EXTRACTED: Daily News Clips 12/16/24
PIPELINE NEWS
Milwaukee Journal Sentinel: Enbridge pipeline spills nearly 70,000 gallons of crude oil in Jefferson County
Associated Press: Enbridge pipeline spills 70,000 gallons of oil in Wisconsin
Wisconsin Public Radio: Leaking valve on oil pipeline spills nearly 70K gallons of oil in Jefferson County
Bloomberg: Enbridge Pipeline Says Wisconsin Oil Spill’s Cleanup in Progress
Canadian Press: Enbridge reports 265,000-litre oil spill in Wisconsin
Wisconsin Examiner: Ecological concerns loom as new legal actions filed against Enbridge Line 5
North Dakota Monitor: Landowners, 2 counties appealing Summit pipeline permit
Iowa Capital Dispatch: Pipeline opponents receive cease and desist letters from Summit
Cedar Rapids Gazette: Steve King says Summit threatened him for anti-pipeline speech
Minnesota Star Tribune: Commission approves Minnesota’s first carbon-capture pipeline. Its future hinges on the Dakotas.
WV News: EQT secures $3.5B deal with Blackstone, includes Mountain Valley Pipeline stake
Investing.com: Phillips 66 sells pipeline stake for $865 million
Houston Landing: Dangerous pipelines near roads often have little protection against vehicle crashes
Zacks Equity Research: Williams Companies Files Lawsuit to Protect Pipeline Project
World Pipelines: Boardwalk makes final investment decision on Kosci Junction pipeline project
Bloomberg: UK and Norway Look to Carbon Pipeline Deal as Starmer Visits
Reuters: Shell Terminal in Nigeria Reports Oil Spill Following Pipeline Rupture
WASHINGTON UPDATES
E&E News: Permitting all but out of year-end spending package
Politico: Down To The Wire On Permitting Reform
Politico: Chris Wright Meeting With Democrats
Bloomberg: Biden's Arctic Refuge Oil Lease Auction Ripe For Challenge
E&E News: Feds Race To Ink Union Deals That Last Beyond Trump
E&E News: Cassidy moves to sell Republicans on carbon tariff pitch
Spectrum News: 'We have natural gas, so let's use it': Ohio lawmaker plans a resurgence of liquified natural gas production under Trump administration
North Dakota Monitor: Burgum files appeal to federal agency that he will likely soon oversee
Gas Outlook: U.S. LNG projects receive more than $21bn in tax exemptions: report
STATE UPDATES
Associated Press: Young activists take on a government agency in a Florida climate lawsuit
Reuters: Earthquakes and blowouts undermine case for carbon storage in Texas
Midland Reporter-Telegram: Texas carbon capture faces legal questions over pore space rights
Michigan Advance: Environmental advocates divided as carbon capture bills head to Senate floor
Inside Climate News: A Carbon Capture Project Faces a New Delay in a Year of Slow Progress for Coal Power Plants Looking for Retrofits
E&E News: Energy states wrestle with methane rules as they await Trump
E&E News: EPA may soon green-light California’s clean car rule, setting up Trump fight
Hart Energy: Venture Global’s Plaquemines LNG Starts Production
Allegheny Front: PennEnergy agrees to reduce harmful emissions from oil and gas sites in western Pa.
Inside Climate News: In Houston, a City Council Member Questions ‘Advanced’ Recycling of Plastic and a City Collaboration with ExxonMobil
WBZ News: Dozens of birds undergo cleaning after oil spill in Boston's Muddy River
EXTRACTION
Bloomberg: Canada Weighs Export Taxes on Uranium, Oil If Trump Starts Trade War
Calgary Herald: Despite U.S. tariff threat, three of Canada's biggest oilsands producers aim to spend $13B, grow output next year
Mongabay: Direct air capture climate solution faces harsh criticism, steep challenges
ExxonMobil: Steel, ammonia and AI? Oh my! What can’t our CCS help decarbonize?
Safety 4 Sea: Joint effort looks to establish the largest CCS hub in the world
Bloomberg: Carbon capture's reality check [VIDEO]
The Narwhal: 16 oilsands companies allegedly broke environmental rules. Alberta kept it a secret for 3 years
Bloomberg: Oil Prices Set for New Boom After 2035 on Demand, Rapidan Says
Law360: Spain Can't Enforce €855M Oil Spill Award Against Insurers
CLIMATE FINANCE
Reuters: US House panel finds BlackRock, other asset managers leery of joining climate initiative
TODAY IN GREENWASHING
Elora Fergus Today: Wellington North firefighters get training boost from Enbridge
OPINION
Cedar Rapids Gazette: Thanks to pipeline fighters
Brookings Register: CO2 pipeline saga continues in South Dakota
Bloomberg: Carbon-Capture Promises Require an Unrealistic Land Grab
CleanTechnica: The Carbon Capture Dream Bumps Up Against Reality In Texas
Daily Montanan: ‘Pay to pollute’ plan? Montanans have been there, done that
CT Mirror: Greenwashing by fossil fuel giants misled Connecticut consumers
Portland Press Herald: Maine’s suing Big Oil could bring dollars – and sense
The Hill: Anything short of full repeal of the Inflation Reduction Act is political malpractice
PIPELINE NEWS
Milwaukee Journal Sentinel: Enbridge pipeline spills nearly 70,000 gallons of crude oil in Jefferson County
Drake Bentley, 12/14/24
“An Enbridge Energy pipeline in Jefferson County spilled nearly 70,000 gallons of crude oil underground, according to federal officials,” the Milwaukee Journal Sentinel reports. “The spill is Enbridge's worst in Wisconsin, surpassing a 2012 incident that spilled 50,000 gallons in Adams County. A petroleum pipeline spill was first detected Nov. 11 in the town of Oakland during a routine inspection by an Enbridge technician, according to a recent accident report from the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration. The discharge happened on Line 6, which was built in 1968, and the pumping station was shut down and isolated, the report says. Following excavation of the area, the source of the spill was repaired and the station was returned to service… “Enbridge failed to report a spill in early 2019 for more than a year even though the company was well aware that a large amount of an oil substance had been released near Fort Atkinson, also in Jefferson County. The DNR said at the same time that Enbridge was in violation of the law and could face fines. Midwest Environmental Advocates provides legal support for citizens who exercise their rights to protect natural resources, according to its website. The group's executive director, Tony Wilkin Gibart, said in a statement: "The close to 70,000 gallons of leaking crude oil from Enbridge's Line 6 in Jefferson County shows why we have challenged DNR's approval of the Line 5 reroute and why we have specifically challenged DNR's conclusion that the risk of a Line 5 spill is small. The risks posed by Line 5 are not small. The harm this pipeline would cause to Wisconsin's waters and the climate is guaranteed to be significant and could be catastrophic.”
Associated Press: Enbridge pipeline spills 70,000 gallons of oil in Wisconsin
12/14/24
“Roughly 70,000 gallons of oil from a pipeline spilled into the ground in Wisconsin, officials said,” the Associated Press reports. “The problem was discovered Nov. 11 in Jefferson County, 60 miles west of Milwaukee, by an Enbridge Energy technician, the Milwaukee Journal Sentinel reported, citing a federal accident report. Enbridge said the spill on the company's Line 6 was caused by a faulty connection on a pump transfer pipe at the Enbridge Cambridge Station. It was an estimated 1,650 barrels, which is equivalent to about 70,000 gallons. "Investigation and remediation began immediately upon discovery and continues. Removal of impacted soils is continuing," spokesperson Juli Kellner told AP Saturday, adding that 60% of the spill has been removed through excavation. Kellner told AP the spill was immediately reported to regulators, though the report by a federal pipeline safety agency said the line likely was leaking for an "extended period of time." “...Critics noted the spill was discovered during the same week that Wisconsin regulators approved the first permits for Enbridge's plan to move the aging Line 5 pipeline around the Bad River Band of Lake Superior Chippewa reservation. Opponents said it would still threaten the region's watershed and perpetuate the use of fossil fuels.”
Wisconsin Public Radio: Leaking valve on oil pipeline spills nearly 70K gallons of oil in Jefferson County
Rob Mentzer, 12/14/24
“A valve failure on an Enbridge Energy oil pipeline in Wisconsin caused a spill that dumped some 69,000 gallons of oil into the ground,” Wisconsin Public Radio reports. “The spill happened on the morning of Nov. 11 about four miles east of the village of Cambridge, between Milwaukee and Madison, according to an accident report released this week by the U.S. Department of Transportation… “The failed carbon steel valve was more than five decades old, according to federal data, having been installed in 1973. “Based on the current volume estimates and observed release rate prior to the repair,” the federal report states, “this flange was likely leaking for an extended period of time.” “...With the cost of emergency response and pipeline repairs, the incident is expected to cost nearly $1.1 million… “The company shut down the pipeline for about 10 hours after discovering the spill, according to federal data… “Environmental advocacy groups told WPR the spill shows the risks involved in operating oil pipelines… “The faulty segment on Line 6 in Jefferson County has a leak detection system, but that system failed to even detect the leak—much less prevent tens of thousands of gallons of oil from contaminating surrounding land and water in Jefferson County,” Tony Wilkin Gibart of Midwest Environmental Advocates told WPR.
Bloomberg: Enbridge Pipeline Says Wisconsin Oil Spill’s Cleanup in Progress
Robert Tuttle, 12/14/24
“Enbridge Inc. said Saturday that 60% of the 960 barrels of oil that were spilled on Nov. 11 in Wisconsin has been cleaned up and any affected soil is being removed,” Bloomberg reports. “A faulty connection at a pump transfer pipe at Enbridge Cambridge Station, just west of Milwaukee, was the cause of the spill, Juli Keller, a company spokesperson, told Bloomberg The line, which carries oil from Superior, Wisconsin, to a terminal near Griffith, Indiana, has been repaired and is in operation, she told Bloomberg. The spill, enough to fill nearly three backyard swimming pools, comes as the company is engaged in multiple legal and regulatory battles over its US pipelines.”
