ACC PM 19/07/18

Industry and Association News

1. (ACC Mentioned) Latest $200bn US Tariff List Includes Chemicals

   Jul 19, 2018 | ICIS

   By Al Greenwood
   
   
   Several chemicals are included in the $200bn worth of tariffs that the US may impose on Chinese imports in the latest escalation of the trade war between the two countries.
2. (ACC Mentioned) Groups Unite Against US EPA 'Science Transparency' Proposal

   Jul 19, 2018 | Chemical Watch

   By Kelly Franklin
   
   
   A wide array of groups – including medical associations, state attorneys general, scientific societies, academics and consumer and environmental advocates – have called on the US EPA to withdraw its 'science transparency' proposal.
3. Wheeler Talks About Risks, but Critics Say He's Ignoring Them

   Jul 19, 2018 | E&E Climatewire

   By Niina Heikkinen
   
   
   Andrew Wheeler says he wants to improve how EPA communicates risk, but critics contend the agency's actions are sending the opposite message to the public.
4. SC Johnson Expands Level of Product Fragrance Disclosure

   Jul 19, 2018 | Chemical Watch

   By Tammy Lovell
   
   
   US cleaning products giant SC Johnson has revealed the fragrance ingredients in its worldwide products down to 0.01% of content.
5. Gas Group Pushed for Science Advisory Board Member

   Jul 19, 2018 | E&E Climatewire

   By Scott Waldman
   
   
   Ex-EPA Administrator Scott Pruitt selected a new member for EPA's influential science advisory board after a natural gas group lobbied on his behalf, according to emails released this week.
6. Formaldehyde Fears Complicated Search for Pruitt's Desk, Emails Show

   Jul 19, 2018 | PoliticoPro

   By Annie Snider
   
   
   EPA Administrator Scott Pruitt's staff sought to protect him from exposure to toxic formaldehyde from an office desk last year, emails show — just months before his top political aides blocked the release of a report on health dangers from the same chemical.

LCSA News

7. NGOs Seek Comment Extension on TSCA 'Problem Formulations'

   Jul 19, 2018 | Chemical Watch

   Four environmental groups are requesting the US EPA extend its comment period on the TSCA ‘problem formulations’ for the first ten substances subject to risk evaluation under the updated law.

Chemical Management News

8. (ACC Mentioned) OECD Makes GHS Mandatory for Member States

   Jul 19, 2018 | Chemical Watch

   By Leigh Stringer
   
   
   The OECD has made it mandatory for member countries, and those in the process of becoming so, to implement the UN's Globally Harmonized System of classification and labelling of chemicals (GHS).
9. BPA May Worsen Inflammatory Bowel Disease, US Study Says

   Jul 19, 2018 | Chemical Watch

   Bisphenol A (BPA) may affect microbial amino acid metabolism in the gut thereby worsening the symptoms of inflammatory bowel disease (IBD), according to researchers from Texas A&M university, US.
10. Cosmetics Giant L’Oréal to Eliminate PFASs in Products

    Jul 19, 2018 | Chemical Watch

    By Tammy Lovell
    
    
    French brand L'Oréal has become the latest of six large cosmetics companies to commit to eliminating per- and polyfluoroalkyl substances (PFASs) in its products, since December last year.
11. CW Report Highlights Main Messages from Helsinki Chemicals Forum

    Jul 19, 2018 | Chemical Watch

    Supporting developing nations in the context of the Strategic Approach to International Chemicals Management (Saicm) and its "beyond 2020 process", and how to effectively convey risk from endocrine disruptors were just some of the key topics of the 2018 Helsinki Chemicals Forum (HCF), held in June.
12. UK 'No-Deal' Brexit Chemicals Plan Due in Autumn

    Jul 19, 2018 | Chemical Watch

    By Luke Buxton
    
    
    The UK’s environment ministry (Defra) is working on a "large and detailed" draft of a statutory instrument to transfer the "responsibilities and operability" of Echa to a UK agency in the event of a no-deal Brexit scenario.
13. UK HSE Issues Brexit Advice to Chemicals Industry

    Jul 19, 2018 | Chemical Watch

    The UK's Health and Safety Executive (HSE) has updated its Brexit webpages with advice for Britain's chemicals industry, including in the case of no agreement being reached with the EU.
14. Echa Round-Up

    Jul 19, 2018 | Chemical Watch

    Echa has issued a call for evidence on perfluorohexane-1-sulphonic acid, its salts and related substances.

Energy News

15. Saudi Aramco in Talks to Buy Stake in Petrochemical Firm

    Jul 19, 2018 | The Wall Street Journal

    By Summer Said
    
    
    Saudi Aramco Thursday said it’s in early talks to buy a stake in one of the world’s largest petrochemical companies, an acquisition that would boost the state-run oil giant’s downstream operations even as the future of its proposed initial public offering remains in doubt.
16. 5 Main Competitors to U.S. LNG Dominance

    Jul 19, 2018 | E&E Energywire

    By Nathanial Gronewold
    
    
    The United States is rapidly increasing its exports of liquefied natural gas.
17. Oil & Gas Producers Urge EPA To Scale Back Audit Policy For New Owners

    Jul 19, 2018 | Inside EPA

    By Dave Reynolds
    
    
    Oil and gas producers are urging the Trump Administration to scale back EPA's draft self-audit policy intended to streamline disclosure of non-compliance for new owners, arguing that the proposal would rely on measures outside the agency's statutory authority and that compliance with similar state policies should satisfy federal regulators.
18. Democrats Dissent as FERC Approves Gas Projects

    Jul 19, 2018 | E&E Greenwire

    By Sam Mintz
    
    
    The Federal Energy Regulatory Commission acted today on several proposed natural gas pipelines — including two notable New York projects — at its last public meeting before the departure next month of Republican Commissioner Robert Powelson.
19. Oil, Gas Industry Frustrated by Rejections to Steel Tariff Exemptions; Permian Pipeline Affected

    Jul 19, 2018 | Natural Gas Intelligence

    By Charlie Passut
    
    
    Officials with the American Petroleum Institute (API) said their member oil and gas companies are frustrated with the process that the Trump administration established to request exemptions to tariffs on imported steel, with several petitions -- including one for a pipeline to service the booming Permian Basin -- already rejected on vague grounds.
20. Regulators Hatch Plan to Improve Gas Without More Pipelines

    Jul 19, 2018 | E&E Energywire

    By Saqib Rahim
    
    
    New York has already begun to make grid upgrades that don't use wires. Now it's looking to make gas-system upgrades without pipelines.
21. Colorado Governor Addresses Orphan Well Safety in Wake of 2017 Home Explosion

    Jul 19, 2018 | Natural Gas Intelligence

    By Richard Nemec
    
    
    Colorado Gov. John Hickenlooper on Wednesday signed an executive order to address safety concerns surrounding 260 orphan wells and 360 orphan sites, a direct result of the review ordered last year following a flowline explosionthat killed two people in Firestone, CO.
22. TransCanada Gas Line Returns to Service After Explosion

    Jul 19, 2018 | E&E Energywire

    By Jenny Mandel
    
    
    Pipeline operator TransCanada Corp. returned its Leach XPress natural gas line to service this week after an explosion shut it down in June, but the company has not publicly responded to a report by safety regulators that other points on the line may be vulnerable to the same danger.

Chemical Security News

23. Rolling Back Chemical Security Regulations is Risky Business (Opinion)

    Jul 19, 2018 | Houston Chronicle

    By Stephanie Thomas and Juan Parras
    
    
    First with scandalous Scott Pruitt and now former coal lobbyist Andrew Wheeler at the helm of the U.S. Environmental Protection Agency, the foxes are having a feast in the henhouse.
24. New York Steam Pipe Blast Raises Asbestos Contamination Worry

    Jul 19, 2018 | Reuters (In The New York Times)

    By Peter Szekely and Tea Kvetenadze
    
    
    An early-morning steam pipe explosion on Thursday in New York, that sent a plume of vapor spewing into the air for hours, caused only minor injuries but may have left people and building facades contaminated with asbestos, officials said.
25. DHS, White House Diverge on Russian Threat

    Jul 19, 2018 | E&E Energywire

    By Blake Sobczak
    
    
    The Department of Homeland Security is kicking off a series of briefings this month on Russian cyberthreats to U.S. infrastructure networks, even as President Trump has seesawed on the urgency of the threat.

Transportation and Infrastructure News

26. DHS Spending Bill Heads for House Markup

    Jul 19, 2018 | Politico

    By Stephanie Beasley
    
    
    The House Appropriations Homeland Security Subcommittee is slated to mark up a $51.4 billion DHS spending bill today.
27. Port Security Program in Chicago to Focus on Maritime Environment’s Physical & Cyber Threats

    Jul 19, 2018 | American Journal of Transportation

    21st century seaports are faced with a seemingly endless list of urgent physical threats, ranging from acts of terrorism, energy supply disruptions and border protection, to smuggling illegal drugs and weapons.

Environment News

28. House Passes Anti-Carbon Tax Resolution in Landslide

    Jul 19, 2018 | Houston Chronicle

    By James Osborne
    
    
    House Republicans easily passed a resolution Thursday declaring that a national tax on carbon dioxide emissions would be "detrimental" to the U.S. economy.
29. Ewire: House Approves Anti-Carbon Tax Resolution

    Jul 19, 2018 | Inside EPA

    The House on a mostly party-line vote has approved a non-binding resolution declaring carbon taxes to be “detrimental” to the economy, though with only a handful of Republicans refusing to support the measure, the GOP remained overwhelmingly opposed to such policy.

Industry and Association News

1. (ACC Mentioned) Latest $200bn US Tariff List Includes Chemicals

   Jul 19, 2018 | ICIS

   By Al Greenwood

   Several chemicals are included in the $200bn worth of tariffs that the US may impose on Chinese imports in the latest escalation of the trade war between the two countries. The US will hold hearings on 20-23 August before imposing a 10% duty on the items in the list.

   The list is massive, exceeding 6,000 products It includes several industrial chemicals such as olefins, aromatics, alcohols, acetyls, acrylics, anhydrides, glycols and glycol ethers.

   Nitrogen fertilizers and surfactants are included as well as caustic soda and titanium dioxide (TiO2). While elastomers are listed, no polyolefins were included.

   For many products like ethane, none are imported by the US. Still, the inclusion of so many chemical products on the US list shows that the sector is becoming increasingly exposed to the trade war.

   The US has already imposed 25% tariffs on several Chinese products, most of which are machines and industrial tools. China responded with its own set of retaliatory tariffs on US products, which targets soybeans and other agricultural goods.

   The US could move forward on a second set of tariffs on $16bn worth of goods, many of which are polyolefins and other polymers. China responded with its own second set of tariffs that also targets several polymers.

   The latest tariffs from the US would be on top of all of the other duties that have been adopted or imposed.

   “The Administration’s announcement of a potential 10% tariff on $200bn of additional imports from China, including a significant amount of chemicals, is a stunning and unfortunate development for US manufacturers and consumers. Unilateral actions that alienate long-standing US allies and close off the US 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,” said the American Chemistry Council (ACC), which also urged the US administration to “create a strong, multilateral coalition to bring an end to this unnecessary trade war”.

   China on 16 July filed a complaint against the US at the World Trade Organization (WTO) over the decision to place tariffs on an additional $200bn of exports to the country.

   The statement from China’s Ministry of Commerce (MOFCOM) comes less than a week after the US announced plans to levy a 10% tax rate against a raft of Chinese exports to the US, the latest tranche of punitive trade charges placed on the country.

   Authorities at MOFCOM expressed shock last week at the new sanctions, which the ministry described in a statement as “trade bullying”.

   The latest measures follow the imposition of 25% tariffs on $34bn worth of Chinese imports to the US, which prompted a similar response from China. Another round of US 25% tariffs on $16bn in Chinese imports is pending, with Chinese retaliatory tariffs of 25% on $16bn of US imports waiting in the wings.

   But China has limited options available to respond to the scale of punitive tariffs the US may impose, according to analysts, which could stretch to cover $500bn of exports.

   Click here to see the list of chemicals in the latest proposed $200bn of US tariffs against China

   Click here to view related stories and content on the US-China trade war landing page

   Additional contribution by Joseph Chang

   https://www.icis.com/resources/news/2018/07/19/10243126/latest-200bn-us-tariff-list-includes-chemicals/
   

   Return to headline | Return to top

2. (ACC Mentioned) Groups Unite Against US EPA 'Science Transparency' Proposal

   Jul 19, 2018 | Chemical Watch

   By Kelly Franklin

   A wide array of groups – including medical associations, state attorneys general, scientific societies, academics and consumer and environmental advocates – have called on the US EPA to withdraw its 'science transparency' proposal.

   The comments came in a 12-hour hearing hosted by the EPA in Washington, DC, on its proposed rule: Strengthening transparency in regulatory science. Formally issued in April, it seeks to ensure the studies, models and analyses the agency uses to underpin its regulatory decisions are "available to the public for validation".

   But the proposal has been met with vocal opposition from a wide range of groups since news of it first broke. And the majority of testimony heard from more than 100 stakeholders reiterated concerns with the "flawed and misconceived" approach.

   "In the name of transparency, it would burden EPA scientists with unnecessary and costly procedures that run counter to the agency's longstanding obligation to base public health decisions on the best available science," testified Bob Sussman, of Safer Chemicals, Healthy Families.

   Multiple speakers raised concern that the proposal would create issues around the confidentiality of medical records and study participant data. And some raised fears that the approach could have a "chilling effect" on science itself, if study participants had to be informed that their data could be made public.

   Jennifer McPartland, senior scientist at the Environmental Defense Fund (EDF), said the proposed ban on scientific studies where all underlying data is not made public would "effectively bar the agency from using high quality scientific research in setting public health safeguards".

   In a blog post, she said this could directly threaten – among other activities – the EPA's proposed bans on certain uses of trichloroethylene and methylene chloride, as these rely on science that was peer reviewed, but not available publicly.

   The EDF was one of many organisations that urged the agency to withdraw the rule.Support

   Despite these concerns, some in industry spoke in favour of certain aspects of the proposal.

   The American Petroleum Institute's (API) Ted Steichen said the trade group believes data and analysis underlying regulatory decisions "should be transparent and reproducible, and available as early as possible in the rulemaking process".

   Kimberly White testified on behalf of the American Chemistry Council's (ACC) formaldehyde panel in support of the proposal's consideration of non-linear dose-response modelling.

