EXTRACTED: Daily News Clips 4/9/24

PIPELINE NEWS

• E&E News: The legal long shot that could shut down Dakota Access

• DeSmog: Sell Our CO2 to Pump More Oil? It’s Likely, Says Iowa-based Carbon Capture Project.

• Sierra Club Iowa: HF2664 has a subcommittee meeting scheduled on Tuesday, April 9 at 3pm

• KFYR: Public hearings to focus on proposed 320-mile carbon dioxide pipeline

• Nebraska Examiner: Pipeline company, environmental group strike unique ‘community benefits’ agreement

• Pipeline Fighters Hub: Tallgrass, Bold Alliance, and Key Agricultural and First Responder Organizations Announce a Community Benefits Agreement

• Law360: Tribes Say Army Corps Mistakes Their Claims In 5th Circ. Row

• True North: Trans Mountain Pipeline to start exporting oil in May

• Bloomberg: Energy Transfer Files for Regulator Review in Pipeline Spat

• GCaptain: Gulf of Mexico Pipeline Repaired After Mystery Oil Spill Off Louisiana

• World Pipelines: AMPP unveils new guide to enhance pipeline safety

WASHINGTON UPDATES

• E&E News: Republicans make Texas pitch for scrapping Biden LNG pause

• E&E News: House Republicans Say EPA Methane Fee ‘Unworkable’ 

• Washington Post: EPA mulls tougher limits on new gas plants as 2024 election nears

• E&E News: DOE urged to widen reviews of gas exports

• S&P Global: Biden’s carbon capture plans inch closer to reality amid uptick in well permits

• E&E News: Legal jousting intensifies over next step in kids climate case

• E&E News: Enviros sue over offshore drilling impact on wildlife

STATE UPDATES

• Tri-City Record: New Mexico Tech will move ahead with carbon capture projects in the region

• UVA: Virginia’s Carbon Capture Potential: A Roadmap to Climate Restoration

• E&E News: Southern California air regulators decline to livestream refinery flares

EXTRACTION

• Associated Press: Swiss women score a landmark climate win in a court decision that could ripple across Europe

• Bloomberg: Suncor’s Syncrude Fined $287,000 Over Oil Sands Worker Death

• Journal of Commerce: Manitoba introduces carbon capture and storage legislation

• Bloomberg: Gates-Backed Startup Makes Fuel From Water and Carbon Dioxide

CLIMATE FINANCE

• Bloomberg: Zurich Insurance to Halt Coverage of New Fossil-Fuel Exposures

• Reuters: West Virginia treasurer adds four finance firms to ESG blacklist

• E&E News: Republicans set another hearing on SEC climate rule

OPINION

• Petoskey News-Review: Oil and water don’t mix
  

PIPELINE NEWS

E&E News: The legal long shot that could shut down Dakota Access
Mike Soraghan, 4/9/24

“The tribe fighting to shut down the Dakota Access pipeline has new ammunition in its long legal battle: The operator needs a federal easement, but it’s barred from doing business with the government,” E&E News reports. “Energy Transfer has been operating Dakota Access for years under a lake managed by the federal government. But its original easement was struck down by a court — and the Standing Rock Sioux Tribe argues that the company’s federal “debarment” means it isn’t eligible for a new one. Experts told E&E it’s a legal long shot — but not an impossible one. “It’s plausible, possible, but maybe not probable,” Robert Meunier, who was a top debarment official at EPA and led the Office of Management and Budget’s Interagency Suspension and Debarment Committee, told E&E. Still, he said, “It sounds like that company may have a major problem.” The debarment — which has not been previously reported — stems from Energy Transfer’s checkered environmental record, which includes spills, leaks and an explosion during construction of pipelines in Pennsylvania. It provides a new opening for a legal case that could have far-reaching repercussions: Dakota Access carries about 6 percent of the country’s daily oil production and plays an outsize role in the national debate over climate and domestic energy production… “We’re gathering our quivers and our arrows to continue to fight and stop the Dakota Access pipeline in any way we can,” Doug Crow Ghost, the tribe’s water resources director, told E&E. “We’re trying to figure out how this debarment can play a role in a lawsuit.” “…Robert Saunooke, a North Carolina lawyer who has long represented tribes, told E&E EPA’s debarment should prevent the corps from issuing a permit, but said he doesn’t expect tribes to get a fair hearing in U.S. courts. “I think it’s a novel approach,” Saunooke told E&E. “I don’t think the court will rule in their favor.” “…If Dakota Access keeps its easement, the Standing Rock tribe could challenge the Army Corps’ decision in court. “There’s a lot of different ways this could turn out,” Meunier told E&E.