Canadian Press: Enbridge reports 265,000-litre oil spill in Wisconsin
12/14/24
“Calgary-based pipeline giant Enbridge says it has cleaned up about 60 per cent of a nearly 265, 000-litre oil spill in Wisconsin that was discovered last month,” the Canadian Press reports. “Enbridge says the spill was discovered by an employee conducting a visual inspection of its Line 6 at the Enbridge Cambridge Station, west of Milwaukee, on Nov. 11… "Removal of impacted soils is continuing," Enbridge told CP… “The spill was discovered during the same week that Wisconsin regulators approved the first permits for Enbridge's plan to move the aging Line 5 pipeline around the Bad River Band of Lake Superior Chippewa reservation in northwestern Wisconsin. Last week, the tribe filed a lawsuit in Ashland County asking a judge to reverse state construction permits.”
Wisconsin Examiner: Ecological concerns loom as new legal actions filed against Enbridge Line 5
Isiah Holmes, 12/16/24
“The land does not belong to us, it is borrowed by us from our children’s children” said Robert Blanchard, chairman of the Bad River Band of Lake Superior Chippewa,” the Wisconsin Examiner reports. “We harvest our wild rice from the waters, we hunt from the land, fish from the lake, streams, and rivers to feed our families and gather the medicines to heal our relatives.” The Bad River Band cites this relationship with the land in its fight against the Enbridge Line 5 pipeline, which has operated in trespass on the Bad River Band’s reservation for years. Now, the Band and its allies are challenging the Wisconsin Department of Natural Resources (DNR) decision to grant permits that the Canadian oil company Enbridge will need to construct a re-route of the pipeline. The new route no longer trespasses on the reservation, it will still run through the Bad River watershed. The tribe and a coalition of state environmental groups say a spill in that area could be devastating. Last Thursday, Midwest Environmental Advocates, 350 Wisconsin, the Sierra Club of Wisconsin and the League of Women Voters of Wisconsin filed a petition for a contested case hearing with the DNR, challenging DNR permitting for Line 5. Shortly after filing the challenge, Midwest Environmental Advocates received a report of a 69,000-gallon oil spill in Jefferson County. According to an accident report shared with Wisconsin Examiner, the spill originated from Enbridge’s Line 6 pipeline… “Tony Wilkin Gibart, executive director of Midwest Environmental Advocates, told the Examiner that the Line 6 spill highlights the dangers of Line 5. “Consider that in the very same week that DNR issued permits for Line 5 based on its conclusion that the risk for a spill would be ‘low,’ DNR was investigating a significant oil leak on another Enbridge pipeline in Wisconsin,” Gibart told the Examiner. “DNR’s reasoning for approving Line 5 defies common sense.”
North Dakota Monitor: Landowners, 2 counties appealing Summit pipeline permit
Jeff Beach, 12/13/24
“A group of landowners and two counties are appealing a North Dakota’s agency’s approval of a large carbon dioxide pipeline,” the North Dakota Monitor reports. “The North Dakota Public Service Commission on Nov. 15 approved a route permit for 333 miles of the Summit Carbon Solutions pipeline in North Dakota… ”Attorney Brian Jorde of Domina Law, which represents landowners across the pipeline area, told the Monitor that there are several problems with the PSC’s findings. He told the Monitor the PSC received plume modeling and dispersion risk analysis as prepared by Summit that would show how CO2 might spread if there was a rupture of the hazardous liquid pipeline. The PSC did not allow the other parties to the case access to the plume information. “This ‘confidential’ information was also shared with other members of the public, yet potentially directly affected citizens engaged in the routing application process were kept in the dark,” Jorde wrote. He said that constituted a violation of due process rights… “The public of North Dakota deserve transparency before hazardous pipelines are forced upon them,” Jorde said. Jorde told the Monitor the landowner appeal will be filed in Burleigh County District Court. The two counties that are appealing are Burleigh and Emmons, both on the main trunk of the pipeline in central North Dakota.”
Iowa Capital Dispatch: Pipeline opponents receive cease and desist letters from Summit
Cami Koons, 12/13/24
“Several opponents of the proposed Summit Carbon Solutions carbon sequestration pipeline have received letters on behalf of the company threatening lawsuits over perceived defamation, an environmental group representative said,” the Iowa Capital Dispatch reports. “Jess Mazour, a conservation program associate with the Sierra Club Iowa Chapter, said in a press release Thursday she received a letter from the company, “threatening to sue for compensatory or punitive damages if statements were not retracted.” “...The letter called the statement “false and defamatory” and said it, combined with Mazour’s “explicitly stated goal” to stop the pipelines, exposes her to “significant legal liability.” “...Mazour said in a call with Iowa Capital Dispatch that she and Sierra Club counsel believe Summit has no “grounds to stand on” with the threatened lawsuit. “This is clearly an intimidation attempt just to keep us quiet and hamper our free speech rights,” Mazour told the Dispatch… “According to the press release from Mazour and the Sierra Club Iowa Chapter, at least six people have received similar letters… “Mazour told the Dispatch the intention of the letters is “intimidation” and urged Iowans to “stand strong when companies take this kind of action.” “It’s just really important that we don’t let this intimidation stop us from doing what’s right,” Mazour told the Dispatch. “It is our responsibility as citizens of the state to protect our land, and our water, and our rights, and our democracy, and no one should stand in the way of that.”
Cedar Rapids Gazette: Steve King says Summit threatened him for anti-pipeline speech
Jared Strong, 12/13/24
“Former Congressman Steve King said he received a letter from Summit Carbon Solutions that demanded he refrain from making false statements about the company and its proposed carbon dioxide pipeline system,” the Cedar Rapids Gazette reports. “The conservative firebrand is among at least six people who were recipients of Summit's cease and desist letters in the past month. At least one of the allegedly defamatory statements dates back to last year, and it's unclear why the company is threatening legal action now. A Summit spokesperson did not respond to a request to comment about the matter. "These are just simply threats that say, 'Shut up or we'll sue you because we don't like the truth and what it does to damage our business model,'" King told radio host Jeff Stein on the Eastern Iowa KXEL radio station Friday. King did not mention what specific comments of his the letter targeted but said it will not deter him from speaking against the company's proposed five-state pipeline system… “Indeed, King spent most of his airtime Friday lambasting the project as "the biggest boondoggle the world has ever seen." He said it would wrongly be funded by billions of dollars of federal tax incentives for carbon sequestration and the production of low-carbon fuels, and would erode landowners' rights if allowed to use eminent domain to force people to host the pipe… “In the Friday radio interview, King criticized Summit's cofounder, Bruce Rastetter, for allegedly using his political connections and wealth to get the project approved… “The Gazette has confirmed these five other recipients: Jess Mazour, of the Sierra Club of Iowa; Trent Loos, a Nebraska farmer and podcaster; Barb Kalbach and Tom Mohan, of Iowa Citizens for Community Improvement; and Robert Nazario, who with King is part of the Free Soil Foundation… “Summit's letters demand that their recipients retract the statements and "refrain from making false and defamatory statements about Summit Carbon Solutions." The letters threaten "alternative legal remedies" and allude to lawsuits.”
Minnesota Star Tribune: Commission approves Minnesota’s first carbon-capture pipeline. Its future hinges on the Dakotas.
Walker Orenstein, 12/12/24
“Minnesota utility regulators on Thursday unanimously approved what would be the state’s first carbon dioxide pipeline, stretching 28 rural miles from an ethanol plant near Fergus Falls to the North Dakota border,” the Minnesota Star Tribune reports. “...The “Midwest Carbon Express” has sparked contentious debate in Minnesota over whether this type of carbon capture benefits the climate — or if it’s worth the health and safety risks of a rupture… “It’s a new concept, we get that,” Republican Public Utilities Commission Commissioner John Tuma, told the Star Tribune. “We’re going to have to try some new things. Some of them will be successful, some of them are going to fail. If we’re really truly about reducing carbon and meeting our 2040 goal, we gotta look at all things.” “...Tuma also told the Star Tribune Republicans under President-elect Donald Trump could eliminate federal tax credits for carbon capture that are important to the project’s viability… “The company has voluntary easements for 89% of the its path in Minnesota. Summit still needs to strike deals with seven landowners… “Yet the pipeline faced local opposition from several environmental nonprofits who argue Summit’s project would push farmers to grow more corn, leading to more emissions and other issues like water pollution. They also fear the captured carbon would be used for oil production. “We have serious concerns that these broader emissions outweigh the amount of carbon that’s captured and sequestered here,” Abigail Hencheck, an attorney for the Minnesota Center for Environmental Advocacy, told the Star Tribune… “Tuma told the Star Tribune environmental groups wanted to make the vote a broader debate about ethanol use in Minnesota rather than focus on how the law applies to this pipeline… “Is it 100 percent sequestering every piece of carbon that hits that ethanol plant in Northern Minnesota? No,” Tuma told the Star Tribune. “But it is ... a net benefit.”
WV News: EQT secures $3.5B deal with Blackstone, includes Mountain Valley Pipeline stake
Charles Young, 12/15/24
“Following its acquisition of Equitrans Midstream in July, natural gas producer EQT has sold a minority interest in some of its assets, including the Mountain Valley Pipeline,” WV News reports. “EQT recently announced it would receive $3.5 billion in cash from Blackstone Credit and Insurance in exchange for “non-controlling” interest in the Mountain Valley Pipeline, its Federal Energy Regulatory Commission regulated transmission and storage assets and the Hammerhead Pipeline. “This transaction underscores the ultra-high-quality nature of EQT’s regulated midstream assets, which service one of the strongest power demand growth regions in the United States underpinned by long-term contracts with the region’s leading utilities,” said EQT President and CEO Toby Rice… “The Mountain Valley Pipeline was originally announced in 2014 at an estimated cost of $4.3 billion. A decade of delays and legal challenges inflated the project’s cost to around $10 billion.”
