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Extracted

EXTRACTED: Daily News Clips 2/12/24

Mark Hefflinger, Bold Alliance (Photo: Bryon Houlgrave/Des Moines Register

By Mark Hefflinger

February 12, 2024

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PIPELINE NEWS

  • E&E News: Court Leans Toward Enbridge In Line 5 Pipeline Fight 

  • Courthouse News Service: ‘A fight for the Great Lakes’: How a legal battle over 12 miles of oil pipeline could have international implications

  • UpNorthLive: GOP lawmakers urge environmental review of Line 5 tunnel project be expedited

  • Roanoke Times: More mud from Mountain Valley Pipeline construction, opponents say

  • E&E News: EVs or ethanol? Midwest eyes deep CO2 cuts in transportation.

  • KCWI: ‘It’s about protecting the citizens’: Advocates rally against carbon pipelines

  • Radio Iowa: Pipeline bill among many facing Friday deadline in Iowa legislature

  • Prairie News Service: ND law at center of carbon pipeline fight now under scrutiny

  • Dakota Scout: For some pipeline opponents, there is no middle ground

  • KSFY: Legislators discuss ways they are addressing CO2 pipeline concerns

  • South Dakotans First: ‘Land and Property Rights’ at the Watertown Winter Ag Show [VIDEO]

  • Sioux Falls Argus Leader: South Dakota could soon regulate hydrogen pipelines, same as carbon

  • Reuters: Canada regulator orders Trans Mountain to address deficiencies after B.C. floods

  • World Pipelines: Enbridge: pipeline congestion may continue even once TMX starts

  • WUSA: DC residents could see higher utility bills soon, if a Washington Gas pipeline project is given the green light

  • KERO: Pipe burst spills oil in front of Buena Vista Elementary School

WASHINGTON UPDATES

  • Press release: Climate Activists Disrupt Senate LNG Hearing

  • E&E News: Takeaways from Manchin’s natural gas export hearing

  • Reuters: LNG export review should weigh impact on green hydrogen market, US official says

  • E&E News: LNG projects are on — and off — FERC’s agenda

  • Reuters: Biden taps Democrat Phillips as head of FERC energy regulator

  • InsideEPA: Analysis Says EPA’s Methane Rule Could Have Big Effect On Marginal Wells 

  • Marcellus Drilling News: New Biden EPA Methane Rule Will Kill One-Third Of Active Gas Wells 

  • E&E News: McMorris Rodgers Exit Latest GOP Blow To Powerful Energy Panel

  • Canadian Press: Protectionist policy promises in U.S. election will be a challenge: Alberta premier

  • Reuters: US government announces intent to fund methane reduction projects

  • TIME: The Arctic Refuge Has Always Been A Case Study In Weaponizing—Or Worse—Science For Oil 

STATE UPDATES

  • Politico: California Proposes Permanent Fracking Ban 

  • Pittsburgh Post-Gazette: Carbon dioxide storage hub seeks 80,000 acres across Western Pa., Ohio and West Virginia

  • InsideClimate News: Wyoming, Slow To Take Federal Clean Energy Funds, Gambles State Money On Carbon Sequestration And Hydrogen Schemes To Keep Fossil Fuels Flowing 

  • Carlsbad Current-Argus: Oilfield workers struggle for healthcare, benefits in Permian Basin, UNM study says

  • Reuters: Phillips 66 reports fire at its Billings, Montana, refinery

  • Associated Press: Cargo train locomotive derails in Colorado, spilling 100s of gallons of diesel

EXTRACTION

  • CNN: Foods we eat are covered in plastics that may be causing a rise in premature births, study says

  • Wall Street Journal: Permian Rivals Reach Deal to Create $50 Billion Oil-and-Gas Behemoth

  • CBC: NDP MP wants to treat oil like tobacco. Alberta NDP doesn’t smoke the same stuff

  • iPolitics: Pathways Alliance lobbying the feds on carbon capture tax credit

CLIMATE FINANCE

  • Law360: Exxon Told Climate Proposal Suit Threatens Investor Rights 

  • Reuters: Barclays to adopt fresh curbs on oil and gas financing

TODAY IN GREENWASHING

  • Enbridge: Greening the Garden State through tree planting and education

OPINION

  • Detroit Free Press: Plan to relocate Line 5 oil tunnel ‘unusual and especially risky.’ Here’s why. 

  • Bloomberg: The $10 Billion Mistake That Will Revive Canadian Oil

  • Washington Examiner: How Texas carbon capture can restore American energy dominance

  • WyoFile: Mandated carbon capture sequesters resources better used elsewhere

  • The Hill: Loose 45V guidance would backfire on taxpayers, clean hydrogen, and climate

  • The Hill: Biden needs the youth vote — and he can’t get it without real action on climate change 

PIPELINE NEWS

E&E News: Court Leans Toward Enbridge In Line 5 Pipeline Fight 
NIINA H. FARAH, 2/9/24

“A Wisconsin tribe Thursday struggled to convince federal judges that they should act quickly to shut down the aging Line 5 oil pipeline on reservation lands,” E&E News reports. “During oral arguments, judges of the 7th U.S. Circuit Court of Appeals questioned whether a lower bench correctly found that the pipeline was trespassing on tribal land, and the court seemed frustrated that the Biden administration had not clearly signaled where it stands in the fight. Ultimately, the court indicated that it needs more input from the federal government. “Our plan is to wait to hear from the promised ‘yes or no’ decision on [the Department of Justice] filing an amicus brief,” said Judge Frank Easterbrook, “and then we may issue an order on what happens next.” The 7th Circuit asked DOJ to weigh in on the case last December. The department informed the court the day before the oral arguments that it would need another 30 days to respond. “We aren’t going to decide the case in the next month,” said Easterbrook, a Reagan appointee. “We really want to hear from the United States.”

Courthouse News Service: ‘A fight for the Great Lakes’: How a legal battle over 12 miles of oil pipeline could have international implications
DAVE BYRNES, 2/9/24

“Robert Blanchard, chairman of the tribal council for the Bad River Band of Lake Superior Chippewa, is a soft-spoken man,” Courthouse News Service reports. “…Blanchard and other Bad River Band members came to the courthouse for oral arguments before the Seventh Circuit, the latest development in their yearslong legal fight with oil pipeline operator Enbridge. Mirroring other Indigenous communities’ struggles against pipeline operators, the Bad River Band wants Enbridge’s Line 5 pipeline off its land… “The band also wanted far more in compensation than the $5.15 million awarded by the lower court, arguing that since 2013 Enbridge had made an estimated $1.1 billion in profits off Line 5. The case is in an appellate panel’s hands now, with U.S. Circuit Judge Frank Easterbrook, a Ronald Reagan appointee, saying he and his fellow U.S. Circuit Judges Michael Scudder and Amy St. Eve, both Donald Trump appointees, wouldn’t issue a ruling for a least a month. The panel’s decision could have far-reaching consequences, not just for the Bad River Band but for international relations, the Great Lakes’ ecosystems and Indigenous communities across the U.S. “I really hope folks can realize that our fates are intertwined… they’ve been fighting this fight for a decade now and it’s becoming a fight for the Great Lakes,” Whitney Gravelle, president of Michigan’s Bay Mills Indian Community, told CNS… “You can’t fish if there isn’t an environment for the fish to live in,” she said… “Gravelle also argued a ruling in Enbridge’s favor, either to suspend the 2026 shutdown deadline or to avoid paying the Bad River Band more than $5.15 million, would send a signal to the broader oil industry that the courts are on their side. Beth Wallace, Great Lakes freshwater campaigns manager for the environmental nonprofit National Wildlife Federation, agreed. “$5 million for years of trespass? Every oil company will look at that and say, ‘Well, we’ll just keep trespassing because that’s just the price of doing business,'” Wallace told CNS. “It’s a threat to Indigenous communities across the country.” “…But regardless of how the appellate court rules — and what the ramifications of that ruling might be — Blanchard told CNS he and the rest of the Bad River Band would continue to fight for their land.”