   Dr White also highlighted the need for increased transparency, citing past experiences where the group had "considerable difficulty in understanding what data is being relied on and how the agency has ensured the highest quality and most relevant science is informing its decisions.Road ahead

   Beyond the hearing, more than 200,000 comments have been submitted to the public docket. More continue to stream in ahead of the 16 August deadline.

   Speaking to Chemical Watch after the hearing, Veena Singla, associate director of science and policy with the University of California at San Francisco's programme of reproductive health and the environment, said that she "would certainly hope" the EPA would change course based on the stakeholder feedback.

   "I can't really predict what [the EPA] may or may not do, but I think the comments... really lay out the evidence that this rule is scientifically and technically flawed and should not move forward", she said.

   https://chemicalwatch.com/68840/groups-unite-against-us-epa-science-transparency-proposal
   

   Return to headline | Return to top

3. Wheeler Talks About Risks, but Critics Say He's Ignoring Them

   Jul 19, 2018 | E&E Climatewire

   By Niina Heikkinen

   Andrew Wheeler says he wants to improve how EPA communicates risk, but critics contend the agency's actions are sending the opposite message to the public.

   EPA's new acting administrator told staff last week his "most important" goal is to better explain potential threats to human health.

   Opponents of the Trump EPA say Wheeler's public commitment contrasts to agency actions taken by ex-EPA Administrator Scott Pruitt in recent months. That includes Pruitt's proposal to change how the agency develops rules to regulate pollutants, which critics argue would undermine assessments of public health risks. They say the agency is also using its authority to take more limited action to restrict harmful pollutants like toxic chemicals.

   "I think there is something mildly ironic about his singling out risk communication, when he has just finished his tenure working for a principal in Scott Pruitt, who has all but rebranded EPA as an agency hostile to science," said Joseph Goffman, a former top official in the Obama EPA who's now executive director of Harvard Law School's Environmental Law Program.

   "It's a classic bait-and-switch move for an administration that is hell-bent and determined never to impose an obligation on industry to ever do anything on pollution," he added.

   Wheeler comes into EPA as acting administrator after months of turmoil, where the agency's work was often overshadowed by news reports of exorbitant spending and ethical missteps from the former administrator. Wheeler's emphasis on improving risk communication after major events is seen by some agency observers as a public relations effort to help restore trust in the agency.

   At the same time, the temporary head of the agency is tasked with advancing Pruitt's plans to shift which research can go into rulemaking, and alter how the costs of imposing rules are weighed against their environmental and public health benefits. Those changes are deeply unpopular with scientific, public health and environmental groups, whose leaders accuse EPA of undermining public health and environmental benefits of curtailing various pollutants, including greenhouse gases.

   In April, Pruitt put out a draft proposal to require studies to make their methods and data publicly available if they were to be included in drafting new regulations. "The aim of Pruitt's proposal is to mislead the public about the risks they face by censoring the science that would show the risks they face from chemicals in the environment," said Natural Resources Defense Council attorney John Walke.

   The policy could affect the EPA rewrite of President Obama's Clean Power Plan. In a proposed repeal of the rule, EPA said that the previous administration had justified writing the rule limiting greenhouse gas emissions from power plants by pointing to the health benefits of reductions in other pollutants as additional or a co-benefit of the rule. The proposed repeal also suggested using a higher threshold for when to consider particulate matter harmful to human health (Climatewire, March 26).

   Also in April, Pruitt submitted a separate proposal to change how the agency considers the costs compared with the benefits of putting in place rules to regulate pollutants. This second proposal complements what some Republicans refer to as the "secret science rule" to overhaul science in rulemaking. Instead of preventing science from being included in studies, revising cost-benefit analyses can say it isn't valid to put a dollar value on the "co-benefits" of reducing pollutants like fine particles that are not the direct focus of the regulation, according to Walke.

   Asked about the criticisms leveled against the Trump EPA, an agency spokesman reiterated Wheeler's intent to put greater focus on public health.

   "As Acting Administrator Wheeler has made clear, Americans deserve to understand environmental and hazardous risks to their communities. EPA must do its due diligence in making sure the public has all the facts to avoid any potential dangers," press secretary James Hewitt said in an emailed statement.

   EPA isn't just looking at ways to revise how it develops rules, it is also limiting the way it uses the regulations it already has to control pollutants. Environmental groups point specifically to the way EPA has undercut Congress' 2016 amendments to the Toxic Substances Control Act, a bill that at the time passed with strong bipartisan support.

   The purpose of the updated rule was to broaden the way the federal government evaluated the risk of harm from chemical exposure, from focusing on exposure in an isolated environment like the workplace, to an approach that looked at cumulative exposure risk throughout daily life. EPA was also supposed to pay attention not just to how these chemicals would affect the general public, but also the effects on especially vulnerable populations, like workers who manufacture chemicals or individuals who live in areas where they are subject to much higher than average levels of chemical exposure.

   "The industry was concerned about EPA doing these robust assessments because the more exposures you consider, the more likely it will not be safe and some level of regulation would be needed," said Richard Denison, a lead senior scientist at the Environmental Defense Fund.

   Since the beginning of the Trump administration, the agency has failed to embrace this reformed approach and taken steps to limit its own authority to regulate the first chemicals it had begun to consider under TSCA, according to Denison.

   "EPA has — in almost every action it has taken — has narrowed the risks it will look at," he said.

   It has also stalled action to limit the use of chemicals the agency had previously deemed harmful. One example is control of trichloroethylene, or TCE, a known carcinogen that is highly neurotoxic and can cause harm to developing fetuses and infants, said Denison.

   Several years ago, the agency had proposed a ban for two aerosolized uses of the chemical, as a spot cleaner in dry cleaning and as a degreasing agent. Under the Trump administration, the proposed bans have stalled, and EPA has stated it will redo the analysis of TCE. "We are probably set back by five years or more by EPA," said Denison.

   In addition to these regulatory changes, EPA also set new rules for who could participate on its science advisory boards, preventing individuals receiving EPA grants from participating, Goffman said.

   "With that legacy — which directly undermines the agency's credibility — it's hard to see how he [Wheeler] would see the agency would be positioned in the public's mind as a credible source of information about public health risk," he said.

   Goffman suggested Wheeler's latest announcement was an effort to distance himself from Pruitt.

   "But if that's the case, then this is a glaring example of the soft bigotry of low expectations," Goffman said. He added that the George W. Bush administration took a similar tack by publicizing its commitment to enforcement, "as if that alleviated their obligation to expand public health protection through regulation."

   "It's as if risk communication is elevated, as if it's an adequate substitute for expanding public health protections," he said.

   Walke said there is still a question of how Wheeler could reconcile "honest risk communication" with EPA's regulatory reforms. He also noted one way Wheeler had already failed to accurately communicate risk — in talking about climate change.

   "Wheeler's startling refusal to identify human activities as the dominant cause of climate change, contrary to the National Climate Assessment, is an alarming failure to communicate climate risks accurately and honestly with the public," said Walke.

   https://www.eenews.net/climatewire/2018/07/19/stories/1060089577
   

   Return to headline | Return to top

4. SC Johnson Expands Level of Product Fragrance Disclosure

   Jul 19, 2018 | Chemical Watch

   By Tammy Lovell

   US cleaning products giant SC Johnson has revealed the fragrance ingredients in its worldwide products down to 0.01% of content.

   The company started disclosing fragrance ingredients down to 0.09% in 2015 and began disclosing some down to to the current level last year, as part of an initiative to reveal 368 potential skin allergens in its products.

   This June it expanded the level of disclosure for fragrance ingredients to 0.01% for more than 5,300 products on its WhatsInsideSCJohnson ingredient disclosure website.

   The company claims it is the first major consumer packaged goods company to globally disclose fragrance ingredients down to that level of the product formula across its portfolio of brands.

   Kelly M Semrau, a senior vice president at SC Johnson, said: "Sharing more about product ingredients is good for families and important for the industry as a whole. We are pleased to see that our industry peers are following our lead and taking steps toward greater transparency."

   It is the latest in the company's transparency efforts, which included publishing the criteria behind its Greenlist ingredient selection programme earlier this year.

   In 2016, SC Johnson expanded its disclosure programme to Europe, and in 2017 to Asia. The programme will be introduced in Latin America later this year.Growing trend

   There has been increasing pressure for ingredient transparency in consumer goods products in the US.

   In October 2017, California's Cleaning Products Right to Know Act (SB258) was signed into law. This requires "chemicals of concern" including fragrance ingredients in products sold in the state, to be listed on the item's label.

   In June, New York State published the Household Cleansing Product Information Disclosure Programme, which requires manufacturers to post intentionally added ingredients in their products online by 1 July 2019 and fragrance and nonfunctional ingredients by 1 July 2020.

   Last year, Unilever US made fragrance ingredient information for more than 100 products available online and through an app.

   US consumer goods giant, Procter & Gamble, also said it will disclose the fragrance ingredients, down to 0.01% of content, for all products sold in the US and Canada by the end of 2019 and plans to reveal its ingredients selection criteria by the end of the year.

   https://chemicalwatch.com/68833/sc-johnson-expands-level-of-product-fragrance-disclosure
   

   Return to headline | Return to top

5. Gas Group Pushed for Science Advisory Board Member

   Jul 19, 2018 | E&E Climatewire

   By Scott Waldman

   Ex-EPA Administrator Scott Pruitt selected a new member for EPA's influential science advisory board after a natural gas group lobbied on his behalf, according to emails released this week.

   In September, Bert Kalisch, president of the trade group American Public Gas Association, sent a letter to Pruitt backing three new candidates for the EPA Science Advisory Board. One of them was Todd Brewer, a senior manager at American Water Works Association. The following month, Pruitt announced a new policy that removed board members receiving EPA grants. Brewer was among those picked to fill the vacant seats.

   "The SAB plays a critical role in, among other things, reviewing the quality and relevance of the scientific and technical information being used by the EPA," Kalisch wrote. "The individuals mentioned above would bring an abundance of expertise and real world experience to the SAB which would greatly benefit the EPA as it moves forward. Their skills, in addition to the experience they possess, can provide critical input into the technical information being utilized by the EPA as the basis for Agency regulations."

   The letter to Pruitt was disclosed as part of a new trove of documents obtained by the Sierra Club under a Freedom of Information Act request.

   Two other members supported by Kalisch were not selected by EPA to serve on the SAB. They were Laura Mooney, regulatory compliance manager of natural gas for the city of Tallahassee, and Jim Moore, utility market analyst for Spire Inc.

   The American Water Works Association is a nonprofit scientific and educational association dedicated to managing and treating water. In 2011, the group produced a white paper supportive of hydraulic fracturing that claimed the fears of groundwater contamination in the fracking process were "elevated" by the media.

   "Although the risks associated with these activities are difficult to quantify, evidence points toward the known risks being manageable through prudent regulations and industry best practices," the group wrote. "It is also important to remember that oil and gas development also offers tangible and significant benefits to society, and its risks should be balanced against those benefits."

   A range of industry groups, conservative think tanks and lobbyists made suggestions to EPA about possible candidates to serve on the SAB. The American Petroleum Institute suggested a number of candidates, including at least two who were later appointed: Merl Lindstrom, a vice president at oil refiner Phillips 66, and Robert Merritt, who was a researcher at oil company Total SA.

   Doug Deason, a prominent GOP donor and Dallas businessman, also suggested a list of SAB candidates to Pruitt, Politico reported last month. The whole list has not been disclosed, but it includes Michael Honeycutt, toxicologist at the Texas Commission on Environmental Quality, whom Pruitt later appointed to head the SAB. The names were generated by the Texas Public Policy Foundation, where Deason serves on the board.

   In separate correspondence, the Texas Public Policy Foundation claimed that the evidence around the regulation of fine particulate matter, or PM2.5, was faulty. PM2.5 has been linked by numerous independent studies to serious health effects, including lung and heart problems. In its request to weaken the National Ambient Air Quality Standards (NAAQS) for PM2.5, the group cited the work of a number of researchers appointed by Pruitt to the SAB. The researchers are affiliated with the oil and gas or utility industry, and their work has been used repeatedly to attack regulations.

   "Given that the causal link between PM2.5 and mortality is tenuous at best and indemonstrable at worst, the EPA Administrator certainly should not tighten the primary annual or 24-hour NAAQS for PM2.5; rather, the Administrator should consider making the standards less stringent," the group wrote in a petition.

   The group filed its petition seeking a weakening of national air quality standards with EPA in November, soon after Pruitt announced he would remake the advisory boards and install industry-affiliated researchers.

   https://www.eenews.net/climatewire/2018/07/19/stories/1060089605
   

   Return to headline | Return to top

6. Formaldehyde Fears Complicated Search for Pruitt's Desk, Emails Show

   Jul 19, 2018 | PoliticoPro

   By Annie Snider

   EPA Administrator Scott Pruitt's staff sought to protect him from exposure to toxic formaldehyde from an office desk last year, emails show — just months before his top political aides blocked the release of a report on health dangers from the same chemical.

   In the spring of 2017, as Pruitt was finishing the more than $9,500 redecoration of his office, a top career official in the administrator's office noticed a California warning that one of the ornate desks their boss wanted contained formaldehyde, which the state classifies as a carcinogen. It's unclear whether Pruitt ultimately ordered that desk as part of the renovation — which included artwork from the Smithsonian, framed photographs of Pruitt and President Donald Trump and a standing "captain's" desk — but the documents show that his staff took steps to protect Pruitt from exposure to the chemical.

   After seeing the warning, acting deputy chief of staff Reginald Allen reached out to the Wendy Cleland-Hamnett, the career official then serving as the acting head of EPA's toxic chemicals office, according to emails released to the group American Oversight under the Freedom of Information Act and shared with POLITICO.

   "Sorry to bother you with this but we need some help. The desk the Administrator wants for his office from Amazon has a California Proposition 65 warning. What I am asking is can someone in your area tell us whether it is OK to get this desk for the Administrator related to the warning?" Allen wrote April 7 to Cleland-Hamnett and another career official in the office, referring to a California state chemicals law.

   Cleland-Hamnett replied explaining that the desk was likely made of compressed wood in which formaldehyde is frequently used as a glue. Although an EPA regulation limiting formaldehyde emissions from such products had been put on hold by the Trump administration, the state of California regulates formaldehyde in such products, meaning the air emissions from the desk were "likely to be fine," Cleland-Hamnett wrote.

