EXTRACTED: Daily News Clips 1/21/22
PIPELINE NEWS
MPR: A year after breach, Enbridge says it’s stopped Line 3 groundwater aquifer leak
Mlive.com: Line 5 tunnel could be a ‘stranded asset’ in 20 years, report suggests
Wisconsin Citizens Media Co-op: Informational meeting on how to testify at Enbridge Line 5 public hearing February 2, 2022
Politico: MVP Secures Win From DOI
E&E News: FERC meeting: Gas fights, EJ shifts and a ‘legal weapon’
FERC: Chairman Glick Statement on Weymouth Compressor Station
WAND: ADM planning carbon-capturing pipeline to Iowa
Castlegar News: Enbridge purchases Northwest B.C. pipeline from Chevron, Woodside
WASHINGTON UPDATES
The Hill: Environmental groups: Biden administration has legal authority to end oil and gas leasing on public land
CNN.com: House committee schedules 2nd hearing on oil and gas industry's role in climate disinformation
Politico: 45Q BACKERS HOPEFUL ON CAPTURE THRESHOLD
Utility Dive: Republicans, industry resist FERC oversight of pipeline reliability, security as Glick cites grid threats
Politico: EXPORT BAN STILL OFF THE TABLE
Politico: A WHOLE OF GOVERNMENT BILL
STATE UPDATES
Fort Collins Coloradoan: McWhinney details plans for 26 oil and gas wells in Loveland's Centerra area
Vox: Texas went big on oil. Earthquakes followed.
Bloomberg: PG&E Probation Ends As Judge Calls It a ‘Continuing Menace’
EXTRACTION
Press release: CAPP projects investment in Canada's natural gas and oil sector will rise to $32.8 billion in 2022
Globe and Mail: Climate scientists urge Ottawa to cancel proposed carbon-capture tax credit
Press release: Letter from scientists, academics, and energy system modellers: Prevent proposed CCUS investment tax credit from becoming a fossil fuel subsidy
VICE: Shell’s Massive Carbon Capture Plant Is Emitting More Than It’s Capturing
Natural Gas Intelligence: Global Demand for U.S. Natural Gas Grows, Along with Climate Scrutiny
S&P Global: Permian oil growth may depend on gas processing buildout
Des Moines Register: MidAmerican proposes adding enough wind, solar generation to meet all of Iowa customers' power needs
CLIMATE FINANCE
E&E News: Citigroup takes hard line with energy-sector investments
Globe and Mail: Financial sector faces climate transition risk, says BoC and banking regulator
TODAY IN GREENWASHING
Bloomberg: ‘Responsibly Sourced' Gas Finds a Niche, But Some Cry Greenwashing
PTBO Canada: Enbridge Assists Selwyn Fire Dept in Supporting Firefighter Training
OPINION
Bloomberg: Environmental Justice Requires a Healthy Democracy
Global Witness: Three ways President Biden can act on climate without Congress in 2022
The Hill: Gina McCarthy: Why I'm more optimistic than ever on tackling the climate crisis
PIPELINE NEWS
MPR: A year after breach, Enbridge says it’s stopped Line 3 groundwater aquifer leak
Kirsti Marohn, 1/20/22
“A year after workers installing the Line 3 oil pipeline pierced an aquifer in northwestern Minnesota, Enbridge Energy has told state regulators it has stopped the uncontrolled flow of groundwater,” MPR reports. “Pipeline opponents are marking the anniversary of the breach by calling for more accountability and details about the incident, and others where Line 3 construction might have disturbed groundwater, rivers or wetlands… “Enbridge didn’t immediately report the breach to state regulators. It wasn’t until June that Minnesota Department of Natural Resources officials pieced together what had happened through reports from independent monitors. It’s not yet clear whether the breach caused any long-term environmental damage or affected aquifer levels in the area. There are concerns that sediment could end up in nearby streams or wetlands. There also are some rare wetlands called calcareous fens nearby that support diverse plant life, and rely on a flow of mineral-rich groundwater. Scientists are concerned that the interruption of that flow could negatively affect the fens… “The agency told MPR it's still investigating two other sites along the Line 3 corridor where aquifer breaches may have occurred. It hasn't released the location of those sites… “Opponents of the Line 3 pipeline are frustrated at how long the breach repair has taken. They want state agencies and Enbridge to release more information about the Clearbrook puncture and the two other possible breach sites… “The DNR also referred the Clearbrook case to the Clearwater County attorney for possible criminal prosecution. The county attorney forwarded it to the state attorney general's office, which said it has not yet decided whether to file charges. On Friday, Line 3 opponents are planning to hold rallies both in Clearbrook and at the DNR headquarters in St. Paul.”
