Preview Newsletter
PM ACC Clips Report - August 3, 2018
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(ACC Mentioned) Suck It Up! Plastic Straws May Soon Be a Thing of the past
Aug 3, 2018 | Film Journal
By Larry Etter
The National Association of Concessionaires is kicking off its 2018 Convention and Expo with the theme of disruption in the concession environment. -
China Announces $60B of US Goods for Tariff Retaliation
Aug 3, 2018 | AP (In The New York Times)
By Joe McDonald
China on Friday announced a $60 billion list of U.S. goods including coffee, honey and industrial chemicals for retaliation if Washington goes ahead with its latest tariff threat. -
Prior Scrutiny Needed for PFAS Substitutes, Expert Says
Aug 3, 2018 | Chemical Watch
Substitutes for per- and poly-fluorinated alkyl substances (PFASs) should be subjected to toxicity-focused "research scrutiny" before widespread use, an expert in environmental health and medicine has said. -
Groups Push for Changes to US Sunscreen Ingredient Approvals
Aug 3, 2018 | Chemical Watch
By Kelly Franklin
Consumer products groups have stepped up pressure on the US FDA to change course on its sunscreen ingredient approval process. -
Study Flags Small-Sized Microplastic and Pigment Particles in Bottled Water
Aug 3, 2018 | Chemical Watch
By Vanessa Zainzinger
Ninety percent of microplastic and pigment particles in bottled mineral water are smaller than the size most analytical measures pick up on, a German study has found. -
Brexit Could Leave UK Products with EU Ecolabel in Limbo
Aug 3, 2018 | Chemical Watch
By Clelia Oziel
UK products and services carrying the EU Ecolabel face an uncertain future after Brexit because their licence will no longer be recognised in European markets, officials and observers have said. -
Billions at Risk for U.S. LNG Exports on China 25% Tariffs
Aug 3, 2018 | Bloomberg
By Naureen S Malik
China is proposing a 25 percent tariff on imports of U.S. liquefied natural gas as retaliation for the Trump administration’s latest threat to impose levies on the Asian giant, a major blow to an emerging American business. -
China Threatens to Impose Retaliatory Tariffs on US Natural Gas
Aug 3, 2018 | The Hill - E2 Wire
By Timothy Cama
China is threatening to put big tariffs on imports of liquefied natural gas (LNG) from the United States. -
China's Plan for Tariffs on Us Natural Gas Threatens Trump's Energy Export Agenda
Aug 3, 2018 | Washington Examiner
By Josh Siegel
China's new list of $60 billion worth of tariffs on U.S. goods includes liquified natural gas, a threat that if fulfilled would be a major setback for the Trump administration’s ambition to flood the world with cheap natural gas as a key component of its energy dominance agenda. -
Colorado E&Ps Gird for Ballot Measure Fight
Aug 3, 2018 | Natural Gas Intelligence
By Richard Nemec
A new study in Colorado predicts catastrophic crippling of the oil and natural gas industry if a proposed ballot measure to lengthen the setback requirement for new drill sites to 2,500 feet from 500 feet is passed in November. -
Targa, NextEra, Marathon Team Up for Permian Gas Pipeline
Aug 3, 2018 | Houston Chronicle
By Jordan Blum
Houston pipeline firm Targa Resources said it is teaming up with a bevy of partners to build a 600-mile natural gas pipeline system from West Texas' Permian Basin to the Corpus Christi and Houston regions. -
Blast Debris Caused Wis. Refinery Fire — Safety Board
Aug 3, 2018 | AP (In E&E Greenwire)
An April fire at a Wisconsin refinery was caused by a piece of debris from an explosion hitting an asphalt storage tank, the U.S. Chemical Safety Board has concluded. -
EPA Hit with 2 Suits over Ozone Attainment
Aug 3, 2018 | E&E Greenwire
By Sean Reilly
EPA is facing two fresh lawsuits from Illinois Attorney General Lisa Madigan and other plaintiffs alleging that the agency illegally cut corners in declaring parts of several states in compliance with its 2015 ground-level ozone standard this spring. -
LCV Attacks Climate Caucus Members on Carbon Tax Vote
Aug 3, 2018 | E&E Greenwire
By Nick Bowlin
A green group is using Climate Solutions Caucus membership to hammer four House Republicans for recent votes against pricing carbon. -
Youth Climate Activist Fires Back at GOP Candidate: 'You're the Naive One'
Aug 3, 2018 | The Hill - E2 Wire
By Megan Keller
A young environmental activist is firing back at a Pennsylvania Republican gubernatorial candidate after he called a fellow climate activist "young and naive."
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(ACC Mentioned) Suck It Up! Plastic Straws May Soon Be a Thing of the past
Aug 3, 2018 | Film Journal
By Larry Etter
The National Association of Concessionaires is kicking off its 2018 Convention and Expo with the theme of disruption in the concession environment. As is customary, the trade association attempts to keep its members abreast of current trends with a multitude of programming and innovations. NAC has been prudent in tackling industry issues in the past, but the latest noise about plastic straws presents a new set of considerations. NAC is much like the rest of the world: To be or not to be? Do we contest municipal and environmental agencies over the issue of plastic straws, or do we allow the buying public to choose the course of action? The Government Relations Committee at NAC wants to be of service, so what can it do to support the membership and its constituents?
