- SNL Financial: House clears spending bill amendments targeting EPA rules
- The Washington Post: The surprisingly important climate policy moment that’s coming this week
- New York Times: With Oil Prices Recovering, Rig Count Steadies
POLITICO Morning Energy for 6/29/2015
By ERIC WOLFF, with help from Kalina Oroschakoff
HIGH COURT GOES TO THE MATS: The Supreme Court will decide on a question of whether the EPA should have considered cost of compliance in devising its mercury rule. The rule kicked in back in April, and while a few stragglers got extensions, the power industry has largely complied. The court’s decision will have a bigger impact on how the EPA writes future rules than it will on power generation.
Shall we play a game? ME’s preferred method of fortunetelling is chronomancy — the art of telling the future by waiting to see what happens — but SCOTUS-ologists all have their own indicators for prognosticating decisions. Until Friday, many thought Justice Antonin Scalia would write the MATS decision, because he hadn’t produced an opinion from the March conference. Scalia seems strongly opposed the EPA’s position, so if he was in the majority, the rule would likely go down. But the Scalia wrote the Johnson v. United States decision handed down on Friday. “The conventional wisdom among us head scratchers is that this takes Scalia out of the running since he’s written 8 opinions. The betting now is that either Ginsburg (6) or Kagan (7) has it. Alito probably has the death penalty case,” Patrick Parenteau, a University of Vermont law professor, told ME. A decision by either liberal justice would almost certainly be an administration victory, especially if it was written by Justice Elana Kagan, a former Obama Solicitor General who went hard after the challengers during oral arguments.
But what about Chevron?: As ME said on Friday, the biggest implication for the EPA out of the decision in King v. Burwell may be Chief Justice John Roberts’ rejection of Chevron deference. For 30 years, federal agencies have received deference when the law is unclear. But in a move reminiscent of Marbury v. Madison, Roberts found for the administration in King, even as he increased judicial independence by not granting deference to an executive branch agency. Harvard Law Professor Jody Freeman said in a blog post published Friday that in King, Roberts scored a victory over Kagan, who had previously defended Chevron in writing and in oral arguments. Freeman said the Michigan decision could mean more salvos fired in this ongoing debate among the justices. http://bit.ly/1JsrIOR
Oh, what the heck: ME attended oral arguments, so here’s a guess at the outcome: A 6-3 finding in favor of the EPA, with Alito, Thomas, and Scalia dissenting. If Kagan writes and goes heavy on Chevron, then 5-4 with Roberts joining the dissenters. Tweet us your predictions @Morning_Energy, deadline 9:59 am!
OBAMA AND DAVID ATTENBOROUGH, SEPARATED AT BIRTH?: David Attenborough made his first visit to the White House on Sunday, sitting for an interview with President Barack Obama. The two men shared identical views on the global problem of climate change. Attenborough called for a 10-year plan in the vein of Kennedy’s moon mission to develop renewable generation and better power storage. “Supposing we said in 10 years we will organize and energy the world to find a way to produce energy with no problems, that is to say, exploiting sunshine for energy,” he said.
The two men agreed that the children are our future. Obama said his daughters have strong environmental awareness, and that “they certainly do not deny the science of climate change.” Attenborough picked up the thread, saying, “What is required is an understanding, a gut feeling that the natural world is part of your inheritance that this is the planet on which we live, it’s the only one we’ve got.”
ME wishes Attenborough a belated happy birthday: At the end of the broadcast, Attenborough reveals that he turned 89 while visiting the United States. “Americans really go in for birthday celebrations, and they really enjoy singing happy birthday, or they seem to,” he said as the camera cut to scenes of multiple meals in which Americans presented him with candle-laden birthday cakes.
EU DOES THE BIG APPLE: Be ready for China to (possibly) submit its planned pledge for the climate change summit in Paris in December today, following discussions in New York City over the weekend. Arias Cañete flew there Friday for a one-on-one with his Chinese counterpart and a meeting between the EU, China, the U.S., Brazil, South Africa and UN Secretary General Ban-Ki Moon over Saturday and Sunday. We hear Beijing’s statement will likely build on China’s agreement with the U.S. in November, potentially edging the deadline for peaking its emissions to earlier than 2030. Keep your eye on http://politico.eu later today for the full story.
CLOCK STARTS ON WATER RULE LAWSUITS: The EPA’s new definition of which waters fall under federal jurisdiction will be published in today’s Federal Register. The Clean Water Rule, alias Waters of the United State Rule, alias WOTUS, is the EPA’s attempt to make clearer which bodies of water require companies or individuals to get Clean Water Act permits for certain uses. The rule has attracted the most attention from farming interests worried about their ditches, but utilities, pipeline developers and electric transmission developers are all trying to figure out if their environmental reviews just became more challenging. On the other hand, the Waterkeeper Alliance says the rule doesn’t cover enough water. One or both sides of the argument are almost certain to sue.
EPA chief Gina McCarthy will be at the National Zoo today to talk Clean Water Rule to high school students participating in a youth environmental summit run by George Mason University.