   However, she suggested letting the desk sit somewhere other than the administrator's office to air out for a few days. Administrative personnel appeared to make plans to have the desk assembled at a warehouse and left there for a week, when the highest concentrations of formaldehyde are usually emitted.

   The email exchange about the desk last spring took place just months before top aides to Pruitt took steps to block a health assessment produced by another division within the agency that found the levels of formaldehyde that many Americans breathe in daily are linked with leukemia, nose-and-throat cancer and other ailments. The chemicals industry has fought the assessment, which could prompt federal and state regulators to issue new restrictions on the chemical, and could lead to class-action lawsuits.

   POLITICO reported last month that Pruitt aides, including Chief of Staff Ryan Jackson, and Richard Yamada, a top official in the agency's Office of Research and Development, blocked the report from going through necessary internal review steps, effectively preventing it from being made public.

   Austin Evers, executive director of American Oversight, the watchdog group that obtained the emails, said the emails fit into the pattern of perk-seeking that led to Pruitt's downfall.

   “You can add 'EPA chemical safety science' to the list of taxpayer funded benefits that Scott Pruitt kept for himself. The irony would be comical if this wasn't so dangerous. Months before Scott Pruitt blocked the EPA's report on the dangers of formaldehyde to public health, he got the benefit of EPA's safety experts looking out for his own health," Evers said in a statement.

   Cleland-Hamnett retired last year. Allen, who had objected to other spending and travel by Pruitt, was reassigned to a job outside the agency this spring, E&E News reported at the time.

   Emily Holden contributed to this report.

   https://subscriber.politicopro.com/energy/article/2018/07/pruitt-protected-from-formaldehyde-while-public-warnings-were-blocked-698084
   

   Return to headline | Return to top

LCSA News

7. NGOs Seek Comment Extension on TSCA 'Problem Formulations'

   Jul 19, 2018 | Chemical Watch

   Four environmental groups are requesting the US EPA extend its comment period on the TSCA ‘problem formulations’ for the first ten substances subject to risk evaluation under the updated law.

   Earthjustice, Environmental Defense Fund (EDF), Natural Resources Defense Council (NRDC), and Safer Chemicals, Healthy Families are seeking additional time to review the ten documents, which further refine the scope of the substances’ upcoming assessments.

   Released in June for a 45-day consultation, they comprise more than 1,200 pages of material.

   "Providing thoughtful, meaningful comments is vitally important as the scope of the risk evaluations … will have significant implications for whether EPA will accurately determine whether these first ten chemicals – as well as future chemicals subject to risk evaluations – pose 'unreasonable risk' under the conditions of use," wrote the groups.

   They have asked that the deadline for comment be extended 46 days, from 26 July to 10 September.

   https://chemicalwatch.com/68843/ngos-seek-comment-extension-on-tsca-problem-formulations
   

   Return to headline | Return to top

Chemical Management News

8. (ACC Mentioned) OECD Makes GHS Mandatory for Member States

   Jul 19, 2018 | Chemical Watch

   By Leigh Stringer

   The OECD has made it mandatory for member countries, and those in the process of becoming so, to implement the UN's Globally Harmonized System of classification and labelling of chemicals (GHS).

   The GHS is a set of rules for classifying hazards, and applying the same format for labels and safety data sheets (SDS) around the world.

   Bob Diderich, head of the OECD's environmental, health and safety division, told Chemical Watch that the immediate implications are small because all OECD countries have already implemented the system, and accession countries are in the process of doing so. But, he said, it does mean that new accession countries will be compelled to implement the GHS.

   The requirement is part of a wider Act on reducing the risk of chemicals across OECD member countries. This was adopted in May by the OECD Council.Revision

   The Act – proposed by the organisation's chemicals committee and the working party on chemicals, pesticides and biotechnology – revises an old one adopted in 1991. This required members to "cooperatively investigate" high production volume (HPV) chemicals to identify those potentially hazardous to the environment and human health.

   It also required them to establish or strengthen national programmes, aimed at the reduction of risks from existing hazardous chemicals.

   The revised Act now focuses on the development of:harmonised hazard and exposure assessment methodologies for chemicals;collaborative assessment;information dissemination; andsharing the burden of generating information.

   It also looks into risk prevention and reduction, by "establishing and strengthening national risk reduction programmes; implementation of the GHS; activities to prevent or reduce the risks of chemicals – taking into account a lifecycle perspective; and the sharing of best practice on risk management approaches, including socio-economic assessment".

   The revision is part of an effort to update OECD legal instruments. "This was a high priority because [the 1991 Act] on the cooperative investigation of existing chemicals was no longer reflecting what we are doing," said Mr Diderich.

   "The general overhaul of our legal instruments was the perfect opportunity to add this GHS requirement," he said.Growing interest

   There are currently 36 OECD member countries. The OECD Council – made up of member country representatives – opens "accession discussions" with countries it is considering to invite.

   Most recently, Colombia has aligned its policies, including those on chemicals management and the GHS, to comply with the requirements of OECD membership. The OECD opened talks with the country in 2013 and, in May this year, it was officially invited to become a member.

   Earlier this year, at the GlobalChem conference, Jay West, senior director of chemical products and technology at the American Chemistry Council, said growing interest in the OECD has spurred South America to consider chemical management.

   He added that several non-member South American countries – including Brazil, Argentina, Ecuador and Uruguay – have already implemented GHS.

   https://chemicalwatch.com/68828/oecd-makes-ghs-mandatory-for-members
   

   Return to headline | Return to top

9. BPA May Worsen Inflammatory Bowel Disease, US Study Says

   Jul 19, 2018 | Chemical Watch

   Bisphenol A (BPA) may affect microbial amino acid metabolism in the gut thereby worsening the symptoms of inflammatory bowel disease (IBD), according to researchers from Texas A&M university, US.

   IBD covers a range of gut disorders, including Crohn's disease and colitis, and its incidence is increasing around the world.

   Some research suggests that oestrogen, including in contraceptive pills and hormone replacement therapy, may increase the risk of IBD developing. The researchers therefore think it "plausible" that bisphenol A could have a similar effect, by mimicking oestrogen. 

   Last year, a US-German team suggested that BPA exposure in the womb may alter populations of microorganisms in the gut, leading to colonic inflammation.

   Led by Clinton Allred from the department of nutrition and food science, the Texan team exposed mice to BPA for 15 days, at levels matching the "upper end" of human exposure. They used dextran sulfate sodium (DSS) to induce colitis in the mice and then observed the effects of adding BPA. Administering DSS alone caused a small spike in deaths, while BPA alone had no effect on survival rates. But exposing mice to both DSS and BPA caused almost 70% of the mice to die.

   The researchers also report that BPA exposure during DSS-induced colitis made symptoms more severe and appeared to slow the recovery rate, when DSS was no longer administered.

   To gain an insight into possible mechanisms, the team analysed faecal samples, on the basis that BPA may affect levels of some metabolites produced by gut microorganisms, including anti-inflammatory molecules.

   In particular, the researchers suggest that BPA exposure may link to reduced levels of the amino acid tryptophan as well as metabolites derived from other amino acids. Low levels of tryptophan and amino acid metabolites are associated with increased automimmune disease activity, including IBD, they report.

   Writing in Experimental Biology and Medicine, the researchers call for further studies to determine the mechanisms by which BPA lowers levels of trytophan in the colon.

   https://chemicalwatch.com/68832/bpa-may-worsen-inflammatory-bowel-disease-us-study-says
   

   Return to headline | Return to top

10. Cosmetics Giant L’Oréal to Eliminate PFASs in Products

    Jul 19, 2018 | Chemical Watch

    By Tammy Lovell

    French brand L'Oréal has become the latest of six large cosmetics companies to commit to eliminating per- and polyfluoroalkyl substances (PFASs) in its products, since December last year. 

    Swedish NGO, the Nature Conservation Association, announced the move online, after receiving an email from the company in response to its social media campaign.

    The campaign which launched in the summer of 2017, placed pressure on eight major cosmetics companies to phase out PFASs.

    In its email to the NCA, L'Oréal says it has "decided not to use PFASs any more" as part of its global sustainability programme.

    "The reformulation process is being completed and we are doing our utmost to remove PFAS topics. Please note that this applies to all L'Oréal-owned trademarks," the email continues.

    Karin Lexén, general secretary of the NCA, called the company’s announcement an "amazing result".

    PFASs are a group of substances that "concern researchers all over the world", many of whom think it necessary to get rid of them as quickly as possible, Ms Lexén said. Despite this, they are currently allowed in products that can be applied "directly on the skin", she added.

    The NGO's website says its campaign focused on the chemicals because of concerns they do not biodegrade well and are suspected of carcinogenicity and affecting the liver, immune system and reproduction. Campaign victory

    L'Oréal follows H&M, Lumene, the Body Shop, Isadora and Kicks in committing to phasing out PFASs.

    Personal care retailer, the Body Shop, prohibited all PFAS ingredients in new product development from spring this year. Its international regulatory and scientific director, Jason Matthews, told Chemical Watch that the substances are present in "extremely small quantities" in three ranges and the products would be reformulated "in an ongoing process that will be complete by 2020".

    The decision to phase them out was due to "a combination of a few factors, including the fact that some have been added to the EU candidate list and the environmental profile of these materials is below our standards," Mr Matthews added. Cosmetics ban

    The NCA is calling for an EU ban on PFASs in cosmetics products, but encourages companies to phase them out voluntarily in the meantime. 

    "L'Oréal, H&M, Lumene, the Body Shop, Isadora and Kicks have all chosen to take responsibility for people, animals and nature. Now, we hope their actions inspire more companies to follow," said Ms Lexén.

    Currently, nine PFASs are on the REACH candidate list of substances of very high concern (SVHCs), but only perfluorooctanesulfonic acid (PFOS) is restricted, with perfluorooctanoic acid (PFOA) set to be so by 2020.

    Frida Hök, senior policy adviser at the NGO ChemSec, said: "We are pleased that many of these large cosmetics producers have committed to phasing out PFCs, and hope that this will be a wake-up call for the whole cosmetics industry."

    ChemSec would like "the entire cosmetics industry to improve its chemicals management and aim for a complete out-phasing of all harmful chemicals in products to make sure that consumers can use cosmetics safely, both for themselves and the environment," she added.

    Meanwhile, the NCA campaign is continuing to place pressure on cosmetics brands Clinique and BareMinerals, the remaining companies it has targeted but have yet to agree to the phase out.

    https://chemicalwatch.com/68795/cosmetics-giant-loreal-to-eliminate-pfass-in-products
    

    Return to headline | Return to top

11. CW Report Highlights Main Messages from Helsinki Chemicals Forum

    Jul 19, 2018 | Chemical Watch

    Supporting developing nations in the context of the Strategic Approach to International Chemicals Management (Saicm) and its "beyond 2020 process", and how to effectively convey risk from endocrine disruptors were just some of the key topics of the 2018 Helsinki Chemicals Forum (HCF), held in June.

    This year marked the Forum's tenth anniversary and was attended by international policy makers, industry, NGOs and academics.

    And Chemical Watch has brought together the event's five key themes in a just-released report:capacity building beyond 2020;endocrine disruptors as a challenge for risk communication;priority setting of chemicals – potential for harmonisation and synergies;plastics − role of chemicals management to solve the problem with microplastics in the environment; andwhether product stewardship replace regulation of nanomaterials.

    The next HCF will take place on 23-24 May 2019.

    https://chemicalwatch.com/68826/cw-report-highlights-main-messages-from-helsinki-chemicals-forum
    

    Return to headline | Return to top

12. UK 'No-Deal' Brexit Chemicals Plan Due in Autumn

    Jul 19, 2018 | Chemical Watch

    By Luke Buxton

    The UK’s environment ministry (Defra) is working on a "large and detailed" draft of a statutory instrument to transfer the "responsibilities and operability" of Echa to a UK agency in the event of a no-deal Brexit scenario.

    The draft should be laid out in Parliament this autumn, Defra’s deputy director of EU environment Gabrielle Edwards told a House of Lords select committee on 18 July.

    The draft, she said, will "essentially build the UK regulatory capacity by extending the role of the Health and Safety Executive and the environment agency and ensuring we put in place arrangements to ensure there is suitable transparency and a requirement to seek external advice to replace some of the work that is done in the Echa and technical scientific committees".

    The draft regulation is one of three the government is discussing, she said. Another would give effect to an "optimistic assumption" that the UK is moving into the proposed ‘implementation period’ – not quite business as usual, but still complying with REACH.

    In addition, there would need to be legislation to enable the government to support arrangements for moving into a situation where it has a negotiated settlement with the EU along the lines set out in the Brexit White Paper published on 12 July, Ms Edwards said.IT system

    Meanwhile work continues on the government’s IT system, which junior environment minister Thérèse Coffey told the committee she is confident will be in place by the time the UK leaves the EU on 29 March.

    Plans include detailed delivery timelines for designing and procuring the system with ongoing reviews "to ensure they remain on track," she said.

    Defra is trying to build a system that "as far as we can will replicate what the Echa system does". Some of the fuller functionality that is not required necessarily on day one would come on board on a "slightly slower" time scale, Ms Edwards said. "The critical thing for day one is to have that registration function in place."Registration transfers

    In a no-deal scenario existing REACH registrations submitted by UK legal entities will become ‘non-existent’ from 30 March 2019. Under these circumstances, Ms Edwards said Defra "would anticipate" a mechanism for transfer of registrations to be in place.

    Earlier this year, Cefic said the idea of allowing the transfer to downstream users of those chemicals in the EU was "theoretically possible".

    Dr Coffey told the committee there would be a transfer cost "that can vary from about £200 to £1,500 [€224 to €1,680] for existing registrations and it’s those kinds of additional costs that would impact on businesses under a no-deal scenario". Given that there have been some 12,000 UK registrations under REACH, this could equate to £2.4m to £18m.

    Stakeholders, she added, have given different views on how long they think it would take to re-register – "anything from under an hour to over a year and that’s quite alarming for the businesses involved".

    But speaking in an earlier session of the committee on 27 June, UK Chemical Industries Association REACH executive Silvia Segna said the additional cost to the UK and EU chemical industry as a whole could be £450m [€504m] just to ensure that UK-registered substances "simply stay where they are today".

    This excludes, she said, other potential costs such as time, resources and fees that companies may need to pay to appoint representatives in the EU, and the possible duplication of costs arising from the need to comply with two sets of legislation.

