On The Hill

Energy Update (August 10)

Aug 10, 2020 | SHARE  
COVID-19 Stimulus Progress
 
Throughout this week, White House Chief of Staff Mark Meadows, House Speaker Nancy Pelosi (D-CA), Treasury Secretary Steve Mnuchin, and Senate Minority Leader Chuck Schumer (D-NY) held negotiations on the next COVID-19 relief package.
 
As of Friday (Aug. 7) afternoon, no deal has been reached. On Thursday (Aug. 6), the group met for over three hours and emerged with significant unresolved policy differences despite a self-imposed end-of-the-week deadline. Mnuchin said they were close to a compromise on a number of issues, but far apart on multiple big items. Pelosi and Schumer agreed the two sides were very far apart on a relief bill.
 
On Thursday (Aug. 6), Senate Majority Leader Mitch McConnell (R-KY) signaled Senators could return home until a deal is struck.
 
President Trump announced on Thursday (Aug. 6) that he is preparing “aggressive” executive action on COVID-19 stimulus if both sides fail to finalize a deal on emergency legislation. The Executive Orders (EO) would address a payroll tax cut, eviction protections, unemployment extensions, and student loan repayment options. There are reports Trump could sign the EOs as early as Friday (Aug. 7).
 
On Friday (Aug. 7), the group met for more negotiations. After the meeting Mnuchin said “we did not make any progress today” and Schumer said “it was a disappointing meeting.” The sides remain far apart on numerous issues and prospects of a deal are bleak. Mnuchin said after the meeting he and Meadows will recommend Trump sign an EO. 
 
 
LWCF
 
On Tuesday (Aug. 4), President Trump signed H.R. 1957, the “Great American Outdoors Act,” into law.
 
For the first time since the Land and Water Conservation Fund (LWCF) was created in 1964, the program will be permanently funded at $900 million annually. The law will also create a five-year trust fund to start working on the nearly $20 billion backlog of deferred maintenance projects at national parks and on public lands. Previously, yearly allocations were made through congressional appropriators.
 
“This is a very big deal from an environment standpoint and from the beauty of our country standpoint,” Trump said.[1]
 
“There hasn’t been anything like this since Teddy Roosevelt, I suspect,” he added. 
 
Trump gave most of the credit to Senators Cory Gardner (R-CO) and Steve Daines (R-MT); two of the chamber’s most vulnerable Republicans in the upcoming election.
 
To view the legislation, click here.
 
 
Legislation
 
Senator John Cornyn (R-TX) introduced legislation Monday (Aug. 3) to allow critical infrastructure project proponents to continue relying on the nationwide permit (NWP) program.
 
The bill would amend the Clean Water Act to “clarify” that the current NWP process satisfies the Endangered Species Act Section 7 consultation requirements through 2026.
 
The legislation follows ongoing legal challenges that have tied up the NWP program. According to Cornyn’s office, the Army Corps of Engineers and project developers would be required to comply with all other existing requirements, as well as affirm authorized activities would have no impact on listed species during the period authorized by the bill.[2]
 
“In the middle of a pandemic, Texas energy producers face enough uncertainty right now,” Cornyn said. “We should be encouraging investment in critical infrastructure so that once we return to normal, domestic energy producers will be able to meet the increased demand,” he added.
 
Senate Energy and Natural Resources Committee Chairman Lisa Murkowski (R-AK) and Environment and Public Works Chairman John Barrasso (R-WY) are both co-sponsors on the bill.
 
To view Cornyn’s press release, click here.
 
On Wednesday (Aug. 5), House and Senate lawmakers proposed legislation to reduce wildfire threats in Western forests through thinning projects and protection for homes and utility lines. The bill, titled the “Emergency Wildfire and Public Safety Act,” would streamline the approval process for forest management projects, including limiting opponents’ ability to block them through lawsuits.
 