Investing.com: Phillips 66 sells pipeline stake for $865 million
12/16/24
“Energy company Phillips 66 has reached a definitive agreement to sell its 25% non-operated equity interest in Gulf Coast Express Pipeline LLC to an affiliate of ArcLight Capital Partners,” Investing.com reports. “The deal, announced today, involves a pre-tax cash transaction of $865 million, with adjustments to the purchase price expected. The Gulf Coast Express Pipeline, approximately 500 miles in length, transports around 2 billion cubic feet of natural gas per day from the Permian Basin to the Agua Dulce area in Texas. Upon completion of the sale, the pipeline will be jointly owned by subsidiaries of Kinder Morgan , Inc. and affiliates of ArcLight Capital Partners, LLC. Phillips 66's Chairman and CEO, Mark Lashier, stated that the transaction allows the company to surpass its $3 billion asset divestiture target, a goal set as part of its strategic priorities. Lashier emphasized that the company will continue to optimize its portfolio and rationalize non-core assets. He also highlighted the company's evolution as a leading integrated downstream energy provider, which he believes will enhance shareholder value and position Phillips 66 for the future.”
Houston Landing: Dangerous pipelines near roads often have little protection against vehicle crashes
Alison Young, 12/11/24
“Zoe Espinosa and her daughter Savanna Lee never paid attention to the pipelines dotting the grassy fields near their Deer Park home – or the absence of concrete barriers to prevent vehicles from crashing into them,” Houston Landing reports. “Then one of the pipelines exploded in September – hit by a sports utility vehicle. The crash killed the driver and produced a tower of flames that burned and melted nearby homes, cars and power lines for nearly four days. As she stood on the sidewalk outside her damaged home on a recent afternoon, Espinosa gestured toward newly installed concrete barriers that now surround the natural gas liquids pipeline hit by the SUV. “I don’t understand, how come now they’re barricading that? They should have done that a long time ago,” she told HL as she waited for a contractor to assess what the fire and intense heat did to her roof… “A Houston Landing examination of federal accident reports has found that since 2019, pipeline operators have reported 36 dangerous collisions nationwide – 12 of them in Texas – that involved cars, trucks and other vehicles crashing into above-ground gas transmission and hazardous liquid pipelines… “Despite the potential for catastrophic explosions, fires and damage to the environment, records show regulators give pipeline operators wide discretion to decide on their own how much protection pipes require… “But Energy Transfer officials wouldn’t answer questions about whether their pipeline was sufficiently protected before the Sept. 16 collision. Nor would they discuss the adequacy of barriers at six other pipelines operated by Energy Transfer and its affiliated companies that have leaked or ruptured in recent years when vehicles hit them… “However the explosion and fire in Deer Park – so massive that a Houston astronaut even photographed it from space – highlights whether pipeline structures need to be better protected against vehicle collisions… “Bill Caram, executive director of the Pipeline Safety Trust, a national safety advocacy group, told HL a chain link fence “is more than nothing – but it’s not a whole lot more than nothing.” It’s not going to prevent an act of terrorism, he told HL. And as the Deer Park SUV crash showed, he said, a chain link fence isn’t going to stop a car. “It is the operator’s responsibility to protect the public from these threats,” Caram told HL. “We have seen many times at this point that a chain link fence is not enough. A lot of operators install concrete bollards and other kinds of more durable protection, and that seems to do a much better job protecting the public from damage from vehicles.”
Zacks Equity Research: Williams Companies Files Lawsuit to Protect Pipeline Project
12/11/24
“The Williams Companies, Inc. has filed a big lawsuit against industry rival Energy Transfer LP ET accusing it of the alleged obstructions leading to delay in Williams’ Louisiana Energy Gateway (LEG) pipeline project,” Zacks Equity Research reports. “ William’s chief executive highlighted the probable risks of the case along with delaying its project deadline, threatening to disrupt the industry norms and fair competition. The reason behind the dispute was the construction of the 1.8 billion cubic feet per day LEG pipeline in northern Louisiana, a project important to meet WMB's vision of strengthening gas supply for upcoming LNG export terminals. WMB’s pipeline under this project would have crossed under ET’s Tiger pipeline, situated in the Haynesville shale, which was objected to by ET, citing concerns of excessive crossings. Meanwhile, Williams argued that these refusals were less based on technical factors and more based on market control.”
World Pipelines: Boardwalk makes final investment decision on Kosci Junction pipeline project
Alfred Hamer, 12/16/24
“Boardwalk Pipelines, LP's Board of Directors is announcing that it has made a final investment decision approving Gulf South Pipeline Company, LLC's (Gulf South) 1.16 billion f3/d Kosciusko Junction pipeline project (Kosci Junction Project),” World Pipelines reports. “The Kosci Junction Project will consist of building approximately 110 miles of 36 in. pipeline and compression. The project is supported by a 20 year agreement with an anchor customer, and Gulf South is currently in negotiations with customers for the remaining capacity, which could be as large as 1.58 billion f3/d. The Kosci Junction Project is designed to connect supply from the Haynesville, Utica/Marcellus, and Fayetteville basins to markets in the southeast US that are tied into Gulf South's existing system or served through new and existing pipeline interconnects… “Gulf South intends to file to enter the Federal Energy Regulatory Commission (FERC) pre-filing process in the 1Q25 and file its FERC certificate application as early as the 3Q25 with a target in-service date of the 1H29.”
Bloomberg: UK and Norway Look to Carbon Pipeline Deal as Starmer Visits
12/16/24
“Britain and Norway are set to announce plans for an industrial partnership for green energy including a future arrangement to transport of carbon under the sea,” Bloomberg reports. “The broad agreement, to be signed in 2025, “will support our aim to secure home-grown energy,” according to a statement from the UK government. It will include “enhanced cooperation across a range of sectors,” the document said, without providing specifics, and help support jobs related to carbon-capture. Prime Minister Keir Starmer is visiting the Nordic country on Monday. Britain and Norway have also agreed to work to clear up issues associated with the storage and transport of carbon under the North Sea… “Starmer and Norwegian Premier Jonas Gahr Store are set to visit the Northern Lights carbon capture project, as well as the Haakonsvern naval base near Bergen… “The UK recently signed off on almost £22 billion ($27.9 billion) in spending over 25 years for carbon capture at two sites in Britain. It will will need to spend significantly more to reach its previous goal to capture at least 20 million tons of CO2 by the end of the decade.”
Reuters: Shell Terminal in Nigeria Reports Oil Spill Following Pipeline Rupture
Camillus Eboh, Chijioke Ohuocha, 12/16/24
“An oil spill has occurred at the Shell loading terminal in Nigeria's Delta region after a pipeline ruptured, Nigeria's maritime agency said on Sunday,” Reuters reports. “The Nigerian Maritime Administration and Safety Agency (NIMASA) said the spill which occurred on Saturday at the Bonny terminal has reached shoreline and that it was actively monitoring the situation…”The maritime agency said SPDC has shut down the affected pipeline and deployed containment booms to protect neighboring communities.”
WASHINGTON UPDATES
E&E News: Permitting all but out of year-end spending package
Kelsey Brugger, 12/14/24
“A last-gasp effort to attach a permitting package to year-end spending and disaster legislation has failed, several people familiar with the situation told E&E News. Others told E&E talks are still ongoing. Lawmakers like Senate Energy and Natural Resources Chair Joe Manchin (I-W.Va.) and House Natural Resources Chair Bruce Westerman (R-Ark.) have been trying to secure a deal to bolster the electric grid and ease the approval process for all types of energy projects. But they have been unable to clinch an agreement acceptable to all sides, people familiar with the situation who were granted anonymity to speak candidly told E&E “Negotiators made a lot of progress to close the gap, but the speaker pulled the plug,” one person told E&E about House Speaker Mike Johnson (R-La.), who has been eager to finish the last major bills of the year for release by Sunday… “A lot of progress was made on negotiations, but Speaker Johnson killed permitting. Chairman Carper wants to keep working to find a deal if House leadership comes back to the negotiating table,” a Democratic aide told E&E.”
Politico: Down To The Wire On Permitting Reform
12/16/24
“Time is rapidly running out for efforts to attach bipartisan permitting reforms, S. 4753 (118), to the must-pass continuing resolution needed to keep the government funded past this week,” Politico reports. “The situation remains hairy, with some sources telling Politico the efforts have failed and others claiming a deal is close. The main bone of contention appears to be related to injunctive relief and remand for legal challenges to reviews conducted under the National Environmental Policy Act. But the ultimate resolution remains pending as an impasse over farm aid has delayed finalization of the package.”
Politico: Chris Wright Meeting With Democrats
12/12/24
“Trump’s nominee to lead the Energy Department, Chris Wright, is holding his first meetings with non-Republican senators, who plan to question him on his controversial climate views,” Politico reports. “Sen. John Hickenlooper (D-Colo.), a member of the Energy Committee that oversees DOE, told Politico he is meeting with Wright this weekend in Colorado. The two have a long-standing relationship since Wright is from Colorado and his fracking services company, Liberty Energy, is based there… “But I am not going to dodge anything,” Hickenlooper told Politico. “I will give everybody that opportunity to make their case. He’ll get his fair shake.” Sen. Angus King, the Maine Independent who caucuses with Democrats, told Politico he also plans to meet with Wright next week and question him about climate change.”
