cutting the budget. It should not be: EPA has never had sufficient resources to carry out its mission, and needs all the efficiencies it can find," he said.
Meiburg, who now teaches at Wake Forest University, still considers Darwin a "solid choice" for the deputy job, given his state government experience.
"My sense is that he has been reaching out to the career staff as partners in the management of the agency," he said.
Like other political appointees in the Trump administration, Darwin has had quibbles with the federal agency that now employs him.
At ADEQ, he resisted federal efforts to limit greenhouse gases. Darwin questioned whether EPA has the authority to regulate those emissions under the Clean Air Act as proposed by the Clean Power Plan, according to his written testimony before Congress. Trump's EPA has begun to roll back that Obama-era rule.
Darwin's wife, Veronica Darwin, also works at EPA as a senior adviser for the Office of Land and Emergency Management.
She, too, has Arizona state government experience, having worked at ADEQ as well as at the state's Department of Administration and the Office of Economic Opportunity. She also worked for the EPA Region 9 office as a compliance officer for the Resource Conservation and Recovery Act, according to her resume.
Darwin has said in a recusal statement that he would not take part in "any award, promotion, or any other personnel or administrative matter" that involved his spouse.
In an email released to the Sierra Club under Freedom of Information Act litigation, the couple's excitement in joining EPA was evident. They were trying to find a location to be fingerprinted as part of their background investigations before coming to the agency.
"We are both anxious to get started!" said the email, signed "Henry and Veronica."
Darwin introduced Wheeler for the acting chief's remarks to EPA employees yesterday. The new deputy emphasized that Wheeler wants to hear from all employees, so they should be ready to participate.
"I have seen firsthand how thoughtful and collaborative he is in his approach to issues. In meetings, I regularly see him seek out the opinions of others, career and politicals alike, so be alert," Darwin said, to murmurs in the crowd.
Meiburg offered some advice to Darwin in his new role.
"Focus on the things needed to make a large organization operate effectively in a complex governmental structure, and keep some distance from policy controversies," he said.
"The former role is quite enough of a full-time job."
https://www.eenews.net/greenwire/2018/07/12/stories/1060088925
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Wheeler, in Break with Pruitt, Posts More Detailed Calendars
Jul 12, 2018 | E&E Greenwire
By Maxine Joselow
EPA has released the previous day's calendar for newly minted acting Administrator Andrew Wheeler, in a move toward greater transparency.
That day's schedule and others show Wheeler has held several meet-and-greet sessions with career staffers since starting as deputy administrator in April. He has also met with all 10 regional administrators.
By comparison, former EPA boss Scott Pruitt only visited three regional offices over the course of his tenure, though he may have gathered with all 10 regional heads during a meeting in Dallas earlier this year.
The release of Wheeler's calendars strikes a marked contrast with the status quo under Pruitt, who resigned last week amid a cloud of ethics scandals.
EPA did disclose Pruitt's public schedule — along with those of other top EPA officials — online, but weeks later and with sparse detail (Greenwire, July 9).
The agency was also slow to share Pruitt's private calendar, turning it over only after losing Freedom of Information Act litigation. In addition, EPA is facing allegations that aides changed Pruitt's calendar to hide select meetings.
A federal judge Tuesday ruled EPA did not have to publish on a rolling basis the administrator's schedule, although he recommended voluntary action (Greenwire, July 11).
Since Monday, Wheeler has met staff, journalists, White House aides, lawmakers from both sides of the aisle and the Earth & Water Law Group.Access to chemicals events
Separately, the door continues to creep open for reporters interested in covering EPA discussions related to a class of toxic nonstick chemicals.
The agency today released an early agenda for a community engagement event on per- and polyfluoroalkyl substances (PFAS) in Horsham, Pa.
The event at Hatboro-Horsham High School will be "open to the public and the press," according to an EPA news release.
The communication is a marked contrast from May, when EPA blocked several reporters from a PFAS summit at the agency's Washington headquarters (Greenwire, May 22).
Aides initially barred journalists from the Associated Press, CNN and E&E News from the National Leadership Summit on PFAS. The journalist from AP reported that guards removed her from the building after asking to speak with press officials.
EPA, after a row of negative coverage, has been moving toward greater transparency and access with respect to PFAS since early last month.
On June 11, EPA announced that it would hold a two-day public event on the potentially toxic chemicals in Exeter, N.H. The agency released an advanced agenda a week later.
The agency then announced on June 27 that it would hold three community engagement events on PFAS in Pennsylvania, Colorado and North Carolina.
Concern surfaced earlier this year that the Trump administration had delayed the release of a toxicology study of four PFAS chemicals. EPA had met with industry interests about the chemicals a day after the White House had warned that a health study of them could be a "public relations nightmare" (E&E News PM, May 21).
The draft report from the Department of Health and Human Services' Agency for Toxic Substances and Disease Registry came out late last month.
It showed, as expected, that the chemicals can endanger human health at significantly lower levels than EPA has previously called safe (Greenwire, June 20).'Cautiously optimistic'
Bobby Magill, president of the Society of Environmental Journalists, said he was "cautiously optimistic" about press access under Wheeler, although he noted that President Trump could decide to nominate someone else as Pruitt's permanent replacement.
"I think it's worth celebrating any positive steps they're taking to ensure that reporters gain access to otherwise public meetings," Magill said. "But it's far too early to declare victory."
He added, "We don't know if it's lip service at the moment or whether [Wheeler] actually is reversing some of the onerous — and frankly, abusive — treatment of reporters by EPA."
https://www.eenews.net/greenwire/2018/07/12/stories/1060088913
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Wheeler Lobbied for Coal — and Cheese, Washers, Cars
Jul 12, 2018 | E&E Climatewire
By Mike Soraghan and Corbin Hiar
Andrew Wheeler, EPA's acting administrator, might be best known as a former coal lobbyist. He was also a cheese lobbyist.
And a washing machine lobbyist.
And a used car lobbyist.
Wheeler emphasized some of these non-coal connections when he addressed agency employees yesterday (E&E News PM, July 11).
"I had a number of clients," Wheeler said. "If you read the press, I only had one, but I actually had over 20 clients."
The single company that Wheeler says reporters focus on is Murray Energy Corp., whose leader, Bob Murray, accused former President Obama of waging war on coal. More recently, Murray gave the Trump administration an "action plan" to strengthen the coal industry (Energywire, July 2).
Wheeler represented Murray for his entire time in the private sector, nine years. That's longer than any other client.
He also lobbied for Whirlpool Corp., the maker of dishwashers and other home appliances, with a focus on the Energy Star efficiency program. And he worked on trade issues for Insurance Auto Auctions Inc., which specializes in marketing salvage vehicles, and its parent company, KAR Auction Services.
Another client was Sargento Foods Inc., which describes itself as "the home of real cheese people." It's not clear what Wheeler and his colleagues at Faegre Baker Daniels LLP did for Sargento. The lobby disclosure forms filed by the firm say only that they worked on food and "agriculture-related" issues in 2016 and 2017.
