Energy

What's on FERC's fall agenda?


With help from Anthony Adragna, Eric Wolff and Alex Guillén

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With FERC Republicans preparing to take over the majority, sources told POLITICO to expect a renewed push on PJM, PURPA and a piecemeal approach to fuel security.

The president travels to West Virginia today for a fundraiser hosted by Murray Energy’s CEO, as legislative action on the Hill shapes up on retired coal miners.

Sen. Chuck Grassley slammed EPA for what he said was ignoring the Energy Department’s recommendations for economic hardship exemptions from the Renewable Fuel Standard.

WELCOME TO WEDNESDAY! I’m your host, Kelsey Tamborrino. Peter Friedmann of the Agriculture Transportation Coalition gets the trivia win for identifying Wyoming’s Devils Tower as the first national monument established under the Antiquities Act. For today: What was the first state to join the U.S. after the 13 original colonies? Send your tips, energy gossip and comments to ktamborrino@politico.com.

WHAT FERC’S AGENDA LOOKS LIKE WITHOUT LaFLEUR: When Commissioner Cheryl LaFleur leaves FERC at the end of next month, the commission will embark on a series of moves that would benefit coal and nuclear power plants at the expense of wind and solar, while also moving forward with approvals of natural gas pipelines and export facilities, sources with knowledge of the plans tell Pro’s Gavin Bade.

LaFleur’s August exit will leave Republicans in the majority, where Chairman Neil Chatterjee will aim to resolve a longstanding impasse over state energy subsidies in the PJM power market; increase payments for coal, nuclear and oil power plants using so-called fuel security reforms; and weaken provisions under the Public Utilities Regulatory Policy Act that mandate some utilities buy power from small renewable energy facilities, the sources said.

Those plans worry critics, who say some of the reforms could undermine the wholesale power markets that supply electricity to two-thirds of the U.S. population, Gavin reports. And more than one source expressed concern the relative lack of experience among FERC regulators once LaFleur — who served nine years on the commission — departs. “Not having someone there who has seen [the commission] run is scary to me, honestly,” said one former senior FERC official. “If you don’t have someone there with experience with different political parties and administrations, it’s tough to keep the integrity of the institution.”

Gavin breaks down the three main items on FERC’s agenda — new pushes on the PJM capacity market, PURPA reform, and the high-profile issue of fuel security.

TRUMP TRIPS TO COAL COUNTRY: President Donald Trump will deliver remarks today at a private fundraising committee reception in West Virginia hosted by Murray Energy CEO Bob Murray. State lawmakers from West Virginia and Ohio are expected to attend, the Intelligencer Wheeling News-Register reported. A spokesperson for Ohio Gov. Mike DeWine confirmed to ME he will attend.

The president’s trip comes one day after DeWine signed into law a bill to provide financial support to two coal plants and two nuclear plants, as Gavin reports. The Trump campaign pushed some state House Republicans to support the measure.

Meanwhile, more than 100 coal miners and their families from Appalachia lobbied lawmakers and their staff on Capitol Hill this week to call for a 10-year extension of the Black Lung Disability Trust Fund.

Also on tap today: The House Natural Resources Energy and Mineral Resources Subcommittee holds a legislative hearing today on two bills: H.R. 934 (116), from Rep. Bobby Scott (D-Va.), that would ensure coal miners will not lose their retiree health care; and H.R. 935 (116), from Rep. David McKinley (R-W.Va.), that aims to protect pensions for United Mine Workers of America retirees.

SENATORS INTRO FOIA BILL IN RESPONSE TO EPA: A bipartisan group of senators has introduced legislation to counter part of EPA’s new compliance rule for the Freedom of Information Act after the agency bucked their calls to reconsider. Sen. Chuck Grassley‘s (R-Iowa) Open and Responsive Government Act, S. 2220, clarifies that agencies cannot withhold non-responsive portions of records unless they are otherwise covered by the nine established exemptions — a direct response to language in EPA’s rule. The legislation doesn’t address the senators’ other criticisms, including the potential for interference in the FOIA process from political appointees.

In addition, the bill would also essentially override a June Supreme Court ruling regarding FOIA’s Exemption 4, which protects certain confidential information. (More on that ruling at POLITICO.) It would restrict the exemption so that agencies would have to determine that the information’s release “would likely cause substantial harm to the competitive position of the person from whom the information was obtained.” The bill is backed by Grassley and Sens. Patrick Leahy (D-Vt.), John Cornyn (R-Texas) and Dianne Feinstein (D-Calif.) — a group ME hereby dubs the “FOIA Four.”

