Energy

Time's running out for pipeline sanctions


With help from Anthony Adragna and Ben Lefebvre

Editor’s Note: This edition of Morning Energy is published weekdays at 10 a.m. POLITICO Pro Energy subscribers hold exclusive early access to the newsletter each morning at 6 a.m. Learn more about POLITICO Pro’s comprehensive policy intelligence coverage, policy tools and services at politicopro.com.

The window for Congress to try to block Russia’s Nord Stream 2 pipeline is closing fast after Denmark on Wednesday green-lit the project in its waters.

The House will complete consideration of another public lands measure today, after passing two others Wednesday evening.

The president’s decision to send troops to protect oil fields in Syria is undercutting his repeated pledge to end a “forever war” in the region.

WELCOME TO THURSDAY! I’m your host, Kelsey Tamborrino, back in the saddle just in time for the Nationals to win the World Series! Thanks to Eric and Gavin for pitching some long relief for me while I was out of town. Check out the new POLITICO Energy podcast — all the energy and environmental politics and policy news you need to start your day, in just five minutes. Listen and subscribe for free at politico.com/energy-podcast.

Josh Chetwynd of the Public Interest Network gets the trivia win. Justin Verlander, Max Scherzer and Anibal Sanchez all played together for the Detroit Tigers in the 2012 World Series. For today: What was the longest single game in World Series history? Send your tips, energy gossip and comments to ktamborrino@politico.com.

NORD STREAM AHEAD: The Nord Stream 2 pipeline scored key approval from Denmark on Wednesday that makes completion of the controversial project all but certain — which in turn means the countdown clock is dwindling for lawmakers who have vocally opposed the project.

Lawmakers and analysts acknowledged Wednesday that time is running out for Congress to try to halt construction of the pipeline that would carry Russian natural gas to Germany, Pro’s Ben Lefebvre and Anthony Adragna report. Several bills to impose sanctions on the companies involved in the project have floundered on Capitol Hill in recent months, despite the confidence expressed by Energy Secretary Rick Perry in May that Congress would pass sanctions on the pipeline.

What to watch: A bill from Texas Sen. Ted Cruz, S. 1441 (116), to impose sanctions on companies aiding the pipeline’s construction has stalled in the Senate after advancing through the Foreign Relations Committee in a 20-2 bipartisan vote. A similar bill, H.R. 3206 (116), filed in the House by Rep. Adam Kinzinger (R-Ill.) has been stuck in committee since the end of June.

“We’re obviously running out of time,” Sen. Ron Johnson (R-Wis.), a senior member of the Foreign Relations Committee, told POLITICO. “I’d like to pass Sen. Cruz’s bill, which we passed out of Senate Foreign Relations. Not sure that’s possible. It’d certainly send a pretty strong signal to our allies that are supporting it.” Senate Majority Whip John Thune told POLITICO he was not aware of whether Majority Leader Mitch McConnell plans to bring Cruz’s bill to a vote, but he added, “We have interest in it.”

By the way: A State Department spokesperson told ME in a statement that the energy security of U.S. European partners and allies is a longstanding priority. “Nord Stream 2 jeopardizes that priority,” the spokesperson said. “We appreciate Denmark’s thorough review of this transit permit application and understand that its decision was the result of an apolitical administrative process. Our Danish partners agree that energy diversification is a priority.”

IN FOR LANDING: The House takes up the last of three public lands bills today, following the passage of two bills Wednesday: H.R. 1373 (116), which was a priority for Natural Resources Chairman Raúl Grijalva and would prohibit new uranium mining near the Grand Canyon, and H.R. 2181 (116), to withdraw 316,076 acres surrounding New Mexico’s Chaco Canyon from potential leasing for oil, natural gas, coal and other minerals, Anthony reports.

On tap today: The remaining lands bill, H.R. 823 (116), from Rep. Joe Neguse (D-Colo.), would protect approximately 400,000 acres of land in Colorado and bar oil and natural gas drilling in some areas. The three bills are unlikely to see the light of day in the Senate.

CLIMATE AND CALIFORNIA FIRES: The top Republican and Democrat on the Senate Energy and Natural Resources Committee both said on Wednesday that climate change is one of the factors driving the devastating wildfires in California. “You’ve got a whole series of factors in the air and on the ground — of course climate is one of them,” Chairman Lisa Murkowski told ME. “How we address this is the real challenge here. Part of it is, we can’t control what’s happening with the wind or with the temperature, but maybe we can deal with some of the fuel that is on the ground.” Sen. Joe Manchin, the top Democrat, also called climate change a “big factor” in the fires.

UPTON ON E&C SHUFFLING: Rep. Fred Upton told reporters he was saddened by the retirement of E&C ranking member Greg Walden. “There is not a better friend,” the Michigan Republican said. The two men led a codel to Baghdad after the Iraq War, vacation together and Walden helped Upton following a ski accident last year. He also said Rep. John Shimkus, who’s mulling foregoing his retirement, is “a really good guy and certainly deserving” of a promotion to the top spot if he decides to stay.