Bloomberg: Biden's Arctic Refuge Oil Lease Auction Ripe For Challenge
Bobby Magill, 12/12/24
“The Biden administration’s decision to include restrictions in the auction of oil drilling rights in part of Alaska’s Arctic National Wildlife Refuge is legally vulnerable as the state looks to the next administration to allow more oil development,” Bloomberg reports. “The Bureau of Land Management on Monday finalized a decision to lease 400,000 acres of the Arctic coastal plain within ANWR for oil and gas development as required under a 2017 tax law. The lease sale, scheduled for Jan. 9, is the second of two such sales that the law requires. The decision included a long list of restrictions on drilling, such as keeping more than 1 million acres of the coastal plain unavailable for leasing and blocking all land-surface development on 58% of the land area included in the lease sale. Of the 400,000 acres up for lease, the BLM expects just 995 surface acres to be developed as wells tap a far greater area underground. The bureau’s decision says the leasing plan effectively upholds the refuge’s mission to protect ecosystems while also allowing for oil drilling.”
E&E News: Feds Race To Ink Union Deals That Last Beyond Trump
Kevin Bogardus, Robin Bravender, Scott Streater, 12/12/24
“Federal employees in environmental and energy agencies are racing to lock in or extend union contracts in the waning days of President Joe Biden’s term with hopes of shielding employees from the incoming Trump administration,” E&E News reports. “Recently finalized union agreements and others still in the works would cement telework and other benefits as President-elect Donald Trump and his supporters aim to push workers back into the office five days per week and make it easier to fire government employees. The lame-duck union contract moves have already drawn scrutiny from Trump’s team and members of Congress, and experts predict the incoming president will attempt to test their durability. Vivek Ramaswamy, one of the leaders of Trump’s so-called Department of Government Efficiency, has already publicly complained about federal employees extending their collective bargaining agreements to last beyond the incoming administration. Unions representing workers at EPA and the Interior Department are among those who have recently approved agreements or are working with the Biden team to complete or extend their contracts.”
E&E News: Cassidy moves to sell Republicans on carbon tariff pitch
Emma Dumain, 12/12/24
“Louisiana Republican Sen. Bill Cassidy is making his hardest sell yet on conservative legislation linking climate action with trade policy,” E&E News reports. “In a bid to build support for his proposal even before the start of the next Congress, the Cassidy on Wednesday unveiled a slimmed-down, 20-page “discussion draft” version of his year-old, 100-page “Foreign Pollution Fee Act.” “...At its core, the purpose of the retooled “Foreign Pollution Fee Act” remains the same as the original: Leverage data showing that the United States produces certain materials “cleaner” than foreign adversaries — namely China — and impose a fee on certain imports. The fee would still only affect foreign products, continuing to ignore the argument from many Democrats and advocates that a domestic price on carbon is necessary for any new trade policy to meet compliance with the World Trade Organization… “The new language would significantly narrow down the list of foreign-made products that would be subject to an import fee. The original bill included energy imports like oil, natural gas, hydrogen, minerals, solar panels and wind turbines. So-called “covered products” in the new bill would include only aluminum, cement, glass, iron, fertilizer and steel. The decision to omit fossil fuels strikes some experts as counterproductive if one of the bill’s goals is to, according to a press release, “reward investments in decarbonization.” “...One such industry is the domestic oil refiners, who could see their supply of crude oil and petroleum affected if imported oil and petroleum are levied with a fee under Cassidy’s bill. Refiners were among those who lobbied hard earlier this year against separate bipartisan, bicameral legislation — the “Providing Reliable, Objective, Verifiable Emissions Intensity and Transparency (PROVE IT) Act” — which would call for a study of the carbon intensity of nearly three dozen industrial products made the U.S. in anticipation for being slapped with carbon tariffs in the coming months by the European Union and the United Kingdom.”
Spectrum News: 'We have natural gas, so let's use it': Ohio lawmaker plans a resurgence of liquified natural gas production under Trump administration
Harri Leigh, 12/12/24
“When President-elect Donald Trump takes office next month, Republicans in Congress see an opportunity to roll back some of President Joe Biden’s green energy and climate policies,” Spectrum News reports. “...At last month’s United Nations Conference on Climate Change, Rep. Troy Balderson, R-Ohio, called for the “return of American energy leadership.” He said the solution lay beneath our feet—specifically in natural liquified gas (LNG) from the Utica and Marcellus Shales, parts of which stretch across his district east of Columbus. “We have natural gas. It's 98% carbon free,” Balderson told Spectrum News. “We have a very safe and efficient way to get base-load energy with natural gas. In southeastern Ohio, we have over 100-year supply of natural gas, so let's use it.” “...Balderson said more natural gas was also necessary to meet the nation’s growing demand for electricity, especially in the industrial sector. “We need to make sure that we not only provide them with base-load energy but also we have, more importantly for our constituents, our homeowners, that their lights stay on, too,” he said… “We want that ban to be lifted,” Balderson said. “We were really disappointed in that, and I think there's going to be a study coming out that will show the impact that it was, and how it impacted the LNG.” “...Balderson also wants to cut red tape on new energy projects, which he pointed out applies to both fossil fuel and renewable energies… “To that end, Balderson introduced the GRID Power Act, which would fast track new power projects connecting to the electricity grid.”
North Dakota Monitor: Burgum files appeal to federal agency that he will likely soon oversee
Mary Steurer, 12/13/24
“North Dakota Gov. Doug Burgum on Thursday filed an appeal to a proposal by the Bureau of Land Management to make hundreds of thousands of acres of federal oil, gas and coal in the state unavailable for leasing,” the North Dakota Monitor reports. “The 25-page document is the state’s third attempt to push back against the federal agency’s plan. It followed a September protest letter, a consistency review filed by Burgum in October, and a response from the BLM sent to the state last month. Burgum has since been named President-elect Donald Trump’s pick to be the next secretary of the Interior, which includes the Bureau of Land Management. He filed the appeal as one of his last acts after eight years as governor. In the appeal, Burgum warned the proposal would reduce state oil and gas revenues by $34 million per year and eliminate thousands of coal-related jobs.”
Gas Outlook: U.S. LNG projects receive more than $21bn in tax exemptions: report
Nicholas Cunningham, 12/10/24
“U.S. LNG projects receive billions of dollars’ worth of subsidies from local and state governments, while the communities that host them pick up the tab for the pollution they cause, according to a new report,” Gas Outlook reports. “In Texas and Louisiana, it is common for LNG plants to obtain exemptions on property taxes. For instance, one programme in Louisiana, the Industrial Tax Exemption Program (ITEP), exempts industrial facilities from property taxes for ten years. A similar programme exists in Texas. Property tax exemptions may seem minor, but they can add up to enormous sums. Nine proposed and existing LNG facilities in Texas and Louisiana are set to receive a combined $21.6 billion in property tax exemptions over ten years, according to a recent analysis from the Sierra Club. The largest recipient is Cheniere Energy’s Sabine Pass LNG site, which will receive $4.9 billion under Louisiana’s ITEP programme, according to the analysis. Cameron LNG will receive $3.7 billion, and Calcasieu Pass will enjoy $2.9 billion in property tax exemptions. Venture Global’s CP2, an expansion of Calcasieu Pass, will access an additional $2.7 billion in exemptions.”
STATE UPDATES
Associated Press: Young activists take on a government agency in a Florida climate lawsuit
Kate Payne, 12/13/24
“A group of young people in Florida say they believe the state’s continued reliance on fossil fuels is a violation of their constitutional rights and are suing the state agency that regulates public utilities in the hopes of forcing the energy companies to transition toward renewable energy sources,” the Associated Press reports. “The case is one in a string of lawsuits filed by kids and teenagers across the U.S. in recent years as climate activists turn to the courts for action. Additional plaintiffs joined the lawsuit against the Florida Public Service Commission this week after it was initially filed in October. The activists, ages 18 to 25, are taking aim at the agency’s practice of routinely approving the long-range plans of public utility companies to continue their reliance on fossil fuels, despite provisions in Florida law outlining the state’s intention to “reduce atmospheric carbon dioxide by promoting an increased use of renewable energy resources and low-carbon-emitting electric power plants.” The plaintiffs say Florida’s continued use of greenhouse gas-emitting energy sources is fueling deadly heat, flooding rains and rising seas. The lawsuit claims that by furthering the state’s dependence on fossil fuels, the commission is violating young people’s “fundamental and inalienable right to enjoy and defend life,” as guaranteed by the Florida Constitution, by threatening their ability to live in the state in the future. “Why can’t future generations also enjoy the beauty and unique environment that we have here, just because of what our legislators and our governor and our state agencies are doing?” lead plaintiff Delaney Reynolds told AP.”