DeSmog: Sell Our CO2 to Pump More Oil? It’s Likely, Says Iowa-based Carbon Capture Project.
Taylor Noakes, 4/8/24

“Despite pledges to the contrary, a massive proposed carbon capture project could in fact be used to pump more oil out of the ground, rather than simply storing carbon emissions from ethanol production, as it was pitched originally,” DeSmog reports. “A recent Reuters report indicates that, according to its review of regulatory filings and recordings of company officials, representatives from Summit Carbon Solutions have said the company is open to using captured carbon dioxide for enhanced oil recovery (EOR), a potential lifeline to North Dakota’s waning oil sector… “The company previously had denied its expansive Midwest Carbon Express project would be used for EOR, a process that involves injecting carbon dioxide into old oil wells to extract otherwise inaccessible sources of oil. A DeSmog investigation of a dozen major CCS projects, including many EOR projects, found cost-overruns, missed targets, and net increases in emissions. While the oil industry brands carbon capture and storage (CCS) as a climate solution, most carbon capture projects currently operating in the United States, and around the world, are actually just used for EOR. And they aren’t even that good at storing carbon. “During EOR, 40 percent of the CO2 captured is released right back to the air,” Mark Jacobson, civil and environmental engineering professor at Stanford University, told DeSmog. And that’s before the newly extracted hydrocarbons are burned or otherwise used. Instead of reducing emissions, EOR projects rebranded as “CCS” are using federal tax incentives to keep oil and gas fields operational that otherwise would have run dry years ago… “Meanwhile, the project has faced opposition from unlikely bedfellows, ranging from Native American tribes and farmers to environmentalists and rural conservatives… “In its website’s ‘get the facts’ section, Summit Carbon states explicitly that the Midwest Carbon Express project would not be used for enhanced oil recovery. It then goes out of its way to distance the project from North Dakota’s well-established Bakken oil field, whose production peaked in 2019… “It goes on: “Summit Carbon Solutions’ sequestration site outside of Bismarck, North Dakota is entirely separate and apart from the Bakken or other areas where enhanced oil recovery is possible. The company is investing $100 million in its permanent storage locations in North Dakota.” “…The project’s critics, from corn farmers to climate scientists, previously identified the possibility that Midwest Carbon Express could divert its captured carbon to squeeze more oil out of the North Dakota Bakken formation, a concern that now appears to be justified… “That Summit Carbon has been entertaining opening their carbon capture project for EOR purposes in North Dakota is not surprising to Jacobson, the Stanford professor. He speculates that while Summit’s original plan may have been to store carbon dioxide underground, the company lacked a financial incentive to do so. “They have more incentive to find a buyer for the carbon dioxide,” Jacobson told DeSmog, “and oil companies are by far the most interested in buying CO2, since they can use it for EOR. I think reality hit and they realized the cost of their project would be much greater than they thought, and so they began considering a way to pay for that.”

Sierra Club Iowa: HF2664 has a subcommittee meeting scheduled on Tuesday, April 9 at 3pm
4/8/24

“Join us at the Capitol on 4/9 at 10am in the Cafeteria to lobby our Senators and make sure the bill passes.  You will have the opportunity to testify at the subcommittee (in-person or virtually) and we encourage you all to do so. Subcommittee on 4/9 at 3pm CT: Attend & Testify in person: Iowa State Capitol, room G15… “A bill, HF 2664, that passed in the Iowa House would establish a new procedure to protect landowners from eminent domain for projects under the jurisdiction of the Iowa Utilities Board. This new procedure would allow a landowner to seek a declaratory order from court even before the Utilities Board has made a decision whether to permit the proposed project. The bill offers landowners relief from years of stress related to the threat of eminent domain by creating a process for landowners to know up-front if they will be subjected to eminent domain. It provides certainty so that they can carry on with their lives as the permitting process also carries on. Under current procedure a utility or private developer makes an application to the Board to permit a project (e.g., a carbon dioxide pipeline) and requests the right to take property for the project by eminent domain. But a decision on whether eminent domain will be granted is made by the Board only after the decision on the permit is issued. A landowner is under the stress of uncertainty about eminent domain until the process is complete. The new procedure established by HF2664 would allow a landowner to obtain a decision by a neutral court up front as to whether eminent domain would be granted. HF2664 also balances the appeal process for the IUB’s final decision. Currently, when appealing an eminent domain ruling, Iowa law requires a party to file a bond if they want to pause construction until the court issues a decision. This bond can be upwards of hundreds of millions of dollars, effectively prohibiting a meaningful appeal. HF2664 removes the bond requirement to pause construction during appeals of IUB’s final order.”

KFYR: Public hearings to focus on proposed 320-mile carbon dioxide pipeline
Brian Gray, 4/8/24

“The Public Service scheduled three public hearings on a proposed carbon dioxide pipeline,” KFYR reports. “The pipeline is being proposed by Summit Carbon Solutions and would run roughly 320 miles through 10 counties across south-central to southeast North Dakota… “The three meetings will be held during the following dates, times and locations: Monday, April 22 at 9 a.m. at the Baymont Inn and Suites on 2611 Old Red Trail NW in Mandan. This meeting will focus primarily on portions of the project in Burleigh, Morton and Oliver Counties and may extend multiple days. Friday, May 24 at 9 a.m. at the N.D. State College of Science in the Harry Stern and Ella Stern Cultural Center on 811 6th Street in Wahpeton. This hearing will focus primarily on adjustments in Dickey, Sargent, Cass and Richland Counties. Tuesday, June 4 at 9 a.m. at Our Club on 120 Cedar Avenue East in Linton. This hearing will focus primarily on the adjustments in Emmons, Logan and McIntosh Counties.”