    Neither does it include the cost – "in the range of hundreds of millions of pounds" – of all the new registrations that importers, including formulators in downstream industries, could suddenly be subject to post-Brexit that were not needed before because the raw material is registered in the EU and not in the UK.Business advice

    The government assumes businesses will be prepared for more than one scenario, Dr Coffey said. "I expect it will be a massive issue for some and for others not quite so, but this will vary by company."

    The government will need to focus more on the impact to smaller businesses, Dr Coffey added. Defra will need to tell them if Britain is heading towards a no-deal scenario and what the process of registering in the UK will be.

    "We think it would be in the best interests of many companies supporting what is in the White Paper to increase their calls on their governments to consider why this would be a good outcome for them as well as the UK".

    Following the meeting, the sub-committee’s chair Lord Teverson, a Liberal Democrat, criticised Dr Coffey’s evidence: "She is expecting industry to prepare for a potential departure from REACH, but hasn't started equipping a UK body to do the same. Given the potential cliff edge facing the industry, this simply isn't good enough."

    She makes it clear, he added, that if the government cannot secure its desired associate membership the UK is "entirely unprepared" to regulate chemicals independently post-Brexit.

    At June’s sub-committee, Cefic’s Peter Smith said such membership is possible, but whenever his organisation mentions it it seems "to get the cold shoulder in Brussels". It is, he added "clearly a negotiating point. In Brussels, out is out at the moment. But I would not give up."

    Meanwhile, the HSE recently updated its Brexit web pages with advice on what obligations and rights UK businesses will have if the proposed implementation period does come into effect.Defra’s plans for ‘no-deal’: what we still don’t know

    Part of the UK government’s plan to sell its Brexit White Paper to pro-leave Conservative MPs is to show the outside world it is willing to contemplate a ‘no-deal’ scenario and is pushing ahead with plans for such an outcome.

    This is why we saw junior environment minister Theresa Coffey and a Defra official this week giving the first substantive public comments on how the government expects a no-deal Brexit to affect the UK legal framework for chemicals.

    We heard that the plan under such a scenario would be for a UK chemicals agency – presumably the HSE plus minor roles for the Environment Agency and devolved administrations representing Scotland, Northern Ireland and Wales – to provide "suitable transparency" and that it would seek external advice to replace "some of the work" done by Echa’s committees. But from whom would it seek scientific and socio-economic "advice" and how transparent would this process be? And what level of engagement would it have with stakeholders?

    A new IT system, based on Iuclid, would hold registrations – presumably with UK companies having to resubmit the registrations they have already submitted to Echa over the past eight years. But what about registrations for substances imported from the EU or elsewhere? What information and data would the UK agency require? And would it evaluate some of those to ensure the data requirements are met?

    Initially, as provided for by the EU Withdrawal Act, all existing chemical controls would be copied across. But what about future controls? Defra has yet to give any commitment to mirror future EU decisions on chemicals or changes to EU chemical Regulations, such as a new implementing Regulation that alters the REACH legal text.

    So in a few years could UK chemical controls look very different from those in the EU?

    Geraint Roberts

    https://chemicalwatch.com/68836/uk-no-deal-brexit-chemicals-plan-due-in-autumn
    

    Return to headline | Return to top

13. UK HSE Issues Brexit Advice to Chemicals Industry

    Jul 19, 2018 | Chemical Watch

    The UK's Health and Safety Executive (HSE) has updated its Brexit webpages with advice for Britain's chemicals industry, including in the case of no agreement being reached with the EU.

    The agency says its priorities are to ensure the UK's continued effective and safe management of chemicals, maintain its ability to respond to emerging risks and allow trade with the EU that is as frictionless as possible.

    The UK is set to leave the EU on 29 March 2019, with a planned implementation period lasting until the end of 2020.

    With this in mind, the HSE informs companies on what they need to know during the run up to final withdrawal. During the implementation period, it says:registrations, approvals, authorisations and classifications in place before March 2019 will continue to be valid;REACH will continue to apply to the UK;the process for registering new chemicals under REACH will remain the same, requiring UK companies to register with Echa;the UK will recognise all new registrations, approvals, authorisations and classifications granted by the EU;it expects not to be able to act as a 'leading authority' in conducting certain assessments under the plant protection products, biocides and REACH Regulations. The HSE will, it says, work with affected businesses to minimise disruption and delay to ongoing assessments;UK-based businesses will have the same rights as EU-based businesses to have their cases accepted and processed by 'leading authorities' in other EU member states; andthe HSE will continue to process product applications under the BPR and PPPR for the UK market under the national authorisation route. Any applications will be considered against the current rules and standards.

    While it says it is confident of a "positive outcome from the negotiations with the EU", the agency points out that it has to prepare for all scenarios, including a so-called hard Brexit. To this end, it says the government will ensure an effective regulatory framework is in place. And, it adds, a new chemicals IT system will "guarantee continuity for businesses whatever the outcome of negotiations".

    In addition to the website advice, the HSE has organised an 'exiting the EU' workshop for the industry in Liverpool on 1 August.

    https://chemicalwatch.com/68777/uk-hse-issues-brexit-advice-to-chemicals-industry
    

    Return to headline | Return to top

14. Echa Round-Up

    Jul 19, 2018 | Chemical Watch

    Call for evidence on perfluorohexane-1-sulphonic acid, its salts

    Echa has issued a call for evidence on perfluorohexane-1-sulphonic acid, its salts and related substances. The consultation is part of the Norwegian Environment Agency's preparation of an Annex XV restriction dossier, which it intends to submit on 12 April 2019.

    The Norwegian EPA calls for information to identify uses, which will be used to inform an assessment of socio-economic consequences of a proposed ban, including feasibility of alternatives.

    The deadline for comments is 22 August.

    A stakeholder separate and targeted stakeholder consultation is also ongoing, Echa says.

    PFHxS and its salts were identified as substances of very high concern due to their vPvB properties according to Article 57(e) of REACH in July last year. They are used in fire-fighting foams, food contact materials water/stain-proofing agents and cleaning and polishing products, among others.Targeted consultation on pyrithione zinc

    Echa has launched a targeted consultation on the harmonised classification and labelling of pyrithione zinc. This is in light of new information on aquatic toxicity, submitted by the zinc pyrithione industry consortium on 6 and 13 July. 

    The Committee for Risk Assessment (Rac) had asked for further information to clarify the aquatic hazard of the substance at its June meeting.

    The new information includes newly conducted experimental studies on the marine diatom Skeletonema costatum. The study reports had preliminary results and were marked as unaudited drafts, so the consortium has committed to submit to Rac the audited, GLP-compliant full reports for the targeted public consultation, Echa says.

    Interested parties are invited to submit comments using the webform by 1 August. 

    This consultation follows on from a CLH proposal by Sweden, the public consultation on which ended on 7 July last year.CLH consultations

    Echa is consulting on harmonised classification and labelling (CLH) proposals for:

    trinickel disulphide, an industrial chemical used in articles, formulation or repacking. It has an existing harmonised classification and labelling in Annex VI to CLP. Comments are invited on the acute toxicity hazard class; and

    benzyl salicylate, an industrial chemical used as a UV-absorbing substance in air care products, as a biocide, and in perfumes and fragrances, polishes and waxes, and washing and cleaning products. It has no existing harmonised classification and labelling in Annex VI to CLP. Comments are invited on the skin sensitisation hazard class.

    The deadline for comments is 18 September.Key parameters for market studies on nanomaterials

    A study commissioned by the European Union Observatory for Nanomaterials (EUON) has identified a set of parameters for producing reliable market studies on nanomaterials.

    Market studies can contribute to increased transparency about nanomaterials, their uses and their market trends, the agency says.

    The parameters identified as providing a reliable basis for future market studies, include:market analysis by segmentation, such as by geographical region, application, end use or nanomaterial type;market forecasts and compound annual growth rate (CAGR);market share by region, country or company;market trends, such as consumption and demand; andcompetitive scenarios and product portfolios of key vendors.

    The study also determined additional parameters for comprehensive studies that take into account more variables and interactions.

    The researchers analysed data from 2011-18 obtained using online search tools and from websites of relevant public authorities, such as Echa, the European Commission and member states.

    The report provides a list of the most relevant market studies and data sources.Webpage on microplastics translated

    Echa's webpage on microplastics is now available in 23 languages.

    https://chemicalwatch.com/68722/echa-round-up
    

    Return to headline | Return to top

Energy News

15. Saudi Aramco in Talks to Buy Stake in Petrochemical Firm

    Jul 19, 2018 | The Wall Street Journal

    By Summer Said

    Saudi Aramco Thursday said it’s in early talks to buy a stake in one of the world’s largest petrochemical companies, an acquisition that would boost the state-run oil giant’s downstream operations even as the future of its proposed initial public offering remains in doubt.

    A deal to buy a stake in Saudi Basic Industries Co., or Sabic, would allow Aramco to vastly expand its petrochemical operations and move toward its stated goal of becoming a modern integrated-energy company, along the lines of Exxon Mobil Corp. and Royal Dutch Shell .

    Aramco said it has no plans to acquire any publicly held shares of Sabic.

    The Public Investment Fund, Saudi Arabia’s sovereign-wealth fund which owns a 70% stake in Sabic, confirmed the talks with Aramco. The two entities didn’t disclose the size of the stake under discussion for Sabic, which is the largest listed company on the Saudi stock market.

    The partial or full sale of its stake in Sabic to Aramco will help boost the Public Investment Fund’s cash pile as it looks for global investment opportunities to diversify the kingdom’s income. The Public Investment Fund was once a sleepy investor in Saudi infrastructure, but it has broken out in recent years to allocate tens of billions to a joint tech fund withSoftBank Group Corp. and hunt for deals across the world.

    The state oil company was until recently focused on pumping great quantities of oil and boosting its global refining capacity to offset losses stemming from the Organization of the Petroleum Exporting Countries decision to cut production in an attempt to alleviate a market glut.Newsletter Sign-up

    Aramco said it has been evaluating a number of acquisition opportunities, both locally and globally as part of the company’s strategy to rebalance its portfolio by moving further into the downstream sectors, especially petrochemical.

    Last year, Aramco and Sabic signed an agreement to build a chemicals complex to convert 45% of crude oil to chemicals directly. The $20 billion project would yield about 9 million metric tons of products a year.

    Aramco’s planned transformation is intertwined with a long-term plan to diversify the Saudi economy, an effort led by Saudi Crown Prince Mohammed bin Salman who wants to reshape the kingdom’s oil-dependent economy by supporting other sectors such as petrochemicals.

    But the downstream expansion comes as the future of Aramco’s IPO remains in doubt. Preparations for the blockbuster listing, a centerpiece of the government’s plan to open its economy, have stalled, leaving government officials and people close to the process doubting that it will go forward at all.

    https://www.wsj.com/articles/saudi-aramco-in-talks-to-buy-stake-in-petrochemical-firm-1532005615?mod=searchresults&page=1&pos=2
    

    Return to headline | Return to top

16. 5 Main Competitors to U.S. LNG Dominance

    Jul 19, 2018 | E&E Energywire

    By Nathanial Gronewold

    The United States is rapidly increasing its exports of liquefied natural gas. But it isn't the only nation doing so or that has plans to do so.

    The addition of the Cove Point LNG plant in Maryland brings the number of major LNG export centers in the U.S. outside Alaska to two. Sabine Pass in Louisiana became the first LNG export platform to emerge from the shale gas revolution, and it is expanding still. By the end of this year, another train at Sabine Pass is expected to be in commercial operation.

    From now until next year, the U.S. Energy Information Administration expects four more LNG export projects to come online across the country, from Corpus Christi and Freeport in Texas to Cameron, La., and Elba Island, Ga.

    By 2021, baseload U.S. LNG export capacity will exceed 9 billion cubic feet of gas per day (Bcf/d), according to EIA's figures. The rise of U.S. LNG is upending the way the commodity is marketed and sold globally (Energywire, Feb. 14).

    But these projects have plenty of competition around the world.

    "Besides Australia and the United States, several other countries also increased LNG exports in 2017," EIA analysts point out in a recent report. "The return to service of Angola LNG and increases from several countries including Nigeria, Malaysia, Algeria, Russia, and Brunei added another 1.4 Bcf/d of LNG exports, more than offsetting a combined decline of 0.6 Bcf/d in exports from Qatar, Indonesia, Norway, Peru, the United Arab Emirates, and Trinidad."

    LNG is gaining popularity in East Asia, the region with the fastest economic growth. India and Pakistan have also been expanding their LNG consumption. Supply is now racing to catch up with demand from all corners of the globe. New projects in Australia, Papua New Guinea and Russia have all recently entered the market, and more are coming.

    "A wave of new projects in Mozambique, Qatar, Russia, and the United States are expected to pass FID [final investment decisions] over the 2018-2019 period," notes the Westwood Global Energy Group.

    The rush means the world is expected to be in an LNG oversupply situation until the mid-2020s, although rising Asian demand and European consumption should cut back on the oversupply by 2025 or so, Westwood says.

    Until then, U.S. LNG will be entering an increasingly crowded marketplace.Qatar

    StellarD/Flickr

    Long the globe's main supplier of LNG, the Middle Eastern nation of Qatar is poised to host the 2022 World Cup soccer tournament. And Qatar could be at the cusp of greatly expanding its LNG export capacity over the coming years to reclaim the title of world's largest exporter from Australia.

    "In April 2017, Qatar lifted the North Field natural gas production moratorium that had been in place since 2005," noted Rystad Energy analysts. "This will allow Qatargas to increase production from the world's largest gas field and export more LNG volumes."

    If Qatar follows through on all of its ambitions, LNG market watchers think it's possible that the nation could boost its export capacity by 30 percent, to some 100 million metric tons per year (mtpa). These volumes will be ideally situated to meet the needs of rising LNG consumers in East and South Asia, namely China, India and Pakistan.

    And because of the scale of Qatar's gas reserves and existing infrastructure, Rystad estimates that Qatar's LNG could be marketed to customers at around 34 percent below a break-even price for a U.S. LNG project, which could threaten some other U.S. LNG export proposals. "The expansion comes at a time when there are several liquefaction trains in the U.S. ready to take FID," they said. "The Qatari project represents a challenge for these projects as it is estimated that it has the lowest breakeven price of all the planned projects in the world."