The bill would also ease a court-imposed requirement for additional Forest Service environmental reviews when new information emerges about potential endangered species in project areas.
 
Environmental groups objected to the bill and said it would hurt environmental protections and sidestep public involvement.
 
The legislation would create a program in the Energy Department to encourage the harvest of biomass for energy, including grants of up to $750,000 to conversation facilities.[3]
 
To view the bill, click here.
 
On Thursday (Aug. 6), Sen. Kamala Harris (D-CA) and Rep. Alexandria Ocasio-Cortez (D-NY) announced legislation to boost federal influence for communities who suffer from the impacts of climate change.
 
The Climate Equity Act would create an “Office of Climate and Environmental Justice Accountability,“ within the Office of Management and Budget, that would provide a “quantitative and qualitative” score for legislation to assess its impact on environmental justice communities.
 
Federal grants and investment programs would also be reviewed to ensure funds benefit low-income and minority communities.[4]
 
To view the discussion draft of the bill, click here.
 
To view a summary of the bill, click here.
 
 
OPEC
 
On Thursday (Aug. 6), OPEC announced it is increasing oil production after implementing cuts in May. OPEC and Russia agreed to cut output by 9.7 million barrels per day in May, but will be reducing that to 7.7 million by August. The U.S. oil industry is still struggling to recover from the COVID-19 pandemic.
 
A spokesperson for the National Security Council said the Trump administration was keeping an eye on the increased oil supply coming out of OPEC, and said, “the United States coordinates regularly with key oil producers on energy policy, we call on all parties to support market-based solutions to maintain stability in the global energy market.”[5]
 
 
Carbon Capture
 
On Monday (Aug. 3), a bipartisan group of eight senators asked the Treasury Department to allow carbon capture, utilization, and sequestration projects an additional year of eligibility to claim the 45Q tax credit.
 
The lawmakers noted due to the COVID-19 pandemic, the administration should allow “as much administrative flexibility as possible” to get projects off the ground.[6]
 
“The impact of COVID-19 on the economy, combined with the fact the IRS has not finalized guidelines for using the 45Q tax credit after two years, has deterred many companies from making critical investments and starting construction on carbon capture, utilization and sequestration projects,” the letter, led by Sen. Kevin Cramer (R-ND), said.
 
The lawmakers submitted the letter to a docket seeking comment on proposed rules for implementing the 45Q tax credit. The comment period has now closed.
 
To view the letter, click here.
 
 
Menenzes Confirmed
 
On Tuesday (Aug. 4), the Senate confirmed Mark Menenzes as Deputy Energy Secretary with a vote of 76-19. Iowa Republican Senators Joni Ernst and Chuck Grassley voted against Menenzes due to a conflict over spending retroactive waivers requests from small oil refineries for exemptions from their biofuel blending requirements.
 
 
References
 
[1] Dumain, Emma. “Trump signs Great American Outdoors Act; GOP takes credit.” Greenwire, 4 Aug. 2020. https://link.edgepilot.com/s/2d71afbd/SO4t9oAcH0GVyLjRy7f9Pg?u=https://www.eenews.net/greenwire/stories/1063683761/search?keyword=LWCF
 
[2] Koss, Geof. “Senate bill would bypass legal fight over permitting.” E&E Daily, 5 Aug. 2020. https://link.edgepilot.com/s/516cbb8b/aUeB1kTI9Eyd3btyviItIQ?u=https://www.eenews.net/eedaily/2020/08/05/stories/1063684391
 
[3] Heller, Marc. “Lawmakers unveil long-awaited wildfire legislation.” E&E Daily, 6 Aug. 2020. https://link.edgepilot.com/s/31bc58fe/8lzlrbhTkEKZPqj0DmaUoA?u=https://www.eenews.net/eedaily/2020/08/06/stories/1063688919
 
 
[5] Lefebvre, Ben. “OPEC raises oil output as White House watches.” Politico, 6 Aug. 2020.
 

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