A spokeswoman for Sargento, Portia Young, declined yesterday to explain why the company wanted a lobbying team, except to say the Wisconsin-based outfit has been "building out our government affairs competency since we hired a general counsel to strengthen our legal function in-house."
While running EPA, Wheeler will oversee the regulation and permitting of confined animal feeding operations, such as dairy farms.
Wheeler worked for years on Capitol Hill, mostly for Sen. Jim Inhofe (R-Okla.), the Senate's foremost climate skeptic and a former chairman of the Environment and Public Works Committee. He left nine years ago and joined Faegre Baker Daniels.
Wheeler told EPA employees yesterday that he worked with "different companies, trade associations, some public sector, some private-sector clients, some NGOs. I worked for an air quality management district in California. And I did work for a coal company, and I'm not at all ashamed of the work that I did for the coal company."
Many of his other clients were also from the energy world. He worked for the nuclear industry's trade group, a Colorado uranium mining company and Xcel Energy Inc., the Minneapolis-based utility.
Unlike his predecessor, Scott Pruitt, though, he has few apparent ties to oil and gas production (Energywire, July 9).
Myron Ebell of the Competitive Enterprise Institute said he knows Wheeler best from his work for Murray on coal issues. The positions Wheeler promoted as a lobbyist probably reflect his personal views, Ebell said.
"He's not going to take on clients that he doesn't have some fundamental agreement with," said Ebell, director of the institute's Center for Energy and Environment.
That's the problem, said Craig Holman, a lobbyist for the watchdog group Public Citizen. The companies that paid Wheeler to make their case now have someone on the inside, leaving the public on the outside, he said.
"He will be pursuing the companies' interest," Holman said. "The companies who are regulated by EPA have landed one of their own at the agency."
To Holman, it shows how President Trump's claims about reining in lobbyists ring hollow.
"It really is inflated campaign rhetoric," he said.
Wheeler has pledged to stay away from his former lobbying clients in a recusal statement he filed as deputy administrator. The statement, obtained by E&E News under the Freedom of Information Act, listed eight past clients that might have "environmental interests" that intersect with his duties at EPA.
They were Murray Energy, Energy Fuels Resources Corp., Growth Energy, Xcel Energy, International Paper Co., Martin Farms Inc., Sargento Foods and Underwriters Laboratories.
He lobbied for many more companies than that.
There were Bear Head LNG Corp., which wants to export liquefied natural gas to Canada; chemical maker Celanese Corp.; the Coalition for Domestic Medical Isotope Supply; Darling International Inc., a Texas agribusiness firm; a renewable fuels nonprofit called Domestic Fuel Solutions Group; and Chemours Co. subsidiary ICOR International.
https://www.eenews.net/climatewire/2018/07/12/stories/1060088871
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House Dem Amendment Seeks to Ensure Pruitt Probes Are Completed
Jul 12, 2018 | The Hill - E2 Wire
By Timothy Cama
Two House Democrats have introduced an amendment that seeks to ensure the probes into former Environmental Protection Agency’s (EPA) chief Scott Pruitt are completed.
Under the amendment, the agency would be prohibited from completing any regulatory actions initiated by Pruitt until the investigations into him by the Office of the Inspector General (OIG) are done. The amendment comes under the House’s appropriations bill that would fund the EPA.
“Scott Pruitt’s self-dealing makes all swamp creatures blush. Throughout his tenure at the EPA he never missed an opportunity to exploit his public office for personal gain and the fact that Republicans looked the other way is shameful,” said Rep. Gerry Connolly (D-Va.), who introduced the proposed amendment along with Rep. Don Beyer (D-Va.).
“Allowing the EPA inspector general to continue these investigations unimpeded is a step toward restoring accountability of the Trump cabinet.”
The full House is set to vote on its funding bill for the EPA and Interior Department next week. The House’s Rules Committee would have to declare the amendment from Connolly and Beyer to be “in order” before the House can vote on it.
Pruitt resigned last week amid unrelenting scrutiny for controversies regarding his spending, ethics and management at the agency. The ex-EPA head is under more than a dozen federal investigations.
The OIG, specifically, is looking into allegations that he improperly gave some aides raises, used aides to complete personal tasks like apartment hunting or finding his wife a job, and improperly spent more than $3.5 million in taxpayer money on security for himself.
The OIG is still considering whether to continue the probes after Pruitt’s ousting.
http://thehill.com/policy/energy-environment/396669-dems-amendment-seeks-to-ensure-pruitt-probes-are-completed
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Ewire: Trump Critics Seize on Russian Praise for EPA Asbestos Rule
Jul 12, 2018 | Inside EPA
Environmentalists are stepping up their attack on EPA’s plan for a limited rule governing new uses of asbestos rather than a long-sought ban after a Russian mining company has started branding pallets of the material with President Donald Trump’s face to celebrate that he is “on our side” against more stringent regulations.
Environmental Working Group (EWG) reported in a July 11 blog post, that the asbestos mining firm Uralasbest posted on Facebook June 25 to declare that “Donald is on our side,” according to a translated version of the page, alongside pictures of asbestos pallets wrapped in plastic printed with the president’s face.
It says of Trump, “He supported the head of the US Environmental Protection Agency Scott Pruitt, who stated that his agency would no longer deal with the negative effects that could potentially result from products containing asbestos” – apparently referencing EPA’s June 1 proposal to limit the scope of its Toxic Substances Control Act (TSCA) assessments of asbestos and nine other chemicals to new uses only, precluding consideration of legacy uses or those that are regulated by other agencies.
Environmentalist groups have already charged that the agency’s TSCA assessment plan is illegally narrow, and are using the company’s praise to renew those attacks and push for a full ban, including mandates to remove asbestos where it was installed as an insulator before the substance’s cancer risks were widely known.
“Uralasbest is not wrong about the EPA’s actions. . . . The new TSCA requires the EPA to consider all uses of a chemical when evaluating it for safety. Despite this clear directive, the Trump EPA is ignoring key exposures to asbestos in its safety assessment, likely in violation of the law,” EWG says.
News outlets’ coverage of the clash has included re-upping Trump’s controversial comments on asbestos from before his campaign for the presidency; in 2012, he tweeted that the World Trade Center would have survived the September 11, 2001 terrorist attacks “If we didn't remove incredibly powerful fire retardant asbestos & replace it with junk that doesn't work.”
And the Washington Post wrote to highlight a comment in his 1997 book “The Art of the Comeback,” where Trump “wrote that he believed that anti-asbestos efforts were ‘led by the mob.’”
