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COAL AND NUCLEAR SHOULD BE PART OF FUTURE, PERRY SAYS: Energy Secretary Rick Perry argued Friday morning that “there is no free market in energy” because former President Barack Obama unfairly boosted renewables, as he defended his much-criticized proposal to prop up coal and nuclear plants.
Burying the lead: Perry barely made news in his prepared speech to veterans. But during the question-and-answer session, he directly addressed critics of his proposal to the Federal Energy Regulatory Commission to create regulations that would change regional power market pricing to reward the “reliability and resilience attributes” of plants that have 90 days of fuel supply on site, meaning coal and nuclear.
Obama did it: Perry suggested his support for coal and nuclear power is no different than the Obama administration’s interest in expanding renewable energy. He said “baseload” power sources such as coal and nuclear, which provide round-the-clock power, are essential to the “future security of this country.”
‘Thumb on the scales’: “We have elections, and they have consequences,” Perry said. “Barack Obama clearly had his interest in the energy industry on renewables, they had their thumb on the scale at great detriment to reliable baseload industries that are really important for the future security of this country.”
‘Not a directive’: Perry insisted his proposal to FERC, which is independent, is “not a directive”, but rather is meant to start a conversation. Still, he made clear what he would like FERC to do.
“It wasn’t a directive to them,” Perry said. “You need to take a look at this and have this conversation about making sure we have an energy foundation that is stable, resilient, and I happen to think coal and nuclear should be a part of that.”
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EPA TO SEEK INPUT IN CLIMATE RULE ROLLBACK: The Environmental Protection Agency will release its proposal in the next few days on how to restructure a replacement for Obama’s signature climate rule, the Clean Power Plan.
The rule that the Trump EPA is expected to put forward will solicit input from industry, environmentalists and others on how it should regulate coal and natural gas plants to reduce greenhouse gas emissions, according to a 43-page copy of the proposal obtained by the Washington Post and Bloomberg.
The proposal won’t put forth an alternative plan for how to regulate carbon emissions, which the Supreme Court has the legal authority to do. Instead, the EPA will seek public comment on the best way to cut emissions from natural-gas and coal-fired power plants.
The coal industry and unions have weighed in at meetings with the White House. They favor providing regulatory incentives for coal plants to make efficiency improvements.
One rollback deserves another: The approach likely would entail rolling back New Source Review rules that have prevented the coal industry from making improvements in the past. But the EPA is being cautious about giving away too much in the way of details at this point.
SENATE APPROVES PIPELINE SAFETY CHIEF: The Senate confirmed Howard Elliott to be head of the Pipeline and Hazardous Materials Safety Administration at the Department of Transportation.
“We applaud the Senate for its quick work in approving Howard Elliott to serve as PHMSA administrator. Elliott brings extensive experience and leadership in safety, security, operations and emergency management to PHMSA,” said Don Santa, president of the Interstate Natural Gas Association of America, which represents the pipeline industry.
MUSK TO THE RESCUE: Electric carmaker and solar energy guru Elon Musk says he can fix Puerto Rico’s electricity problems with an infusion of solar panels and energy storage power packs that he, of course, manufactures.
“The Tesla team has [built solar grids] for many smaller islands around the world, but there is no scalability limit, so it can be done for Puerto Rico too,” Musk posted on Twitter Thursday night. “Such a decision would be in the hands of the PR govt, PUC, any commercial stakeholders and, most importantly, the people of PR.”
In the months that preceded the hurricane events that devastated the island, Puerto Rico had been contemplating a shift to solar and natural gas.
Tesla has put up micro grids using solar and battery power packs in American Samoa.
TRUMP NOMINATES COAL LOBBYIST AS PRUITT’S DEPUTY: President Trump on Thursday nominated Andrew Wheeler, a coal lobbyist, to be deputy administrator of the Environmental Protection Agency.
Coal booster: Perhaps most importantly, Wheeler was a registered lobbyist for Murray Energy, the nation’s largest privately owned coal company. Wheeler de-registered himself as a Murray lobbyist in an Aug. 11 filing with Congress.
Why it matters: Trump signed an executive order in January that prevents registered lobbyists from participating in “any particular matter” on which they lobbied in the past two years. But the executive order says the administration can grant a waiver. It’s not clear if his lobbying status will require a waiver by the EPA.
The opposition: Wheeler will have a hearing before the Senate Environment and Public Works Committee, a “horrifying” prospect for environmentalists, who view his nomination as another Trump administration boon for the energy industry.
FERC’S HONORABLE JOINS THINK TANK: Former Democratic commissioner Colette Honorable joined the Bipartisan Policy Center this week after leaving the Federal Energy Regulatory Commission a few months ago.
The think tank focuses on finding common ground between Republicans and Democrats to reach policy and legislative solutions.
Perfect timing: Honorable is joining the group just as Perry defied precedent and sent his order to FERC to expeditiously roll out regulations that would create new market rules to help coal and nuclear plants.
TRUMP’S FAVORITE COAL MOGUL PRODS FERC: Bob Murray, CEO of coal mining company Murray Energy, took a break from suing HBO funnyman John Oliver to give his two cents on why FERC needs to approve Perry’s proposed payments.
