EXTRACTED: Daily News Clips 5/26/23

(Note to Readers: The next edition of “Extracted” will be published on Tuesday, May 30, following the Memorial Day holiday.)

PIPELINE NEWS

• KXNET: Group of experts discuss the dangers of CO2 pipelines in North Dakota

• Iowa Capital Dispatch: Environmental groups seek Biden moratorium on carbon dioxide pipelines

• Press release: Experts Call For Moratorium On CO2 Pipeline Permitting, As Controversial Proposals Advance

• South Dakota Public Broadcasting: Carbon capture pipeline companies flex financial power

• Mitchell Republic: Another South Dakota ethanol plant signs on to Summit Carbon pipeline

• Cedar Rapids Gazette: What they’re thinking: Smart Carbon Network says it wants to cut through emotion of CO2 pipelines

• Common Dreams: Citing ‘Imminent Danger,’ Indigenous Women Demand Biden Shut Down Line 5 Pipeline

• Law360: Enbridge Allies Can’t Add Old Econ Evidence In Pipeline Row

• Houston Chronicle: Texas billionaire, GOP megadonor Kelcy Warren squares off against Biden over LNG terminal

• Press release: Spire to acquire MoGas and Omega pipeline systems

WASHINGTON UPDATES

• Washington Post: A permitting deal with small wins for both parties is emerging in debt limit talks

• Washington Post: Lawmakers near deal on energy permitting in debt ceiling talks

• The Hill: Jeffries warns: House Democrats won’t rubber stamp debt ceiling deal 

• E&E News: Supreme Court sides with Sacketts to narrow Clean Water Act

• NPR: The Supreme Court has narrowed the scope of the Clean Water Act

STATE UPDATES

• Press release: Houston Emerging as Leading Hub for Carbon Capture Advancements

• Colorado Sun: Colorado is now a national model for clean hydrogen fuel. But what does that mean?

EXTRACTION

• Reuters: Alberta wildfires ease, and Canada natgas exports recover

• The Squamish Chief: Report says it has debunked claims B.C. gas will be a ‘bridge fuel’

• Reuters: Canadian oil sands output expected to reach 3.7 mln bpd by 2030 – S&P Global

• Press release: S&P global commodity insights raises 10-year production outlook for Canadian oil sands for first time in more than half decade

• Resources Radio: Energy Transition in Canada’s Oil Sands, with Andrew Leach

• Climate Change News: UN advises against offsets for carbon removal technologies

• Offshore Energy: Carbon capture seen as ‘key tool’ in fight against greenhouse gas emissions

• Axios: “Clean” energy spending is outpacing fossil fuels

OPINION

• WRAL: MIKE WOODARD: Carbon capture initiatives are key to achieving climate goals

• SCOTUSblog: Supreme Court curtails Clean Water Act
  

PIPELINE NEWS

KXNET: Group of experts discuss the dangers of CO2 pipelines in North Dakota
Christina Randall, 5/25/23

“Health and Environment experts discussed the specific dangers of having a CO2 pipeline near large communities,” KXNET reports. “If you are caught outside, that’s not going to be a good situation, and those folks are going to have to be rescued very quickly, depending on the concentration that they are overcome with,” said Curtis Jundt, a former natural gas engineer. According to Jundt and other health experts, we breathe about .03 to .05 percent of CO2 in the air. If a burst or rupture would happen to a CO2 pipeline, the air could be filled with carbon dioxide, which would not be good for us. But that also depends on how concentrated the CO2 is. “If that CO2 at a concentration of 7 or 8 %, you don’t have a lot of time. We are talking about minutes before you will be essentially asphyxiate. If the concentration is 10%, you are pretty much not going to be able to recover from that,” said Jundt. Unfortunately, asphyxiation isn’t the only thing CO2 can do to the human body. “Elevated levels of CO2 in the blood causes the blood to acidify, which then leads to a range of health effects that are completely apart from oxygen deprivation,” said Ted Schettler, MD, MPH, Science Director of the Science and Environmental Health Network. According to health experts, 4% concentration of CO2 is immediately dangerous. “That’s because at that level, it begins to cause confusion, and because it’s not visible and has no odor, people often don’t recognize that they are in a dangerous environment and cannot take safety measures and go to an area where CO2 is no longer dangerous to their health,” said Dr. Schettler. Also, CO2 is heavier than most gases, which means it moves along the ground, where people and animals breathe. “An accidental release of CO2 from a pipeline will hug the ground and threaten the life of anyone in its path,” said Dr. Schettler… “And when water interacts with CO2 in a pipeline, it lowers the stability of the pipeline, creating carbonic acid. “Carbonic acid is extremely corrosive to pipes. Right now, from these natural sources, there is not a lot of water in CO2, but when we look at capturing CO2 from power plants and things like that, there will be more water and other impurities that poses both public health risks and pipeline integrity risks,” said Bill Caram, Pipeline Safety Trust Executive Director.”

