EXTRACTED: Daily News Clips 12/8/22
PIPELINE NEWS
Reuters: Keystone pipeline shut after oil release into Nebraska creek
Quad City Times: Quad Cities Chamber expresses 'cautious optimism' in Wolf carbon pipeline; Scott County Supervisors, property owners remain opposed
KMA: Page County board hears formal request to adopt ordinance regulating hazardous liquid pipelines
POWHR: The Frontlines Defeat Manchin’s Dirty Deal Again
Smoky Mountain News: Pipeline on Parkway would have no significant impact, Park Service says
WTAP: State Rep Edwards pushes pipeline incentives
Forum News Service: North Dakota pipeline spills over 12,000 gallons, impacting agricultural land
WASHINGTON UPDATES
E&E News: Manchin not giving up on permitting reform
E&E News: What’s next for Manchin’s permitting bill
Politico: Permitting deal still a ‘priority’ for Biden after setback
Press release: KHANNA, GRIJALVA, QUIGLEY ANNOUNCE LEGISLATION TO REPEAL FOSSIL FUEL SUBSIDY FOR ENHANCED OIL RECOVERY
Politico: Interior Agrees To Conduct New Environmental Review Of California Oil Lease Sale
Bloomberg: Environmental Equity Tour to Help Communities Navigate Justice40
STATE UPDATES
Center for Biological Diversity: Legal Agreement Blocks Oil Drilling on 725,000 Acres of California Central Coast
Cleveland.com: Ohio Senate to vote on expanding gas drilling on state lands
The Daily Climate: Revealed: Nearly 100 potential PFAS-polluted sites in Pennsylvania, Ohio and West Virginia from fracking waste
News From The States: Oregon company pitches plan to create Northwest hydrogen hub outside state agencies
EXTRACTION
Bloomberg: Athabasca May Beat Pathways Alliance in Oil Sands Carbon Capture
Two Row Times: Six Nations asking Enbridge for lower gas prices
CLIMATE FINANCE
Financial Times: US fund managers cross Atlantic to buy European oil stocks
Press release: Vanguard Has Quit NZAM and Dropped Any Pretext on Climate Commitment
OPINION
The Hill: A key climate metric gets an overdue update
PIPELINE NEWS
Reuters: Keystone pipeline shut after oil release into Nebraska creek
12/8/22
“Canada's TC Energy (TRP.TO) on Thursday said it shut the 622,000 barrel-per-day Keystone pipeline and was responding to an oil release into a creek about 20 miles south of Steele City, Nebraska,” Reuters reports. “An emergency shutdown and response was initiated at about 8 p.m. CT on Dec. 7 after alarms and a pressure drop in the system, the company said in a release, adding booms were deployed to control downstream migration of the release. "The system remains shut down as our crews actively respond and work to contain and recover the oil," the release said. The company was not immediately available to comment on the volume of the release… “On Nov. 15, the company announced it would curtail volumes on the pipeline due to some severe weather-related incidents without specifying the size or duration of the curbs.”
