Tag Archives: PM 2.5

Weekly News Check-In 12/11/20

banner 05

Welcome back.

Representative Stephen Lynch and activists are again calling for the Weymouth compressor station to be shut down, following multiple occurrences of natural gas venting as the station prepared to begin operation. Of course, venting will occur regularly as part of the compressor’s normal function. That’s why these facilities are not sited in congested communities…. Oh, except for this one.

Occasionally, the week’s news organizes around a common theme. This week, most of the stories touched on the idea that environmental regulations are nice, except when they get in the way of progress. When that happens, industry and regulators seem all too eager to re-write the rules, or simply “reinterpret” the teeth right out of them. Numerous environmental regulations should have protected Weymouth from Enbridge’s compressor.

Other pipeline projects are similarly manipulating the regs. Mountain Valley Pipeline (MVP) hasn’t managed to pass environmental review for a number of key permits – so compliant state and federal regulators are rewriting the rules to lower the bar. Enbridge wants to pipe tar sands oil through northern Minnesota’s environmentally sensitive lake country. Indigenous groups and environmentalists feel so marginalized and ignored by regulators that tree sitters have resorted to setting up positions along the pipeline’s path as winter locks in.

Meanwhile, the divestment movement notched another win, as New York State’s comptroller announced that the state would begin divesting its huge employee pension fund from gas and oil companies unless they submit a legitimate business plan within four years that is aligned with the goals of the Paris climate accord. And since December marks the fifth anniversary of that historic climate agreement, we take a look at how well countries are delivering on their promises.

The clean energy sector has been buzzing lately about all things hydrogen. Turns out a lot of that press is being pushed by the natural gas industry with the help of top industry public relations firm FTI Consulting. We offer extensive coverage showing how the prospect of green hydrogen is being used to extend the economy’s dependence on natural gas.

The Biden presidency is expected to focus early on energy efficiency, and that’s good news for people looking for help with building weatherization and heat pumps. But electrified homes work best when connected to a green grid, and unfortunately New England’s grid operator was just forced to cancel an important rule that would have supported faster deployment of utility scale battery storage.

There’s trouble brewing in clean transportation, too, as auto companies seek reliable sources of lithium for batteries to power the millions of electric vehicles they’ll soon build. This week’s theme of regulators bending environmental rules for industry is also an issue in so-called green sectors – and the damage can be just as profound.

We found a couple of new reports on the hazards of using natural gas indoors. This especially applies to gas ranges with inadequate ventilation. Of course, this science-based public health warning is being vigorously countered by a gas industry PR blitz touting the superiority of gas stove tops. You may have seen the ads or encountered social media influencers touting the wonders of blue flame cooking. It looks like California is preparing a regulatory update.

As expected, Trump’s Environmental Protection Agency failed to strengthen limits on fine particulate pollution, even though research and our recent experience with Covid-19 implicate airborne soot as a significant health hazard. [40 days left….]

On the bright side, the 9th Circuit Court of Appeals ruled this week to kill offshore drilling in the Arctic. This may set a precedent that will also keep the fossil fuel industry out of the Arctic National Wildlife Refuge (ANWR).

The US liquefied natural gas industry faces headwinds from the Europe’s Green Deal, which accounts for emissions associated with extraction and transport when rating fuels. LNG export projects that depend on fracked gas are being re-evaluated and even scrapped.

We wrap up with a biomass story. Britain used the Kyoto Climate Agreement’s incorrect classification of woody biomass as “carbon neutral”, to convert the huge Drax power station from coal to wood pellets. Aside from the real-world emissions issues, fueling it is devastating Baltic forests.

button - BEAT News button - BZWI For even more environmental news, info, and events, check out the latest newsletters from our colleagues at Berkshire Environmental Action Team (BEAT) and Berkshire Zero Waste Initiative (BZWI)!

— The NFGiM Team

WEYMOUTH COMPRESSOR STATION

Stephen Lynch for Weymouth
Stephen Lynch, activists call for shutdown of Weymouth natural gas compressor station
By Marie Szaniszlo, Boston Herald
December 5, 2020

U.S. Rep. Stephen Lynch called a controversial Weymouth natural gas compressor station’s decision to vent gas into the community multiple times during its first week of operations “deeply troubling” and said the station needs to be shut down.

“The fact that Enbridge describes all of this as ‘routine’ and openly dismisses the threat to the public is deeply troubling,” Lynch, a South Boston Democrat, said in a tweet. “Venting natural gas into the atmosphere has an inherent harm that cannot be completely eliminated, and due to its proximity to heavily populated areas, it poses a grave risk to Weymouth residents and surrounding communities. At this point, it is clear that as long as the Weymouth Compressor Station is active, it will threaten public health and safety and must be shut down.”

In an email Saturday, Max Bergeron, a spokesman for Enbridge, the energy company that built the facility, said: “Safety will always be our number one priority at Enbridge, and the Weymouth Compressor Station benefits from multiple safety features in place to support safe and responsible operation of the facility, in compliance with applicable environmental and safety regulations.”

He said the venting may occur intermittently between 7 a.m. and 7 p.m. through Dec. 11 and said the “controlled” venting of natural gas is “a safe and routine procedure, and the gas that is vented will naturally dissipate. There is no cause for concern and there will be no danger to persons or property in the area.”

But community activists are unconvinced that the venting — and the facility itself — will be safe after accidental gas leaks this fall prompted two emergency shutdowns and a federally ordered pause in operations.

“This opens up our community to more health risks,” said Alice Arena of the Fore River Residents Against the Compressor Station. “They say they’re going to have intermittent and planned releases. But they’re what we call a blow-down, the release of unburned methane into the air. Not only is it toxic, but it’s really driving us over the edge in terms of climate change.”
» Read article     

» More about the Weymouth compressor station

PIPELINES

shifting MVP goalposts
Federal Regulators Are Rewriting Environmental Rules So a Massive Pipeline Can Be Built
Federal regulators and West Virginia agencies are rewriting environmental rules again to pave the way for construction of a major natural gas pipeline across Appalachia, even after an appeals court blocked the pipeline for the second time.
By Ken Ward Jr., ProPublica
December 8, 2020

Last month, a federal appeals court blocked one of the key permits for construction of a massive natural gas pipeline that cuts through West Virginia and that industry officials and their political allies in the state are desperate to see completed.

The 4th U.S. Circuit Court of Appeals found that environmental groups are likely to prevail in a case arguing federal and state regulators wrongly approved the Mountain Valley Pipeline through a streamlined review process for which the project isn’t eligible.

If this sounds familiar, it is. A strikingly similar thing happened two years ago.

In October 2018, the same appeals court blocked the same $5.4 billion pipeline because the developer’s plan to temporarily dam four West Virginia rivers didn’t meet special restrictions that state regulators had put on the streamlined approval process.

But rather than pausing or rethinking the project at the time, the state Department of Environmental Protection rewrote its construction standards so that the pipeline would qualify.

After their most recent court loss, West Virginia officials are once again rewriting their restrictions to help pave the way for the pipeline to qualify for that streamlined permitting process.

“Here we go again,” citizen group lawyer Derek Teaney wrote in frustration in the latest of a series of legal challenges to the government agencies that have bent environmental standards for the pipeline.