UpNorthLive: GOP lawmakers urge environmental review of Line 5 tunnel project be expedited
Brandon Chew, 2/8/24

“Thirty-five Republican State Representatives from Michigan sent a letter to the U.S. Army Corps of Engineers urging them to expedite their review of the potential environmental impacts of Enbridge’s proposed Great Lakes Tunnel Project,” UpNorthLive reports. “…We respectfully request your assistance in accelerating the Environmental Impact Study (EIS) process to facilitate the commencement of construction,” the letter states. “A tunnel beneath the Straits of Mackinac is the optimal solution to safeguard the Great Lakes while ensuring vital energy products are continuously provided to residents in Upper and Lower Michigan, as well as communities nationwide.” The letter argues that the tunnel project is necessary for Michigan residents who rely on propane for heating. “Approval by the Army Corps of Engineers is the final hurdle impeding the much-needed infrastructure update that is the GLTP,” the letter continues. “Throughout its development, the GLTP has withstood rigorous scrutiny at every stage, substantiating its necessity, environmental soundness, and its standing as the optimal solution for preserving our Great Lakes and delivering essential energy resources. In light of the protracted delays encountered thus far, we urge you to consider expediting the project through the EIS process to reverse the delays the project has experienced thus far.” “…The United Nations Permanent Forum on Indigenous Issues recommended in April 2023 that Line 5 be decommissioned and stated the “pipeline presents a real and credible threat to the treaty-protected fishing rights of Indigenous Peoples in the United States and Canada.”

Roanoke Times: More mud from Mountain Valley Pipeline construction, opponents say
Laurence Hammack, 2/12/24

“Not far from where Sinking Creek winds through this historic village and passes under a covered bridge, muddy water flowed up from the ground Wednesday in what is normally a clear-running natural spring. About a half mile away, construction crews worked on steep slopes to build a natural gas pipeline that descends into the community, burrows under Blue Grass Trail (Virginia 42) and the adjacent Greenbrier Branch, and makes its way back up a mountainside,” the Roanoke Times reports. “Did muddy runoff from work on the Mountain Valley Pipeline wind up in the natural spring? Direct answers were not available from the Virginia Department of Environmental Quality or Mountain Valley. But what’s happening at Sinking Creek is just the latest in a series of problems that have long plagued the controversial project, opponents told the Times. A letter from 29 community and statewide organizations asks DEQ to stop work on the pipeline. “Despite the fact that MVP has been allowed to rip and blast through the countryside and our waters for extended periods since early 2018, it has yet to correct its plans and its behavior in a way that avoids the very same kind of violations first seen six years ago,” states a letter sent Thursday to DEQ Director Michael Rolband… “Donna Pitt of Preserve Giles County watched the orange-brown water flow past her as she stood next to the spring Wednesday afternoon. What she saw, Pitt told the Times, was exactly what pipeline opponents have warned about for years in comments to regulatory agencies. “We knew that it was going to be a disaster of some kind, somewhere,” Pitt told the Times. “And the fact that it is in Sinking Creek, the community that has fought Mountain Valley from the beginning, just infuriates me.” Drinking water has been contaminated for at least two homes that rely on wells or springs, she told the Times. And plumes of sediment were visible in the creek as far as three miles downstream from the contaminated spring… “Last week’s request for a stop-work order was made by groups that include Wild Virginia, the Protect Our Water, Heritage, Rights coalition, Preserve Giles County, the Virginia League of Conservation Voters, and the Sierra Club’s New River Valley Group. The 17-page letter included detailed descriptions of cases in which sediment infiltrated Sinking Creek, the Bottom Creek watershed on Bent Mountain and other streams and wetland along the pipeline’s route, which runs from northern West Virginia, through Southwest Virginia, to connect with an existing pipeline near the North Carolina line.”

E&E News: EVs or ethanol? Midwest eyes deep CO2 cuts in transportation.
Jeffrey Tomich, 2/12/24

“After recently enacting laws requiring 100 percent carbon-free power, Midwest blue states are eyeing tailpipe emissions,” E&E News reports. “In Minnesota, a state-appointed working group last week issued a report with recommendations for a clean transportation standard, requiring reductions in the carbon intensity of vehicle fuels over the next two decades. Bills to establish similar standards are also on file in states including Michigan. And there’s legislation in Illinois for the state to become the first in the Midwest to adopt California’s Advanced Clean Cars II rule — a policy that would eliminate the sale of new gasoline-powered cars in 2035… “Now taking a closer look at the issue, policymakers in farm states face the question: Should they embrace ethanol and carbon capture and storage (CCS) as a long-term solution to decarbonizing transportation? The answer to that question in the report to Minnesota’s Legislature is an unequivocal yes — a position that’s gotten blowback from the Sierra Club and some other environmental groups… “Getting locked into ethanol wars is unproductive,” Jeremy Martin, a senior scientist and director of fuels policy at the Union of Concerned Scientists and a part of the Minnesota working group, told E&E. “People feel like electricity and biofuels are competing. And I think that’s a mistake.” “…Not all 40 members of the clean transportation working group are on board with the recommendations, which drew quick criticism from four environmental advocacy organizations. The green groups published their own “minority report” and said the recommendations from the majority are fundamentally flawed and based on politics, not science. It is “based on the faulty assumption that ethanol is helping the climate,” Peter Wagenius, legislative and political director for the Sierra Club’s North Star Chapter, told E&E… “Dissenting environmental groups, however, dispute the idea that Minnesota lawmakers could prohibit their neighbors in North Dakota from using the CO2 for enhanced oil recovery. “The only way to prevent CO2 from ethanol plants from being piped in North Dakota … is to prohibit the construction of the pipeline itself,” Wagenius told E&E.

KCWI: ‘It’s about protecting the citizens’: Advocates rally against carbon pipelines
Dana Searles, 2/8/24

“Advocates and landowners rallied at the state capitol on Thursday, pushing for legislation that would bring establish oversight over the Iowa Utilities Board when issuing CO2 pipelines,” KCWI reports. “The bill would also require the courts to determine if eminent domain is applicable to the carbon pipeline… “The biggest threat to Iowa is happening right now,” Martin Maher told KCWI. “Our prime farmland is at the risk of being destroyed.” “…It is a private economic developer project, they should use voluntary ESMIS to build it,” Rep. Steven Holt, R-Denison, told KCWI. “They should not use the heavy-handed government to take the private property of others, and that is what the issue is here and that is what our legislation tries to get to.” Holt, who introduced this legislation in the house, told KCWI the current carbon pipeline process raises constitutional questions regarding eminent domain.  “In the current situation, getting the court to weigh in on whether this is a public use project, at least that constitutional requirement, it would avoid a lot of heartache down the road, so I think that’s the most important part of the proposal and I think that’s what I’m gonna fight to try to get through,” Holt told KCWI… “Eminent domain, if this is allowed, it won’t stop with a pipeline,” Kathy Carter, a landowner impacted by the Summit pipeline, told KCWI. “It will go on to other projects, other companies, it will snowball.” “…We’re here today to say, this isn’t just about eminent domain,” said Jess Mazour, conservation program coordinator for the Sierra Club of Iowa.  “It’s not just about a greedy company coming in and trying to take our land, it’s about protecting the citizens of the state.” 