    Research firm GlobalData PLC argues that Qatar actually faces potential production declines if the nation doesn't invest in more export capacity. Qatar reaps the vast majority of its government revenues from gas and LNG exports, giving the nation a great incentive to follow through with its vision. By 2025, Qatar's daily LNG export capacity may be double that of the U.S., according to GlobalData's figures.

    "The availability of resources, capital and determination to maintain its energy independence and global LNG stronghold despite the political regional dispute seems to be spurring Qatar's natural gas investment and places the country in a strong position to achieve its mid to long-term ambition to achieve an LNG export capacity of 100 mtpa," researchers there said.Australia

    MaxPixel

    Long before U.S. LNG entered the stage, Australia was leading the world in the growth of additional natural gas liquefaction and LNG export capacity. But the world's largest oil and gas majors shot themselves in the foot by all rushing in to build their massive projects at the same time. The resulting spikes in labor and materials costs saw huge budget overruns, angering investors (Energywire, April 14, 2014).

    The experience led some in the industry to call for better coordination of construction timing to avoid a repeat. That didn't happen as U.S. LNG projects went up.

    Still, Australia is today a leading exporter of LNG, with the bulk of its sales going to Japan. From 2017, LNG exports from Down Under expanded by more than 18 percent. This came on top of earlier growth due to the addition of new export trains at Gladstone, Gorgon and Wheatstone.

    Graeme Bethune, chief of the Australian market research firm EnergyQuest, said in a note to clients that Australia's export growth was driven by rising Chinese demand, a fact that could put Australian LNG in a favorable position should the trade spat between the U.S. and China end up blocking U.S. LNG sales to the Middle Kingdom.

    "The growth in exports was driven by increased deliveries to China of 6.5 mt, particularly from Gladstone but also from west coast projects," Bethune said.

    But Australia's LNG export prowess could be close to peaking, although the picture is somewhat murky, said Carlos Torres-Diaz, a natural gas and renewables market analyst at Rystad. "At the moment, we don't see any new Australian projects that are likely to go ahead, but lately there has also been some discussions between the different producers in the west coast to build a joint plant, which would make a new project more feasible," he said.Canada

    MaxPixel

    Seven years ago, oil and gas industry insiders speculated that Canada could beat the U.S. in the race to build the first shale-gas-driven LNG export project in North America (E&E News PM, Oct. 31, 2011).

    Those earlier predictions have since proved wildly off-base as U.S. industry builds one LNG export platform after another, while Canada hasn't added any new projects since shale gas burst onto the scene.

    But after years of delays and false starts, things may finally be moving forward in British Columbia, where a consortium hopes to connect massive shale gas fields to an LNG export facility proposed for the Pacific coast community of Kitimat.

    A planned 2016 FID was canceled and no new date has been set, but LNG Canada has been busy securing permits and shopping for potential customers anyway, steps that will allow partners Royal Dutch Shell PLC, PetroChina Co. Ltd., Mitsubishi Corp. and Korea Gas Corp. to finally break ground on the proposed project. The plan envisions two trains exporting some 6.5 mtpa at the outset, with an option to expand the Kitimat facility by four additional trains.

    The consortium made no public announcements last year. Then, LNG Canada surprised many by announcing back in April that it had located contractors to run engineering and construction for the project, signing a deal with Fluor Corp. and JGC Corp. of Japan.

    "The joint venture of JGC and Fluor has significant experience in Canada, combined with extensive LNG and mega project experience," LNG Canada representatives said in a release. "Fluor has nearly 70 years of Canadian project experience with over 7,500 construction personnel working on Canadian projects in 2017, while JGC has experience in construction of more than 48 LNG trains globally."

    U.S. LNG export capacity is concentrating on the East Coast and Gulf of Mexico coastline, while LNG Canada envisions a Pacific LNG port, potentially giving that project an advantage over its U.S. competitors for the major East Asian demand growth areas.

    And though environmental groups are mounting stiff opposition to new fossil fuel projects in Canada, especially in British Columbia, Ottawa is fully supportive as the shale gas boom in the U.S. has cratered demand and prices for Canada's natural gas. Diversifying the export market for Canada's energy is a top concern of the federal government.Africa

    South African Tourism/Flickr

    New LNG exports from Nigeria and Mozambique may also compete for U.S. exporters' market share in years to come.

    A West Africa LNG veteran, Nigeria LNG recently contracted with a consortium to build a seventh LNG export train, with plans to expand the existing Bonny Island LNG platform by more than 36 percent, according to McKinsey Energy Insights. The $12 billion proposed project "will increase the plant's capacity from 22 mtpa to 30 mtpa," analysts said in an overview.

    Meanwhile, Anadarko Petroleum Corp.'s plans for a major LNG project in the East African nation of Mozambique lumber forward, though slowly.

    Although Anadarko is on the record saying that its gas discoveries in Mozambique could lead that nation to become the world's third largest exporter, more than six years have passed and no LNG has shipped from the proposed site since then, and the developers have offered no clear project timeline on the project's website (Energywire, May 24, 2012).

    But that could change soon.

    Partner Mitsui & Co. is closing in on a final investment decision on Mozambique LNG, with an announcement on the FID likely by March 2019, according to Reuters. Mitsui told the news agency that it had secured commitments for buyers that will cover 9 mtpa of the 12 mtpa capacity envisioned, to be completed and in operation by 2023.

    And in June, Anadarko announced that it had reached an off-taking agreement with Tokyo Gas Co. Ltd. and Centrica LNG, a deal that calls for 2.6 mtpa in shipments from Mozambique LNG beginning from startup until the 2040s. Its location in the Indian Ocean would make it ideally suited to supply India with a steady stream of gas.

    "Tokyo Gas and Centrica have a strong global reputation in the industry, and we are delighted they have made this commitment to the Mozambique LNG project," Anadarko Vice President Mitch Ingram said in a statement. "This off-take arrangement takes full advantage of Mozambique's favorable central location, which enables Mozambique LNG to supply customers in both the European and Asian-Pacific markets."Russia

    Yamal LNG

    The launch last year of shipments for Russia's groundbreaking Arctic project, Yamal LNG, showed that the previous world record gas producer wasn't content with relying on expanding pipeline shipments to Europe as it explores other opportunities.

    Yamal LNG arrived onto the scene in spite of U.S. government sanctions on Russia's oil and gas business, and Russian LNG from that project even made it to customers in Boston earlier this year, sparking heated controversy (Energywire, March 21).

    Russia joined the LNG fray for the first time in 2009 with Sakhalin-II. That project captures natural gas from an offshore field in Russia's Far East, where it is liquefied and delivered to customers mainly in Japan and South Korea.

    Investors are aiming to follow up on the success of Sakhalin-II and Yamal LNG.

    Novatek wants to capitalize on its Yamal experience as it designs and plans construction of Arctic LNG-2, proposed for the northwest Siberian coast. The plan is for a total liquefaction and export capacity of 18 mtpa, according to the consultancy PricewaterhouseCoopers.

    Meanwhile, Russian state-owned oil giant Rosneft and Exxon Mobil Corp. are still seriously considering the merits of their proposed Far East LNG project, despite U.S. energy industry sanctions.

    "The Far Eastern LNG is a project to construct an LNG plant with an initial capacity of 5 [mtpa] and a potential capacity of 10 [mtpa]," PwC analysts noted.

    The two oil and gas giants are reportedly pushing to finalize an FID by next year, according to Reuters. Far East LNG would also be located on the Sakhalin island north of Japan.

    https://www.eenews.net/energywire/2018/07/19/stories/1060089557
    

    Return to headline | Return to top

17. Oil & Gas Producers Urge EPA To Scale Back Audit Policy For New Owners

    Jul 19, 2018 | Inside EPA

    By Dave Reynolds

    Oil and gas producers are urging the Trump Administration to scale back EPA's draft self-audit policy intended to streamline disclosure of non-compliance for new owners, arguing that the proposal would rely on measures outside the agency's statutory authority and that compliance with similar state policies should satisfy federal regulators.

    EPA in May floated the draft policy aimed at increasing the sector's use of the agency's 2008 audit policy that provides enforcement relief in exchanges for disclosing and remedying certain violations. Agency officials have billed the update as part of the Trump administration's effort to strike a more collaborative tone with the oil and gas industry and to promote “compliance through collaboration.”

    But the American Petroleum Institute (API) and the Independent Petroleum Association of America (IPAA) argue in comments submitted earlier this month that the draft policy would create additional hurdles that would curtail rather than expand use of the audit policy, and are urging the agency to significantly revise its approach.

    API specifically targets the draft policy's model agreement, based on a recent EPA settlement with Range Resources, as imposing a “one-size-fits-all” approach that would require facilities to comply with state or industry best practices and guidelines, which are beyond the scope of the Clean Air Act, in order to benefit from the policy.

    The Draft agreement “would fundamentally change the structure of the Audit Policy by requiring auditing, disclosure, and corrective actions regardless of whether the company is in violation of any federal regulation under the Clean Air Act,” API says in comments submitted to EPA in advance of a July 2 deadline.

    “To be perfectly clear, this approach would saddle new owners of oil and natural gas exploration and production facilities with an entirely new and onerous requirement in order to use the Audit Policy,” API adds.

    IPAA, while supporting EPA's aim of expanding use of the audit policy, strongly backs API's remarks.

    “IPAA is concerned that the Audit Policy as proposed will not achieve a joint EPA and industry objective of managing environmental impacts in a sound and equitable manner,” the group says in July 2 comments.

    In March, Patrick Traylor, deputy assistant administrator of EPA's Office of Enforcement and Compliance Assurance (OECA) announced that EPA was planning to better tailor its 2008 audit policy for the oil and gas sector, arguing that increasing facilities' self-disclosure would save state and federal resources in a time of shrinking budgets.

    “No one knows more about operations and compliance then regulated entities,” Traylor said, emphasizing a need for greater collaboration with industry. “We can only do so much,” and “states can only do so much.”

    EPA's draft policy floated May 7 appears aimed at equipment leaks that could release emissions of both ozone-forming volatile organic compounds and the potent greenhouse gas methane, with several direct references to storage tanks or related equipment.

    The draft would also replace a default presumption under the current 2008 audit policy that new owners have 60 days to correct environmental violations they discover, and instead grants greater flexibility by allowing owners to negotiate a time frame for most proposed fixes.

    The new policy would use a standard oil and gas audit informed by a prior agreement with Texas gas producer Range Resources Corporation. According to published reports, Susan Bodine, EPA's enforcement chief, has said that negotiating the agreement took significant agency resources so using it as a model for other companies makes sense.

    One Agreement

    But in the recent comments, oil and gas producers argue that applying one agreement across the sector raises significant problems that would further deter use of the audit policy, including by requiring that companies comply with requirements outside the scope of the Clean Air Act in order to avail themselves of the policy.

    “API does not believe that EPA is attempting to use the Draft Agreement to introduce a backdoor regulation on the upstream oil and natural gas industry,” the group says. “We do, however, have significant questions about the propriety of assessing compliance based on standards that exceed and are entirely distinct from that which EPA has required in regulations developed through notice-and-comment rulemaking.”

    Both API and IPAA also contend that the new federal disclosure policy will create regulatory confusion in states with delegated authority to implement federal environmental law that have their own audit policies. EPA should consider compliance with a state audit policy as meeting the requirements of the federal policy, the industry groups say.

    “If a state has delegated authority and if the state has a self-audit program, the oil and natural gas producer should only have to deal with the state if it avails itself of the audit option,” IPAA says.

    “If the producer develops an audit-based compliance agreement, that agreement should protect it from EPA enforcement actions if the producer complies with its commitments.”

    API says, “EPA’s Audit Policy should yield to state audit policies in order to avoid duplication, inefficiency, and inconsistency.”

    API supports EPA's plan in the draft policy to allow facilities to negotiate manageable time frames for identifying, disclosing and correcting violations, but cautions that the approach does not provide companies certainty that those negotiations will succeed in setting workable deadlines.

    “API therefore recommends that EPA balance the need for both flexibility and certainty by establishing certain minimum default deadlines that would apply to new owners of oil and natural gas exploration and production facilities,” API says. “New owners would then be assured of some reasonable minimum timeframe for conducting audits, disclosures, and corrective actions but would remain free to negotiate with EPA to extend those deadlines.”

    https://insideepa.com/daily-news/oil-gas-producers-urge-epa-scale-back-audit-policy-new-owners
    

    Return to headline | Return to top

18. Democrats Dissent as FERC Approves Gas Projects

    Jul 19, 2018 | E&E Greenwire

    By Sam Mintz

    The Federal Energy Regulatory Commission acted today on several proposed natural gas pipelines — including two notable New York projects — at its last public meeting before the departure next month of Republican Commissioner Robert Powelson.

    Several decisions were opposed by one or both commission Democrats, who will temporarily have more influence on the agency's action after Powelson departs.

    In one New York case, FERC struck another blow to the Constitution pipeline, declining to reconsider its January decision that the state appropriately denied the Williams Cos. Inc. project a certification under the Clean Water Act.

    The rehearing request was one of the final chances for the Constitution project after the Supreme Court declined to take on the question in April (Greenwire, April 30).

    FERC also affirmed its November decision to approve Millennium Pipeline Co. LLC's Eastern System Upgrade project.

    Democrats Richard Glick and Cheryl LaFleur split from the Republican majority on Eastern System and the Texas Eastern Transmission projects.

    LaFleur wrote that she believes FERC is required to quantify and consider downstream greenhouse gas impacts of the Texas Eastern project, which would be built in Texas and Louisiana.

    "The majority states that it cannot 'make a finding whether a particular quantity of greenhouse gas emissions poses a significant impact on the environment and how that impact would contribute to climate change.' I disagree," LaFleur wrote.

    Glick also contested FERC's approval of two other projects: Columbia Gas Transmission LLC's Eastern Panhandle Expansion project and Northwest Pipeline LLC's North Seattle Lateral Upgrade project.

    The Democratic dissents could foreshadow FERC debates over emissions in other pipeline reviews. That could halt projects if the Democrats continue to dissent until a Powelson replacement is nominated by President Trump and confirmed by the Senate.

    Glick has dissented from more projects in recent months, where LaFleur's opposition has been more measured or "pragmatic," as one analyst put it.

    "Although I take serious issue with the majority's views about how to conduct our environmental review ... in many cases I believe the pipelines at issue are needed and are in balance in the public interest," LaFleur said today.

    FERC Chairman Kevin McIntyre downplayed the effects of Powelson's departure on FERC business.