When it is built, the Mountain Valley Pipeline, known as MVP, will transport natural gas from Wetzel County, near West Virginia’s Northern Panhandle, to Pittsylvania County, Virginia, crossing 200 miles in West Virginia and 100 miles in Virginia. The project is one of several large transmission pipelines in the works across Appalachia, part of the rush to market natural gas from drilling and production in the Marcellus Shale formation.
» Read article    

Enbridge line 3 construction begins
State utility regulators vote against a stay on Enbridge pipeline project
Red Lake and White Earth bands hoped to halt construction while awaiting resolution of appeals.
By Brooks Johnson Star Tribune
December 4, 2020

State regulators declined Friday to grant a stay on construction of Enbridge’s new pipeline across northern Minnesota, leaving little recourse to stop work on the $2.6 billion project while court appeals of key approvals and permits are pending.

“Operation of the existing Line 3 is more likely to cause harm than construction of the project,” said Minnesota Public Utilities Commissioner Valerie Means, explaining her vote against the stay. “The commission has determined that replacing an old, aging pipeline is the safest option for protecting the environment and Minnesota communities.”

The move came on a day when about 1,000 workers were ending the first week of work and protesters gathered at two work sites.

A pair of protesters camped out in trees in Aitkin County and dozens gathered at a job site near Cloquet to disagree with that sentiment as the legal means of stopping the pipeline are now in the hands of the slow-moving Court of Appeals. It could be several weeks at a minimum before the court could intervene in the project and months before the case is decided.

“The PUC’s predictable actions today again demonstrate that the regulatory process in Minnesota is brazenly pro-oil industry,” said Indigenous activist Winona LaDuke, who joined several other self-described “water protectors” near a planned Mississippi River pipeline crossing on Friday. “Without a stay, Line 3 would be constructed before the court could determine if the PUC broke the law, making the case moot.”
» Read article     

EJAG collapse
Minnesota Pollution Control Agency advisers quit over pipeline permit
By Jennifer Bjorhus, Star Tribune
November 18, 2020

A citizen advisory group at the Minnesota Pollution Control Agency (MPCA) has collapsed following the regulator’s decision to issue a water-quality permit to Enbridge Energy for its Line 3 oil pipeline cutting through Minnesota.

The bulk of the agency’s Environmental Justice Advisory Group has resigned in protest over the permitting decision, saying in a letter Tuesday to MPCA Commissioner Laura Bishop that “we cannot continue to legitimize and provide cover for the MPCA’s war on Black and brown people.”

A dozen of the board’s 17 members signed the letter, which called the water-quality permit the “final straw” in a series of MPCA actions that they said sidelined the advisory group. Among those resigning is Winona LaDuke, a member of the White Earth Band of Ojibwe and executive director of Honor the Earth who strongly opposes the pipeline.

In an interview, LaDuke called the decision “a slap in the face.”

“The people who are most impacted are Indigenous people, and for seven years we have tried to make the system work,” she said. “If the MPCA actually valued Indigenous people and environmental justice they would not have issued that permit.”

LaDuke called her four years on the advisory group “a waste of time.”
» Read article    
» Read the advisory board letter

» More about pipelines

PROTESTS AND ACTIONS

Line 3 protest begins
Indigenous groups stage first protests as Enbridge pipeline construction begins
As a set of protestors climbed trees to block workers, a second launched Friday near Cloquet.
By Brooks Johnson, Star Tribune
December 4, 2020

Two protesters climbed trees at a Mississippi River crossing Friday to stand in the way of Enbridge Line 3 pipeline construction, which began earlier this week across northern Minnesota.

The protesters, who call themselves “water protectors,” mounted the protest among an Aitkin County forest set to be logged as “direct blockades to the attempt by Enbridge to drill Line 3 under the Mississippi River.”

“Water is not invincible. That’s why I am here,” said 22-year-old Liam DelMain of Minneapolis in a statement released by Giniw Collective. “I am here, putting my body on the line, because I have been left with no other choices.”

The Giniw protest is the first along the pipeline’s route since construction began this week and comes four years after the massive, months-long Dakota Access Pipeline protest at Standing Rock. Several other protesters came to the site on Friday afternoon, and a live stream from Native Roots Radio showed a discussion between Aitkin County Sheriff Dan Guida and the handful of others at the site. The sheriff’s office did not have a comment on the situation when reached Friday afternoon.
» Read article     

» More about protests and actions

DIVESTMENT

NY calling
New York State Sends a Blunt Message to Big Oil
The comptroller’s threat to pull billions from fossil fuel investments is a big victory for climate activists.
By Bill McKibben, New York Times | Opinion
December 9, 2020
Mr. McKibben is a founder of the climate advocacy group 350.org and a leader of fossil fuel divestment efforts.

New York State’s comptroller, Thomas DiNapoli, announced on Wednesday that the state would begin divesting its $226 billion employee pension fund from gas and oil companies if they can’t come up with a legitimate business plan within four years that is aligned with the goals of the Paris climate accord. Those investments have historically added up to roughly $12 billion.

The entire portfolio will be decarbonized over the next two decades. “Achieving net-zero carbon emissions by 2040 will put the fund in a strong position for the future mapped out in the Paris Agreement,” he said in a statement.

It’s a huge win, obviously, for the activists who have fought for eight years to get Albany to divest from fossil fuel companies and for the global divestment campaign. Endowments and portfolios worth more than than $14 trillion have joined the fight. This new move is the largest by a pension fund in the United States, edging the New York City pension funds under Comptroller Scott Stringer, who announced in 2018 that the fund would seek to divest $5 billion in fossil fuel investments from its nearly $200 billion pension fund over five years.

But it also represents something else: capitulations that taken together suggest that the once-dominant fossil fuel industry has reached a low in financial and political power.

The first capitulation, by investors, is to the understanding that most of Big Oil simply won’t be a serious partner for change. Mr. DiNapoli had long been an advocate of engagement with the fossil fuel companies, arguing that if big shareholders expressed their concerns, those companies would change course. This, of course, should be how the world works: He was correctly warning the companies that their strategy endangered not only the planet but also their businesses, and they should have listened.
» Read article       

» More about divestment

CLIMATE

emissions gap 20205 Years After Paris: How Countries’ Climate Policies Match up to Their Promises
By Morgan Bazilian and Dolf Gielen, The Conversation, in EcoWatch
December 10, 2020

This month marks the fifth anniversary of the Paris climate agreement – the commitment by almost every country to try to keep global warming well below 2 degrees Celsius.

It’s an ambitious goal, and the clock is ticking.

The planet has already warmed by about 1°C since the start of the industrial era. That might not sound like much, but that first degree is changing the planet in profound ways, from more extreme heat waves that put human health and crops at risk, to rising sea levels.

Bold visions for slowing global warming have emerged from all over the world. Less clear is how countries will meet them.

So far, countries’ individual plans for how they will lower their greenhouse gas emissions don’t come close to adding up to the Paris agreement’s goals. Even if every country meets its current commitments, the world will still be on track to warm by more than 3°C this century, according to the United Nations Environment Program’s latest Emissions Gap Report, released Dec. 9. And many of those commitments aren’t yet backed by government actions.
» Read article           
» Read the UNEP’s Emissions Gap Report 2020

» More about climate

CLEAN ENERGY

pro-H2 push
Major Fossil Fuel PR Group is Behind Europe Pro-Hydrogen Push
By Justin Mikulka, DeSmog Blog
December 9, 2020

The recent deluge of pro-hydrogen stories in the media that tout hydrogen as a climate solution and clean form of energy can now be linked in part to FTI Consulting — one of the most notorious oil and gas industry public relations firms.