Radio Iowa: Pipeline bill among many facing Friday deadline in Iowa legislature
O. Kay Henderson, 2/12/24

“A bill to set new standards for future pipelines and electric transmission lines as well as wind farms and solar arrays is among the many bills that face a deadline. Bills have to clear a committee in the Iowa House or Senate by the end of this week or they’re set aside for the year,” Radio Iowa reports. “Republican Senator Dennis Guth of Klemme told Radio Iowa one goal of his bill is to ensure companies that install pipelines and electric generating facilities on farmland are responsible when problems — like sink holes — crop up long into the future. “It’s pretty scary when you’re going through a field with combine and suddenly there’s a hole right in front of me,” Guth told Radio Iowa. “I stopped one time with my corn head hanging over the hole going, ‘Oh! I need to back up here.’” “…t allows for initial contact and, after initial contact, the landowner has to sign off on a letter to say: ‘Yeah, it’s OK. I want to continue negotiating,’” Guth told Radio Iowa. “I know there have been some landowners, especially older landowners, that finally gave in just because they just wanted these people to go away and that’s really not the way to win a contract.” “…Guth’s bill is not retroactive. “It does not actually affect the current pipelines,” he told Radio Iowa. “Kind of wish it did, but I know that anything that’s doing that is not getting anyplace in the senate.”

Prairie News Service: ND law at center of carbon pipeline fight now under scrutiny
2/11/24

“A North Dakota lawmaker is calling into question a state law change that drew a lot of attention this week,” Prairie News Service reports. “…State Representative SuAnn Olson wonders whether recent changes to the law tied to the decision should be in place anymore. “It was never envisioned, I’m sure, to be this far-reaching. And, you know, no doubt the PSC, all they can do is wrestle with what the current Century Code says. What it says to me is that the Legislature really needs to look at that this next session.” The Legislature isn’t expected to meet again until next year, and Olson couldn’t speak to whether a special session is necessary… “Summit has argued the local ordinances are unreasonably restrictive, and contends it will use strong safety measures. But Olson, who represents an area along the proposed route, doesn’t feel reassured. “If there is a breach, this pipeline is near so much population – or has the ability to touch so many people – that the route they’re proposing, north of Bismarck, is untenable, in my view.” “…Meanwhile, an attorney representing landowners fighting the project says his team plans to appeal the P-S-C decision.”

Dakota Scout: For some pipeline opponents, there is no middle ground
AUSTIN GOSS, 2/10/24

“South Dakota legislative leadership is touting its ability to work together to find common ground on carbon capture pipelines. But for many seasoned pipeline opponents, there remains essentially no chance of compromising,” the Dakota Scout reports. “That’s been the sentiment expressed among hardline opponents in the grassroots and the Legislature, who say that their staunch opposition to Summit Carbon Solutions — a company that wants to build hundreds of miles of carbon capture pipelines through the eastern part of the state — is unwavering, despite a more conciliatory tone than last year from project supporters. “When I talk to landowners, the consensus hasn’t changed,” Rep. Jon Hansen, one of the lawmakers leading the opposition to the use of eminent domain for the carbon pipelines, told the Scout. “You can’t just throw money at a landowner and think that satisfies them.” 

KSFY: Legislators discuss ways they are addressing CO2 pipeline concerns
Beth Warden, 2/11/24

“Landowners across the state have captured the attention of South Dakota legislators who have varying opinions on CO2 pipelines,” KSFY reports. “Senator Casey Crabtree told KSFY a bill he introduced, SB 201, could bring some common understanding between CO2 pipeline companies and landowners… “Within SB 201, however, a major concern about local government: removing decision-making power away from municipalities, townships and counties… “Some landowners told KSFY there’s an elephant in the room yet to be discussed. “I don’t think the legislature really wants to dive in or get to the root of the problem. And that’s condemnation for private companies that do not provide a public utility,” landowner Craig Shaunaman told KSFY. “This power of eminent domain or threat of condemnation for a private for-profit company would set a dangerous precedent for the future,” landowner Joy Hohn told KSFY. One lawmaker is trying to address those concerns. “So Monday morning, in the House of Representatives in committee, we’re going to be hearing a bill that I’m bringing it’s House Bill 1219. And that bill basically says if you’re going to construct a carbon sequestration pipeline, and the main purpose of your pipeline is to just bury carbon, that there’s no public use for that, then that’s not eligible for eminent domain,” Rep. Jon Hansen told KSFY.”

South Dakotans First: ‘Land and Property Rights’ at the Watertown Winter Ag Show [VIDEO]
2/8/24

“Featured speakers were Craig Schaunaman, Brown County farmer and board member of South Dakotans First, Suzanne Smith a Spink County Commissioner, and Doug Sombke President of South Dakota Farmers Union and board member of South Dakotans First. Recorded at the ‘Land and Property Rights’ at the Watertown Winter Ag Show on February 7th, 2024,” according to South Dakotans First.

Sioux Falls Argus Leader: South Dakota could soon regulate hydrogen pipelines, same as carbon
Dominik Dausch, 2/8/24

“Just as the South Dakota’s Governor’s Office of 2009 foresaw the need for carbon dioxide pipelines to come under the purview of state regulators, so too did this year’s legislative body decide the same for hydrogen transmission,” the Sioux Falls Argus Leader reports. “House Bill 1034, a bill requiring hydrogen pipelines to be permitted by the South Dakota Public Utilities Commission, was passed on a 27-5 vote by the South Dakota Senate on Wednesday. HB 1034 now awaits Gov. Kristi Noem’s signature to be made law. The legislation was largely uncontested in the House, as it received a unanimous “yea” vote from the Commerce and Energy Committee on Jan. 12 and a 66-3 vote from the chamber on Jan. 16… “In 2009, South Dakota lawmakers passed House Bill 1129, which established the PUC’s authority over carbon dioxide pipelines 13 years before they ever received a formal permit to build such a transmission network. Similarly, today’s HB 1034 is meant to be a forward-looking bill. Its passage would ensure a process exists for hydrogen pipelines to be permitted in the state, as long as potential projects withstand the PUC’s regulatory oversight… “In response to an inquiry to Argus Leader, Xcel Energy, one of the partners involved in the hub, denied plans to build pipelines in South Dakota. The hydrogen hub’s website indicates “connective infrastructure” will be used to transport low-carbon hydrogen produced in the region. “Connective infrastructure refers to infrastructure required to transport intermediates and products along the supply chain and can include truck, rail, barge, pipeline, etc.,” Nikki Krueger, director of communications and information services of the Energy & Environmental Research Center, a University of North Dakota research facility and one of the hydrogen hub’s partners, told the Argus Leader.”

Reuters: Canada regulator orders Trans Mountain to address deficiencies after B.C. floods
Ismail Shakil and Nia Williams, 2/8/24

“The Canada Energy Regulator (CER) has ordered the Trans Mountain pipeline expansion project to address environmental deficiencies and noncompliances found following flooding near Abbotsford, British Columbia, the regulator said on Thursday,” Reuters reports. “CER officers conducted an inspection and found that Trans Mountain was not properly maintaining a watercourse isolation, wildlife fencing, soil coverings, and dewatering pump and sump locations, the CER said in a statement. The order was issued on Jan. 31 and requires Trans Mountain to take a number of measures to address the problems, including investigating the root cause and implementing a water management plan for that section of pipeline. “We will continue to follow up with the company to ensure it complies with the Inspection Officer Order. Once the company sufficiently addresses the requirements list above, the order will be lifted,” the CER said.

World Pipelines: Enbridge: pipeline congestion may continue even once TMX starts
Isabel Stagg, 2/12/24

“Growing Canadian oil production means shipper volumes may still be rationed on the Enbridge Inc. Mainline pipeline system even once the Trans Mountain Expansion (TMX) project is operating, an Enbridge executive said on Friday,” World Pipelines reports. “Calgary-based Enbridge shipped a record 3.2 million bpd of crude on the Mainline in 4Q23, helping it report quarterly profits of CAN$1.73 billion, compared to a loss of CAN$1.07 billion a year earlier. Last year Enbridge warned the start-up of the 590 000 bpd TMX project would likely cause Mainline volumes to fall, but that notion has become a “bit of a stale concept”, said Colin Gruending, Executive Vice President of liquids pipelines. “(TMX) has been delayed materially and in that multi-year period of delay, supply has structurally and permanently grown,” Gruending told an earnings call. He said those delays were a “slight tailwind” for the Mainline, which ships the bulk of Canada’s crude exports to the US. “We may still have apportionment once TMX comes in, depending on the month or day or crude slate,” Gruending added.