If you have been keeping touch with the news, there is a growing concern about marine debris. Many of the world’s eco-protective organizations have concluded that plastic straws are a contributing factor to pollution in the oceans. There is an enormous anti-plastic straw movement as a result of the toll on beaches and sea creatures. Americans alone dispose of approximately 1.6 straws per person each day. A very low percentage of straws are recycled. Plastic straws and stir sticks represent nearly 8% of all recovered plastics found on beaches and in the sea.
Corporate giants in the foodservice realm have begun initiatives that would alleviate the use of plastic straws in their drink service. Bon Appetit, a national pastry and café chain, announced it will eliminate the use of plastic straws in its 1,000 cafes in 33 states. Starbucks has also followed that plan, and intends to introduce recyclable lids, eliminating the dreaded “green” plastic straws. Southern Theatres and Movie Tavern stopped using plastic straws in their bars earlier this year. In July, Alamo Drafthouse, CEO Tim League announced that all of the corporate-owned theatres will do away with plastic straws and replace the sipping devices with biodegradable corn-based straws. Many other theatres are looking to follow suit, including mid-level circuits like Malco Theatres, which intends to eliminate plastic straws by the fall of this year. Most national circuits have remained mum on the issue.
New York City has been presented with legislation that would prevent restaurants from providing plastic straws; this would extend to sports venues such as Yankee Stadium, street vendors and, of course, cinemas. The bill would require any establishment that serves food and beverages to phase out plastic straws by 2020.
Malibu, California has banned or limited the use of plastic straws. One local restaurant has begun testing edible pasta as a tubing replacing straws. (Sounds like a wet noodle to me.) Miami, Seattle and Fort Meyers, Florida have also grappled with banning plastic straws.
This movement is not only happening in the U.S. but globally. The United Kingdom has formulated similar plans and is testing a return to paper straws. The problem with paper straws, though, is durability: Paper does not hold its texture or stability when introduced to liquids.
How does NAC fit into the equation? Does it support the elimination of plastic straws while still supporting the concession industry? How does it do both? Dan Borschke, executive VP of NAC, believes this is a slippery slope. Members report that plastic straws are the best device for consuming liquids. An added issue is manufacturing of paper straws. Manufacturers report they could not possibly make enough paper straws to serve the usage rate at this current time.
In truth, plastic straws represent a small percentage of plastics recovered, yet these items are small, float and end up on beaches where they are visible. Dianne Lofflin, the founder of StrawFree.org, told Daniel Victor of The New York Times, “I think a lot of people feel overwhelmed by the magnitude of the plastic problem. Giving up plastic straws is a small step and an easy thing for people to get started on.” That could be low-hanging fruit that gets picked, since the largest volume of plastics collected consists of plastic trash bags, cups, bottles and other vessels.
The easiest alternative seems to be allowing the patron to request a straw at their need. The American Chemistry Council has presented a lenient position advocating this precept. This notion places the responsibility on the consumer rather than the establishment. But isn’t that what theatres are already doing? Nearly all theatres have straw dispensers where patrons help themselves to straws. If plastics are a concern, why not decline the plastic straw? The argument might then become: Why are plastics even offered as an option? The pendulum swings back to the need for an instrument that will assist in consuming a beverage over time in a dark auditorium. There are certain beverages that are nearly impossible to consume without a plastic tube—namely, frozen carbonated beverages. NAC also understands the Americans with Disabilities Act and its requirement to support the needs of all people. Consequently, what position should a trade association take on a topic with such momentum?
Scott Defife, VP of government affairs for the Plastics Industry Association, is quoted in The New York Times saying, “We as a nation are not going to solve our marine debris issues by banning plastic straws in restaurants.” This might be the best comment to date. What came first, the plastic straw or the plastic cup?
Larry Etter is senior vice president at Malco Theatres and director of education at the National Association of Concessionaires.
http://www.filmjournal.com/columns/suck-it-plastic-straws-may-soon-be-thing-past
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China Announces $60B of US Goods for Tariff Retaliation
Aug 3, 2018 | AP (In The New York Times)
By Joe McDonald
China on Friday announced a $60 billion list of U.S. goods including coffee, honey and industrial chemicals for retaliation if Washington goes ahead with its latest tariff threat.
The Finance Ministry accused the Trump administration of damaging the global economy after it proposed increasing duties on $200 billion of Chinese goods in the second round of a dispute over technology.
"China is forced to take countermeasures," said a ministry statement. It said the retaliatory duties of 25 percent, 20 percent, 10 percent or 5 percent on 5,207 products will be imposed "if the U.S. side persists in putting its tariff measures into effect."
Washington imposed 25 percent duties on $34 billion of Chinese goods on July 6 in response to complaints Beijing steals or pressures companies to hand over technology. Beijing retaliated by imposing similar charges on the same amount of U.S. products.
White House press secretary Sarah Huckabee Sanders countered by telling reporters Friday that "instead of retaliating, China should address longstanding concerns about its unfair trading practices."
Earlier Friday, a Chinese foreign ministry spokesman called on Washington to "come to its senses" and settle the dispute.
Chinese leaders have offered to narrow their politically sensitive trade surplus with the United States by purchasing more American goods. But they have rejected changing technology development plans they see as a path to prosperity and global influence.
The escalating dispute, with no settlement in sight, has fueled fears it might chill global trade and economic growth.