Reuters: Earthquakes and blowouts undermine case for carbon storage in Texas
Valerie Volcovici and Leah Douglas, 12/13/24
“Texas has seen surging interest from companies hoping to bury carbon dioxide in its oilfields, putting the state at the vanguard of a government-subsidized program to fight climate change. But pumping CO2 into the ground could exacerbate earthquakes and well blowouts already happening in the Permian Basin as Texas struggles to manage wastewater disposal, potentially undermining public support,” Reuters reports. “Without legitimate oversight of underground injection in Texas, we expect more geyser-like well blowouts, sinkholes, leaks from plugged and unplugged wells, and injection-induced earthquakes,” Virginia Palacios, executive director of Commission Shift, a Texas watchdog group pushing for tougher oversight of the oil and gas industry, told Reuters… “The unprecedented vast volume of carbon now proposed for burial, however, worries activists and researchers… “Over the last 12 months, the number of applications filed with the Environmental Protection Agency for carbon injection permits in Texas has jumped by 63% to 43, according to the agency, making it a national leader. But Texas is dogged by problems linked to disposal of drilling wastewater underground. The Texas Railroad Commission (RRC) regulator has grappled with leaks and blowouts from orphan wells, as well as earthquakes, triggered by higher pressure underground from water injection. Reuters spoke with a dozen Texas landowners and researchers who said proposed CO2 projects need more oversight than the state can offer to avert environmental and safety risks… “A pilot project by agribusiness ADM in Illinois, the first of its kind meant to demonstrate the technical feasibility of commercial carbon injection, has suffered leaks and other setbacks, underscoring worries… “Dominic DiGiulio, an independent energy analyst and former EPA official who has studied CCS, told Reuters, however, that CO2 can corrode the cement casings of plugged wells. “These abandoned wells will in fact leak,” he told Reuters. A 2023 paper by Chinese researchers, published in Earth-Science Reviews, said CO2 injection could also boost the risk of earthquakes… “This is supposed to be permanent storage,” Carolyn Raffensperger, executive director of the Science and Environmental Health Network, told Reuters. “If it can’t even contain it for 10 years, why do we think it can contain it forever?” she added, referring to ADM’s project.”
Midland Reporter-Telegram: Texas carbon capture faces legal questions over pore space rights
Mella McEwen, 12/13/24
“Carbon capture and sequestration is soaring, but legal questions are being raised along with that growth,” according to the Midland Reporter-Telegram. “Pore space is what’s being used up. It’s not clear in Texas who owns that pore space,” Stuart MacDonald, senior lecturer of management within the College of Business at The University of Texas Permian Basin, said this week while addressing the annual CO2 Conference… “Katharine Harrell, program coordinator for UTPB's Energy Land Management program and overseer of the business law classes, told the audience there are two areas of thought on the question. “One is the English rule, which says (pore space) belongs to the mineral owner who created that space. Then there’s the American rule, which says the surface owner owns that space.” While the question is not yet settled in Texas, she said it’s likely the state will follow the American rule… “MacDonald said the uncertainty is hindering the ability to make deals for carbon capture projects because “you can’t make deals without risk of litigation.” Harrell noted there are also questions about trespass, even subsurface trespass… “MacDonald said oil and gas unitization may provide some direction when it comes to settling liability issues for carbon sequestration. “We may need something like the unitization statute that lets mineral owners, surface owners, working interest owners come together to renegotiate contracts,” he said.
Michigan Advance: Environmental advocates divided as carbon capture bills head to Senate floor
Kyle Davidson, 12/13/24
“Members of the Senate Energy and Environment Committee charged forward Thursday on a bipartisan proposal to grant Michigan authority over carbon capture and storage facilities, returning the bills to the Senate floor with a favorable recommendation,” Michigan Advance reports. “Announced on Nov. 25, Senate Bills 1131–1133 look to create a state-level body to oversee the permitting and regulation of carbon capture facilities to capture carbon dioxide (CO2) emissions from man-made sources for reuse or storage in underground formations… “Backing the bills is the MI Safe Utilization of Carbon Capture for Environmental & Economic Success (SUCCESS) coalition, made up of the Michigan Laborers District Council, The Nature Conservancy, the Michigan Agri-Business Association, the Foundry Association of Michigan, the Michigan Manufacturers Association, DTE, Consumers Energy, Dow Inc., Linde Plc., the Michigan Oil and Gas Association and the Michigan Chamber of Commerce… “While the proposal also received support from the Michigan Department of Environment, Great Lakes and Energy, a number of environmental organizations have stood in opposition to the bills, warning that additional safeguards and consideration are needed before the bills move forward. “Rushing carbon capture and sequestration legislation through during lame duck is short-sighted and risks leaving critical questions unanswered,” Evergreen Action Midwest Senior Deputy Director Courtney Brady told the Advance. “Lawmakers need to take the time to ensure these policies align with Michigan’s clean energy goals, include robust safeguards to protect groundwater and communities, and avoid burdening energy ratepayers with higher costs.” In written testimony submitted to the committee, the Michigan Environmental Council warned that leaks from pipelines used to transport carbon emissions to storage sites and the sites themselves have contaminated ground and drinking water… “These facilities also have the potential to increase emissions, the council noted, as energy is needed to run carbon capture technology. The Michigan Environmental Justice Coalition also argued that carbon capture is not a viable solution for addressing climate change… “However Richard Bowman, director of policy for the Nature Conservancy told the Advance there’s a challenge in letting the perfect be the enemy of the good.”
Inside Climate News: A Carbon Capture Project Faces a New Delay in a Year of Slow Progress for Coal Power Plants Looking for Retrofits
Dan Gearino, 12/10/14
“Project Tundra, a plan to retrofit a North Dakota coal plant with carbon capture technology, has hit a snag following the departure of the lead contractor,” Inside Climate News reports. “Before that departure, the utility overseeing the project, Minnkota Power Cooperative, had said it would decide this year whether to move forward with the multibillion-dollar plan. “We are continuing to move forward with development efforts and remain optimistic about Project Tundra’s future,” Ben Fladhammer, a spokesman for Minnkota, told ICN. He gave no timetable for next steps, and told ICN timing would depend on many factors, including the availability of federal funding, federal environmental rules and changes to project costs due to inflation. The project’s challenges cap a year in which there have been few signs of progress for U.S. coal-fired power plants whose owners are studying retrofits that would involve carbon capture systems. This is despite substantial funding of carbon capture efforts by the Biden administration. The incoming administration of President-elect Donald Trump supports funding of carbon capture while also wanting to reduce regulations that have the effect of forcing coal plants to implement that technology. North Dakota Gov. Doug Burgum, Trump’s nominee for secretary of the interior, is one of several appointees who have touted carbon capture as a viable way to allow coal plants to operate in an environmentally friendly manner. But enthusiasm about carbon capture has yet to translate to substantial emissions reductions, and environmental advocates have long criticized the use of the technology for power plant retrofits as a boondoggle with high costs, steep technical challenges and an overreliance on taxpayer money… “The main reason not to move forward with the projects is the cost. Prairie State’s study includes an estimated capital cost of $2 billion to install a system that would capture and store 95 percent of the plant’s carbon emissions. In addition, the system would cost about $175 million per year for operation and maintenance… “Some researchers and environmental advocates worry that the results would be expensive systems that don’t capture much carbon.”
E&E News: Energy states wrestle with methane rules as they await Trump
Shelby Webb, 12/16/24
“State agencies that worked for years on plans to meet the Biden administration’s energy and environmental policies are facing the reality that efforts to tackle methane emissions could be moot once President-elect Donald Trump takes office next month,” E&E News reports. “Officials from energy-producing states are struggling to figure out which rules will stick, which will likely be trashed and what to do in the absence of definitive information about what happens next. Signals from Washington in the months ahead may determine how plans change in jurisdictions across the country… “Most of the work to change state-level oversight of the oil and gas industry has been focused on monitoring compliance with new federal rules around the industry’s methane emissions… “But making changes to some of the methane rules put in place under President Joe Biden may be more difficult, Jeff Wood, a partner at the Baker Botts law firm in Washington, told E&E, thanks largely to the 2022 Inflation Reduction Act… “A fully GOP-controlled Congress could prevent implementing regulations for the fee through the Congressional Review Act (CRA), or it could repeal the Inflation Reduction Act altogether through budget reconciliation. But both avenues could be difficult to achieve… “There also are various lawsuits working their way through federal courts over other rules. The Supreme Court denied requests to stay EPA’s power plant rule and also refused to issue a stay for the rule requiring oil and gas operators to update their infrastructure. Lawsuits on those issues remain ongoing, but state agencies are still compelled to comply with them.”
E&E News: EPA may soon green-light California’s clean car rule, setting up Trump fight
Mike Lee, 12/16/24
“The Biden administration will likely let California enact its aggressive rule to phase out gasoline-powered cars, setting up a conflict between the state and the incoming Trump administration,” E&E News reports. “California’s regulation, known as Advanced Clean Cars II, would require automakers to sell increasing percentages of electric vehicles, effectively banning the sale of new gas cars by 2035. The state is allowed under the Clean Air Act to set stronger auto pollution standards than the federal government — but each new regulation needs a waiver from EPA… “EPA spokesperson Nick Conger told E&E that the agency is still reviewing the California regulation “to make sure its decisions are durable and grounded in the law.” President-elect Donald Trump has pledged to block the California regulation, and he’ll likely have backing from many automakers. But that move — along with Trump’s plans to curtail federal EV incentives — could reopen old divisions in the car industry.”
Hart Energy: Venture Global’s Plaquemines LNG Starts Production
Sandy Segrist, 12/15/24
“Venture Global’s Plaquemines LNG has started production, the company said Dec. 14,” Hart Energy reports. “Industry watchers have been watching for the news over the past two months, as permits from the Federal Energy Regulatory Commission were granted and an LNG tanker, the Venture Bayou, moored next to the plant in mid-November in Port Sulphur, La.”
Allegheny Front: PennEnergy agrees to reduce harmful emissions from oil and gas sites in western Pa.
Julie Grant, 12/12/24
“The Department of Justice, Environmental Protection Agency, and Pennsylvania Department of Environmental Protection on Tuesday announced a proposed settlement with PennEnergy Resources, an oil and gas development company based in Cranberry Township,” Allegheny Front reports. “ If the court approves, PennEnergy will pay a $2 million civil penalty, split equally between the federal and state governments, and reduce pollution from its facilities… “In 2018, EPA found the alleged Clean Air Act violations on 16 well pads owned by the company in Butler and Lawrence counties. Methane gas, a climate pollutant, was being directly released into the air instead of captured and controlled using specially designed equipment, along with volatile organic compounds or VOCs, which contribute to ground-level ozone or smog and can cause health problems… “Under the consent decree, PennEnergy will undertake projects at 49 oil and gas facilities in Butler and Lawrence counties to “assess, modify and improve monitoring and maintenance of vapor control systems,” according to a press release sent out by the agencies.”