Quad City Times: Quad Cities Chamber expresses 'cautious optimism' in Wolf carbon pipeline; Scott County Supervisors, property owners remain opposed
Sarah Watson, 12/8/22
“The Quad-Cities Chamber is encouraging the Iowa Utilities Board to move forward with "cautious optimism" on the carbon pipeline Wolf Carbon Solutions is hoping to route through Scott and Clinton counties,” the Quad City Times reports. “A carbon sequestration option can be an asset for business attraction and expansion; however, our first priority must always be safety," Rhonda Ludwig, the Chamber's director of government affairs wrote in a letter to the Iowa Utilities Board in November. But on Tuesday at a second Scott County public meeting, nearly all residents who spoke were opposed or skeptical of Wolf's proposed pipeline, including representatives from Scott County government, Eldridge, and Long Grove city governments. Scott County Board of Supervisors Chair Ken Beck and Eldridge Council Member Brian Dockery told Wolf representatives at the public meeting Tuesday they remain opposed to the pipeline until concerns over safety in case of a rupture are addressed and the company can make further assurances that they don't plan to use eminent domain. "We believe the project serves private interests and does not serve a public purpose," Beck said… “Wolf's vice president of engineering Pat Brierley said during Tuesday's meeting that Wolf would not apply for eminent domain with the Iowa Utilities Board, and that in Wolf employees' collective careers, they had never used eminent domain before. Brierley added that in Canada and other states he's worked in, haven't had eminent domain as an available tool… “Brian Payne, a the coordinator and deputy director of the Scott County Emergency Management on Tuesday asked Wolf representatives what information on plume modeling could be released so Scott County could model the effects of a rupture to better emergency response. Payne said currently the emergency management hasn't been able to access dispersion modeling for a carbon dioxide pipeline, and if it can't, it could hinder the county's emergency response in the case of a rupture. Brierley said the company is conducting dispersion modeling, but will only share what they deemed to likely to happen with emergency responders once the modeling is completed. Brierley said some of what is required to be released is currently under litigation. Opponents of the pipeline point to a rupture of a CO2 pipeline in Mississippi, which caused 45 people to seek medical attention and 200 people to evacuate, according to an investigation by the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration… “Brierley discounted the risk of a rupture, saying that he didn't think the Mississippi case was a "repeatable incident." "Between the fact that it was a sequence of a lot of events that are highly unlikely and the fact that it was operator error or deficiency, I don't see that as repeatable," Brierley said.
KMA: Page County board hears formal request to adopt ordinance regulating hazardous liquid pipelines
Ethan Hewett, 12/6/22
“Residents have formally requested Page County officials to adopt an ordinance regarding hazardous liquid pipelines in the county,” KMA reports. “Meeting in regular session Tuesday night, the county board of supervisors had a discussion with Marty Maher, a Mills County resident who owns land near Imogene in Page County. The debate comes after other counties in KMAland, including Shelby County, adopted an ordinance, while others, such as Montgomery County, have entertained the idea. Maher presented the board with a petition that had been in circulation for the past nine days, urging the county to move swiftly with an ordinance that could regulate proposed carbon dioxide pipelines in the county. "There's a combination of residents, landowners, and taxpayers and there's 47 signatures on there," said Maher. "Given the time span and how little effort was put into it, it seems to me that it shows fairly widespread support because pretty much all of those (signatures) are from the western half of Page County." “...However, Maher says an ordinance would protect residents and the county regarding Summit's proposed project and any hazardous pipeline moving forward. "It protects the landowners, it protects the rural and city residents, livestock, and county infrastructure," he said. "You've got a lot invested in this pipeline going through too as far as paved roads it's crossing, gravel roads that'll be tore up, rural water lines, fiber optic cable, and gosh knows what else is buried out in the roads in this county that they're going to encounter." “...However, Maher is somewhat concerned about his and others' experiences with the land agents, including unfamiliarity with the landscape and a lack of understanding of why the land, particularly farm ground, is significant to its landowners. "The reason you don't 'just agree,' is because this is land that's been in the family for years -- we're not going to live here forever, but it's hopefully going to stay in the family and it's going to benefit the posterity and it's going to be here for a long time," Maher emphasized. "This is why people want to take care of it and why we go to the extent we do to save the soil and such." However, some counties have given pause to the idea of an ordinance after Summit filed a lawsuit against Shelby County shortly after approving their respective ordinance. But, Maher says Shelby County officials are confident in their ordinance. He cited Iowa Utilities Board Chair Geri Huser at a Linn County meeting Monday, who said that counties should be looking at all ways to best protect their residents.”
POWHR: The Frontlines Defeat Manchin’s Dirty Deal Again
12/7/22
“After another round of tireless opposition by frontline environmental justice organizers and allied climate activists, Senator Joe Manchin’s Energy Security and Independence Act was dropped from this year’s National Defense Authorization Act,” according to the POWHR coalition. “In response, Crystal Mello, organizer with the Protect Our Water, Heritage, Rights and frontline MVP resistor said: “Once again, the frontlines rose to stop the Dirty Deal from weaseling into must-pass legislation. When we rise together, we win. We are cleaning ladies, farmers, students, parents, Indigenous water protectors, and Black community leaders. We shouldered the future of this country by making calls, lobbying, and protesting between jobs and classes. Beside us were climate activists and allied Congresspeople. They raised their voices with ours to fill the halls of the powerful with people power. Now, we have a livable and just future to build. Schumer, Pelosi, and all Congresspeople: this must be the last time we are threatened by the corrupt, needless Dirty Deal.” Maury Johnson, Co-Chair of the POWHR Coalition and impacted MVP landowner, said: “Frontline communities from across the country have risen to voice their objection to becoming sacrificed so that another horrible fossil fuel project can make another millionaire a few more dollars. This should be a wake-up call to all of America that we are not going to ever relent again. Many thanks to our friends in the House and Senate, especially Representative Rashida Tlaib and Ro Kanna who have stood with the people and stood up against the fossil fuel industry and their lackeys.”