Those remarks are back in the news just as Andrew Wheeler, in his first public address as the acting EPA administrator, highlighted communicating risks to the public as a key issue for the agency going forward and specifically mentioned the September 11 attacks as a time when it failed to live up to that duty.
https://insideepa.com/daily-feed/ewire-trump-critics-seize-russian-praise-epa-asbestos-rule
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EPA Requests Input on Documents for TSCA Chemical Evaluations, Proposes Asbestos Rule
Jul 12, 2018 | Safety+Health Magazine
The Environmental Protection Agency is seeking comment on problem formulation documents for the first 10 chemicals slated for evaluation for potential health and environmental risks under the Frank R. Lautenberg Chemical Safety for the 21st Century Act, as well as a systematic review approach document and a proposed significant new use rule for asbestos.
An EPA press release calls the problem formulation documents “an important interim step prior to completing and publishing the final risk evaluations by December 2019.” These documents clarify the scope documents published in June 2017, which outline for each chemical the hazards, exposures, conditions of use and subpopulations that may be exposed.
The systematic review document, which may be revised, “includes a structured process of identifying, evaluating and integrating evidence for both the hazard and exposure assessments” previously established under the Toxic Substances Control Act and amended by the Lautenberg Act, EPA states.
The significant new use rule proposal is the first of its kind for asbestos, a known human carcinogen included among the first 10 chemicals to be evaluated, EPA states. The rule would initiate a review process requiring EPA approval for entities seeking to start or resume manufacturing, importing or processing of asbestos for “certain uses identified by EPA as no longer ongoing,” according to the agency.
Uses subject to review include, but are not limited to, adhesives, sealants, and roof and non-roof coatings; arc chutes; millboard; reinforced plastics; roofing felt; and vinyl-asbestos floor tile.
“These actions provide the American people with transparency and an opportunity to comment on how EPA plans to evaluate the 10 chemicals undergoing risk evaluation, select studies and use the best available science to ensure chemicals in the marketplace are safe,” then-EPA Administrator Scott Pruitt said in the release. “At the same time, we are moving forward to take important, unprecedented action on asbestos.”
Document notices were published in the June 11 Federal Register. Comments on the problem formulation and systematic review approach documents are due July 26. Comments on the asbestos significant new use rule proposal are due Aug. 10.
http://www.safetyandhealthmagazine.com/articles/17240-epa-requests-input-on-documents-for-tsca-chemical-evaluations-proposes-asbestos-rule
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(ACC Mentioned) UN Reports Risk 'Oversimplifying EDCs Science', Says ACC
Jul 12, 2018 | Chemical Watch
By Leigh Stringer
The American Chemistry Council says three UN overview reports on endocrine disrupting chemicals risk "oversimplifying the science".
It says they do this by referring to "chemical blacklists, like the NGO-created SIN List and Danish EPA list".
The recently published reports provide a global overview of the initiatives, policies and scientific knowledge around identifying the chemicals. They include a list that, having gone through at least one "thorough scientific assessment", have been identified as (potential) EDCs.
"While working hard to compile and present an array of scientific viewpoints on this issue, UN Environment has unfortunately also included some of the more alarming, decades-old allegations that today's science does not support," the ACC says.
Some of the lists of chemicals referred to do not carry regulatory authority, the trade body says. This is because they have not undergone robust scientific review; been compiled through a weight-of-evidence approach; or been subject to peer and public review and comment.
"As UN Environment notes in the report and on its website, these lists should not be mischaracterised as definitive science on EDCs, or classifications," it says.
Scientists and regulators who engage in risk communication about endocrine disruption "must use accurate and precise characterisations and refrain from applying labels that imply concern, when that concern is not supported by the evidence," it adds.
However, the ACC does say the reports "appear to reflect diverse viewpoints around issues related to endocrine science", which is consistent with the UN advisory group's goal to disseminate information to the global community.
The reports arose from a resolution adopted in 2015 at the International Conference on Chemicals Management (ICCM4). This asked UN Environment to develop and share information on EDCs.
The ACC also says developing countries may find the reports useful for guiding their own policy making.
The European Chemical Industry Council, Cefic, says it is still reviewing them and so could not comment.'Many more EDCs'
NGOs Health Environment Justice and the Center for International Environmental Law (Ciel) have welcomed the three reports.
HEJ's co-director Alexandra Caterbow told Chemical Watch she is pleased the report includes a list of 45 substances and references to others, such as TEDX and the SIN List.
Ciel's staff attorney for its environmental health programme, Giulia Carlini, said her organisation is "looking forward to their dissemination and translation into action".
However, both organistations observed there were many more EDCs and they expected the list to be longer. They highlighted the absence of BPA; Echa's Member State Committee (MSC) identified it in June last year as a substance of very high concern (SVHC), due to its endocrine disrupting properties that cause probable serious effects to human health.
UN Environment has missed an opportunity by not listing more chemicals, because this would help inform governments and stakeholders, Ms Caterbow said.
"It has to be a follow-up task to amend the list with the ones that are clearly EDCs, such as BPA, which should definitely be on the list," she said.
Ms Carlini added that the "non-exhaustive listing of the 45 EDCs" is a start but it will be crucial to expand this in the future.
The first of the three reports says the set of chemicals included is not definitive, and further (potential) EDCs can be included in future efforts to disseminate information.https://chemicalwatch.com/68562/un-reports-risk-oversimplifying-edcs-science-says-acc
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Member States Back EU Phthalates Restriction Proposal
Jul 12, 2018 | Chemical Watch
By Luke Buxton
EU member states have voted unanimously in favour of a proposal to restrict the phthalates DEHP, DBP, DIBP and BBP in articles.
The four phthalates are on the REACH candidate list of SVHCs for their reprotoxic as well as endocrine disrupting properties.
Under the proposal they would be restricted to a concentration equal to or above 0.1% by weight individually or in any combination in any plasticised material in articles used by consumers or those used in indoor areas.
The proposal, which was approved at the REACH Committee meeting on 11 July, takes into account the cumulative effects and combined exposure to the four phthalates from different articles.
Consumers can be exposed to one of these phthalates or to their combination through different sources, the European Commission said. Examples are:ingesting food and dust;placing articles in the mouth;breathing in air and dust indoors; andby dust and articles getting in contact with mucous membranes and skin.
The European Parliament and the Council of Ministers now have three months to scrutinise the measure before its adoption by the Commission.
The restriction will then be published in the EU’s Official Journal and will apply 18 months after the entry into force to products produced both in and outside of the EU.
Prior to the meeting, NGOs called on member states to include food contact materials in the scope of the proposed restriction.
https://chemicalwatch.com/68660/member-states-back-eu-phthalates-restriction-proposal
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Report on Decade of Echa BoA Shows Balanced Outcomes
Jul 12, 2018 | Chemical Watch
By Clelia Oziel
More than 100 decisions adopted by Echa's Board of Appeal over the past decade have demonstrated "balanced" verdicts that have been "widely accepted" by the parties involved in appeal proceedings, according to its annual report to the agency.
Although part of Echa, the BoA is an independent body responsible for deciding on appeals lodged against agency decisions under REACH and the biocidal products Regulation (BPR).
