- Wall Street Journal: Capital funding access may lead to sustained low oil prices, observers say
- The Washington Post: EPA proposes a biofuels compromise — and makes nobody happy
POLITICO Morning Energy for 6/1/2015
By DARIUS DIXON
HOUSE RULES: The House Energy and Commerce Committee appears to be holding most of the interesting cards this week. The panel is taking testimony from Energy Secretary Ernest Moniz on Tuesday about the Obama administration’s Quadrennial Energy Review. Lawmakers on E&C also plan to kick off a full committee markup that includes bipartisan TSCA reform legislation later on Tuesday afternoon, and reconvene Wednesday morning to wrap up the votes.
According to a Friday memo disseminated by House Majority Leader Kevin McCarthy, TSCA legislation, which is being led by Rep. John Shimkus, is expected to reach the floor the week before lawmakers break for the Independence Day recess. The House also plans to debate Rep. Ed Whitfield’s Ratepayer Protection Act, and Rep. David McKinley’s coal ash bill will also be on the floor that week.
On Wednesday, E&C’s Energy and Power Subcommittee is scheduled to hold a hearing on draft legislation concerned with energy efficiency (http://1.usa.gov/1PXoiY3) and accountability (http://1.usa.gov/1Jch2mW). The accountability bill seems rather interesting because it reflects the concerns of those who have complained about market manipulation investigations run by FERC’s enforcement office. For starters, the bill directs FERC to lay out a deadline for turning over evidence FERC, grid operators and state regulators hold that may be of use to a target of the agency’s probes. It would also allow a direct line of communication between FERC commissioners and those under investigation.
— The Senate: The Banking Committee is diving into the Export-Import Bank this week with a pair of hearings. First, on Tuesday, the panel is hosting a witness table of nongovernmental perspectives, including those of the American Enterprise Institute, and the Chamber of Commerce. Then, on Thursday, the Banking Committee will take testimony from Ex-Im Bank president Fred Hochberg. On Wednesday, the Environment and Public Works Committee is holding a hearing on the EPA’s draft ozone standard.
WELCOME BACK, AND TO JUNE! IT’S MONDAY. I’m Darius Dixon and while your host tends to believe that social media is a wretched hive of scum and villainy — uh, sorry that’s Mos Eisley — every now and then something gets a good laugh out of me. Last night, POLITICO’s Manu Raju tweeted, “In middle of serious McConnell speech [about the PATRIOT Act], Pat Roberts’ cell phone goes off with the ringer to the “Frozen” song “Let it go.” Roberts’ ringtone is pretty infamous: http://bit.ly/1HZ5Nhj #priceless. Send your energy news, tips and commentary to ddixon@politico.com, and follow us on Twitter @dariusss, @Morning_Energy and @POLITICOPro.
GAME-CHANGER FOR THE HILL: POLITICO Pro is launching a Congressional Directory at 2pm today— free to Pro subscribers. The new intelligence tool is integrated into the platform Pros already rely on for news, and features member and staffer information including work history, education, issue areas and recent news, as well as offering users the ability to create customized searches, export lists, and track updates. To learn more about POLITICO Pro’s newest feature, email us at cd.info@politicopro.com
THEY’RE BAAAAACK: We’re living in a (partially) PATRIOT Act-less world, people. The Senate flew back to D.C. Sunday and agreed to move forward with debate on the USA FREEDOM Act, a House-passed reauthorization of the PATRIOT Act that reforms the government’s controversial bulk phone records program. The House clocks back in today and has a vote series scheduled for 6:30 p.m.
REGULATOR, OIL SPILLER TRY OPENNESS IN CALIF.: The owner of the ruptured California pipeline and its federal regulator are trying a new tactic in dealing with the Santa Barbara oil spill: transparency, Pro’s Elana Schor and Andrew Restuccia report. “The Pipeline and Hazardous Materials Safety Administration and Plains All American Pipeline have been issuing daily clean-up reports and even held an open house on Saturday, efforts that show they’re working to share more information with the public than has been seen after other oil spills.