    "We'll work extra hard to try to get on the same page," he said. "I don't expect a big raft of 2-2 votes."

    The effects of the partisan split could also be dulled by the fact that only around 5 billion cubic feet per day of gas projects set to go online before 2022 are awaiting final approval from FERC, according to a research note from investment firm B. Riley FBR Inc. The agency has approved more than three times that since regaining its quorum a year ago.

    In other matters, FERC finalized a rule aimed at ensuring that pipeline ratepayers feel the benefits of the major tax reform law that Trump signed in December.

    The rule requires pipeline operators to file new information to FERC and also gives them options for voluntarily addressing the tax cut, including filing rate reductions, committing to filing adjustments in the near future, explaining why it should not have to reduce rates, or taking no action.

    FERC also announced a new partnership with the Pipeline and Hazardous Materials Safety Administration aimed at speeding up FERC's reviews of liquefied natural gas exports, a process that has come under fire recently for delays within the agency.

    "The new collaborative procedures which will be implemented imminently will significantly reduce the time required to review LNG project applications by taking full advantage of the expertise of our federal partners at PHMSA," McIntyre said.

    https://www.eenews.net/greenwire/2018/07/19/stories/1060089745
    

    Return to headline | Return to top

19. Oil, Gas Industry Frustrated by Rejections to Steel Tariff Exemptions; Permian Pipeline Affected

    Jul 19, 2018 | Natural Gas Intelligence

    By Charlie Passut

    Officials with the American Petroleum Institute (API) said their member oil and gas companies are frustrated with the process that the Trump administration established to request exemptions to tariffs on imported steel, with several petitions -- including one for a pipeline to service the booming Permian Basin -- already rejected on vague grounds.

    Last March, the Department of Commerce outlined a procedure for the oil and natural gas industry to request an exemption from the 25% tariff on steel imports that took effect on March 8. The industry and its allies argue that specialty steel products used in pipelines and at liquefied natural gas (LNG) export facilities meet the criteria for an exemption because there is an insufficient supply of comparable products from domestic steel manufacturers.

    According to API, its member companies have so far submitted more than 80 petitions for an exemption. Of those, Commerce's Bureau of Industry and Security (BIS) has ruled on just 17 petitions -- granting eight and denying nine.

    "We've had member companies have some of their petitions approved, and those same companies have had some of their petitions denied," API’s Aaron Padilla, senior adviser for international policy, told NGI on Monday. "They're still working to discern the difference and distinction that Commerce has drawn between petitions for very similar products from the same supplier and the same country."

    Padilla said in some cases, API members have laid both approved and rejected petitions side-by-side and found few differences. The BIS has given a "very limited explanation" for why it rejected the petitions.

    "The reason that's been given has been that there was insufficient information provided, that it was not a complete submission," Padilla said. Separate reviews by both API and member companies have shown that "it's not clear" where the insufficiencies lie. The companies "are individually in the process" of contacting Commerce and the BIS for clarifications.

    Plains Says Rejection 'Unjust'

    According to BIS records, Plains All American Pipeline LP's request for a tariff exemption was denied on Monday. Plains requested an exemption in advance of building the Cactus II Pipeline, a $1.1 billion project designed to connect the Permian Basin in West Texas to the Corpus Christi area in South Texas with a takeaway capacity of 585,000 b/d.

    Plains' filing showed that it had previously contracted Greece’s Corinth Pipeworks Pipe Industry SA for 26-inch outside diameter (OD) high frequency welded (HFW) pipe needed for the project. Plains said Corinth was "one of only three mills in the world” capable of producing the pipe, and the other two mills are in China and Japan. "There is no production of such pipe within the U.S.," Plains said.

    "Even in the hypothetical scenario that a domestic mill was able to technically manufacture 26-inch OD HFW pipe, if a purchase order was issued today, the mill would not likely be able to meet the pipeline system's completion targets, particularly given that the first delivery...is required in June 2018," Plains said. "Furthermore, the foregoing statement does not even take into consideration a mill's current delivery commitments for previously placed orders. Months of advanced planning are needed in such large construction projects."

    BIS records show that Berg Steel Pipe Corp., which is based in Panama City, FL, had objected to the request. Berg said while no domestic steel manufacturer could produce 26-inch OD HFW pipe, there were many domestic sources for an alternative product: double submerged arc welded pipe, in both longitudinally welded and helically welded forms.

    Plains called the rejection "unjust" because it had ordered the steel in late 2017, before the tariffs were enacted. The company said it would review its options to challenge the decision, adding that the project would "move forward as planned."

    "Collecting a tariff on steel pipe orders for projects like this constitutes a tax on the construction of critical U.S. energy infrastructure, which is a significant unintended consequence of current trade policy and risks U.S. energy security and American jobs," a Plains spokesperson told NGI on Tuesday. "The steel tariff exclusion request review process is flawed and does not allow for an applicant to effectively engage in the review process."

    The review process, according to Plains, “is opaque to applicants and appears to rely on comments that are not required to be substantiated, and on a review of undisclosed data by staff without meaningful interaction with the applicants. The process is further complicated by more than 10,000 exclusion requests and associated documents needing attention in a limited window of time. This process must be improved to best serve the interests of our country."

    API Executive Vice President Marty Durbin said the decision by BIS "ignores the legitimate and critical needs of the natural gas and oil industry for global sourcing of specialty steel products essential to delivering energy to the American families.

    "The administration's decision-making is not serving the interests of energy consumers and American businesses, as these tariffs are expected to increase the cost of sourcing steel for the oil and natural gas companies which in turn could increase the cost of energy to consumers. This is not the way to achieve the administration's commendable goal of U.S. energy dominance."

    The crimp in Plains' plans is particularly detrimental to Permian development. Despite its current status as the most active oil and gas basin in the United States, the Permian is hampered by pipeline bottlenecks. While IHS Markit predicted last month that Permian crude oil production would reach 5.4 million b/d in 2023, the Organization of the Petroleum Exporting Countries opined that the pace of U.S. unconventional growth would "slow down considerably" starting in 2H2018, largely because of takeaway capacity constraints in the Permian.

    Trade Wars Likely to Continue

    The White House said the tariffs are justified on national security grounds, citing Section 232 of the 1962 Trade Expansion Act and Section 301 of the Trade Act of 1974. Last week, the administration unveiled a list of $200 billion in Chinese-made products that could be subject to a new 10% tariff. The list included LNG and offshore oil and natural gas drilling and production platforms. Beijing vowed to immediately retaliate, should the new tariff take effect in late August or early September.

    API’s Chris Kelley, director of federal relations, said he thought the widening trade wars with China, Canada, Mexico and the European Union, would continue.

    "They're putting a lot of companies through a lot of problems, heartache and paperwork," Kelley said. "It seems to be a very arbitrary process that the Department of Commerce is instituting."

    Kelley said it appeared unlikely that the White House had instituted the tariffs simply as a way to gain leverage over America's trading partners and get better trade deals. "I couldn't imagine why they would go through with the rulemaking process, the country exemption process and the product exclusion process, which are very burdensome, complicated and challenging for companies to go through, if they weren't serious about it. We haven't seen any indication that they're going to let up on these particular issues. This seems like a trend that will continue."

    Padilla added that the domestic steel industry is not on the same side as the oil and gas industry over the tariffs.

    "The petitions are the clearest cut examples of specialty steel products that our member companies cannot source from U.S. manufacturers," Padilla said. "Yet many of those petitions are still attracting objections from U.S. steel manufacturers, who are stating that they can manufacture a product that's close enough in the specifications that our member companies require.

    "That would indicate that there's probably not going to be a common understanding of what is procurable domestically versus what is only procurable from outside the United States. On some products where U.S. manufacturers have objected, they have a different point of view than our member companies."

     http://www.naturalgasintel.com/articles/115110-oil-gas-industry-frustrated-by-rejections-to-steel-tariff-exemptions-permian-pipeline-affected

    Return to headline | Return to top

20. Regulators Hatch Plan to Improve Gas Without More Pipelines

    Jul 19, 2018 | E&E Energywire

    By Saqib Rahim

    New York has already begun to make grid upgrades that don't use wires. Now it's looking to make gas-system upgrades without pipelines.

    The New York Public Service Commission last week signed off on the first phase of a program, to be piloted in the New York City metropolitan area, to make more efficient use of the city's ever-tightening gas supply.

    Instead of building large new gas pipelines to the city, as some have recommended, the program proposed by Consolidated Edison Inc. would first explore a variety of other options to manage the supply that already exists. These could include old-fashioned efficiency upgrades, new technologies like heat pumps or paying people not to use gas at critical times.

    If it works — and Con Ed isn't yet sure that it will — it could represent a new business model for the industry, the PSC said.

    "The Smart Solutions Program proposed by Con Edison is a significant departure from its traditional utility business model, and represents the first step in a more holistic view of a gas utility's obligation to meet the needs of its customers," it said in an order.

    For New York, it also represents a desire to step further away from a pipeline industry that's been clamoring to get into its lucrative markets.

    New York is a major gas consumer, with more than half of its power supply able to burn the fuel and with gas increasingly replacing fuel oil in buildings. In New York City, that's had significant air quality benefits. City policies are pushing more conversions, and the growing city economy is expected to further push energy demand, especially in the coldest winter and hottest summer days.

    Con Ed delivers power to much of the metro area, but it also has 1.1 million gas customers. Con Ed has forecast that peak gas demand, which has already grown over the last decade, will grow by one-fifth in the next two decades.

    That's why Con Ed, as well as some business groups, had initially expected to address this growth with new gas pipelines that would link New York to the rest of the U.S. market.

    But in recent years, regulators under Gov. Andrew Cuomo (D) have rejected permits for several major gas projects, making Con Ed much less certain that it can bank on these supplies.REV for gas?

    Con Ed still forecasts a shortfall in pipeline capacity by 2023 that will limit its ability to meet customer demand. But in the Smart Solutions program, the company offered a raft of other ideas that could alleviate the problem.

    The program has many thematic similarities to Cuomo's "Reforming the Energy Vision" (REV) plan, which is focused on the power grid. That program has been pioneering in its concept of "non-wires alternatives": actions that strengthen the grid without using traditional infrastructure.

    For gas, some of Con Ed's ideas are scale-ups of the company's existing efficiency programs. Others would seek to encourage deployment of machines that run on electricity instead of gas, like heat pumps. And for part of its work, a part that's not yet finalized, Con Ed will simply request ideas from the marketplace.

    "Give Con Ed credit for coming up with this package of solutions," said Natalie Karas, senior regulatory attorney at the Environmental Defense Fund. "If it does ultimately rely on these non-pipeline alternatives, this serves as an important example for how utilities can approach these questions going forward."

    "What we've said is that really the utility should focus on all of the environmentally beneficial options that are on the table and look at gas expansion only as a last resort," said Miles Farmer, a staff attorney with the Natural Resources Defense Council. "This is what utilities should be doing across the country, is first looking at alternative solutions to see if they can meet the need."

    The PSC approved some of Con Ed's proposed measures last week while saying others will require revision. However, it clarified that it intends to explore similar measures for utilities elsewhere in New York state.

    The PSC said there should be no additional bill increases associated with the program through 2020.

    Con Ed, however, has said that it's inexperienced with these measures as yet. If they're not as effective as hoped, the company argued, it would be useful to have new pipelines as a fallback option.

    In its petition to the PSC, ConEd asked whether it could develop a "parallel" program for new pipeline infrastructure that could be ready by the winter of 2023-24. If this infrastructure fell through or wasn't needed, the company asked, it should be able to recover some of the development costs.

    The PSC denied that request, saying risk is part of the pipeline business and that ratepayers shouldn't have to assume the risks associated with this one.

    https://www.eenews.net/energywire/2018/07/19/stories/1060089561
    

    Return to headline | Return to top

21. Colorado Governor Addresses Orphan Well Safety in Wake of 2017 Home Explosion

    Jul 19, 2018 | Natural Gas Intelligence

    By Richard Nemec

    Colorado Gov. John Hickenlooper on Wednesday signed an executive order to address safety concerns surrounding 260 orphan wells and 360 orphan sites, a direct result of the review ordered last year following a flowline explosionthat killed two people in Firestone, CO.

    Last year's tragedy "compels us to improve the safety of Colorado's oil and natural gas industry," Hickenlooper said. The order sends a "strong statement of unity" following the home explosion in April 2017.

    In last year's incident, an abandoned line, which ran about 170 feet from a nearby Anadarko Petroleum Corp. well to the foundation of the home in Firestone, ignited, killing Mark Joseph Martinez, 42, and his brother-in-law, Joseph William Irwin III, also 42. Martinez's wife Erin Martinez was critically injured, while her son, 11 at the time, was treated and released.

    In response, Anadarko temporarily shut in 3,000 oil and gas wells to test the lines, and other operators followed suit.

    Hickenlooper followed with a series of regulatory proposals. Lawmakers in February approved what some consider to be the most comprehensive rules addressing oil and gas flowlines/infrastructure in the nation. In April, lawmakers also passed a bill to deal with orphan well cleanups.

    The new executive order reduces to zero the backlog of high- and medium-priority orphaned wells and orphaned sites; engages the oil and gas industry in plugging, remediation and reclamation; and provides funding to establish financial assurance that prevents future orphaned wells and sites.

    A list of all the known sites is to be made public by Aug. 1 and updated annually by the Colorado Oil and Gas Conservation Commission (COGCC).

    The executive order "will accelerate our ongoing work to properly plug and safeguard orphaned wells," said COGCC Director Julie Murphy. "This approach is designed to address the issue comprehensively through effective prevention of future orphaned locations."

    The energy industry supported Hickenlooper's action.

    "The order directs the COGCC to use the money it already collects from oil and gas taxes to plug and reclaim these wells, which makes a great deal of sense," said Colorado Oil and Gas Association CEO Dan Haley.

    Colorado Petroleum Council (CPC) Executive Director Tracee Bentley said Hickenlooper had worked with the industry "to enact long-term solutions to this and any such issues facing our state."

    However, Environmental Defense Fund’s Dan Grossman, national director of state programs, said while he was encouraged by the action, it does not go far enough. "Leaks and catastrophic blowouts can result from poorly constructed and maintained oil and gas wells,” he said.

    http://www.naturalgasintel.com/articles/115109-colorado-governor-addresses-orphan-well-safety-in-wake-of-2017-home-explosion
    

    Return to headline | Return to top

22. TransCanada Gas Line Returns to Service After Explosion

    Jul 19, 2018 | E&E Energywire

    By Jenny Mandel

    Pipeline operator TransCanada Corp. returned its Leach XPress natural gas line to service this week after an explosion shut it down in June, but the company has not publicly responded to a report by safety regulators that other points on the line may be vulnerable to the same danger.