Inside Climate News: In Houston, a City Council Member Questions ‘Advanced’ Recycling of Plastic and a City Collaboration with ExxonMobil
James Bruggers, 12/13/24
“A new report by an at-large Houston City Council member criticizes the form of “advanced” or “chemical recycling” of plastics known as pyrolysis, a controversial method city officials are backing through a partnership with ExxonMobil,” Inside Climate News reports. “The report from Councilmember Letitia Plummer, who is elected by voters across the city, warns that this technology, which ExxonMobil has integrated into its giant Baytown petrochemical complex along the Houston Ship Channel, “continues to encourage fossil fuel extraction while generating hazardous emissions.” The report echoes other findings and a California lawsuit that only a small percentage of plastic that enters the pyrolysis process results in reusable plastic materials, specifically propylene and ethylene. The large majority “becomes various chemical byproducts, many of which are burned as fuel, leading to further greenhouse gas emissions,” the report said… “Environmental groups view it as tantamount to incineration, and the U.S. Environmental Protection Agency does not recognize turning plastic waste into fuel as recycling. Plummer recommends the city reconsider its backing of pyrolysis and focus on reducing reliance on single-use plastics—the products used once and thrown away—while investing more in traditional recycling technologies that do not rely on chemical processing… “Jennifer Hadayia, executive director of the environmental nonprofit Air Alliance Houston, cheered the councilmember’s report.”
WBZ News: Dozens of birds undergo cleaning after oil spill in Boston's Muddy River
Logan Hall, 12/13/24
“Staff at the New England Wildlife Center are hard at work cleaning dozens of birds after 100 gallons of oil spilled into Boston's Muddy River earlier this week,” WBZ News reports. “At the center in Barnstable, staff are working around the clock to clean the 43 ducks and geese. "Shifting our resources a little bit to back up the hospital. Forty-three is a lot of birds but we're very lucky we have trained teams here washing, two teams today. It's a hard process but we are dedicated to it," New England Wildlife Center CEO Zak Merz told WBZ. "Our staff has been here morning, noon and night." Merz told WBZ the recent oil spill is part of a much larger problem, one that the wildlife center has taken seriously, putting together a plan and being ready to jump into action. "Oil spills are a fact of life. We have a lot of commerce, we still rely heavily on petroleum products. And so it's something you have to prepare for and it's part of the New England Wildlife Center's mission to be there for disaster response and particularly oil spills.” “...It takes over an hour to clean each bird, using hot water and dish soap… “After getting the oil off, doctors will continue to monitor the ducks and geese for a few more weeks before they're released back into the wild.”
EXTRACTION
Bloomberg: Canada Weighs Export Taxes on Uranium, Oil If Trump Starts Trade War
Brian Platt, 12/12/24
“Canada is examining the use of export taxes on major commodities it exports to the US — including uranium, oil and potash — if incoming President Donald Trump carries out his threat to impose broad tariffs,” Bloomberg reports. “Export levies would be a last resort for Canada, officials familiar with the discussions inside Prime Minister Justin Trudeau’s government told Bloomberg. Retaliatory tariffs against US-made goods, and export controls on certain Canadian products, would be more likely to come first, the people told Bloomberg. But commodity export taxes — which would drive up costs for US consumers, farmers and businesses — are a real option if Trump decides to start a full-scale trade war, the officials, speaking on condition they not be identified, told Bloomberg… “Canada is by far the largest external supplier of oil to the US; some refineries depend on buying cheaper Canadian heavy crude and have few alternatives to it. The US Midwest would be hit particularly hard by higher costs. Fuel makers in the region rely on Canada for almost half of the crude they turn into gasoline and diesel… “For those reasons, some observers have told Bloomberg they expect Trump will exempt commodities from his threat to place 25% levies on goods from Mexico and Canada, and focus instead on using tariffs against their manufacturing industries.”
Calgary Herald: Despite U.S. tariff threat, three of Canada's biggest oilsands producers aim to spend $13B, grow output next year
Chris Varcoe, 12/13/24
“If three of Canada’s largest oil producers are nervous about the upcoming year’s challenges — from volatile prices to potential U.S. tariffs on the country’s exports — they’re not showing signs of it,” the Calgary Herald reports. “On Thursday, integrated petroleum producers Imperial Oil, Suncor Energy and Cenovus Energy released their capital budgets and production outlooks for 2025, with $13 billion of combined capital expenditures on the books. As the industry gears up for a new year with an unsteady global demand picture and geopolitical uncertainty — including the possibility of 25 per cent U.S. tariffs on all Canadian exports — the trio of oilsands producers shared something in common. “All three are showing production is going up,” analyst Phil Skolnick with Eight Capital in New York told the Herald. “They see rising demand — and rising demand for heavy oil. And it’s also that, for the first time in a number of years, there’s excess (pipeline) capacity, so they’re taking advantage of it.” “...However, the biggest uncertainty for Canadian producers could come from incoming U.S. president Donald Trump. He’s threatened to slap a 25 per cent tariff on all imports from Canada — its largest supplier of foreign energy — and Mexico unless they halt illegal drugs and migrants from entering the country. Skolnick doesn’t believe the U.S. will place tariffs on Canadian oil, as American refiners rely on heavy crude from north of the border, and he expects the new administration will keep or enhance sanctions on other countries such as Iran and Venezuela. Premier Danielle Smith told reporters on Thursday she wouldn’t support counter-tariffs being put on Alberta oil and natural gas destined for the United States, calling it a “terrible idea.”
Mongabay: Direct air capture climate solution faces harsh criticism, steep challenges
Sean Mowbray, 12/13/24
“Direct air capture — geoengineering technology that draws carbon dioxide from the air, allowing it to be stored in geologic formations or used by industry — is being heavily hyped as a climate solution,” Mongabay reports. “But as direct air capture (DAC) pilot projects an startups grow in number around the world, fueled by investment and government funding in the U.S. and elsewhere, this proposed climate solution is becoming ever more divisive. Critics paint DAC as a costly, ineffective distraction from drastically slashing fossil fuel extraction and emissions. The use of captured carbon by the fossil fuel industry to squeeze ever more oil from wells comes in for particularly sharp criticism. Though carbon dioxide removal (CDR) may be needed to help limit the worst impacts of global warming, experts say betting on direct air capture is riddled with challenges of cost and scale. Two hurdles: sourcing sufficient renewables to power DAC facilities, and minimizing carbon-intensive DAC infrastructure… “But this would-be heavy-industry geoengineering solution remains mired in controversy as it faces real-world questions of cost, scale and viability… “But the technology is contentious, with DAC development tied closely to oil and gas interests. And with critics skeptical about DAC’s effectiveness along with the mammoth challenge of finding sufficient sources of renewable power to run energy-guzzling DAC facilities. “I think [DAC] is intentionally distracting us from actually reducing emissions,” Jonathan Foley, executive director of Project Drawdown, an NGO, told Mongabay. “We’ve maybe at most removed a few seconds of the world’s emissions after spending billions and billions of dollars which would have been better spent elsewhere.” “...Some analysts say the challenges posed by DAC make it a moonshot bet at best, though that has yet to deter investors… “But controversy seems bound to continue swirling around DAC’s oil industry connection, its viability and scalability.”
ExxonMobil: Steel, ammonia and AI? Oh my! What can’t our CCS help decarbonize?
12/13/24
“If you’re keeping tabs on carbon capture and storage, you already know ExxonMobil’s doing more than any other company to advance this emissions-reduction technology. Our customers include key industries such as steel, ammonia and hydrogen. So far, we’ve agreed to transport and store up to 6.7 million tons of captured CO2 a year for these customers – far more than any other company. But beyond those numbers is a bigger story: the expanding breadth of industries we’re serving. In fact, right now ExxonMobil is well along in a plan to leverage our carbon capture and storage (CCS) system to generate low-carbon electricity for data centers in the United States. That’s right: data centers. We’re working to develop a solution to meet the urgent need for computing power driven by the increasing use of artificial intelligence (AI). We believe this area could account for up to 20 percent of the total addressable market for CCS in 2050. Our project would be a first of its kind. As outlined today in our corporate plan update, here’s how it would work: We’d build a facility that would use natural gas to generate a significant amount of high-reliability electricity for a data center, and look for opportunities to source low-carbon-intensity natural gas like the kind we’re producing in the Permian Basin. We’d use carbon capture to remove more than 90 percent of the associated CO2 emissions, then transport the captured CO2 to safe, permanent storage deep underground. The facility would be detached from existing grid infrastructure, as well as independent of utility timelines. This means it can be installed at a pace that other alternatives, including U.S. nuclear power, cannot match… “It’s no coincidence that all our CCS customers (so far) are in U.S. Gulf Coast states. The region has a trifecta of advantages: a large concentration of industries, access to existing CO2 pipelines and proximity to large CO2 storage sites. Other areas of the world are working to advance CCS, but none has this much going for it.”
Safety 4 Sea: Joint effort looks to establish the largest CCS hub in the world
12/16/24
“Aramco has signed a shareholders’ agreement with Linde and SLB, paving the way for development of a Carbon Capture and Storage (CCS) hub that is expected to become one of the largest globally,” Safety 4 Sea reports. “Under the terms of the shareholders’ agreement Aramco will take a 60% equity interest in the CCS hub, with Linde and SLB each owning a 20% stake. With the support of the Ministry of Energy, phase one of the new CCS hub in Jubail, in the Kingdom of Saudi Arabia’s Eastern Province, is expected to capture and store up to nine million metric tons of CO2 annually, and construction is expected to be completed by the end of 2027. Later phases are expected to further expand its capacity… “Phase one of the CCS hub will have the capacity to capture nine million tonnes of CO2 from three Aramco gas plants and other industrial sources. The captured CO2 will be transported through a pipeline network and stored below ground in a saline aquifer sink, leveraging the Kingdom’s potential for CO2 storage.”
