Federal Agencies

 

Department of Energy (DOE)

 

Republicans, DOE Diverge On Keystone XL Jobs Report. According to E&E News, “Two Senate and Energy Natural Resources Committee Republicans on Thursday said a Biden administration report proved GOP concerns about job losses stemming from canceling the Keystone XL oil pipeline. Sens. Steve Daines (R-Mont.) and Jim Risch (R-Idaho) said a Department of Energy report, mandated by Congress, showed that between 16,000 and 59,000 jobs and a positive economic impact of between $3.16 billion and $9.6 billion were lost because of President Joe Biden’s decision to block the conduit from crossing the U.S.-Canada border. The pipeline would have transported oil from Canada to American refineries. ‘The Biden administration finally owned up to what we have known all along — killing the Keystone XL pipeline cost good-paying jobs, hurt Montana’s economy and was the first step in the Biden administration’s war on oil and gas production in the United States,’ said Daines in a release. But the DOE report — stemming from a mandate tucked into the bipartisan infrastructure law — was more specific in its findings than the senators represented. The report, which reviewed literature from sources including the federal government and private entities, said some analyses overstated the project’s economic impact. A job creation estimate of roughly 60,000, for example, included positions outside the U.S.” [E&E News, 1/6/23 (=)]

 

Keystone XL Cancellation Cost Jobs, But Its Consumer Impacts Couldn’t Be Measured. According to The Hill, “A review from the Energy Department determined that the cancellation of the Keystone XL pipeline ultimately resulted in fewer jobs, but found the move’s impacts on consumer prices were ‘inconclusive.’ The department conducted a literature review of several studies on the impacts that the Keystone XL Pipeline would have had, including studies sponsored by the federal government as well as the company behind the pipeline, TC Energy. On his first day in office, President Biden canceled a permit that was needed for the pipeline’s construction — leading to the project’s ultimate demise. The move sparked praise from environmental organizations but condemnation from Republicans and the energy industry. The new report found that the pipeline was expected to create about 50 permanent jobs once it was operational. It also said that studies estimated the construction period would support between 16,149 and 59,468 jobs, though it said that the high-end estimate ‘overstates’ jobs because it included jobs outside the United States.” [The Hill, 1/5/23 (=)]

 

Biden Move To Scrap Keystone XL Pipeline Found To Cost Some Jobs. According to Bloomberg Law, “The cancellation of the Keystone XL Pipeline cost the US economy jobs, but its overall effect on consumers remains inconclusive, the Energy Department found. Temporary and permanent job estimates from the now-dead extension of the Canada-US oil pipeline varied widely. They included 50 permanent jobs once the project was finished, to between 16,149 and 59,468 temporary jobs over a two-year construction period, according to competing studies the department analyzed.” [Bloomberg Law, 1/5/23 (=)]

 

Keystone XL Report Gives GOP Fodder. According to Bloomberg Law, “A report on the estimated job losses related to the Biden administration’s cancellation of the Keystone XL pipeline permit has given Republicans some new fodder to attack the White Houses’ energy policies. The Energy Department’s report—mandated by Congress’ bipartisan infrastructure law (Public Law 117-58) and released Thursday—said the cancellation cost the US economy 50 permanent jobs once the project was finished, to between 16,149 and 59,468 temporary jobs over a two-year construction period. Impacts on consumers, including energy prices, as well as on crude oil production, were unclear in part because of changes in oil markets since the ...” [Bloomberg Law, 1/6/23 (=)]

 

Department of the Interior (DOI)

 

Bureau of Land Management (BLM)

 

Interior Agenda Targets Hot-Button Energy, Public Lands Issues [Public Lands]. According to E&E News, “Another closely watched rule involves planned updates to the Wild Free-Roaming Horses and Burros Act of 1971, which governs the treatment of wild horses and burros on federal rangelands. The regulations have remained largely unchanged since 1986. BLM has provided to the public few details about the updates or the time frame for completion, reporting in the latest regulatory agenda that a notice of proposed rulemaking is scheduled for September. The regulatory agenda states that the proposed rule ‘would address wild horse and burro management challenges by adding regulatory tools that better reflect BLM’s current statutory authorities.’ It cites as an example the fact that current regulations do not address ‘BLM’s authority to sell excess wild horses and burros.’ The update would also seek to ‘clarify ambiguities and management limitations in the existing regulations.’” [E&E News, 1/5/23 (=)]