    TransCanada reportedly returned the line to service on Sunday. Leach XPress went into service early this year with a top carrying capacity of 1.5 billion cubic feet of gas per day, raising questions about why the line quickly failed.

    Last week, the Pipeline and Hazardous Materials Safety Administration issued a "notice of proposed safety order" to TransCanada subsidiary Columbia Gas Transmission LLC, warning that the regulator intends to require enhanced monitoring along 50 miles of the pipeline in West Virginia and Ohio in response to the risk of land subsidence.

    TransCanada has said that a landslide may have caused a June 7 explosion in Marshall County, W.Va., that blew an 83-foot section of pipe into the air, released 165 million cubic feet of natural gas and triggered a fireball visible for miles around (Energywire, July 13).

    PHMSA identified six other "areas of concern" along a 50-mile segment of the 130-mile pipeline where flyover data showed "the existence of large spoil piles, steep slopes, or indications of slips." The agency proposed a requirement that TransCanada use strain gauges and other monitoring techniques for signs of another potential failure.

    "The continued operation of the affected segment, without corrective measures, poses a pipeline integrity risk to public safety, property and the environment," the regulator said in the proposed safety order.

    TransCanada did not respond to questions by phone and email this week about the operational status of the pipeline or how the safety risks have been addressed. PHMSA referred all questions to TransCanada.

    Under the terms of PHMSA's safety order, the company has 30 days to respond before any new requirements go into effect.

    In 2016, the Interstate Natural Gas Association of America issued a report on constructing pipelines in steep and rugged terrain, with the subtitle "Lessons Learned From Constructing Pipelines in West Virginia."

    The 134-page study, written by a technical contractor based on its experience building the Ohio Valley Midstream pipeline for the developer Williams Cos., addresses planning and engineering challenges associated with working in areas prone to land movement.

    The Leach XPress pipeline is just one of several projects recently completed or under construction in Pennsylvania, West Virginia and Ohio, responding to a surge of natural gas production in the region. The Mountain Valley and Atlantic Coast pipelines pass through similarly steep and geologically challenging terrain, and opponents say the developers have underestimated the challenges that landslides can pose in the area.

    https://www.eenews.net/energywire/2018/07/19/stories/1060089567
    

    Return to headline | Return to top

Chemical Security News

23. Rolling Back Chemical Security Regulations is Risky Business (Opinion)

    Jul 19, 2018 | Houston Chronicle

    By Stephanie Thomas and Juan Parras

    First with scandalous Scott Pruitt and now former coal lobbyist Andrew Wheeler at the helm of the U.S. Environmental Protection Agency, the foxes are having a feast in the henhouse. What’s on the menu? Rule rollbacks, including rollbacks of the chemical disaster rule. The 2017 rule was a response to the West Fertilizer Company explosion four years prior that killed 15 people, injured 200 and damaged 350 homes. The rule created much-needed protections for first responders, workers and communities that border chemical and industrial plants.MOST POPULARPatrick Beverley on leaving the Rockets, his Warriors hatred and learning from James HardenAstros' Alex Bregman gives All-Star Game MVP car to his momWife testifies her husband confessed to pulling the trigger in one of two Houston-area ‘honor killings’Suburban restaurants to try during Houston Restaurant WeeksHines launches ‘next generation’ office towerAccused Russian agent traded sex for influence, prosecutors sayU.S. authorities revoke visa for top Citgo executive

    Now the EPA intends to take away these health and safety protections. The proposed rollbacks would eliminate requirements for an independent assessment of a plant’s compliance with safety rules to be conducted after an incident and for facilities to analyze the causes of a catastrophic chemical release. The EPA also has proposed to eliminate analyses designed to identify safer materials and processes, which would save lives and protect human health.

    The EPA also will repeal a requirement to provide information about chemical hazards to first responders and the public. This information can help people protect themselves from exposure to dangerous chemicals. During Hurricane Harvey, explosions at the Arkema facility in Crosby exposed first responders to fumes that they say were hazardous to their health. First responders reported that they did not have information about the chemicals they were exposed to. The 2017 chemical disaster rule would help give emergency responders the information they need to best protect themselves and their communities.

    The EPA justifies repealing the rule by pointing out that it will save the chemical industry $88 million per year. But this is shortsighted; a single chemical disaster can cost upward of $200 million. Betting on disasters never happening is a losing wager. The EPA is mandated to protect public health and public safety, not the chemical industry’s pocketbooks.

    The rollbacks of the chemical disaster rule will, by the EPA’s own assessment,harm low-income and minority fenceline communities more than other communities. In the greater Houston area and along the Houston Ship Channel, communities such as the Manchester neighborhood, Clinton Park, Galena Park, North Pasadena, Channelview, Deer Park and Baytown are in the greatest danger. Removing these rules will affect many Texans and other communities throughout our nation that live in the shadows of plants.

    Pruitt knew this, and Wheeler is continuing his negligent legacy despite what affected communities think. In its Regulatory Impact Analysis, the EPA states that it did not “conduct additional engagement activities associated with this proposed rulemaking” because it “does not impose any additional cost on affected communities.” The EPA seems fixated on the idea of “costs” as easily calculated tangible items. This ignores other costs that are measurable but take a bit more work to tease out, such as health care or disaster recovery costs, and the intangible cost of living in fear for one’s life. The EPA didn’t hear from communities because the only public meeting about the rollbacks was held in Washington, D.C.

    While these communities were denied the opportunity to testify, industry interests have been well-represented within the agency. The upper ranks of the EPA are filled with current or former industry executives, lobbyists and litigators. Peter Wright, senior attorney for DowDuPont, is the EPA’s nominee for Administrator of the Office of Land and Emergency Management, the office that oversees chemical plant safety rules. Furthermore, the EPA has hired him on in advance of his confirmation, raising concerns about Wheeler continuing Pruitt’s shady leadership.

    Is it any surprise that Wright’s company would be among those saving millions if the rule is rolled back? DowDuPont and its subsidiaries own more than 50 facilities that would have to comply with the 2017 chemical safety rules. The industry foxes have truly taken over the henhouse.

    Contact your city and county representatives to enlist their support in protecting our communities. And take action by commenting by July 30th on the EPA’s proposal to eliminate chemical safety protections. Visit Regulations.gov and search for Docket ID EPA-HQ-OEM-2015-0725. Tell the EPA to protect the health and wellbeing of Texas communities, not pad the profits of predatory corporate polluters.

    Thomas, Ph.D., is an organizer with Public Citizen , a nonprofit organization that champions the public interest on energy, the environment and ethics in Texas. Parras is the founder and executive director of Texas Environmental Justice Advocacy Services.

    https://www.houstonchronicle.com/opinion/outlook/article/Rolling-back-chemical-security-regulations-is-13085922.php
    

    Return to headline | Return to top

24. New York Steam Pipe Blast Raises Asbestos Contamination Worry

    Jul 19, 2018 | Reuters (In The New York Times)

    By Peter Szekely and Tea Kvetenadze

    An early-morning steam pipe explosion on Thursday in New York, that sent a plume of vapor spewing into the air for hours, caused only minor injuries but may have left people and building facades contaminated with asbestos, officials said.
    

    The underground steam line that erupted into an urban geyser near Manhattan's sharply angled Flatiron Building dates back to 1932 and could be coated in asbestos, which has been linked to deadly lung cancers, officials said.

    Debris from the explosion will be tested for the chemical which was used as insulation, they said, urging people who may have been contaminated to shower and place their clothes in a bag.

    "The big problem that we have to consider is asbestos," city Emergency Management Commissioner Joseph Esposito said at a news briefing. "The big part of this will be the cleanup."

    The entire area around the "hot zone" of Fifth Avenue and West 21 Street will likely need to be decontaminated as a precaution over the next several days, during which time traffic will be diverted, Esposito said.

    Fire Commissioner Daniel Nigro said the pipe blast, which opened a crater in the street during the city's rush hour at 6:40 a.m. EDT (1040 GMT), caused minor injuries to five people, including a police officer, who did not need hospitalization.

    Twenty-eight surrounding buildings were evacuated and about 100 firefighters and some civilians will be decontaminated if samples of debris test positive for asbestos, Nigro said.

    "We are operating as if the samples will come back positive," he said.

    The force of the blast may have damaged other subterranean lines in the vicinity that carry water, gas and electricity, all which have been shut down until repair work is done, Nigro said.

    Consolidated Edison Inc, the local power company, stopped the flow of steam by mid-morning. The cause of the blast is being investigated, officials said.EDITORS’ PICKSThese Transgender Recruits Are Ready. The Military Isn’t.The Artist Is Not PresentShown Evidence of Meddling, Trump Still Raises Doubts

    ADVERTISEMENT

    The steam pipes are part of a 136-year-old system that Con Ed said is the nation's largest steam network, stretching from the southern tip of Manhattan to 96th Street.

    Although vehicular traffic was snarled in the immediate area because of street closings, other commuting disruptions were minimal.

    Two subway lines were bypassing a stop at 23rd Street more than two hours after the blast due to street closures, the Metropolitan Transportation Authority said.

    https://www.nytimes.com/reuters/2018/07/19/us/19reuters-usa-new-york-steam-pipe.html
    

    Return to headline | Return to top

25. DHS, White House Diverge on Russian Threat

    Jul 19, 2018 | E&E Energywire

    By Blake Sobczak

    The Department of Homeland Security is kicking off a series of briefings this month on Russian cyberthreats to U.S. infrastructure networks, even as President Trump has seesawed on the urgency of the threat.

    Trump yesterday appeared to say Russia is no longer targeting the United States after a reporter asked him whether he believes Russia poses a threat, though White House spokeswoman Sarah Huckabee Sanders later rolled back the remark.

    "The president was saying 'no' to answering questions," she said. "The president and his administration are working very hard to make sure that Russia is unable to meddle in our elections as they have done in the past and as we have stated."

    The muddled exchange came on the heels of a one-on-one meeting between Trump and Russian President Vladimir Putin in Helsinki on Monday. At a joint press conference after the summit, Trump cast doubt on the U.S. intelligence community's conclusions about Russian interference in the 2016 U.S. presidential election, pointing to Putin's "extremely strong and powerful" denial (Energywire, July 17).

    Trump later affirmed his "GREAT confidence" in American intelligence professionals, but not before several lawmakers and experts lambasted his comments in Helsinki.

    Cybersecurity experts have stressed that Russian hackers pose a clear danger not just to U.S. election systems, but to the power grid and other vital networks.

    "Absolutely there's a Russian threat to critical infrastructure," said Dave Weinstein, vice president of threat research at industrial cybersecurity firm Claroty and former chief technology officer for New Jersey. "They have demonstrated their capability, and that capability has been reported on not just by the U.S. government, but also Western allies."

    In late 2015, Russian hackers believed to be affiliated with Moscow's GRU intelligence agency broke into computers at three electric utilities in Ukraine, cutting off the lights to several hundred thousand people on a chilly December night. The hackers struck again the following year, knocking out power to several hundred thousand people for hours after disabling a substation north of Kiev.

    DHS has warned that Russian hackers have targeted U.S. utilities, manufacturing plants and aviation companies, among other companies. The agency is now leading several briefings on the threat, which the FBI and DHS publicly linked to the Russian government in March. The first of four unclassified online briefings is scheduled for next Monday.

    DHS announced yesterday it would also host a cybersecurity summit in New York at the end of the month, where agency experts are likely to discuss the response to a prolific Russian hacking group variously dubbed "Sandworm," "Fancy Bear" or "APT28."

    "With the majority of critical infrastructure owned and operated by the private sector, it is essential that we maintain strong partnerships between DHS and the private sector to underpin our collective defense against the evolving threats we all face," DHS Secretary Kirstjen Nielsen said in a statement yesterday.

    On Friday, the Justice Department unveiled an indictment alleging that 12 members of Russia's GRU hacked Democratic computers during the run-up to the 2016 U.S. presidential election, later distributing the stolen material.

    Trump said yesterday that he confronted Putin about election meddling during their one-on-one meeting, telling CBS that "I let him know we can't have this. We're not going to have it."

    Weinstein said the discussions between the two leaders could lead to a "tactical pause" in Russia-linked hacking, though by no means an end to the long-term threat.

    "Now that we've had a meeting between the heads of states, they're [Russia] going to be much more aware of where that proverbial red line is," said Weinstein.

    He suggested Russian hackers aren't likely to deliberately disrupt U.S. critical infrastructure, though they may position themselves in key networks anyway, ready to wreak havoc in potential future conflicts.

    He pointed to the Obama administration's efforts to curb suspected Chinese hacking activity during negotiations with Chinese President Xi Jinping three years ago (Greenwire, Sept. 28, 2015).

    "When we were engaged with high-level discussions with China regarding their theft of [U.S.] intellectual property, we observed a pause" in hacking activity, Weinstein said. "Then time passed, and they went back to their old ways."

    https://www.eenews.net/energywire/2018/07/19/stories/1060089563
    

    Return to headline | Return to top

Transportation and Infrastructure News

26. DHS Spending Bill Heads for House Markup

    Jul 19, 2018 | Politico

    By Stephanie Beasley

    SHOWTIME AT RAYBURN: The House Appropriations Homeland Security Subcommittee is slated to mark up a $51.4 billion DHS spending bill today. The bill would lay out a $7.3 billion budget for TSA that includes money for the agency to purchase 240 new machines for screening carry-on baggage and to deploy 50 additional canine teams for passenger screening. Also included in the bill:

    — $100 million for public transportation, railroad and over-the-road bus security assistance, including $10 million specifically directed to Amtrak;

    — $100 million for port security grants;

    — $223 million to help Customs and Border Protection deploy more "non-intrusive" X-Ray scanners to inspect vehicles at the U.S.-Mexico border. CBP is already using the technology at some ports of entry and at public events, such as this year’s Super Bowl; and

    — $1.4 billion to help the Coast Guard modernize its fleet and purchase new vessels, including six fast response cutters and an offshore patrol cutter.