Friday's threat targeting a smaller amount of U.S. goods reflects the fact that Beijing is running out of products for retaliation due to its lopsided trade balance with the United States.
China's imports from the United States last year totaled $153.9 billion. After the earlier action against $34 billion of U.S. goods, that left about $120 billion available for retaliation.
The highest penalties in Friday's list would be imposed on honey, vegetables, mushrooms and chemicals, targeting farming and mining areas that supported President Donald Trump in the 2016 election.
The list included products as varied as snow blowers and 3-D printers, suggesting Chinese authorities were struggling to find enough imports their own economy can do without.
Beijing's earlier round of tariffs appeared designed to minimize the impact on the Chinese economy by targeting soybeans, whiskey and other goods available from Brazil, Australia and other suppliers.
Trump earlier proposed 10 percent tariffs on an additional $200 billion of Chinese imports. He told trade officials this week to consider raising that to 25 percent.
Chinese authorities warned earlier that if the dispute escalated, they would adopt unspecified "comprehensive measures." That prompted concern among American companies that retaliation might expand to disrupting their operations in China.
The United States and China have the world's biggest trading relationship but official ties are increasingly strained over complaints Beijing's technology development tactics hurt American companies.
Trump's tariffs target goods the White House says benefit from industrial policies such as "Made in China 2025," which calls for developing Chinese competitors in robotic, artificial intelligence and other fields. China's trading partners complain those might violate its market-opening pledges by subsidizing or shielding Chinese companies from competition.
The dispute is part of broader U.S. complaints about global trading conditions that have prompted Trump to raise duties on steel, aluminum, washing machines or solar panels from Canada, Europe, Japan and South Korea.
The foreign ministry spokesman appealed to Washington to negotiate but could not confirm reports the two sides were setting up talks.
"We urge the United States to come to its senses, correct its erroneous acts and create the necessary condition for a proper settlement as soon as possible," spokesman Geng Shuang said.
Trump campaigned on a promise to bring down America's massive trade deficits by renegotiating trade agreements and getting tough on countries like China that sell the U.S. far more than they buy from it.
But the U.S. Commerce Department reported Friday that the American trade deficit climbed to $46.3 billion in June from $43.2 billion in May. The deficit in goods trade with China also rose. So far this year, the trade gap is up more than 7 percent from January-June 2017.
https://www.nytimes.com/aponline/2018/08/03/world/asia/ap-us-us-china-tariffs.html
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Prior Scrutiny Needed for PFAS Substitutes, Expert Says
Aug 3, 2018 | Chemical Watch
Substitutes for per- and poly-fluorinated alkyl substances (PFASs) should be subjected to toxicity-focused "research scrutiny" before widespread use, an expert in environmental health and medicine has said.
The recommendation comes in an editorial written by Philippe Grandjean, who holds academic positions at institutions in the US and Denmark.
Standard risk assessment, coupled with the "untested chemical assumption", has failed in the case of PFASs, Professor Grandjean says, justifying a different approach for their substitutes and other persistent industrial chemicals.
"A high-priority group of environmental chemicals, the PFASs constitute a clear example of how narrow reliance on published toxicity studies can be misleading and result in insufficient and delayed protection of public health."
Two industry-sponsored animal studies conducted in the 1970s demonstrated immune system toxicity in relation to the substances, he says, but they went unpublished and only became publicly available after they were shared with the EPA in 2000.
Furthermore, even after the studies became public, regulators in the EU and the US have failed to include them in PFAS risk assessments and generally paid little attention to immune system toxicity as an endpoint.
Writing in the journal Environmental Health, Professor Grandjean says that "early evidence on PFAS toxicity was kept secret for 20 years or more, and even after its release, it was apparently overlooked."
Professor Grandjean is adjunct professor of environmental health at the Harvard TH Chan School of Public Health in the US and professor of environmental medicine at the University of Southern Denmark. He recently served as a health expert for the State of Minnesota in a lawsuit against a PFAS-producing company.
https://chemicalwatch.com/69221/prior-scrutiny-needed-for-pfas-substitutes-expert-says
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Groups Push for Changes to US Sunscreen Ingredient Approvals
Aug 3, 2018 | Chemical Watch
By Kelly Franklin
Consumer products groups have stepped up pressure on the US FDA to change course on its sunscreen ingredient approval process.
The latest push comes in joint comments from the Personal Care Products Council (PCPC) and Consumer Healthcare Products Association (CHPA) on the FDA's draft guidance on how industry should conduct maximal usage trial studies for topical active ingredients.
MUST studies are used to collect data on the potential risks a drug applied to the body may pose, when used at the maximum limits described on product packaging. And since 2016, they have been included as a method for demonstrating the safety and efficacy of sunscreen ingredients.
But a broad stakeholder group – including health NGOs, chemical and sunscreen manufacturers and dermatologists – has protested that the studies' methodologies have no "established protocol" for use on sunscreen ingredients.
And in the comments on the FDA's draft guidance, the PCPC and CHPA reiterated their recommendation that the agency include alternative approaches as part of its toxicological risk assessment and when determining acceptable margin of safety (MOS).
"We continue to strongly believe that valid and scientifically rigorous exposure assessments together with predictions of internal dose could be readily used as an alternative" to MUST studies, the groups wrote.
