EXTRACTED: Daily News Clips 3/22/24

PIPELINE NEWS

• Associated Press: Panel urged to move lawsuit to state court that seeks shutdown of part of aging pipeline in Michigan

• Law360: 6th Circ. Skeptical Of Enbridge’s Late Pipeline Suit Transfer

• Bloomberg: Enbridge Pressed on Delay in Moving Michigan AG’s Pipeline Case

• Radio Results Network: Nessel, Environmentalists Rally In Cincinnati For Closure Of Line Five Pipeline

• Mlive.com: Q&A: Michigan AG on why Enbridge case is bigger than Line 5

• Public News Service: Dakotas among states still weighing controversial pipeline plan

• Albion News Online: Summit Carbon open house at fairgrounds

• DeSmog: Activists Launch Their Own Investigation of  Mud Spill Near Pennsylvania LNG Pipeline 

• Reuters: US pipeline firms poised to follow biggest customers into M&A

• S&P Global: Enbridge expansion to replace natural gas diverted from PNW to Woodfibre LNG

• S&P Global: Canadian crude price discounts tighten as pipeline capacity rises, but for how long?

• Sarnia News Today: Brooke-Alvinston councillor gives Enbridge a failing grade

• Washington Times: Opposition grows against publicly funded universities teaching students ‘How to Blow up a Pipeline’

WASHINGTON UPDATES

• E&E News: House approves Republican fracking, drilling bills

• E&E News: Dems join Republicans to pass anti-carbon tax measure

• E&E News: FERC affirms grid rule as it opens inquiry into gas pipelines

• E&E News: 3 takeaways from the FERC confirmation hearing

• E&E News: Green group targets FERC nominee in ad campaign

• NOLA.com: House GOP Decries Joe Biden’s ‘Radical’ Energy Policy Even As U.S. Oil Production Sets Record 

• Grand Junction Sentinel: Boebert Local BLM Leasing Bill Debated In House Hearing 

• Houston Chronicle: BP America executive says hydrogen projects unlikely under draft tax credit rules

• NPR: Taxpayer-funded petrochemical plants are polluting communities, report finds

• Huffington Post: Gas Industry Blocks Building Codes Meant To Make Going Electric Cheaper

STATE UPDATES

• Mirage News: Indiana Researchers Assess Sites for Carbon Capture, Storage

• Santa Fe New Mexican: State Land Office Hits A Nerve Over Decision To Stop Drilling On Valuable Tracts 

EXTRACTION

• Guardian: Fossil fuel firms could be tried in US for homicide over climate-related deaths, experts say

• Yale Environment 360: Nations Are Undercounting Emissions, Putting UN Goals at Risk

• Canadian Press: Pathways Alliance to file for regulator approval on carbon capture project

• Calgary Herald: ‘A big deal’ — oilsands group set to make major regulatory application for CCUS megaproject

• Carbon Herald: CapturePoint Closes 45Q Direct Transfer Tax Credit Transaction 

• Press release: Special Envoy John Podesta Must Oppose Carbon Markets and Offsets in the Paris Agreement to Solve the Climate Crisis

OPINION

• Utility Dive: Unlocking the power of green hydrogen requires a workable tax credit

• The Hill: Natural gas is essential to any realistic path toward greenhouse gas reduction
  

PIPELINE NEWS

Associated Press: Panel urged to move lawsuit to state court that seeks shutdown of part of aging pipeline in Michigan
TODD RICHMOND, 3/21/24

“Michigan attorneys pressed a federal appellate panel on Thursday to move their lawsuit seeking to shut down a portion of an aging oil pipeline running beneath the Straits of Mackinac from federal to state court, arguing that state environmental protection laws are in play,” the Associated Press reports. “Assistant Attorney General Daniel Bock told a three-judge panel of the 6th U.S. Circuit Court of Appeals in Cincinnati that the challenge to Enbridge Inc.’s Line 5 pipeline deals with the public trust doctrine, a legal concept in which natural resources belong to the public. He said that concept is rooted in state law. He said the lawsuit also invokes public nuisance concepts governed by state law as well as the Michigan Environmental Protection Act. He added the state owns the bottom of the straits. “There’s no federal jurisdiction over this case,” Bock said. Bock went on to assert that Enbridge Inc., the Canadian company that owns the pipeline, missed its deadline to shift the case from state to federal court… “Enbridge attorney Alice Loughran countered that the case should remain in federal court because it affects international trade between the U.S. and Canada… “The judges — Richard Griffin, Amul Thapor and John Nalbandian — questioned Loughran extensively about why the company missed the deadline and sounded skeptical of her answers. It’s unclear when they might issue a ruling… “The company has proposed rerouting the pipeline to end its dispute with the tribe. It has appealed the shutdown order to the 7th U.S. Circuit Court of Appeals. That case is still pending. Pipeline opponents rallied in downtown Cincinnati ahead of the arguments Thursday, holding signs that read “Shut Down Line 5 Pipeline” and “Evict Enbridge.” Nessel appeared at the rally and accused Enbridge of “forum shopping” in hopes of finding a favorable judge. “Ultimately, this is a Michigan case brought under Michigan law by Michigan’s chief law enforcement officer on behalf of the people of Michigan on behalf of our Great Lakes and it belongs in a Michigan court,” she said to cheers.”

Law360: 6th Circ. Skeptical Of Enbridge’s Late Pipeline Suit Transfer
Caroline Muyskens, 3/21/24

“A Sixth Circuit panel questioned how Enbridge Energy LP could move a lawsuit seeking to shut down one of its pipelines to federal court more than two years after it was filed, pressing the company Thursday to justify missing the 30-day cutoff for removals,” Law360 reports. 