Mlive.com: Line 5 tunnel could be a ‘stranded asset’ in 20 years, report suggests
Sheri McWhirter, 1/20/22
“Critics of a plan to relocate the Line 5 pipeline into a tunnel beneath Great Lakes waters argue Enbridge’s own federal filings prove there’s no need for the infrastructure to be built,” Mlive.com reports. “Opponents of the Canadian company’s plan to build a $500 million tunnel through the bedrock beneath the Straits of Mackinac said the project would become a “stranded asset” by the end of 2040. That’s when the company set the truncation date for its Lakehead pipeline system, of which Line 5 is a part, according to a depreciation report Enbridge filed last year with the Federal Energy Regulatory Commission. Officials from the Oil & Water Don’t Mix citizens campaign are pointing to a 2021 Enbridge depreciation study – which was filed with U.S. energy regulators so the company could raise tariffs – as evidence Line 5 will be obsolete by 2041, only 13 years after the tunnel construction is expected to be done. They argue that contradicts agreements Enbridge made with Michigan officials to build the tunnel and use it for a pipeline for 99 years. “That raises questions. The primary one being, did Enbridge enter an agreement with the state while knowing the pipeline wasn’t going to be in the ground for 99 years, that they’d have to replace it, or, based on their own study, they’d be put out of business,” David Holtz, from Oil & Water Don’t Mix, told Mlive. “Did Enbridge enter into those agreements in good faith?” The citizens campaign, which represents more than a dozen environmental organizations and tribal governments, sent a letter to the Mackinac Straits Corridor Authority to recommend a halt to all state support for and spending on tunnel engineering work.”
Wisconsin Citizens Media Co-op: Informational meeting on how to testify at Enbridge Line 5 public hearing February 2, 2022
Barbara With, 1/17/22
“Shut Down Line 5: Protect the Water, a coalition dedicated to protecting the water, land, and our communities through grassroots organizing to shut down Enbridge’s Line 5 pipeline, is hosting an informational meeting to help concerned citizens prepare to testify before the Department of Natural Resources about Enbridge’s draft Environmental Impact Statement (EIS) for their proposed reroute of Line 5. The DNR hearing is on on February 2, 2022, at 4 PM via ZOOM. Speakers at the hearing on February 2 will be limited to 3 minutes. This informational meeting will help you prepare to make an impact with your statement and understanding of the issues involved. REGISTER HERE FOR INFORMATIONAL MEETING: Thursday, July 27, 2022, 7 PM Via ZOOM.”
Politico: MVP Secures Win From DOI
1/20/22
“The U.S. Fish and Wildlife Service on Tuesday filed a notice with FERC largely agreeing with the commission’s conclusion that the latest Mountain Valley Pipeline construction plan will not harm any endangered species along its route,” Politico reports. “The project had filed an amended proposal with the commission last February, and FERC had asked FWS to review its conclusions that the changes would not adversely affect endangered plants or animals in October. The notice comes as the project continues to face legal challenges. The U.S. Court of Appeals for the D.C. Circuit heard oral arguments from the Sierra Club against the project’s proposed southern expansion on Wednesday, and the environmental group filed another lawsuit earlier this month against West Virginia regulators for granting the project a water quality certificate.”
E&E News: FERC meeting: Gas fights, EJ shifts and a ‘legal weapon’
By Miranda Willson, Christian Vasquez, 1/21/22
“A natural gas compressor station in Massachusetts that came under scrutiny last year over safety concerns can remain in operation, the Federal Energy Regulatory Commission announced yesterday, even as members of the panel questioned whether it should have been approved in the first place,” E&E News reports. “In a sign of FERC’s shifting views on environmental justice with a new Democratic majority, three of the commission’s five members voiced concerns over the Weymouth Compressor Station’s location in a densely populated area near historically disadvantaged communities and already home to multiple polluting industrial facilities. Still, the commission stopped short of taking further action against the facility because it lacked the legal right to do so, FERC Chair Richard Glick said… “The decision is a blow for climate and environmental justice advocates, who note that the project is located within half a mile of more than 900 residences. Still, FERC’s conclusion was "not unexpected," Alice Arena, president of Fore River Residents Against the Compressor Station, told E&E. "Ethically and morally, [FERC] made the wrong decision here, and we’re going to keep fighting it," Arena told E&E. "You didn’t just put our community in jeopardy, you put the entire planet in jeopardy." “...Nonetheless, the FERC order calls on the Pipeline and Hazardous Materials Safety Administration to "be vigilant" in responding to potential safety concerns with the project if they come up in the future, Glick said on a call with reporters after the meeting. The order also directs Enbridge to "be a good corporation citizen" and reassure community members worried about the project, Glick said.”
FERC: Chairman Glick Statement on Weymouth Compressor Station
Richard Glick, 1/20/22
“Today the Commission issued an order involving the Atlantic Bridge Pipeline Project, and more specifically, a compressor station located in Weymouth, Massachusetts. FERC granted the Atlantic Bridge Pipeline Project a Certificate of Public Convenience and Necessity in early 2017… “A variety of community groups and individuals sought rehearing of the Commission staff order permitting the compressor station to commence operations. On February 18, 2021, the Commission sought briefing on the blowdowns and their implications for community safety and, by extension, staff’s decision to allow the facility to enter service. We have received and carefully considered nearly a hundred responses. I believe that the Commission likely erred in siting the Weymouth Compressor Station where it did… “But that is not the issue that was before the Commission today. The certificate is final and, under the law as it stands, that leaves only one issue for us to decide: Whether the Commission erred in allowing the project to go into service? The deficiencies in the now-final certificate do not provide a legal basis to prevent the Weymouth Compressor Station from entering service based on the record in this proceeding. Although it is cold comfort for the residents near the compressor station, I hope that this proceeding will serve as a turning point for the Commission as we work to better consider, address, and act on issues of environmental justice. Partly in response to the lessons learned from the Weymouth proceeding, the Commission has taken steps to ensure that individuals and communities have a full and fair opportunity to participate meaningfully in Commission proceedings… “ In addition, I also urge Enbridge to take its obligations as a corporate citizen seriously and take a hard look at any and all options to address the community’s concerns.”