And they specifically mentioned approaches using in vitro/in silico data coupled with physiologically-based pharmacokinetic (PBPK) modelling. This would yield "a conservative estimate of internal dose that could be compared with equivalent data from animal studies to understand dosimetry, as part of the overall safety assessment," they said.Pressure on existing ingredients
The comments are the latest in a decades-long challenge to get new ingredients to the market. The FDA has not approved a new active sunscreen ingredient since the 1990s, and has a backlog of eight substances – many of which are widely used elsewhere in the world – awaiting approval.
But recently these concerns have taken on greater importance, as pressure mounts against existing sunscreen ingredients.
Earlier this year, Hawaii passed a law to ban oxybenzone and octinoxate from sunscreen from 2021, citing concerns about their effect on coral reefs.
And in May, NGO Center for Biological Diversity petitioned the FDA to extend the prohibition nationwide.
Industry groups have argued that barring those two ingredients will result in the removal of 70% of products currently on the market, and that the science on the harm caused to the coral by the ingredients is inconclusive.
But both regulatory and consumer pressure on the substances continues to grow, with the Environmental Working Group (EWG) launching a campaign for oxybenzone to be phased out of sunscreens nationwide by 2020.'Long-lasting impasse'
In its MUST guidance comments, the American Academy of Dermatology Association (AADA) cited the recent action on oxybenzone and octinoxate, when urging the FDA to "expedite collaboration" on approaches that will allow new sunscreen ingredients to get approval.
The medical association said it hopes to "facilitate discussion" between the FDA and industry so that the agency will "set forth study elements and considerations that industry is willing to perform".
"This long-lasting impasse is only to the detriment of the American public and must be addressed now," it added.
https://chemicalwatch.com/69205/groups-push-for-changes-to-us-sunscreen-ingredient-approvals
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Study Flags Small-Sized Microplastic and Pigment Particles in Bottled Water
Aug 3, 2018 | Chemical Watch
By Vanessa Zainzinger
Ninety percent of microplastic and pigment particles in bottled mineral water are smaller than the size most analytical measures pick up on, a German study has found.
Microplastic is defined as pieces of plastic less than 5mm in diameter. Most though are smaller than 1.5mm.
These tiny particles are particularly relevant for toxicological assessment, because they are more likely to penetrate deeper into the body, according to the European Food Safety Authority’s (Efsa) statement on microplastics in food.
But they are more difficult to measure than their larger counterparts. Previous studies on microparticle contamination of bottled water have only analysed particles sized 5mm or larger, according to the paper in Water Research.
The researchers, from the Bavarian Health and Food Safety Authority and several universities, used a membrane filter and spectroscopy system that picked up on smaller microplastics.
More than 90% of the microplastics and pigment particles they detected in bottled water were smaller than 5mm.Plastic and glass bottles
The researchers analysed 32 samples of bottled mineral water purchased in Bavarian food stores. This included single use and reusable bottles made of poly(ethylene terephthalate) (PET), as well as glass bottles.
They found microplastics in all bottle types, from just over 2,000 particles per litre in single use PET bottles to up to 10,000 particles per litre in glass bottles.
Most bottles also held pigment particles. Reusable, paper labelled bottles had the highest number of pigment particles, which could be due to contamination from the printed labels when the bottles were cleaned, the researchers say.
And the research found particles of the additive tris(2,4-di-tert-butylphenyl)phosphite in reusable PET bottles. The chemical could have leached out from the bottle material itself, they say.
The study feeds into a search for more precise analytical methods that can measure the smallest microplastics particles. In Denmark, for instance, the EPA is seeking a reliable test method to measure levels of microplastics in drinking water. The agency says currently used analytical methods, which only pick up on larger particles, are unfit to measure the scale of the problem.
The Danish government has also urged the European Commission to help plug knowledge gaps on microplastics as it prepares to publish its EU plastics strategy.
https://chemicalwatch.com/69219/study-flags-small-sized-microplastic-and-pigment-particles-in-bottled-water
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Brexit Could Leave UK Products with EU Ecolabel in Limbo
Aug 3, 2018 | Chemical Watch
By Clelia Oziel
UK products and services carrying the EU Ecolabel face an uncertain future after Brexit because their licence will no longer be recognised in European markets, officials and observers have said.
Once Britain leaves the EU in March next year, or at the end of a transition period, the EU Ecolabel Regulation (No 66/2010) will cease to apply to the UK, which will become a 'third country'.
Article 9-1-c of the Regulation says "where a product originates outside the Community, the application shall be presented to a competent body in any of the member states in which the product is to be or has been placed on the market."Ecolabel scheme
Established in 1992, the EU Ecolabel is a voluntary scheme aimed at promoting 'environmental excellence'.
It is recognised across Europe, and its logo awarded to products and services that maintain high environmental standards throughout their lifecycle, guiding consumers to the greenest choices available on the market.
In Britain, UK Ecolabel Delivery manages the label on behalf of the Department for Food, Environment and Rural Affairs (Defra).
As of March, it had granted licences to 112 organisations covering 2,331 different products, with textiles, tissue paper and rinse-off cosmetics products leading the pack.
In a notice to stakeholders in February, the Commission advised companies awarded with the EU Ecolabel by the UK competent body, to consider one of two options:apply for a new contract with an EU-27 Ecolabel competent body; orarrange for a transfer of the file and the corresponding contract from the UK to an EU-27 competent body.
