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President Donald Trump heads to the Texas oil patch to tout his regulatory rollbacks as the industrys ails deepen during the pandemic.
House lawmakers will battle over amendments to a spending bill funding the Energy Department, Army Corps of Engineers and Bureau of Reclamation.
Proposed revisions to the Democratic National Committees draft platform will put climate change in the convention spotlight.
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RALLY AT THE RIG: President Trump will be appearing Wednesday at a rig site in Texas owned by a campaign donor to boast about his administration's record on energy production. There, in the heart of the west Texas oil country, Trump is expected to discuss how reducing regulation, streamlining the permitting of projects and incentivizing private investment in energy infrastructure have helped make the United States a dominant energy power, White House spokesman Judd Deere said.
Yet that talk might ring hollow to an industry thats seen the coronavirus pandemic in this country continue to rage and suppress fuel sales while countries overseas have been better able to suppress it. Oil companies here have been slashing their workforce by double-digit percentages or been forced to receive grants from the government to survive. Double Eagle, which is hosting his remarks, received up to $1 million in grants from the Paycheck Protection Program.
Choppy weather ahead? U.S. producers have been able to make up some ground as states tried reopening their economies and oil prices climbed back to around $40 a barrel. But even as Trump takes the stage today, domestic Covid-19 cases are spiking again and OPEC is signaling that it may turn the oil taps back on after having cut production earlier this year. That combination could bring another flood of fossil fuels to the market just as the U.S. industry started to find its feet again. OPECs experiment to increase production from August could backfire as we are still nowhere near out of the woods yet in terms of oil demand, Bjornar Tonhaugen, Rystad Energys head of oil market research, said in a client note Tuesday. The overall liquids market will flip back into a mini-supply glut and a swing into deficit will not happen again until December 2020.
Trumps visit also comes as polls show Texas is within relative reach for Joe Biden, his presumptive White House opponent. A Quinnipiac poll released last week showed Biden with a 1 percentage point lead over Trump. Still, the Lone Star State hasnt voted for a Democratic presidential candidate since 1976, and the solidly red oil industry hasnt shown signs of abandoning Trump. Deere said a combined $91,400 of donations from Double Eagle owners Cody Campbell and John Sellers since 2016 to Trumps campaign and Trump Victory, the joint Trump and Republican National Committee operation, did not influence the site visit or aid Double Eagle in securing PPP loans.
READY TO ROLL (AGAIN): The House Rules Committee adopted a rule setting up debate on a sprawling government funding package that includes 42 amendments to the Energy and Water title. Here are some of the measures that caught MEs eye:
Grant applications: Lawmakers will consider measures barring the rejection of grant applications for using the terms climate change or global warming, and sea level rise; Pebble mine: An amendment from Rep. Jared Huffman (D-Calif.) would bar the federal government from moving forward with permitting the proposed Pebble Mine project in Alaska; Big funding boosts: The chamber will consider whether to boost weatherization and energy efficiency grant funding by $250 million each in light of the economic strain wrought by the coronavirus pandemic; Transfers with offsets: Rep. Paul Gosar (R-Ariz.) has a host of amendments boosting funds for DOEs critical minerals and energy efficiency offices to be in line with Trumps request and adding $5 million each for cybersecurity and quantum computing efforts. A bipartisan amendment would transfer $5 million to DOEs fossil energy office. Grab bag: Amendments to clarify that DOEs Section 1703 loan guarantee program must go only to projects that avoid, reduce, or sequester greenhouse gas emissions; that bar governmental contacts with Trump-owned businesses and that stress safety requirements from FERC in dam approvals will also get votes.
No dice: A lightning-rod amendment from Rep. Alexandria Ocasio-Cortez (D-N.Y.) that would have blocked the Army Corps of Engineers from issuing a key water permit for any oil and gas pipeline will not get a vote. The amendment had rattled the oil and gas industry after a series of high-profile court losses relating to Corps water permits.