In the past ten years, it has processed 120 appeals, of which 18 remain open. Of the decisions it made, 24.5% were in favour of appellants, with the same number of cases dismissed, the report says.
The remaining 51% of cases were closed following withdrawal of the appeal, either after Echa's executive director rectified the contested decision, or the parties reached an agreement, it said.
Issues dealt with include:46 dossier evaluations, three still open32 registration cases;24 substance evaluation cases.16 cases concerned data sharing under REACH and BPR; andtwo concerned the biocides review programme, both are still open.
Germany reported the most number of cases – 36% of total – followed by UK with 11% and Belgium with 10%.
The report concluded that BoA decisions have helped clarify the interpretation of REACH and BPR and ensured their effective implementation by Echa. The decisions are "widely accepted by stakeholders, provide an effective legal remedy to appellants, and create a safety net to the agency," it said.
The BoA is also a "powerful filter" for avoiding unnecessary litigation before the EU courts, it added. Only three decisions had been challenged before the General Court: one by the appellant, one by a member state, and one by an animal welfare NGO.
The board has also integrated the views of NGOs and animal welfare groups into its proceedings, in line with the stakeholder approach in REACH and the Aarhus Convention on access to information, it said.Annual report
In the current reporting period – 10 June 2017 to 6 June 2018 – the BoA processed 35 appeals, the report said. Of those, 17 were closed with a final decision and 18 are ongoing. The average duration of an appeal is close to 15 months, it said.
In addition to the final decisions, the BoA also adopted many procedural decisions in the past year, the report said.
These included 12 decisions on intervention, two on confidentiality, 11 on stay-of-proceedings decisions, and one decision joining cases.
It was also called to decide upon several new issues. These included:consolidation of a single registration into the joint submission;information requirements on nanomaterials;interaction between REACH and the cosmetics Regulation;whether Echa can request ‘standard information’ during substance evaluation; andthe conditions under which Echa can request further information to clarify persistency properties.
https://chemicalwatch.com/68661/report-on-decade-of-echa-boa-shows-balanced-outcomes
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Envi Presses EU Commission to Toughen up Plastics Strategy
Jul 12, 2018 | Chemical Watch
By Luke Buxton
The European Parliament's Environment Committee (Envi) has called on the Commission to bolster its plastics strategy, by banning microplastics in cosmetics, personal care, detergents and cleaning products by 2020.
In January, the Commission asked Echa to prepare a REACH restriction dossier on the use of intentionally added microplastic particles to all consumer and professional use products, as part of the strategy.
Envi also wants them to impose a ban on oxo-plastics in the same year and set minimum requirements to tackle other sources of microplastics. Under its drive, the Commission asked Echa to work on a REACH restriction proposal for their use, which includes carrier bags and food packaging. They contain additives designed to promote oxidation of the material so that it fragments.
According to the campaign group Rethink Plastic Alliance, oxo plastics, which are "supposedly" biodegradable, "in reality break down into small fragments and contribute to harmful microplastic pollution in the oceans and other ecosystems".
Additionally Envi is urging the EU executive to establish measures to reduce hazardous substances in plastics, to help ensure a successful circular economy.
NGO the European Environmental Bureau (EEB) has previously criticised the Commission’s draft laws for failing to address the presence of hazardous substances used in single-use plastic products.
Rethink Plastic Alliance says Envi has recognised that the Commission’s plans to tackle plastic pollution must be strengthened to protect the oceans. "Today’s vote gives a strong signal that more can and must be done to cut off the flood of plastics at source, and national governments across Europe must rise to the challenge."
The committee backed a March draft report on the plastics strategy by MEP Mark Demesmaeker, at its meeting on 10 July.
The European Parliament will vote on Envi’s response in September.
https://chemicalwatch.com/68664/envi-presses-eu-commission-to-toughen-up-plastics-strategy
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Jul 12, 2018 | Chemical Watch
Testing proposalsEcha has invited third parties to submit scientifically valid information and studies on 11 testing proposals for five substances. The deadline for providing information is 20 August.Call for evidence: perfluorohexane-1-sulphonic acid
Norway is preparing an Annex XV restriction dossier concerning perfluorohexane-1-sulphonic acid, its salts and related substances and is requesting interested parties to submit any information they have to help with its preparation.
The deadline for comments is 22 August, the agency says.Agency publishes new microplastics note
Echa has published a note outlining the identification of microplastics and the steps the agency will take to understand remaining unresolved issues.
The note also elaborates on the relationship between substance identification and the potential scope of possible restriction. The agency aims to conclude its investigation by January 2019.1,2-dichloroethane authorisation granted
The European Commission has granted authorisation for uses of 1,2-dichloroethane by H&R Ölwerke Schindler GmbH and H&R Chemisch-Pharmazeutische Spezialitäten GmbH.
The chemical has been authorised for use as "a solvent and anti-solvent of the feedstock and intermediate product streams in the combined de-waxing and de-oiling of refining of petroleum vacuum distillates for the production of base oils and hard paraffin waxes".
Authorisation was granted because the socio-economic benefits of its use outweigh the risk to human health and there are no suitable alternatives.SDS guide
Echa's interactive guide on safety data sheets and exposure scenarios has been translated from English into 22 European languages. The aim of the guide is to help suppliers and recipients of SDSs compile and understand substance and use information more easily.
https://chemicalwatch.com/68652/echa-round-up
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UK Brexit White Paper Repeats Calls for Echa Participation
Jul 12, 2018 | Chemical Watch
The UK has reiterated its desire for associate membership of Echa in a new Brexit White Paper that sets the government’s vision for a future economic partnership with the EU.
Being an associate member, with active participation and financial contributions– albeit without voting rights – will ensure businesses go through only one approval mechanism to access both EU and UK markets, the paper says.
It will also ensure UK businesses could continue to register chemical substances directly, rather than working through an EU-based only representative.
The paper proposes that all authorisations and registrations completed before the end of the implementation period should continue to be recognised as valid in both the UK and the EU.
The government also says it wants to secure access to relevant IT systems, ensuring the "timely transfer" of data between UK and EU authorities.
"Moreover, any such processes underway as the UK and the EU transition from the implementation period should be completed under existing rules, with the outcomes respected in full," the paper says.
https://chemicalwatch.com/68665/uk-brexit-white-paper-repeats-calls-for-echa-participation
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Canada Adds Triclosan to Toxic Substances List
Jul 12, 2018 | Chemical Watch
By Kelly Franklin
Canada's government has added triclosan and the dye disperse yellow 3 to schedule 1 of the country's Environmental Protection Act (Cepa) – its list of toxic substances.
Their listing will allow the government to develop regulations or other risk management measures if it feels such actions are necessary.
Triclosan is a preservative with a range of consumer uses, including in personal care, non-prescription drug and cleaning products.