BIA MIA IN INDIAN COUNTRY ENERGY PROJECTS: The Bureau of Indian Affairs is making it difficult for tribes to develop wind and solar resources on their lands, Democratic Rep. Raul Grijalva will tell the National Congress of American Indians today in Minnesota. The GAO hammered BIA earlier this month in a report, saying BIA delayed approvals on renewable projects long enough to stall them. In one case, BIA cost a tribe $95 million while it took eight years to complete a review. Grijalva will call on the Committee on Natural Resources, of which he is ranking member, to push BIA to support development of sustainable resources. http://1.usa.gov/1KjmIL1
HAPPY MONDAY! I’m your host, Eric Wolff, and I don’t want to say it rained a lot on Saturday, but I saw the local rodents headed for high ground in pairs. Congress is off for the week, so do please send your energy tips, quips and commentary to ewolff@politico.com, and follow us on Twitter @ericwolff, @Morning_Energy and @POLITICOPro.
ME FIRST: SMOG PROTEST: Ten mayors and alderman and assorted local officials, plus two business executives, all from Obama’s home state of Illinois, wrote to the White House and the EPA to ask that the ground-level smog standard remain unchanged at 75 ppb. As part of its regular review of the ground-level ozone standards, the EPA’s scientific advisory board recommended lowering the standard. The agency recommended reducing it to between 65 ppb and 70 ppb. The letters argue that a 65 ppb standard would be devastating to their local economies, and they all cite to a National Association of Manufacturers’ study that claims the rule will cost Illinois $9 billion in gross domestic product. The U.S. Chamber of Commerce, the U.S. Black Chamber of Commerce, and the Illinois Black Chamber of Commerce will host a panel in Chicago on the ozone rule and jobs today at 9 a.m. http://politico.pro/1JsGiFT
About that study: ME has read the NAM study. The authors blow out the cost of the rule by assuming that compliance will require a mammoth car trade-in program to get pollution-spewing clunkers off the road. The EPA said in the proposed rule that a big chunk of reductions will be achieved through far less costly new technology that will likely need to be installed on the smokestacks of factories and power plants.
OIL IS NOT TOO SLICK FOR THE INVISIBLE HAND: On Friday, 13 Democrats sent a letter to the White House that said lifting the crude oil export ban would raise gas prices. George Baker, executive director, Producers for American Crude Oil Exports, said in a statement, that’s not how markets work. “Allowing crude oil exports from the U.S. will put downward pressure on domestic gasoline prices — not a matter of opinion but the inexorable result of the laws of supply and demand.”
ME thought bubble: This may be part of the reason why some environmental groups want to keep the ban. More supply means lower prices which, by those same laws of the market, means more consumption.
SPINNER SPINS BACK TO WHITE HOUSE: Steve Spinner, Obama fundraiser and Solyndra advocate, is back! Spinner is best known for his role in closing a loan for solar panel maker Solyndra that would later fail and cost taxpayers a bundle. The company would become the symbol for critics of the stimulus program as the kind of boondoggles that government funded in its headlong rush to shorten the Great Recession.
As an aside…Solyndra’s old digs in Silicon Valley are now owned by Tesla Motors. Elon Musk does not fear the ghosts of the past!
SET FOR IRAN: Iran’s energy sector may just be about to become the biggest prize for European energy majors, who are lining up in anticipation that a hoped-for nuclear proliferation accord by this Tuesday’s deadline opens up one of the world’s largest oil and gas markets. In meetings with Iranian policy-makers in May and June, companies such as Italy’s Eni, France’s Total and Anglo-Dutch Shell have underscored the fact that the industry stands ready to re-enter the country should sanctions be lifted. Check http://politico.eu later today for the full story.
NAOMI KLEIN TO VATICAN FOR FIRST ROUND PICK AND PLAYER TO BE NAMED: The Pope tabbed climate activist Naomi Klein to help him sway the world toward battling climate change. Klein is known for helping to spearhead the fight against pipelines, and for her belief that neoliberal capitalist systems make fighting climate change difficult if not impossible. Klein will be speaking at a press conference on Thursday in advance of “People and Planet First”, a conference on climate change.
If you are in Vatican City on Wednesday: The press conference will be at the Holy See Press Centre, Via della Conciliazione 54, Città del Vaticano, at 11:30 am
If you are stuck in the U.S. like the rest of us: Watch it streaming at 5:30 a.m. http://bit.ly/1drxYYN
POPE OR KOCHS OR CAKE: Americans United for Change goes up with ads targeting Republican presidential contenders over climate change. The 30-second TV and radio ads ask voters whether they would rather stand with the oil tycoon Koch brothers who oppose climate action or the Pope. The ads will run in Manchester, N.H. and Cedar Rapids, Iowa, with radio ads starting on Tuesday and TV on Wednesday, and both running through the end of the week. http://bit.ly/1LA9YBx
IS ROBERT REDFORD A SCIENTIST? The actor is working with the NRDC and the UN on climate issues, and he will be taking questions on climate change on Twitter.
If you Tweet: Use #AskRobertRedford starting at 4 p.m. ET
QUICK HITS
— What’s next for Ex-Im as time runs out. POLITICO: http://politi.co/1QY9Rn2
— Hawaii Wrestles With Vagaries of Solar Power. Wall Street Journal: http://on.wsj.com/1RJUXMe
— Drillers to submit electronic records on fracking chemicals for Pa. DEP to check, enforce. Pittsburgh Tribune-Review: http://bit.ly/1HqQgr7
— Solar-powered plane finally leaves Japan for Hawaii. USA Today: http://usat.ly/1NoSiqA
— Half of Europe’s electricity set to be from renewables by 2030. The Guardian: http://bit.ly/1LPVBG4
— Argentina Judge Orders Seizure of Assets From Oil Companies Drilling in the Falklands. Latin Post: http://bit.ly/1GGNbwr
Tags: energy, fuel, gas, oil