WUSA: DC residents could see higher utility bills soon, if a Washington Gas pipeline project is given the green light
Alexis Wainwright, 2/9/24

“A proposed pipeline project in D.C. is getting mixed reactions from neighbors, as residents could be hit with higher utility bills if the projct is given the greenlight,” WUSA reports. “Washington Gas has proposed Project Pipes, the third phase of its accelerated pipeline project launched in 2014 to upgrade aging infrastructure. The project, however, would add a surcharge for customers over the next five years to pay for it. Several DC Councilmembers and people in the community are speaking out against the program. “They’re just asking the public service commission to be able to charge $672 million to D.C. residents and ratepayers just to dig up infrastructure,” Councilman Charles Allen said. Allen represents Ward 6 and said he doesn’t think this should be approved. Ten of 13 DC councilmembers signed a letter to the Public Service Commission to reject it. “That’s going to hit the bottom line of households and businesses a lot and I think the majority of council is saying let’s hit pause on that,” Allen said. “That’s not how we want to go hit the ratepayers for more money.” Some neighbors that WUSA spoke to agreed that Washington Gas should be funding the project.  “I would feel some kind of way about it because I’m paying now in utilities, so I do not want an increase,” Pamela Jones told WUSA. 

KERO: Pipe burst spills oil in front of Buena Vista Elementary School
Dominique LaVigne, 2/8/24

“A pipe burst on Monday afternoon in front of Buena Vista Elementary School, spilling oil onto the intersection of Panama Lane and Buena Vista Road,” KERO reports. “This is where parents usually line up to pick up their kids from Buena Vista Elementary School, but that routine was disrupted on Monday by these ongoing cleanup efforts… “That was right around the time that we were releasing students,” Chantel Stansberry, the public information officer with the Panama-Buena Vista School District, told KERO… “According to the initial report from Kern Energy on Monday afternoon, crude oil began releasing from an underground pipe that runs from Bakersfield to a refinery. The most recent update says up to 10 barrels of oil may have been released in the spill, but that total has not been confirmed… “Stansberry told KERO parents should check Parent Square for updates about the cleanup for more about how it will impact your student.”

WASHINGTON UPDATES

Press release: Climate Activists Disrupt Senate LNG Hearing
2/8/24

“Over a dozen climate activists were arrested at the Capitol today after disrupting the Senate Energy and Natural Resources Committee’s hearing examining the Biden administration’s pause on approvals for new liquefied natural gas (LNG) export terminals. The pause, which is widely celebrated by climate and movement leaders alike, would allow the Department of Energy (DOE) to update the public interest determination process instead of rubber stamping approvals without properly considering projects’ impacts on the climate and communities. Wearing t-shirts reading “LNG Kills,” the activists stood up and voiced deep concern regarding Congress’ willingness to support expanding LNG infrastructure. Activists were handcuffed and escorted out by Capitol police, amongst cheers from the crowd. Senator Joe Manchin, one of the top recipients of oil and gas industry campaign contributions this cycle, and Senator John Barrasso, who has taken at least $1.5 million in oil and gas cash over his career, attacked this commonsense policy that would allow for the DOE to listen to frontline communities and energy, national security and economic experts in order to reassess the impacts of new LNG export authorizations on public health, the economy, and the climate. Pausing new LNG export facilities is a widely popular decision, with voters supporting limits on natural gas exports by a 2-to-1 margin, including 59% of Independents and 62% of young voters aged 18-29. Videos opposing the projects have generated more than 25 million views across social media platforms, driving more than 450,000 signatures on petitions urging DOE to pause approvals. In December, more than 170 scientists wrote a letter urging President Biden to stop what they called the “staggering” buildout of export facilities, and in January, 60 members of the European Parliament sent an open letter to President Biden welcoming reports of an LNG export pause. Bob Muehlenkamp, Third Act activist arrested for interrupting today’s hearing, said, “I’m almost 80 years old and I have six grandchildren — Maddie, Max, Leo, Dylan, Rory, and Philly. They are in this room with us and will inherit the Earth. But LNG is killing this Earth. That is the fossil fuel legacy. We want a different legacy. Listen to the science, keep fossil fuels in the ground. That is the legacy we want for the Earth and our grandchildren.”

E&E News: Takeaways from Manchin’s natural gas export hearing
Nico Portuondo, 2/9/24

“A Senate Energy and Natural Resources Committee hearing Thursday was the administration’s first big chance to defend its decision to halt natural gas export reviews,” E&E News reports. “Deputy Secretary of Energy David Turk had his work cut out. Chair Joe Manchin (D-W.Va.) and Republicans teamed up to roast the pause as nonsensical from both a geopolitical and climate standpoint, given the prominent role U.S. liquefied natural gas plays in meeting European energy demands and replacing their coal production. That contradicts messaging from the White House and Energy Secretary Jennifer Granholm, who have said the effect LNG exports have on climate change and domestic energy prices needs to be — at the very least — studied to safeguard the public interest. Manchin and Republicans wondered why Biden would find it necessary to pause new export terminal approvals while they conduct the review. “It was ill-advised from a political standpoint of sending out to the world right now that we might not be in the market,” said Manchin. “You don’t draw the brakes on everything and send scare tactics around the world before we know for sure.”

Reuters: LNG export review should weigh impact on green hydrogen market, US official says
Valerie Volcovici and Jeff Mason, 2/8/24

“A review of U.S. LNG that the Energy Department will conduct during a pause on new permits should weigh the impact of gas exports on the development of the emerging green hydrogen market, an administration official told Reuters on Wednesday. The DOE’s review will look at the economic and environmental impacts of projects seeking approval to export liquefied natural gas to Europe and Asia where the fuel is in demand. The review will require “months of work, not years of work,” a Biden administration official told Reuters… “The official told Reuters the U.S. is not “concerned at all” about the U.S.’ ability to meet current European demand and said European nations are rapidly “destroying their own demand for gas.” EU officials said last week that Europe has enough gas supply for the next 10 years.”

E&E News: LNG projects are on — and off — FERC’s agenda
CARLOS ANCHONDO, BRIAN DABBS, 2/9/24

“Federal regulators are set next week to consider allowing more time to finish a liquefied natural gas export terminal under construction in Louisiana, but they won’t use the meeting to vote on the high-profile Calcasieu Pass 2 project,” E&E News reports. “The Federal Energy Regulatory Commission is poised to take up a request by developers of the Driftwood LNG project for an additional three years to complete construction of the terminal and an associated pipeline. The project — owned by parent company Tellurian — is on the agenda for FERC’s Feb. 15 meeting, according to a notice posted Thursday. The independent commission’s agenda arrived after the Biden administration announced a pause last month on pending and future LNG export applications at the Department of Energy. The White House described the move as allowing a “hard look at the impacts of LNG exports on energy costs, America’s energy security, and our environment.” FERC authorizes the siting and construction of LNG import and export facilities, while DOE approves export licenses — including allowing projects to send the fossil fuel to countries that don’t have free-trade agreements with the United States.”