WAND: ADM planning carbon-capturing pipeline to Iowa
1/20/22
“Archer Daniels Midland is planning a major pipeline that runs from Iowa to Decatur,” WAND reports. “For more than a decade, ADM has been storing liquefied CO2 emissions from its plants at a location more than a mile underground at a sequestration site in Decatur. There have been over 2.5 million metric tons collected so far. ADM has plans with a Canadian company to expand on the capture technology with a 350 mile pipeline to two of its Iowa plants. The plan is to pump 12 million tons a year of liquefied CO2 underground back here at the site in Decatur. Emma Schmit, senior organizer of of Iowa-based Food and Water Watch, told WAND sequestration is more of a pipe dream that costs taxpayers money and is not reaching goals. "Of the very few operations that are currently working, we see that they are producing more greenhouse gases in the process of capturing the carbon than they are actually eliminating through the sequestration process," she told WAND. ADM in a statement said the pipeline will be built, owned and operated by Wolf Carbon Solutions of Canada with no capital investment from ADM.”
Castlegar News: Enbridge purchases Northwest B.C. pipeline from Chevron, Woodside
THOM BARKER, 1/20/22
“A northwest B.C. natural gas pipeline project presumed to be dead may be showing new signs of life,” Castlegar News reports. “In a letter to Indigenous and non-Indigenous stakeholders along the route of the proposed Pacific Trail Pipeline (PTP), Jennifer Prochera, a community and Indigenous relations advisor for oil and gas giant Enbridge, announced the company had purchased the project from Chevron and Woodside Petroleum. “The purchase gives Enbridge the rights to the proposed pipeline, which includes all engineering, early development work, and related project assets and permitting for the pipeline, including those from the B.C. Oil and Gas Commission and B.C. Environmental Assessment Office,” Prochera wrote. The PTP is a proposed 471-kilometre liquified natural gas (LNG) pipeline that would supply up to three billion cubic feet of LNG exports from Summit Lake to Kitimat. A proposed processing facility (Kitimat LNG) was not part of the Enbridge deal. Two years ago, Chevron started trying to divest itself of its 50 per cent stake in the PTP and its proposed Kitimat facility. After failing to find a buyer, the company announced in March 2021 it was pulling the plug on the projects… “David DeWit, natural resources manager for the Office of the Wet’suwet’en (hereditary chiefs) confirmed their position remains that they are opposed to all pipelines through Wet’suwet’en territory. Enbridge responded to the question of how they propose to handle relations with the hereditary leadership via an emailed response. “This project has been purchased for future consideration,” the company told the News. “Nothing is being built at this time. Any future progress on this project will only occur with open dialogue with all potentially impacted Indigenous groups so that we can better understand and address specific interests related to a potential project.”
WASHINGTON UPDATES
The Hill: Environmental groups: Biden administration has legal authority to end oil and gas leasing on public land
BY ZACK BUDRYK, 1/19/22
“A coalition of more than 300 environmental and tribal organizations on Wednesday issued a petition calling on the Biden administration to fully phase out oil and gas production on federal land by 2035,” The Hill reports. “In the petition, participating organizations argued the administration has the legal authority to phase out such activity. The framework they offer argues that the oil and gas industry has already acknowledged the Interior Department’s authority in the matter through the language in the leases they sign… “It goes on to argue that the industry has already demonstrated its capacity to alter its rate of production at will, as demonstrated by the practice of turning off valves amid Gulf hurricanes, as well as reduced production during the COVID-19 pandemic. The phaseout outlined in the petition calls for a 10 percent annual decline in production over eight years, beginning in 2022, followed by a 3 percent reduction for each year after. Petitioners include the Center for Biological Diversity, Friends of the Earth, the Sierra Club, the Western Environmental Law Center and Honor the Earth. The petitioners fault the administration for allowing leases to resume after a court struck down Biden’s order pausing leasing on federal lands and waters.” “The natural place to start phasing out climate-destroying oil and gas production is on our public lands and oceans, and Biden has the authority to do so. If the U.S. leads, the world will follow. Biden must keep his promise to end federal oil and gas extraction,” Taylor McKinnon of the Center for Biological Diversity told the Hill. “Asked if the petitioners would consider filing a lawsuit to compel the administration to take such action, McKinnon told The Hill, “If the administration fails to timely respond to the petition, that is a possibility.”
CNN.com: House committee schedules 2nd hearing on oil and gas industry's role in climate disinformation
Rene Marsh, CNN, 1/21/22
“The House Oversight Committee on Thursday issued its second round of appearance requests to the oil and gas industry in an investigation into the role it has played in the spread of climate disinformation,” CNN.com reports. “House Oversight Chairwoman Carolyn Maloney, a New York Democrat, and Subcommittee on the Environment Chairman Ro Khanna, a California Democrat, sent letters to board members of four major oil and gas companies -- ExxonMobil, Shell, BP and Chevron -- requesting their testimony at a hearing slated for February 8. It will be the committee's second hearing since it launched the investigation in September. The first hearing included Big Oil executives from ExxonMobil, BP America, Chevron Corp., Shell Oil Co., the American Petroleum Institute and the US Chamber of Commerce. The committee said it was calling these board of directors members to testify because of their "key governance role in addressing the climate crisis by overseeing and guiding companies' climate strategies, promoting transparency, and holding management accountable to meaningful emissions reductions." The panel, according to the letter, wants "to evaluate the current state of fossil fuel industry climate pledges and any progress that still needs to be made to meet the goals of the Paris Agreement and avert a climate catastrophe." The committee requested the appearance of Alexander Karsner and Susan Avery for ExxonMobil; Jane Holl Lute for Shell; Melody Meyer for BP; and Enrique Hernandez for Chevron.”
