Category Archives: Federal deregulation

Trump administration taking advantage of coronavirus crisis – polluters winning big

U.S. dramatically rolls back rules for polluters – companies can now monitor themselves during the outbreak.

Letters from an American, by Heather Cox Richardson, March 26, 2020  

March 26, 2020

Heather Cox Richardson, American historian and Professor of History at Boston College and Author, Letters from an American

The United States now leads the world in confirmed coronavirus cases. At least 83,377 people have tested positive for the virus, a leap of 17,166 cases. At least 1,295 have died. As nurses and doctors struggle on the front lines of this pandemic, Trump and his supporters insist that fears of the disease are overblown. In Louisiana, a pastor of a Baton Rouge megachurch is continuing to hold services in defiance of orders from Democratic Governor John Bel Edwards against large gatherings. Pastor Tony Spell of Life Tabernacle Church says he is not worried about Covid-19. “The virus, we believe, is politically motivated. We hold our religious rights dear and we are going to assemble no matter what someone says.”

The United States now leads the world in confirmed coronavirus cases. At least 83,377 people have tested positive for the virus, a leap of 17,166 cases. At least 1,295 have died. As nurses and doctors struggle on the front lines of this pandemic, Trump and his supporters insist that fears of the disease are overblown. In Louisiana, a pastor of a Baton Rouge megachurch is continuing to hold services in defiance of orders from Democratic Governor John Bel Edwards against large gatherings. Pastor Tony Spell of Life Tabernacle Church says he is not worried about Covid-19. “The virus, we believe, is politically motivated. We hold our religious rights dear and we are going to assemble no matter what someone says.”

The Labor Department reported last week’s unemployment claims, and they are higher by far than expected. More than 3.28 million workers filed unemployment claims, and the system is so backlogged many cannot get through. The unemployment rate jumped to 5.5 from last month’s 3.5%.

Despite the jobs numbers, investors regained faith in the markets. On Thursday, the stock market rose again for the third day. The Dow Jones Industrial Average finished up 1,351 points, or about 6.38%. With an all-over rise of more than 20% since Monday, the market is out of the bear territory it had entered with the falls of recent weeks.

Investors might have been cheerful about the market in part because the Trump administration has drastically rolled back rules for polluters in this crisis. Companies can now monitor themselves during the outbreak. The Environmental Protection Agency will not issue fines for breaking certain laws for reporting violations of air, water, or hazardous waste violations. The new order asks companies to “act responsibly.” Compliance is retroactive to March 13.

This EPA order dovetails with other regulatory rollbacks taking place while we are focused on the deadly pandemic. The administration is rushing through regulations to weaken environmental laws since Congress can overturn a regulation or federal rule within 60 days of it being finalized, and Republicans are increasingly concerned that voters will turn against them in the 2020 election. So they are in a hurry to get their rollbacks on the books before the 60 day mark.

The House of Representatives is set to take up the Senate’s $2 trillion emergency relief bill. The House is not currently in session, so House Speaker Nancy Pelosi and House Minority Leader Kevin McCarthy agreed to a voice vote, which would not require all 430 members of the House to return to Washington. But at least one representative, Thomas Massie (R-KY), is considering opposing the bill out of concerns about its cost, which would require the presence of all the representatives for a roll call vote.

All eyes are on the coronavirus as we become the nation hardest hit by it.


Notes:

https://www.worldometers.info/coronavirus/

https://www.nytimes.com/interactive/2020/us/coronavirus-us-cases.html

https://www.nytimes.com/2020/03/26/health/usa-coronavirus-cases.html

https://thehill.com/homenews/house/489793-house-leadership-advises-members-to-return-to-washington-as-massie-weighs-roll-call-vote-on-stimulus-package

layoffs: https://washingtonpost.com/business/2020/03/26/unemployment-claims-coronavirus-3-million/

EPA: https://www.nytimes.com/2020/03/26/climate/epa-coronavirus-pollution-rules.html

https://www.nytimes.com/2020/03/25/climate/coronavirus-environmental-regulations-trump.html

https://www.washingtonpost.com/politics/house-leaders-seek-to-expedite-emergency-aid-package-amid-uncertainty-about-gop-lawmaker-delaying-measure/2020/03/26/392c9dba-6f7d-11ea-a3ec-70d7479d83f0_story.html

jobless claims: https://talkingpointsmemo.com/edblog/unemployment-jobless-claims-economy-stimulus-small-business

stock market: https://www.cnn.com/business/live-news/stock-market-news-today-032620/index.html

Tony Spell: https://www.nbcnews.com/news/us-news/louisiana-pastor-defies-coronavirus-order-draws-over-1-000-people-n1168501

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Deregulating Rail Transportation of Liquefied Natural Gas

The Regulatory Review, by Mark Nakahara, Mar 24, 2020

Proposed rule aims to make it easier to ship liquified natural gas by rail.

A new regulation from the Trump Administration may soon make it easier for U.S. companies to ship large quantities of liquefied natural gas (LNG), an increasingly valuable product. But the new regulation also carries great risks.

The Pipeline and Hazardous Materials Safety Administration (PHMSA) recently released a proposed rule that would allow for railroads to transport LNG in bulk and without obtaining special permits. Critics, however, worry that PHMSA is acting too quickly and disregarding certain safety concerns.

LNG is a cryogenic liquid—a substance that must be refrigerated below -90°C (-130°F) to maintain its liquid state. Since liquids are more compact than gases, large volumes of substances like LNG can be transported by freight trains.