According to a new report, titled The Hydrogen Hype: Gas Industry Fairy Tale or Climate Horror Story?, released by a coalition of groups in Europe including Corporate Europe Observatory (CEO) and Food and Water Action Europe, details the work of FTI to push hydrogen as a clean climate solution in Europe. So far it appears FTI is being quite successful in this endeavor. As the report notes, the “European Commission is most definitely onboard” with the idea of a hydrogen-based economy.

FTI Consulting’s previous and ongoing work promoting the fossil fuel industry’s efforts to sell natural gas as a climate solution were recently featured in an article by the New York Times.

Among FTI’s misleading claims it defended to the New York Times was that the Permian region in Texas — the epicenter of the U.S. shale oil industry’s fracking efforts — was reducing methane emissions. This claim, however, was based on government data that did not include emissions for actual oil and gas wells, which are major emitters of methane emissions. FTI’s argument is easily disproved as methane emissions in Texas continued to break records in 2019.

And now FTI is taking the same approach for hydrogen as it has for natural gas — promoting it as a climate solution despite the evidence to the contrary.

One of the main goals of the lobbying efforts to create a “hydrogen economy” in Europe to sell the idea of utilizing existing gas infrastructure (e.g. pipelines) for hydrogen. Hydrogen gas can currently be mixed with methane and be transported by existing pipelines — which is a major selling point for hydrogen’s supporters.

However, there is a potential fatal flaw with this idea that has not been addressed. Hydrogen can react with steel to make it brittle. A 2018 paper published in the journal Procedia Structural Integrity, found that “using pipelines designed for natural gas conduction to transport hydrogen is a risky choice” as doing so “may cause fatigue and damage the structure.” This is a widely known and researched issue with hydrogen and pipelines but is a fact that is being left out of the current public relations efforts.

The methane industry already has a pipeline explosion problem and hydrogen will increase those risks because it can make steel pipelines more brittle and susceptible to failure and gas leaks.

The concept of hydrogen being a clean fuel is also dependent on the idea that the unproven and costly technologies being touted for carbon capture for fossil fuels can be effective in producing low carbon and affordable blue hydrogen.

Perhaps the biggest reason green hydrogen isn’t a good choice to decarbonize the economy when compared to electrification is that producing green hydrogen would take enormous amounts of electricity — which can just as easily be used directly to electrify transportation and heating.
» Read article           
» Read “The Hydrogen Hype” report
» Read NY Times article about FTI Consulting
» Read NY Times article excerpt in Weekly News Check-In 11/13/20

ENERGY EFFICIENCY

Biden to push green buildings
Green buildings ‘unheralded hero’ in emissions fight, experts say

By Chris Teale, Utility Dive
December 10, 2020

President-elect Joe Biden’s plan to upgrade the buildings sector and make it more energy efficient could be critical to help fight the effects of climate change, elected officials said Wednesday during a webinar hosted by the U.S. Green Building Council.

Biden’s Clean Energy Plan says it would create 1 million jobs to upgrade 4 million buildings across the United States and weatherize 2 million homes, all within four years. Such energy efficient upgrades is something that should receive bipartisan support as it saves money in the long run and creates jobs, while also bringing down emissions, Rep. Peter Welch, D-VT, said during the webinar.

A strong federal partner will also be needed in a national building strategy, with cities and states having led the way previously, speakers said. The federal government can play a leading role in strengthening building codes, streamlining the permitting process and pushing through approvals, with financial incentives and technical support as two key ways for national leaders to help, Rep. Kathy Castor, D-FL, said.

Biden’s plan would make a variety of upgrades to areas like lighting systems, HVAC systems and other appliances to improve their cost and energy efficiency. For homes, the plan would include direct cash rebates and financing to upgrade household appliances and install more energy efficient windows. The administration also plans to push legislation that would set new net-zero standards for all new commercial buildings for 2030.
» Read article            

» More about energy efficiency

ENERGY STORAGE

ISO-NE cap mkt FERCed
New England energy storage advocates say FERC ruling is a setback for industry

The Federal Energy Regulatory Commission ordered New England’s grid operator to end a rule that let new resources lock in prices for up to seven years.
By David Thill, Energy News Network
Photo By Ryan McKnight / Flickr / Creative Commons
December 8, 2020

A decision by federal regulators to throw out a rule that has helped emerging technologies gain a foothold on New England’s electric grid will put the region’s energy storage industry in jeopardy, according to advocates.

The Federal Energy Regulatory Commission last week ordered New England’s grid operator to end a rule that has allowed new bidders in its capacity market to lock in their prices for up to seven years.

The annual capacity auction is meant to ensure the region will have enough electricity to meet peak demand three years in the future. Developers bid resources, often yet to be built, into an auction, and those accepted are paid to be available to meet demand.

The rule has allowed owners of new resources to avoid potential fluctuations in future auctions. That means the developer has a guaranteed revenue stream, something that can help them gain investor confidence when they’re trying to capitalize the project.

Several groups, led by the New England Power Generators Association, asked the Federal Energy Regulatory Commission to overturn the rule. (The association’s members include fossil and renewable developers.) They said the rule suppresses prices in the market and hurts competition. ISO-New England has said the rule is no longer clearly necessary, given that it was enacted to address a capacity shortage that’s been mitigated.

On Thursday, FERC agreed, saying the rule distorts prices and is no longer needed to attract new entrants into the market. The decision comes as states in New England and other regional transmission organizations reconsider their future in the markets as they move toward a cleaner energy mix.

Renewable and storage advocates, led by Renew Northeast and the Energy Storage Association, have said the rule is necessary, especially for storage.

Very few battery resources have actually bid into the capacity market or secured the price lock. But developers say that just as the market was important for new gas generators to get built in past years, it should now allow for the same development of new storage projects. Storage is still a new technology, and investors often aren’t yet willing to commit to funding it.

“We’re at a point … where I would say the last thing New England needs is another gas plant, and so I would argue that the seven-year price lock for gas plants has served its term,” said Liz Delaney, director of wholesale market development at Borrego Solar. “It’s done a great job. It’s probably not necessary because the region does not need new ways to incent fossil generation. What we need are ways to incentivize the resources of the future.”
» Read article            

» More about energy storage

CLEAN TRANSPORTATION

lithium curse
The curse of ‘white oil’: electric vehicles’ dirty secret
The race is on to find a steady source of lithium, a key component in rechargeable electric car batteries. But while the EU focuses on emissions, the lithium gold rush threatens environmental damage on an industrial scale
By Oliver Balch, The Guardian
December 8, 2020

Electrifying transport has become a top priority in the move to a lower-carbon future. In Europe, car travel accounts for around 12% of all the continent’s carbon emissions. To keep in line with the Paris agreement, emissions from cars and vans will need to drop by more than a third (37.5%) by 2030. The EU has set an ambitious goal of reducing overall greenhouse gas emissions by 55% by the same date. To that end, Brussels and individual member states are pouring millions of euros into incentivising car owners to switch to electric. Some countries are going even further, proposing to ban sales of diesel and petrol vehicles in the near future (as early as 2025 in the case of Norway). If all goes to plan, European electric vehicle ownership could jump from around 2m today to 40m by 2030.

