Daily on Energy: Inslee sees a place for corn in plan to scrap EPA’s ethanol mandate

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INSLEE SEES A PLACE FOR CORN IN PLAN TO SCRAP EPA’S ETHANOL MANDATE: Democratic presidential hopeful Jay Inslee says there would be a place for corn ethanol in his plan to replace the nation’s renewable fuel program with one that has a record of making corn farmers wary.

Inslee tells John that his plan focuses on more advanced second-generation biofuels, but that he believes corn ethanol should have a place.

The interview was conducted while Inslee was touring Iowa earlier this week. Iowa is the largest ethanol producer in the nation, and a key state for determining the next president of the United States.

President Trump recently said his promise to increase the amount ethanol sold year-round benefited him in the 2016 race. Trump’s Environmental Protection Agency enacted a rule last week to fulfill that promise

The question put to Inslee: Would your Low-Carbon Fuel Standard welcome more, or less, corn ethanol?

“I think we have to be ambitious in looking at all potential low- and zero-carbon fuels, and that includes that potential fuel source,” the Washington governor responded. “It is something where technology is changing and we ought to continue to allow its growth. That’s my belief.”

Inslee says that he is currently in the process of enacting a Low-Carbon Fuel Standard in his state, similar to the one in California and another in Oregon.

California’s original version of the program penalized corn ethanol, leading the ethanol industry into a court fight with the state. Later, changes were made to how the state assessed ethanol’s benefits, and now ethanol makes up the largest portion of low-carbon fuel in the Golden State.

Renewable fuel advocates want the same thing to occur in Washington and Oregon, although they are wary of Inslee’s proposal to create a national low-carbon standard.

Inslee says, for now, the fuel standard in his state is off the table until the next legislative session. A bill that would enact his plan failed to pass this year amid opposition from the oil industry.

He did issue an executive order to enact rules that would favor fuels that produce less carbon dioxide pollution. But that is tied up in the courts.

Nevertheless, Inslee says his record on legislation is pretty good. “We passed four out of five bills that I proposed, but that one did not pass, yet,” the governor added.

“But I do believe we need a clean fuel standard, also known as a Low-Carbon Fuel Standard,” he said. “I think it’s an effective tool. It’s working in California, and I think the nation needs one and it can be very effective.”

Trump’s trade ‘chaos’ adds to the climate damage to farmers: Trump’s trade fight with China is also adding insult to injury, Inslee said, referring to overflowing grain silos he saw while touring Iowa during intense flooding.

“They were all full of grain, right to the brim, because farmers couldn’t sell their crop, because of the trade chaos Trump is causing,” Inslee added. “Then here comes the flood, made worse because of climate change, which Trump refuses to deal with.”

“As a result you see the farmers’ assets spread out all over the ground and unusable,” he said.

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INSLEE RELEASES FOREIGN POLICY PLAN TO ‘DEFEAT’ CLIMATE CHANGE: Inslee released Wednesday what he called the first foreign policy agenda ever to be built around defeating climate change.

This is the third component of Inslee’s multifaceted climate agenda that has an overarching goal of making the U.S. achieve net-zero emissions, across all economic sectors, by 2045, while closing all the country’s coal plants by 2030.

“Defeating climate change must become the organizing principle of our entire foreign policy thought process,” Inslee said Wednesday morning during an address at the Council on Foreign Relations in New York.

Doubling-down on Paris deal: Inslee says his first global action would be to rejoin the Paris Agreement and to set a higher target than the Obama administration’s goal to cut greenhouse gas emissions 26% to 28% by 2025 compared with 2005 levels. Inslee seeks to achieve a 50% reduction in U.S. emissions by 2030, while also pushing other countries to boost their targets.

He would double the U.S.’ commitment to the Green Climate Fund, a U.N. program for rich countries to help poor ones adapt to climate change. The Trump administration has canceled a $2 billion payment to the fund.

Inslee would also submit to the Senate for ratification the Kigali Amendment, an international agreement which seeks to phase out HFCs, refrigerants used in cooling systems that are more potent than carbon and methane. The Trump administration has not submitted the treaty for ratification.

