ABC’s Weekly Federal Legislative Update June 3, 2019

Introduction

Congress returns to Washington on Monday. The House will vote on a disaster relief bill. The Senate turns its attention to the 2020 and nominations. The following is news from Washington, D.C.

Administration

Renewable Fuel Standard

Late last week, the Environmental Protection agency released its rule that would allow gasoline with 15% ethanol year round.

Marc Heller of Greenwire wrote on May 31, “EPA today made final its decision to allow sales of higher-ethanol fuel in the summer, fulfilling a promise from President Trump and setting up a likely legal fight with the petroleum industry.

"The world has changed," said EPA Assistant Administrator for Air and Radiation Bill Wehrum in a conference call with reporters, noting the growing dominance of ethanol-blended gasoline since the renewable fuel standard was enacted in the mid- 2000s.

“EPA's action will allow gas stations to sell fuel that's 15% ethanol, called E15, year- round, a top priority for the ethanol industry. Wehrum said officials believe expanded availability will encourage stations that don't offer it to begin doing so.

“Stations could sell E15 this summer, although opponents could ask a federal court to block sales while an expected legal challenge plays out.

“EPA also said it would make changes to the system of renewable fuel credits that companies trade as part of the RFS. Those tweaks include additional reporting requirements for market participants, which Wehrum said would help EPA determine whether the credit market is vulnerable to manipulation. “Today's announcement marks a victory for corn farmers, whose crop is the main source for ethanol, and offers them positive news in contrast to the administration's trade fights with China and Mexico.

“It also gives Trump a potential political boost in Iowa, the leading ethanol- producing state and a critical early battleground in the next election.

“Agriculture Secretary Sonny Perdue, who has emerged as a public advocate for expanded ethanol sales, said EPA's decision would provide consumers with more fuel choices while increasing demand for farmers.

"I appreciate President Trump's steadfast support for our patriotic farmers and for his commitment to expand the sale of E15 and unleash the full potential of American innovation and ingenuity as we continue to demonstrate our rightful place as the world's leader in agricultural and energy production," Perdue said in a statement.

Reactions

“Industry reaction reflected the usual divisions. The CEO of Growth Energy, Emily Skor, called it "an incredible milestone for the biofuels industry," while petroleum refiners criticized the renewable identification number (RIN) market changes as weak.

“The National Wildlife Federation predicted more ethanol will worsen environmental impacts from converting land to corn production.

"Allowing the year-round sale of E15 gasoline is both illegal under the Clean Air Act and will accelerate the destruction of wildlife habitat and pollution of our air and drinking water," said Collin O'Mara, president and CEO of the NWF.

“EPA's move on E15 is a new interpretation of the law's provisions on the fuel's evaporative qualities and contribution to atmospheric ozone, Wehrum said.

“The agency years ago waived certain provisions to allow for year-round sale of E10, which is 10% ethanol and now standard in gas stations.

“At that time, E10 was the only ethanol-blended fuel available, he said. But the market is saturated with E10 to the point that only expanded sales of higher-ethanol blends will fulfill the renewable fuel standard's requirement to gradually increase volumes of ethanol on the market, he said.

"That's where E15 comes in," Wehrum said.

“'Happen over time'

“When EPA first proposed a waiver for E10, in 1987 — well before the RFS — just over 800 million gallons of ethanol was blended into gasoline, EPA said in today's final rule. That represented about 7% of gasoline sold, the agency said. For 2019, EPA required 19.92 billion gallons of total renewable fuel.

“Whether year-round availability will boost sales by much, and how quickly, is an open question. In the rule released today, EPA cited "considerable other barriers" to wide E15 sales and said it doesn't expect the new regulation alone to have a significant impact on E15 sales in the coming years.

“A total of 1,293 registered gas stations sell E15, the agency said, out of 150,000 gas stations nationwide. In addition, EPA said, E10 will remain the dominant fuel "for the foreseeable future."

“But Wehrum, in speaking with reporters, said the agency's action removes a market barrier and will lead to greater sales.

“Some stations will see an E15 sales bump right away, if they've been selling it during other seasons, he said, and over time newly built gas stations and older, retrofitted ones will sell E15.