MAIL CALL! Senate Environment and Public Works Chairman John Barrasso leads a letter with 11 GOP senators today to World Bank President David Malpass that calls on the institution to “eliminate barriers implemented at the World Bank that restrict financing of traditional energy resources, such as coal, oil and gas.” The senators specifically write that in order for the World Bank to help alleviate poverty, it “must finance projects that increase access to affordable and reliable electricity on a large enough scale to help poor nations gain economic opportunities and reduce poverty.”

SENT TO THE SENATE: Trump sent several nominations to the Senate on Wednesday, including Lanny Erdos‘ to be director of the Office of Surface Mining Reclamation and Enforcement and Robert Feitel to be inspector general of the Nuclear Regulatory Commission.

CAUSE FOR CONCERN? Twitter’s announcement that it will no longer run political ads has opened up debate on what that means for climate change and fossil fuel ads on the platform. The new policy, which applies worldwide to issue ads as well as ads run by political campaigns, will go into effect Nov. 22, with details on the policy expected Nov. 15.

“We considered stopping only candidate ads, but issue ads present a way to circumvent,” Twitter CEO Jack Dorsey tweeted. “Additionally, it isn’t fair for everyone but candidates to buy ads for issues they want to push. So we’re stopping these too.” In the absence of further details, some on Twitter expressed concern over what constitutes an issue ad. “This is definitely something to be worried about,” tweeted As You Sow’s Andrew Montes, “that fossil fuel corporation ads will be allowed because selling your product is ‘not political’, but climate-organizing posts will be banned because climate is ‘political.'”

Vijaya Gadde, lead for legal, policy and trust and safety at Twitter, clarified that ads that “advocate for or against legislative issues of national importance (such as: climate change, healthcare, immigration, national security, taxes)” would fall under the current definition of an issue ad.

FOREVER EVER? The Pentagon’s new mission of protecting oil fields in Syria means the U.S. will likely have as many or more troops in the country as when Donald Trump took office — undermining his repeated pledge to end a “forever war” in the Middle East, reports Pro’s Wesley Morgan. Commanders are moving additional forces and armored vehicles into Syria’s war-torn, oil-rich Deir ez-Zor province, though Pentagon leaders have yet to announce how many troops will stay in the country under the new oil field mission.

But former military leaders say the job will probably require a battalion-sized formation, or several hundred more troops — on top of about 200 that have remained in the southeast of the country, Wesley reports. “I think it needs to be a few hundred guys, 300 or 400 at least,” said Dana Pittard, a retired Army major general who was the senior U.S. commander in Iraq during the first year of the fight against ISIS in 2014-2015. “That’s about what I would be comfortable with, depending on how many sites they’re securing.”

“These oil facilities can be huge,” he added, noting that “you could have companies at multiple sites, and that would put you at around 600 personnel plus.”

TILLERSON SAYS EXXON DID NOT MISLEAD: Ex-Secretary of State and former Exxon Mobil CEO Rex Tillerson told a New York courtroom Wednesday that the oil and gas company did not mislead its investors on climate change, Pro New York’s Danielle Muoio reports. Tillerson appeared before the state Supreme Court in Manhattan as part of a lawsuit that accuses Exxon of deceiving shareholders about the risks associated with climate change.

The crux of the lawsuit is whether Exxon deceived investors by using two separate numbers to evaluate the risk of new climate regulations — publicly stating it used a “proxy” cost of $80 per ton of carbon dioxide in developed countries by 2040, but internally directing employees to use a cost as low as $40 per ton. Tillerson on Wednesday said the two metrics served different purposes. He said all investments considered and incorporated the proxy cost, which was used to assess projects on a “macro level” and had a greater impact. And sometimes the company would use what he dubbed “greenhouse gas costs” for individualized assessments of certain projects.

WHERE IN THE WORLD WILL COP GO? Following Chile’s abrupt announcement that it would no longer host the international climate change conference known as COP25 in December, the Associated Press reports organizers are scrambling again to find a venue. A U.N. official said all U.N. venues are being considered, including New York; Geneva; Vienna; Bonn, Germany; and Nairobi, Kenya. Chile’s withdrawal comes after Brazil already backed out of hosting the summit.

— “White House pressed car makers to join its fight over California emissions rules,” via The New York Times.

— “Keystone pipeline leaks oil in northeastern North Dakota,” via Associated Press.

— “Welcome to ‘cancer alley,’ where toxic air is about to get worse,” via ProPublica, The Times-Picayune and The Advocate.

— “Union says EPA refuses to renegotiate ‘imposed’ contract, despite push from federal regulators,” via The Hill.

— “Texas coal companies are leaving behind contaminated land. The state is letting them,” via Texas Tribune and Grist.

— “Activist Thunberg declines climate prize, urges more action,” via Associated Press.

THAT’S ALL FOR ME!





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