Bloomberg: Carbon capture's reality check [VIDEO]
12/13/24
“The carbon capture industry is facing a reality check as the pipeline of planned projects looks far from certain. Anastasia Tomasidou, an analyst in BloombergNEF’s Sustainable Materials Team, unpacks what is happening in the sector,” Bloomberg reports.
The Narwhal: 16 oilsands companies allegedly broke environmental rules. Alberta kept it a secret for 3 years
Mike De Souza, 12/12/24
“At least 16 fossil fuel companies operating in Canada’s oilsands allegedly broke rules requiring them to pay for environmental monitoring by independent scientists, according to newly released data from the Alberta government,” The Narwhal reports. “Alberta’s Environment and Protected Areas Ministry released the data to The Narwhal in November, about a month after the government lost a three-year battle to keep the names of 16 oilsands companies secret. The companies paid financial penalties for allegedly flouting rules surrounding a joint Canada-Alberta scientific monitoring program, according to the newly released data. Federal and provincial officials introduced the program in 2012 to measure the cumulative effects of oilsands development on air, water, land and biodiversity. The names of companies with late or unpaid fees include firms that wound up under bankruptcy protection or had their operations shut down for serious environmental infractions, such as Everest Canadian Resources and Sunshine Oilsands. They also include some larger multinational companies, including Koch, Imperial Oil, ConocoPhillips and MEG Energy, which faced fines for paying fees late. For some critics, the late and unpaid fees cast doubt on how seriously Premier Danielle Smith’s government is taking its responsibility to manage the monitoring program. Shannon Phillips was the environment minister in the former NDP government during a period when some of the fees went unpaid. She told the Narwhal she asked public servants to use all the tools of the government to collect the money after they informed her about the problem. But she noted there was an internal government culture to cut the industry some slack. “The default setting was to lay down and die in the face of corporate whining and tantrums,” she told the Narwhal. “But the public service knew that might not be the response if they brought me a problem to solve.”
Bloomberg: Oil Prices Set for New Boom After 2035 on Demand, Rapidan Says
Grant Smith, 12/13/24
“Oil prices are set for a new boom period from the middle of the next decade on continued demand growth in China and elsewhere, according to consultants Rapidan Energy Group,” Bloomberg reports. “As expectations of a 2030 peak in global demand recede, the reality of a structurally short supply side will come into view,” the firm founded by former White House official Bob McNally said in a report. “Spare capacity dwindles by 2035 and prices enter a boom cycle.” World oil consumption will keep growing until 2050 in each of three scenarios based on varying levels of electric vehicle growth, with consuming countries unwilling to accept the downsides of a mass shift to EVs, Rapidan said. Global gasoline demand will keep growing through to 2035, and even in China — the core driver of EV sales — there’s “no end in sight” for consumption of the motor fuel. Without sufficient investment in new oil supply projects, prices could surge to $150 a barrel, the consultant predicted.”
Law360: Spain Can't Enforce €855M Oil Spill Award Against Insurers
Sophia Dourou, 12/12/24
“Spain has failed in its latest attempt to enforce an €855M ($898 million) Spanish judgment against maritime insurers over a huge oil spill off of its coast, as an appeals court found on Thursday that it was prevented from doing so by English arbitration,” Law360 reports.
CLIMATE FINANCE
Reuters: US House panel finds BlackRock, other asset managers leery of joining climate initiative
Isla Binnie and Ross Kerber, 12/13/24
“Top U.S. asset managers worried that signing up to an industry climate initiative could make them appear to be working too closely together and draw regulatory scrutiny, according to a report released Friday by a Republican-led U.S. Congressional Committee,” Reuters reports. “The report is the latest released by the panel’s Republican majority as part of a probe they say has shown fund firms and activists are part of a “climate cartel” that colludes through shareholder organizations pressing to cut emissions. The committee’s Democrats have dismissed those allegations. Top fund firms have denied wrongdoing, but material cited in the report shows they had always been concerned about appearing too cozy with shareholder groups engaged in climate activism… “Republican officials, many of them from oil and gas producing states, have objected to investors coordinating to pressure corporate management on climate issues at the expense of corporate growth and returns. Last month Republican attorneys general from 11 states sued BlackRock, State Street and Vanguard, saying their climate activism reduced coal production and boosted energy prices.”
TODAY IN GREENWASHING
Elora Fergus Today: Wellington North firefighters get training boost from Enbridge
12/15/24
“Firefighting training has received a boost, courtesy of Enbridge Gas Inc.,” Elora Fergus Today reports. “The utility company has given $5,000 to Wellington North Fire Service to purchase training materials to supplement existing training through the Safe Community Project Assist program run by the Fire Marshal’s Public Fire Safety Council. “At Enbridge, safety is at the centre of everything we do and a value we live by,” said Desirée Swance, advisor of municipal and stakeholder affairs community engagement for Enbridge Gas, in a news release… “This funding from Enbridge Gas through the Safe Community Project Assist program allows us to enhance our training program and ensure our firefighters have the resources they need to stay prepared,” says Chris Harrow, Fire Chief of Wellington North Fire Service.”
OPINION
Cedar Rapids Gazette: Thanks to pipeline fighters
Tom Mohan, Cedar Rapids, 12/15/24
“My heartfelt thanks and gratitude to Jessica Wiskus and her tenacious rural Linn County neighbors for their successful fight to stop the Wolf CO2 pipeline, as discussed in her informative, inspiring Dec. 8, Gazette guest column “Our fight against Wolf’s pipeline gives us a valuable gift,” Tom Mohan writes for the Cedar Rapids Gazette. “Their tireless work is a great gift to Linn County and all those who work to defend their land, lives and communities from those who threaten us with these deadly pipelines. It provides a textbook example of successful community organizing to empower and protect the communities we love throughout our land. As many of us begin a holiday season of light and love, our rural Linn County neighbors provide a hope-filled vision for the years ahead. Their gift reminds us that determined citizen advocacy, collective action and community organizing can successfully protect our freedoms, families and futures and create the Iowa we want to love and not leave. Thanks so much!”
Brookings Register: CO2 pipeline saga continues in South Dakota
Jamie Fisk, Tulare, 12/13/24
“South Dakota citizens and especially landowners —we need your help. Summit Carbon Solutions has filed a new docket with the SD-PUC,” Jamie Fisk writes for the Brookings Register. “...This company has not previously built or has no management experience in hazardous CO2 pipelines. South Dakota will be the guinea pig for their experiment. It will be very important for you to file your comments with the South Dakota Public Utilities Commission, or present them at the PUC public meetings on Jan. 15-17… “This is not all about CO2 pipeline going in the ground. If this project goes through, they will be applying to the Department of Natural Resources for permits to take millions of gallons of water from the artesian aquifer to cool their pumps along the route. Spink, Brown, and McPherson County commissioners have done an outstanding job of protecting their citizens by passing ordinances that route this hazardous pipeline away from home, cities, feedlots, hospitals, schools, etc. These counties have not been swayed by the taxes this pipeline could possibly generate and further commissioner enticement of "grant money" to be used for anything. This would be quid pro quo to ascertain an affirmative support. SCS claims that the taxes will benefit county residents. Does this outweigh the dangers that would be present? Greed for 45Q Federal tax is what is driving the need for this and similar pipelines… “Ask yourself, how will this affect my family, business, livestock, and is the money worth the trouble? Be sure to contact a lawyer before you give up your property rights to your land.”
Bloomberg: Carbon-Capture Promises Require an Unrealistic Land Grab
Mark Gongloff, 12/16/24
“Because it’s apparently too hard to cut the carbon emissions heating up the planet, many countries plan to sweep much of their pollution under the rug instead. This might be fine, except the rug will have to be comically, unrealistically large — the size of the entire US, according to a new study,” Mark Gongloff writes for Bloomberg. “The net-zero promises made by 140 countries will require turning 990 million hectares of land, or about 3.8 million square miles, into a giant carbon-dioxide sponge, according to a new study in the journal Nature Communications. That’s almost exactly the size of all the land and water within US borders. It’s about two-thirds of all the cropland on the planet. And 44% of that land, or about 435 million hectares — roughly the area of Alaska, Texas, California, Montana, New Mexico, Arizona, Nevada and Colorado combined — would have to be repurposed, the study estimates. That would mainly mean planting trees where crops or shops or other non-tree things used to be. Some of it would be dedicated to bioenergy crops, or plants burned for fuel, with facilities to capture the carbon emitted. The other 56% of the land would be restored forests, mangrove swamps and other tree-friendly terrain. There are a couple of troubling things about this finding. For one thing: all those trees… “Simply paying people to plant trees has long been a predominant feature of the carbon-offsets market, which is one reason offsets are widely considered to be so sketchy. Entire countries relying on planting trees to absolve their own emissions is arguably worse, given the scale of the pollution involved. It’s a flimsy crutch for avoiding real change… “The even bigger practical problem with these schemes is the ludicrous amount of land involved. Earth simply isn’t going to cough up another half a continent to serve as a global arboretum… “The land grab necessary to meet net-zero goals would be twice as large and go on for decades… “At the moment, the world’s net-zero promises aren’t nearly enough to limit global heating to 2 degrees Celsius above preindustrial averages, the goal of the 2015 Paris Agreement. The fuzzy carbon-capture accounting on which they rely makes these promises even weaker. Fortunately, getting real is easier than it might seem.”