Smoky Mountain News: Pipeline on Parkway would have no significant impact, Park Service says
12/7/22
“The National Park Service has found that allowing an underground natural gas pipeline within the Blue Ridge Parkway will have no significant impact on Park Service resources,” Smoky Mountain News reports. “On Nov. 18, NPS South Atlantic-Gulf Regional Director Mark Foust signed a Finding of No Significant Impact, recommended by Blue Ridge Parkway Superintendent Tracy Swartout, to permit a right of way for an underground natural gas pipeline within the Blue Ridge Parkway boundary. Dominion Energy North Carolina had applied for a permit to install, operate and maintain a 12-inch natural gas pipeline that would cross under the Parkway at milepost 393.3 in Buncombe County. The 50-foot-wide right of way would allow the pipeline to be installed using a horizontal directional drill perpendicular to the Parkway adjacent to an existing 143-foot-wide Duke Energy electric transmission line right of way. The application was evaluated in an Environmental Assessment, with public comments from traditionally associated tribes, stakeholders, residents and the public received during a 30-day public comment period. These comments addressed impacts to water resources, greenhouse gas emissions, safety, pipeline placement and consistency with the NPS mission. An appendix to the Finding of No Significant Impact addresses substantive comments. Comments related to the larger utility project beyond the permit on NPS land were considered beyond the scope of the EA.”
WTAP: State Rep Edwards pushes pipeline incentives
12/7/22
“Ohio State Representative Jay Edwards has provided sponsorship testimony on legislation involving natural gas infrastructure projects,” WTAP reports. “According to Representative Edwards, House Bill 685 is designed to promote expansion of gas pipelines and infrastructure. Rep. Edwards testified that House Bill 685 would give Ohio the upper hand in the development of these pipelines. He said the incentives will promote the quick expansion of the pipeline system and keep Ohio’s energy moving. The proposed bill will provide incentives in locally designated areas called EnergizeOhio zones. The zone incentives would be for developing natural gas pipelines and the associated infrastructure. The zone designations would last five years and could be renewed for an additional five if the requirements are met. HB 685 now awaits its second hearing in the House Energy and Natural Resources Committee.”
Forum News Service: North Dakota pipeline spills over 12,000 gallons, impacting agricultural land
12/7/22
“More than 7,800 gallons of propylene glycol and more than 4,400 gallons of produced water spilled from a pipeline operated by the Hess Corporation in western North Dakota on Monday, Dec. 5, according to the state Department of Environmental Quality,” Forum News Service reports. “The spill happened about 2 miles north of Ray in Williams County and was detected during a pipeline pressure test, state officials said. Hess alerted the Department of Environmental Quality to the spill, which affected agricultural land. Propylene glycol is used as an antifreeze during pressure testing. Produced water is a byproduct of oil production. Along with propylene glycol and produced water, Hess estimated about 7,800 gallons of fresh water also spilled, state officials said.”