GRIJALVA DEMANDS BERNHARDT HALT BLM REORG: House Natural Resources Chairman Raúl Grijalva is demanding in a letter Tuesday that Interior Secretary David Bernhardt halt its reorganization of BLM amid what he calls an “unacceptable” lack of consultation with tribal nations. “We continue to receive reports … [the department] has failed to provide meaningful consultation on changes being made at the local, regional and national levels that impact Tribal Nations,” Grijalva wrote, adding agency staff indicated there had been no consultation at a July 18 staff briefing.

That contradicts Interior’s own website, which says an assistant secretary “conducted Tribal consultation and will continue to keep the Tribes informed and involved as reorganization is implemented.”

DEMS SET ‘CLEAN ECONOMY’ GOAL: House Energy and Commerce Democrats unveiled their plan Tuesday to decarbonize the U.S. economy — it hinges on a timeline to introduce legislation by the end of this year while embracing some of the goals of the progressive Green New Deal resolution, Pro’s Anthony Adragna reports.

Chairman Frank Pallone (D-N.J.) said the panel hoped to craft “comprehensive” legislation that would result in a “100 percent clean economy” by 2050. The Democrats vowed to hold hearings over the coming months to gather input from labor unions, environmental groups and businesses as they write legislation.

The Environment and Climate Change Subcommittee holds a hearing today on reducing carbon emissions to reach a zero-carbon economy by mid-century.

ME FIRST — BILL WOULD REAUTHORIZE ARPA-E: House Science ranking member Frank Lucas (R-Okla.) will introduce a bill that would reauthorize DOE’s Advanced Research Projects Agency-Energy for five years, with a gradual increase in funding each year until hitting $500 million by FY 2024. The ARPA-E Reauthorization and Reform Act of 2019 would redirect the program to address the use of energy from foreign sources; the improvement of nuclear waste cleanup; and the security of the grid, among other provisions.

HOLDING IT TOGETHER: Climate activists with Extinction Rebellion DC called on lawmakers to declare a climate emergency by supergluing themselves to the tunnel connecting the House to the Capitol building on Tuesday. “Congress needs to wake up and stop ignoring the climate crisis. @FrankPallone and @SpeakerPelosi — declare climate emergency now!” the group tweeted.

Kaela Bamberger, a spokesperson for Extinction Rebellion DC, told ME the protests were meant to “cause a disruption” and to make a point that the concurrent resolution declaring a climate emergency that was introduced earlier this month should be “a top priority.” Bamberger said 17 people were arrested Tuesday, but she added the group also received support from some members who passed the protests, including Reps. Alexandria Ocasio-Cortez (D-N.Y.) and Elijah Cummings (D-Md.).

A spokesperson for U.S. Capitol Police confirmed 17 people in total were arrested between Rayburn and Cannon, all of whom were charged with “crowding, obstructing, or incommoding.” Eight were also charged with resisting arrest and 15 charged with defacing public property.

GRASSLEY SLAMS EPA FOR OVERLOOKING DOE REFINERY RECS: Grassley on Tuesday released a letter from Energy Secretary Rick Perry last week explaining the agency’s system for making recommendations to EPA on whether a refinery was suffering under the RFS. The letter notes that it sometimes recommends granting only a half waiver from the program, but that EPA has never done so. DOE also confirmed that it has on at least one occasion recommended no waiver, but EPA granted it anyway. To Grassley, this behavior is infuriating. “EPA is screwing around with the program to the detriment of agriculture and the ethanol industry,” Grassley told reporters Tuesday. “EPA needs to stop doing the bidding of big oil companies.”

DOE demurred: “Although DOE provides the results of the analysis findings for EPA to consider, EPA has exclusive authority to decide whether to grant a petition by a small refinery for an exemption from EPA’s Renewable Fuels Standard (RFS) requirements,” a DOE official said.

EPA said Obama admin overrode DOE too: “The Obama Administration routinely completely denied all relief even when Obama Administration DOE recommended at least partial relief for a refinery,” EPA spokesman Michael Abboud said. “That didn’t make sense to completely deny relief, and the courts warned EPA against taking that approach.”

— “Fed to host its first conference dedicated to climate change,” via Axios.

UMWA wants Democratic presidential candidates to look miners in the eye,” via West Virginia MetroNews.

— “Ryan Zinke is now taking clients from industries he oversaw in Trump’s Cabinet,” via Bloomberg.

— “Duke CEO: U.S. investor-owned utilities leading the way to a low-to-no CO2 economy,” via S&P Global Market Intelligence.

Interior secretary visits Elko, Nev., gold mine, via Elko Daily Free Press.

THAT’S ALL FOR ME!





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