Bloomberg: Enbridge Pressed on Delay in Moving Michigan AG’s Pipeline Case
Eric Heisig, 3/21/24

“An attorney for Enbridge Inc. faced sharp questioning from appeals court judges Thursday who pushed her on why the energy giant waited more than two years to move to federal court a state suit seeking to shut down one of its pipelines in Michigan,” Bloomberg reports. “The Sixth Circuit panel never seemed satisfied with Enbridge attorney Alice Loughran’s answers during oral arguments. Loughran said the energy giant was correct to wait to move the lawsuit filed by Attorney General Dana Nessel (D) to the Western District of Michigan until after a federal judge rejected Michigan’s attempt to send a similar case filed…”

Radio Results Network: Nessel, Environmentalists Rally In Cincinnati For Closure Of Line Five Pipeline
Jack Hall, 3/22/24

“Opponents of the Line Five Pipeline rallied alongside Michigan Attorney General Dana Nessel in downtown Cincinnati on Thursday, before her office delivered oral arguments at the Sixth Circuit U.S. Court of Appeals in her lawsuit to shut down and decommission the pipeline through the Straits of Mackinac in the Great Lakes,” Radio Results Network reports. “The deteriorating 71-year-old pipeline, owned by Canada oil giant Enbridge, operates through the Bad River Band of Lake Superior Chippewa’s reservation in northern Wisconsin and continues under the Straits of Mackinac in Michigan where the pipeline poses a devastating risk of rupture… “One of the very first actions I took in office back in 2019 was to sue Enbridge Energy, challenging the legality of the Line 5 Pipelines in the straits of Mackinac,” said Michigan Attorney General Dana Nessel at the rally. “Enbridge had managed to delay justice for three years by playing procedural games. We do not have time to continue along the way we’ve been going.As Michigan’s Attorney General, I will always fight to protect the Great Lakes from the threat of pollution caused by those who put their own profits above our priceless natural resources.” “…Enbridge has been operating illegally in Michigan and on tribal lands for the last 3 years. President Joe Biden can protect the Great Lakes by enforcing Governor Whitmer’s eviction notice. The fact that they continue to operate illegally proves they are not to be trusted. Protect Michigan. Shut down Enbridge’s Line 5,” said Andrea Pierce, Little Traverse Bay Bands of Odawa Indians citizen and Michigan Environmental Justice Coalition Policy Manager. While Enbridge continues to use the US courts as a delay tactic and drags out lawsuits, Tribal Nations and residents of Michigan and Wisconsin are calling on President Joe Biden to step in and revoke a permit to shutdown the pipeline.”

Mlive.com: Q&A: Michigan AG on why Enbridge case is bigger than Line 5
Garret Ellison, 3/21/24

“Did a judge properly decide that a lawsuit attempting to shut down an oil pipeline under the Straits of Mackinac belongs in federal court, or was the case improperly snatched away from state court after two years of litigation? That’s what federal judges will consider following oral arguments at the U.S. Sixth Circuit Court of Appeals, which agreed to hear Michigan Attorney General Dana Nessel’s appeal to a procedural decision in her bid to shut down Enbridge Line 5,” Mlive.com reports. “…Nessel: “There are times when you simply disagree with the court’s decision. We think this is very black and white. We don’t think there is any nuance to this. And again, with great respect and deference to Judge Neff, we simply think that that this ruling was incorrect. And again, the fact that the Sixth Circuit took it as an interlocutory appeal is unusual. So, we think that the Sixth Circuit also believes that there is merit to our argument. And again, it’s a very straight-forward argument. It really isn’t about the merits of the case. It’s about whether this court rule is going to be upheld or not. And our belief is that it would be very, very dangerous — not just to this case, really, but to all cases that are filed in state court. It’s not right… “Ellison: What type in what type of timeline could be expected in terms of an appellate decision here? Nessel: “Well, one never knows the answer to that question. I would say that on average, decisions are usually made by the Sixth Circuit on an interlocutory appeal in about three months. That doesn’t mean that this case is going to be decided in three months. It’s just that that’s their usual timeline.” Ellison: Depending on the outcome, where does the case go? Nessel: “Well, if we are successful, and the court agrees with us, the case will be remanded back to state court and we’ll pick up where we left off in front of Judge Jamo on our cross motions for summary. If we are unsuccessful, there’ll be one of two things. Either, we’ll decide to appeal this to the United States Supreme Court. Or if we don’t, we’ll go back to the District Court and we’ll have to start over our litigation on principally our same arguments and same claims before the federal district court.”

Public News Service: Dakotas among states still weighing controversial pipeline plan
Mike Moen, 3/22/24

“New public hearings and legal decisions are expected in the coming weeks and months about a controversial pipeline project in the upper Midwest. The company behind the effort appears ready for the long haul, but so are its opponents,” Public News Service reports. “…Brian Jorde, an attorney representing property owners challenging the project, told PNS despite some regulatory setbacks, it is clear the company is still forging ahead. “Every state is still in play,” Jorde told PNS. “There’s nothing different from a year ago than right now.” This week, Jorde made arguments before the South Dakota Supreme Court in a complex element of the case tied to landowners’ rights. And North Dakota regulators are formalizing plans for public hearings for Summit’s new permit application, after saying “no” last year. Summit said the initiative has environmental and economic benefits. However, opponents worry about safety issues and are skeptical of the carbon sequestration claims. Like North Dakota, South Dakota regulators last year rejected Summit’s initial permit application and the actions have pushed back the project’s timeline. Jorde hopes the public does not lose interest, especially residents concerned about pipelines running through their property. “If you don’t speak up, the assumption is you don’t mind and you won’t have a voice,” Jorde told PNS.”