Nebraska Examiner: Pipeline company, environmental group strike unique ‘community benefits’ agreement
PAUL HAMMEL, 4/9/24

“The developer of a carbon-dioxide pipeline and an environmental group have struck a “one-of-a-kind” agreement to ensure “community benefits” from the pipeline as well as support for the project,” the Nebraska Examiner reports. “This agreement is exactly what all communities should have,” Jane Kleeb, founder of Bold Alliance, told the Examiner. “Real money is being left behind in these communities.” Kansas-based Tallgrass, which is converting a 392-mile-long natural gas pipeline to transport CO2, announced the agreement Tuesday with Bold Alliance, whose subsidiary, Bold Nebraska, was a leading opponent of the Keystone XL crude-oil pipeline. Tallgrass is converting the former Trailblazer Pipeline — which runs from Beatrice, Nebraska, to eastern Wyoming — to carry carbon dioxide generated by ethanol plants for sequestration deep underground in Wyoming… “Under the “community benefits agreement,” Bold will not oppose the project in exchange for Tallgrass’ commitment to spend $600,000 to train and equip first responders on the pipeline route and to donate $500,000 to nonprofits in the counties on the route. In addition, landowners will have the option to receive yearly royalty checks, based on the volume of carbon dioxide being shipped, rather than a lump-sum payment for right of way upfront. And they will have the option of having Tallgrass remove the pipe and reclaim the land if the pipeline is later decommissioned. Kleeb told the Examiner that Bold, realizing that most of the Tallgrass project was using existing pipeline, focused on getting the best deal for local landowners and communities, and to make sure first responders were prepared in the event of a pipeline leak. She told the Examiner Tallgrass is the first pipeline company that has been willing to “engage proactively, acknowledge the need for landowner benefits … and genuinely commit itself to addressing those benefits in a written agreement.” “…The agreement, Kleeb told the Examiner, “sets a standard” for future energy infrastructure projects of all kinds, including renewable energy… “The agreement does not impact individual landowners who don’t want to sell right-of-way for the pipeline, the officials said. However, Kleeb told the Examiner, it outlines “best practices” for negotiating with landowners that Bold had been seeking from state lawmakers. Lawsuits over eminent domain could still happen, and Kleeb told the Examiner the agreement doesn’t change Bold’s opposition to the use of eminent domain for pipelines that blaze new routes… “Unlike other carbon pipelines being proposed in the Midwest, the Tallgrass/Trailblazer project utilizes an existing pipeline that’s being converted to handle CO2, though some new laterals will be built to ethanol plants… “Under the contract between Tallgrass and Bold Alliance, non-compliance could result in a lawsuit seeking enforcement of the provisions. Eleven farm groups also signed the 10-page, 10-year agreement as supporters, including the Nebraska Farm Bureau, the Nebraska Farmers Union and Renewable Fuels Nebraska… “Kleeb told the Examiner several of the obligations made by Tallgrass were ones Bold had unsuccessfully sought in the Nebraska Legislature. “Hopefully this will serve as an example for senators,” she told the Examiner.

Pipeline Fighters Hub: Tallgrass, Bold Alliance, and Key Agricultural and First Responder Organizations Announce a Community Benefits Agreement
4/9/24

“In the state of Nebraska, there is no state agency with authority over carbon dioxide (CO2) pipelines, after the Nebraska Public Service Commission issued a statement saying it had no authority under state laws, leaving landowners, counties and first responders to come up with measures to protect property rights, themselves and the communities impacted,” according to the Pipeline Fighters Hub. “The Tallgrass Trailblazer methane gas pipeline was constructed in 1981 to carry gas across Wyoming, Colorado and Nebraska. The company recently applied for and was granted permission by the Federal Energy Regulatory Commission (FERC) to transition the existing gas pipeline to carry carbon dioxide, where it plans to connect with Midwest ethanol plants and collect CO2 emissions for transport via the Trailblazer pipeline for underground sequestration. Methane gas pipelines are regulated by FERC, which holds the power to grant eminent domain authority to corporations to seize landowners’ property against their will for a project. Carbon pipelines do not have an equivalent to FERC for the rules and regulations around eminent domain, siting and decommissioning on a national level. In the case of the Tallgrass Trailblazer pipeline, in this particular situation with this particular project in the state of Nebraska, with the current lack of any regulation in Nebraska — landowners, first responders and communities did not have enough votes in the legislature to put basic protections into law. This fundamental reason is why Bold approached Tallgrass to seek protections and benefits in writing of the Community Benefits Agreement. An easement contract for the existing gas pipeline was already negotiated decades ago, and that methane gas pipeline was authorized by the Federal Energy Regulatory Agency (FERC) which approved the company’s plan to take the gas line out of service, and convert it to instead carry CO2. Currently, the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) is working on updating regulations for carbon pipelines — in the wake of the 2020 CO2 pipeline rupture incident in Satartia, MS that forced the evacuation of hundreds and sent dozens to the hospital, with some reporting negative health impacts to this day.  Under this set of circumstances, Tallgrass landowners are in a position where they cannot fight eminent domain to stop a pipeline that is already in the ground on their property. Bold has for years urged the Nebraska Legislature to pass a number of bills that would provide added protections to landowners against eminent domain, enhance decommissioning plans for equipment after the life of a pipeline, and provide more comprehensive financial compensation for landowners and communities that shoulder the risks and burdens of these projects. With no Nebraska state laws in existence to protect Tallgrass landowners, Bold realized an opportunity to seek some protections through a unique “Community Benefits Agreement” with the company, which also includes a number of other local community, Agricultural and first responder organizations. The Agreement includes financial benefits directly into the pockets of landowners and protections that would not have otherwise been available to landowners, first responders and the impacted communities in Nebraska. While Bold entered into this Community Benefits Agreement with Tallgrass within the state of Nebraska, Bold does not see any path to a similar community benefits agreement, for instance, with Summit Carbon Solutions — which has already sued hundreds of landowners seeking survey access against their will, and has threatened to use eminent domain from day one to seize property from unwilling landowners. Summit has continued to show they do not care about landowners, first responders or communities in the path of their new pipeline infrastructure project.”