DNC COMMITTEE SENDS ALONG CLIMATE ADDITIONS: The Democratic National Committees platform committee approved several amendments that would beef up the partys stance on climate change. The DNC will now weigh whether to include statements that would, among other things: commit the U.S. to emissions targets keeping global temperatures below 1.5 degrees Celsius beyond preindustrial levels, rather than 2 degrees C; require companies to publicly disclose climate risks both physical and financial and greenhouse gas emissions in their operations and supply chains; ban new oil and gas permits on federal land and water; raise royalty rates for existing federal fossil fuel leases to account for climate change; and eliminate fossil fuel tax breaks and subsidies.
The DNC will vote on the new measures at its August convention, capping months of both public and private jockeying. The progressive-friendly DNC Council on the Environment and Climate Crisis, a DNC advisory body, has urged the party to go bolder on climate. Meanwhile, a unity task force composed of Biden confidants and allies of Sen.Bernie Sanders (I-Vt.) crafted a compromise climate platform. Biden followed up with a refreshed climate vision earlier this month, while the DNC last week laid out its own draft plan.
DO YOU KNOW THAT YOURE TOXIC? Coastal flooding fueled by sea-level rise and worsening storms linked to climate change increasingly threatens spreading toxics from Superfund sites throughout the U.S., according to a Union of Concerned Scientists report. More than 800 Superfund sites face flooding risks with low sea-level rise over the next 20 years, leaving public health implications for millions of people living nearby. Those closest to Superfund sites are also disproportionately people of color and low-income residents, creating equity concerns. The report argued executive or legislative action is necessary to improve Superfund sites abilities to withstand flooding, noting it is unlikely responsible parties will improve their sites resilience.
REPORT: DECARBONIZING CREATES JOBS: A rapid and total decarbonization of the U.S. economy by 2035 would create bout 25 million new jobs at the peak of the transition and 5 million sustained new jobs, according to a report by Rewiring America, a new nonprofit organization advocating a dramatic reduction in greenhouse gas emissions. The report said the effort would require a $3 trillion federal investment over a decade and save the average household up to $2,000 annually on energy costs.
ERNST VS. WHEELER, REDUX: Sen. Joni Ernst (R-Iowa) clashed again with EPA Administrator Andrew Wheeler over ethanol, Pro's Anthony Adragna reports. In a letter dated Tuesday, Ernst requested the EPA initiate a rulemaking certifying that existing infrastructure can handle 15 percent ethanol gasoline (E15) and remove an orange and black unnecessary warning label concerning E15 use. Iowa Republican and Twitter celebrity Sen. Chuck Grassley chimed in with a supportive tweet: "I agree w Sen Ernst EPA needs to hurry up w E-15 labels to show its a safe and clean fuel for cars & trucks Thx to Joni for her leadership on biofuels."
PARK POLICE CHIEF DEFENDS LAFAYETTE SQUARE APPROACH: U.S. Park Police Acting Chief Gregory Monahan defended the way his officers cleared Black Lives Matter demonstrators from near the White House last month, shortly before President Donald Trump's walk to a historic church, Anthony reports. Testifying at a House Natural Resources Committee and becoming the first Trump official to speak about the episode under oath Monahan also said the White House did not give the order to clear the protesters. His testimony maintaining that officers followed all rules in a volatile situation paints a far different image than the prepared testimony from a major in the D.C. National Guard who later told the panel the protesters' removal was deeply disturbing and appeared to be an infringement of their First Amendment rights.
CONSERVATIVES PUSH GOP ON CLIMATE BILL: A collection of climate-friendly conservative organizations urged Republican lawmakers to back the Growing Climate Solutions Act (S. 3894 (116)), which would create an Agriculture Department certification program enabling farmers, ranchers and forest managers to participate in carbon credit markets. As conservatives, we see this legislation as an opportunity to offer effective, meaningful, and fiscally responsible policies that can be enacted right now to mitigate the effects of climate change, Citizens for Responsible Energy Solutions, American Conservation Coalition, ConservAmerica, National Taxpayers Union and R Street Institute wrote in a letter.