Murray said the commission needs to “swiftly” enact the proposal.
“Low-cost and reliable electricity is a staple of life, and this action will ensure that our electric power generating stations will be available when we need them most,” he said Thursday.
CONGRESS STEPS CLOSER TO OPENING ANWR FOR DRILLING: Congress is closer to opening up the Arctic National Wildlife Refuge to oil and gas drilling as both chambers made progress on budget legislation Thursday.
In the Senate: The Senate Budget Committee, meanwhile, approved its fiscal 2018 budget resolution that contained a smaller-scale provision intended to permit drilling in the refuge. The budget resolution contains instructions for the Senate Energy and Natural Resources Committee to recommend policies to save $1 billion over the next decade, likely to be served by drilling in the refuge.
A long-time goal: Republicans in Congress have long tried, and failed, to allow energy exploration in a 1.5 million-acre section of the refuge, where billions of barrels of oil lie beneath the refuge’s coastal plain. Democrats have blocked the efforts.
New era: The chances for success are better now. The Senate is primed to use the special process of reconciliation to pass its budget blueprint so that it can be approved by a simple majority, rather than the 60 votes needed to overcome a filibuster. And the Trump administration supports Republican efforts to permit refuge drilling, meaning there is little threat of a presidential veto. Last month the Interior Department lifted restrictions on seismic studies to probe how much oil is under the refuge.
But wait: It’s not clear if enough Senate Republicans would back the proposal if it goes to a floor vote.
DEMS PROD PRUITT OVER CONE OF SILENCE: House Democrats are calling for an investigation into reports that EPA Administrator Scott Pruitt is spending almost $25,000 to build a protective, soundproof booth to guard against eavesdropping.
“The reported installation of this equipment is unprecedented and may represent yet another example of bureaucratic malfeasance by the Trump administration,” wrote Rep. Frank Pallone of New Jersey, the top Democrat on the Energy and Commerce Committee, in a letter sent Thursday to EPA Inspector General Arthur Elkins Jr.
Reps. Paul Tonko of New York and Diana DeGette of Colorado also signed the letter.
Troubling distrust: If it is found that the booth is meant to ensure privacy, then it is the “latest action in a troubling pattern of secrecy and distrust” at the EPA under Pruitt, according to the letter. It pointed out that there has been a pattern of prohibitions on EPA staff meant to limit the use of cell phones or take notes in meetings with the EPA chief.
What they want: The Democrats want Elkins to establish why Pruitt needs the soundproof booth in the first place, and pointed out that the EPA headquarters is already equipped with a similar booth. At a minimum, spending money on an unnecessary device or upgrade could represent a violation of policies and agency rules meant to stop “waste, fraud and abuse,” the letter read.
They want Elkins to also probe whether EPA’s current policies are adequate to prevent such waste, if indeed EPA is building the booth.
INTERIOR MOVES ON OVERHAULING SAGE GROUSE PROTECTIONS: The Trump administration on Thursday published a formal notice to overhaul an Obama-era plan to protect sage grouse, a chicken-sized Western bird.
How we got here: Interior’s action comes after a task force recommended the agency work with states to determine appropriate levels for the bird populations on a state-by-state basis, while giving states more flexibility on how to meet the Obama administration’s land protection standards.
Recommendation meets action: By submitting a formal notice of intent, the Interior Department is acting on those recommendations. The public now has 45 days to comment on the proposal.
RUNDOWN
New York Times For electric car owners, ‘range anxiety’ gives way to ‘charging time trauma’
Washington Post A new study reinforces the possibility of climate change “feedback” involving the planet’s soils
Reuters How solar energy saved a Puerto Rican farm from Hurricane Maria
Bloomberg Trump quietly stalls safeguards for dozens of endangered species
Reuters Boeing-backed, hybrid-electric commuter plane to hit market in 2022
Calendar
FRIDAY, OCT. 6
11 a.m., Searsmont, Maine. Senate Energy and Natural Resources Committee holds a field hearing on efficient approaches to reducing industrial energy costs.
MONDAY, OCT. 9
Columbus Day federal holiday.
WEDNESDAY, OCT. 11
11 a.m.-1 p.m., webinar, The National Association of State Energy Officials and U.S. Energy Information Administration hold the Winter Energy Outlook Webinar.
2 p.m., 1334 Longworth. The House Natural Resources Committee holds a hearing on amending the Outer Continental Shelf Lands Act to distribute revenue from oil and gas leasing on the outer Continental Shelf to certain coastal states, and for other purposes.
naturalresources.house.gov/calendar/eventsingle.aspx?EventID=403026
THURSDAY, OCT. 12
10 a.m., 2123 Rayburn. The House Energy and Commerce Committee’s Energy Subcommittee holds a hearing on “Department of Energy Missions and Management Priorities.” Energy Secretary Rick Perry will testify as the sole witness.
FRIDAY, OCT. 13
All day, Las Vegas. National Clean Energy Summit 9.0, hosted by former Senate Democratic leader Harry Reid of Nevada at the Bellagio Resort and Casino. Speakers include Al Gore and John Kasich, among others.