Albion News Online: Summit Carbon open house at fairgrounds
3/20/24

“Summit Carbon Solutions engineer Kylie Lange refers to one of the information placards available at the company’s open house last Tuesday morning, March 12, at the Casey building on the county fairgrounds,” the Albion News Online reports. “The company has recently changed its pipeline plan to add eight Valero Renewables ethanol plants, including the plant at Albion, as shippers on its planned CO2 pipeline. A second meeting is…”

DeSmog: Activists Launch Their Own Investigation of  Mud Spill Near Pennsylvania LNG Pipeline  
Diane Bernard, 3/21/24

“On February 15, Pennsylvania’s environmental regulator received an anonymous complaint that a mysterious white material was covering the bottom of a creek in Chester County — a tributary of nearby Marsh Creek Lake located about a thousand feet from the underground Mariner East pipeline,” DeSmog reports. “A day later, an inspector from the state’s Department of Environmental Conservation confirmed that the clay-like material was flowing from a nearby sinkhole into the stream and nearby wetlands. On February 22, the DEP turned samples of the material over to Sunoco Pipeline, L.P. (SPLP) for testing. SPLP is a subsidiary of Energy Transfer Partners, which built, owns, and operates Mariner East, a $5 billion, 350-mile pipeline that carries liquid natural gas across Pennsylvania. Seven days later, a DEP representative told a meeting of Chester County environmental officials that SPLP’s testing had identified the white ooze as a “naturally occurring” material, but didn’t state what exactly the substance was. Now local activists want to do an independent investigation, because they fear the spill may contain bentonite, a material commonly used in drilling fluid that has surfaced in the area before, and is potentially harmful to the environment. Asking SPLP to do the testing was “like handing the evidence over to the criminal,” Chris “P.K.” Digiulio, a local resident and activist who lives on Marsh Creek Lake and has dedicated years to fighting the Mariner East pipeline, told DeSmog. Digiulio took samples from the site a few days after the DEP inspected the area, and now Physicians for Social Responsibility (PSR) Pennsylvania, the non-profit group where Digiulio works as an environmental chemist, is raising funds to independently test the clay-like material. The group needs about $8,000 for the test. The DEP was so quick to give samples to Sunoco for testing, instead of sending them to an independent lab, that it made residents wary, Digiulio told DeSmog. “We have a regulatory agency that’s supposed to protect us, but it feels like I’m doing their job.” Digiulio and other locals don’t trust that Sunoco is being transparent about this incident, which is just the most recent in the pipeline’s troubled history. Energy Transfer Partners faced a series of steep environmental penalties during construction of Mariner East, which was plagued with problems throughout construction, including major drilling mud spills.” 

Reuters: US pipeline firms poised to follow biggest customers into M&A
David French and Arathy Somasekhar, 3/21/24

“U.S. energy pipeline and storage operators have spent two years watching the consolidation of oil and gas producers, and now they are gearing up for the merger wave to hit their sector, executives, investors, and analysts told Reuters. The midstream sector has a lot of specialized midsize firms and only a handful of very large operators able to provide the services across a wide geographic footprint. Mergers will result in more suppliers able to provide processing, transport, storage and export services, according to executives and dealmakers. There were $12.5 billion of midstream deals announced through mid-March, compared with $21.9 billion for all 2023, according to researcher Enverus. If the current pace holds, this year will be the biggest for midstream mergers and acquisitions since 2019… “Due to the hurdles of getting new energy infrastructure approved and built, it can make more sense to buy a company than put steel in the ground yourself, Pierce Norton, CEO of Oneok (OKE.N), told Reuters.

S&P Global: Enbridge expansion to replace natural gas diverted from PNW to Woodfibre LNG
Killian Staines, 3/21/24

“Enbridge expects to file with the Canadian energy regulator “in the next couple of months” for the 300 MMcf/d Sunrise Expansion on the T-South line, to replace natural gas that will be diverted away from the US Pacific Northwest to the Woodfibre LNG terminal,” S&P Global reports. “Pacific Energy will “redirect” the 300 MMcf/d of firm capacity it holds on T-South Line on the Westcoast pipeline system to supply Woodfibre, Cynthia Hansen, Enbridge’s president of gas transmission and midstream, told S&P March 20 on the sidelines of CERAWeek by S&P Global. “We believe and our customers believe that will leave that market — the industrial load in the Lower Mainland area and then that gas that flows into the Pacific Northwest — short.” The Sunrise expansion, which will be done by adding pipeline loops and compression, will “backfill” this capacity, but there will be a gap between the two projects. Woodfibre will be in service “in the later half of 2027, and then we’re working to get the T-South expansion into 2028,” Hansen told S&P… “Earlier in CERAWeek, Senator Joe Manchin said a bipartisan deal on legislation for permitting reform was “back on track and I want to get it done before we go out on the August recess.” “I am very hopeful that we will see some permitting reform,” Hansen told S&P. “One concern I might have is the timing of that reform given that we’re going into an election cycle.” “…Cheniere COO Corey Grindal said in a March 20 panel that rising demand would cure pipeline developers of the “skittishness” created by the difficult planning system. “You’ll continue to see demand develop, whether it be electricity, whether it be LNG, whether it be industry coming back to the United States. You’re going to start seeing the market send signals. And at some point the signals will get there where people are willing to take the chance, to take the risk, to develop additional infrastructure.”

S&P Global: Canadian crude price discounts tighten as pipeline capacity rises, but for how long?
Jeff Mower, Ashok Dutta, 3/21/24

“Canadian crude price discounts have narrowed since November, in part because the long-awaited Trans Mountain crude pipeline expansion is due to come on stream in the second quarter of 2024. Producers may celebrate the extra pipeline capacity as a cure for deep price discounts, but for how long?,” S&P Global reports. “Considering Western Canada’s production plans, aided, producers hope, by a large-scale carbon capture project, price discounts could easily widen as soon as the marginal barrel has difficult time finding an outlet. Spot Western Canadian Select crude has averaged at a $13.92/b discount to WTI so far in March, according to Platts assessments. That discount has narrowed from an average $25.44/b in November, when Canadian export supply of roughly 4.8 million b/d exceeded pipeline capacity by 180,000 b/d, S&P Global Commodity Insights data shows. In the short term, discounts will likely remain stable as S&P Global expects Canadian export supply to rise to 5 million b/d by the end of 2025, remaining below pipeline capacity of 5.2 million b/d, as Trans Mountain will add roughly 500,000 b/d of export capacity… “An additional 800,000 b/d of production could be added by 2028, exceeding takeaway capacity, according to analysts. S&P Global analysts do not expect a bottleneck until 2030, when Canadian crude supply reaches 5.8 million b/d… “But adding new pipelines will likely take time, unless the permitting process is streamlined. The Trans Mountain expansion took 12 years to complete, and required the government to take over the project from Kinder Morgan. The government “was the only party that could have gotten it done,” Maki told S&P.