It has been added to the toxic substances list, following the November 2016 publication of a risk assessment that found it meets the environmental toxicity criterion set out in section 64 of Cepa. The exposure source of concern is the release of triclosan to surface water via wastewater treatment plant effluents from its use in products.
At that time, the government also issued a proposed risk management approach. This called for reducing the amount of triclosan from products by 30% from 2011 levels.
A revised approach is expected no later than November, with a final instrument planned for May 2020.
These actions are separate from those already in place under the country's Food and Drugs Act (FDA). The Cosmetic Ingredient Hotlist allows a maximum concentration of 0.03% in cosmetic mouthwashes and 0.3% in other cosmetic products. These limits are largely in line with those in Europe and Australia.
In the US, there are no limits on the use of triclosan in cosmetics. But its use in antibacterial hand soaps and body washes has been banned since September last year, after industry failed to demonstrate that it was both safe for daily use and more effective than plain soap and water.Disperse yellow 3
Disperse yellow 3, 141 acetamide, N-[4-[(2-hydroxy-5-methylphenyl)azo]phenyl]-, –also known as solvent yellow 3 – is primarily used in textile facilities in Canada for dyeing polyester, nylon, cellulose fibres and acrylics.
The substance was assessed as part of the aromatic azo and benzidine-based substance grouping under the country's Chemicals Management Plan (CMP). This found that it meets the environmental toxicity criterion set out in section 64 of Cepa.
The government proposed listing it under section 1 last April.
https://chemicalwatch.com/68658/canada-adds-triclosan-to-toxic-substances-list
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Alaska Wants to Drill for Oil and Fight Warming
Jul 12, 2018 | E&E Climatewire
By Kelsey Brugger
Alaska's appetite for oil is as ubiquitous as the state's proliferating examples of a changing climate.
The Arctic is melting faster than anywhere else in the world. Permafrost is thawing and releasing carbon into the atmosphere. Warmer air and ocean water have diminished sea ice. Native villages along the coast are moving inland to flee rising seas.
But climate change is a political issue. Although Alaskans may not dispute the science, they do disagree about what to do about it. After all, oil and gas makes up the vast majority of the state's revenue. After the price of oil plummeted in recent years, oil drillers slowed production, crippling the state's economy.
Now, amid tough economic times, three gubernatorial candidates — one Democrat and two Republicans — are challenging Gov. Bill Walker, an independent who is running for re-election.
Economics are the most important issue in the race, political observers note. And economics are tied to attitudes about climate policies. Every Alaskan is paid a per-person royalty based on the amount of oil sucked out of Alaskan soil. Residents therefore have a direct interest in continued production. This creates a steep challenge for politicians hoping to cut greenhouse gas emissions.
"It's almost schizophrenic," said Beth Kerttula, a Democratic former state legislator who later served as director of the National Oceans Council under President Obama. "You can see climate change immediately. ... At the same time, we have the oil industry in particular wanting to open the [Arctic National Wildlife Refuge] and bringing in more development. I think that has affected our politics in ways that are just very profound."
None of the candidates running to be Alaska's governor opposes oil drilling in the Arctic.
To the left of Walker, Mark Begich, a former Democratic senator who jumped into the race in the eleventh hour, said his position to support oil drilling has stayed the same, adding that some environmentally sensitive places like Bristol Bay should be off-limits. On the right, Mike Dunleavy and Mead Treadwell — Republicans who will face off during next month's primary election — have ardently supported more drilling while at times questioning human's role in global warming.
Faced with salient examples of climate change, Walker convened a task force last year that holds regular meetings throughout the state to gather evidence. It released a draft report in April proposing climate policies, which emphasize adapting to a warming planet over mitigating greenhouse gas emissions.
The task force appears to be a reincarnation of efforts launched by former Alaska Republican Gov. Sarah Palin in 2007, a year before she disavowed human-caused climate change on the presidential campaign trail. Climate hawks lament that in the decade since, actual implementation of climate policies has stalled.
In fact, the politically irreconcilable climate perspectives are even spelled out in the task force's draft report: "The state economy is dependent on natural resource development, including oil and natural gas production," the draft report states. "While these resources are finite and contribute to global greenhouse gas emissions, which are a root cause of climate change, they also support essential government services and as such our ability to adapt and respond."
But beyond oil, there is not much else in Alaska to generate revenue; state lawmakers have blocked a sales tax and income tax.Political climate
Because the governor's race is a three-way contest, the Republican nominee has an advantage as Walker and Begich are competing for many of the same voters.
"The odds are that the Republican wins," said Mike Coumbe, a longtime conservationist and political observer. "If there was betting in Las Vegas, that's the way the bets would be laid. There is still an open question that one of the candidates would pull out, but it seems like the egos are too high."
The Cook Political Report calls the race a toss-up.
In an interview with E&E News, Begich stressed hardships in Alaska. He blames the current administration for failing to diversify the economy. University graduation rates are low. Crime rates are high. People are leaving the state. "We need to be better than these data points," he said.
He further complained that the state Legislature in 2010 set a goal of 50 percent renewable energy by 2025. But it is not on track to achieve that target.
As for Walker's climate task force, Begich said: "When I was mayor of Anchorage, I did not form a task force to work on this issue. We just got busy."
Although he supports oil drilling in the Arctic, Begich said he does not support drilling in environmentally sensitive places such as Bristol Bay. It is the "same reason I don't support mining in Pebble mine," he said. Pebble mine is a controversial gold mine in the Bristol Bay region in the southwest part of the state.
Begich has said over the years that Alaskan Democrats are "different." Support for oil drilling is among the key reasons.
Eight years ago, Begich was named by the environmental group Friends of the Earth one of the "BP Ten," for being among the 10 members of Congress who've received the most money from the oil company shortly after the Deepwater Horizon spill tarnished its reputation. A spokesperson at the time told E&E News: "You can't ask for a better endorsement in Alaska than getting blasted on recycled paper by Friends of the Earth. Oil and gas companies are a major part of Alaska's economy and employ thousands of people in our state" (Greenwire, June 18, 2010).
On the right, Dunleavy, a former state senator, is believed to be the GOP front-runner. Treadwell, a former lieutenant governor, jumped into the race at the last minute. The primary election is Aug. 21.
Dunleavy, the first to contest Walker, criticized the governor's climate change task force at a debate last month. It "would be one thing if we were a smokestack state like Ohio or Pennsylvania, but we're not," he said, according to the newspaper Mat-Su Valley Frontiersman. "We're a resource development state, not a manufacturing state."
He added: "The opportunity in Alaska is amazing. We haven't run out of oil, haven't run out of gas, timber, fish, gold — you name it. Yet the Lower 48 has passed us by, and we're in a malaise. We have folks leaving the state, and [our policies] are drifting farther to the left and pushing us toward becoming a welfare state."