Reuters: Biden taps Democrat Phillips as head of FERC energy regulator
Timothy Gardner, 2/8/24

“U.S. President Joe Biden has appointed fellow Democrat Willie Phillips as chair of the Federal Energy Regulatory Commission, at a time when the usually low-key panel hopes to take on a more prominent role in transforming the U.S. energy system,” Reuters reports. “The White House made announcement on Friday. Democrats have a 2-1 majority in the commission as the Biden administration pursues its goal to decarbonize the power grid by 2035. The FERC, an independent panel of the Department of Energy, was mainly known for approving natural gas pipelines and export terminals for liquefied natural gas, or LNG. But this year it is expected to issue rules that could help expand or upgrade electricity transmission, getting power from wind and solar renewable projects to cities. “I’m laser focused on securing a reliable, affordable and sustainable energy future for our nation,” Phillips said in a post on the X social media network. Biden had named Phillips acting FERC chair in January 2023. In coming months the FERC may approve Venture Global’s Calcasieu Pass 2 (CP2) LNG terminal in Louisiana, which would be the country’s biggest. But Biden has paused approvals at the Department of Energy for LNG exports to conduct an economic and environmental review of the booming business. That could leave full federal approval of CP2 in limbo until sometime after the pause is reversed.”

InsideEPA: Analysis Says EPA’s Methane Rule Could Have Big Effect On Marginal Wells 
2/9/24

“Energy analysts are circulating estimates that over a third of producing oil and gas wells could be rendered ‘uneconomic’ by EPA’s methane standards for the sector, though the analysis focused on low-producing wells also bolsters EPA claims that its rule would result in only minimal changes to overall oil and gas production,” InsideEPA reports. “The estimates could help to quantify the rule’s effects on smaller wells, highlighting why the rule has faced stringent opposition from industry groups representing smaller companies even as large oil companies are in some cases publicly supporting the rule. “Our analysis is relatively in line with the EPA’s analysis of its rule,’ the firm Enverus Intelligence Research (EIR) told InsideEPA Even so, “[w]e believe our analysis is additive to the EPA’s work in calling attention to the impact on active well count (rather than production) and what that could mean for plugging and abandonment timelines,” the firm told InsideEPA. EPA’s December final methane standards “represent a step change in fixed costs that will impact lower-producing wells across the nation,” EIR says in a Feb. 7 press release on its analysis. “Although these wells make up a small portion of overall production, they make up a sizeable portion of active wells in the U.S.”

Marcellus Drilling News: New Biden EPA Methane Rule Will Kill One-Third Of Active Gas Wells 
2/8/24

“EPA Administrator Michael Regan used a considerable amount of fossil energy and emitted tons of carbon dioxide to jet over to Dubai in December to participate in the COP28 confab, where he released a final rule that was ‘two years in the making’ to force the U.S. oil and gas industry to cut methane emissions by using budget-busting new technologies and onerous (frequent) inspections (see Bidenistas Unleash Hellscape of U.S. Methane Regs at COP28),” according to Marcellus Drilling News. “A new analysis by Enverus says these onerous new regs will likely force the closure of some one-third (34%) of actively producing gas wells in the country and result in the bankruptcy of many small drillers.” 

E&E News: McMorris Rodgers Exit Latest GOP Blow To Powerful Energy Panel
Josh Siegel, 2/8/24

“House Energy and Commerce Chair Cathy McMorris Rodgers (R-Wash.), a frequent critic of the Biden administration’s climate agenda, said Thursday she won’t seek reelection,” E&E News reports. “Her planned departure marks the latest in a series of announced Republican exits from a panel largely responsible for legislating on key energy issues such as permitting. McMorris Rodgers began chairing the committee this term and will continue in the position for the rest of the year, saying in a statement the committee will work to “legislate on solutions to make people’s lives better and ensure America wins the future.” But her planned exit opens up the top Republican spot on the committee next year, and it comes as other top GOP leaders on the panel have also departed or announced plans to retire. Ohio Republican Rep. Bill Johnson, who chaired the Environment, Manufacturing, and Critical Materials Subcommittee, left Congress last month. Rep. Kelly Armstrong (R-N.D.) the vice chair of the committee, is retiring to run for North Dakota governor, while Rep. Jeff Duncan (R-S.C.), chair of the Energy, Climate, and Grid Security Subcommittee, has announced his retirement.” 

Canadian Press: Protectionist policy promises in U.S. election will be a challenge: Alberta premier
2/8/24

“Premier Danielle Smith says no matter the outcome of the United States election, there will be challenges for Canada and Alberta,” the Canadian Press reports. “She said both President Joe Biden and former president Donald Trump have policies that could harm or restrict trade with Canada. “Both have protectionist policies that would be damaging to our country and our province,” Smith said at the Canadian Embassy in Washington on Thursday. Trump, who has become the Republican party front-runner in the race, has proposed a 10 per cent tariff on all imported goods to the U.S… “Biden has largely kept in place tariffs from the Trump administration despite promises to reverse them. The president also pulled the permit on the Keystone XL crude oil pipeline in 2021. The pipeline was to transport crude from the western Canadian oilsands to Nebraska, and Alberta had invested more than $1 billion in the project. Smith said whoever wins the U.S. election in November must recognize the importance of its relationship with Canada… “Smith is meeting with lawmakers on Capitol Hill, for the first time since becoming premier in 2022, to promote Alberta’s energy industry and environmental technologies… “Smith said she’s been urging American politicians to recognize the importance of Enbridge Line 5, a controversial cross-border oil and gas pipeline… “The premier also spoke about the importance of natural gas and the emerging opportunities it provides Canada. She said it will be the “base of the future economy.” “…Smith said the American pause could be a boon to the Canadian energy market. “We will hopefully be able to take advantage of that off the coast of British Columbia,” Smith said.

Reuters: US government announces intent to fund methane reduction projects
2/9/24

“The U.S. Environmental Protection Agency (EPA) and the Department of Energy (DOE) released a notice of intent on Friday to help fund projects aimed at reducing methane emissions from the oil and gas sectors,” Reuters reports. “The notice was issued to give applicants enough time to prepare their proposals and form partnerships if needed in anticipation of the upcoming issuance of the funding opportunity announcement, the agency added… “Emissions from power plants have fallen sharply in 2023 in the 10 U.S. states participating in the “Good Neighbor” plan, but the program has not yet gone ahead in 12 other states.”

TIME: The Arctic Refuge Has Always Been A Case Study In Weaponizing—Or Worse—Science For Oil 
Finis Dunaway, 2/8/24

“In September 2023, Secretary of the Interior Deb Haaland canceled the remaining fossil fuel leases in Alaska’s Arctic National Wildlife Refuge, auctioned off during the waning days of the Trump administration. Denouncing the oil and gas leasing program as ‘seriously flawed,’ Haaland emphasized the ‘insufficient’ environmental review conducted by Trump’s Interior Department. Interior officials had sold off drilling rights to the Arctic Refuge while willfully ignoring scientific evidence about the potential impacts of fossil fuel development. Yet the Trump Administration was merely following a playbook devised more than three decades before. Throughout the long debate over the Arctic Refuge, drilling proponents have ignored or sometimes altered data, weaponizing science to support their push for fossil fuel development. Meanwhile, government scientists, who patiently spent years completing rigorous studies of wildlife habitats, found their research warped or misrepresented in the rush to turn the refuge’s coastal plain into an industrialized oil field. From Reagan to Trump, successive Republican administrations subverted democratic processes by manipulating and suppressing Arctic science.” 

STATE UPDATES

Politico: California Proposes Permanent Fracking Ban 
WES VENTEICHER, 2/9/24

“California’s oil and gas regulator issued a proposal Friday to formally end hydraulic fracturing in the state,” Politico reports. “The Department of Conservation’s Geologic Energy Management Division drafted the rule based on a 2021 order from Gov. Gavin Newsom to ban fracking this year as part of the state’s fight against climate change… “The proposal would end a drilling technique that is unpopular with the public and has been used to induce as much as a fifth of the total oil and gas produced in California over the last five years, according to CalGEM’s analysis, dealing another blow to an industry on its heels… “The oil and gas industry cast the move as ‘political assault’ from a governor who has made Big Oil one of his top adversaries. “These types of policies are devastating to our state’s energy supplies, which are rapidly shrinking under the Newsom administration, and will likely lead to even higher energy costs for California consumers,” Katherine Reheis-Boyd, president of the Western States Petroleum Association, told Politico.” 