Iowa Capital Dispatch: Environmental groups seek Biden moratorium on carbon dioxide pipelines
JARED STRONG, 5/25/23

“President Joe Biden should prevent the construction of new carbon dioxide pipelines until changes to federal rules are adopted to increase their safety, opponents of the projects said Thursday,” the Iowa Capital Dispatch reports. “The call for an executive order to stall the projects comes as federal regulators consider changes to pipeline requirements and are set to hold a two-day meeting in Des Moines next week to discuss their safety and gain public feedback. Biden has little say over whether Iowa regulators issue hazardous liquid pipeline permits to the three companies who currently seek them. Approval from the federal Pipeline and Hazardous Materials Safety Administration, which regulates the pipelines from a safety perspective, is not required by Iowa Utilities Board’s permit process, Don Tormey, an IUB spokesperson, told the Dispatch. However, pipeline opponents said Biden could potentially block their construction on federal lands and across certain waterways. “President Biden has the power to put a halt to the carbon capture scam by issuing an executive order and directing federal agencies to restrict permits for projects until regulatory safeguards are in place,” said Jim Walsh, policy director for Food & Water Watch. That group and others have for months sought to halt the state permitting processes while PHMSA considers changes to its safety requirements in light of a carbon dioxide pipeline rupture in Mississippi that sickened 45 people in 2020… “There’s no requirement to add an odorant into the pipeline so that the public could know that there is a dangerous level of CO2 that could be asphyxiating them,” said Bill Caram, executive director of the Pipeline Safety Trust. “We need better regulations to identify the communities that could be impacted in the case of a pipeline failure. Notably, Satartia was not identified by the operator Denbury as being potentially impacted by the failure.”

Press release: Experts Call For Moratorium On CO2 Pipeline Permitting, As Controversial Proposals Advance
5/25/23

“Today, at a briefing on CO2 pipeline safety, national experts called for a moratorium on hazardous carbon pipeline permitting, citing serious medical, public health and safety risks of the pipeline buildout required to meet the Biden Administration’s embrace of carbon capture technology. Just this month, Biden’s EPA launched a power plant emissions reductions plan that relies heavily on carbon capture. “The Biden Administration’s foolhardy embrace of carbon capture is prompting a pipeline feeding frenzy that would endanger thousands of Americans. Carbon pipelines are a known threat to public health and safety. We can’t go down this road,” said Food & Water Watch Policy Director Jim Walsh. “The Biden Administration must enact a moratorium on carbon pipeline permitting until robust federal safety regulations have been finalized.” The Pipeline and Hazardous Materials Safety Administration (PHMSA) is currently revising federal carbon pipeline safety regulations after a 2020 rupture in Satartia, Mississippi evacuated a town and sent 49 people to the hospital. At the request of an alliance of 30 groups representing Indigenous communities, landowners, sustainable agriculture, public health, and climate organizations, the agency will hold a public meeting in Des Moines May 31-June 1 on CO2 pipeline safety. Three controversial carbon pipeline networks proposed by Summit Carbon Solutions, Navigator CO2 and Wolf Carbon Solutions are advancing in the Midwest, absent revised safety guidelines. If built, the hazardous pipelines would cross more than 3,600 miles of the Midwest — more than half the mileage of all existing carbon pipelines nationwide. “CO2 is a colorless, odorless gas that is immediately dangerous to life and health at just 4% concentration in the air that we breathe,” said Ted Schettler MD, MPH, Science Director of the Science and Environmental Health Network. “An accidental release of CO2 from a pipeline will hug the ground and threaten the life of anyone in its path. These pipelines should not be permitted without strong federal, state and local safety and setback regulations in place.” “The pipeline industry claims that CO2 pipelines are as safe or safer than oil and gas pipelines, but the data suggests that some CO2 pipeline companies under-report their accidents,” said Paul Blackburn, an attorney with the Bold Alliance. “After all, when a CO2 pipeline leaks, the CO2 and most of the evidence of an accident simply evaporates. Even assuming the industry’s self-reported data is correct, it shows that the barrels of CO2 spilled per mile of pipeline in operation have increased dramatically from about three barrels per mile to about 64 barrels per mile. This is due in part to a corresponding increase in the number of accidents per mile. The safety trends are in the wrong direction.”

South Dakota Public Broadcasting: Carbon capture pipeline companies flex financial power
Evan Walton, 5/25/23

“Summit Carbon Solutions says it has easement agreements with more than half of the landowners along the South Dakota route. However, Summit has filed more than 80 condemnation lawsuits against those who’ve turned down the company’s offer – and the number of lawsuits continues to rise,” South Dakota Public Broadcasting reports. “Brad Fischbach, a landowner who helps run Fischbach Farms, is being sued by Summit. He told SDPB Summit’s planned pipeline route will disrupt a number of their farm operations. “What Summit is trying to do is cross two of our quarters of ground, coming right through our feedlot where we calf and run our cow calf pairs. I also run a repair shop and have employees and it is literally right outside of our shop here,” Fischbach told SDPB. Fischbach told SDPB he fears for the safety of his family and his employees in the event of a break in the pipeline. But more importantly, if Summit wins its lawsuit, Fischbach said it could limit the future of his operation… “The lawsuits extend to nine counties across the state including Beadle, Brown, Codington, Edmunds, Hand, Kingsbury, Lake, McPherson and Spink counties. Sabrina Zenor, director of community relations for Summit Carbon Solutions, spoke recently at a meeting of the Downtown Sioux Falls Rotatory Club. Zenor said the lawsuits are simply the next step in gaining easement rights for the proposed pipeline. “Some landowners have decided to stop working with us and we have to continue the process,” Zenor said. “If those landowners want to come back to the table, we are here. If you know any of those landowners and they want to come back to the table, I have my card, I will share it with you. We want voluntary easements. That is our goal.” However, some people say there’s a different goal. Jeff Barth, a former Minnehaha County Commissioner also spoke at the Rotatory meeting and described what he calls intimidation tactics used by pipeline representatives. Barth said while visiting with a landowner he heard a company representative make an offer for easement rights. “And that’s what’s going on here. Teams of attorneys, teams of lobbyist, teams of agents coming out and putting the pressure on people,” said Barth.    