"It'll happen over time," Wehrum said.

'Prudent' move

“On the renewable fuel credit system, Wehrum said the changes aimed at making the market more transparent would help EPA determine whether manipulation is occurring — a concern often voiced by industry groups. Wehrum said EPA hasn't found evidence of manipulation but added, "We think it's prudent to move in this direction."

“RINs are bought and sold as a way of showing compliance with ethanol blending requirements when a refiner doesn't actually blend the fuel.

“Today's announcement would require traders to report which RIN transactions were made on the spot market versus through term contracts, and a third-party market monitor would track the RIN market, including screening for anti- competitive behavior.

“The Fueling American Jobs Coalition, representing refiners and gas stations opposed to ethanol mandates, dismissed the market reforms as inadequate.

"While EPA has asked for input on how to enhance its ability to monitor the RIN market for manipulation and whether a EPA should employ a third-party to monitor the RIN market. This transparency alone is not enough," the group said. "If the RINs train is capable of running you over, seeing it run you over is cold comfort."

“EPA deferred action on three earlier proposed RIN market changes dealing with retirement of RINs held for certain periods of time and limitations on who can buy certain RINs and hold onto them for certain durations. Those issues may be addressed in the future, the agency said.”

EPA: Acting Head of Southeast Region is Tapped for Permanent Job

The following story discusses the elevation of the acting region 4 administrator to a permanent role.

On May 28 Kevin Bogardus of E&E News PM submitted, “EPA's acting regional administrator for its Southeast branch now has the top job.

“Administrator Andrew Wheeler announced today that Mary Walker has been appointed regional administrator of EPA Region 4, which oversees the agency's operations in the eight states of Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina and Tennessee.

“Since last November, she has been acting head of EPA's Southeast branch. The Trump administration's first Region 4 administrator at the agency, Trey Glenn, stepped down after being indicted on ethics charges related to his prior consulting work.

“Wheeler asked EPA staff to join him in congratulating Walker on her appointment and lauded her government service in an internal email obtained by E&E News.

“Walker joined EPA in 2016 as director of Region 4's water protection division. In June 2018, she was named the deputy regional administrator.

"In these roles, she worked tirelessly to improve coordination with our states in the Southeast region, as well as the timeliness of EPA actions," Wheeler said in the email sent today.

"Mary's wealth of experience and expertise serving in both state government and as a senior career official at EPA makes her exceptionally qualified to lead Region 4," he added.

“Walker has also served in the Georgia Governor's Office of Planning and Budget as well as the Georgia Environmental Protection Division, including as the agency's assistant director and chief operating officer.

“The Alabama native has a Tulane University undergraduate degree and a master's degree in public administration from the University of Georgia.”

Congress

Other

Campaign 2020: Democratic Candidates Pledge Not to Take Funding from Fossil Fuel Firms

Greenwire reporter Timothy Cama published on May 30, “The No Fossil Fuel Money Pledge, in which candidates promise not to accept donations from leaders in the oil, natural gas and coal industries, is catching on in the Democratic Party presidential primary.

“Fourteen candidates — more than half of the Democrats running for the 2020 nomination to take on President Trump — have signed the pledge, which is maintained by Oil Change U.S. and a variety of green groups. Other candidates are either considering signing on or have indicated they might.

“The most recent signature came last week from former Housing and Urban Development Secretary Julián Castro, whose roots in oil-rich Texas made him a key target for the pledge's organizers.

“Castro sent out a tweet saying he signed on to the campaign "so you know my priorities are with the health of our families, climate and democracy."

“The pledge is characterized in part by the showy nature in which climate activists try to get candidates to commit.

“Often young, the activists frequently approach candidates during appearances and immediately ask them to take the pledge, while someone records the signing or the reaction.

“The fact that the pledge is taking hold among Democrats shows how far the party has gone in pushing aside fossil fuels and trying to reduce the industry's influence, while advocating their replacement with renewables.

"The No Fossil Fuel Money Pledge has become sort of a prerequisite for anyone who wants to be a climate leader in the Democratic presidential race," David Turnbull, spokesman for Oil Change U.S., told E&E News.