Pittsburgh Post-Gazette: Carbon dioxide storage hub seeks 80,000 acres across Western Pa., Ohio and West Virginia
Anya Litvak, 2/12/24

“Landmen are knocking on doors again in southwestern Pennsylvania, eastern Ohio and West Virginia,” the Pittsburgh Post-Gazette reports. “This time, it’s not to make deals for what’s already in the ground, but for the empty spaces that could hold the region’s industrial waste — the carbon dioxide that comes out of smokestacks across the tri-state region. Omaha, Neb.-based Tenaska is developing a Tri-State CCS Hub. CCS stands for carbon capture and sequestration, but Tenaska’s role will be in the second category. Its vision involves collecting carbon dioxide captured by industrial plants and injecting it into 20 to 30 wells across the three states, with three wells to be sited in Washington County… “We’ve got active negotiations with lots of landowners across eight counties in three states,” Bret Estep, vice president of development for Tenaska, told the Post-Gazette. The reception so far has been “excellent,” he told the Post-Gazette. “I’ve been very impressed.” Last fall, Tenaska submitted a proposal to Washington County to option a few surface acres for a well and 1,377 acres under Cross Creek County Park for carbon storage. According to a document submitted to the county’s planning commission, Tenaska was offering a bonus payment of $50 per acre for the option of CO2 storage which, if exercised, would then yield another bonus of $350 per acre for pore rights. The offer also included an annual payment per acre, starting at $50 the first year and increasing by 3% each year for the next 30. The company’s calculations showed Washington County would receive $3.9 million over the next three decades. Cross Creek County Park is already peppered by shale gas wells drilled by Range Resources Corp., a point noted by the staff of the planning commission, which briefly discussed the proposal at its Oct. 4 meeting. The commissioners decided to table the proposal while its staff researches potential impact to the environment and public safety, logistical issues and bonding and benefits, according to the meeting minutes. Other than that, the effort has been mostly under the radar. Tenaska told the Post-Gazette it has secured about a dozen sites for injection wells across the three-state footprint and thousands of acres of pore rights so far, but declined to disclose specifics or give a capital cost for the entire project.”

InsideClimate News: Wyoming, Slow To Take Federal Clean Energy Funds, Gambles State Money On Carbon Sequestration And Hydrogen Schemes To Keep Fossil Fuels Flowing 
Jake Bolster, 2/9/24

“Microorganisms are fantastically adaptable, living almost anywhere from the subzero temperatures of the Arctic to boiling volcanic soil. Somewhere on that spectrum are the microscopic organisms that reside thousands of feet below the earth’s surface, munching through reserves of coal. In Wyoming, the nation’s top producer of the flammable rock, Cowboy Clean Fuels, a Western energy company, has proposed feeding these microbes molasses to produce a different source of energy. The process begins with beet sugar crystalized into molasses, which the company plans to inject into coal seams. There, microbes feasting on it would secrete two gasses—carbon dioxide and methane, a process called methanogenesis. The CO2 would, the thinking goes, be sequestered in the coal while the methane gets ‘induced’ back up the seam to be burned as natural gas, which emits more CO2,” InsideClimate News reports.

Carlsbad Current-Argus: Oilfield workers struggle for healthcare, benefits in Permian Basin, UNM study says
Adrian Hedden, 2/8/24

“Eric Saucedo, 21, said he was hurt at his job in the oilfields of the Permian Basin but struggled to receive any medical treatment,” the Carlsbad Current-Argus reports. “…Saucedo told the Current-Argus the region lacked safe, stable jobs, and many oil and gas workers did not receive health benefits needed when they get hurt. “It is not fair that our families have to pay with their health and safety and often their lives in order to have a job and provide for their families,” he told the Current-Argus. “We are the economic drivers of the state’s economy, yet we are the most forgotten.” About 57 percent of current and former oilfield workers surveyed in the Permian Basin were not provided health insurance by their employer, according to a recent study by the University of New Mexico. Another 46 percent of respondents said they had an accident on the job, the report read, while just 21 percent got retirement benefits and 78 percent did not have access to unemployment. The survey, commissioned by worker advocacy group Somos UnPueblo Unido and published by UNM’s Center for Social Policy, was released in January, aiming to show the conditions of workers in the booming Permian Basin oilfields and make policy recommendations for improvement.

Reuters: Phillips 66 reports fire at its Billings, Montana, refinery
2/924

“Phillips 66 said on Friday that there was a fire at its 60,000-barrel-per-day Billings, Montana, refinery which resulted in visible smoke,” Reuters reports. “There were no injuries reported and an investigation into the cause was under way, the company told Reuters.”

Associated Press: Cargo train locomotive derails in Colorado, spilling 100s of gallons of diesel
2/7/24

“Hazardous material crews are working to clean up hundreds of gallons of diesel fuel after a train derailment in Loveland, Colorado,” the Associated Press reports. “The locomotive of a cargo train derailed in northern Colorado early Wednesday, spilling hundreds of gallons of diesel, authorities told AP. “The Great Western Railway locomotive did not tip over when it went off the rails at a switch in the tracks just before 1 a.m. but a fuel tank was punctured, the Loveland Fire Rescue Authority said in a Facebook post. The spill was contained and did not get into any waterways, it said. No one was injured in the derailment, which happened near a sugar factory in an area not far from some homes, Battalion Chief Kevin Hessler told AP.”

EXTRACTION

CNN: Foods we eat are covered in plastics that may be causing a rise in premature births, study says
Sandee LaMotte, 2/6/24

“Premature births are on the rise, yet experts aren’t sure why. Now, researchers have found synthetic chemicals called phthalates used in clear food packaging and personal care products could be a culprit, according to a new study,” CNN reports. “Past research has demonstrated that phathalates — known as “everywhere chemicals” because they are so common — are hormone disruptors that can impact how the life-giving placenta functions. This organ is the source of oxygen and nutrients for a developing fetus in the womb. “Phthalates can also contribute to inflammation that can disrupt the placenta even more and set the steps of preterm labor in motion,” lead author Dr. Leonardo Trasande, director of environmental pediatrics at NYU Langone Health, told CNN “Studies show the largest association with preterm labor is due to a phthalate found in food packaging called Di(2-ethylhexyl) phthalate, or DEHP,” Trasande told CNN. “In our new study, we found DEHP and three similar chemicals could be responsible for 5% to 10% of all the preterm births in 2018. This could be one of the reasons why preterm births are on the rise.” The 5% to 10% percentage translated into nearly 57,000 preterm births in the United States during 2018, at a cost to society of nearly $4 billion in that year alone, according to the study, published Tuesday in the journal Lancet Planetary Health… “The American Chemistry Council, an industry trade association for US chemical companies, told CNN the report did not establish causation. “Not all phthalates are the same, and it is not appropriate to group them as a class. The term ‘phthalates’ simply refers to a family of chemicals that happen to be structurally similar, but which are functionally and toxicologically distinct from each other,” a spokesperson for the council’s ’s High Phthalates Panel told CNN.”