Law360: Tribes Say Army Corps Mistakes Their Claims In 5th Circ. Row
Madeline Lyskawa, 4/8/24

“Two Native American tribes and a conservation group have told the Fifth Circuit that the U.S. Army Corps of Engineers and an Enbridge Inc. unit have intentionally mischaracterized their claims,” Law360 reports. 

True North: Trans Mountain Pipeline to start exporting oil in May
Quinn Patrick, 4/8/24

“Canada’s Trans Mountain Expansion oil pipeline announced that it will begin commercial operations on May 1st, ahead of what analysts were expecting,” True North reports. “…The company is scheduled to begin exporting crude oil on the expanded pipeline next month as it completes the project’s remaining construction and awaits the necessary approvals from the Canada Energy Regulator… “Oil sands company MEG Energy stated last month that the project has requisitioned 2.1 million barrels for April and the same amount for May. The $30.9 billion project, owned by the Canadian government, aims to substantially increase the transport capacity of oil from Alberta through B.C. to the Pacific Coast, with targets of up to 890,000 barrels per day. Shipments of oil will then be sent to the United States and Asian markets.”

Bloomberg: Energy Transfer Files for Regulator Review in Pipeline Spat
Elizabeth Elkin, 4/8/24

“Energy Transfer LP is asking the Federal Energy Regulatory Commission to take a closer look at a Williams Cos Inc. pipeline project as a legal battle rages between the two companies,” Bloomberg reports. “Energy Transfer said in a FERC filing that Williams is constructing interstate transmission pipeline facilities in Texas and Louisiana without first seeking necessary approval. The filing also asks FERC to clarify how it applies tests to determine whether a facility needs a public-interest period and a review under the National Environmental Policy Act. Multiple developers are sparring with Energy Transfer, saying the pipeline heavyweight is blocking them from building new projects by not allowing them to cross over its existing conduits. Energy Transfer has said that the companies are asking for an unreasonable number of crossings and failing to go through proper regulatory review. “Every gas infrastructure developer should play by the same rules — whether that developer is Williams, Energy Transfer or anyone else,” Energy Transfer said in the filing… “Energy Transfer’s FERC complaint is another step by Energy Transfer to stifle competition in Louisiana,” the statement read. “Williams looks forward to working with FERC on this matter.”

GCaptain: Gulf of Mexico Pipeline Repaired After Mystery Oil Spill Off Louisiana
Mike Schuler, 4/8/24

“A Unified Command has successfully completed an integrity test on the Main Pass Oil Gathering (MPOG) company’s pipeline system, located southeast of New Orleans in Plaquemines Parish. This procedure was carried out in response to an oil release that was first detected on November 16, 2023,” GCaptain reports. “The integrity test revealed a failed subsea connector on the MPOG line that did not maintain pressure. It is still undetermined whether this connector was associated with the November oil release, and additional potential sources are being investigated. The exact quantity of the oil discharge is unknown. However, initial projections suggest that roughly 1.1 million gallons of crude oil could have been released from the 67-mile long pipeline, which was subsequently was closed by MPOG. Working with the Unified Command, MPOG developed and executed a plan to safely remove and replace the spool piece – the part of the pipeline that included the failed connector. The operation prioritized safety and environmental protection… “The National Transportation Safety Board (NTSB) is leading the investigation into the source of the November 16 oil release.”

World Pipelines: AMPP unveils new guide to enhance pipeline safety
Isabel Stagg, 4/9/24

“The Association for Materials Protection and Performance (AMPP), the global authority in materials protection and performance, recently published “Guide 21569-2024, Guidance on Implementing Corrosion Control Methodologies to Align with New PHMSA Regulatory Procedures,” a comprehensive document developed by Standards Committee SC 15 – Pipelines and Tanks, aimed at bolstering the safety and integrity of onshore gas transmission pipelines,” World Pipelines reports. “In response to the US Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA)’s revised Federal Pipeline Safety Regulations, AMPP’s Guide 21569-2024 offers a detailed roadmap for pipeline operators to implement corrosion control requirements for onshore gas transmission as required in Part 2 of the PHMSA Gas Mega Rule. The PHMSA revisions encompass an array of enhanced safety measures, including improved repair criteria, integrity management, cathodic protection, and management of change, all intended to mitigate risks associated with pipeline corrosion and ensure compliance with the most current safety standards… “This guide emerged from the industry’s need for a cohesive approach to comply with the new corrosion control, operations, maintenance, and integrity management PHMSA regulations that went into effect for transmission pipelines placed into service after February 24, 2024. It presents practical strategies for incorporating these requirements and leverages established practices to protect pipeline assets.”