Lithium is key to this energy transition. Lithium-ion batteries are used to power electric cars, as well as to store grid-scale electricity. (They are also used in smartphones and laptops.) But Europe has a problem. At present, almost every ounce of battery-grade lithium is imported. More than half (55%) of global lithium production last year originated in just one country: Australia. Other principal suppliers, such as Chile (23%), China (10%) and Argentina (8%), are equally far-flung.

Lithium deposits have been discovered in Austria, Serbia and Finland, but it is in Portugal that Europe’s largest lithium hopes lie. The Portuguese government is preparing to offer licences for lithium mining to international companies in a bid to exploit its “white oil” reserves. Sourcing lithium in its own back yard not only offers Europe simpler logistics and lower prices, but fewer transport-related emissions. It also promises Europe security of supply – an issue given greater urgency by the coronavirus pandemic’s disruption of global trade.

Even before the pandemic, alarm was mounting about sourcing lithium. Dr Thea Riofrancos, a political economist at Providence College in Rhode Island, pointed to growing trade protectionism and the recent US-China trade spat. (And that was before the trade row between China and Australia.) Whatever worries EU policymakers might have had before the pandemic, she said, “now they must be a million times higher”.

The urgency in getting a lithium supply has unleashed a mining boom, and the race for “white oil” threatens to cause damage to the natural environment wherever it is found. But because they are helping to drive down emissions, the mining companies have EU environmental policy on their side.

“There’s a fundamental question behind all this about the model of consumption and production that we now have, which is simply not sustainable,” said Riofrancos. “Everyone having an electric vehicle means an enormous amount of mining, refining and all the polluting activities that come with it.”
» Read article            

» More about clean transportation

HEALTH RISKS OF INDOOR NATURAL GAS

gas alarm
Why experts are sounding the alarm about the hidden dangers of gas stoves
By Jonathan Mingle, Quartz
December 4, 2020

Since the publication of two new reports on the subject from the nonprofit research group the Rocky Mountain Institute (RMI) and the UCLA Fielding School of Public Health, this past spring, the existence of these gas-fired health hazards has garnered increasing media scrutiny. But less discussed has been how the Covid-19 pandemic has compounded the risks of this pollution, especially for low-income and vulnerable populations, and how key regulatory agencies have lagged decades behind the science in acting to protect them.

Despite such calls—and despite compelling evidence that gas appliances can produce levels of air pollution inside homes that would be illegal outdoors in the US—indoor air quality remains entirely unregulated in the US today, and gas appliances largely maintain their industry-manufactured reputation as “clean.” The Environmental Protection Agency only monitors pollutants in outdoor air. And while building codes typically require natural gas furnaces and water heaters to be vented outside, many states lack requirements that natural gas cooking stoves be vented to the outdoors.

Still, recent signs suggest that some measure of regulatory action reflecting the current understanding of the health risks of gas cooking and heating devices might finally be forthcoming. At the end of September, the California Energy Commission held a day-long workshop on indoor air quality and cooking to inform its triennial update to its building energy efficiency standards. The California Air Resources Board (CARB), which regulates air pollution in the state, presented evidence that gas stoves harm health, and that a statewide transition to electric appliances would result in substantial health benefits. These obscure energy code deliberations have generated an unprecedented number of public comments—testament, advocates say, to mounting concern about greenhouse gas emissions, and to growing awareness of the health impacts of residential fossil fuel use.

Last month, the 16 members of CARB unanimously adopted a resolution in support of updating building codes to improve ventilation standards and move toward electrification of appliances—making California the first state to issue official guidance addressing the health impacts of gas stoves and other appliances.
» Read article           
» Read the RMI report
» Read the UCLA report

» More about the health risks of using natural gas indoors

ENVIRONMENTAL PROTECTION AGENCY

eat soot
Trump Administration Declines to Tighten Soot Rules, Despite Link to Covid Deaths
Health experts say the E.P.A. decision defies scientific research showing that particulate pollution contributes to tens of thousands of premature deaths annually.
By Coral Davenport, New York Times
December 7, 2020

The Trump administration on Monday declined to tighten controls on industrial soot emissions, disregarding an emerging scientific link between dirty air and Covid-19 death rates.

In one of the final policy moves of an administration that has spent the past four years weakening or rolling back more than 100 environmental regulations, the Environmental Protection Agency completed a regulation that keeps in place, rather than tightening, rules on tiny, lung-damaging industrial particles, known as PM 2.5, even though the agency’s own scientists have warned of the links between the pollutants and respiratory illness.

E.P.A. administrator Andrew Wheeler is expected to announce the rule Monday afternoon, according to a person familiar with the matter.

Public health experts say that the rule defies scientific research, including the work of the E.P.A.’s own public health experts, which indicates that PM 2.5 pollution contributes to tens of thousands of premature deaths annually, and that even a slight tightening of controls on fine soot could save thousands of American lives.
» Read article            

» More about EPA

FOSSIL FUEL INDUSTRY

ninth circuit
Downstream Emissions
A new court ruling could doom the Trump Administration’s ANWR plan.
By Dan Farber, Legal Planet
December 8, 2020

A Ninth Circuit ruling yesterday overturned approval of offshore drilling in the Arctic. The ruling may directly impact the Trump Administration’s plans for oil leasing in the Arctic National Wildlife Refuge (ANWR). By requiring agencies to consider emissions when fossil fuels are ultimately burned, the Court of Appeal’s decision may also change the way that agencies consider other fossil fuel projects such as gas pipelines.

In Center for Biological Diversity v. Bernhardt, environmental groups challenged the Interior Department’s approval of an  offshore drilling and production facility on the north coast of Alaska.  In its environmental impact statement, the agency refused to consider the effects of the project on carbon emissions outside the United States.

On its face, as the court was quick to point out, the agency’s position makes no sense. It’s like assuming that if you pour water in one end of the bathtub it won’t rise on the other end. There’s a world market for oil, so increased supply anywhere means that prices go down and world demand goes up.   The Interior Department also said that the effect on emissions was too uncertain to quantify, but the court pointed out that Interior had failed to provide support to back up this assertion.

The greenhouse gases from burning fossil fuels are called “downstream” emissions in terms of the production, processing, and transportation of those fuels.  The Republican majority on the Federal Energy Regulatory Commission has taken a position similar to Interior’s.  Despite prodding from the D.C. Circuit and strong dissent from one commissioner , FERC has refused to take downstream emissions into account when approving gas pipelines and LNG export facilities.  That refusal was always questionable and has become even less tenable given this additional precedent. [emphasis added]

In its environmental impact statement for oil leasing in ANWR, the agency seems to have followed the same course as it did for offshore drilling — the same path that the Ninth Circuit found unacceptable.