Wall Street Journal: Permian Rivals Reach Deal to Create $50 Billion Oil-and-Gas Behemoth
Lauren Thomas, Laura Cooper, 2/12/24

“Rivals Diamondback Energy and Endeavor Energy Resources are merging to create an oil-and-gas behemoth worth more than $50 billion, as higher oil prices and a rush to grab prime acreage fuel consolidation in the energy sector,” the Wall Street Journal reports. “Diamondback announced the deal with the closely held Endeavor on Monday morning. The Wall Street Journal reported on Sunday that a merger was likely. Endeavor, founded by wildcatter Autry Stephens, has long been one of the most prized businesses in the consolidating Permian Basin, the largest U.S. oil patch that straddles West Texas and New Mexico.  In striking a deal for Endeavor, Diamondback fended off competition from other parties including ConocoPhillips, people familiar with the matter told the Journal.”

CBC: NDP MP wants to treat oil like tobacco. Alberta NDP doesn’t smoke the same stuff
Jason Markusoff, 2/10/24

“New Democrat MP Charlie Angus’s message this week that the oil and gas sector needs to have its “big tobacco moment” and no longer be advertised positively will play well among the Canadians who largely view fossil fuels as climate-ravaging toxins that must be shunned as quickly as possible,” CBC reports. “The federal NDP member’s message and new private member’s bill will play less well among the Canadians whose livelihoods rely on the production and sale of the fossil fuels that nearly all other Canadians wind up using on a daily basis to move around and stay warm… “While it’s unclear exactly how the Alberta NDP will want to project themselves to Albertans in their leadership race, it’s probably a safe bet that they won’t want to outlaw promoting the oil and gas industry as a force for economic good, as Angus, a northern Ontario MP, has proposed… “Angus modelled his bill closely on the 1997 Tobacco Act that placed severe limits on cigarette advertising. In promoting his anti-promotion legislation, he took direct aim at oil groups like Pathways Alliance, the coalition of oilsands companies that heavily advertise their bid to reach net-zero by 2050. “They’re shifting their propaganda with false claims of producing cleaner products, claiming they can be part of the climate solution,” Angus told reporters this week. “That’s like Benson & Hedges telling you that they can help end lung cancer.” (That’s a tobacco brand; more Canadians likely knew this before 1997.) Why link fossil fuels to tobacco? Angus argues that both industries have used misleading marketing about the benefits and drawbacks of their products, and must be understood more plainly as dangers. His bill gets into specifics about what oil and gas marketing cannot do: promote economic benefits or state that one fossil fuel is less harmful than another — for instance, noting that burning natural gas is less carbon-intensive than coal, a patently true fact. Pathways Alliance’s promotions do note that the oilsands contribute a “significant share of our country’s emissions” and they’re working to reach net zero, the group said in a statement to CBC. The Competition Bureau is investigating whether the corporate group’s marketing has made false or misleading claims; this accountability occurs with or without this industry-specific legislation.”

iPolitics: Pathways Alliance lobbying the feds on carbon capture tax credit
Kamal Aboulmagd, 2/9/24

“A consortium of Canadian energy giants is lobbying Ottawa on the investment tax credit for carbon capture, utilization and storage,” iPolitics reports. “According to the registration filed last week, Pathways Alliance also wants to discuss the feds’ strategic innovation fund with respect to funding eligibility for their projects. The group was registered earlier this week by Gregory Loerts, a consultant with Bluesky Strategy Group Inc.” 

CLIMATE FINANCE

Law360: Exxon Told Climate Proposal Suit Threatens Investor Rights 
Katryna Perera, 2/8/24

“The Interfaith Center on Corporate Responsibility is urging Exxon to abandon a lawsuit launched against two activist investors who tried to push for a shareholder vote on a climate proposal that has since been withdrawn,” Law360 reports. “The ICCR, a coalition of over 300 institutional investors that advocates for corporate and social responsibility, sent a letter Wednesday to ExxonMobil Corp.’s board of directors, calling the suit ‘costly,’ ‘unnecessary’ and a ‘serious threat to shareholder rights.’ Exxon sued investment firm Arjuna Capital and Netherlands-based climate change advocacy group Follow This last month after the organizations tried to push for a vote on a climate proposal at the company’s annual shareholder meeting in May. The proposal called on the company to speed up the current pace of its emissions reduction targets. Arjuna and Follow This withdrew the proposal last week, but Exxon has refused to back down from the suit. On Monday, the company urged a Texas federal court to rule on the applicability of two exclusions to the now-withdrawn proposal: the ‘ordinary business exclusion,’ which bars proposals relating to a company’s ordinary business operations, and an exclusion barring proposals that substantially duplicate other proposals.” 

Reuters: Barclays to adopt fresh curbs on oil and gas financing
Simon Jessop and Sinead Cruise, 2/9/24

“Barclays, Britain’s biggest lender to the oil and gas industry, told Reuters it will stop direct financing of new oil and gas fields and restrict lending more broadly to energy companies expanding fossil fuel production. The move, part of its Transition Finance Framework (TFF), published on Friday, follows intense pressure from campaigners over its energy policy amid an increase in climate damaging emissions from the burning of fossil fuels. In addition, from 2025, the bank will curb broader financing to non-diversified companies such as pure-play exploration companies if more than 10% of their expenditure goes toward expanding production over the longer term. Barclays group head of sustainability Laura Barlow told Reuterts the new policy was part of its commitment to reduce emissions linked to the bank’s lending and bolster finance to greener alternatives. “It’s about strengthening our focus on the energy transition,” Barlow told Reuters… “Barclays joins banks such as HSBC and BNP Paribas that are tightening oil and gas lending while pledging to increase funding to areas such as renewable energy that can help cap global warming, targeting $1 trillion in such lending by 2030. Non-profit ShareAction, that had pressured Barclays to do more to help tackle climate change, told Reuters that in response to the new curbs it had withdrawn a proposed shareholder resolution calling for the bank to stop funding new expansion projects.”

TODAY IN GREENWASHING

Enbridge: Greening the Garden State through tree planting and education
2/9/24

“Rooted in science, New Jersey Tree Foundation beautifies and educates in underserved urban communities,” according to Enbridge. “…In 2023, Enbridge gave a $10,000 Fueling Futures grant to the NJ Tree Foundation as part of our commitment to supporting sustainability projects that help improve, grow and nurture our environment. The funding helps to support the creation of an education outreach coordinator role and aims to increase the number of TreeKeepers workshops from four to six this year.”

OPINION

Detroit Free Press: Plan to relocate Line 5 oil tunnel ‘unusual and especially risky.’ Here’s why. 
Ashley Rudzinski is the Climate and Environment Program Director for Groundwork Center for Resilient Communities, 2/10/24

“The oil company Enbridge wants to move its Line 5 oil pipeline from the Straits of Mackinac into a tunnel beneath the lake, and the Michigan Public Service Commission recently signed off on this plan, issuing Enbridge a site permit. Encasing Line 5 in concrete and burying it deep beneath the Great Lakes may sound like a reasonable idea, given that Line 5 currently lies exposed on the bottomlands of the Straits of Mackinac, just one anchor strike away from an environmental disaster. Believe it or not, that decision could actually make things worse,” Ashley Rudzinski writes for the Detroit Free Press. “Transporting propane and crude oil involves highly hazardous, volatile substances that always bear an inherent risk of explosion. That’s just one reason why four tribes and numerous Great Lakes advocates are contesting the commission’s decision in the Michigan Court of Appeals. We need Line 5 out of the Great Lakes all together — not in a tunnel, not on the lake bottom. This permit should be revoked, and President Joe Biden should revoke the presidential permit that has allowed Line 5 to operate since 1953… “Another pipeline safety technical expert, Richard Kuprewicz, president of Accufacts Inc., pointed out that the design is also “unusual and especially risky” because it allows the pipeline to move in such a way that it will create abnormal loading on the seams where the segments of pipe are welded together, or adjacent areas that may have been weakened or stressed by the heat of the welding process. Ultimately, he testified, this could “result in full bore pipeline rupture.” “…If you think our regulators won’t let this flawed design proceed, you’re sorely mistaken. No one agency has complete oversight over its approval — not Michigan’s Department of Environment, Great Lakes and Energy, nor the U.S. Army Corps of Engineers. Even the federal administrator charged with pipeline oversight, the Pipeline and Hazardous Material Safety Administration does not have authority to avert disaster… “In short, this Canadian company cannot be trusted… “Biden should revoke the Line 5 presidential permit now. That would shutdown the existing 645-mile-long pipeline, and eliminate any future debate about the oil tunnel once and for all.“