WASHINGTON UPDATES

E&E News: Republicans make Texas pitch for scrapping Biden LNG pause
Nico Portuondo, 4/9/24

“House Energy and Commerce Republicans traveled to Texas on Monday to make the local argument for the immediate cancellation of Biden administration’s pause on new gas export terminals,” E&E News reports. “The Energy, Climate and Grid Security Subcommittee field hearing in Port Arthur came as House Speaker Mike Johnson (R-La.) prepares to release a Ukraine aid package that could include language against the pause. Green groups and many Democrats are warning the Biden administration against accepting such a plan. Republicans at the hearing argued that reversing the pause was essential because of the economic headaches the move is causing. “President Biden’s LNG pause is going to have a a ripple effect throughout Southeast Texas,” said Rep. Randy Weber (R-Texas), whose district includes Port Arthur. “Community families are collecting a paycheck and putting food on the table … but critical investments might disappear if the ban remains in place and goes on too long.”

E&E News: House Republicans Say EPA Methane Fee ‘Unworkable’ 
NICO PORTUONDO, 4/9/24

“Dozens of House Republicans are calling on EPA to make wide-ranging adjustments to its signature effort to reduce methane emissions from fossil fuel operations,” E&E News reports. “In a letter to Administrator Michael Regan on Monday, Rep. August Pfluger (R-Texas) led 55 House Republicans — mostly from energy-producing states — in calling the agency’s implementation of the Inflation Reduction Act’s so-called methane fee ‘unworkable.’ Specifically, Pfluger and the Republicans object to two proposed rules to implement the Inflation Reduction Act’s mandates — the so-called Waste Emissions Charge rule and separate but complementary rulemaking under Supbart W of the Clean Air Act’s Greenhouse Gas Reporting Program. ‘As currently proposed, this scheme will generate the maximum amount of fees while providing zero of the intended relief, or the improved accuracy of emissions reporting,’ wrote the lawmakers.”

Washington Post: EPA mulls tougher limits on new gas plants as 2024 election nears
Maxine Joselow, 4/9/24

“The Environmental Protection Agency is considering significantly strengthening proposed limits on planet-warming pollution from power plants — a crucial part of President Biden’s climate agenda — according to three people briefed on the matter, who spoke on the condition of anonymity because no final decisions have been made,” the Washington Post reports. “The discussions about toughening the standards, which are set to be released this month, have major implications for America’s fleet of power plants, which rank as the country’s second-largest contributor to climate change. They come as the administration weighs the political calculus of weakening or strengthening environmental regulations before the 2024 election. In some cases, the Biden administration has finalized rules that are less stringent than the original proposals. With power plants, it appears to be heading in the opposite direction. In May 2023, the EPA issued a proposed rule that called for drastically curbing greenhouse gas emissions from three categories of power plants: existing coal plants, existing gas plants and new gas plants. But in February, the agency said the final rule would no longer cover existing gas plants, disappointing some environmental advocates. Now, EPA officials are considering strengthening the requirements for new gas plants, according to the people familiar with the matter. Specifically, officials are in talks about having the final rule apply to new large gas plants that operate more than 40 percent of the time, rather than those that operate 50 percent of the time as the proposal had envisioned. The change could affect the majority of new gas plants built in the United States, and it could have a significant climate impact. According to the EPA’s modeling, it could prevent up to 10.6 million metric tons of carbon emissions per year — equivalent to taking 2.5 million cars off the nation’s roads for a year.”

E&E News: DOE urged to widen reviews of gas exports
Brian Dabbs, 4/9/24

“Dozens of environmental groups joined together Monday to push the Department of Energy to make sure climate change and domestic energy prices are major priorities in the agency’s new analysis of liquefied natural gas exports,” E&E News reports. “The groups, led by the Sierra Club, also called for a focus on environmental justice — the effort to reduce pollution that takes a disproportionate toll on communities of color and certain rural and low-income areas. It’s “past time for a robust review of LNG export proposals and our frontline communities, domestic consumers, and manufacturers are actively suffering as a result,” the groups said in a letter delivered to Energy Secretary Jennifer Granholm and shared with POLITICO’s E&E News. In late January, DOE paused approvals of new LNG exports to countries that the U.S. does not have free trade agreements with — a move with big potential implications for President Joe Biden’s reelection bid that was praised by environmentalists and condemned by fossil fuel supporters. The department is now conducting an economic and climate analysis on LNG that will help inform future decisions to approve or deny exports.”

S&P Global: Biden’s carbon capture plans inch closer to reality amid uptick in well permits
Siri Hedreen, 4/8/24

“The Biden administration’s ambition to capture carbon dioxide on a large scale and inject it back into the ground may have seemed daunting one year ago with only two CO2 storage facilities in the US. But a boost in federal spending on the technology in 2021 and 2022 may finally be bearing fruit after a sudden uptick in permits, according to industry watchers,” S&P Global reports. “…As of April 2023, only three Class VI wells existed in the US, despite dozens of permit applications under review. One of those wells was greenlighted in 2022 by North Dakota, one of only two states at the time with permission from the US Environmental Protection Agency to permit carbon storage projects… “The slow pace of development was not lost on carbon capture’s critics, who dismiss the technology as unproven at best and, at worst, as an excuse for fossil fuel companies to keep drilling… “But carbon capture advocates say an increase in annual appropriations to the EPA’s Class VI well program and funding from the bipartisan infrastructure law of 2021 may finally be paying off. In the past 12 months, North Dakota regulators have issued seven more Class VI well permits, and the Wyoming Department of Environmental Quality handed out its first three. Meanwhile, the EPA has broken its dry spell, approving its first carbon storage project — attached to a planned Indiana hydrogen plant — under the Biden administration and proposing draft permits for a California Resources Corp. project in California’s Central Valley. “The coalition is pleased to see the pace is speeding up a little bit. It’s truly unprecedented, the amount of interest in Class VI wells we’re seeing at EPA,” Jessie Stolark, executive director of the Carbon Capture Coalition, an industry advocacy group, told S&P. “This is a very rigorous process, and yes, it takes time.” “…Though Texas is also seeking primacy from the EPA — as are Arizona and West Virginia — the Lone Star State will likely need to change its statutes to bring its permitting program up to the federal government’s standard, according to Jarrott… “But some community and environmental groups are still skeptical that state agencies are better equipped than the EPA to regulate carbon storage.”