Politico: 45Q BACKERS HOPEFUL ON CAPTURE THRESHOLD
Annette Choi, 1/20/22
“Carbon capture proponents are bullish that Senate Democrats will address their concerns that requirements under the expanded 45Q tax credits in the BBB — which mandate power facilities to capture at least 75 percent of their emissions — will stymie growth of the technology,” Politico reports. “Addressing the issue is a top priority for Manchin, who sees carbon capture as essential for his fossil fuel-dependent state and is among a group of Senate Democrats pushing to alter the House bill's language. Some House Democrats and progressive environmental groups are lobbying hard against changes, arguing overly generous tax subsidies could incentivize uneconomic coal plants. Sen. Tina Smith, who is working with Manchin to make changes to the credit, told Politico last week that a compromise is within reach.”
Utility Dive: Republicans, industry resist FERC oversight of pipeline reliability, security as Glick cites grid threats
Robert Walton, 1/20/22
“House Republicans and the fossil fuel industry are opposed to legislation directing the Federal Energy Regulatory Commission to develop reliability and cybersecurity standards for natural gas and other energy pipelines,” Utility Dive reports. “Trade groups and conservative lawmakers argue the bill is duplicative, costly and creates conflicting authorities. The House Subcommittee on Energy held a Wednesday hearing to consider H.R. 6084, the Energy Product Reliability Act. There are no mandatory reliability standards for gas pipelines and that "poses a risk to the reliability of the bulk power system," FERC Chairman Richard Glick told lawmakers. The Interstate Natural Gas Association of America (INGAA) and seven other groups object to the bill, pushing instead for lawmakers to address "capacity constraints resulting from federal and state permitting obstacles." Republican lawmakers say their priority is to slow rising energy costs.”
Politico: EXPORT BAN STILL OFF THE TABLE
Annette Choi, 1/20/22
“The Biden administration isn’t considering an export ban on U.S. oil or natural gas as fuel prices surge, deputy Energy Secretary David Turk told the House Energy and Commerce Committee on Wednesday,” Politico reports. “It was a move advocated by a handful of progressive Democrats in the Senate both out of environmental and consumer protection concerns, but Turk told the House lawmakers it was “not something we’re discussing.” Still, Turk wouldn’t answer ranking member Fred Upton ’s (R-Mich.) query on whether the administration was considering shortening the duration of the federal licenses that allow companies to export LNG, saying instead: “We're trying to do what Congress has told us to do, and take into account the whole range of issues that should go into national interest determinations on LNG decisions.”
Politico: A WHOLE OF GOVERNMENT BILL
Annette Choi, 1/20/22
“Sens. Chris Coons (D-Del.) and Lisa Murkowski (R-Alaska) are leading a bipartisan and bicameral group of lawmakers introducing legislation today requiring the White House to create a “whole-of-government National Climate Adaptation and Resilience Strategy,” Politico reports. “The National Climate Adaptation and Resilience Strategy Act, shared early with Josh, aims to ensure the U.S. government takes a “unified” response to climate-related hazards across federal agencies. It would also authorize creation of a chief resilience officer in the White House who would develop a strategy to confront adapting to the effects of a warming planet… “The bipartisan effort shows a growing consensus on the need to adapt to climate change, as opposed to efforts to mitigate its cause — emissions caused by fossil fuels.”
STATE UPDATES
Fort Collins Coloradoan: McWhinney details plans for 26 oil and gas wells in Loveland's Centerra area
Jacy Marmaduke, 1/19/22
“Loveland-based development company McWhinney plans to drill 26 oil and gas wells in Loveland’s Centerra area in 2023,” the Fort Collins Coloradoan reports. “Troy McWhinney, the developer’s chief investment officer and co-founder, shared preliminary details about the plans during an hourlong virtual meeting Wednesday night… “News of the meeting earlier this month triggered backlash from residents who are concerned about how the fracking sites could degrade air quality, produce noise and odors, and pose a risk to nearby lakes and wildlife. They’re also concerned about impacts to their property values and the potential safety hazard of living near fracking operations. Residents also said they felt slighted because they’d never heard about McWhinney’s drilling plans until now, though they’ve been in the works mostly behind the scenes for 15 years… “Wednesday’s meeting was a voluntary transparency measure, McWhinney told FCC. The company hasn’t submitted any applications to the city of Loveland or the state but plans to do so this year. The well heads, pending regulatory approval, would be located outside of Centerra’s most densely populated areas, with the interstate and U.S. 34 separating the pads from the neighborhoods around Boyd Lake, Equalizer Lake and Houts Reservoir.”
Vox: Texas went big on oil. Earthquakes followed.