TRASH TALK: The House Foreign Affairs Committee will mark up a series of bills that include legislation designed to foster international cooperation on removing plastics from the ocean (H.R. 4636 (116). A bill from Rep. Michael McCaul (R-Texas) would authorize the State Department and the U.S. Agency for International Development to work on improving waste management systems.
CARPER ASKS FOR BECK INQUIRY: Senate Environment and Public Works Committee ranking member Tom Carper (D-Del.) asked the EPA's inspector general to open a probe into Trump's nominee to head the Consumer Product Safety Commission for her role in changes that potentially weaken a final rule governing the import of toxic "forever chemicals, Pros Annie Snider reports.
Carper said his office learned that CPSC nominee Nancy Beck, who is now at the White House Council on Economic Advisers and previously worked at EPA, ordered that language be deleted stating that any portion of a product coated with PFAS was subject to the rule. Instead, he said, she directed a statement to be added indicating that EPA would later issue guidance about which coatings would be governed by the rule, "raising questions about whether that guidance would ultimately make fewer products coated with PFAS subject to the rule," according to Carper. He also alleged Beck nixed language in the signed version of the rule about Congress' intent relating to a step in the regulatory process for toxic chemicals.
EPA ADVANCES PFAS REGS: EPA on Tuesday sent a pair of proposals relating to PFAS to the White House for review. One is guidance (Reg. 2050-ZA18 ) that was mandated by Congress in last years defense bill on how to dispose of waste containing the chemicals that are nearly impossible to break down. The other is a rule mandating a new round of drinking water testing (Reg. 2040-AF89 ) that the Trump administration has said will include new monitoring requirements for PFAS. An earlier round of drinking water monitoring for PFAS was limited to a handful of chemicals and did not require utilities to test down to the very low concentrations that scientists now say can pose health dangers.
Speaking of EPA and regulations: Wheeler will join the Heritage Foundation for a 10 a.m. webinar. Heritage said the event will get to the truth about the agency's 2020 regulatory actions and what they mean to Americans.
COURT UPHOLDS FIRST VAPOR INTRUSION SUPERFUND LISTING: A federal court on Tuesday upheld EPA's first-ever addition to the Superfund National Priorities List based solely on "vapor intrusion," a process by which noxious vapors emanate from soil into buildings. EPA in 2018 listed a former wheel-covering manufacturing and chrome-plating site in northern Mississippi; Meritor, the company now responsible for the site, said EPA failed to consider steps it had already taken to lessen the intrusion. But a three-judge panel of the D.C. Circuit Court of Appeals rejected Meritor's arguments, calling EPA's listing "reasonable and consistent with the governing regulatory provisions."
WATCHDOG FAULTS MSHA CORONAVIRUS RESPONSE: The Mine Safety and Health Administration must do more to protect miners from the coronavirus pandemic, the Labor Department's inspector general said in a new report. The agency's Covid-19 guidance remains unenforceable absent a temporary emergency rule, which MSHA has declined to issue. The Labor IG also flagged reduced enforcement, delayed inspections, PPE shortages and postponed mine rescue trainings as challenges to carrying out MSHA's mission. The agency agreed with the recommendations to monitor and manage the enforcement backlog and track Covid-19 outbreaks at mines and use that to potentially reevaluate the decision not to issue an emergency standard.
Oil and gas groups see some common ground in Biden energy plan, via The New York Times
The curse of both-sidesism: How climate denial skewed media coverage for 30 years, via Grist
EPA Biomass Carbon Rule Delayed Over Potential Ties To RFS, ACE, via Inside EPA
Murray Energy finds bankruptcy exit path, discloses $15.7M founder settlement, via S&P Global
Believe It Or Not, Forests Migrate But Not Fast Enough For Climate Change, via NPR
A message from Chevron:
Its only human to protect the world we all live in. Through our $100 million Future Energy Fund, were investing in startup companies working to capture carbon. Learn more.
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Trump talks oil in Texas as pandemic, recession rage - Politico