E&E News: Legal jousting intensifies over next step in kids climate case
Lesley Clark, 4/8/24

“Six retired Montana Supreme Court justices are urging the state’s highest court to uphold a landmark legal victory for young climate activists,” E&E News reports. “It comes as the state of Montana has asked the state Supreme Court to toss Held v. Montana, arguing that a lower court “glossed over basic jurisdictional thresholds” to reach a flawed conclusion in the case, which determined last year that residents have a constitutional right to a safe environment. The retired justices, along with tribal nations and outdoor recreation companies including Patagonia, said in friend of the court briefs that they are “profoundly concerned” that “partisan branches” of government are trying “to bar the judicial branch from enforcing constitutional rights.” First District Judge Kathy Seeley ruled in August that lawmakers had violated the Montana Constitution by barring agencies from considering the climate effects of fossil fuel projects. The retired justices — who say they collectively have more than 85 years of experience on the bench — said the court should uphold the finding that the youths’ constitutional right to a “clean and healthful environment” had been violated.”

E&E News: Enviros sue over offshore drilling impact on wildlife
Michael Doyle, Heather Richards, 4/8/24

“Environmentalists on Monday filed a broad legal challenge to a 2018 Fish and Wildlife Service assessment that has been essential for offshore oil and gas drilling in the Gulf of Mexico,” E&E News reports. “Citing the potential harm to myriad federally protected species, including manatees and sea turtles, the Center for Biological Diversity contends in the lawsuit that the FWS’s 2018 assessment “ignores” the impact of oil and gas drilling on climate change. Climate change, in turn, is identified as a threat to six sea turtle species, four beach mice species, nine bird species and the manatee, all of which are listed as threatened or endangered. Under the Endangered Species Act, the FWS was required to prepare the 2018 “biological opinion” as part of a consultation with the Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement. “The federal government’s blatant disregard for the climate crisis is alarming. By approving more and more fossil fuel extraction, they’re deepening the problem,” David Derrick, an attorney at CBD, told E&E.

STATE UPDATES

Tri-City Record: New Mexico Tech will move ahead with carbon capture projects in the region
David Edward Albright, 4/5/24

“The San Juan County Commission on Tuesday unanimously approved a memorandum of agreement between New Mexico Tech and the San Juan County,” the Tri-City Record reports. “…According to the county staff summary report, the funding from the U.S. Department of Energy will be used to “accelerate the deployment of carbon capture and storage projects in the San Juan Basin in an equitable and environmentally responsible manner.” The agreement states that New Mexico Tech will “secure funding secure funding through the U.S. Department of Energy’s DE-FOA-0003014 funding opportunity: Regional Initiative for Technical Assistance Partnerships to Advance Deployment of Basin-scale Carbon Transport and Storage and Community Engagement.” It also states that New Mexico Tech will “engage a “multidisciplinary team with expertise in education, community engagement, carbon storage resource assessment, project management, monitoring, reporting and verification for CCS projects, CO2 pressure management and optimization, legal, regulatory, CO2 transportation and safety.” The San Juan County agreement: The county acknowledges the expertise and capabilities of New Mexico Tech’s multidisciplinary team. a. Support engagement with communities to implement the community benefit plan. b. Provide training for various organizations, including universities, community colleges, and trade professionals. c. Reevaluate and share CO2 storage resource and hazard assessment for the San Juan community. d. Identify crosscutting opportunities for supporting the development of CO2 storage projects. e. Offer technical assistance to both project developers and the community to ensure equitable deployment of multiple carbon storage projects in the San Juan Basin.” “…Ampomah told the Record they cannot do the project without support and must engage the community and are “mandated” to look at quality jobs and how many jobs will be created… “The question of water consumption was posed by commissioner Commissioner Steve Lanier. Ampomah said they work very hard to use “reused water,” but he would have to cross-check to get the actual number of gallons that was used on the first well project.”

UVA: Virginia’s Carbon Capture Potential: A Roadmap to Climate Restoration
Suzanne Hodges, 4/8/24

“Soon, environmental engineer Lisa Colosi Peterson will have a heap of red and green data to read. Her team has charted Virginia’s 133 counties and independent cities, and to each, they’re assigning color-coded yes’s and no’s. These designations will determine whether a given county can practically put two types of carbon capture and storage technology in place based on cost and available resources,” according to UVA. “…The 2022 CRI report found that reliance on natural strategies for sequestering carbon dioxide won’t cut it if Virginia is to achieve net-zero emissions and keep to the aims laid out in Paris… “Colosi-Peterson’s group is focused on the feasibility of two such solutions: bioenergy with carbon capture and storage (BECCS) and direct air capture with carbon storage (DACCS). DACCS draws carbon dioxide directly out of the atmosphere and stores it underground in geologic formations. BECCS is an alternative energy solution that involves growing biomass feedstocks like switchgrass and corn, burning them as biofuels to make electricity, and intercepting their carbon dioxide emissions to store them underground… “Working from what they know about the resources available and how the technologies work, her team is estimating the costs for individual counties to deploy the technologies relative to the incentives the federal government offers to cover them… “The team will also estimate the total potential carbon dioxide removal if every county adopted the solutions where they’re found to be feasible. Once they finish processing the results, which they’re working on now, the researchers will share the information with local decision-makers.”