Sarnia News Today: Brooke-Alvinston councillor gives Enbridge a failing grade
MELANIE IRWIN, 3/21/24

“Representatives of some Lambton municipalities are growing frustrated over a lack of natural gas service to their communities,” Sarnia News Today reports. “Brooke-Alvinston councillor Don McCabe expressed his frustration with Enbridge publicly at the State of Lambton Business Breakfast earlier this week. “I noticed you’re really, really, really nice to us when you want to come across our land with a big pipeline, but you’re not worth a damn on the phone when we need [natural gas lines] on rural roads for our residents, and more importantly, [to service] our agricultural businesses,” said McCabe. The former Inwood fire chief and Ontario Federation of Agriculture (OFA) president told the energy company its report card could improve. “I’m getting very anxious,” McCabe said. “I’m going to give you a D now, but it’s certainly headed for an F minus.” Warwick Township Mayor Todd Case also touched on the issue. “In Warwick Village, there is no natural gas,” said Case.”

Washington Times: Opposition grows against publicly funded universities teaching students ‘How to Blow up a Pipeline’
Susan Ferrechio, 3/21/24

“The oil and gas industry is moving to quash state universities’ “climate justice” course materials that denounce fossil fuels and promote violence to force the U.S. to adopt green energy policies,” the Washington Times reports. “Ohio State University paused a proposed course change for a geography class that would have taught fall semester students “the political economy of climate change and the political philosophy of climate justice.” The course drew the attention of International Natural Gas Association of America President Amy Andryszak. She wrote to Ohio Gov. Mike DeWine and flagged a book that would be assigned: Andreas Malm’s “How to Blow Up a Pipeline.” The book, according to its publisher, “makes an impassioned call for the climate movement to escalate its tactics in the face of ecological collapse.” Mr. Malm argues for forcing an end to fossil fuel extraction with actions and destruction of equipment and tools… “Ms. Andryszak questioned Ohio taxpayer funding of anti-fossil-fuel curricula in a state that is one of the nation’s top 10 natural gas producers. “The teaching of this book anywhere, but especially in a publicly funded state university, is very concerning, should be investigated by the State and, in our opinion, prohibited,” Ms. Andryszak wrote to the governor. “The activities advocated in the book can result in death, danger, and serious injury to those perpetrating the acts and innocent bystanders.” “…Mr. DeWine’s spokesman Dan Tierney told the Times the governor is reviewing the letter “to determine what claims … are factual.” “…Pipelines are deemed critical infrastructure in the U.S., Ms. Andryszak wrote to the governor. “Intentional damage to critical infrastructure is punishable by state and federal statute, including potential terrorism charges,” she wrote. “For a public university such as The Ohio State University to allow for the promulgation of this book is in direct conflict with the interest of the taxpayers who support the institution.”

WASHINGTON UPDATES

E&E News: House approves Republican fracking, drilling bills
Kelsey Brugger, 3/21/24

“The House on Wednesday passed two bills promoting oil and gas drilling: one that would support fracking and another that would lower costs to drill on public lands,” E&E News reports. “The bills are a part of the GOP’s “energy week.” While Republicans said the effort was meant to highlight “the value of American energy,” most Democrats dismissed the proceedings as unserious. The House passed H.R. 1121, the “Protecting American Energy Production Act,” from senior Energy and Commerce Republican Jeff Duncan of South Carolina. The bill would prohibit an administration from banning fracking and give more power to states. Fifteen Democrats, mostly from major energy producing states, supported the bill. The House also passed H.R. 6009, “Restoring American Energy Dominance Act,” from Rep. Lauren Boebert (R-Colo.), which would repeal a Bureau of Land Management rule that increases the money oil companies must pay before they can drill on public lands. Three Democrats supported it.”

E&E News: Dems join Republicans to pass anti-carbon tax measure
Emma Dumain, 3/22/24

“The House voted Thursday on a nonbinding resolution to disapprove of a carbon tax — a messaging measure that came at something of a critical moment for bipartisan lawmakers looking to tie trade policy to climate action,” E&E News reports. “The 222-186 vote for H.Con.Res. 86 showed the extent to which the concept of putting a price on the carbon intensity of U.S. goods and services remains politically toxic, both for Republicans who care about lowering greenhouse gas emissions and Democrats in swing districts and tough election fights. All but one Republican — Pennsylvania Rep. Brian Fitzpatrick, a reliable moderate GOP vote on climate issues — supported the resolution. Ten Democrats, mostly those vulnerable to losing seats this November, broke with their party and voted “no.” The resolution would express “the sense of Congress that a carbon tax would be detrimental to the United States economy.” It was considered as part of the Republican majority’s “energy week,” in which members devoted time in committees and on the House floor debating legislation geared toward fighting back against the Biden environmental agenda.”

E&E News: FERC affirms grid rule as it opens inquiry into gas pipelines
Zach Bright, 3/22/24

“The Federal Energy Regulatory Commission upheld the central elements of a grid rule Thursday designed to quicken the addition of wind and solar power to the grid while also launching a probe into pipeline practices,” E&E News reports. 

E&E News: 3 takeaways from the FERC confirmation hearing
Nico Portuondo, 3/22/24

“President Joe Biden’s three nominees to the Federal Energy Regulatory Commission got their taste of Capitol Hill scrutiny Thursday, and their responses did not exactly quell environmental group concerns about the agency “rubber-stamping” natural gas projects,” E&E News reports. “Democratic nominees David Rosner and Judy Chang and Republican pick Lindsay See told the Senate Energy and Natural Resources Committee they don’t see FERC as an agency equipped to push Biden’s climate goals. “Under the Federal Power Act, [FERC’s] purpose actually does not have jurisdiction over what resources to choose,” said Chang. “So it’s technology neutral, it’s an economic agency, and so it doesn’t make decisions about which facilities and which power plants to actually build.” The nominees’ tiptoeing around the agency’s climate responsibilities reflects the realities of the confirmation process. They’ll have to win the support of moderate Democrats — particularly Chair Joe Manchin (D-W.Va.).