Seeing an oiled bird in more detail doesn’t mean greens like seeing an oiled bird at all: For angry environmentalists and frustrated lawmakers, better communication after a spill is no substitute for steps that will stop pipeline accidents from occurring in the first place. The spill represents a big test for PHMSA, which is already under pressure to change its image, after the White House late Friday went outside the agency’s ranks and the pipeline industry to nominate a new leader for the obscure federal agency that has long lacked a permanent chief. Elana and Andrew have more for Pros: http://politico.pro/1JdsNtv
…AND WHAT’S HAPPENING ON THE GROUND: Crews cleaning up after last month’s oil spill in Santa Barbara County, California, are still dealing with tar balls washing ashore but now some of their work may get delayed by birds. Besides the dozens of affected birds and mammals recovered from the area, this is apparently nesting season for endangered snowy plovers (For those, like me, who know nothing about birds: http://bit.ly/1LVqwAy). Accordingly, “responders are taking great care to clean the areas without affecting the birds. Because of snowy plover presence over large areas of beach in Ventura, the speed of cleanup may be affected to prevent disturbance,” a statement from Unified Command, the cross-section of federal, state and industry cleanup coordinators, said. Reporters are getting a tour today of the facility where oil-slicked birds are being washed up.
The leader of the cleanup effort also defended the initial response to the May 19 pipeline rupture: http://bit.ly/1ELrn1v
HOT IN THE REG WORLD: Via The New York Times: “This week, the E.P.A. is expected to propose regulations to cut greenhouse gas emissions from heavy-duty trucks, requiring that their fuel economy increase up to 40 percent by 2027, compared with levels in 2010, according to people briefed on the proposal. A tractor-trailer now averages five to six miles a gallon of diesel. The new regulations would seek to raise that average to as much as nine miles a gallon. A truck’s emissions can vary greatly, depending on how much it is carrying.” http://nyti.ms/1Fk1iae
TODAY — NEW WEBSITE FOCUSED ON ENERGY SECURITY LAUNCHING: Securing America’s Future Energy, a group stacked with ex-military figures devoted to reducing U.S. oil use, is launching a new website today with a focus on energy security called The Fuse. The site will provide analysis, infographics, interviews and videos related to oil markets, alternative fuel vehicles, domestic energy policy, national security, and transportation initiatives. “We are launching this week because, for its first assignment Fuse staff, along with an international camera crew, will join SAFE leaders like President Robbie Diamond at the June 5th OPEC meeting in Vienna, Austria,” the group says. “Covering the event first-hand presents the perfect opportunity to introduce the site’s bold editorial strategy and willingness to engage on the most important energy issues of the day.” The launch content includes Q&As with Sen. Heidi Heitkamp, former ARPA-E director Arun Majumdar, who is now VP for energy at Google, and T. Boone Pickens, who hardly seems to need an introduction for ME readers. The new site can be found here: http://www.energyfuse.org/
NEW YORK, YOU’RE NOT NOT FRACKING ALONE: Maryland Gov. Larry Hogan, a Republican who voiced support for fracking last year as a gubernatorial candidate, opted not to veto (or sign) a bill that would establish a moratorium on the practice until October 2017, therefore allowing it to become law. But before the pro-fracking crowd dishes some hate and the anti-frackers think they’ve found an unlikely ally, consider that the bill passed with veto-proof majorities in both chambers of the Maryland legislature: 103-33 in the House of Delegates and 45-2 in the Senate. The Washington Post had a rundown: http://wapo.st/1JcjhH5
MONIZ ADVISORS, UNITE: The subdivision of advisors to Energy Secretary Ernest Moniz devoted to “federal energy management” is meeting up for the first time today. Energy Department assistant secretary for energy efficiency and renewable energy David Danielson and his efficiency chief, Kathleen Hogan, plan to give some brief comments. Officials from the White House Office of Management and Budget, and its Council on Environmental Quality also plan to speak. A panel in the afternoon is also slated to include energy secretaries from the Pentagon, as well as the Air Force, Army and Navy. Longtime Senate Energy and Natural Resources Committee staffer Allen Stayman will give a congressional perspective. The special task force of the Secretary of Energy Advisor Board is being led by Stanford professor and former Energy Department official Dan Reicher and Ellen Tauscher, a former congresswoman and undersecretary of State for arms control and international security affairs who is now with Baker Donelson. The meeting starts at 8:30 a.m. and is expected to run until about 5 p.m.