E&E News: Southern California air regulators decline to livestream refinery flares
Wes Venteicher, 4/8/24

“The South Coast Air Quality Management District in California on Friday shot down a proposal to livestream gas flares at local refineries and also rejected the stricter of two proposed air pollution standards,” E&E News reports. “Community and environmental groups had pushed for more stringent measures to try to hold refineries accountable for unplanned flares that have become more common in the last four years and to improve air quality in the Long Beach area. The air district’s staff concluded in a report that the $2 billion expense of meeting the stricter standard would not be cost effective, and they acceded to industry concerns that a livestream of the stacks could implicate federal cybersecurity laws governing chemical facilities. Refineries burn or “flare” gas that accumulates as part of the refining process, producing pollutants sulfur dioxide, nitrogen oxides and volatile organic compounds. The air district regulates a basin with the worst ozone pollution in the U.S. and is tasked with bringing the area into compliance with state and federal standards.”

EXTRACTION

Associated Press: Swiss women score a landmark climate win in a court decision that could ripple across Europe
MOLLY QUELL AND RAF CASERT, 4/9/24

“Europe’s highest human rights court ruled Tuesday that its member nations must protect their citizens from the consequences of climate change in a landmark ruling that sided with a group of 2,000 Swiss women against their government in a case that could have implications across the continent,” the Associated Press reports. “The European Court of Human Rights rejected two other, similar cases — a high-profile one brought by Portuguese young people and another by a French mayor that sought to force governments to reduce greenhouse gas emissions. But those plaintiffs rejoiced, nonetheless, since the Swiss case sets a legal precedent in the Council of Europe’s 46 member states against which future lawsuits will be judged. “The most important thing is that the court has said in the Swiss women’s case that governments must cut their emissions more to protect human rights,” 19-year-od Sofia Oliveira, one of the Portuguese plaintiffs, told AP. “So, their win is a win for us, too, and a win for everyone!” “…The court — which is unrelated to the European Union — faulted Switzerland for not giving sufficient protection to the Senior Women for Climate Protection, whose average age is 74 and who argued that older women are most vulnerable to the extreme heat that is becoming more frequent. The court said the country “had failed to comply with its duties” to combat climate change and meet emissions targets. That, the court ruled, constituted a violation of the women’s rights, noting that the European Convention on Human Rights guarantees people “effective protection by the state authorities from the serious adverse effects of climate change on their lives, health, well-being and quality of life.” “This is a turning point,” Corina Heri, an expert in climate change litigation at the University of Zurich, told AP.

Bloomberg: Suncor’s Syncrude Fined $287,000 Over Oil Sands Worker Death
Robert Tuttle, 4/8/24

“Suncor Energy Inc.’s majority-owned Syncrude Canada Ltd. unit was fined C$390,000 ($287,000) for an oil-sands mine worker’s death, one of a string of fatalities that prompted an investor revolt,” Bloomberg reports. “Syncrude, which is operated and 59% owned by Suncor, pleaded guilty to failing to ensure the safety of the worker, who drowned in 2021 when the excavator he was operating slumped into water and the cab became submerged. The death was one of multiple fatalities at Suncor-operated oil-sands mines in recent years, a safety record that was a central theme of activist Elliott Investment Management LP’s campaign to shake up management. The fine will be paid to the David and Joan Lynch School of Engineering Safety and Risk Management, the University of Alberta Geotechnical Centre and the Alberta Municipal Health and Safety Association and be used to develop an employer best-practice guide and field-ready mobile application.”

Journal of Commerce: Manitoba introduces carbon capture and storage legislation
4/9/24

“The Government of Manitoba is introducing legislation to reduce greenhouse gas emissions (GHG) through a framework for industry to work on underground carbon capture and storage projects,” the Journal of Commerce reports. “The proposed legislation would allow Manitoba to implement a licensing process for carbon capture and storage projects including comprehensive assessment of each project, a release said. “This is an important step forward in our work to make Manitoba a leader in the low-carbon economy. By working with industry to develop carbon capture and storage projects that would reduce emissions, we’re keeping Manitoba competitive while helping to reach our net-zero targets,” said Jamie Moses, minister of economic development, investment, trade and natural resources, in a statement. Businesses would also require an environment act license in addition to the carbon capture license, Moses added… “Federally-approved carbon capture and storage frameworks have been used in British Columbia, Alberta and Saskatchewan and carbon capture projects have operated safely since 2014, Moses said.”