 

Biden Targets New Energy Rules At DOE, FERC, Interior [Oil and Gas]. According to E&E News, “Interior, meanwhile, aims to finalize its regulations for offshore operators drilling into high temperature and high pressure environments. By midyear, the Bureau of Safety and Environmental Enforcement may also finalize updates to the offshore well control rule, according to the agenda. A set of regulations developed in response to the 2010 Deepwater Horizon explosion that killed 11 people, the well control rule was revised under the Trump administration to provide drillers more flexibility and is now being tweaked again by the Biden administration (Energywire, Sept. 13, 2022). Oil and gas regulations on public lands are on the docket for the Bureau of Land Management, which seeks to finalize proposed methane waste rules and guidelines by this fall. BLM’s previous attempt at curbing methane leaks from federal wells and pipelines was struck down in 2020 by a court that said the bureau had overstepped its authority (Energywire, Nov. 29, 2022).” [E&E News, 1/6/23 (=)]

 

Bureau of Ocean Energy Management (BOEM)

 

Interior Agenda Targets Hot-Button Energy, Public Lands Issues [Offshore Energy]. According to E&E News, “The year ahead may see final rules hit the books governing several offshore energy issues, including new bonding rules, updated parameters for high-risk drilling and guidelines for renewable energy booming off the nation’s coasts. The Bureau of Ocean Energy Management (BOEM) plans to begin a rulemaking on offshore renewable energy regulations this year, a reflection of the rapid growth of offshore wind proposals in U.S. waters and a pivot at the traditionally oil-focused bureau to overseeing renewable energy on the outer continental shelf. Interior held a meeting with fishing groups in December on the subject, including the Oregon Trawl Commission and Pacific Seafood. That followed a summer meeting with the department and representatives from the industry group American Clean Power and wind developer Ocean Winds, according to the regulatory agenda digest. Early this year, BOEM will also be working on updates to regulations on offshore financial assurances. These are the bonds and other financial instruments that offshore energy producers must secure to work on the outer continental shelf as protection to U.S. coffers if companies go bankrupt or shed responsibilities for cleaning up pipelines and other infrastructure.” [E&E News, 1/5/23 (=)]

 

Biden Targets New Energy Rules At DOE, FERC, Interior [Offshore Wind]. According to E&E News, “The year ahead may see new guidelines for renewable energy booming off the nation’s coasts. The Bureau of Ocean Energy Management plans to begin a rulemaking on offshore renewable energy regulations, a reflection of the rapid growth of offshore wind proposals in U.S. waters and a pivot at the traditionally oil-focused bureau to oversee renewable energy on the outer continental shelf. Interior held a meeting with fishing groups in December on the subject, including the Oregon Trawl Commission and Pacific Seafood. That followed a summer meeting with Interior and representatives from the industry group American Clean Power Association and wind developer Ocean Winds, according to the regulatory agenda digest. Early this year, BOEM will also be working on updates to regulations on offshore financial assurances. These are the bonds and other financial instruments that offshore energy producers must secure to work on the outer continental shelf as protection to U.S. coffers if companies go bankrupt or shed responsibilities for cleaning up pipelines and other infrastructure.” [E&E News, 1/6/23 (=)]

 

Office of Surface Mining Reclamation and Enforcement (OSMRE)

 

Interior Agenda Targets Hot-Button Energy, Public Lands Issues [Mining]. According to E&E News, “The Office of Surface Mining Reclamation and Enforcement plans to propose a new rule amending how it sends out ‘ten-day notices’ to mining operations warning them of what the agency considers to be a credible citizen health and safety complaint. It’s a controversial issue, and OSMRE during the Trump administration rolled back its 10-day rule to increase coordination with states before sending out the notices (E&E News PM, Oct. 27, 2020). The agency plans to issue a notice of proposed rulemaking next month, and has set a goal of publishing a final rule by February 2024. The reclamation agency also plans to issue a final rule later this month adjusting civil penalties for inflation, according to the latest regulatory agenda.” [E&E News, 1/5/23 (=)]