“The group is the main keeper of the pledge, but it has help from organizations like Climate Hawks Vote, the Sunrise Movement, 350 Action and Friends of the Earth.

"I think that the situation we're now in is that anyone who hasn't signed the pledge has a major question to be asked about them, and that is whose side are they on?" said Turnbull. "Are they on the side of the American public, who is clearly concerned about the climate crisis and the role of the fossil fuel industry in delaying action, or are they on the side of fossil fuel executives who are solely focused on their bottom line?"

A first “It's the first presidential campaign cycle in which such a formal pledge against fossil fuel dollars existed and is being pushed on candidates.

“By signing, hopefuls promise not to accept any contribution of $200 or more from an executive or lobbyist for a fossil fuel company, nor any fossil fuel company political action committee.

“For many of the signers, it is an extension of previous promises to avoid money from corporate PACs and lobbyists.

“The pledge's signers among presidential candidates, apart from Castro, are:

• South Bend, Ind., Mayor Pete Buttigieg. • Rep. Tulsi Gabbard of . • Sen. Kirsten Gillibrand of New York. • Washington Gov. Jay Inslee. • Sen. of Minnesota. • Miramar, Fla., Mayor Wayne Messam. • Rep. Seth Moulton of Massachusetts. • Former Rep. Beto O'Rourke of Texas. • Independent Sen. of Vermont. • Rep. Eric Swalwell of . • Sen. of Massachusetts. • Author Marianne Williamson. • Entrepreneur Andrew Yang.

The ones who haven't signed are:

• Sen. Michael Bennet of Colorado. • Former Vice President Joe Biden. • Sen. Cory Booker of New Jersey. • Gov. Steve Bullock. • New York City Mayor Bill de Blasio. • Former Rep. John Delaney of Maryland. • Sen. Kamala Harris of California. • Former Colorado Gov. John Hickenlooper. • Rep. Tim Ryan of Ohio.

“The most frequent objection to signing is concern that fossil fuel industry rank-and- file workers would be shut out from the political process. That was what O'Rourke cited in April, before reversing himself in May.

“In his unsuccessful 2018 Senate campaign, O'Rourke was the second-biggest recipient of fossil fuel donations across the country, mostly a reflection of the many oil and gas workers in Texas. “Turnbull said the pledge was built in a way that it only weeds out executives and lobbyists and doesn't target the vast majority of employees.

"We focus on executives and political action committees and lobbyists because those are individuals and entities that are using their political contributions to curry favor in order to support their corporations' interests," he said.

'How can I sign this?'

“Hickenlooper argued that it'd be impossible for him to abide by the restrictions. At a New Hampshire campaign event in March, Hickenlooper initially said he would take the pledge when an activist with the New Hampshire Youth Movement asked him, according to a video the group recorded. He flipped later at the same event, after learning the details.

"I don't know the people who write the checks. You can't do that. I have no idea who writes me checks. We get a thousand checks a day. People write them all the time," he said.

“Hickenlooper went on: "How can I sign this? You've made an impossible thing to sign if someone is going to run a race."

“Turnbull, whose group frequently communicates with campaign staff before and after the signing events, said other campaigns have found no problem sorting contributions.

"If you're serious about ridding the influence of the industry," said Turnbull, "you have to make that happen."

“As governor, Hickenlooper frequently cooperated with the oil and gas industry on regulatory and policy matters, like negotiating the nation's first methane emission standards for drillers.

“His campaign didn't respond to requests for comment on the pledge, nor did most other 2020 presidential campaigns.

“Delaney's staff said they are considering the pledge and its implications, but haven't made a final decision.

"We have concerns that it could be overly broad," said spokesman Will McDonald.

"Hundreds of companies are listed," he said, "including very large employers that have numerous divisions that are unrelated to extraction."

“Delaney, like most of the Democratic candidates, has sworn off PAC contributions. He is one of the more outspoken candidates on climate change, having put out a plan recently to enact a carbon tax, among other details. “A spokesperson for Bennet said he, too, was looking at potentially signing the pledge. He doesn't accept PAC or lobbyist money.