Neel Dhaneshaneel, 1/20/22
“It’s been a big winter for earthquakes in West Texas,” Vox reports. “A string of small tremors rocked Midland County on December 15 and 16, followed a week later by a magnitude-4.5 quake, the second-strongest to hit the region in the last decade. Then a magnitude-4.2 quake shook the town of Stanton and another series of small earthquakes hit nearby Reeves County. That’s an unsettling pattern for a state that, until recently, wasn’t an earthquake state at all… “The reason why is disconcerting: Seismologists say that one of the state’s biggest industries is upsetting a delicate balance deep underground. They blame the oil and gas business — and particularly a technique called wastewater injection — for waking up ancient fault lines, turning a historically stable region into a shaky one, and opening the door to larger earthquakes that Texas might not be ready for. The state is finally trying to change that. In December, the Texas Railroad Commission — the state agency that regulates oil and gas operations and no longer has anything to do with railroads — suspended wastewater injection at 33 sites across a region where more than half a million people live. This is a notable turnaround for the Railroad Commission, which until recently did not acknowledge a link between oil and gas operations and earthquakes, and might be a sign of just how serious the earthquakes have gotten.”
Bloomberg: PG&E Probation Ends As Judge Calls It a ‘Continuing Menace’
Robert Burnson and Mark Chediak, 1/19/22
“PG&E Corp. is ending a five-year felony probation as a “continuing menace to California,” a judge supervising the company said in his parting observations, noting the company went on a “crime spree” even as he tried to rehabilitate it. “I must acknowledge failure,” U.S. District Judge William Alsup wrote in a scathing report Wednesday,” Bloomberg reports. “Alsup has overseen the utility’s probation since its conviction in 2016 of crimes tied to a 2010 natural gas pipeline explosion that killed eight people in a San Francisco suburb. The probation term is set to expire Jan. 25… “In probation, with a goal of rehabilitation in mind, we always prefer that criminal offenders learn to accept responsibility for their actions,” Alsup wrote. “Sadly, during all five years of probation, PG&E has refused to accept responsibility for its actions until convenient to its cause or until it is forced to do so.” “...Alsup also said the company should be broken up into two separate utilities, one to service high fire threat districts and the other for the rest of the state. “Less sprawling utilities would be easier to train and to instill practices and procedures that truly put safety first,” Alsup said.
EXTRACTION
Press release: CAPP projects investment in Canada's natural gas and oil sector will rise to $32.8 billion in 2022
1/20/22
“The Canadian Association of Petroleum Producers (CAPP) is forecasting a 22 per cent increase in natural gas and oil investment in 2022. Capital spending in the sector is expected to grow by $6.0 billion to reach $32.8 billion, compared to an estimated total investment of $26.9 billion in 2021. (All figures in Canadian dollars.) The expected growth in spending for 2022 would mark the second straight year of significant increases in investment as Canadian producers look to capitalize on stronger commodity prices due to rapidly growing global demand for natural gas and oil. Conventional oil and natural gas capital investment for 2022 is forecast at $21.2 billion, up from an estimated $18.1 billion last year, while growth in oil sands investment is expected to increase 33 per cent to $11.6 billion compared to $8.7 billion last year… “Alberta is expected to lead all provinces with upstream investment expected to increase 24 per cent to total $24.5 billion in 2022. Over 80 per cent of the new spending this year is focused in Alberta, representing an additional $4.8 billion of investment into the province compared to 2021. The growth in investment is being driven both in the conventional and oil sands sectors.”
Globe and Mail: Climate scientists urge Ottawa to cancel proposed carbon-capture tax credit
EMMA GRANEY, 1/20/22
“More than 400 Canadian climate and energy scientists and academics are urging the federal government to cancel the carbon-capture investment tax credit slated for release this year, arguing it does nothing to encourage Canada to wean itself off its fossil-fuel habit, which is crucial to meeting the country’s climate goals,” the Globe and Mail reports. “In a letter sent to Deputy Prime Minister and Finance Minister Chrystia Freeland on Wednesday, the group said Ottawa’s proposed tax credit undermines government efforts to reach net zero by 2050, and would contradict an election promise by the federal Liberals to eliminate fossil-fuel subsidies by 2023. The group’s concerns underscore the fine line the federal government walks as it develops the tax credit, which will provide incentives to build carbon-capture projects and was first proposed as part of last year’s budget… “But the group that signed the letter to Ms. Freeland says a CCUS tax credit would be little more than a substantial new subsidy for the fossil-fuel industry. “Relying on CCUS preserves status quo fossil-fuel development, which must be curtailed to meet global climate commitments,” the group wrote. “Introducing a tax credit for CCUS for the energy sector will lock in continued dependence on Canada’s largest and most rapidly growing source of greenhouse gas emissions.” Letter signatory Christina Hoicka, Canada Research Chair in urban planning for climate change and an associate professor at the University of Victoria, said concentrating on CCUS also undermines other, cheaper emissions-reduction technologies. “My concern is that we’re putting attention on a technology that’s not necessarily available on a time scale that we need, and we’re not really focusing on the technology that’s going to get us to our goals in the time scale that we need, which is by 2030,” Holcka told the Mail.”