 

Department of Agriculture (USDA)

 

Biden Admin May Boost Carbon Storage In National Forests. According to E&E News, “The Forest Service is considering allowing greater use of the lands it oversees for sequestering and storing carbon, according to the Biden administration’s latest update to proposed regulations across federal agencies. According to the regulatory agenda, the Forest Service may seek to allow ‘exclusive or perpetual’ use of National Forest System lands for carbon capture, utilization and storage, a nod to the administration’s efforts to cast forest policies as a tool to mitigate climate change. A spokesperson for the Forest Service, Wade Muehlhof, said the provision would remove an obstacle to storing carbon underground in national forests. Current regulations for special uses of National Forest System land don’t allow for perpetual use, he said, which would be necessary to allow carbon storage under Forest Service land. While the proposal being considered wouldn’t authorize any carbon storage itself, it would open the way for such projects, he said. A notice of proposed rulemaking could come in August, according to the regulatory agenda. There are various methods of carbon capture and storage, but generally, the practice means taking carbon dioxide generated by industry — such as fossil fuel-burning plants — and transporting it to areas where it can be injected into the ground.” [E&E News, 1/5/23 (=)]

 

Updated MVP Draft Forest Environmental Review Seen Arriving Ahead Of Schedule. According to Natural Gas Intelligence, “Earlier than expected, the U.S. Forest Service (USFS) has released a draft version of an updated environmental review needed for the Mountain Valley Pipeline’s (MVP) proposed 3.5-mile crossing of the Jefferson National Forest along the Virginia-West Virginia border. Notice of the availability of the draft supplemental environmental impact statement (EIS) was published in the Federal Register on Dec. 23, ahead of the planned January release date previously shared by the agency. The USFS developed the latest EIS document after the U.S. Court of Appeals for the Fourth Circuit in January 2022 vacated the agency’s decision to authorize the natural gas conduit’s planned crossing of national forest lands. The USFS had issued the vacated authorization in January 2021 after developing an earlier supplemental environmental review in 2020. That process was set in motion after the Fourth Circuit vacated the agency’s initial approval of the embattled pipeline project. The release of the USFS draft environmental review puts the federal permitting process for MVP’s Jefferson National Forest crossing about five weeks ahead of schedule, analysts at ClearView Energy Partners LLC estimated, citing information from regulators shared in the fall.” [Natural Gas Intelligence, 1/5/23 (=)]

 

 

States & Local

 

Arizona

 

Hobbs Hits The Ground Running In Pivotal Year For Arizona Water. According to The Hill, “Arizona’s newly inaugurated Gov. Katie Hobbs (D) has no time to waste as she faces the daunting challenge of addressing the state’s use of water from the overallocated Colorado River. Arizona is one of three states in the river’s lower basin, along with California and Nevada. Historic drought, intensified by climate change, has battered the region for the entire 21st century, and last year, the river’s waters dropped to a level that triggers automatic allocation cuts from the federal Bureau of Reclamation. Arizona was issued the largest cut of any state, at 21 percent. The cuts took effect on Jan. 1, the day before Hobbs took office, forcing her to hit the ground running on the issue. Ultimately, she will need to oversee decisions about how the state allocates its dwindling supply from the key river, balancing competing interests between rural agricultural communities and booming cities. One of the ‘first and most important thing[s]’ directly under Hobbs’s control is something she’s already done, according to Dave White, director of Arizona State University’s Global Institute of Sustainability and Innovation. Ahead of her inauguration, Hobbs confirmed she’d retain Tom Buschatzke as director of the state Department of Water Resources.” [The Hill, 1/5/23 (=)]

 

Nevada

 