Mitchell Republic: Another South Dakota ethanol plant signs on to Summit Carbon pipeline
Jeff Beach, 5/25/23

“Another ethanol plant in South Dakota has signed on to the Summit Carbon Solutions carbon capture pipeline project,” the Mitchell Republic reports. “Summit announced on Thursday, May 25, that NuGen Energy in southeast South Dakota has joined 32 ethanol plants in five states on the project. NuGen Energy began operations in 2008 and has a production capacity of 150 million gallons per year, Summit said in a news release… “There are seven other existing ethanol plants in South Dakota signed on to the 2,000-mile project that intends to transport liquid carbon dioxide to an underground storage area in North Dakota… “The Gevo and NuGen plants are not included in Summit’s pipeline route application that is pending with the South Dakota Public Utilities Commission. John Satterfield, Summit’s director of regulatory affairs, told the Republic separate applications will be filed for the additional plants. Summit says it has commitments for just over half of the pipeline’s planned CO2 capacity. “We’re talking with people every day,” Satterfield said of other potential partners. The project has faced some opposition from some county officials, landowners and residents along the route, with concerns about safety, property values, and damage to farmland and drain tile. Opponents also have been vocal that eminent domain should not be used to allow carbon pipeline companies to obtain easements.”

Cedar Rapids Gazette: What they’re thinking: Smart Carbon Network says it wants to cut through emotion of CO2 pipelines
Erin Jordan, 5/26/23

“Tensions over carbon dioxide capture pipelines continue to rise in Iowa as regulators prepare to hold hearings in the fall over the first of three projects to seek a permit,” the Cedar Rapids Gazette reports. “Smart Carbon Network, a new not-for-profit organization, wants to “take away some of the noise” and talk about how Iowa could benefit financially from projects that would capture CO2 from ethanol plants and use it for industrial purposes or store it underground in other states. “It’s so emotional,” Joe Heinrich, a Maquoketa farmer and executive director of the group, told the Gazette about the pipeline debate in Iowa. “If you take all the noise away, this is going to change the landscape of Iowa not just for farmers, but the rural communities.” Could you describe the mission of the Smart Carbon Network? A: “We want to make sure we’re getting good information out to the communities and the consumers. Make sure we’re talking about responsible carbon capture and sustainable carbon use. We’re not a lobbying coalition.” Q: People will want to know who’s behind the network. Can you speak to how the organization is supported financially? A: “I don’t really want to get into how it’s financially supported. It’s supported by our members. We have members willing to put dues into it that pays for the education we’re doing. It was industry, it was agriculture, it was academia.” The group has a three-person board of directors, it says on its website: Charles McConnell, executive director of the Center for Carbon Management in Energy at the University of Houston; Elizabeth Worrell, managing director and general counsel for the Pipe Line Contractors Association, based in Arlington, Va.; and Steve Wellman, farmer and former director of the Nebraska Department of Agriculture… “We’re trying to get the message out via interviews and op-eds, things like that. We’ll be trying to contact different community members. I will try to work one-on-one as much as I can. We also have a plan of action with advertising and media. We want to be a go-to place if people have questions about carbon management, carbon use and carbon storage.” “..’What’s your position on eminent domain for pipeline projects? A: “That’s not a realm we’re going to get into. My hope, as a landowner and neighbor, is that these companies will come in and do everything they can so they don’t have to use eminent domain at all. It doesn’t make any friends; it’s not a pleasant thing.”

Common Dreams: Citing ‘Imminent Danger,’ Indigenous Women Demand Biden Shut Down Line 5 Pipeline
BRETT WILKINS, 5/25/23

“Native American women leaders and more than 150 allied advocacy groups from across the United States on Thursday implored the Biden administration to decommission a Canadian-owned oil and gas pipeline that, according to one group, has spilled more than a million gallons of fossil fuels in over 30 incidents during the past 55 years,” Common Dreams reports. “In a letter to President Joe Biden, Environmental Protection Agency (EPA) Administrator Michael Regan, and other administration officials, leaders of the Indigenous Women’s Treaty Alliance—which is facilitated by the Women’s Earth and Climate Action Network (WECAN)—called on the president to “immediately revoke the presidential permit for Canada’s deteriorating Enbridge Line 5 pipeline before environmental calamity strikes with oil spills into the Great Lakes.” “We write to you as Indigenous grandmothers, mothers, aunties, daughters, sisters, and relatives. We are of the Great Lakes, where our sacred food manoomin (wild rice) grows on water,” the letter states. “We hold a responsibility to protect our water, our ecosystems, and our cultural lifeways for the next seven generations.” “…Revoking the presidential permit and forcing Enbridge to cease Line 5’s operations is consistent with your administration’s directives for climate, nation-to-nation relations, and environmental justice. It is also consistent with the knowledge we share that the Great Lakes—one-fifth of the world’s surface freshwater at a time of growing water scarcity—are invaluable treasures that must be protected, regardless of political pressures, special interests, and short-term profits,” the new letter argues… “Aurora Conley of the Bad River Ojibwe and Anishinaabe Environmental Protection Alliance said: “I am calling on the Biden administration to shut down Line 5 immediately. Our territories and water are in imminent danger, and we do not want to see irreversible damage to our land, water, and wild rice. We do not want our lifeways destroyed. The Ojibwe people are here in Bad River because of the wild rice. A rupture from this oil spill will irreversibly harm the Great Lakes and wild rice beds. This is unacceptable. We will not stand for this. Shut down Line 5 now.”