“Some notable candidates who haven't made a final call on the pledge include Booker and Harris, who are vocal on climate change policy. Bullock, meanwhile, made reducing corporate influence over politics a main pillar of his campaign launch.

“Biden, the primary race's front-runner, has attracted the ire of activists following a Reuters report this month that he was preparing a "middle ground" climate policy that left room for natural gas, a characterization he pushed back on.

“Ultimately, greens are shooting for the primary's winner to be a pledge signer.

"My expectation is that the Democratic nominee for president is someone who is deeply concerned about the climate crisis, and understands that solving it means standing up to the fossil fuel industry. And signing the pledge is an important indication of that," Turnbull said.”

Recycling: Malaysia to Send Plastic Waste Back to the U.S.

Greenwire published on May 28, “Malaysia will send back some 3,300 tons of non- recyclable plastic waste to countries such as the U.S., U.K., Canada and Australia in a move to avoid becoming a dumping ground for rich nations, Environment Minister Yeo Bee Yin said today.

“Yeo said Malaysia and many developing countries have become new targets after China banned the import of plastic waste last year.

“Last week, the Philippines said it would ship back dozens of containers of garbage that Filipino officials were illegally shipped to the country from Canada in 2013 to 2014.

“Yeo said 60 containers stacked with contaminated waste were smuggled in en route to illegal processing facilities in Malaysia and will be sent back to their countries of origin.

“Ten of the containers are due to be shipped back within two weeks, she said, as she showed reporters contents of the waste at a port outside Kuala Lumpur.

“The displayed items included cables from the U.K., contaminated milk cartons from Australia and compact discs from Bangladesh, as well as bales of electronic and household waste from the U.S., Canada, Japan, Saudi Arabia and China. Yeo said the waste from China appeared to be garbage from France and other countries that had been rerouted after a ban imposed by China. “In one case alone, Yeo said a U.K. recycling company exported more than 55,000 tons of plastic waste in about 1,000 containers to Malaysia over the past two years.

"This is probably just the tip of the iceberg [due] to the banning of plastic waste by China," Yeo told a news conference. "Malaysia will not be a dumping ground to the world. ... We will fight back. Even though we are a small country, we can't be bullied by developed countries."

“The government has clamped down on dozens of illegal plastic recycling facilities that had mushroomed across the country, shuttering more than 150 plants since last July. Earlier this month, the government also sent back five containers of waste to Spain.

“Yeo said China's plastic waste ban had "opened up the eyes of the world to see that we have a huge garbage and recycling problem." — Associated Press”

Sustainability: Hungary to Build $1B Green-powered Town from Scratch

Climatewire published on May 29, “Hungary is planning to create a green-powered town with jobs and housing for thousands on a barren strip of Danube floodplain.

“The 1 billion-euro ($1.1 billion) Hegyeshalom-Bezenye project in northwest Hungary will be the size of about 500 soccer pitches and have full amenities such as schools and shopping facilities, said co-developers EON SE and German property company FAKT AG yesterday. Vegetables will be grown under glass where scrubland is today.

“The carbon-neutral town will draw mainly on solar and biogas power and will create as many as 5,000 permanent jobs in the greenhouse venture, Nikolai Ulrich, a board member of FAKT, said by phone. The property company is partnering with EON, builder KESZ Group and the Hungarian government on the venture.

“The sweeping infrastructure and horticultural project underlines "how a scrap of land and vision can create a green business and community venture of scale," said Ulrich. FAKT and its partners say the project will serve as a model for other conversion sites across the continent, including coal regions making the switch to clean energy.

“When complete, Hegyeshalom-Bezenye will include about 1,000 homes, a restaurant, hotel, rail station, shopping facilities as well as schools and training units. The project embeds a sustainable water management policy that aims to avoid lowering the area's water table, said Ulrich. Cooling will be supplied via geothermal plants, he said.

“As well as boosting Hungary's supply of tomatoes, peppers and aubergines, the site will host Europe's largest inland fishery, cultivating salmon, bass and sea bream, he said. — Brian Parkin, Bloomberg”