Treadwell has talked about the melting Arctic but has questioned human responsibility. Seeking an endorsement in 2010 from a conservative group, he wrote: "I challenge the argument that man made CO2 emissions are causing significant global warming and I will oppose any costly new regulations that would increase unemployment, raise consumer prices and weaken the nation's global competitiveness" (Climatewire, Aug. 26, 2010).
What's new for this gubernatorial election is that voters are automatically registered to vote when they signed up to receive their annual dividend. Begich said he believes that will help him.Palin's climate legacy
More than 400,000 barrels are produced in the state every day, according to the Alaska Oil & Gas Association, and shipped all over the world.
The state has largely failed to diversify its economy, and oil and gas remain the key economic drivers, explained Jerry McBeath, a retired environmental politics professor at the University of Alaska, Fairbanks. "Time after time we go back to oil," he said. "I don't think it'll be depleted in the next century."
Walker's popularity plummeted last year after he cut the royalties from the state's permanent fund. The fund currently doles out $1,000 to every Alaskan every year. Walker had cut the checks nearly in half to pay for government services.
Last year, shortly after President Trump withdrew from the Paris climate accord, Walker convened the task force to address climate change. Democratic Lt. Gov. Byron Mallott, an Alaska leader of Tlingit heritage, heads the effort. Speaking at an event in Washington this spring, Mallott recalled seeing massive Alaska glaciers as a child, unable to imagine that they would not be there someday.
Mallott said the Walker administration felt a keen sense of responsibility to be engaged on climate change, "regardless of what our federal government did."
The draft policies have emphasized adapting to sinking houses rather than mitigating global greenhouse gas emissions. The task force will present policy recommendations to the governor in September.
Kerttula said she was impressed by the work the task force was doing. "The committee is now working on specific recommendations that I know are really important, such as working with Tribes, bringing back coastal zone management, changing the Stafford Act so communities falling into the ocean can get federal help, supporting ocean observing — teaching kids about what is happening, and aggressively reducing carbon," she wrote in an email.
Others were less enthusiastic.
"It's good to see our state administration facilitating discussion of climate change action. But we've been here before," said Polly Carr, executive director of the Alaska Center. "Alaskans have been talking about climate change since the Palin administration, with little policy and action to show for it."
Palin's administrative order issued in 2007 created a Climate Change Sub-Cabinet to develop recommendations on a number of issues, including reducing greenhouse gas emissions, assessing impacts on vulnerable communities and exploring carbon-trading markets.
But the recommendations never went anywhere, and Palin sharply changed her tune on mainstream climate change science when she became the GOP vice presidential candidate in 2008.
Fast-forward to today, and little progress has been made.
Speaking in Washington, Mallott acknowledged a common attitude in Alaska: The state's emissions are so minor — there are only 750,000 people in the state — that it isn't worth engaging on the issue. "To us, that is the worst kind of attitude," he said. "Every action that we can take no matter how small is important and ultimately beneficial."
But for the politicians running to be Alaska's governor, that doesn't mean oil drilling should stop.
https://www.eenews.net/climatewire/2018/07/12/stories/1060088831
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Scientists Urge Jerry Brown to Halt Oil, Gas Production
Jul 12, 2018 | E&E Greenwire
By Anne C. Mulkern
California must end oil and gas drilling in the state to help meet the goals of the Paris Agreement to limit climate impacts, a group of scientists will tell Gov. Jerry Brown (D) today.
An alliance of 26 climate scientists plans to send a letter to Brown urging him to halt approvals of new oil and gas projects and to develop a "fair plan" to phase out fossil fuel extraction in the state.
It's essential to limit global temperature increase to less than 2 degrees Celsius and ideally less than 1.5 degrees by 2100, the goal of the 2015 Paris Agreement, the group said.
"These actions are grounded in science and are necessary to avoid the worst damages from climate change," the scientists said in the letter. "We urge you to lead the world forward by announcing, before the Global Climate Action Summit in September, that California will confront its own oil and gas production as a critical part of its overall climate policy."
The Brown administration is organizing its Global Climate Action Summit, planned for September in San Francisco. Brown, who was named a special United Nations adviser for subnational governments to last year's climate talks in Germany, is convening the conference with the aim of strengthening governments' commitments to the Paris Agreement (ClimateWire, July 11).
Scientists signing the letter included those from Harvard University; Stanford University; Cornell University; the University of Maryland; the University of Alaska, Fairbanks; the University of California, Berkeley; UCLA; UC Santa Barbara; UC Santa Cruz; and UC San Diego.
The Center for Biological Diversity (CBD) said California is one of the nation's top oil-producing states and that 75 percent of the oil produced in the Golden State is as "at least as carbon-intensive as Canada's tar sands crude."
Brown's regulators have issued permits for more than 20,000 new oil and gas wells since the governor took office in 2011, CBD said. It cited a May report from an alliance of environmental and other groups.
New approvals of fossil fuel projects lock-in carbon emissions for decades, the scientists said.
"We cannot afford to wait any longer to place science-based limits on fossil fuel extraction," the letter said. "While we appreciate the significant political challenges inherent in championing any climate policy, allowing continued unabated fossil fuel extraction will prevent the world from meeting the Paris climate targets."
The group announced the letter on the same day that the California Air Resources Board said that the state has met its 2020 emissions cut goal, to reduce climate pollution to 1990 levels (Climatewire, July 12).
Asked about that, Shaye Wolf, CBD's climate science director, said that "California's climate policies address only fossil fuel consumption, turning a blind eye to the state's own dirty fossil fuel production."
"California must address both sides of the fossil fuel equation to meet the Paris climate goals and protect communities saddled with dangerous drilling operations," Wolf said in an email.
Brown had not received the letter as of publication. His media office declined comment. Brown has said previously he had a goal of "reducing petroleum usage up to 50 percent — or as close as we can get."
"But I would say that as long as Californians are going to drive 332 billion miles a year and consume 14 billion gallons of gasoline and 4 billion gallons of diesel — 4 billion gallons of that — we're going to have to have a plan that is comprehensive," Brown said in 2016 (Energywire, March 7, 2016). He called for a plan to be "implemented consistently over time and that deals with all the issues and not just a subset."
"As long as these cars are moving — and as we speak, protesters and non-protesters are burning up gasoline that is being shipped from Iraq, from Russia, from Venezuela and all sorts of other places and coming in on trains," Brown added at the time. "So whatever we don't do here, we are going to get from somewhere else until we can get that moratorium on driving, which I haven't heard proposed yet by anybody."
https://www.eenews.net/greenwire/2018/07/12/stories/1060088891
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Oryx Gauging Interest in More Crude Oil Takeaway from Permian Delaware
Jul 12, 2018 | Natural Gas Intelligence
By Carolyn Davis
Oryx Midstream Services II LLC is testing support for more crude oil transportation services from the Permian Basin’s Delaware formation.
Operating subsidiaries are holding a joint binding open season through Aug. 9 to gauge support for a previously announced regional crude oil gathering and trunk line transportation system to serve the liquids-rich Delaware, which runs through West Texas and into southeastern New Mexico.