WASHINGTON UPDATES
E&E News: Manchin not giving up on permitting reform
Kelsey Brugger, Emma Dumain, 12/7/22
“West Virginia Democratic Sen. Joe Manchin on Wednesday released his latest infrastructure permitting proposal, confirming fears among environmentalists that the plan goes further than an earlier draft,” E&E News reports. “Manchin’s announcement that he’d seek a vote on his language as an amendment to the fiscal 2023 National Defense Authorization Act is sure to reenergize progressives who thought they could stand down after succeeding Tuesday night in blocking the provision from being included in the base text of the final defense bil… “Some of the proposed changes would allow developers to petition the courts if federal agencies do not act fast enough on project permits, and it would force agencies to act in 90 days. The bill also seeks to speed up judicial review and enact page limits on environmental documents. There are also tweaks to sections on hydrogen; transmission lines; and a White House list of priority energy projects, both fossil fuel and renewable. Manchin’s latest language is closer to text from Senate Environment and Public Works ranking member Shelley Moore Capito (R-W.Va.), who is also pushing hard for completion of the Mountain Valley pipeline… “Manchin’s new proposal comes a little more than 12 hours after congressional negotiators released text of the NDAA that excluded permitting language. Democratic leaders and the White House had promised Manchin some kind of permitting changes in exchange for his support for the Inflation Reduction Act. They have so far come up short… “Practically speaking, it’s far from certain that Manchin will succeed in getting a vote on his language as an amendment to the NDAA; he will be one of dozens of lawmakers lobbying to be heard on their pet priorities in the amendment process, and Senate Majority Leader Chuck Schumer (D-N.Y.) can only accommodate so many, if any… “There’s also a time element: The House will vote on the NDAA in the coming days and then ship the bill to the Senate, and there aren’t many days left in the calendar year to engage in another back-and-forth between the chambers.”
E&E News: What’s next for Manchin’s permitting bill
Nick Sobczyk, Jeremy Dillon, 12/8/22
“Sen. Joe Manchin isn’t giving up on trying to pass his overhaul of federal environmental rules, but the changes he’s made to the bill may have further alienated Democrats while doing little to assuage skeptical Republicans,” E&E News reports. “It leaves Manchin, a West Virginia Democrat, with slim chances of getting the bill — and the Mountain Valley pipeline — over the finish line before the end of the year. “It looks pretty grim,” Sen. Tina Smith (D-Minn.), a climate hawk who was supportive of Manchin’s draft permitting legislation in September, told E&E. The latest version of the bill, released by Manchin’s office Wednesday, would leave in place a proposal to authorize Mountain Valley, a contentious natural gas project vehemently opposed by progressives in the House and Senate. It would make a handful of concessions to Republicans. Chief among the changes, Manchin tossed out language that would have allowed the Federal Energy Regulatory Commission to trump state authority to site electric transmission lines. Republicans had criticized the provision for leeching power away from state regulatory officials, but it was also key to winning Democratic votes. Climate hawks want to make it easier to string lines around the country in order to quickly expand the nation’s supply of wind and solar power… “Even supporters of his effort acknowledge, however, that the votes might not be there in the Senate, much less the House. “Not as an amendment, I don’t think so,” Sen. Martin Heinrich (D-N.M.) told E&E when asked if the bill still has a chance of passing on the NDAA. “I think there needs to be additional negotiation.” Conservatives also reinforced their opposition, even with changes to the bill aimed at earning their support. “I’m afraid the [opposition has hardened against it],” Sen. Kevin Cramer (R-N.D.) told E&E. “I think [the bill] has to be better. The reform itself has to be better. And I know [Manchin] says we can’t let perfect be the enemy of good. This wasn’t good.” A potential omnibus spending package would be the last open door for Manchin in the dwindling days that Democrats control both chambers. Whether a spending deal actually comes together — or lawmakers opt for a full-year stopgap — remains to be seen. Both sides remain at an impasse over top level spending numbers, as the Dec. 16 government funding deadline quickly approaches.”
Politico: Permitting deal still a ‘priority’ for Biden after setback
Robin Bravender, 12/7/22
“President Joe Biden won’t give up on legislation to overhaul federal permitting after the latest effort fizzled on Capitol Hill,” Politico reports. “Permitting reform remains a priority for Biden, and the White House “will continue to work with Congress and find the best path forward so we can enact this bill,” White House press secretary Karine Jean-Pierre told reporters Wednesday. Her comments come after the text of a massive 2023 defense authorization bill left out language that would have shortened timelines for National Environmental Policy Act reviews and limited citizen judicial challenges for proposed energy projects. Its omission marked a blow to West Virginia Democratic Sen. Joe Manchin, who has pushed the reform but faces opposition from progressives and some conservatives. Congressional Democratic leaders promised Manchin they’d pursue permitting reform in order to win his support for the massive climate bill known as the Inflation Reduction Act. Biden backed that promise.”