E&E News: Green group targets FERC nominee in ad campaign
Timothy Cama, 3/20/24

“Friends of the Earth said Wednesday it launched a five-figure digital campaign against David Rosner, a day before he appears before the Senate Energy and Natural Resources Committee for a confirmation hearing,” E&E News reports. “Rosner is a FERC analyst currently working on detail for the committee under Chair Joe Manchin (D-W.Va.). Friends of the Earth is seeking to highlight Rosner’s positions, especially promoting liquefied natural gas exports when he worked for the Bipartisan Policy Center. “David Rosner was a paid cheerleader for the LNG boom before it was fashionable,” Lukas Ross, deputy director of climate and energy, told E&E. “We’re calling on Democrats not named Manchin to reject this nomination.” The ads are running on POLITICO’s mobile app and say, “TELL THE SENATE: SAVE FERC. REJECT ROSNER.” Friends of the Earth and other environmentalists are pushing to dramatically reduce or stop LNG exports, which they argue exacerbate climate change.”

NOLA.com: House GOP Decries Joe Biden’s ‘Radical’ Energy Policy Even As U.S. Oil Production Sets Record 
Mark Ballard, 3/21/24

“For the average American, probably the most important thing the U.S. House will do this week is pass a series of spending instruments to keep the federal government from closing. But for the GOP majority that controls the chamber, passing a raft of energy-related bills is almost equally paramount,” NOLA.com reports. “Though they’re very unlikely to become law, the bills aim to bolster a key GOP campaign theme going into the congressional and presidential November elections. House Majority Leader Steve Scalise, R-Jefferson, argues that President Joe Biden’s policies to move America away from fossil fuels towards cleaner energy stifles exploration and production of oil and gas, which costs Louisiana jobs and saddles America with inflation. “House Republicans continue to bring a number of bills to the House floor that are focused on lowering energy costs for America, standing up for American energy, and standing up against the radical extreme policies of Joe Biden that threaten to shut off American energy,” Scalise said Wednesday.”

Grand Junction Sentinel: Boebert Local BLM Leasing Bill Debated In House Hearing 
Dennis Webb, 3/21/24

“A bill by Republican U.S. Rep. Lauren Boebert seeking to keep the Bureau of Land Management from finalizing plans that as proposed would sharply curtail local acreage available for oil and gas leasing was debated in a hearing by a House of Representatives subcommittee Wednesday,” the Grand Junction Sentinel reports. “The agency in a draft revision of its resource management plans for its Grand Junction and Colorado River Valley field offices would close nearly a million acres within the Grand Junction office’s jurisdiction to future oil and gas leasing, and 568,300 acres managed by the Colorado River Valley office. “This proposed land grab is nothing short of partisan politics meant to further restrict access to the oil and natural gas development that could reinvigorate the economy of Colorado and help energy security for all Americans,” Boebert said at a Natural Resources Subcommittee on Federal Lands hearing on several bills. One of those bills, similar to Boebert’s, would prohibit finalization of a draft resource management plan for the Rock Springs Field Office in Wyoming. As proposed, that plan would make more than 2 million acres off limits to new oil and gas leasing.”

Houston Chronicle: BP America executive says hydrogen projects unlikely under draft tax credit rules
Claire Hao, 3/21/24

“Another oil industry leader raised concerns at CERAWeek by S&P Global Wednesday morning that guidance provided last year by the Department of Treasury on how companies can qualify for clean hydrogen tax credits might stymie projects before they get started,” the Houston Chronicle reports. “A lot of developers, us included, have actually looked at our portfolio and said, ‘Man, I don’t know if we can actually make this work anymore,’” said Tomeka McLeod, vice president of hydrogen and carbon capture for BP America during a panel on incentivizing decarbonization. BP America is the latest oil and gas company to come out against the draft rules for the 45V tax credit, meant to spur large-scale clean hydrogen projects. An Exxon Mobil executive said in February that the proposed guidance would make its planned hydrogen project in Baytown unlikely to proceed.  At issue for BP America is the requirement that hydrogen producers start hourly matching by 2028, meaning the hydrogen must be produced in the same hour that the electricity used for its production is generated with renewable resources, McLeod said. Hourly matching is meant to prevent supposedly clean hydrogen from being produced with electricity generated by fossil fuels… “What came out in December was, I’m sure to anybody who’s working in the green hydrogen space, it’s the worst Christmas gift any of us have ever gotten. It was definitely the most restrictive; it was more restrictive than the EU, which I think was a big surprise,” she told the Chronicle.

NPR: Taxpayer-funded petrochemical plants are polluting communities, report finds
Reid Frazier, 3/20/24

“Rebecca Quigley’s favorite spot in her house is a wraparound deck with a sweeping view of her hometown, Vanport, Pa., along the banks of the Ohio River. But in recent years, the view has changed. Just across the river, the oil and gas company Shell built a huge industrial plant to make plastics,” NPR reports. “Called an ‘ethane cracker,’ the plant turns ethane, a component of natural gas, into tiny plastic pellets used to make products from plastic packaging to medical devices. Quigley calls it “Gotham City” because of the way it lights up the night sky. Soon after it opened, Quigley began to notice frequent flaring, when the plant intentionally burns off waste gasses, as well as black smoke coming from the plant, and strange odors. “There was a sweet odor of antifreeze or a syrup smell,” she told NPR. She began to worry about air pollution and long-term health effects. Regulators also took note. The state Department of Environmental Protection found the plant violated clean air laws 19 times since beginning operations two years ago – and fined it over $10 million. The plant was found to have released harmful levels of volatile organic compounds, which contribute to asthma and other respiratory diseases, as well as benzene, a known carcinogen. Shell’s plant is not alone. It’s one of 50 plastics plants nationwide built or expanded over the last decade to take advantage of plentiful natural gas from the U.S. fracking boom. Many of those plants routinely break environmental laws, according to a new report from the nonprofit watchdog group Environmental Integrity Project – and taxpayers are often footing part of the bill. Two-thirds of the plants received tax breaks or subsidies from state or local governments to encourage companies to locate within their borders, according to the report. “They’re major emitters of greenhouse gasses and climate-warming pollutants, as well as major emitters of pollutants that are dangerous to human health,” Alexandra Shaykevich, the report’s lead author, told NPR.”