Law360: Enbridge Allies Can’t Add Old Econ Evidence In Pipeline Row
Crystal Owens, 5/25/23

“Oil and gas companies and industry groups siding with Enbridge Inc. can’t submit declarations about the potential impact of a pipeline shutdown unless they’re saying something that wasn’t already offered by past experts in a fight over whether the energy giant must move its Line 5 pipeline off a reservation in northern Wisconsin, a federal judge ruled,” Law360 reports. 

Houston Chronicle: Texas billionaire, GOP megadonor Kelcy Warren squares off against Biden over LNG terminal
James Osborne, 5/25/23

“Texas billionaire and GOP megadonor Kelcy Warren is at odds with President Joe Biden, whose administration has blocked his plans to build a LNG terminal on the Louisiana Gulf Coast,” the Houston Chronicle reports. “Dallas-based pipeline giant Energy Transfer, which Warren founded in the mid 1990s, is accusing the Department of Energy of playing politics in its decision last month to deny the project a three-year extension on a crucial export permit. The company this week filed an appeal with the department, claiming it was getting close to beginning construction and the decision to deny the permit had already cost it a customer. That followed an earnings call earlier this month in which Energy Transfer CFO Tom Long called the ruling a “arbitrary and capricious political decision.” “A lot of the adjectives and things we said, I can’t say on this call,” he said. “At the end of the day, it was wrong and it was political.” The clash over the LNG project pits Biden, a Democratic president committed to addressing climate change, against Warren, one of the Republican Party’s largest donors… “At the same time, the administration has been authorizing oil and natural gas export projects at a fast clip, including LNG projects in Louisiana and Alaska, and the country’s largest oil export terminal off the coast of Texas… “Within the wider LNG sector, the decision to deny Energy Transfer’s extension has drawn concern that the administration is now only granting extensions to developers that already have begun constriction.”

Press release: Spire to acquire MoGas and Omega pipeline systems
5/25/23

“Spire Inc. (NYSE: SR) today announced it has entered into an agreement to acquire MoGas Pipeline (MoGas), an interstate natural gas pipeline, and Omega Pipeline (Omega), a connected gas distribution system, from CorEnergy Infrastructure Trust, Inc. (NYSE: CORR), for $175 million, subject to customary working capital and other closing adjustments. The transaction is expected to close in Spire’s fiscal fourth quarter, pending Hart-Scott-Rodino review and subject to customary closing conditions. MoGas owns and operates approximately 263 miles of interstate natural gas pipelines, primarily in Missouri, and is regulated by the Federal Energy Regulatory Commission. MoGas interconnects with Spire STL Pipeline and other regional pipelines to deliver gas to Spire Missouri’s growing customer base in St. Charles, Franklin, and western St. Louis counties, among other utility, municipal, industrial, and commercial customers. Omega owns and operates an approximately 75-mile natural gas distribution system within Fort Leonard Wood in south-central Missouri and is interconnected with the MoGas system.”

WASHINGTON UPDATES

Washington Post: A permitting deal with small wins for both parties is emerging in debt limit talks
Maxine Joselow, 5/26/23

“Lawmakers are nearing a modest deal on modifying the nation’s permitting process for energy projects as part of legislation to raise the debt ceiling, two people close to the deliberations tell the Washington Post. “The emerging deal would make incremental progress on both parties’ top permitting priorities, the two individuals, who spoke on the condition of anonymity to describe the private negotiations, told the Post. It would seek to spur the construction of interstate transmission lines, a key Democratic demand, while modernizing the 1970 National Environmental Policy Act, a longtime Republican goal. But it’s unclear whether this agreement could garner enough support from House Democrats, who have championed more ambitious transmission proposals and who largely oppose changes to NEPA… “A person familiar with the matter told the Post that while including the Big Wires Act would be a positive step, it would probably not satisfy transmission developers, who have told Democrats that giving FERC more authority would address the significant delays they’re experiencing. The person spoke on the condition of anonymity because they were not authorized to comment publicly… “Still, the more modest transmission proposal could help get more Republicans on board… “The emerging permitting deal would also make some changes to NEPA, which requires the federal government to analyze the environmental impact of its proposed actions, the two people told the Post. The two individuals declined to elaborate on these changes. But Rep. Garret Graves (La.), a top GOP negotiator, has championed legislation that would set two-year deadlines for environmental reviews for major projects. “

Washington Post: Lawmakers near deal on energy permitting in debt ceiling talks
Maxine Joselow and Marianna Sotomayor, 5/25/23

“Lawmakers are nearing a modest deal on overhauling the nation’s permitting process for energy projects as part of legislation to raise the debt ceiling and avert an unprecedented default, two people close to the deliberations told the Washington Post. “The emerging deal would ease the process of building the interstate transmission lines needed to carry clean electricity across the country — a top priority for Democrats and a boon for President Biden’s climate agenda, said the two individuals, who spoke on the condition of anonymity to describe the private negotiations. To sweeten the deal for Republicans, the agreement would make modest changes to the National Environmental Policy Act, a 1970 law that requires the federal government to analyze the environmental impact of its proposed actions. GOP lawmakers have long blamed the bedrock environmental law for the years-long delays that plague new highways, pipelines and other infrastructure projects nationwide. The people close to the talks cautioned that lawmakers have not agreed to any final deal on energy permitting and that the contours of the emerging agreement could change in the fast-moving discussions. The transmission proposal would be based on forthcoming legislation from Rep. Scott Peters (D-Calif.) and Sen. John Hickenlooper (D-Colo.) known as the Building Integrated Grids With Inter-Regional Energy Supply (Big Wires) Act… “But the emerging deal would include only incremental changes sought by Graves and other Republicans, who have championed the expansion of pipelines and other fossil fuel projects.”