An EU official said the "negotiations are ongoing" on the topic. While a Defra spokesperson said: "The UK is considering actions on Ecolabel and will set out its approach in the Resources and Waste Strategy published later this year."Low added value
Like many other EU regulations, the Ecolabel Regulation will need to be converted into UK law in accordance with the EU Withdrawal Bill, according to Jean-Pierre Feyaerts, former head of the Belgian REACH helpdesk and a Brexit commentator.
However, it is unclear if the UK will 'retain' the Ecolabel Regulation, he added.
"It is not the easiest to convert," Mr Feyaerts said; it could be wiser to start with a "completely new regulation that would follow the usual style of UK legislation".
On the other hand, there would be "no real gap" if the UK did not have equivalent legislation to the EU Ecolabel, he said.
EU Ecolabel take up is much lower in the UK than in many other EU countries. Top adopter Spain, for example, has more than 30,000 products, followed by Italy (9,406), France (4,820), and Germany (3,730). In the UK, the EU Ecolabel is just one of 88 ecolabels available to producers.
Moreover, the sectors typically covered by the Ecolabel are not the UK's strongest, Mr Feyaerts said.
However, a new regulation covering only the UK market will be unable, without an agreement with the EU, to provide a legal guarantee for UK products on the EU-27 market, he noted. It would be considered equivalent to a private label, though it could make it easier for producers to obtain the EU Ecolabel from a member state.
Michel Degaillier, senior expert at the Belgian Federal Public Service Health, Food Chain Safety and Environment, said if the UK left the scheme, licence holders "will most likely go to another competent body" in the EU-27.
"When it is in the interest of the company to maintain their EU Ecolabel licence, they can do that relatively easy," Mr Degaillier said. The delay is around three months, he added.
Last year, the Commission renewed its commitment to the EU Ecolabel scheme for another 25 years. Its 'fitness check' concluded that the label is a win-win for consumers, the environment, and the economy, winning praise from NGOs.
https://chemicalwatch.com/69220/brexit-could-leave-uk-products-with-eu-ecolabel-in-limbo
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Billions at Risk for U.S. LNG Exports on China 25% Tariffs
Aug 3, 2018 | Bloomberg
By Naureen S Malik
China is proposing a 25 percent tariff on imports of U.S. liquefied natural gas as retaliation for the Trump administration’s latest threat to impose levies on the Asian giant, a major blow to an emerging American business.
It’s the first time the fuel has been ensnared by the expanding trade war, which comes as Russia plans to begin pumping gas to China through its newly-built 2,500-mile (4,000 kilometer) Power of Siberia pipeline by the end of 2019. LNG exports have provided a key outlet for shale supplies growing at a record clip this year.
Billions of U.S. dollars may hang in the balance. Cheniere, Tellurian Inc. and other LNG developers have been courting utilities and state-backed companies in the Asian country to justify construction of more terminals to ship the super-chilled form of natural gas. The shares of America’s largest gas exporter, Cheniere Energy Inc., fell on the report.
“At least in the short term any Chinese buyer looking for long-term supply would have to drag their feet on signing a U.S. contract,” Jason Feer, head of business intelligence at Poten & Partners Inc. in Houston, said by telephone.
China accounted for 13 percent of the exports from Cheniere’s Sabine Pass terminal in Louisiana as of mid-June, based on ship-tracking data compiled by Bloomberg. The Houston-based company dropped as much as 7.7 percent after the report, the biggest one-day percentage decline since 2016, while Tellurian slid as much as 6.7 percent.
Cheniere and Tellurian didn’t immediately respond to requests for comment. Cheniere recently gave the green light to expand its Texas export terminal, thanks in part to a contract it signed earlier this year with China National Petroleum Corp., according to a company statement.
Earlier this year, China emerged as the world’s biggest gas importer, toppingJapan, as it aggressively moves to reduce its reliance on smog-inducing coal.
With China’s traditional suppliers in Central Asia unable to keep up with demand during the recent winter, Cheniere moved to help fill the gap. Since 2016, when its Sabine Pass export terminal opened in Louisiana, Cheniere had shipped about 50 supertankers filled with the super-chilled fuel to China as of the end of June, with the majority of it moving after the cold weather kicked in.
Warren Patterson, commodity strategist for ING Bank NV, said he was “quite surprised” to see LNG show up on China’s list.
“Given the transition we are seeing in China, with a move away from coal towards natural gas, I would have thought that the government would have wanted to ensure adequate supply,” Patterson said in an email.
Gas exports overall to China jumped 17 percent last year to 92 billion cubic meters, and they’re poised to hit 200 billion by 2025, according to Massimo Di Odoardo, vice president of global gas and LNG at Wood Mackenzie Ltd. in London.
Assuming the tariffs “go into effect, this is a pretty dramatic move by China,” David Lang, global head of LNG at law firm Baker & McKenzie LLP, said by phone. “This has a real impact on prospective deals,” and could affect the next wave of U.S. LNG export projects, he said.
“It certainly adds to the risk of delay for these projects,” Lang said.
https://www.bloomberg.com/news/articles/2018-08-03/china-proposes-25-tariff-on-u-s-lng-in-retaliation-to-trump
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China Threatens to Impose Retaliatory Tariffs on US Natural Gas
Aug 3, 2018 | The Hill - E2 Wire
By Timothy Cama
China is threatening to put big tariffs on imports of liquefied natural gas (LNG) from the United States.