Press release: Letter from scientists, academics, and energy system modellers: Prevent proposed CCUS investment tax credit from becoming a fossil fuel subsidy
1/20/22
“Dear Deputy Prime Minister, As scientists, academics, and energy system modellers we are deeply concerned with the government’s proposal to introduce a new investment tax credit for carbon capture, utilization and storage (CCUS). We urge you to not introduce the proposed investment tax credit for CCUS because it will constitute a substantial new fossil fuel subsidy. As well as undermining government efforts to reach net-zero by 2050, the introduction of this tax credit would contradict the promise made by your government to Canadians during the election period to eliminate fossil fuel subsidies by 2023 as well as our international commitments under the Paris Agreement. And once new subsidies are put in place, they are very hard to repeal. Effective solutions to achieve deep emission reductions in the next decade along a pathway to zero emissions are already at hand, including renewable energy, electrification and energy efficiency. Funding CCUS diverts resources from these proven, more cost effective solutions that are available on the timeframes required to mitigate climate change. Despite decades of research, CCUS is neither economically sound nor proven at scale, with a terrible track record and limited potential to deliver significant, cost-effective emissions reductions… “Furthermore, CCUS does not address environmental, social and health impacts associated with the mining, extraction, and transport of fossil fuels, faced primarily by Indigenous and front-line communities. The buildout of CCUS infrastructure would require an enormous system of pipelines to transport the carbon. This presents serious health, safety, and environmental risks, particularly for marginalized frontline communities, which are already overburdened by industrial hazards.”
VICE: Shell’s Massive Carbon Capture Plant Is Emitting More Than It’s Capturing
Anya Zoledziowski, 1/20/22
“A first-of-its-kind “green” Shell facility in Alberta is emitting more greenhouse gases than it’s capturing, throwing into question whether taxpayers should be funding it, a new report has found,” VICE reports. “Shell’s Quest carbon capture and storage facility in the Alberta tarsands captured 5 million tonnes of carbon dioxide at its hydrogen-producing plant in its Scotford complex between 2015 and 2019. But a new report from human rights organization Global Witness found the hydrogen plant emitted 7.5 million tonnes of greenhouse gases in the same timeframe—including methane, which has 80 times the warming power of carbon during its first 20 years in the atmosphere, and accounts for about a quarter of man-made warming today. To put that in perspective, the “climate-forward” part of the Scotford plant alone has the same carbon footprint per year as 1.2 million fuel-powered cars, Global Witness told VICE. “We do think Shell is misleading the public in that sense and only giving us one side of the story,” Dominic Eagleton, who wrote the report, told VICE. He said industry’s been pushing for governments to subsidize the production of fossil hydrogen (hydrogen produced from natural gas) that’s supplemented with carbon capture technology as a “climate-friendly” way forward, but the new report shows that’s not the case… “Meanwhile, Canada’s Ministry of Natural Resources said they were unable to comment on the report, but Joanna Sivasankaran, the press secretary for the Minister of Natural Resources, told VICE, “Carbon capture utilization and storage is not a silver bullet to the climate crisis but it is an important tool on the pathway to reaching Canada’s ambitious climate goals and reducing emissions in many industries, including oil and gas.”
Natural Gas Intelligence: Global Demand for U.S. Natural Gas Grows, Along with Climate Scrutiny
ANDREW BAKER, 1/20/22
“The U.S. natural gas industry is facing regulatory pressure on multiple fronts this year as global demand continues to rise,” Natural Gas Intelligence reports. “Despite its essential role in the energy transition, particularly in displacing oil and coal in the power sector, policymakers at the state and federal level are applying increasing scrutiny to gas in order to achieve deep decarbonization across the economy. Two areas in particular – methane emissions and electrification of buildings – have caught the attention of politicians and industry lobbyists. Meanwhile, permitting and construction of new-build natural gas infrastructure is proving increasingly difficult amid an onslaught of legal challenges. “That combination of forces is going to have an impact,” the American Petroleum Institute’s (API) Frank Macchiarola, senior vice president of policy, economics and regulatory affairs, told NGI. “Natural gas has to be part of the solution to addressing the climate challenge… “A natural gas industry lobbyist who asked to remain anonymous told NGI the methane fee is “regressive,” as the extra costs would ultimately be passed onto consumers. The lobbyist stressed the importance of “educating” members of the Senate on the methane fee and other anti-fossil fuel measures in the bill… “Natural gas infrastructure, particularly pipelines planned for the Appalachian Basin, are proving exceedingly difficult to permit and complete… “Liquefied natural gas (LNG) projects have faced difficulty as well.”
S&P Global: Permian oil growth may depend on gas processing buildout
Jordan Blum, 1/20/22
“The booming Permian Basin is churning out more crude oil than ever after recovering from the ongoing coronavirus pandemic, but future growth will depend on the buildout of constrained natural gas pipeline gathering and processing systems within the basin, energy executives and analysts said,” S&P Global reports. “Following years of massive buildout of long-haul crude pipelines, natural gas infrastructure is proving more critical now. With stricter regulations on eliminating gas flaring, the fates of oil and natural gas within the Permian are more linked than ever and more gas pipelines and processing plants are needed in the near term. "We're having a lot of these localized gas processing constraints in the Permian," Zack Van Everen, a senior midstream analyst at East Daley Capital Advisors, told S&P… “That the Permian is over-piped applies only to the long-haul crude networks, Van Everen told S&P. But the good news for producers is that new, in-basin gas gathering and processing facilities can be built in less than a year. So the construction pace should manage to keep up with production, if only barely. However, a failure to add the necessary infrastructure would slow oil production growth and trigger "heavily discounted" Waha gas pricing because so much gas will be left stranded.”