Huffington Post: Gas Industry Blocks Building Codes Meant To Make Going Electric Cheaper
Alexander C. Kaufman, 3/20/24

“The natural gas industry pulled off an 11th-hour victory in its campaign to strip climate-friendly rules out of the latest update to the homebuilding guidelines used in most of the United States,” the Huffington Post reports. “…As the International Code Council — the private nonprofit that convenes local governments, lobbyists and industry professionals together every three years to update the energy codes — finalized this year’s codebook last fall, trade associations representing gas utilities and furnace manufacturers filed formal appeals to strip out the pro-electrification measures. The ICC’s appeals board rejected all the challenges earlier this month and urged the organization’s board of directors to do the same. On Wednesday night, the ICC’s board of directors took the unusual step of going against its own experts to side with the fossil fuel companies, scrapping key codes meant to make electric cars, solar panels, induction stoves and heat pumps more affordable. Instead, almost every code the trade groups challenged will now be relegated to the optional appendix section of the codebook, essentially eliminating the chances of widespread adoption across the country. Rather than hasten the pace of energy-savings as the country races to cut emissions and shrink rising utility bills, the ruling, which is final, means the 2024 codes will represent far more modest gains in efficiency than the previous 2021 codes, which were widely hailed at the time as a victory in the fight against climate-changing emissions. It marks a setback for U.S. efforts to speed up the deployment of electric heating and vehicles and increases the number of buildings that will ultimately require costly retrofits to meet modern energy standards. “Really bad and surprising news,” Mike Waite, the director of codes at watchdog American Council for an Energy-Efficient Economy and a volunteer who helped author this year’s commercial building codes, wrote in an email to HuffPost. “The ICC Board went against their consensus committees, appeals board and staff.”

STATE UPDATES

Mirage News: Indiana Researchers Assess Sites for Carbon Capture, Storage
3/21/24

“Indiana – land of farms, fields and forests – is also home to factories, fertilizer plants and other industries that emit carbon dioxide,” Mirage News reports. “Indiana, however, could also become a leader in decarbonizing the atmosphere through carbon capture and storage – the capture of carbon dioxide from industry emissions and the storage, or sequestration, of carbon dioxide in deep underground geologic formations. Supported by the U.S. Department of Energy, researchers at the Indiana Geological and Water Survey at Indiana University are working with colleagues from other states to evaluate locations in Indiana and the Midwest where carbon storage in geologic formations could be successful… “In the Indiana-Illinois region, the porosity and permeability of some of the deep reservoirs are ideal for injecting CO2,” Douds told Mirage. “They are below the 2,600-foot depth threshold so that the CO2 remains in a supercritical state as it is injected, which allows for more CO2 to be stored in a given volume of rock compared to gaseous CO2. They are widespread throughout a big region, and they haven’t produced oil and gas, so they’re not heavily drilled in that manner.” “…So far, the Illinois Basin-Decatur Project is the only EPA-permitted carbon capture and storage facility in the United States. But 42 projects in 11 states were in the federal permitting process as of mid-February of this year, and three states have been granted the ability to issue permits on their own. In January, the Environmental Protection Agency approved the first two permits for carbon capture and storage wells in Indiana, in Vermillion and Vigo counties.”

Santa Fe New Mexican: State Land Office Hits A Nerve Over Decision To Stop Drilling On Valuable Tracts 
Daniel J. Chacón, 3/20/24

“State Land Commissioner Stephanie Garcia Richard is receiving both criticism and praise over her decision not to lease some of the state’s most valuable tracts of land for oil and natural gas development in the Permian Basin until the Legislature increases royalty rates,” the Santa Fe New Mexican reports. “Her decision earlier this month to withhold lease sales came just weeks after a bill to raise the top royalty rate from 20% to 25% died in the Legislature during the 30-day session, the latest in a series of failed attempts in recent years. Rep. Jim Townsend, R-Artesia, called the move ‘pettiness at its height.’ “She should bring [the proposal] back to the Legislature, maybe in a revised manner so it would pass, but to demand that you either do it or I’m going to quit leasing land is completely irresponsible to the people and to the constitution of New Mexico,” he said Wednesday.”

EXTRACTION

Guardian: Fossil fuel firms could be tried in US for homicide over climate-related deaths, experts say
Dharna Noor, 3/21/24

“Each year, extreme temperatures take 5 million lives, while 400,000 people die from climate-related hunger and disease and scores perish in floods and wildfires. Now, researchers are promoting a new legal theory that says fossil fuel companies – which, data show, are the leading contributors to planet-heating pollution – could be tried for homicide for climate-related deaths,” the Guardian reports. “The radical idea, first proposed last year by consumer advocacy non-profit Public Citizen, may sound far-fetched, but it’s gaining interest from experts and public officials. “We’ve been really excited to see the curiosity, interest and support these ideas have garnered from members of the legal community, including from both former and current federal, state and local prosecutors,” Aaron Regunberg, senior policy counsel with Public Citizen’s climate program, told the Guardian. The Public Citizen researchers are currently holding events at top law schools including Yale, the University of Pennsylvania, Harvard, University of Chicago and New York University to promote the idea. “I strongly support the effort to go after these bastards,” Christopher Rabb, a Pennsylvania state representative said at a recent UPenn event. The researchers say other public officials have expressed interest behind the scenes as well. The proposal, which will soon be published in the Harvard Law Review, stems in part from the growing body of evidence that the fossil fuel industry hid information about the dangers of fossil fuel use from the public. Those revelations have inspired 40 lawsuits alleging big oil has violated tort, product liability and consumer protection laws and engaged in racketeering. In addition to those civil lawsuits, fossil fuel companies should also face criminal charges, the researchers say. “Criminal law is how we say what is right and wrong in our society,” David Arkush, who directs Public Citizen’s climate program and co-authored the paper on the proposal, told the Guardianl. “I think it’s important that some of the most damaging conduct in human history be squarely recognized and pursued as criminal.”

