Energy

Solar sets sights on federal aid


With help from Eric Wolff, Gavin Bade, Annie Snider and Alex Guillén

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Quick Fix

The solar industry is seeking federal aid in the next coronavirus relief package as its outlook for 2020 dims.

The Trump administration announced its final vehicle fuel economy standards Tuesday and another automaker said it intends to join California’s stricter emissions standards.

Congressional Democrats pressed the Interior Department to shutter all national parks amid the ongoing coronavirus pandemic.

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Driving the Day

SOLAR OUTLOOK DIMS, SETS SIGHTS ON PHASE 4: The solar industry is pushing for accommodations in any new packages lawmakers may develop to stem the economic catastrophe sparked by the outbreak of Covid-19, Pro’s Eric Wolff reports this morning. The industry has seen a wave of cancellations in residential rooftop projects and disruptions in supply chains from Asia, as well as a potential glut of red ink in the financial markets.

“If we don’t do something … we’re headed for a depression, pure and simple. Right now we’re in it,” said John Berger, CEO of the Texas-based Sunnova Energy, a residential solar installer. “I’m looking at more about families, how do we protect workers, how do we stop what really will be a second Great Depression.”

Many in the solar industry cited a pair of measures focused on their needs: extending deadlines under the Investment Tax Credit and turning it — at least temporarily — into a grant program that pays solar companies directly. Both measures face hurdles in Congress, which has resisted extending the ITC in recent months, and with a president who complained that Democrats were loading up the last bill with “Green New Deal” measures.

Battle lines are already being drawn on the next coronavirus package, POLITICO’s Burgess Everett reports. Senate Majority Leader Mitch McConnell on Tuesday dismissed Democrats’ hopes to add “unrelated policy items,” while House Speaker Nancy Pelosi again ticked off water and surface transportation infrastructure as potential inclusions in the next package. President Donald Trump also threw cold water on the idea of passing clean energy and climate provisions in the upcoming stimulus package, saying during his briefing Tuesday, “we’re not going to do the Green New Deal” and spend money on “things that people just have fun with.”

Automobiles

ADDING UP EPA’S MATH: The Trump administration on Tuesday officially unveiled its rollback of stringent fuel efficiency targets for the nation’s fleet of cars and small trucks, Pro’s Alex Guillén and Zack Colman report. The Safer Affordable Fuel-Efficient Vehicles rule will cause drivers to spend more on gasoline than they would save on cheaper cars, according to the administration’s analysis, but automakers will save billions of dollars compared to what they would have spent to comply with the tougher Obama-era requirements.

More lives will be lost to air pollution-related health problems, although the administration says those deaths are outweighed by fewer traffic fatalities as people switch to newer, safer cars and trucks. And almost a billion more tons of planet-warming carbon dioxide will go into the atmosphere, while oil consumption rises by nearly 2 billion barrels over the vehicles’ lifetimes.

Following the rule announcement, California officials announced Volvo intends to join four other automakers — Ford, Honda, Volkswagen and BMW North America — that have agreed to maintain stricter-than-federal vehicle emissions rules.

DÉJÀ VU: Trump took to Twitter Tuesday to promote the rule, writing: “My proposal to the politically correct Automobile Companies would lower the average price of a car to consumers by more than $3500, while at the same time making the cars substantially safer. Engines would run smoother. Positive impact on the environment! Foolish executives!” If that sounds familiar, it’s because Trump tweeted almost exactly the same thing on Aug. 21 — at that time citing just $3,000 in savings.

The $2,100 Question: EPA and the National Highway Traffic Safety Administration said the rule would reduce upfront costs by $1,000 and total ownership costs by $1,400. The White House on Tuesday did not answer queries about the president’s source for the $2,100 discrepancy.

Oil and Gas

TRUMP NUDGES SAUDIs, RUSSIA ON OIL AGAIN: Trump said during his daily coronavirus briefing Tuesday that he spoke with Russian President Vladimir Putin and Saudi Arabia Crown Prince Mohammed bin Salman about their continuing oil production standoff that’s cratering global prices. Trump warned of impacts to U.S. drillers, saying “you could lose an industry” over the conflict, but kept his role confined to nudging the two leaders toward an agreement. “The two countries are discussing it and I’m joining at the appropriate time if need be,” he said.

TC ENERGY TO PROCEED WITH KEYSTONE XL: Canada’s TC Energy formally committed to building the Keystone XL pipeline on Tuesday, despite ongoing legal disputes that have stalled the $8 billion project for more than a decade, Pro’s Ben Lefebvre reports. The Alberta government agreed to invest $1.1 billion in the pipeline, enough to cover planned construction costs through the end of 2020, and provide $4.2 billion in credit needed for the project, TC Energy said.

Not so fast: The pipeline still faces several legal challenges before it can proceed. A federal judge in Montana in December ruled that a lawsuit that Native American tribes brought against Trump’s unilateral approval of the pipeline crossing over the U.S.-Canadian border could proceed.