The Ninth Circuit’s ruling today seems to invalidate this part of the ANWR EIS. Unless reversed by the Supreme Court, this ruling will be a serious obstacle to the Trump Administration’s hurried effort to begin leasing before the end of Trump’s term.  (Another part of the Ninth Circuit’s ruling, involving the Endangered Species Act, may also be a barrier.) More broadly, yesterday’s ruling should reinforce the trend in other courts requiring agencies to consider downstream emissions from coal, oil, and gas projects. That’s a win for rational decision making, as well as a win for the environment.
» Read article            

polar bear greetingCourt Rejects Trump’s Arctic Drilling Proposal in ‘Huge Victory for Polar Bears and Our Climate’
By Jessica Corbett, Common Dreams, in EcoWatch
December 8, 2020

Climate action advocates and wildlife defenders celebrated Monday after the U.S. Court of Appeals for the 9th Circuit rejected the Trump administration’s approval of Liberty, a proposed offshore oil-drilling project in federal Arctic waters that opponents warned would endanger local communities, animals, and the environment.

eans legal director at the Center for Biological Diversity, in a statement. “This project was a disaster waiting to happen that should never have been approved. I’m thrilled the court saw through the Trump administration’s attempt to push this project through without carefully studying its risks.”

Marcie Keever, legal director at Friends of the Earth, similarly applauded the ruling, saying that “thankfully, the court put the health of our children and our planet over oil company profits.”

Both groups joined with fellow advocacy organizations Defenders of Wildlife, Greenpeace, and Pacific Environment for a lawsuit challenging the Hilcorp Alaska project, which was approved in 2018. The energy company planned to construct an artificial island, wells, and a pipeline along the Alaska coast in the Beaufort Sea.
» Read article            

porkchopAs the Livestock Industry Touts Manure-to-Energy Projects, Environmentalists Cry ‘Greenwashing’
Corporate pork and dairy producers are producing “biogas” to reduce methane emissions. But the actual climate benefits are unclear, and often overstated.
By Georgina Gustin, InsideClimate News
December 7, 2020

When the world’s largest pork producer and a major public utility announced they would team up to turn hog manure from North Carolina swine farms into energy, they billed their new partnership as a win-win for both the companies and the climate.

With a $500 million commitment and a recently minted joint venture called Align RNG, Smithfield Foods and Dominion Energy set out to capture the methane emitted from giant hog manure “lagoons,” convert it into biogas—what the industries dub “renewable natural gas”—and inject that biogas into pipelines to heat homes and buildings.

The partnership, the companies said, would create the biggest manure-to-energy project in North Carolina, a state with the potential to become the largest producer of livestock biogas in the country.  At the same time, the project would help the companies meet their goals of reducing climate-warming emissions, they said.

Similar alliances are emerging around the country as the livestock industry comes under increasingly critical scrutiny for its greenhouse gas emissions, and utilities and power companies attempt to meet climate-related commitments. To name only two recent examples, Duke Energy announced in July that it will collaborate with dairy farmers in the Southeast. In September, Chevron announced a project with California Biogas and the state’s dairy farmers.

But as utilities, oil companies and livestock companies pitch biogas as an emissions-reducing solution, critics say it simply locks in systems that allow two highly polluting industries to continue unchecked and without truly tackling their climate impact. These industrial farms, like oil and gas infrastructure, are disproportionately located in lower income and minority communities, where pollution plagues waterways, air and quality of life.

“It’s absolute greenwashing,” said Sherri White-Williamson,  environmental justice policy director with the North Carolina Conservation Network. “If you think about it, there’s nothing renewable about biogas, because in order to make it, you have to grow the hogs in large quantities in huge facilities.”

She added, “It only continues to ingrain that system.”
» Read article            

Denmark to stop exploration
Denmark to end new oil and gas exploration in North Sea
Decision as part of plan to phase out fossil fuel extraction by 2050 will put pressure on UK
By Jillian Ambrose, The Guardian
December 4, 2020

Denmark has brought an immediate end to new oil and gas exploration in the Danish North Sea as part of a plan to phase out fossil fuel extraction by 2050.

On Thursday night the Danish government voted in favour of the plans to cancel the country’s next North Sea oil and gas licensing round, 80 years after it first began exploring its hydrocarbon reserves.

Denmark’s 55 existing oil and gas platforms, scattered across 20 oil and gas fields, will be allowed to continue extracting fossil fuels but the milestone decision to end the hunt for new reserves in the ageing basin will guarantee an end to Denmark’s fossil fuel production.

“We’re the European Union’s biggest oil producer and this decision will therefore resonate around the world,” Denmark’s climate minister, Dan Jørgensen, said. “We are now putting a final end to the fossil era.”

Helene Hagel from Greenpeace Denmark described the parliamentary vote as “a watershed moment” that will allow the country to “assert itself as a green frontrunner and inspire other countries to end our dependence on climate-wrecking fossil fuels”.

She said: “This is a huge victory for the climate movement and all the people who have pushed for many years to make it happen.”
» Read article            

» More about fossil fuel

LIQUEFIED NATURAL GAS

EU Green Deal threat to US LNGEurope’s Green Deal Is Bad News For U.S. LNG
By Irina Slav, Oil Price
November 14, 2020

U.S. LNG producers have had a tough few months, what with the pandemic and plunging prices because of an oversupplied market. Now, prices have improved substantially as production declines while exports have been rising for three consecutive months. The future, however, contains some storm clouds. French utility Engie recently pulled out of a major long-term deal with NextDecade that would have seen it import millions of tons of U.S. liquefied natural gas. The Wall Street Journal cited earlier media reports naming the French government as the power behind the decision, which was reportedly motivated by concerns about fracking: according to the reports, Paris considered fracking an emission-heavy way of extracting natural gas.

The Engie deal could be a harbinger for U.S. LNG in Europe. Bloomberg recently reported that environmental legislation in Brussels could throw a wrench in the works of U.S. LNG expansion as it pursues its ambitious net-zero agenda.

The Green Deal formulated by the European Commission is based on three main goals: eliminating net greenhouse gas emissions by 2050; decoupling economic growth from resource use; and leaving no person and no place behind. Whether the latter two are achievable is arguable. The first goal, however, is what has been drawing the most attention anyway: net-zero greenhouse emissions.

The EU is very serious about it. Member countries are being encouraged to spend heavily on solar and wind generation capacity development, and even Poland, a country heavily dependent on coal, recently announced plans to boost its renewable energy capacity at the expense of fossil fuel.

In this context, it was only a matter of time before policymakers set their sights on natural gas. Although hailed as a bridge fuel between the fossil fuel era and the future of renewable energy, now natural gas has been attracting not-so-positive attention because of methane leaks. On top of that, there is the issue of hydraulic fracturing, which appears to worry euro-bureaucrats.
» Read article           

» More about LNG

BIOMASS

serving DRAX
Drax Wood Pellets Have Devastating Impact On Baltic Forests, Report Shows
By Caitlin Tilley, DeSmog UK
December 4, 2020

Drax’s “insatiable” demand for wood is harming Baltic forests, campaigners have claimed following the publication of a damning report.

Compiled by NGOs in Estonia and Latvia, the report reveals that together the two countries exported more than three million tonnes of wood pellets last year – equivalent to at least 200 square kilometres of clearcut forest.

The authors argue that the intensification of logging is reinforced by biomass demand from foreign bioenergy companies such as Orsted, RWE and Drax.

Kelsey Perlman, a climate campaigner for forests NGO Fern, said the report exposed “a glaring paradox at the heart of the EU’s environmental policies”.

“This report reveals the intolerable pressure facing some of the most valuable habitats in Estonia and Latvia,” she told DeSmog.