Bloomberg: Gates-Backed Startup Makes Fuel From Water and Carbon Dioxide
Coco Liu, 4/8/24

“The economy of Corpus Christi, Texas, is largely built on fossil fuels. A stone’s throw away from major oil and gas fields, the port city is home to dozens of fossil fuel companies. It exports more crude oil every year than any other city in the US. But Corpus Christi’s future fortunes, at least in the eyes of one startup, will be made off a fuel derived from carbon dioxide,” Bloomberg reports. “If it can be scaled, that fuel could play a vital role in cleaning up the hardest-to-decarbonize portions of the transportation industry from aviation to heavy-duty trucking. Since its Corpus Christi facility came online in October, Sacramento, California-based Infinium has become one of the first e-fuel makers in the world to turn industrial-scale production from a concept into a reality. At its plant, electrolyzers break down water into hydrogen and oxygen, using electricity generated from nearby wind and solar farms. The hydrogen is then transported to a reactor, where it meets CO2 captured from local refineries, setting off a series of complex chemical reactions aided by patented catalysts. The result is a synthetic fuel with the same chemical properties as its fossil fuel-based cousins… “But not everyone agrees on e-fuel delivering on its promises, particularly when the technology uses CO2 captured at smokestacks. “It depends on how you count,” Pierpaolo Cazzola, a research fellow at Columbia University’s Center on Global Energy Policy, told Bloomberg. Compared to releasing CO2 from fossil fuel-burning factories into the atmosphere, it is more climate-friendly to capture the carbon and utilize it in e-fuel production, Cazzola told Bloomberg. But that gas is only stored temporarily, he adds. Once e-fuel is combusted, it releases CO2 just as traditional fuel does. “This is not CO2 neutral,” Cazzola told Bloomberg. “There would still be a net addition of carbon in the atmosphere.” Some regulators seem to agree with that thinking. The EU will phase out government subsidies for e-fuel made with fossil fuel-sourced CO2 by 2041.”

CLIMATE FINANCE

Bloomberg: Zurich Insurance to Halt Coverage of New Fossil-Fuel Exposures
Myriam Balezou and Gautam Naik, 4/8/24

“Zurich Insurance Group AG will no longer underwrite new oil and gas projects, and is cracking down on clients planning to expand in metallurgical coal mining,” Bloomberg reports. “The restrictions also entail asking the highest-emitting corporate customers to reduce their carbon footprints, the company told Bloomberg. Further details of the policy will be included in the insurer’s climate-transition plan, which will be announced later this year.”

Reuters: West Virginia treasurer adds four finance firms to ESG blacklist
Isla Binnie, 4/8/24

“West Virginia added four financial firms on Monday to a list of institutions that may be barred from some state business because the state’s treasurer deems they are boycotting the fossil fuel industry,” Reuters reports. “It was the latest move in a bubbling dispute between Republican officials and Wall Street firms over use of environmental, social and governance (ESG) factors in banking and business. West Virginia, a major energy-producing state, created the list in 2002, placing five firms on it at the time. On Monday state Treasurer Riley Moore, said that Citigroup, HSBC Holdings, TD Bank and the Northern Trust Co had been added to the list. Moore’s office says the list is for firms that “have publicly stated they will refuse, terminate or limit doing business with coal, oil or natural gas companies without a reasonable business purpose.” “…Financial firms also face pressure from the other side of the ESG debate, with environmental activists and investors pushing them to stop financing new projects in areas like oil and gas.”

E&E News: Republicans set another hearing on SEC climate rule
Emma Dumain, 4/8/24

“The Securities and Exchange Commission has hit the pause button on implementing its controversial climate disclosure rule amid myriad legal challenges, but congressional Republicans are still intent on targeting the regulation,” E&E News reports. “The GOP-led House Financial Services Committee on Wednesday will hold a hearing titled, “Beyond Scope: How the SEC’s Climate Rule Threatens American Markets.” It was scheduled prior to the announcement last Thursday that the SEC would delay putting the rule into place, despite expressing confidence that requiring public companies to reveal their climate risks would ultimately withstand scrutiny. There are currently lawsuits being brought against the Wall Street regulator by nearly every Republican-controlled state and a slew of fossil fuel interests. But Rep. Bill Huizenga (R-Mich.), chair of the Subcommittee on Oversight and Investigations, who was tasked last year with leading a working group to coordinate the GOP response to cracking down on the practice of environmental, social and governance investing, told Bloomberg TV that the hearing was still on.”

OPINION

Petoskey News-Review: Oil and water don’t mix
Jeff Smith, 4/8/24

“As a resident of northern Michigan, I strongly believe oil pipelines don’t belong in the Great Lakes, which supply drinking water for half of all Michiganders, power our economy, and provide endless beauty and recreation. That’s why we must shut down Enbridge’s Line 5 in the Mackinac Straits and stop the proposed tunnel,” Jeff Smith writes for the Petoskey News-Review. “Built to last 50 years, Line 5 is a 70-year-old pipeline that has failed at least 35 times, spilling more than 1.1 million gallons of oil. Enbridge also owns the pipeline that dumped more than one million gallons of oil into Michigan’s Kalamazoo River in 2010. Michigan has alternatives to Line 5 for oil and propane without digging a dangerous tunnel under the Straits or suffering supply shortages or price spikes. President Biden should revoke the presidential permit allowing Enbridge to operate Line 5 and order the Justice Department to intervene on Michigan’s behalf in ongoing lawsuits between Michigan and Enbridge. To learn about strategic actions you can take to shut down Line 5 and stop the tunnel visit GroundworkCenter.org and OilandWaterDontMix.org.”