Washington Post: White House, GOP appear closer to deal to avert debt ceiling crisis
Rachel Siegel, Jeff Stein, Paul Kane and Leigh Ann Caldwell, 5/25/23

“White House aides and House Republican leaders were moving closer to a deal Thursday evening aimed at resolving the debt ceiling standoff just days before the U.S. government could run out of money, as key compromises on both sides seemed likely to pave the way for a bipartisan agreement,” the Washington Post reports. “Facing mounting pressure ahead of a potential June 1 deadline, negotiators are zeroing in on a deal to raise the debt ceiling for two years — through the 2024 presidential election — in exchange for two years of new spending limits mostly focused on domestic government programs, three people familiar with the matter told the Post, speaking on the condition of anonymity to reflect the private talks. Buoying the optimism around an emerging agreement, the Biden administration agreed to long-standing GOP demands to pare back some of the $80 billion in new funding Congress approved last year for the Internal Revenue Service, the people told the Post. The administration agreed to the GOP demands so officials could redirect as much as $10 billion from the IRS to shield other domestic programs from the steep cuts sought by Republicans… “Negotiators have not resolved whether or how to approve new energy permitting reform or new work requirements for federal aid programs, the two people familiar with the matter told the post… “Other Democrats are continuing to worry about what an eventual deal might involve. In a Wednesday news conference held by the Congressional Progressive Caucus, its chair, Rep. Pramila Jayapal (D-Wash.), said she was concerned Biden would end up making concessions that she would not agree with.”

The Hill: Jeffries warns: House Democrats won’t rubber stamp debt ceiling deal 
MIKE LILLIS, 5/25/23

“House Minority Leader Hakeem Jeffries (D-N.Y.) warned Thursday that members of his Democratic Caucus will not automatically back a debt ceiling deal cut between President Biden and Speaker Kevin McCarthy (R-Calif.),” The Hill reports. “Asked if GOP leaders have miscalculated in assuming that House Democrats will help Republicans pass a Biden-backed bill through the lower chamber, Jeffries didn’t hesitate.  “Yes,” he told reporters. “It’s a miscalculation to assume that simply any agreement that House Republicans are able to reach will, by definition, trigger a sufficient number of Democratic votes — if that agreement undermines our values.”  It’s highly unlikely that the White House and Democratic leaders in Congress would be in disagreement over a final debt limit agreement, since Jeffries — while not directly involved in the talks — has been updated regularly on the developments. Still, Jeffries’s remarks send a clear signal that House Democrats should not be considered a rubber stamp for a compromise bill if they deem it to violate core party principles, particularly their efforts to protect vulnerable populations from huge cuts to social benefit programs. “We’re not going to take a deal that hurts working people,” Rep. Pramila Jayapal (D-Wash.), head of the Congressional Progressive Caucus, said Wednesday. The threat to withhold Democratic support has real teeth, because McCarthy, after rallying Republicans behind a debt ceiling package last month, is expected to lose scores of conservative votes on a final deal with Biden, which will necessarily be more moderate than the partisan GOP bill… “That means the minority House Democrats will have to step in to fill the void, get the package over the 218-vote threshold and send it on to the Senate, where a similar bipartisan coalition will also be needed to approve the legislation. While the sides appear to be inching closer to a deal, a number of outstanding issues remain, including disagreements surrounding work requirements for benefit programs, permitting reforms to expedite energy projects, and levels of federal spending for 2024 and beyond… “Liberals, however, are warning that they can’t back any final agreement with provisions that would hurt their constituents, including cuts in social programs and tougher work requirements for food stamps and other low-income benefits.”

E&E News: Supreme Court sides with Sacketts to narrow Clean Water Act
Pamela King, 5/25/23

“The Supreme Court on Thursday handed Chantell and Michael Sackett a win in their long-running legal battle to build their dream home near the shore of an Idaho lake — and in doing so, narrowed the reach of federal clean water protections,” E&E News reports. “In a unanimous ruling in which the justices were divided on their reasoning, the court found that EPA and the Army Corps of Engineers wrongfully claimed oversight of the wetland on the Sacketts’ property — located about 300 feet from Idaho’s Priest Lake — and that federal courts had erred in affirming the agencies’ jurisdiction. The Supreme Court’s decision in Sackett v. EPA is a huge victory for housing developers, farmers and the energy industry. The ruling could complicate the Biden administration’s legal defense of its new definition of which wetlands and streams qualify as “waters of the U.S.,” or WOTUS, subject to Clean Water Act permitting.”

NPR: The Supreme Court has narrowed the scope of the Clean Water Act
5/25/23

“The U.S. Supreme Court placed new restrictions on the scope of the jurisdiction the Clean Water Act has over wetlands, ruling in favor of Idaho landowners who had challenged the law,” NPR reports. “The court was unanimous in finding that the land owned by the Idaho family was not subject to the Clean Water Act, but split 5-4 on the court’s new test, which held that only wetlands that have a continuous surface connection to a body of water are covered by the law. Conservative Justice Brett Kavanaugh sided with the court’s three liberals. He wrote the “courts new test will leave some long-regulated adjacent wetlands no longer covered by the Clean Water Act, with significant repercussions for water quality and flood control throughout the United States.”