“The EU’s Renewable Energy Directive, which allows Member States to subsidise burning woody biomass under the banner of ‘green energy’, has a clear role in the destruction of forests and wildlife, which are meant to be protected under the EU’s Natura 2000 policy.”

Almuth Ernsting, a campaigner from NGO Biofuelwatch, said the report showed how forests in the Baltic States are being “harmed by Drax’s insatiable demand for wood”.

“Stopping and redirecting subsidies for burning wood in power stations will help protect forests in each of those regions,” he added.
» Read article          
» Read the report

» More about biomass

Enter your email address to subscribe to this blog and receive notifications of new posts by email.


» Learn more about Pipeline projects
» Learn more about other proposed energy infrastructure
» Sign up for the NFGiM Newsletter for events, news and actions you can take
» DONATE to help keep our efforts going!

Weekly News Check-In 4/17/20

WNCI-3

Welcome back.

We kick off with a note acknowledging that the relentless drive to build pipelines hasn’t yielded to a mere pandemic. The Keystone XL is pushing south into Montana with an initial work crew of 100 – many more to come.

Our climate section leads with a remembrance from Drilled News of notorious climate change denier Fred Singer, who passed away at 95. During his long career he spun layers of falsehoods and confusion in service of the planet’s biggest polluters.

Because improving the energy efficiency of buildings is critical to achieving necessary emissions reductions, it’s notable that the Massachusetts Board of Building Regulation and Standards (BBRS) appears skeptical of building design experts – apparently favoring developers who prefer existing methods and performance levels. We offer an excellent CommonWealth Magazine article to explain the headwinds faced by the net-zero building code campaign.

The pandemic highlights a multitude of fractures in American society. Clean energy development may offer a rare opportunity to lift people up from under-served and vulnerable communities. The economic potential is huge for post-pandemic recovery. We found a hopeful vision of how benefits might be broadly shared.

Now that the Trump administration has gutted vehicle emissions requirements, clean transportation may still be saved by California’s Zero Emission Vehicle (ZEV) standards, combined with the likelihood that a future administration will put transportation sector decarbonization back on track.

The Environmental Protection Agency has been busy under Administrator Andrew Wheeler – continuing its planetary assault while a raging pandemic diverts public attention. In a particularly elegant bit of regulatory jujitsu, the agency rewrote a mercury pollution rule by leaving current standards in place but changing “how their benefits are calculated so that the economic cost takes precedence over public health gains.” This subtle language has significant implications for many classes of pollutants and their future environmental impact.

Our fossil fuel industry section is particularly interesting. We found the usual press coverage of its precarious financial condition – already on the edge of insolvency even before the Saudi-Russian price war and sudden economic shutdown. Now there are emerging calls for a federal government takeover. And why not? The whole industry is in crisis, and a bargain at current share prices. If it were under federal control, a climate-minded administration could manage the phase-out and transition to a carbon-free future. It’s arguably a good investment, considering the massive costs associated with alternative, business-as-usual or go-slow climate scenarios.

We close on a  related topic. The pandemic and global economic crash have dealt a serious blow to expansion plans for the liquefied natural gas market. Australia is feeling that now, with LNG exports facing an uncertain future down under.

— The NFGiM Team

PIPELINES

Keystone corona style
Construction Begins on Keystone XL Pipeline in Montana
By Jordan Davidson, EcoWatch
April 07, 2020

Despite the ongoing coronavirus pandemic, which has restricted the ability to gather in peaceful assembly, a Canadian company has moved forward with construction of the controversial Keystone XL pipeline, according to the AP.

As EcoWatch reported, last week Canada-based TC Energy said it would start construction despite the climate impacts of the pipeline and the concerns about transporting construction crews during the coronavirus outbreak.

The construction that began yesterday involved around 100 workers in a remote border crossing between Montana and Canada, which is home to cattle ranches and wheat fields, according to a spokesperson from TC Energy, as the AP reported. The number of people involved in the construction is supposed to grow into the thousands as construction advances.
» Read article     

» More about pipelines    

CLIMATE

ding dong FSFred Singer Has Passed. He Took Pleasure In Bullying Scientists. May He Rest.
­Why speak well of the late climate denier Fred Singer, who spent over half a century attacking credible science and scientists?
By Paul Thacker, Drilled News
April 16, 2020

A chief talent of Fred Singer, the world-famous climate denier who died on April 6 at 95, was bullying scientists whose work he could never match, and whose findings threatened the bottom lines of his corporate polluter clients.

Singer was a physicist, whose most notable scientific work involved contributions to planetary science, as well as early satellite and rocket technologies. But beginning in the 1950s, and for a half-century thereafter, Singer offered up to the media his takes on the shortcomings of other sciences and scientists, especially those studying the impacts of toxic chemicals, air pollution, and smoking on the environment or public health. Singer’s opinion pieces appeared in newspapers all across the country, and he relished providing that perfect contrarian quote to a reporter on deadline who needed to “balance” a story about environmental regulations.

Singer seemed to take special pleasure in discrediting scientists who investigated the ways that human activity threatens public health and the safety of our planet, the sort of research that informs regulations to solve problems ranging from acid rain’s toll on forests to DDT’s impacts on wildlife, as well as — of course — the effects of climate change on us all.
» Read article     

cooperate and commit
Strengthen worldwide climate commitments to improve economy, study finds
Global economy could lose out by $600tn by end of century on current emissions targets
By Fiona Harvey, The Guardian
April 14, 2020

Every country in the world would be economically better off if all could agree to strengthen their commitments on the climate crisis through international cooperation, new research has found.

But if countries go no further than their current CO2 pledges – which are too weak to meet the goals of the Paris agreement, and would lead to dangerous levels of global heating – then they face steep economic losses.

The global economy would lose out by as much as $600tn (£476tn) by the end of the century, on current emissions targets, compared with its likely growth if countries meet the Paris goals, according to a paper published in the journal Nature Communications.
» Read article     
» Download the study       

credibility gap
To advise on green stimulus, the IEA needs to upgrade its own climate toolbox
By Kelly Trout, Oil Change International / Blog Post
April 9, 2020

Oil Change International (OCI) has tracked how the IEA has historically hindered the bold climate ambition we need by normalizing and promoting fossil fuel-friendly scenarios and investments. In this post, we delve deeper into key shortcomings the IEA needs to correct in its own modelling toolbox in order to credibly advise governments on crafting ambitious, climate-proof economic recovery plans.
» Read article     

» More about climate    

ENERGY EFFICIENCY

BBRS and Net Zero
Cracking the climate code
Battle raging over building energy standards
By Andy Metzger, CommonWealth Magazine
December 8, 2019

AN ARCANE STATE BOARD, known to few outside the world of design and construction, is the setting of a furious clash the outcome of which could influence the amount of climate-curdling emissions that pour out of chimneys, as well as the future supply of housing in Massachusetts, where affordable homes are already scarce.