Challenging China and fossil fuel funding: Inslee vowed to take on China, imposing a border-adjustment carbon fee, challenging China to “dramatically shift the priority” to renewable energy in its Belt and Road Initiative, and pushing the country to end subsidies for fossil fuels in other nations. He threatened to use anti-corruption laws against countries that undermine international cooperation on climate change.

In addition, Inslee would ban the U.S. International Development Finance Corporation, Export-Import Bank, and Trade and Development Agency from financing fossil fuel projects abroad.

Inslee also seeks to combat global emissions in sectors where emissions are growing, such as international shipping, and aviation.

Trade and immigration: He proposes implementing an enforceable climate standard to U.S. trade agreements. And to help populations vulnerable to climate change, he would raise the ceiling for annual refugee admissions to the U.S. to exceed the target of 110,000 refugees that the Obama administration set.

EPA CHIEF ACCUSES NEW YORK TIMES REPORTERS OF COLLUDING WITH SIERRA CLUB: Environmental Protection Agency Administrator Andrew Wheeler escalated a dust-up with the media Monday by accusing New York Times reporters of colluding with a major environmental group by retweeting a “made-up” quote of his.

“Makes me wonder if the two reporters for the New York Times were colluding with the Sierra Club,” Wheeler said Wednesday, addressing the agency’s Scientific Advisory Board.

He told the board’s members to use “caution” and “to be careful what you read in the media” after the incident.

The controversy started when EPA slammed a reporter from Yahoo News on Tuesday, saying he made up a quote from a National Press Club address he gave on Monday. The story reported that Wheeler said the news media does a disservice by reporting on global warming.

BIDEN MANAGES TO MOLLIFY CENTRISTS AND HAWKS WITH CLIMATE PLAN: Joe Biden managed to please both climate change hawks and centrists with his $5 trillion “clean energy revolution” plan introduced Tuesday.

Biden assuaged fears from critics to his Left who predicted he’d be too moderate on climate change with the proposal and his pledge to reject campaign contributions from oil, gas, and coal corporations or executives, a key demand of environmental activists.

“Definitely a B-plus grade when we were expecting C-minus,” R.L. Miller of the voter mobilization group Climate Hawks Vote, told Josh. “It’s great to see that he’s more or less embraced the ‘No Fossil Fuel Money’ pledge and the Green New Deal.”

Technology-neutral plan: Biden also mollified centrists by proposing a later time frame for the U.S. to achieve net-zero emissions and 100% clean energy — 2050 — while allowing all carbon-free options, rather than only renewable energy sources, to contribute to the goal. Biden’s plan embraces both carbon capture technology for fossil fuel plants and nuclear power, providing a lifeline to threatened industries.

Getting tough on China: Biden also scored wins with free trade skeptics in his party by vowing to crack down on China, describing it as a competitor in the clean energy economy, but one that doesn’t always play by the rules.

“Biden is taking a page from Trump’s playbook in utilizing trade policy, but for a progressive goal,” Paul Bledsoe, a former climate change adviser in the Clinton administration, told Josh.

But Biden’s rollout was far from perfect. His campaign acknowledged he copied some language in the plan from environmental groups.

THERESA MAY TELLS TRUMP IT’S BETTER TO TACKLE CLIMATE CHANGE TOGETHER: British Prime Minister Theresa May explained to Trump that it is better when the two nations address challenges like climate change together, while reiterating the U.K.’s resolve to remain in the Paris climate change agreement.

“Recognizing our nations are safer and more prosperous when we work together on the biggest challenges of our time, I also set out the UK’s approach to tackling climate change and our continued support for the Paris Agreement,” May said at a press conference with Trump on Tuesday amid a state visit.

May reiterated her decision to remain a part of the landmark climate accord just days after Trump’s two-year anniversary of announcing his decision to exit the Paris agreement.

Britain had just passed the two-week mark for generating electricity without the use of coal. Instead, it has switched to using more natural gas, while it moves to greater use of renewables.

Coal advocates in the U.S. argue that the U.K.’s decision to transition away from coal will begin to drive up the island nation’s energy costs.