Press release: KHANNA, GRIJALVA, QUIGLEY ANNOUNCE LEGISLATION TO REPEAL FOSSIL FUEL SUBSIDY FOR ENHANCED OIL RECOVERY
12/8/22
“Today, Representatives Ro Khanna (CA-17), Chair of the House Oversight Subcommittee on the Environment, Raúl Grijalva (AZ-03), Chair of the House Natural Resources Committee, and Mike Quigley (IL-05), member of the House Committee on Appropriations, introduced the End Polluter Welfare for Enhanced Oil Recovery Act to repeal a tax giveaway that enables the fossil fuel industry to profit off capturing carbon emissions and using them to increase oil production. The version of Build Back Better that was passed by the House did not include any of the domestic fossil fuel subsidies repeal passed by the Senate Finance Committee earlier this year. But the transition to a clean energy future relies on eliminating the special privileges that the fossil fuel industry currently enjoys over other industries. The End Polluter Welfare for Enhanced Oil Recovery Act would reform one of the largest domestic fossil fuel subsidies, The Tax Credit for Carbon Sequestration (Section 45Q). Right now, fossil fuel companies receive a tax credit for injecting carbon dioxide into oil wells to extract more oil, a process known as enhanced oil recovery (EOR). In the United States, of all carbon captured, 95% is used for EOR. This means increased oil and gas production, more pollution and additional costs for American taxpayers. Just this one subsidy is predicted to amount to $7.8 billion dollars over the next ten years. The public should not be on the hook for increasing the profits of the fossil fuel industry. “Using carbon capture as an excuse to continue drilling for oil is not a climate change solution,” said Rep. Ro Khanna. “It’s our responsibility here in Congress to expose the fossil fuel subsidies in our tax code and work to end them. Unlike when they were first created, these subsidies no longer create jobs. Instead, they undermine efforts to tackle the climate crisis. I’m proud to introduce this bill to end one of the biggest fossil fuel subsidies and set us on the path to a clean energy economy.”
Politico: Interior Agrees To Conduct New Environmental Review Of California Oil Lease Sale
Ben Lefebvre, 12/6/22
“The Interior Department agreed to conduct a new environmental review for a Trump-era oil and gas lease sale in California under a proposed settlement of a lawsuit brought by environmental groups,” Politico reports. “Details: The settlement awaiting a judge’s approval in the U.S. District Court for the Northern District of California stipulates that Interior’s Bureau of Land Management will conduct a new environmental review and incorporate new alternatives to its October 2019 decision to make 725,500 acres of land in the state available for oil and gas leasing. Environmental groups Center for Biological Diversity and the Sierra Club and the counties of Santa Cruz and Monterey sued Interior following the December 2020 announcement that it had completed the lease sale. They contended that BLM had not done sufficient review on how fossil fuel development on the acres would affect greenhouse gas emissions and had not coordinated with local governments. BLM would have to offer at least six alternatives for land use on the acres and coordinate with local governments on its policy decisions, according to the settlement. It will also have to open its new analysis up for public comment before taking further steps toward oil and gas leasing. An Interior Department spokesperson declined to comment. A Sierra Club representative declined to comment pending a judge’s approval of the settlement. The county governments and Center for Biological Diversity did not immediately reply to questions.”