CleanTechnica: The Carbon Capture Dream Bumps Up Against Reality In Texas
Steve Hanley, 12/14/24
“Carbon capture — oh, what a wonderful, magical idea! Take all that nasty carbon dioxide that is making the planet warmer, suck it out of the air, and pump it underground. Presto! Shazam!! Problem solved,” Steve Hanley writes for CleanTechnica. “...There are a few technical details to be worked out first, like how to actually extract carbon dioxide from the atmosphere at a cost of under $600 a ton or how to scale the process up so that instead of capturing several thousand pounds of the stuff every year, we can address the fact that we are pumping billions of tons of carbon dioxide into the air around us every year… “All we need to do is take the carbon dioxide back out of the atmosphere and shove it back underground where it came from. Right? Well, maybe not. In Texas, pumping carbon dioxide underground might have some drawbacks. Like what? Earthquakes and blowouts, for example… “Republicans — especially Texas Republicans — loathe everything to do with the federal government, especially the communist inspired Inflation Reduction Act. Yet it seems there are parts of the IRA they like a whole lot — the parts where the boys in Washington will send truckloads of federal dollars down to Austin to pay for nascent carbon sequestration technologies. But pumping CO2 into the ground could exacerbate earthquakes and well blowouts already happening in the Permian Basin as Texas struggles to manage wastewater disposal, potentially undermining public support… “Over the last 12 months, the number of applications filed with the Environmental Protection Agency for carbon injection permits in Texas has jumped by 63 percent to 43, making it a national leader. However, Texas is dogged by problems linked to disposal of wastewater from drilling operations underground… “Large leaks could acidify groundwater and suffocate people and animals if it displaces oxygen above ground, according to nonprofit Pipeline Safety Trust. “This is supposed to be permanent storage,” Carolyn Raffensperger, executive director of the Science and Environmental Health Network, told CleanTechnica. “If it can’t even contain it for 10 years, why do we think it can contain it forever?” she added, referring to ADM’s project… “In other words, it’s a scam, a fraud, a con, and little more than a way to suck up some federal dollars on top of the already generous subsidies the fossil fuel industries already get.”
Daily Montanan: ‘Pay to pollute’ plan? Montanans have been there, done that
George Ochenski is Montana's longest-running columnist and a longtime environmental activist, concerned with keeping Montana's natural beauty clean and safe, 12/13/24
“Ever since Congress enacted the Superfund law nearly half a century ago, the phrase “polluter pays” has meant that individuals corporations, or entities responsible for polluting the environment will be held liable for the costs to clean up their toxic disasters,” George Ochenski writes for the Daily Montanan. “But comes now president-elect Donald Trump’s promise that “polluter pays” has an entirely different meaning — and one that’s fraught with creating foreseeable and avoidable environmental disasters primarily by excluding the public from agency permits and approvals. As he posted to Truth Social this week: “Any person or company investing ONE BILLION DOLLARS, OR MORE, in the United States of America, will receive fully expedited approvals and permits, including, but in no way limited to, all Environmental approvals. GET READY TO ROCK!!!” That choice of words is pretty ironic given the largest Superfund site in the nation is located right here in good old Butte, Montana — and the toxic pollution that not only plagues the town, but 100 miles of the Clark Fork River, came from mining rock and spewing the resulting poisons on the land, air and water. Equally ironic and tragic is the fact that since Superfund’s enactment Butte, Anaconda, and the 100 miles of the Upper Clark Fork River have seen hundreds of millions of dollars spent trying to remediate (not clean up and reclaim) the vast scope of the pollution. How did it happen? Almost exactly like Trump’s incredibly ignorant offer that if you pay enough, you can buy government approval to pollute at will. Only here, it happened because the Copper Kings “paid to pollute” through buying, bribing, threatening, and controlling the legislature, judges, sheriffs, and local and state government officials… “Before Trump goes through with his incredibly ill-conceived and shortsighted plan, maybe he ought to take a trip to Butte and see the results of “pay to pollute” — because here in Montana, we’ve been there and done that.”
CT Mirror: Greenwashing by fossil fuel giants misled Connecticut consumers
Katherine Meslow is a senior at Trinity College, majoring in Public Policy and Law and minoring in Urban Studies, 12/16/24
“Did you know you have been lied to for the past five decades? The culprit? The fossil fuel industry, which has been promoting misinformation about climate science since the 1970s,” Katherine Meslow writes for the CT Mirror. “In 2020, Connecticut Attorney General William Tong sued Exxon Mobil under the Connecticut Unfair Trade Practices Act (CUTPA) which prohibits unfair acts of deception in trade and commerce. Connecticut v. Exxon Mobil Corporation alleges that Exxon engaged in deceptive practices by misleading consumers about the harmful impact of its business on the climate. The Connecticut Superior Court recently denied Exxon’s motion to dismiss, allowing the case to proceed. This summer I was an intern for the Connecticut Office of the Attorney General and dealt particularly with the CT v. Exxon Mobil Corp. lawsuit. Because of my work on this case, my perspective on the world of fossil fuels has greatly shifted, particularly as a young consumer who owns a car. I have become increasingly more aware of my gas usage. In the future, I hope to one day own a fully electric vehicle. But for now, I am more selective about the type of gas I buy, how often I fill up, and how far I drive. I additionally try to carpool with others and walk or bike whenever I can. The extent of the misinformation that I encountered during my internship was eye-opening. The accusations in the suit all point to a key concept, greenwashing. Greenwashing is a deceptive marketing strategy that refers to companies or organizations falsely promoting themselves as “environmentally friendly” while engaging in environmentally harmful practices. This often involves marketing tactics that falsely claim eco-friendliness to create a positive public image without making meaningful changes to reduce environmental impact, ultimately affecting policy and action against climate change. In CT v. Exxon Mobil Corp., the effect of greenwashing extends beyond individual choices. When companies like Exxon Mobil project a false image of environmental responsibility, they delay necessary action and sway public opinion, making it harder to effectively address the urgent climate crisis… “Connecticut v. Exxon Mobil Corporation underscores the need for transparency and accountability in the fossil fuel industry.”
Portland Press Herald: Maine’s suing Big Oil could bring dollars – and sense
Anthony Moffa is a professor at the University of Maine School of Law. He lives in Portland, 12/15/24
“As a professor of both environmental law and torts, I have previously called for legal action to hold accountable the fossil fuel companies that have driven the world into a climate crisis,” Anthony Moffa writes for the Portland Press Herald. “Their products have caused the vast majority of carbon dioxide emissions, and, worse, they carried out a coordinated, decades-long campaign of deception about it. Now I am proud and grateful that the state of Maine has officially joined the fight to make big oil companies pay for the harm their illegal behavior has caused to our residents, economy and environment. Attorney General Aaron Frey’s lawsuit against ExxonMobil, Chevron, BP and other giant polluters is the latest in a growing number of cases across New England and the United States that points to mountains of evidence that these companies have known and lied for decades about the disastrous consequences of their business… “In the coming months, we can expect fossil fuel companies and their allies to attack Maine’s lawsuit because it poses a threat to their profits and reputation. But the reality is that climate accountability lawsuits such as Maine’s are based on sound, longstanding legal principles – which ensure that polluters pay and corporations that deceive consumers face consequences. Indeed, judges in similar cases in New England have rejected fossil fuel companies’ efforts to dismiss them… “Suing fossil fuel companies provides Mainers two important opportunities for some relief from the climate crisis. Firstly, and perhaps most importantly, the attorney general is asking these companies to help defray the climate-induced costs of enhancing infrastructure and repairing property damage…”As we face worsening climate threats from the defining challenge of our time, it simply makes sense that we demand accountability from the polluting giants that put us in this position. Mainers deserve their day in court with Big Oil, and Attorney General Frey and his office deserve our support.”
The Hill: Anything short of full repeal of the Inflation Reduction Act is political malpractice
Travis Fisher is the director of energy and environmental policy studies at the Cato Institute; Adam N. Michel is director of tax policy studies at Cato, 12/15/24
“President Biden’s signature climate law — the misleadingly named Inflation Reduction Act — must be Republicans’ top target for repeal in the upcoming legislative session,” Travis Fisher and Adam N. Michel write for The Hill. “It represents the madness they campaigned against: the Washington establishment remaking America’s energy sector by shoveling tax dollars onto the inflation bonfire while advancing a social justice project that would make Greta Thunberg blush. The Inflation Reduction Act’s energy and environment subsidies will cost taxpayers about $1.5 trillion over the next ten years and potentially $4 trillion by 2050. For every dollar of that they leave in place, Republicans are choosing to maintain the left’s misguided and inflationary energy policy instead of pursuing tax relief for all Americans. Repeal is the linchpin to responsibly extending and expanding the expiring 2017 Trump tax cuts. Full repeal faces opposition from industry groups, environmentalists and even some Republicans… “At an estimated total cost of $4 trillion, the Inflation Reduction Act’s spending might have created more useful energy if the funds had been converted to one dollar bills and burned… “Instead of benefiting workers, as is often claimed, subsidies line the pockets of corporate owners and executives. Most of the money is not flowing to blue-collar jobs in the heartland, it’s feeding a new industry of subsidy harvesters — accountants and lawyers working in offices in New York and D.C… “This encourages corporate leaders to seek government backing instead of driving true innovation and competitiveness — to engage in unproductive rent-seeking when America needs robust energy solutions to meet rising demand. Repeal of all IRA energy subsidies — including those for ongoing projects—is necessary to signal that American energy markets will be driven by consumers, not centrally planned by Uncle Sam. Allowing any part of the Inflation Reduction Act’s energy framework to remain in law is like stopping antibiotics after the first dose — partial repeal will only temporarily slow the infection.”