“The new system extension and storage footprint allow us to provide crude oil segregation and connectivity for our customers in the Texas and New Mexico areas of the northern Delaware Basin to multiple takeaway options, providing the flexibility and market opportunities they need to maximize the value of their production,” said Oryx CEO Brett Wiggs.
Last September the Midland, TX-based operator began building a 220-mile pipeline system to serve the Delaware, with initial capacity of up to 400,000 b/d. Based on customer demand, Oryx expanded the scope of the original project to include additional capacity and a larger footprint across the Delaware.
The new system would run 400 miles, with about 650,000 b/d of throughput capacity and more than 1.5 million bbl of storage capacity. The system would serve New Mexico’s Lea and Eddy counties and the West Texas counties of Loving, Reeves, Ward, Winkler and Culberson.
The regional transportation pipeline, set to be fully commissioned later this year, would connect Oryx’s Carlsbad station to the Crane and Midland market hubs. The entire system is expected to be completed before mid-2019.
When completed and combined with assets that are operated by Oryx Southern Delaware Oil Gathering and Transport LLC, the midstream operator’s Delaware system capacity is forecast to exceed 850,000 b/d.
http://www.naturalgasintel.com/articles/115028-oryx-gauging-interest-in-more-crude-oil-takeaway-from-permian-delaware
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U.S. Supreme Court Nominee Brett Kavanaugh Likely to Limit Regulatory Authority
Jul 12, 2018 | Chemical & Engineering News
By Jeff Johnson
If confirmed to the U.S. Supreme Court, U.S. District Judge Brett M. Kavanaugh will be reliably conservative and show deference to presidential power, legal scholars say. He is also likely to limit authority of regulatory agencies such as the EPA and OSHA.
Kavanaugh has served for 12 years on the D.C. Circuit Court of Appeals. He has voiced skepticism about the validity of several key environmental laws. Among them is the Clean Power Plan, which seeks to reduce carbon dioxide emission from coal fired power plants, notes Ann Carlson, a UCLA law school professor and environmental law expert. Kavanaugh also voted to strike down the Clean Air Interstate Rule, which regulates cross border pollution from power plants—a decision that was later overturned by the Supreme Court, Carlson adds.
She and many other environmental attorneys expect Kavanaugh to recognize the importance of environmental problems but not to turn to the courts or even EPA for their solution. “Judge Kavanaugh, in other words, may believe that global warming is a real problem, but he’s not going to recognize EPA’s power to do much at all to regulate greenhouse gases,” Carlson says.
Similarly, in a 2013 district court opinion, Kavanaugh sought to limit OHSA’s authority to regulate workplace safety, according to Jordon Barab, a former OSHA deputy administrator. In a blog, Barab notes that Kavanaugh was in the minority on a decision backing an OSHA citation and new safety requirements following the death of a Sea World trainer. Kavanaugh argued the fine and regulations were “arbitrary and capricious” as the trainer had accepted the risk of death as part of her job and OSHA had no legal authority to regulate dangerous entertainment.
The other justices disagreed, pointing out that Sea World was indeed covered by OSHA and the law creating OSHA puts the duty on employers to create a safe workplace, not on employees to choose whether to accept death as part of the job.
https://cen.acs.org/policy/regulation/US-Supreme-Court-nominee-Brett/96/i29
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Watchdogs Fear Kavanaugh Would Hamstring Environmental Suits
Jul 12, 2018 | E&E Greenwire
By Amanda Reilly
President Trump's Supreme Court nominee, Brett Kavanaugh, has shown "troubling tendencies" toward shutting the courtroom door on citizens and advocacy organizations by throwing out cases on procedural grounds, watchdog groups say.
A judge on the U.S. Court of Appeals for the District of Columbia Circuit for 12 years, Kavanaugh was nominated this week to replace the retiring Justice Anthony Kennedy.
Kavanaugh has made decisions "cutting off access to the courts by establishing principles — especially principles related to standing and rules that define when a person can bring a claim in a court of law — that are barriers to the public, to communities, to workers," said Patrice Simms, vice president of litigation at Earthjustice.
To bring a lawsuit against the government, a party must show that it has sustained or will sustain direct and concrete injury, and that the harm can be redressed by a favorable court action.
During a conference call yesterday, environmentalists pointed to a pair of decisions that Kavanaugh joined in a lawsuit challenging a federal requirement that new cars have warning systems for tire underinflation.
"We know that Kavanaugh is a danger for his record," said Michael Brune, executive director of the Sierra Club.
In the 2007 and 2008 rulings, a D.C. Circuit panel found that neither tire manufacturers nor Public Citizen had standing to bring a suit arguing that the standards were too weak.
The court found that tire manufacturers lacked standing because the rule involved automakers. Any underinflation in tires was actually a "self-inflicted injury" to tire manufacturers — not an injury caused by the government's action.
As for Public Citizen, the court found that its claims were "remote and speculative" and that the group had not met its burden to demonstrate injury.
"Kavanaugh said that, despite the fact the underlying statute was intended to protect drivers on the road by imposing safety standards on cars and trucks, that people who were regularly on highways and were members of the organization could not bring a case to get the agency to regulate more stringently to make the roadways safer," Simms said.
On the other hand, Kavanaugh last year authored an opinion reviving a lawsuit brought by lumber manufacturers over critical habitat for the northern spotted owl (E&E News PM, April 11, 2017).
He overturned a district court decision that the companies lacked standing to sue over the Obama administration's designation of more than 9.5 million acres for the threatened species. The lower court based its decision on a D.C. Circuit ruling that some of the same parties lacked standing to challenge a Bureau of Land Management decision on federal timber contracts.
But Kavanaugh wrote that the Fish and Wildlife Service's argument that the designation won't decrease the timber available for companies to harvest "defies basic common sense."
"The decrease in the timber supply is likely to be significant," Kavanaugh wrote. "After all, we are talking about an area roughly twice the size of the state of New Jersey, much of which could previously be harvested for timber but which is now substantially off-limits to logging."Kavanaugh vs. Kennedy
Kennedy was the deciding vote in the 2007 landmark climate change case Massachusetts v. EPA, in which the Supreme Court found that EPA had the authority to regulate greenhouse gases under the Clean Air Act.
In the decision, Kennedy agreed with the court's liberal wing that states had standing to sue because they occupied a "quasi-sovereign" role with interests in their citizens and the environment within their borders.
"I think that the area where you have the most daylight between Justice Kennedy and a would-be Justice Kavanaugh is probably in standing because Kennedy is not a standing hawk," said John Elwood, a partner at law firm Vinson & Elkins LLP.
"By all accounts, Judge Kavanaugh is a standing hawk," Elwood said. "And he never would have joined Massachusetts v. EPA, its discussion of standing."