Bloomberg: Environmental Equity Tour to Help Communities Navigate Justice40
12/6/22
“White House officials and environmental equity groups will kick off a tour Thursday of communities from Atlanta to Alaska to ensure local areas don’t miss out on billions of dollars available to help disadvantaged communities long suffering from pollution,” Bloomberg reports. “The national outreach effort, launched by WE ACT for Environmental Justice, is slated to begin in Houston followed by community events in Austin, Anchorage, Atlanta, Baltimore, Chicago, Detroit, Flint, Oakland, Seattle, and other cities. The community outreach is to continue through the spring. White House officials will join environmental justice advocates at various cities, including Brenda Mallory, who chairs the Council…”
STATE UPDATES
Center for Biological Diversity: Legal Agreement Blocks Oil Drilling on 725,000 Acres of California Central Coast
12/7/22
“A federal judge approved an agreement today to suspend new oil and gas leasing across more than 725,000 acres of public lands in California’s Central Coast and the Bay Area. The legal agreement was reached by conservation groups, Monterey County, Santa Cruz County and the U.S. Burea?u of Land Management. “Our federal government shouldn’t sell off our precious public lands to be fracked for the fossil fuels driving global warming, so this agreement is a huge relief,” said Liz Jones, an attorney at the Center for Biological Diversity’s Climate Law Institute. “President Biden promised to stop sacrificing public lands for dangerous oil extraction, and we’ll keep insisting that he keep that promise.” The agreement requires the BLM to reconsider its 2019 plan to open 725,500 acres of public lands and mineral estate across 11 Central Coast and Bay Area counties to new oil and gas drilling and fracking. Lease sales will not be held while the 2019 plan is under review and the environmental analysis is redone. The BLM has also committed to considering new alternatives and working with counties that have passed ordinances banning fracking and other drilling techniques.” “...Today’s agreement follows a previous successful lawsuit brought by the Center and the Sierra Club in 2011. In that case a judge ruled that the BLM violated the law when it auctioned off about 2,500 acres of land in Monterey and Fresno Counties without considering the risks of fracking.”
Cleveland.com: Ohio Senate to vote on expanding gas drilling on state lands
Jake Zuckerman, 12/6/22
“With little public notice, the Ohio Senate could vote Wednesday on legislation to expand natural gas drilling in state parks,” Cleveland.com reports. “The bill also would change the legal definition of “green energy” – a term typically referring to power derived from sun, wind, or water – to include natural gas. Natural gas is mostly methane, a powerful heat-trapping greenhouse gas that’s formed over millions of years underground and freed via drilling into the earth. Additionally, the amended legislation would prohibit municipalities from banning the use of certain pesticides within their borders. All these changes were made late Tuesday afternoon to House Bill 507 – legislation that until that time only addressed laws around poultry sales and food safety. At the time of the vote, text of the amendments was not available online. The amendments and legislation passed the Senate Agriculture and Natural Resources committee 5-1, with Republicans in support and the committee’s lone attending Democrat in opposition… “Since 2011, state law has granted agencies the ability, if they choose, to lease out their land for oil and gas production and exploration. The amendment adopted Tuesday would require state agencies to lease their lands to applicants seeking to drill, instead of just allowing them to. The proposal “forces state agencies to lease state parks and public lands for fracking and oil and gas development when the industry says so,” according to an analysis from the Ohio Environmental Council.”
The Daily Climate: Revealed: Nearly 100 potential PFAS-polluted sites in Pennsylvania, Ohio and West Virginia from fracking waste
Kristina Marusic, 12/7/22
“Waste from fracking wells that used PFAS – commonly known as “forever chemicals”– has been dumped at dozens of sites across Pennsylvania, Ohio and West Virginia — all of which could face contamination of soil, groundwater and drinking water as a result,” The Daily Climate reports. “...Regulatory loopholes and a lack of transparency make it impossible to know how extensively the chemicals have been used in oil and gas production. In August, however, Environmental Health News (EHN), documented the first case of private drinking water contaminated with PFAS potentially linked to fracking wells, and in October EHN mapped the eight locations where operators have publicly disclosed the kind of PFAS they used in Pennsylvania fracking wells. Now, a new map developed for EHN by FracTracker using public data reveals that waste generated at the eight Pennsylvania fracking wells with documented PFAS use has traveled to at least 97 additional sites for reuse and disposal… “Experts say many of these secondary disposal sites are also likely to be contaminated by PTFE (Polytetrafluoroethylene), commonly known as Teflon, which is one of more than 9,000 PFAS, and was reported as being used at all eight wells… “Delaney thinks Pennsylvania regulators should at least test soil and water for PTFE at the eight well pads where the chemical was used, and also consider testing at the sites where waste from those wells has been disposed of. “They should want to find out if PFAS is a problem in the well drilling business in their state,” he told Daily Climate. “That’s a big business and it could impact a lot of aquifers. Since they know these chemicals have been used, following the precautionary thing to do would be to go out and check these areas to see if PFAS [are] getting into the environment this way.” “Ridiculously small quantities can contaminate water way above what is safe for humans,” he told Daily Climate. “When we talk about PFAS contamination, it’s in parts per trillion. Less than one gallon of PFAS can contaminate a trillion gallons of drinking water to a level that’s unsafe for humans.”