    What to expect: Though there are lots of juicy morsels in the bill for us transportation nerds to chew on, we expect that much of the debate will focus elsewhere. And by elsewhere, we mean on the southern border. Shortly after Republicans released the bill Wednesday, full committee ranking member Nita Lowey (D-N.Y.) and Homeland Security Subcommittee ranking member Lucille Roybal-Allard (D-Calif.) issued a statement criticizing the inclusion of $5 billion for President Donald Trump’s border wall construction plan and calling it an example of “wasteful spending.”

    IT’S THURSDAY: Thanks for tuning in to POLITICO’s Morning Transportation, your daily tipsheet on all things trains, planes, automobiles and ports. Don’t forget to send tips, scoops and song requests to @Steph_Beasley or sbeasley@politico.com.

    Felt the same way when I ain’t pull up in nothing / CTA short, balling on a budget / Riding in this hooptie 'till the next thing coming, aye (h/t Martine Powers of The Washington Post)

    LISTEN HERE: Follow MT’s playlist on Spotify. What better way to start your day than with songs (picked by us and readers) about roads, rails, rivers and runways?

    View the latest POLITICO/AARP poll to better understand Arizona voters over 50, a voting bloc poised to shape the midterm election outcome. Get up to speed on priority issues for Hispanic voters age 50+, who will help determine whether Arizona turns blue or stays red.

    What role will Hispanic voters over 50 play in Arizona this fall? Read POLITICO Magazine's new series "The Deciders" which focuses on this powerful voting bloc that could be the determining factor in turning Arizona blue.

    A JOINT EFFORT: House Homeland Security Chairman Michael McCaul (R-Texas) introduced a bill (H.R. 6401 (115)) that would give the departments of Justice and Homeland Security new counterdrone authorities. It's similar to a Senate committee-approved and White House-endorsed measure (S. 2836 (115)) that also would grant the departments relief from the Title 18 law forbidding the destruction of aircraft and allow them to develop technology with FAA to identify, track and intercept any drone that might pose a national security threat. Rep. Vicky Hartzler (R-Mo.), a co-sponsor on the House bill, introduced a similar measure earlier this year. However, her version (H.R. 5366 (115)) would take the additional step of requiring FAA to issue a final rule on remote identification, which would establish standards that both the agency and some industry groups have said could help distinguish the “good” drones from the “bad.”

    PANDA WATCH: RIDE ALONG EDITION: More than just the Senate’s self-driving car bill could ride on the FAA reauthorization, Commerce Chairman John Thune (R-S.D.) acknowledged Wednesday. “It would only be bills that are sort of germane and relevant to our committee’s jurisdiction,” he told reporters. “There’s a reauthorization, I think, for NTSB. There’s like some TSA amendments, some things that we’ve been trying to get done for a while.” The panel approved the NTSB reauthorization (S. 2202 (115)) in December.

    Watch it: Meanwhile, the committee’s top Democrat, Sen. Bill Nelson of Florida, hopes no Republican senator will try to touch the bill’s tax title. “Don’t go using that for other purposes,” like “technical corrections” to the recent tax law (H.R. 1 (115)), he said. “I’m sure somebody’s thinking about that someplace. But they can’t pass it without 60 votes in the Senate,” Nelson said. He added that floor time for the FAA bill could last “less than a day.”

    COMMERCE TO HEAR LOUD OPPOSITION TO AUTO TARIFFS: Just one of out 45 witnesses today is expected to testify in favor of imposing tariffs on autos and auto parts during a daylong Commerce Department hearing today on whether imports of those goods pose a threat to national security. The lone exception is Jennifer Kelly, research director of the United Automobile Workers, which revealed its support in public comments filed last month with the department. Nearly all of the 44 other witnesses filed comments opposing Trump’s threat to impose a 20 or 25 percent duty on foreign-made autos and parts. Those represented include Ford, GM and Fiat Chrysler, as well as foreign brands such as Mercedes-Benz, Honda, Toyota, Hyundai, Volkswagen, Nissan and Subaru.

    PILOTS GONE WRONG: Pilots who break DOT drug and alcohol rules (or refuse a test) could get pulled out of the air faster — and get back in faster — thanks to a new expedited settlement policy FAA proposed Wednesday. Currently, the agency has to undertake a lengthy investigation before revoking a pilot’s certificates, after which a pilot can’t re-apply for at least a year. As Tanya reports, speeding up the revocation process also speeds up the re-certification, as long as pilots are otherwise in good standing and it’s their first offense.

    BILL NELSON 1, NHTSA 0: The Florida Democrat's relentless criticism of NHTSA for its lackadaisical management of the Takata recall effort was vindicated Wednesday by a DOT inspector general report echoing those concerns. “NHTSA’s lack of internal accountability and risk-based oversight inhibits the agency’s ability to meet its safety mission,” the IG said. Tanya has more for Pros here.

    NOW ON THE BOOKS: FTA is finalizing two congressionally mandated rules today to round out the safety oversight authority that lawmakers first granted the agency in 2012. One rule requires states and some transit systems to develop Public Transportation Agency Safety Plans based on the aviation industry’s approach to safety, known as Safety Management Systems. Acting Administrator Jane Williams said the rule won’t initially apply to about 2,000 small and rural systems — which FTA says represent about 3 percent of total transit trips taken per year — because they’re seen as low-risk compared with bigger agencies, but she added the agency will monitor their performance. The second rule cuts the minimum number of training hours required for federal and state transit safety auditors and related oversight personnel.

    GOT YA MONEY: FRA is issuing a notice of funding opportunity today for the rest of the $300-plus million in rail safety improvement grants that Congress provided for fiscal 2018, months after lawmakers began taking the agency to task for dragging its feet on that money and other grants. These grants can be used to cover the costs of rail upgrades that increase safety and efficiency, including congestion mitigation efforts, grade-crossing work and positive train control systems. (FRA issued a separate notice in May for $250 million of these grants that Congress set aside specifically for PTC, though that level was just a floor.) Lauren has more here.

    KEEPING AN EYE OUT: Oakland International Airport today announced that it had installed new equipment to screen employees for metallic and nonmetallic items that could present a threat. The screening technology, which is manufactured by Evolv Edge, is “physical threat detection and prevention system powered by artificial intelligence,” according to a press release. TSA’s Innovation Task Force announced earlier this year that it had selected the Oakland airport as an “innovation site” permitted to pilot new technologies.

    BOOM: NASA has inked a deal with French researchers to study how to predict where people would hear sonic booms if supersonic planes flew above them. “This could lead to alleviating the effects of the loud noise caused by sonic booms,” NASA said in a release Wednesday. The goal of the research is to “make supersonic passenger flights over land practical.”

    MT MAILBAG: A bipartisan group of 149 House members is telling Commerce Secretary Wilbur Ross to put the efforts of his department somewhere other than an investigation into whether imports of automobiles constitute a national security risk. “We support the Department of Commerce as it seeks a level playing field for our manufacturers and workers in the global marketplace and penalizes bad actors,” the lawmakers wrote in a letter Wednesday.

    SHIFTING GEARS: Ty Cobb, former special counsel to Trump, has joined Safe Ports Regional Gateway Board of Advisors. Breanna Deutsch has left her post as press secretary for Sen. Steve Daines (R-Mont.) to join The Heritage Foundation as communications manager. Sean Joyce has started his own firm — Atlas Crossing — but will continue as the executive director for the Safer Hauling and Infrastructure Protection Coalition. Joyce is a former chief of staff to Chief Deputy Whip Patrick McHenry (R-N.C.) and senior staffer for Rep. Bill Shuster (R-Pa.).

    THE AUTOBAHN:

    — “Uber to launch $1M congestion pricing campaign.” POLITICO New York.

    — “Test track proposed for Illinois transportation lab.” The Associated Press.

    — “Tentative construction options unveiled for Maryland’s ambitious plan to widen the Beltway and I-270.” The Washington Post.

    — “'Lifeline' stretch of California's highway 1 reopens months after massive mudslide.” NPR.

    THE COUNTDOWN: DOT appropriations run out in 74 days. The FAA reauthorization expires in 74 days. Highway and transit policy is up for renewal in 805 days.

    https://www.politico.com/newsletters/morning-transportation/2018/07/19/dhs-spending-bill-heads-for-house-markup-284283
    

    Return to headline | Return to top

27. Port Security Program in Chicago to Focus on Maritime Environment’s Physical & Cyber Threats

    Jul 19, 2018 | American Journal of Transportation

    21st century seaports are faced with a seemingly endless list of urgent physical threats, ranging from acts of terrorism, energy supply disruptions and border protection, to smuggling illegal drugs and weapons. Cyber network threats are increasingly concerning since a cyber breach has the potential to allow vessels to be hijacked, pipelines ruptured, cameras blinded, and facility gates left open by individuals operating hundreds or even thousands of miles away.

    To address these concerns, the American Association of Port Authorities (AAPA) – the unified and recognized voice of seaports in the Americas – will hold its annual Port Security Seminar and Expo in Chicago, July 25-27. Program sessions include panels on maritime cybersecurity, Customs and Border Protection (CBP) staffing challenges and issues related to the Transportation Worker Identification Credential (TWIC), along with an FBI security update and discussions on the federal Port Security Grant program.

    The seminar attracts chief security officers from ports throughout the U.S., as well as solution providers from the port service industry.

    “This seminar promises to be extraordinary, featuring presentations by port and federal government officials, along with top subject matter experts, delving into newsworthy physical and cyber security implementation and funding issues at America’s ports. We’re particularly pleased to have representatives from the FBI, TSA, Coast Guard and Federal Emergency Management Agency on hand to share their perspectives on port security and funding challenges, and what’s being done to address them,” said AAPA Executive Vice President and General Counsel Jean Godwin.

    https://www.ajot.com/news/port-security-program-in-chicago-to-focus-on-maritime-environments-physical-cyber-threats
    

    Return to headline | Return to top

Environment News

28. House Passes Anti-Carbon Tax Resolution in Landslide

    Jul 19, 2018 | Houston Chronicle

    By James Osborne

    House Republicans easily passed a resolution Thursday declaring that a national tax on carbon dioxide emissions would be "detrimental" to the U.S. economy.

    More than 220 Republicans and six Democrats voted for the non-binding resolution, which had drawn support from a wave of conservative groups including the Koch brothers-back American Legislative Exchange Council and Americans for Prosperity.

    "We oppose a carbon tax because it would lead to less income and fewer jobs for American families," those groups wrote in a letter to Congress Tuesday.

    A carbon tax, designed to reduce carbon emissions in a bid to slow climate change, has been gaining growing support in some Republican circles, with former secretary of state James Baker, who served in the George H.W. Bush administration, meeting with White House officials last year in support of the concept.

    Rep. Carlos Curbelo, R-Florida, is expected to introduce legislation next week creating a carbon tax, with the backing of a long list of environmental groups.

    "Instead of taking options off the table, Congress should be debating how it can best position our country to lead the global transition to clean energy source," read a letter from groups including the Sierra Club and League of Conservation Voters.

    But with Republicans rising up in protest, the odds for that legislation getting passed seem ever slimmer. Thursday's resolution was introduced by House Majority Whip Steve Scalise, R-La., and Rep. David McKinley, R-W.V.

    https://www.chron.com/business/energy/article/House-passes-anti-carbon-tax-resolution-in-13088199.php
    

    Return to headline | Return to top

29. Ewire: House Approves Anti-Carbon Tax Resolution

    Jul 19, 2018 | Inside EPA

    The House on a mostly party-line vote has approved a non-binding resolution declaring carbon taxes to be “detrimental” to the economy, though with only a handful of Republicans refusing to support the measure, the GOP remained overwhelmingly opposed to such policy.

    The resolution, H. Con. Res. 119, sponsored by House Majority Whip Steve Scalise (R-LA), cleared the House July 19 on a 229-180 vote.

    Seven Democrats joined with 222 Republicans to support the measure, while six GOP lawmakers joined 174 Democrats in opposition. One lawmaker from each party voted “present,” while 17 lawmakers did not vote.

    When the House passed an identical resolution in the run-up to the 2016 election, it was approved on a 237-163 vote that saw no Republican defections.

    The most prominent Republican to vote against the Scalise measure is Rep. Carlos Curbelo (R-FL), the co-chairman of the House Climate Solutions Caucus who is slated July 23 to unveil legislation imposing a $23-per-ton carbon tax that would use the revenue to replace the federal gasoline tax, and for other climate-related purposes. The bill would also impose a moratorium on enforcing EPA's climate rules for stationary sources.

    Three other GOP “no” votes are members of the caucus: Reps. Brian Fitzpatrick (PA), Mia Love (UT), and Ileana Ros-Lehtinen (FL). In addition, two freshman lawmakers opposed the measure, Reps. Trey Hollingsworth (IN) and Francis Rooney (FL).

    However, several other prominent GOP members of the climate caucus supported the measure, including Reps. Elise Stefanik (NY) and Fred Upton (MI).

    Another Republican climate caucus member, Rep. Ryan Costello (PA), voted “present.”

    Democrats supporting the anti-carbon tax resolution include many members who often vote against their party on environmental issues: Reps. Sanford Bishop (GA), Henry Cuellar (TX), Vicente Gonzalez (TX), Connor Lamb (PA), Stephanie Murphy (FL), Tom O'Halleran (AZ), and Kyrsten Sinema (AZ).

    Rep. Michelle Lujan Grisham (D-NM) also voted “present” on the measure.

    Environmental groups had blasted the measure as a “tiresome” effort that would preclude a key policy to help address climate change, and Curbelo had argued it presents a “false choice” between protecting the environment and improving the economy.

    However, conservative and anti-tax groups strongly backed the resolution, and several oil and gas majors refused to weigh in on the measure, despite their general support for policies to put a price on carbon emissions.

    ExxonMobil, BP and Shell all declined to comment on the non-binding resolution, H. Con. Res. 119, that is slated for a House floor vote today, according to Axios.

    An Exxon spokesman told Axios that the company backs “carbon policies that would ensure a uniform a predictable cost of carbon across the economy.”

    While the companies might be simply opting to stay out of a dispute on a non-binding measure, the story suggests this could be “another example of a years-old dynamic: Companies voice support for the concept of carbon pricing, but won't throw their weight around to change the politics on Capitol Hill.”

    These oil companies support a carbon tax plan offered by a group of former GOP administration officials known as the Climate Leadership Council. That would impose a $40-per-ton price on carbon emissions and return revenues to households in the form of dividends.

    https://insideepa.com/daily-feed/ewire-house-approves-anti-carbon-tax-resolution
    

    Return to headline | Return to top