Des Moines Register: MidAmerican proposes adding enough wind, solar generation to meet all of Iowa customers' power needs
Donnelle Eller, 1/19/22
“MidAmerican Energy said Wednesday that it's seeking to invest $3.9 billion to develop more wind and solar energy, and explore new technologies that will push the company closer to net-zero greenhouse gas emissions,” the Des Moines Register reports. “The Des Moines-based utility generated nearly 88% of the power used by its Iowa customers from renewable sources in 2020. In a filing with the Iowa Utilities Board, it proposes building 2,042 megawatts of wind and 50 megawatts of solar generation… “The company, owned by Warren Buffett's Berkshire Hathaway, also proposes studying emerging technologies, including energy storage, the use of small, modular nuclear reactors and employing carbon capture to reduce greenhouse gas emissions from its remaining coal-fired plants. Three companies are proposing to build pipelines across Iowa that would capture carbon dioxide at Iowa ethanol and fertilizer plants, use pressure to liquefy it, then sequester it deep underground at locations in North Dakota and Illinois. MidAmerica told the Register Wednesday that it must investigate whether carbon capture is "technically and economically feasible" before it can consider using it.”
CLIMATE FINANCE
E&E News: Citigroup takes hard line with energy-sector investments
By Avery Ellfeldt, 1/20/22
“Citigroup Inc. yesterday became the first major U.S. investment bank to fulfill a key request of climate activists. But the Wall Street giant ignored another green goal in the process,” E&E News reports. “The milestone that Citigroup hit has to do with the way the bank tracks the progress it makes toward eliminating the climate impacts of its loans and investments. By 2030, the bank said it would significantly reduce the total emissions it facilitates in the energy sector. That stance marks a notable departure from other major banks' targets, which so far have focused on improving their clients' energy efficiency in the near term — rather than reducing overall carbon output. Environmentalists welcomed the move, which was unveiled yesterday in an annual sustainability report. But they also highlighted one key shortcoming. Citigroup, like its competitors, didn't meet advocates' demand that Wall Street firms stop doing business with companies that are still expanding oil and gas production. “While an absolute target for energy represents a step forward, Citi has not ruled out expansion of fossil fuels — sidestepping the headline requirement of the [International Energy Agency] net-zero scenario that Citi's energy target is based on,” Jason Opeña Disterhoft, a senior campaigner with Rainforest Action Network, said in a statement… “The targets Citi has laid out aren’t achievable if it continues to fund the expansion of fossil fuel development, and we are hopeful that this assessment period over the next two years will lead to cutting ties with polluters that are failing to change their practices accordingly," Ben Cushing, who leads the Sierra Club's climate finance campaign, told E&E.
Globe and Mail: Financial sector faces climate transition risk, says BoC and banking regulator
MARK RENDELL AND JEFFREY JONES, 1/14/22
“Canada’s long-term economic growth and the stability of its financial system could be put at risk if the country delays implementing policies to deal with the transition to a low-carbon world, the central bank and the banking regulator say in a report analyzing a range of possible climate scenarios,” the Globe and Mai reports. “The goal of the report, the product of a pilot program being run by the two agencies, is to quantify clean energy transition risks – including those related to government policies, like carbon prices, and those related to changing market dynamics… “All scenarios showed that as we globally transition to net-zero, some sectors will be significantly impacted and the economy as a whole will undergo significant structural changes. This transition will prove more challenging in commodity-exporting countries just like Canada,” Toni Gravelle, deputy governor of the Bank of Canada, told reporters. “The pilot also showed that delayed action increases the risks to the financial sector and to the entire economy.” “...The pace of change is crucial to financial stability. The central bank and OSFI looked at four different scenarios. In some of them, policy makers move with great urgency to meet carbon reduction targets, and in others they move more slowly. The report warns that a late and abrupt shift in policy could lead to assets suddenly losing value and a “rapid repricing of climate-related risks.” This could take a toll on the balance sheets of financial institutions that finance carbon-intensive industries.”
TODAY IN GREENWASHING
Bloomberg: ‘Responsibly Sourced' Gas Finds a Niche, But Some Cry Greenwashing
Gerson Freitas Jr, 1/19/22
“From organic chicken to fair-trade coffee, buyers have increasingly shown they’re prepared to pay more for products that meet higher environmental and social standards. The U.S. natural gas sector is wagering its customers will do the same,” Bloomberg reports. “A growing list of companies is getting behind the concept of “responsibly sourced gas,” or RSG. The pitch: Some sources of gas are dirtier than others in terms of the methane emissions associated with production. Utilities under investor pressure to get greener might pay up for the ostensibly cleaner fuel, the thinking goes, making the certification worth the time and money. The idea is rapidly gaining traction among gas evangelists, with one pipeline company estimating operators producing more than a third of U.S. supplies are racing to certify at least some of their output as RSG. It’s also raising hackles among environmentalists who worry that gas producers are seeking to profit by giving their fuel a green sheen without the energy sector doing the hard work of actually moving to cleaner alternatives such as wind or solar. RSG critics also question the role of the third parties offering certifications and warn that rewarding operators for plugging leaks or improving water use—while undeniably positive—sidesteps the fact that gas is still a carbon-intensive fossil fuel that shouldn’t have a place in longer-term U.S. energy goals. “We should be doing all of those things and not asking for extra credit and a gold star,” Cara Bottorff, a senior analyst at Sierra Club in Washington, told Bloomberg. “We definitely feel that it is a lot of greenwashing.” “This is all private; this is not government. There is no agreement on what the heck responsibly sourced gas means. It’s just the companies saying ‘trust us.’”