Biden's Agenda, Lithium Mine, Tribes, Greens Collide In Reno. According to E&E News, “A high-stakes, yearslong legal battle over a huge lithium mine planned in Nevada resumes Thursday with arguments from lawyers for the mining company; the U.S. agency that approved it; and the rancher, tribes and conservationists fighting the project. U.S. District Judge Miranda Du has refused twice over the past year to grant temporary injunctions sought by tribal leaders who say the mine site is on sacred land where their ancestors were massacred by the U.S. Cavalry in 1865. But Thursday’s hearing in her Reno courtroom marks the first on the actual merits of the case and will set the legal landscape with a new twist after the 9th U.S. Circuit Court of Appeals upheld a ruling in Arizona that voided federal approval of a copper mine. That potentially precedent-setting decision raises questions about the reach of the Mining Law of 1872 and could have a bearing on disposal of waste rock at the lithium mine in the high desert 25 miles south of the Oregon line, the largest proposed in the nation. Lithium Nevada Corp. and the Bureau of Land Management say the project atop an ancient volcano is critical to meeting growing demand for lithium to make electric vehicle batteries — a key part of President Joe Biden’s push to expedite a transition from fossil fuels to renewable energy.” [E&E News, 1/5/23 (=)]

 

US Approval Of Lithium Mine May Need Remedy, Judge Says. According to Bloomberg Law, “The remedy in a suit over a proposed lithium mine in Nevada could be somewhere between calls for scrapping the plan and letting it proceed—requiring the federal land bureau to correct errors in its review, the judge hearing oral argument in the case said Thursday. The case reflects a major battle over new US mining projects that aim to supply the accelerating demand for batteries for the electric vehicle industry. Lithium, the lightest metal, is currently a key ingredient in batteries and consumer electronics, setting off a scramble in recent months to find more sources of it.” [Bloomberg Law, 1/5/23 (=)]

 

Wyoming

 

Largest Land Conservation Effort In State History Threatened As Lawmakers Object To Funding. According to Wisconsin Public Radio, “Lawmakers on the state’s finance committee are objecting to what would be the largest land conservation effort in Wisconsin history, threatening to halt the project altogether. The Conservation Fund, a national environmental conservation group, bought 70,000 acres of private forestland across northern Wisconsin in 2021 called the Pelican River Forest to set it aside for recreational use and logging. Last fall, the Wisconsin Natural Resources Board signed off on a $15.5 million conservation easement to preserve more than 56,000 acres of the forest. The state Department of Natural Resources has been working with the group to secure easements for the property east of Rhinelander. The bulk of the easement would be funded by a $10.8 million federal forest legacy grant, but the state would also have to contribute funding. On Thursday, Republican Sen. Mary Felzkowski, R-Irma, said she and other members of the Joint Committee on Finance, who she declined to name, objected to using around $4 million from the Knowles-Nelson Stewardship Program to pay for the project. ‘What’s happening here is when we do a conservation easement on 56,000 acres, what that’s basically saying is this land can never ever be developed into perpetuity,’ Felzkowski told Wisconsin Public Radio. ‘Forever is a very long time.’” [Wisconsin Public Radio, 1/6/23 (=)]

 

 

Opinion Pieces

 

Op-Ed: Making The Case For Biden. According to an op-ed by Allen J. Davis in Concord Monitor, “Some of the critical decisions Biden has made, via appointment or executive order, showcase his deepest values and beliefs: Selecting Kamala Harris to be vice president, making her the first woman, and the first Black and South Asian person, to be a heartbeat away from the presidency. Appointing Pete Buttigieg as Secretary of Transportation, the first openly gay cabinet member in history. Appointing Deb Haaland as Secretary of the Interior, the first Native American person to serve in the cabinet. And appointing Ketanji Brown Jackson, the first Black woman on the Supreme Court. Here are a few of the president’s most consequential executive orders, reflecting his aspirations for our country: … The CHIPS Act (2022) committing $52 billion to grow America’s semiconductor research and production under the broader $280 billion CHIPS and Science Acts, strengthening our economy and national security by lessening reliance on authoritarian countries like China. The Inflation Reduction Act (2022), the first legislation in our history, $740 billion, aimed at slowing global warming and climate change by investing in renewable energy. … Rejoining the Paris Climate Agreement and being tough with China as well as extending an open hand to President Xi by having a three-hour in-person conversation with him at the G20 meeting in November to try to reduce tensions between the two countries and find areas for cooperation.” [Concord Monitor, 1/6/23 (+)]

 

 

 

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