STATE UPDATES

Press release: Houston Emerging as Leading Hub for Carbon Capture Advancements
5/25/23

“Houston is reaffirming its global leadership in the energy transition as two major carbon capture and storage technology companies expand their presence in the region. Carbon Clean, a UK-based startup specializing in carbon capture technology, recently selected Houston as the location for its U.S. headquarters, marking a significant milestone in the company’s North American expansion. This decision comes in the wake of the U.S. Inflation Reduction Act, which has driven up demand for industrial carbon capture technology. As a result, Carbon Clean says it has experienced a  64 percent increase in U.S. inquiries since August 2022. Aniruddha Sharma, Chairman and CEO of Carbon Clean, said he recognizes the favorable conditions created by the IRA, making the U.S. one of the best places in the world to develop industrial carbon capture projects. With over four years of active presence in the U.S., Carbon Clean foresees the country becoming its largest market. In response to this growing demand for its CycloneCC technology, the company has announced its intention to double its U.S. workforce. In addition to Carbon Clean’s expansion, Drax, a renewable energy company, has also chosen Houston as the location for its North American headquarters focused on attracting more Bioenergy with Carbon Capture and Storage (BECCS) projects to the U.S. and Canada. This strategic move positions Drax at the forefront of the sustainable bioenergy revolution combined with carbon capture and storage. 

Colorado Sun: Colorado is now a national model for clean hydrogen fuel. But what does that mean?
Michael Booth, 5/25/23

“National and local clean energy advocates are hailing Colorado as a leader in the quest to produce clean hydrogen fuel as another alternative to dirty fossil fuels. Their prime evidence is a law just signed by Gov. Polis that defines clean hydrogen and reserves public tax credits and PUC approval to truly green projects,” the Colorado Sun reports. “…If hydrogen isn’t produced cleanly, or used to replace “dirty” fuel sources in hard-to-decarbonize industries like cement production, it’s not doing much good from a global warming perspective. If you produce hydrogen with electricity produced from coal or natural gas, you’re playing for the tie… “We definitely see huge opportunities around hydrogen if it’s done right. But there’s also huge risks around it” when done wrong, Pete Budden, hydrogen advocate for the Natural Resources Defense Council, told the Sun. “It just has to be really targeted, where you use it and how you make it.” The bill also instructs the Public Utilities Commission to set up a process to review hydrogen projects proposed by investor-owned utilities like Xcel Energy. The PUC will have to review how new projects are paid for, whether costs are charged to consumer ratepayers or to company shareholders.  Such utilities would also have to report to the PUC what a hydrogen project’s impact might be on disproportionately impacted communities, who have already suffered the consequences of utility and industrial pollution throughout Colorado history. And the utilities would have to keep reporting about greenhouse gas savings and other aspects of their projects. The language in the bill is already seen as a national model for other state regulators to follow, the NRDC and other groups say.”

EXTRACTION

Reuters: Alberta wildfires ease, and Canada natgas exports recover
5/24/23

“Firefighters have made “significant progress” in tackling wildfires in Alberta thanks to rain and cooler temperatures, provincial government officials said on Wednesday, as Canadian natural gas exports to the U.S. rebounded after nearly three weeks of lower flows,” Reuters reports. “Many oil and gas companies that shut in production as a precaution have restarted operations or are preparing to do so. At their height the fires shuttered at least 319,000 barrels of oil equivalent per day, or 3.7% of national production, and forced around 30,000 Albertans to evacuate their homes… “The easing wildfires mean producers are preparing to restart any oil and gas facilities that are still shuttered, Tristan Goodman, CEO of the Explorers and Producers Association of Canada, told Reuters… “Canadian natural gas exports to the U.S. this week returned to levels seen before the wildfires, causing U.S. gas futures to plunge about 10%. Canada supplies about 8% of the gas consumed in, or exported from, the U.S. Last week, U.S. gas prices jumped about 14% due in part to the reduction in supplies from Canada.”

The Squamish Chief: Report says it has debunked claims B.C. gas will be a ‘bridge fuel’
Stefan Labbé, 5/25/23

“Two years before LNG Canada — the country’s largest liquefied natural gas plant — comes online, a new report is warning the fossil gas will not act as the “bridge fuel” to wean the world off coal as proponents make it out to be,” The Squamish Chief reports. “The study, commissioned by the David Suzuki Foundation and released Thursday, draws on peer-reviewed research and work done by the International Energy Agency to find the export of gas from B.C. will make the climate crisis worse, not better. Instead of a “bridge fuel” to wean other countries off coal and oil, the export of B.C. LNG will be “too little, too late” and a “bridge too close,” according to Daniel Horen Greenford, the report’s author and a postdoctoral fellow at Concordia University researching climate policy. “Government, the public has been told by industry quite a bit of the merits of gas,” Horen Greenford told SC. “This kind of narrative is something that may have been more true 10 to 20 years ago. But at this point, there’s just not a plausible or credible place for gas as a bridge fuel. The conversation needs to catch up with the science.” The argument gas should be used as a bridge to decarbonizing the economy is based on three claims, Horen Greenford says: first, that gas is less carbon-intensive than coal or oil; second, that exports of B.C. gas will displace those fuels overseas; and third, that renewable energy like wind and solar are not affordable enough to deploy at a scale, the report says. None of those claims, according to Horen Greenford’s analysis, are accurate. In an email, a spokesperson for LNG Canada said the facility would play a leading role displacing coal-fired power plants with “responsibly-sourced, low-GHG LNG.” The statement said the emissions produced by Canada’s Kitimat operation will be more than a third lower than the world’s best performing facilities.”