Yale Environment 360: Nations Are Undercounting Emissions, Putting UN Goals at Risk
FRED PEARCE, 3/21/24

“They are supposed to be the climate-savers’ gold standard — the key data on which the world relies in its efforts to lower greenhouse gas emissions and hold global warming in check. But the national inventories of emissions supplied to the United Nations climate convention (UNFCCC) by most countries are anything but reliable, according to a growing body of research,” Yale Environment 360 reports. “The data supplied to the UNFCCC, and published on its website, are typically out of date, inconsistent, and incomplete. For most countries, “I would not put much value, if any, on the submissions,” says Glen Peters of the Centre for International Climate Research in Norway, a longtime analyst of emissions trends. The data from large emitters is as much open to questions as that from smaller and less industrialised nations. In China, the uncertainties around its carbon dioxide emissions from burning coal are larger than the total emissions of many major industrial countries. And companies preparing data for its carbon-trading system have been accused of widespread data fraud. In the United States, an analysis published this month of the air over the country’s oil and natural gas fields found that they emit three times more methane — a gas responsible for a third of current warming — than the government has reported. “The existing patchwork of greenhouse gas inventories is woefully inadequate… [and] rife with measurement errors,” an analyst says. Meanwhile, a Yale Environment 360 review of U.N. data has found that Qatar, the natural gas-rich Gulf state with the world’s highest per-capita CO2 emissions, has all but given up publicly reporting its emissions. Its last formal submission to the UNFCCC only covered emissions up to 2007. Since then, the country’s undeclared emissions have almost doubled. The proof of these greenhouse-gas bookkeeping failings lies in the real atmosphere. By one recent count, national emissions inventories total just 70 percent of the actual additions to the air, as calculated using remote sensing and model analysis. The remaining 30 percent are unaccounted for. As a result, say analysts, the world is flying blind, unable either to verify national compliance with emissions targets or figure out how much atmospheric “room” countries have left for emissions before exceeding agreed warming thresholds… “The existing patchwork of greenhouse-gas inventories is woefully inadequate,” concluded Amy Luers, director of sustainability science at Microsoft, in a 2022 review with academic colleagues for Nature. They are “rife with measurement errors, inconsistent classification and gaps in accountability.” The situation is made worse, says coauthor Leehi Yona, an environmental lawyer at Stanford University, by “inflexible and outdated” U.N. guidelines for national reporting.”

Canadian Press: Pathways Alliance to file for regulator approval on carbon capture project
Amanda Stephenson, 3/21/24

“A consortium of Canada’s largest oilsands companies said it aims to submit an application before the end of the week for approval of its proposed $16.5-billion carbon capture pipeline project,” the Canadian Press reports. “Pathways Alliance spokeswoman Jerrica Goodwin confirmed the expected timeline in an email Thursday. The oilsands group – whose membership consists of Suncor Energy Inc., Canadian Natural Resources Ltd., Cenovus Energy Inc., Imperial Oil Ltd., MEG Energy Corp. and ConocoPhillips Canada – has previously stated that it cannot make a final investment decision for its marquee project until it has the Alberta Energy Regulator’s approval in hand. Once underway, the regulatory process is expected to take at least a year. But in an interview in November, Pathways president Kendall Dilling said that any filing for regulatory approval should be interpreted as a sign of commitment by the companies to the project. “I do think it’s fair to say that as we submit our regulatory application, and as we proceed with the significant spending through 2024, that should be interpreted as our bona fide commitment to this project and moving it forward,” Dilling said at the time… “The consortium has spent much of the last three years lobbying for federal and provincial support for its project… “As recently as this month, oilsands executives have publicly stated that the level of government support announced for carbon capture so far in Canada is not enough to make the Pathways project competitive.”

Calgary Herald: ‘A big deal’ — oilsands group set to make major regulatory application for CCUS megaproject
Chris Varcoe, 3/21/24

“The Trudeau government and environmental critics have demanded Canada’s oilsands producers show tangible progress on its colossal carbon capture network in northern Alberta. Less talk, more action, has been the not-so-subtle message. On Friday, that’s expected to happen,” the Calgary Herald reports. “The president of the Pathways Alliance group of oilsands producers says it will file an application with the Alberta Energy Regulator (AER) for a 400-kilometre pipeline for the broader $16.5-billion decarbonization development… “The CCUS project’s first phase is expected to store up to 12 megatonnes annually by 2030… “The regulatory application is expected to take about one year to complete. During that period, the oilsands group will continue with ongoing consultation with Indigenous communities in the region, Dilling told the Herald. In the first phase of the $16.5-billion foundational project, the pipeline will connect to 16 different oilsands facilities. The pipe has not yet been ordered, but the group has been talking with various mills and an order is expected to cost several hundred millions of dollars. To date, the group has spent about $100 million on the CCUS project, and upwards of $2 billion on its overall net-zero plans… “On Thursday, Alberta Energy Minister Brian Jean told the Herald the project is critical to the future of the oilsands sector, and the province, as it looks to decarbonize and meet growing global demand. The application shows the consortium is serious, as such processes take a lot of time, money “and commitment to get it done,” he told the Herald… “If they are putting the application in it means, No. 1, that they’re confident the federal government is going to come and fulfil the promises that they made to them over the past few years… “Hopefully in 2025, sometime, we’re in a position to be making final investment decisions on the project.”