China’s Finance Ministry said on Friday it would consider imposing a 25 percent levy on LNG imports as part of a package of $60 billion in retaliatory tariffs against U.S. products after President Trump imposed duties on some Chinese goods and commodities.
“The United States has deviated from the consensus of the two sides on several occasions, unilaterally escalating trade frictions, seriously violating the rules of the World Trade Organization, undermining the global industrial chain and the free trade system, substantially harming the interests of our country and the people, and will also include the United States,” China said in proposing the levies.
China received 103.4 million cubic feet of LNG from the U.S. last year, the Energy Information Administration says. It ranked No. 3 as an LNG recipient, behind only Mexico and South Korea.
The U.S. has only started exporting LNG en masse in the last few years, owing to the explosion of natural gas production thanks to fracking and other drilling methods.
China’s tariffs could threaten to significantly dampen the growth of LNG exports, which have been central to Trump’s energy agenda. The energy industry has already expressed strong opposition to Trump’s trade battles as they fear direct hits on the industry.
The Center for Liquefied Natural Gas pushed Trump and China to resolve the spat.
“The Administration’s ‘Energy Dominance’ and ‘New Energy Realism’ agendas will cease to exist if one of the largest energy markets in the world is preemptively placing tariffs on LNG,” Charlie Riedl, the industry group’s president, said in a statement.
“Should these tariffs remain, China will source the LNG from other suppliers eager to fill the gap. This would be a tremendous missed opportunity and would have very real effects on the U.S. LNG industry,” he said.
http://thehill.com/policy/energy-environment/400266-china-seeks-tariffs-on-us-natural-gas
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China's Plan for Tariffs on Us Natural Gas Threatens Trump's Energy Export Agenda
Aug 3, 2018 | Washington Examiner
By Josh Siegel
China's new list of $60 billion worth of tariffs on U.S. goods includes liquified natural gas, a threat that if fulfilled would be a major setback for the Trump administration’s ambition to flood the world with cheap natural gas as a key component of its energy dominance agenda.
The Chinese government will hit an estimated $60 billion in U.S goods with levies from between levels of 5 to 25 percent, its finance ministry said Friday.
As part of that, China says it would impose a 25 percent tariff on U.S. liquified natural gas, or LNG — the chilled, liquid form to which gas must be converted for shipment in giant tanker vessels across the sea.
The move is in response to President Trump directing his trade policy team to hike tariffs on China to 25 percent in an effort to get Beijing to make concessions. The Trump administration had originally planned tariffs of just 10 percent on $200 billion of goods.
Experts have warned that Trump’s trade war with China is threatening to discourage the world’s fastest growing LNG market from signing long-term contracts with American developers.
"Major escalation of energy trade wars," said Jason Bordhoff, a former energy adviser to former President Barack Obama, and the director of Columbia University's Center on Global Energy Policy.
"The LNG flows are fungible, true, but it may hurt the ability of US projects to attract financing if world's second-largest LNG buyer is essentially off limits," Bordhoff wrote in a Twitter post.
China’s demand for LNG is soaring, and it is relying more on the U.S., becoming the third largest destination for American gas behind Mexico and South Korea. Chinese imports of U.S. LNG increased from zero in 2015 to 17 billion cubic feet in 2016, to 103 billion cubic feet last year.
But the trade fight with China hangs over potential long-term progress for U.S. LNG exports.
Other countries, including Russia, Qatar, Canada, and Mozambique are also offering LNG at competitive rates. Experts say U.S. supply, despite its cheap prices, is replaceable.
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Colorado E&Ps Gird for Ballot Measure Fight
Aug 3, 2018 | Natural Gas Intelligence
By Richard Nemec
A new study in Colorado predicts catastrophic crippling of the oil and natural gas industry if a proposed ballot measure to lengthen the setback requirement for new drill sites to 2,500 feet from 500 feet is passed in November.
Monday (Aug. 6) is the deadline for measures to qualify for the November ballot. Pro-industry organizations are assuming that Initiative 97 designating the new setbacks will have a spot on the ballot.
A study funded by Colorado real estate, banking and economic development interests done by researchers Chris Brown and Zhao Chang at the Colorado School of Mines Mineral and Energy Economics Program concluded that by 2030 there would be $110-141 billion of lost oil and gas production tied directly to Initiative 97 if it were to pass.
Spokeswoman Karen Crummy of the pro-industry group Protect Colorado said opposition efforts are "moving forward as if the measure will make the ballot." Initiative 97 effectively "bans oil and gas development in the state and will be economically devastating to Coloradans."
As the Colorado Petroleum Council and the Colorado Oil and Gas Conservation Commission (COGCC) have documented, oil and gas operations statewide support hundreds of thousands of jobs, covering all sectors of the state's economy. The report also noted that the industry operates within some of the nation's strictest regulations.
Up to 80% of all new oil and gas development would be eliminated by the proposed ballot measure, said researchers.
"By 2030, it would reduce the total value of production in the state by between 54% and 70%,” the authors said.
Crummy cited a long list of lost tax revenues, jobs, and general economic multipliers if the new setback requirements were to be approved. COGCC estimates that up to 85% of the state would be off limits to new energy development under the 2,500-foot requirement.
“Strong continued growth" is what is in the energy pipeline without the ballot measure, the report noted. In fact, more than half of the projected growth is slated to occur within the expanded setback area.