LET’S GET REGIONAL: The American Petroleum Institute announced Tuesday it would consolidate its state-level advocacy work into regional offices in eight states and close offices in 15 state capitals. The new regional teams will be based in Denver; Springfield, Ill; St. Paul, Minn.; Columbus, Ohio; Harrisburg, Pa.; Boston; Raleigh, N.C.; and Tallahassee, Fla., and are on track to be fully operational by late fall. “The regional approach will extend API’s advocacy capabilities in a changing landscape using data targeting, campaign communications, and coalition building, and build on our partnerships with state oil and natural gas associations in key production states,” API President and CEO Mike Sommers said in an email to staff that was shared with ME. The news was first reported by the Washington Examiner.

Around the Agencies

FAILING TO WARN: EPA is not consistently warning people of the risks they face living near medical sterilization facilities and chemical plants that emit dangerous levels of a carcinogenic gas, the agency’s inspector general said Tuesday. IG Sean O’Donnell issued the urgent Management Alert before concluding his office’s audit of its air toxics program “because of the disparity in the extent and nature of communication between the EPA and impacted communities where the EPA has identified significant health risks to the public from ethylene oxide emissions,” he said in a letter to Associate Deputy Administrator Doug Benevento, as Pro’s Annie Snider reports.

Dispute brewing: The IG found that EPA and state officials have failed to hold public meetings or conduct other outreach at 16 of the 25 high-priority sites, most of which are chemicals plants in Texas and Louisiana, and recommended that EPA provide outreach at all sites. In a response letter to the IG, Benevento said the agency will “work with affected state and local air agencies to look more closely at emissions from facilities.” But he also emphasized “the importance of conducting additional, more refined investigation of risks based on NATA results prior to conducting significant direct outreach with the public” — a delay that the IG disagreed with.

Wheeler v. IG, yet again: EPA Administrator Andrew Wheeler took issue with the report’s conclusion that EPA leadership was at odds with the IG’s recommendations, and called for the report to be rescinded. “The tone and substance of this report indicates a disconnect in the US EPA IG’s office,” he said in a statement late Tuesday, saying that the IG had given no indication there would be any unresolved issues.

MEET THE NEW DANLY: James Danly, most recently FERC’s general counsel, was sworn in today as a new commissioner, ensuring FERC will preserve its quorum when Commissioner Bernard McNamee leaves this year. FERC also appointed David Morenoff, the deputy general counsel, to be acting general counsel now that Danly has taken the new post. Morenoff has been acting general counsel at least twice before.

DEMOCRATS PUSH FOR PARK CLOSURES: Congressional Democrats, including House Natural Resources Chairman Raúl Grijalva and Senate ENR ranking member Joe Manchin, called on the Interior Department to close national park and public lands, like the Grand Canyon National Park, in order to stop the spread of the coronavirus, Pro’s Anthony Adragna reports. At least seven National Park Service employees have tested positive for coronavirus, the Washington Post reported Tuesday. The figure does not include workers in the park who are not federal employees.

In a statement to ME, the National Parks Service said no decision had been made about the full closure of the Grand Canyon National Park, but instead pointed to recent operational changes. “Discussions and evaluations of park conditions and operations remain ongoing,” the statement said. The agency also said a formal request to the secretary specific to Grand Canyon National Park had not been made.

By the way: In a memo to staff this week, Bernhardt thanked employees for their dedication amid the Covid-19 crisis but also called on them to “work earnestly” so as to not be “disruptive to our Department’s important mission and increase burdens on colleagues.”

BOEM, BSEE EMPLOYEES TEST POSITIVE FOR COVID-19: Three Bureau of Safety and Environmental Enforcement staffers and one Bureau of Ocean Energy Management staffer tested positive for coronavirus, agency spokespeople confirmed to ME. Two of the BSEE employees worked within the New Orleans District Office and the other reported to the Gulf of Mexico region. The sole BOEM staffer worked in the New Orleans office.

FERC EXTENDS PJM COMPLIANCE COMMENT DEADLINE: FERC yesterday extended the deadline for comments on grid operator PJM’s capacity market compliance filing from April 22 to May 15. The compliance filing is PJM’s plan to enact FERC’s December decision to limit the participation of subsidized clean energy in its capacity market, and it earned high initial marks from renewable energy providers, though some states questioned its accelerated timeline. Democrat Commissioner Richard Glick said in a separate statement that he would have preferred to extend the deadline to June 1, as Ohio regulators requested, but FERC’s notice, issued at the directive of Chairman Neil Chatterjee, did not provide an explanation for the new deadline.

The Grid

— “Trump considering crude oil import limits for US refiners: sources,” via S&P Global Platts.

— “Ex wildlife chief: Trump rule could kill billions of birds,” via The Associated Press.

— “2 [DOE] agency employees test positive for coronavirus,” via E&E News.

— “Wind, solar farms are seen as havens in coronavirus storm,” via The Wall Street Journal.

THAT’S ALL FOR ME!





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