News From The States: Oregon company pitches plan to create Northwest hydrogen hub outside state agencies
Alex Baumhardt, 12/5/22
“A Lake Oswego-based solar energy company has spurned a Northwest government partnership by launching its own bid to win hundreds of millions in federal dollars to create a green hydrogen production network across Oregon and Washington,” News From The States reports. “In November, Obsidian Renewables applied to the U.S. Department of Energy to become a green hydrogen hub for the region, producing, storing and transporting the mostly emissions-free gas. An Oregon-Washington partnership, the Pacific Northwest Hydrogen Association, has also applied for money to become a Northwest hydrogen hub. Obsidian initially wanted to join the association’s effort but broke away when the partnership declined to tell private companies whether they were included in the final bid. “We couldn’t get the Washington Department of Commerce to tell us whether they were going to include us in their grant or not, they still haven’t told us, so we had to find something on our own,” Obsidian co-founder David Brown told the Capital Chronicle… “The federal energy department has $8 billion from the Infrastructure Investment and Jobs Act passed by Congress in 2021 for hydrogen production hubs across the nation. The department expects to select at least four hydrogen hubs by the end this year for funding during the next four years… “Obsidian Renewables is behind the Obsidian Solar Center in southern Oregon, which will be the state’s — and one of the nation’s — largest solar farms when it’s built. Now, Obsidian is seeking $700 million from the federal energy agency to put toward a $10 billion system that would create hydrogen from electrolysis. Obsidian’s green hydrogen would primarily be sold to companies to make fertilizer.”
EXTRACTION
Bloomberg: Athabasca May Beat Pathways Alliance in Oil Sands Carbon Capture
Robert Tuttle, 12/8/22
“Canadian crude producer Athabasca Oil Co. may beat an alliance of the country’s largest energy companies in rolling out carbon capture and storage in the oil sands,” Bloomberg reports. “Athabasca, Canada’s 10th largest oil producer, has partnered with Entropy Inc. to build a carbon capture and storage facility at its Leismer oil sands site and plans to go ahead with the project next year, it said in its capital budget released Wednesday. The development is being funded by Entropy and will be built in as part of an expansion of Leismer oil sands well site in Alberta. It’s part of Athabasca’s plans to reduce emissions intensity by 30% by 2025. It’s on track to happen ahead of projects by the Pathways Alliance — made up of the largest oil sands producers including Suncor Energy Inc., Cenovus Energy Inc., and Canadian Natural Resources Ltd. Alliance members plan to invest C$24 billion ($17.6 billion) by 2030 to cut emissions, mostly through carbon capture and storage. The Pathway members propose building carbon capture facilities at their oil sands sites as well as a pipeline to Cold Lake, Alberta, for sequestration underground.”
Two Row Times: Six Nations asking Enbridge for lower gas prices
Donna Duric, 12/7/22
“Six Nations of the Grand River Elected Council has agreed to enter talks with Enbridge over its line 10 expansions and as part of those talks, wants to negotiate lower gas prices for Six Nations households,” Two Row Times reports. ““They’re so astronomical,” said Coun. Audrey Powless-Bomberry, saying seniors and those on fixed incomes especially deserve a break on their gas bills. Six Nations Lands and Resources Director Lonny Bomberry sought permission from elected council to enter into talks with Enbridge over its Line 10 replacement project. The pipeline crosses traditional Six Nations territory and is known as the Westover segment in southern Ontario. Enbridge has had a shaky history with First Nations in southern Ontario, having faced numerous protests regarding its controversial Line 9B expansion project. The Chippewas of the Thames had taken Enbridge to court over that project, saying they weren’t consulted or accommodated, but they lost in a supreme court decision in 2017, said Bomberry… “Councillors told Bomberry Six Nations should talk about getting fuel delivery charges removed as part of the discussions with Enbridge… “Coun. Helen Miller said she was concerned because Enbridge applied to the Ontario Energy Board to raise its rates. “We can’t afford to raise our rates,” said Miller.