Colorado Rising, which is spearheading the measure, said human proximity to energy development, including oil and gas drilling, is bad for public health, safety, welfare and the environment as a whole. The detrimental impacts would be eliminated with the proposed setbacks, the group argues.
There have been a series of local and statewide anti-fossil fuel ballot measures in Colorado that have spawned pro-industry business-backed organizations. Two years ago, two oil and gas measures were strongly opposed by industry.
http://www.naturalgasintel.com/articles/115304-colorado-eps-gird-for-ballot-measure-fight
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Targa, NextEra, Marathon Team Up for Permian Gas Pipeline
Aug 3, 2018 | Houston Chronicle
By Jordan Blum
Houston pipeline firm Targa Resources said it is teaming up with a bevy of partners to build a 600-mile natural gas pipeline system from West Texas' Permian Basin to the Corpus Christi and Houston regions.
While there's a race to build a slew of crude oil pipelines to serve the record levels of production from the booming Permian, there's also a lot of associated gas produced from the oil wells. Targa is now looking to compete with Houston's Kinder Morgan and a few other companies building massive gas pipelines from the Permian to the Corpus and Houston markets.
Targa said Friday it aims to build the Whistler Pipeline project from the Permian in partnership with Florida's NextEra Energy, Ohio's MPLX and some private equity investors. MPLX is the pipeline arm of Marathon Petroleum.
The private equity-backed company is Austin-based WhiteWater Midstream, which was formed by Houston firm Denham Capital and Ridgemont Energy Partners of Charlotte.
The Whistler Pipeline would transport 2 billion cubic feet of gas per day through the 450-mile, 42-inch pipeline from Waha, Texas to NextEra's Agua Dulce market hub just west of Corpus Christi. An additional 170-mile, 30-inch extension pipeline would stretch to Wharton County near the Houston Ship Channel.
Targa will operate the pipeline while NextEra will lead the construction. The aim is to have the pipeline up and running by late 2020. They're not revealing the project costs, but similar pipelines under development cost more than $2 billion.
Targa already is building the Grand Prix Pipeline from the Permian to the Houston area to transport natural gas liquids, such as ethane, butane and propane that also are produced from the Permian's oil wells.
In terms of competitors, Kinder Morgan recently announced plans for a 430-mile Permian Highway Pipeline project to transport natural gas to Houston and Corpus hubs. The Permian Highway is being developed with Houston oil and gas producer Apache Corp., which has the option to buy a one-third stake in the pipeline.
For now, though, Kinder Morgan is a 50-50 partner on the project with Midland-based EagleClaw Midstream.
Kinder Morgan already is building the $1.7 billion Gulf Coast Express Pipeline that would stretch farther south from the Permian to just west of Corpus. That project is slated for completion in fall 2019.
Likewise, the planned Pecos Trail pipeline to Corpus Christi is proposed by Houston-based NAmerico Energy, a 3-year-old venture backed by private equity.
Also, the Houston liquefied natural gas exporter Tellurian is developing the proposed Permian Global Access Pipeline, a 625-mile project from West Texas to southwestern Louisiana, to serve Tellurian's planned Driftwood LNG export terminal and other projects.
https://www.chron.com/business/energy/article/Targa-NextEra-Marathon-team-up-for-Permian-gas-13129466.php
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Blast Debris Caused Wis. Refinery Fire — Safety Board
Aug 3, 2018 | AP (In E&E Greenwire)
An April fire at a Wisconsin refinery was caused by a piece of debris from an explosion hitting an asphalt storage tank, the U.S. Chemical Safety Board has concluded.
The storage tank was punctured and released over 15,000 barrels of hot asphalt, which caught on fire about two hours later, the safety board said in an update yesterday.
What caused the explosion itself has not yet been determined, but a worn valve may have been responsible.
Three dozen people sought medical attention after the series of explosions rocked the Husky Energy Inc. refinery in Superior and the large fire broke out (E&E News PM, April 26).
A spokesman for Canada-based Husky Energy said the company has reviewed the board's findings and will continue to partner with the U.S. agency while rebuilding the refinery (Associated Press, Aug. 2). — MJ
https://www.eenews.net/greenwire/2018/08/03/stories/1060092713
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EPA Hit with 2 Suits over Ozone Attainment
Aug 3, 2018 | E&E Greenwire
By Sean Reilly
EPA is facing two fresh lawsuits from Illinois Attorney General Lisa Madigan and other plaintiffs alleging that the agency illegally cut corners in declaring parts of several states in compliance with its 2015 ground-level ozone standard this spring.
EPA "is ignoring its own scientific data in order to put industry profits ahead of the public's health," Madigan, a Democrat, said in a news release yesterday announcing the suit, filed with the U.S. Court of Appeals for the District of Columbia Circuit.
While the lawsuit references only the final rule, published in June, which made attainment designations for hundreds of counties around the country, Madigan singled out EPA's reversal in opting to list Racine County, Wis., in attainment with the 70-parts-per-billion standard after previously recommending that it be deemed out of compliance. The county is the future home of a Foxconn Technology Group manufacturing complex that is a top priority of Wisconsin Gov. Scott Walker (R).
EPA's about-face will allow Foxconn to avoid stricter controls on pollution that spawns formation of ozone, Madigan's release says. She had threatened the suit days after the designations were initially released (Greenwire, May 7).