The Board of Building Regulation and Standards might seem an odd venue for the drama that has unfolded there. The BBRS adopts and administers the statewide building code and the building energy code, sets of rules that are important but would bore the average reader to tears. It is the domain of professionals who think in cubic feet, seismic loads, and kilowatt hours. Now, the problems of the world are before it.
» Read article     

» More about energy efficiency      

CLEAN ENERGY

get it right
Advocates call for methodical approach to make sure offshore wind benefits all
Low-income populations and people of color were largely left out of Massachusetts’ biotechnology and cannabis booms.
By Sarah Shemkus, Energy News Network
Photo by Wind Denmark / Flickr / Creative Commons
April 13, 2020

With offshore wind expected to add as much as $100 billion to the economy along the East Coast over the next 30 years, activists and business leaders in Massachusetts are urging the state to take steps ensuring that low-income populations and people of color are able to share in the benefits of the burgeoning industry.

“There will be a lot of economic opportunity and jobs,” said Elizabeth Henry, executive director of the Environmental League of Massachusetts. “Think about what even just a fraction of that could do for communities that have been persistently left behind — it’s really exciting.”
» Read article     

» More about clean energy        

CLEAN TRANSPORTATION

impact on EVs
Trump’s new fuel-efficiency rule: The devil is in the details for electric cars
By Bradley Berman, Electrek
April 10, 2020

It’s well known that on March 31, the Trump administration gutted fuel-economy and greenhouse gas rules for model years 2021 to 2026. But what does it mean specifically for electric vehicles? Environmental law firm Beveridge & Diamond broke down the new rule, shedding light on provisions for EVs.

Beveridge & Diamond warns that automakers who immediately start disregarding California ZEV standards “do so at their own risk.” The lawsuits are only beginning, and if the administration changes next year, it will likely invalidate the rules.
» Read article     

» More about clean transportation    

EPA

change in calculations
Trump’s EPA Weakens Justification for Life-Saving Mercury Pollution Rule
By Olivia Rosane, EcoWatch
April 17, 2020

As many Americans fight for their lives in the midst of a respiratory pandemic, the Trump administration Thursday axed the justification for a mercury pollution rule that saves more than 10,000 lives and prevents as many as 130,000 asthma attacks each year.

The new rollback leaves mercury emission standards in place for now, but changes how their benefits are calculated so that the economic cost takes precedence over public health gains, The New York Times reported. The move provides a legal opening to challenge other pollution controls even as evidence suggests that exposure to air pollution might increase one’s chances of dying from the new coronavirus.

“This is an absolute abomination,” former Environmental Protection Agency (EPA) head under Obama and Natural Resources Defense Council (NRDC) president Gina McCarthy said in a statement. “This final rule will increase the risk of more kids with asthma and brain damage, and more people with cancer. Undermining these vital safeguards now also directly threatens the people hardest hit by the COVID-19 pandemic, making it even harder to breathe and putting people with respiratory illnesses at even higher risk.”
» Read article    

quicksilver play by EPA
E.P.A. Weakens Controls on Mercury
The agency is changing the way it calculates the benefits of mercury controls, a move that would effectively loosen the rules on other toxic pollutants.
By Lisa Friedman and Coral Davenport, New York Times
April 16, 2020

WASHINGTON — The Trump administration on Thursday weakened regulations on the release of mercury and other toxic metals from oil and coal-fired power plants, another step toward rolling back health protections in the middle of a pandemic.

The new Environmental Protection Agency rule does not eliminate restrictions on the release of mercury, a heavy metal linked to brain damage. Instead, it creates a new method of calculating the costs and benefits of curbing mercury pollution that environmental lawyers said would fundamentally undermine the legal underpinnings of controls on mercury and many other pollutants.

By reducing the positive health effects of regulations on paper and raising their economic costs, the new method could be used to justify loosening restrictions on any pollutant that the fossil fuel industry has deemed too costly to control.

“That is the big unstated goal,” said David Konisky, a professor of public and environmental affairs at Indiana University. “This is less about mercury than about potentially constraining or handcuffing future efforts by the E.P.A. to regulate air pollution.”
» Read article     

science schmience
Ignoring Scientists’ Advice, Trump’s EPA Rejects Stricter Air Quality Standard
The decision flies in the face of large-scale studies that indicated tightening the standard would save tens of thousands of lives.
By Marianne Lavelle, InsideClimate News
April 15, 2020

Sweeping aside a broad body of evidence that air pollution is killing as many as 52,100 Americans prematurely each year, the Trump administration on Tuesday rejected government scientists’ recommendation that it strengthen the national air quality standard for fine soot.

The proposal to maintain the current standard for PM 2.5—microscopic particles known as fine particulate matter—in the face of alarming new science documenting its potentially deadly health effects, is a win for the fossil fuel industry. It comes amid a frenzy of major decision-making at the Environmental Protection Agency that critics say is designed to secure the Trump administration’s pro-industry legacy in the face of an uncertain future.

The Trump EPA has raced to loosen or reject a slew of clean air protections, even as the nation has been brought to a virtual standstill by a highly contagious virus that can produce serious or even fatal respiratory symptoms. In the last month, the Trump EPA has weakened fuel economy standards, advanced a proposal to discount the findings of scientific studies on health in rulemaking and announced a blanket suspension of the enforcement of environmental laws.

The decision to maintain the status quo on PM 2.5 was especially striking in the context of the pandemic, and came just days after Harvard researchers released preliminary results of a study showing that U.S. counties with high PM 2.5 levels have higher coronavirus death rates.
» Read article     

fine particles - EPA
Trump administration declines to stiffen US clean air standards
EPA chief Wheeler says current soot regulations are adequate despite research that shows stricter rules could save thousands of lives
By Emily Holden, The Guardian
April 14, 2020

The Trump administration has said it will not tighten rules for soot pollution, despite research showing that doing so could save thousands of lives each year.

The fine particles, which come from the burning of coal, oil and wood, penetrate the respiratory system and are linked with heart and lung diseases, higher rates of asthma, bronchitis and cancer.

Under the current standard, which was set in 2012, polluters can emit enough soot to measure 12 micrograms per cubic meter. Strengthening the standards to 11 micrograms could save about 12,000 lives per year, according to one Harvard study of US seniors.

Other research, noted in the government’s own analysis, found that maintaining the soot standard at its current level could allow as many as 52,000 deaths a year in just 47 urban areas.
 » Read article     

evidence
‘Unbelievable’ Timing: As Coronavirus Rages, Trump Disregards Advice to Tighten Clean Air Rules
By Coral Davenport, New York Times
April 14, 2020

WASHINGTON — Disregarding an emerging scientific link between dirty air and Covid-19 death rates, the Trump administration declined on Tuesday to tighten a regulation on industrial soot emissions that came up for review ahead of the coronavirus pandemic.

Andrew R. Wheeler, the head of the Environmental Protection Agency, said his agency will not impose stricter controls on the tiny, lung-damaging industrial particles, known as PM 2.5, a regulatory action that has been in the works for months. The scientific evidence, he said, was insufficient to merit tightening the current emissions standard.
» Read article     

» More about the EPA        

FOSSIL FUEL INDUSTRY

CARES Act oil bailout
Fed’s Corporate Debt-Buying Could Mean Billion-Dollar Big Oil Bailout
By Jessica Corbett, Common Dreams in EcoWatch
April 16, 2020

As calls for a People’s Bailout in response to the coronavirus pandemic continue to grow across the United States, a new analysis warns that the country’s Big Oil companies “stand to reap yet another billion dollar bailout” thanks to the Federal Reserve’s plans to buy up to $750 billion in corporate debt.