CLIMATE FINANCE
Financial Times: US fund managers cross Atlantic to buy European oil stocks
Nicholas Megaw and Derek Brower, 12/7/22
“European oil companies are attracting US investors who view them as cheap compared with the likes of ExxonMobil and Chevron after a furious rally in American energy stocks,” the Financial Times reports. “The valuation gap between European and US supermajors is luring investors who don’t usually invest in Europe. London-listed BP recently became the second-largest holding at BlackRock’s $19bn US equity dividend fund, for example. The trend comes as some European fund managers avoid oil companies on environmental grounds. “Investors in the US are more amenable to energy investments than [fund managers] in Europe,” Tony DeSpirito, BlackRock’s chief investment officer for US fundamental equities, who manages the equity dividend fund, told FT. Shares in European supermajors are trading at less than half the value of their US rivals when measured as a multiple of their expected profits over the next 12 months. Analysts at JPMorgan Chase say the spread has become “extreme”. The share prices of most global energy producers have gained this year as high oil and natural gas prices drive bumper profits. But performance has diverged between the regions. The S&P 500 energy sub-index is up 53 per cent in 2022, more than double the 18 per cent rise of Europe’s Stoxx 600 energy sub-index… “In Europe, companies have been hampered by a weaker economy, political risks such as windfall taxes and threats like a court ruling that forced Shell to revise its strategy last year. Some investors have also questioned European producers’ greater emphasis on diversifying away from oil and gas by building up new clean energy businesses. “Investors are saying, ‘You’re good at producing oil, not building wind farms’,” Andrew Gillick, energy sector strategist at Enverus, a consultancy, told FT. “Investors are very clear about what Exxon and Chevron do. It’s not so clear to them any more what BP and Shell want to do.”
Press release: Vanguard Has Quit NZAM and Dropped Any Pretext on Climate Commitment
12/7/22
“In response to the breaking news that Vanguard is quitting the Net Zero Asset Managers (NZAM) initiative, the Vanguard S.O.S. campaign has released the following statement: “Vanguard has long lagged even its own industry peers in mitigating climate risks, but at least it claimed to be moving in the right direction. Now, with its decision to walk away from NZAM, the firm is dropping any pretext. Vanguard is bowing to right-wing political pressure instead of serving its customers’ best interests. It’s now clear that investors who are concerned about climate risk should take their investments elsewhere,” said Casey Harrell, Senior Strategist, Vanguard S.O.S.
OPINION
The Hill: A key climate metric gets an overdue update
Max Sarinsky is a senior attorney at the Institute for Policy Integrity at New York University School of Law. Peter Howard, Ph.D., is the economics director at the Institute for Policy Integrity at New York University School of Law, 12/7/22
“Amid the flurry of news from the recent UN climate summit COP27, the Biden administration made an overlooked announcement that could help modernize U.S. climate policy. In trying to assess how much a ton of climate pollution harms society, the U.S. government has long used a metric called the social cost of carbon. That metric places a dollar value on greenhouse gas emissions and enables government decision-makers to weigh the costs and benefits of policies that affect climate pollution,” Max Sarinsky and Peter Howard write for The Hill. “But there’s one problem. Since the government began using the social cost of carbon under the George W. Bush administration, it has repeatedly recognized it as an undervaluation that omits known consequences of climate change. The government has thus consistently undercounted the societal benefits of reducing climate pollution when assessing regulations and other policies, tipping the scales toward polluters over people. The U.S. Environmental Protection Agency (EPA) took a critical step to correct this problem by proposing a comprehensive update to the social cost of carbon. Consistent with the scientific and economics literature from independent researchers, the update would raise the metric’s central value from $51 to $190 for each ton of carbon-dioxide emissions in 2020… “By increasing the social cost of carbon, EPA’s new draft valuations reflect the longstanding and bipartisan understanding that prior values were a conservative underestimate… “Five years after the National Academy called on the government to update the metric and counter its pro-polluter bias, EPA has finally delivered. Soon, the decision-makers weighing critical policy choices will be equipped with a much more accurate tool for understanding climate impacts.”