Reuters: Canadian oil sands output expected to reach 3.7 mln bpd by 2030 – S&P Global
5/25/23

“Canadian oil sands production is expected to reach 3.7 million barrels per day by 2030, S&P Global said on Thursday, raising the analytics firm’s 2030 production outlook for the country for the first time in half a decade,” Reuters reports. “S&P Global raised its output estimate for 2030 by 140,000 barrels per day from last year’s outlook. “The Canadian oil sands have entered an ‘era of optimization’,” Kevin Birn of S&P Global Commodity Insights, told Reuters, adding that moving production to high-potential areas adjacent to existing development is the most significant contributor to output growth. Canada is expected to continue to post record production and export levels in the future, according to S&P Global. However, growth is expected to slow in the mid-2020s and decline in the early 2030s. This is due to the long flat production profile of Canadian oil sands assets.

Press release: S&P global commodity insights raises 10-year production outlook for Canadian oil sands for first time in more than half decade
5/25/23

“Higher crude prices and continued optimization improvements have driven the first upward revision to the S&P Global Commodity Insights 10-year oil sands production outlook in more than half a decade. The new forecast, produced by the S&P Global Commodity Insights Oil Sands Dialogue, expects Canadian oil sands production to reach 3.7 million barrels per day (mbd) by 2030—half a million barrels per day higher than today. The new projection represents an increase of 140,000 b/d in 2030 from the previous outlook. “Higher oil prices have driven record returns for the Canadian oil sands,” said Celina Hwang, Director, North American Crude Oil Markets, S&P Global Commodity Insights. “Although producers continue to demonstrate capital discipline, stronger balance sheets are now giving oil sands companies renewed confidence in regard to their intentions for capital spending.” The main driver of the upward revision has been the identification of additional opportunities to improve efficiency and/or optimize output, the analysis says. The ongoing ramp-up and operational efficiency gains from learning by doing and step-out optimization projects are the most significant contributors. Step-out optimizations are a relatively new phenomenon and include, as the name suggests, stepping out from existing operational areas into new high quality adjacent lands. Capital expenditures for oil sands production in 2022 reached their highest levels since 2015 and could rise further this year. However, most of that increase occurred to offset increased inflation and there has not been a resurgence in large-scale greenfield or even brownfield oil sands projects, the analysis says.”

Resources Radio: Energy Transition in Canada’s Oil Sands, with Andrew Leach
DANIEL RAIMI, 5/21/23

“In this week’s episode, host Daniel Raimi talks with Andrew Leach, a professor at the University of Alberta, about the oil and gas industry in Alberta, Canada,” Resources Radio reports. “Leach discusses how oil and gas are extracted in Alberta’s oil sands region, the environmental liabilities that result from this type of extraction, tensions between provincial and national leaders over environmental policies and emissions-reduction goals, how First Nations participate in the decisionmaking related to energy development, the energy transition, and more.”

Climate Change News: UN advises against offsets for carbon removal technologies
Matteo Civillini, 5/25/23

“The United Nations climate body has cast doubt over technologies that aim to suck carbon pollution from the atmosphere, calling them “unproven” and potentially risky,” Climate Change News reports. “In a briefing note, unnamed authors from the UN’s climate body (UNFCCC) said these removal activities are “technologically and economically unproven, especially at scale, and pose unknown environmental and social risks”. It concludes they are therefore not suitable for offsetting carbon emissions under the upcoming UN’s global scheme. The UN assessment has angered the growing industry, which is seeing billions of dollars of investment from governments and corporations. More than 100 figures from the carbon removal industry signed a letter addressed to the UN body asking it not to rule out any specific activity, but to “let science, innovation, and the market compete to deliver the solutions”. The document will inform discussions taking place next week in the German city of Bonn to set up a new global carbon trading system under Article 6 of the Paris Agreement. A UN panel is tasked with drafting the rules and indicating which activities should be eligible. It is taking into consideration both land-based solutions, like tree planting, and technological ones, such as using machines to pull CO2 directly out of the air… “Campaigners have raised concerns over the technical challenges of deploying these solutions and the potential risks to human rights… “In its briefing note, the UNFCCC said activities like DAC or BECCS are not fit for the purposes of Article 6. Without going into details, it argues they are too costly, are not suitable for developing countries, and do not contribute to sustainable development… “The Center for International Environmental Law called carbon removal “a dangerous distraction”. The NGO argued that relying on removal technology, “both delays the immediate reduction of emissions and presents independent risks to human rights and the environment, some of which remain poorly understood”.

Offshore Energy: Carbon capture seen as ‘key tool’ in fight against greenhouse gas emissions
Melisa Cavcic, 5/25/23

“With decarbonisation being seen as one of the biggest challenges facing the energy industry today, Offshore Energies UK (OEUK) has outlined that the recently offered carbon storage licences signify the country could bury 30 million tonnes of CO2 a year by 2030 and become a renowned mover and shaker in decarbonisation technology,” Offshore Energy reports. “After the North Sea Transition Authority (NSTA) offered 12 companies awards for 20 carbon storage licenses in the UK’s first-ever CO2 storage licensing round –  launched in June 2022, with applications closing in September – OEUK interprets the decision to offer 13 areas off the UK’s coast as sites for permanently storing millions of tonnes of CO2 to mean that the UK could pioneer a technology that would be “essential” in the fight against climate change. The licences cover 12,000 square kilometres at offshore sites near Aberdeen, Teesside, Liverpool, and Lincolnshire, with some of the sites expected to be in operation in as little as six years, reducing the UK’s total greenhouse gas emissions by up to 10 per cent. OEUK believes that this carbon storage licensing round is likely to be the first of many, as it is estimated up to 100 CO2 stores could be needed for the UK to meet net-zero by 2050. David Whitehouse, OEUK’s Chief Executive Officer, told OE: “Carbon capture will be a key tool in the global fight against climate change. These pioneering projects can create a wave of new jobs across the country, provide new opportunities for UK businesses at home and abroad, and maintain our world-leading action to reach net zero… We will need 100 such sites or more, and the Track 1 and 2 clusters to be accelerated, if we are to reach net-zero – so we mustn’t stop here. We look forward to the government’s continued support for CCUS to make sure the UK secures a leadership position in this exciting new sector,” concluded Whitehouse.