Earlier this week, Clean Wisconsin, an environmental group, also brought suit over the Racine County designation (Greenwire, Aug. 2). Joining in Illinois' challenge is the city of Chicago.
Given that the planned Foxconn development is less than 90 miles away, "Chicago has legitimate concerns about the Trump administration loosening pollution regulations that can impact our environment and our residents' health," Ed Siskel, the city's top lawyer, said in a statement. Madigan is also questioning the attainment designations for parts of two other Illinois counties and one Indiana county, according to the release and a spokeswoman.
Ozone is a lung irritant formed by the reaction of nitrogen oxides and volatile organic compounds in sunlight. It is linked to asthma attacks in children and aggravated breathing problems for people with emphysema and other chronic respiratory diseases.
In a separate suit, also brought yesterday with the D.C. Circuit, Boulder County, Colo., and two conservation groups challenged EPA's decision to designate part of Weld County in the northeastern part of the state in attainment with the 70-ppb standard. The area is a hub of oil and gas production; such operations are typically a major source of volatile organic compounds.
"The Trump administration knows how dangerous smog is, especially to kids and the elderly, but is going out of its way to make sure oil and gas companies in Colorado can keep on polluting," Robert Ukeiley, a senior attorney with the Center for Biological Diversity, said in a statement. The National Parks Conservation Association is also a plaintiff in the suit, while the Sierra Club will bring a challenge on its own, the release said.
An EPA spokeswoman declined to comment today on pending litigation. As of this morning, none of the filings had shown up in the federal courts' online records system.
https://www.eenews.net/greenwire/2018/08/03/stories/1060092735
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LCV Attacks Climate Caucus Members on Carbon Tax Vote
Aug 3, 2018 | E&E Greenwire
By Nick Bowlin
A green group is using Climate Solutions Caucus membership to hammer four House Republicans for recent votes against pricing carbon.
Social media ads from the League of Conservation Voters will run in the districts of New York Reps. Chris Collins and Dan Donovan, California Rep. Darrell Issa, and Kansas Rep. Lynn Jenkins. Issa and Jenkins are retiring.
All four voted in favor of a recent anti-carbon tax bill brought by Louisiana Rep. Steve Scalise. The bill called a carbon tax, seen by climate advocates as a strong tool against global warming, "detrimental to the United States economy."
The four CSC members also voted for two Interior-EPA spending bill amendments LCV opposes: one against methane limits and the other against the social cost of carbon metric.
"Their constituents should know that their member of Congress struck out on these three votes," said Sara Chieffo, LCV vice president of government affairs. "Membership in the Climate Solutions Caucus is empty rhetoric if these representatives continue to vote in line with polluter special interests."
The ads encourage voters to press their representatives on climate issues.
Steve Valk, director of the Citizens' Climate Lobby, the group behind the caucus, said of the campaign: "LCV's mission is to hold members of Congress accountable for their actions, and that's what they're doing here."
Advocacy groups on the other side are attacking Florida Rep. Carlos Curbelo (R), founder of the climate caucus, who introduced a carbon tax bill recently and opposed Scalise's resolution.
The American Energy Alliance kicked off an anti-carbon-tax campaign with a $75,000 digital ad buy in Curbelo's district. It asks "citizens to hold their elected officials accountable for their support for destructive energy taxes."
Curbelo is seen as vulnerable this fall in his 26th District, which favored presidential candidate Hillary Clinton in 2016.
https://www.eenews.net/greenwire/2018/08/03/stories/1060092703
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Youth Climate Activist Fires Back at GOP Candidate: 'You're the Naive One'
Aug 3, 2018 | The Hill - E2 Wire
By Megan Keller
A young environmental activist is firing back at a Pennsylvania Republican gubernatorial candidate after he called a fellow climate activist "young and naive."
“You call us young, but we will be disproportionately affected by climate change.” activist Victoria Barrett wrote in an open letter to Pennsylvania state Sen. Scott Wagner (R), who is running for governor, in The Guardian Thursday. “You will be gone, but your children, your grandchildren, your great-grandchildren – we will pay for your mistakes.
“You are the naive one,” Barrett continued, “you ignore the information necessary for you to make the right choice.”
Wagner during a town hall meeting last month was questioned about his views on climate change by Rose Strauss, an 18-year old member of the Sunrise Movement, which encourages candidates to refuse donations from fossil fuel industries.
Wagner dismissed the question.
"You know what? I appreciate you being here. And you're 18 years old. And, you know, you're a little young and naive," he said to Strauss.
Wagner added that while climate change was "important" he was focused on other issues he thought were more pressing.
But Barrett in her letter said the world is “already headed towards climate disaster” and so young people have “no other option than to fight to protect this planet which you and your fellow politicians have willing put at risk with your apathy.”
Barrett is one of 21 young plaintiffs who are suing the Trump administration, alleging that it is failing to protect its citizens from the adverse effects of climate change.
The Supreme Court on Monday declined a request from the Trump administration to halt the suit, allowing it to move into the discovery phase.
But the court also offered criticism for the scope of the plaintiff's claims.
"The breadth of respondents' claims is striking, however, and the justiciability of those claims presents substantial grounds for difference of opinion," the justices wrote.
http://thehill.com/policy/energy-environment/400265-youth-climate-activist-fires-back-at-gop-candidate-youre-the-naive
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