Simms of Earthjustice said he worried that a host of seminal environmental law cases would never have reached the merits stage if Kavanaugh had been on the Supreme Court.
"Just imagine if those cases could never happen," he said, "not because the judge said you didn't agree with the reading of the statute, not because there's a disagreement over whether the agency involved actually had broken the law, but merely because people could not make their way through the courtroom door."
During his confirmation process, environmentalists raised similar concerns about Justice Neil Gorsuch's record on the 10th U.S. Circuit Court of Appeals (Greenwire, Feb. 7, 2017).
Like most environmental groups, Earthjustice has urged senators to vote against Kavanaugh's confirmation.
But the National Wildlife Federation this week took a more measured tone in a statement that did not explicitly oppose his nomination.
"The National Wildlife Federation urges the U.S. Senate to carefully study Judge Kavanaugh's record and evaluate his commitment to upholding the strong wildlife and environmental protections that Congress has passed to protect the health of our communities and wildlife habitat," said Collin O'Mara, the group's president and CEO.
Kavanaugh continues to meet with senators on Capitol Hill. Today's schedule includes West Virginia Republican Shelley Moore Capito.
https://www.eenews.net/greenwire/2018/07/12/stories/1060088905
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Will Wheeler Support a Climate Treaty? Backers Cross Fingers
Jul 12, 2018 | E&E Climatewire
By Jean Chemnick
Proponents of a U.N. agreement to phase out coolants and refrigerants that contribute to global warming hope EPA's change of leadership will help grease the skids for U.S. ratification.
Andrew Wheeler, the acting head of EPA, has the Washington, D.C., experience that his predecessor lacked, and industry representatives who have waited for over a year for the administration to send the Kigali Amendment to the Senate for approval hope his lobbying background will lead him to support the landmark climate measure. The global deal on hydrofluorocarbons, or HFCs, is widely backed by U.S. industry.
"Just generally, people who tend to be of Washington and have worked here and have the type of experience he has tend to see the value of agreements where there's broad support from all sectors that would be both business-friendly, trade-friendly and environmentally friendly," said Frank Maisano, a partner in Bracewell LLP who works with industry groups supporting the HFC amendment to the Montreal Protocol.
Durwood Zaelke, president of the Institute for Governance & Sustainable Development, said that Wheeler differs from former EPA Administrator Scott Pruitt, whom he described as a "purist" on environmental issues, reflexively skeptical of anything that smacks of climate action.
"Wheeler's more of a pragmatist," Zaelke said.
The White House has taken the lead in the interagency process to consider whether to submit the deal for the Senate's advice and consent. President Trump's international energy adviser, Wells Griffith, and domestic energy adviser, Francis Brooke, have held stakeholder meetings on the issue recently.
But the process also includes EPA, which would develop domestic regulations on HFCs if the Kigali Amendment were accepted. Proponents of the deal who have briefed administration officials say Pruitt's EPA was an obstacle. They hope Wheeler has a different outlook.
The Kigali Amendment has a broad constituency. It's as popular with the heating and cooling industry that would comply with it as it is with environmentalists. That's rare for a treaty that requires mandatory action.
When former Secretary of State John Kerry brought home the HFC amendment nearly two years ago from the Rwandan capital, environmentalists like Zaelke said it could help the world avoid 0.5 degree Celsius in warming — or even more, if it comes with improvements in appliance efficiency. That's a significant down payment on the Paris Agreement's goal of limiting warming to well below 2 C. The amendment is poised to take effect worldwide, even without U.S. ratification.
Industry representatives say there's no downside to joining the deal for U.S. manufacturers, which largely pioneered the climate-friendly alternatives that would replace HFCs.
Until February, the White House process was helmed by energy adviser George David Banks, a strong booster of Kigali who has since departed from the Trump administration. Banks appealed directly to industry by making an economic case for joining Kigali, noting Trump's focus on jobs.
The Air-Conditioning, Heating and Refrigeration Institute and the Alliance for Responsible Atmospheric Policy responded in April with an analysis estimating that the United States could create 33,000 jobs by joining the deal. Industry groups also warned that failing to ratify the deal could saddle U.S. manufacturers with penalties and market barriers.
It would also cause the U.S. industry to lose its lead on developing HFC substitutes, said Banks.
"The real issue here for U.S. industry, if it's not ratified, it has a negative impact on their ability to capture global market share," said Banks, now executive vice president at the American Council for Capital Formation. "The U.S. has competition."
Supporters of the Kigali Amendment spearheaded three letters in the last two months, including one by 13 Republican senators who might help the deal clear the two-thirds vote hurdle to ratification. But Myron Ebell, a senior fellow at the Competitive Enterprise Institute, countered early this month with a letter of his own, arguing that consumers and businesses that buy new products might be left paying higher prices if the amendment is approved.
"Our position opposing Kigali and similar crony capitalist proposals has been strengthened by having Mike Pompeo as secretary of State, Larry Kudlow as head of the National Economic Council and John Bolton as head of the National Security Council," he said in an interview this week, adding that they wouldn't side with "corporate welfare seekers" over American consumers.
https://www.eenews.net/climatewire/2018/07/12/stories/1060088833
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State Emissions Reach Milestone — 1990 Levels
Jul 12, 2018 | E&E Climatewire
By Debra Kahn
California has reached its greenhouse gas target of 1990 levels four years early, regulators announced yesterday.
The state's 2016 emissions came in at 429.4 million metric tons of carbon dioxide equivalent — just under the 2020 target of 431 million tons, indicating the state is well on track to meeting its more ambitious target of 40 percent below 1990 levels by 2030.
It's the first time the state's emissions have dropped below 1990 levels since they peaked in 2004; last year's inventory, of 2015 emissions, found the state was at 440 million tons. The difference between the 2004 peak and 1990 levels is roughly equivalent to the annual emissions of 12 million cars.
"California set the toughest emissions targets in the nation, tracked progress and delivered results," Gov. Jerry Brown (D) said in a statement.
The drop is good news for Brown, who is hosting a climate summit in September aimed at strengthening governments' commitments to the 2015 Paris Agreement that President Trump repudiated last year.
"It's good news for the state and the planet as we head into the governor's summit," said Chris Busch, director of research at advisory firm Energy Innovation.
Power-sector emissions declined significantly in 2016, while transportation emissions ticked up slightly, by 2 percent, to make up 41 percent of the state's total emissions. The 18 percent decline in electricity emissions was partly due to the return of hydropower after the state's historic drought. Buildings' emissions increased 1.5 percent, while industrial emissions fell 2 percent.
Per capita, Californians emitted 10.8 metric tons in 2016, down from a 2001 peak of 14 tons per person. That's about half the national average, the California Air Resources Board said. The inventory doesn't include catastrophic, accidental releases like the 2.5-million-ton leak from the Aliso Canyon natural gas storage facility in 2015 and 2016.
https://www.eenews.net/climatewire/2018/07/12/stories/1060088835
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