IN CASE YOU MISSED ‘REAL FUN STUFF’ ON FRIDAY: Drama around the EPA’s much-delayed Renewable Fuel Standard, the stories for Pro continued to pour out while some of you were trying to get your weekend on. Here are some stories you may have missed:
— Pro Ag reporter Jenny Hopkinson has a story with a focus on Big Corn: The corn industry says it is prepared to sue if EPA finalizes Friday’s proposed Renewable Fuel Standard for 2014-2016 without making significant changes by the Nov. 30 deadline. Growers note that the agency’s mandates for blending ethanol into the nation’s fuel supply would fall billions of gallons short of what Congress called for eight years ago. http://politico.pro/1Fnky7S
— Pro Energy’s Alex Guillén reports that oil refiners are warning that the mandates will take the U.S. right into the “blend wall.” EPA’s proposal would require refiners to use 3.4 billion gallons of advanced biofuels in 2016, but Stephen Brown, a top lobbyist for oil refiner Tesoro is skeptical producers can meet that mandate. http://politico.pro/1ADAiao
EURO ME RISES: The POLITICO Europe version of Morning Energy is alive and well and debuted this morning. And it’s loaded up with the latest chatter around all these machinations going on leading up to the Paris COP21 climate summit. If it didn’t show up in your inbox around 1 a.m. today it’s because you didn’t listen to me last week and sign up ahead of time: http://politi.co/1KGSenu
D.C. AG SPELLS OUT OPPOSITION TO EXELON-PEPCO DEAL: The D.C. Public Service Commission is the only real hurdle left in the way of Exelon Corp.’s takeover of Pepco Holdings Inc., and the District Attorney General Karl Racine found the deal wanting, according to the Washington Times: “D.C. government lawyers urged the commission to reject the deal unless a list of 40 conditions were met — among them ring-fencing protections, a requirement to keep Pepco headquartered in the District and funding of sustainable development and energy efficiency programs.” The Washington Times: http://bit.ly/1dFp8rd
A decision from the D.C. PSC could come any day now but it remains to be seen whether they’re swayed by the opposition of several city council members, community advisory boards and, now, the AG. In Maryland, where the merger also faced considerable opposition, including from the state’s AG, regulators eventually conditionally accepted the $6.8 billion deal so long as the company met nearly four dozen condition — conditions that were quickly accepted.
KEYSTONE’S SOUTHERN LEG ISN’T ASLEEP: The Oklahoman: “The U.S. 10th Circuit Court of Appeals on Friday upheld a ruling against The Sierra Club’s legal challenge to federal approval of the Keystone Gulf Coast pipeline. The Sierra Club in 2012 sued the Army Corps of Engineers over its approval of the pipeline that has been operational for more than two years. In a 39-page ruling by Judge Robert E. Bacharach, the court rejected the Sierra Club’s claims that the U.S. Army Corps of Engineers failed to conduct a proper environmental analysis that included the possibility of oil spills. “The environmental groups waived their claims involving failure to address oil spills and cumulative impacts, and the corps was not required to conduct an environmental analysis when verifying compliance with the nationwide permit,” Bacharach wrote. The corps in February 2012 approved a permit allowing for the construction of the 179-mile pipeline from Cushing to the Houston area.” http://bit.ly/1eKA8Us
Want to read the ruling yourself? http://1.usa.gov/1PXAfNg
QUICK HITS
— Elon Musk’s growing empire is fueled by $4.9 billion in government subsidies. The Los Angeles Times: http://lat.ms/1KxmuhD
— OPEC’s Pricing Leverage Is Weakening. The Wall Street Journal: http://on.wsj.com/1SPyXTB
— French minister backs Obama, says climate change threatens global security. The Associated Press: http://bit.ly/1JcXzCy
— Molycorp Struggles to Survive Rare-Earths Bubble. The Wall Street Journal: http://on.wsj.com/1HFPj8m
— Major energy companies write to UN to request help in setting up carbon pricing scheme. The Independent: http://ind.pn/1I3uXsn
— Prices Are Down, but Saudis Keep Oil Flowing. The New York Times: http://nyti.ms/1d8G9t6
— Bill resolving dispute between rooftop solar companies, NV Energy heads to governor. The Associated Press: http://bit.ly/1GeR7KY
Tags: energy, fuel, gas, oil, policy