Bloomberg: The $10 Billion Mistake That Will Revive Canadian Oil
Javier Blas is a Bloomberg Opinion columnist covering energy and commodities, 2/11/24

“For the last decade, the Canadian oil industry has experienced firsthand the meaning of “with friends like these, who needs enemies.” To its south is an obvious export route and a huge client: the US. But American courts and politicians blocked new oil pipelines, strangling the industry to the north,” Javier Blas writes for Bloomberg. “The bottleneck has cost Canadian oil companies billions of dollars in forgone revenue, delaying the industry’s growth. With existing pipelines full, any extra barrels have had to move via costly railway, depressing their value. At the worst point in late 2018, Canadian crude sold at a discount of $50 a barrel less than American petroleum.

Washington Examiner: How Texas carbon capture can restore American energy dominance
Mark Whittington, 2/12/24

“The carbon capture technology developed by NET Energy and tested at its prototype natural gas power plant in La Porte, Texas, has caused quite a bit of discussion, Mark Whittington writes for the Washington Examiner. “…The plant will run on natural gas extracted from the nearby Permian Basin. It will thus use fossil fuels to generate much-needed electricity without contributing to climate change and without relying on unreliable renewable energy, such as solar and wind. Some of the carbon dioxide captured by the Odessa plant will be used to help extract more oil and gas from the ground that can be refined and used for power generation and other industries. NET also intends to use its carbon capture plants to extract carbon dioxide from the atmosphere and sequester it into the ground… “The cost of the project also has spiked to $1 billion. However, the company is confident that subsequent plants will be much quicker and cheaper to build and put into operation… “Carbon dioxide has more uses besides extracting more fossil fuels from the ground. It can be used to create a variety of products that several companies are developing… “All of these companies need a lot of carbon dioxide with which to create their products, and NET could use some customers to sell its sequestered carbon dioxide to. The match, as the cliché goes, would seem to be made in heaven. Texas and the rest of the world would be able to use a new way to generate electricity without emitting greenhouse gases, with a fuel readily available. In turn, a whole host of startups would get a substance with which to create a myriad of products. And the United States would gain another means of energy dominance. That is the definition of win-win.”

WyoFile: Mandated carbon capture sequesters resources better used elsewhere
Ronn Smith is a process and environmental engineer with 40 years of experience in the energy industry. He is also a lifelong member of the Powder River Basin Resource Council, 2/12/24

“Like a bad penny, the law mandating carbon capture and storage at Wyoming coal-fired power plants keeps turning up for revision. This year House Bill 200, which originally passed in 2020, reappears as Senate File 42. Why the repeated efforts to fix a statute that has proven unworkable and costly?,” Ronn Smith writes for WyoFile. “…Four years, millions of dollars, and untold hours of deliberation have brought us no closer to the intent of HB 200. Natural gas power plants are far superior to coal plants with carbon capture modifications in meeting its stated goals… “Senate File 42 changes the net-power emission standard to a carbon removal standard, signaling the true motive behind carbon capture and storage. It’s not to generate low-carbon power, but to manufacture high-value CO2 tax credits. Paradoxically, this revised standard incentivizes inefficiency by turning the carbon capture energy penalty into a bonus. The more coal burned just to supply steam and power to the capture plant, the more CO2 available to remove and monetize… “Chairperson Mary Throne is concerned that the law is pushing the PSC beyond traditional rate-making principles of “just and reasonable” costs. Well, the statute empowers the Commission to push back. Credit the PSC for expressing hope that utilities can find financial support for carbon capture analysis from sources other than their ratepayers. But hope cannot substitute for regulatory policy.”

The Hill: Loose 45V guidance would backfire on taxpayers, clean hydrogen, and climate
Dan Esposito is senior policy analyst at Energy Innovation, 2/9/24

“In late December, the U.S. Treasury Department released draft guidance for the Inflation Reduction Act’s 45V Clean Hydrogen Production Tax Credit, set to distribute hundreds of billions in taxpayer dollars for early-stage development,” Dan Esposito writes for The Hill. “…Splitting hydrogen from water takes lots of energy, and if that comes from fossil fueled power, then the climate impact would be far worse than how we make today’s dirty hydrogen. Congress specified it wants to incentivize truly clean hydrogen production, and it tasked Treasury with writing regulations that do just that. But some industry stakeholders are now crying wolf, making baseless claims that these restrictions would suffocate clean hydrogen before it can grow. Unfortunately, these voices are often the loudest in the room, pushing a false narrative that industry stands united against environmentalists. The truth is completely opposite: Strong guardrails are the only way to grow a truly clean and self-sufficient industry. Loose guidance would use taxpayer dollars to fund a planet-warming boondoggle. If Treasury relents, it risks propping up a frail industry that belches climate pollution—like building a house that collapses once the scaffolding is removed… “When Congress passes a steep subsidy, everyone wants their share. In this case, many companies quickly announced large investments in dirty hydrogen projects masquerading as clean, threatening to cancel if regulators dared set reasonable rules. 45V has a clear mandate to support truly clean hydrogen, but groups ill-equipped to meet this standard—or looking for juicier profit margins—extrapolated their challenges to the whole industry to drum up a crisis, hoping to scare regulators into submission. By securing weak rules, they’d enrich themselves for a decade or two at minimum, then hold Congress hostage over an extension… “Guardrails would force investment in truly clean hydrogen production from the start, with developers using subsidies to pay for pricier, innovative equipment… “Taxpayers deserve federal funds to be well spent. By standing firm, Treasury can ensure funds promote innovation and cultivate a robust industry vital to combatting the climate crisis—not exacerbate pollution and fatten corporate wallets.”

The Hill: Biden needs the youth vote — and he can’t get it without real action on climate change 
William Becker is executive director of the Presidential Climate Action Project (PCAP), 2/12/24

“President Biden knows he’s in danger of losing much of the youth vote this year,” William Becker writes for The Hill. “One indication is the timing of his decision to pause approval of liquefied natural gas (LNG) exports, ostensibly so the Department of Energy can review the fuel’s climate impacts. He made this decision just before climate activists were to conduct a “large-scale civil disobedience action” to protest the build-out of LNG export facilities. Protestors responded by calling off their sit-in. The LNG issue is just one of several where young voters feel Biden has not kept his campaign promises about fossil fuels. The president’s most egregious breech with young people is getting too little attention — he is allowing the Department of Justice to continue its eight-year campaign to block Juliana v. United States, a landmark lawsuit by 21 young Americans who argue federal support for fossil fuels violates their constitutional right to a future free of catastrophic climate change… “What can Biden do to win back the votes of young Americans worried about global warming? First, he can direct the Justice Department to let Juliana go to trial. Second, he can make the end of fossil energy subsidies a much more prominent part of his reelection platform. He can propose that the federal government use the recaptured tax revenues to help fossil-energy workers and communities transition to the clean-energy economy. Third, he can offer a detailed off-ramp for fossil fuels to exit the U.S. economy… “Fourth, he can issue an executive order that fulfills another of the Juliana plaintiffs’ goals: declaring the atmosphere an asset that government officials are legally bound to protect for current and future generations… “Finally, Biden can call young climate-action leaders to the White House to discuss additional presidential initiatives on climate change, as well as other issues that concern them.”

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