The analysis (pdf), released Wednesday by the advocacy group Friends of the Earth (FOE), explains that this expected bailout for polluters relates to a controversial $500 billion corporate slush fund included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that Congress passed in March.
» Read article     
» Read FOE analysis         

the case for public ownership
Discussion Paper: The Case for Public Ownership of the Fossil Fuel Industry
By Collin Rees, Oil Change International
April 14, 2020

The U.S. fossil fuel industry continues to seek bailouts during the COVID-19 crisis, as global oil demand craters and crude oil floods an already oversupplied market.

During this crisis, the U.S. government should assert long-term ownership and control over fossil fuel companies to safeguard long-term economic security for workers, avoid taxpayer-funded windfalls for fossil fuel executives, restore communities exploited by fossil fuel corporations, save taxpayer dollars, and ensure an eventual managed phase-out of coal, oil, and gas production.

Bailing out the oil, gas, and coal industries with no strings attached would return our economy to a precarious status quo in which the fossil fuel industry’s volatile and environmentally destructive business model worsens our economic and environmental crises. It would allow a handful of executives and wealthy shareholders to continue to extract the vast majority of profits, while taxpayers, workers, and exploited communities shoulder the burden of corporate and social risks and externalities.
» Read overview    
» Download discussion paper
» Read related press release        

late 80s bad
Big Banks Pull Financing, Prepare To Seize Assets From Collapsing Oil and Gas Industry
By Justin Mikulka, DeSmog Blog
April 13, 2020

While banks seizing assets from borrowers who can’t repay loans is common for industries like real estate — especially residential real estate — it is an unusual move for the oil and gas industry. Reuters reported that the last time it happened was during the oil price crash of the late 1980s. In the most recent oil price crash, when oil dropped from prices over $100 a barrel to $40 a barrel, there was a rash of bankruptcies, but the banks did not seize assets.

One difference now is that shale oil companies have continued to increase debt — thanks to loans from the banks — to the point where most of these companies are not viable with low oil prices. As one industry observer recently noted in the New York Times, “This is late ’80s bad.”

One new angle that didn’t exist in the 1980s is a dramatic change in sentiment from parts of the investment community about the viability of the oil industry as an investment. Television investment advisor Jim Cramer of CNBC was saying oil stocks were in the “death knell phase” in January, before oil prices crashed to the current lows and the coronavirus had crushed global oil demand.

More recently, in a remarkable opinion piece for Seeking Alpha, Kirk Spano advised investors to get out of the industry now with a unique twist on why this was urgent.

“We are about to see a massive wave of shale oil bankruptcies by thieving executives who have borrowed against assets and paid themselves bonuses for years without regard to shareholder value.”

While DeSmog has commented on issues of potential industry fraud and executives paying themselves while the companies they ran lost money, it is a decided shift in sentiment when sites like SeekingAlpha are calling for investors to get out and then “sue the dirt out of the executives who have almost all broken fiduciary duties.”

Which is why banks are now considering seizing the assets of the failed oil  companies — it is a bad option for the banks but it is the best one left.
» Read article     

cuts are complicated
Oil Nations, Prodded by Trump, Reach Deal to Slash Production
The deal will reduce output by 9.7 million barrels a day. While significant, the cut falls far short of what is needed to bring oil production in line with demand.
By Clifford Krauss, New York Times
April 12, 2020

HOUSTON — Oil-producing nations on Sunday agreed to the largest production cut ever negotiated, in an unprecedented coordinated effort by Russia, Saudi Arabia and the United States to stabilize oil prices and, indirectly, global financial markets.

Saudi Arabia and Russia typically take the lead in setting global production goals. But President Trump, facing a re-election campaign, a plunging economy and American oil companies struggling with collapsing prices, took the unusual step of getting involved after the two countries entered a price war a month ago. Mr. Trump had made an agreement a key priority.

It was unclear, however, whether the cuts would be enough to bolster prices. Before the coronavirus crisis, 100 million barrels of oil each day fueled global commerce, but demand is down about 35 percent. While significant, the cuts agreed to on Sunday still fall far short of what is needed to bring oil production in line with demand.
» Read article     

wink and nod
Coronavirus May Kill Our Fracking Fever Dream
America’s energy independence was an illusion created by cheap debt. All that’s left to tally is the damage.
By Bethany McLean, New York Times Opinion
April 10, 2020

Ever since the oil shocks of the 1970s, the idea of energy independence, which in its grandest incarnation meant freedom from the world’s oil-rich trouble spots, has been a dream for Democrats and Republicans alike. It once seemed utterly unattainable — until the advent of fracking, which unleashed a torrent of oil.

In reality, the dream was always an illusion, and its collapse was already underway. That’s because oil fracking has never been financially viable. America’s energy independence was built on an industry that is the very definition of dependent — dependent on investors to keeping pouring billions upon billions in capital into money-losing companies to fund their drilling. Investors were willing to do this only as long as oil prices, which are not under America’s control, were high — and when they believed that one day, profits would materialize.

Even before the coronavirus crisis, the spigot was drying up. Now, it has been shut off.
» Read article     
Ms. McLean is the author of “Saudi America: The Truth About Fracking and How It’s Changing the World.”

climate deception
Baltimore, Rhode Island Argue They’re Suing Fossil Fuel Companies Over Climate Deception
By Dana Drugmand, DeSmog Blog
April 10, 2020

At a time when fossil fuel companies are using a public health crisis to demand financial and regulatory support, the governments of Baltimore and Rhode Island are calling out a “decades-long campaign of deception” by these companies in urging courts to advance lawsuits trying to hold polluters responsible for climate damages.

Over a dozen of these climate liability lawsuits are currently pending, brought by cities, counties, one state, and one trade association seeking payments to help cover climate change-related costs. The lawsuits target major fossil fuel companies like ExxonMobil, Chevron, and BP, alleging they deliberately deceived the public and policymakers on the dangers of fossil fuels.
» Read article     

» More about fossil fuels        

LNG

LNG hits pause down under
Australia’s booming LNG industry stalls after fall in oil prices amid coronavirus
More than $80bn of investment decisions are delayed due to a collapsed oil price and a geopolitical price war
By Adam Morton, The Guardian
April 12, 2020

The extraordinary growth in Australia’s liquefied natural gas (LNG) industry, the main cause of recent rises in national greenhouse gas emissions, has stalled indefinitely, with decisions on more than $80bn of investments delayed due to a collapsed oil price sunk by coronavirus and a geopolitical price war.

The price of Brent crude oil is less than half what it was in early January, having fallen again on Friday despite the Opec oil cartel and its allies reaching a supply deal to stop Saudi Arabia and Russia flooding the world with more oil than it can use. The Asian spot price for LNG, which is linked to the oil benchmark, is down about two-thirds in six months.

The unprecedented crash had already prompted oil and gas giants to defer investment decisions on projects including Woodside’s massive Burrup Hub expansion off the Western Australian coast and Santos’ $7bn Barossa project 300km north of Darwin. A decision on the first parts of the Burrup Hub expansion, including a $17bn development of the Scarborough gas field, has been pushed to 2021.
» Read article     

» More about LNG         

Enter your email address to subscribe to this blog and receive notifications of new posts by email.


» Learn more about Pipeline projects
» Learn more about other proposed energy infrastructure
» Sign up for the NFGiM Newsletter for events, news and actions you can take
» DONATE to help keep our efforts going!