Axios: “Clean” energy spending is outpacing fossil fuels
Ben Geman, 5/2523

“Investment in climate-friendly energy is extending its lead over fossil fuels, yet spending trends in both buckets are out of step with Paris Agreement goals, a new report finds,” according to Axios. “The International Energy Agency just dropped its latest annual look at investments in “clean” and fossil energy. “Clean” includes wind, solar, batteries, EVs, nuclear, efficiency, grid tech and carbon capture… “The oil and gas sector is boosting investment in exploration and production — but not compared with high profits. Forces including investor pressure for returns, and questions about long-term demand, mean that “only large Middle Eastern national oil companies are spending much more in 2023 than they did in 2022.” “Clean” investment is growing, but the world is behind the eight ball on the emissions cuts needed for Paris goals. If you look at IEA’s hypothetical pathway to net-zero emissions by 2050, investment in only a “handful” of technologies — including solar and battery storage — is on track. Meanwhile, “coal investment this year is on course to reach nearly six times the levels envisaged in 2030 in the Net Zero Scenario,” IEA notes.

OPINION

WRAL: MIKE WOODARD: Carbon capture initiatives are key to achieving climate goals
Mike Woodard has represented Durham in the NC Senate for six terms where he is a Democrat and serves on the Agriculture, Energy, and Environment Committee, 5/25/23

“North Carolina businesses play a critical role in driving economic growth and job creation. As a state senator I understand the need to recognize that and know that I have a responsibility to address the pressing issue of climate change. I am committed to doing the work needed to reduce our carbon footprint,” Mike Woodard writes for WRAL. “Many of the major industries working in North Carolina rely on the use of fossil fuels. For us, moving toward a carbon-neutral future will not happen rapidly. Thankfully, there are now solutions to reduce harmful emissions in the meantime while we progress towards our end goal of decarbonization. Carbon capture and storage (CCS) initiatives have been a hopeful solution that can move us towards both environmental sustainability and economic prosperity. When we capture carbon dioxide emissions before they are released into the atmosphere and bury them deep underground, we can keep the planet safe and healthy while preserving jobs and economic growth in key industries. Carbon capture and storage technologies are a key part in reaching our climate goals. We also have the opportunity to spur innovation and drive economic growth with these initiatives. As the demand for carbon capture technology increases, there will be chances for businesses to develop and commercialize innovative solutions. I know that carbon capture is not the ultimate solution for or climate problem, but we need to use every solution we can to combat climate change. We must support both capture and storage technology to make sure we keep the carbon byproduct out of the atmosphere. This technology will help the important industries in North Carolina as they transition to a carbon-neutral future… “Many CCS wells are currently awaiting permit approval.  We cannot make the most of this investment unless the Environmental Protection Agency speeds up approval for federal permits for carbon capture projects. The Biden Administration has made clear that CCS must be part of our climate change solution by investing in the right tools. The EPA must allow us to build on this momentum by getting rid of the roadblocks and accelerating CCS permit and primacy approval.”

SCOTUSblog: Supreme Court curtails Clean Water Act
Amy Howe, 5/25/23

“The Supreme Court on Thursday established a more stringent test to determine whether the Clean Water Act applies to a wetland. The ruling was a setback for the Environmental Protection Agency and a victory for an Idaho couple, Michael and Chantell Sackett, who have been battling with the federal government for over 15 years in their efforts to build a house on an empty lot near a large lake,” Amy Howe writes for SCOTUSblog. “…The Sacketts received a notice from the EPA to stop work because their lot contains wetlands protected by the CWA, which bars the discharge of pollutants, including rocks and sand, into “navigable waters.” “…Instead, Justice Samuel Alito explained, courts should apply a more stringent test, outlined by four justices (including Alito, Chief Justice John Roberts, and Justice Clarence Thomas) in Rapanos, in which the CWA applies to a particular wetland only if it blends or flows into a neighboring water that is a channel for interstate commerce. Alito pointed to the text of the CWA, emphasizing that the law’s use of the term “waters” generally refers to relatively permanent bodies of water such as lakes and rivers. But when the law is read as a whole, Alito continued, it is clear that some “adjacent” wetlands will also qualify as “waters of the United States.” This means, he wrote, that wetlands that are entirely separate from traditional bodies of water will not qualify. But the CWA will apply, Alito concluded, to wetlands that are “as a practical matter indistinguishable from waters of the United States” because they have a “continuous surface connection” with a larger body of water, “making it difficult to determine where the ‘water’ ends and the ‘wetland’ begins.” “…Kagan also wrote a brief opinion of her own, joined by Sotomayor and Jackson, in which she criticized what she characterized as “the Court’s appointment of itself as the national decision-maker on environmental policy.” ‘…Although the majority disagrees with that decision, she wrote, it cannot “rewrite Congress’s plain instructions because they go further than” the court would like. But that is precisely what the majority did here, she concluded, just as it did last year when it curtailed the EPA’s authority to regulate greenhouse gas emissions.”