PTBO Canada: Enbridge Assists Selwyn Fire Dept in Supporting Firefighter Training
1/20/22
“The Selwyn Fire Department with 49 other fire departments is getting $250,000 from Enbridge Gas for educational materials for firefighters to enhance life-saving techniques,” PTBO Canada reports. “The aid is through the Safe Community Project Assist, a program with the Fire Marshal’s Public Fire Safety Council that supplements existing training for Ontario volunteers and composite fire departments in the communities where Enbridge operates. “Safety is our priority. We’re proud to support Ontario firefighters who share our commitment to keeping our communities safe,” says Steve McGivery, Director, GTA East Operations, Enbridge Gas. Since the launch of Safe Community Project Assist in 2012, 244 grants have been provided to Ontario fire departments for additional firefighter training… “Selwyn Fire Department is honoured to have been selected by the Fire Marshal’s Public Fire Safety Council and Enbridge Gas for this valuable donation,” Selwyn Fire Chief Gord Jopling told PTBO.
OPINION
Bloomberg: Environmental Justice Requires a Healthy Democracy
Mustafa Santiago Ali (Ph.D.), is vice president for Environmental Justice, Climate and Community Revitalization at the National Wildlife Federation. He served as assistant associate administrator in the EPA’s Office of Environmental Justice for more than two decades, 1/20/22
“Unless the Freedom to Vote Act and the John Lewis Voting Rights Advancement Act are passed, the U.S. won’t be able to successfully address environmental and health disparities hurting America’s marginalized racial and ethnic communities,” Mustafa Santiago Ali writes for Bloomberg. “Protecting voting rights is essential to securing environmental justice for people and wildlife, he contends… “When states are allowed to limit who can participate in choosing our elected officials, they are perpetuating the inequities that have left communities of color and low-income communities at significantly higher risk of devastating health conditions such as lung and heart disease, asthma, diabetes, lead poisoning, and exposure to harmful chemicals and toxic substances such as PFAS… “These environmental injustices are caused by a political system that has consistently made it harder or even illegal for Black, Latinx, Indigenous, and other communities of color to vote… “Wildlife conservation and environmental justice may seem disconnected, but they complement one another: When people have access to clean air and clean drinking water, so do wildlife… “The only way to create truly durable victories for people and wildlife alike is to strengthen our democracy and ensure everyone has safe and equal access to the ballot box… “It’s true, the past is prologue—and unless our leaders muster the courage to find a way forward on the Freedom to Vote Act and the John Lewis Voting Rights Advancement Act, we will never address the environmental and health disparities keeping a significant number of our fellow Americans from even having a shot at success.”
Global Witness: Three ways President Biden can act on climate without Congress in 2022
1/20/22
"A cry for survival comes from the planet itself. A cry that can’t be any more desperate or any more clear.” Biden spoke these words one year ago in an inauguration speech that promised action on the crises of our time: a raging pandemic, crumbling democracy, and a global climate in distress,” Global Witness writes. “...Entering his second year, Biden must draw on his full executive authority to curb the power of polluters and help protect people and planet. The Build Back Fossil Free coalition, of which Global Witness is a member, has been calling for Biden to embrace the full scale of the climate emergency since Day One by exercising his legal authority outlined in the Climate President Action Plan. Here are three things he can do now. 1. Declare a climate emergency. 2. Direct the Department of Energy (DoE) to curb gas exports. 3. Hold fossil fuel actors accountable for climate disinformation and greenwashing.. “Biden likewise has a crucial role to play in standing up to corporate abuse of power. For instance, he can direct federal regulators at the Federal Trade Commission to investigate the industry’s practice of misleading consumers with deceptive advertisements. So far, this administration is not doing its part to alleviate the planet’s cry.”
The Hill: Gina McCarthy: Why I'm more optimistic than ever on tackling the climate crisis
Gina McCarthy is President Biden’s national climate advisor. She served as the 13th administrator of the Environmental Protection Agency under former President Obama and is the former president of the Natural Resources Defense Council (NRDC), 1/20/22
“Before taking office a year ago, President Biden called and asked me to join his team. I had dedicated my entire career to protecting people from threats to their health, safety and security. I worked under six different governors, including five Republicans. I served as former President Obama’s Environmental Protection Agency administrator. But I had never heard of a job like the one Joe Biden described,” Gina McCarthy writes for The Hill. “As the country’s first-ever "national climate advisor,” the president asked me to assemble leaders across his administration to confront climate change with ambition and creativity. And he challenged me to talk about climate not solely as an existential threat to our lives and livelihoods, but as an opportunity for our country to build a clean energy economy that creates jobs, lowers costs and leaves no worker and no community behind. After one year on the job, I am proud of the progress we have made… “During our first year, we have worked to fulfill the president’s promise to marshal a swift response to the climate crisis centered on growing our economy and benefiting those most burdened by pollution. Now, it’s time to start of the next — and best — chapter. The future is bright for America’s families, workers and businesses with the bipartisan infrastructure law underway and the Build Back Better Act around the corner.”