Carbon Herald: CapturePoint Closes 45Q Direct Transfer Tax Credit Transaction 
Petya Trendafilova, 3/21/24

“CapturePoint LLC announced it has closed on a private Section 45Q direct transfer tax credit transaction for carbon dioxide (CO2) captured at the company’s Arkalon facility near Liberal, Kansas and utilized for carbon dioxide enhanced oil recovery (CO2-EOR) operations in the panhandles of Oklahoma and Texas,” the Carbon Herald reports. “The CapturePoint Arkalon CO2 capture facility has the capacity to capture 250,000 metric tons of CO2 annually from nearby bio-ethanol production. CapturePoint transports the captured CO2 through its 170-mile regional network of dedicated CO2 pipelines to over 75 active CO2 injection wells the company uses for CO2-EOR operations… “The new Arkalon CO2 capture facility was placed in service in April 2023, generating Section 45Q tax credits for capturing and utilizing industrially sourced CO2 emissions. The Tax Credit Transfer Agreement between CapturePoint and the buyer includes placement of 100% of the 45Q tax credits generated by the Arkalon facility for a total of 12 years. At closing, CapturePoint will transfer all 2023-generated 45Q tax credits to the buyer… “The Section 45Q transaction was placed privately by Marathon Capital… “With both the Arkalon CO2 capture facility Section 45Q placement and an earlier transaction announced in January 2023 for CO2 captured at a nitrogen fertilizer facility in Coffeyville, Kansas, CapturePoint now has nearly one million metric tons per year of industrially sourced CO2 being utilized in CO2-EOR operations and generating 45Q tax credits.”

Press release: Special Envoy John Podesta Must Oppose Carbon Markets and Offsets in the Paris Agreement to Solve the Climate Crisis
3/20/24

“Today, a letter sent by over 100 environmental and frontline organizations (below) urges Biden’s new Special Envoy, John Podesta, to oppose the carbon markets being built in Article 6 of the Paris Agreement, and to instead call for policies that will effectively address climate change. The groups argue that carbon market schemes do not reduce fossil fuel extraction and combustion or deforestation. Rather, carbon markets and offsets allow polluting industries to increase greenhouse gas emissions, while falsely claiming they have reduced emissions, as well as embrace technologies and practices that can increase greenhouse emissions and undermine the rights of Indigenous Peoples and human rights… “With time running out to address the climate crisis, organizations point out the desperate need to bring the ongoing scam of carbon markets to light. By defining carbon dioxide removals (CDR) through the lenses of biological and engineered offsets, and expanding offsets into the farm sector, the organizations and frontline groups outline the folly of false solutions like carbon capture and storage, forest and soil offsets in both Federal policies and Article 6 of the Paris Agreement. “Carbon markets have failed to reduce emissions for over 20 years. Moreover, they have increased conflicts that threaten the rights and sovereignty of Indigenous Peoples,” stated Tom Goldtooth, Executive Director of the Indigenous Environmental Network. “Article 6 of the Paris Agreement will enshrine the impacts of climate change by increasing carbon markets and offsets, which do nothing to reduce emissions at source, and cause violence to Indigenous Peoples where the offsets projects are implemented. We need strong negotiation at the UNFCCC to end Article 6 before it is too late.” 

OPINION

Utility Dive: Unlocking the power of green hydrogen requires a workable tax credit
Andy Vesey is the North America CEO of Fortescue Future Industries, 3/21/24

“The Biden Administration has made it clear it wants to achieve a clean energy future and boosting domestic hydrogen production is key to making that happen. However, in spite of bipartisan support for greater hydrogen investment, proposed guidance released in December by the U.S. Treasury Department has endangered the nascent green hydrogen industry, before it’s even had a chance to really begin,” Andy Vesey writes for Utility Dive. “The department’s draft rules for the 45V clean hydrogen tax credit will slow things to a crawl, doing the opposite of what the Inflation Reduction Act intended, which was to encourage domestic hydrogen production. Instead of eliminating barriers to production, the current 45V draft would restrict the types of clean energy that can be used, where it can be used, and even when it can be used through the so-called three pillars — temporal matching, additionality and deliverability. A cornerstone of the rule, temporal matching, demands electricity used by projects will need to be made in the same hour in which it is used to produce hydrogen. This restriction alone could increase the cost of making hydrogen by up to 175%, according to analysis by Wood Mackenzie. Another key piece, called additionality, will require clean hydrogen to only use new sources of renewable power, even if surplus sources already exist and are readily available. Not only would this requirement add costs, but the time alone to bring these new, clean generation sources online can be as long as five years, pushing back the quick development of hydrogen projects. The reaction from industry — those of us who will actually produce and use green hydrogen to decarbonize a wide array of industries and sectors — has been swift and nearly unanimous: these draft regulations will stifle growth, not foster it… “Hope is not lost. The concerns presented by the eligibility requirements for 45V are both substantial and material — and will be presented at a three day public hearing in Washington D.C. at the end of March… “By addressing the overly restrictive guidance for the 45V tax credit, the U.S. government can ensure that hydrogen production incentives truly accelerate the transition to a low-carbon economy. A workable hydrogen tax credit is not just a policy mechanism; it is a pivotal step towards a sustainable future.”

The Hill: Natural gas is essential to any realistic path toward greenhouse gas reduction
Ryan Lance is chairman and CEO of ConocoPhillips and vice chair of the National Petroleum Council, 3/22/24

“Natural gas was at the top of the agenda this week when global and energy leaders convened in Houston for CERAWeek, an annual gathering to advance solutions to the biggest challenges facing the future of energy and the environment. This timely discussion occurred against a backdrop of federal actions at the Environmental Protection Agency and the Department of Energy that could affect permitting, regulation and reporting for the U.S. oil and natural gas industry,” Ryan Lance writes for The Hill. “A vital part of the energy mix here in the U.S. and across the globe, natural gas will continue to be needed for decades to come. Yet producing this gas and getting it to homes and businesses creates greenhouse gas emissions. That’s why reducing operational emissions from America’s natural gas is a priority for all of us. The National Petroleum Council, a federal advisory committee comprised of industry, Tribal, academic and environmental leaders, convened a broad group of experts to find solutions to this very issue at the request of the U.S. Secretary of Energy… “Natural gas is already well positioned to meet global demand in a way that balances economic needs with environmental stewardship. As consumption of traditional fuels continues to rise, there is a global opportunity — an imperative, really — to expand the role of U.S. natural gas. For future energy markets to truly succeed, we must balance economic, security and environmental goals. Society will not tolerate advancing one at the expense of the others. I’m excited for the research to be shared, but even more so for us to continue these collaborative efforts as we work with stakeholders to turn recommendations into action. Together, we can set future generations on a pathway to responsible and environmentally conscious growth and prosperity. That effort starts with us, right now.”