INTELLIGENCE OFFICIALS WARN OF CLIMATE NATIONAL SECURITY EFFECTS AS TRUMP CASTS DOUBT: U.S. intelligence officials described the national security implications of climate change to House lawmakers Wednesday morning, as Trump continued to cast doubt over the subject during his Europe trip.

“Earth’s climate is unequivocally undergoing a long-term warming trend. Global temperatures are set to continue to increase over the coming decades,” said Rod Schoonover, a senior analyst at the State Department’s Bureau of Intelligence and Research, in testimony before the House Intelligence Committee. “We expect many climate linked stresses to intensify or emerge, many with outcomes important for national security. We expect no country to be immune to the threats of climate change.”

Schoonover described threats including economic damage, food and water security challenges caused by drought — leading to disputes between local populations over natural resources, sea level rise, and changing global migration patterns.

Peter Kiemel, a counselor to the National Security Council, said that the thawing of the Arctic will shorten routes, making it more easily navigable and vulnerable to commercial exploitation by Russia and China for mining and fishing.

Their testimony contradicts Trump’s rhetoric and moves by political appointees at the National Security Council to potentially create a panel to question climate change science.

Trump, in an interview with Piers Morgan on “Good Morning Britain” airing Wednesday, said: “I believe that there’s a change in weather, and I think it changes both ways.”

DEMOCRAT SLAMS TRUMP AFTER REVIEWING OBTAINED SAUDI NUCLEAR AGREEMENTS: Massachusetts Democrat Ed Markey is fuming over the Trump administration’s decision to approve agreements to share nuclear expertise with Saudi Arabia, while leaving Congress in the dark.

“It is clear that the only reason the Trump administration withheld this information for so long was to hide what it was doing and escape Congressional oversight,” Markey said after reviewing copies of the agreements that he obtained on Tuesday from the administration.

“It is outrageous to learn that at the time I first requested information on any part 810 authorizations with regard to Saudi Arabia, the Trump administration had already approved one and was considering three others,” Markey said.

The senator had requested copies of the authorizations back in February 2018 from then Secretary of State Rex Tillerson and Energy Secretary Rick Perry.

Nuclear industry lobbyists argue that the authorizations don’t mean that nuclear technology, or even proprietary information, have been exchanged with Saudi Arabia under authorizations. It can simply mean that discussions can now take place between officials from both countries on a variety of different issues involving power plant construction.

Both Republicans and Democrats have called for refraining from cooperation with Saudi Arabia on defense and nuclear development after the murder of Saudi journalist and U.S. resident Jamal Khashoggi. Saudi Crown Prince Mohammed bin Salman has been implicated in the murder.

EPA, FEMA STRENGTHEN TIES IN FIRST-EVER AGREEMENT TO COORDINATE AMID RECORD FLOODS: The EPA and Federal Emergency Management Agency signed a first-of-its-kind memorandum of understanding on Tuesday to help the two agencies better coordinate their efforts in responding to natural disasters.

The memorandum will help streamline the process for states to receive EPA-funded loans to restore vital water infrastructure as prolonged flooding in the Midwest has called for a more robust federal response.

“This MOU is another way the Trump Administration is working to help communities and utilities prepare for and respond to natural disasters and other emergencies,” said Wheeler. “This first-of-its-kind MOU with FEMA will give disaster-stricken communities expedited access to federal funds that will aid in their rebuilding process,” he added.

The Rundown

New York Times Judges give both sides a grilling in youth climate case against the government

Axios Earth’s carbon dioxide has jumped to the highest level in human history

Reuters US report urges steps to reduce reliance on foreign critical minerals

Houston Chronicle Permian gas flaring hits new record highs for ‘widespread waste,’ pollution

Calendar

WEDNESDAY | June 5

9 a.m., Omni Shoreham Hotel. The Nuclear Energy Institute holds the Nuclear Energy Assembly in Washington.

MONDAY | June 10

9 a.m., Philadelphia. The Edison Electric Institute, representing the investor-owned utility industry, holds its 2019 annual convention in Philadelphia, June 10-11.

TUESDAY | June 11

The House Energy and Commerce Committee’s Oversight and Investigations Subcommittee holds a hearing with former EPA administrators Lee Thomas, William Reilly, Christine Todd Whitman, and Gina McCarthy testifying.

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