PHMSA states that LNG is “odorless, colorless, non-corrosive, and non-toxic,” but safety concerns remain. LNG has traditionally been shipped by road or sea, and current regulations only allow the bulk transportation of LNG by rail after a shipper has obtained special approval from PHMSA or the Federal Railroad Administration. Observing that LNG is similar in nature to other substances that may be shipped by rail, the Association of American Railroads petitioned PHMSA to allow LNG to be shipped by rail in standard tank cars.

The issue of LNG transportation reached the highest levels of the U.S. government. In an executive order, President Trump noted that the current LNG regulations were drafted almost 40 years ago when the industry was less developed. As part of an effort to upgrade American energy infrastructure, the President specifically requested that the U.S. Department of Transportation amend the regulations to “treat LNG the same as other cryogenic liquids and permit LNG to be transported in approved rail tank cars.”

Just over six months after the executive order, PHMSA issued its proposed rule.

The proposed rule would permit the shipping of LNG in DOT-113 tank cars, which routinely transport other cryogenic liquids such as liquid hydrogen, nitrogen, and ethylene. Since LNG has similar properties to these liquids, PHMSA anticipates that the cars would be suitable for this task. PHMSA says that it also considered creating specifications for a new type of tank car that would be able to transport LNG over a longer timeframe, but it concluded that this process would only delay the rulemaking process.

The proposed rule also raises and seeks public comment on various operational issues designed to reduce safety risks should a rail accident occur. Since LNG is a hazardous material shipped at high pressure, a derailment or collision involving a tank car can have severe effects.

PHMSA is considering several methods for reducing risk. Following a safety recommendation from the National Transportation Safety Board, PHMSA has noted that cars containing LNG could be arranged a safe distance from the train crew in the locomotive. It also has suggested that speed restrictions could be imposed on trains carrying LNG, or that additional routing requirements be fulfilled when scheduling rail shipments of LNG.

Due to a lack of data on LNG rail shipments, PHMSA has not yet proposed any concrete, definitive rule changes addressing these operational issues. PHMSA anticipates that freight trains will only carry a few LNG cars at a time and the agency finds it “uncertain” whether the industry would grow to the point where entire trains would be devoted to LNG.

In a letter to PHMSA, U.S. Senators Ron Wyden (D-Ore.) and Jeff Merkley (D-Ore.) expressed concern that the agency had not considered all the risks the proposed rule might create. They recalled that there have been two incidents since 2011 where the protective linings of cryogenic tank cars have been breached. Since the LNG industry continues to grow, the senators worry that increased rail transport of LNG will lead to more such incidents.

The senators have reason to be concerned. In 2016, a crude oil train derailed and caught on fire in their home state of Oregon. The accident released 42,000 gallons of oil into the Columbia River Gorge. Due to the geography of the area, emergency response crews faced difficulties in quickly reaching the site. The senators noted that LNG’s high flammability can cause even hotter and more explosive fires than crude oil, a fact that the proposed rule does not cover in detail.

Environmental advocacy groups have similarly criticized the proposed rule. In a comment, Bradley Marshall and Jordan Luebkemann of Earthjustice have stated that PHMSA’s proposal is “unlawful” and fails to address potential adverse effects. Since LNG is more explosive than other cryogenic liquids being shipped by rail, an LNG accident in a populated area could have disastrous consequences.

Marshall and Luebkemann have reportedly found that 3.4% of DOT-113 tank cars have been damaged since 1980. Furthermore, they have observed that PHMSA provided no new data or justification to show that the safety of these tank cars has improved.

PHMSA received almost 400 comments before the comment period closed on January 13, 2020. The agency will now have to consider these comments before issuing any final rule.

Disaster-Born Safety Rules Topple in Trump Rollback

  • Chemical safety measure is latest Obama-era rule to be eased

  • White House says it can protect both public and businesses

Bloomberg News, by Ari Natter and Jennifer A Dlouhy, Nov 22, 2019

The Trump administration’s move to relax an Obama-era chemical safety regulation put in place after an explosion at a fertilizer plant is the latest example of the White House easing rules established in the wake of disasters.

Trump’s professed goal of rolling back “job-killing” regulations has led to weakening mandates proposed or enacted after three of the worst industrial accidents of the last decade: The 2010 Deepwater Horizon oil spill in the Gulf of Mexico, the 2011 Fukushima nuclear plant meltdown in Japan and 2013 derailment and explosion of an oil train in Canada.

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Smoke billows from controlled oil burns near the site of the BP Plc Deepwater Horizon oil spill in the Gulf of Mexico, 2010.  Photographer: Derick E. HingleBloomberg

“There is a clear pattern of the Trump administration targeting rules that were put in place in response to massive public health, safety, and environmental disasters,” said Amit Narang, a regulatory policy expert with the watchdog group Public Citizen. “The public expects our government to respond to these types of public disasters with regulations that protect them.”

Backers of Trump’s drive to repeal rules say that there is a natural rush to regulate after a high-profile disaster that can go too far.

“Some of these rollbacks come with the wisdom of time to say ‘we went further then we needed to go now that we have more information,’” said Dan Bosch, director of regulatory policy for the American Action Forum, a Republican-aligned think tank.

Related: EPA Eases Safety Standards Put in Place After Deadly Texas Blast

Representatives of the White House reject the notion the rollbacks risk safety.

“Those trying to connect any health and safety risks across the country” to those efforts “are dangerously wrong — there is no evidence to support such ridiculous claims,” said Chase Jennings, a spokesman for the White House Office of Management and Budget. “The administration is focused on relieving undue burdens and protecting public health and safety.”

Still, the changes have set off alarm bells with public safety advocates.

“They have picked out some of the most important safety regulations,” said Fred Millar, an independent rail consultant. “The Trump deregulation bank has a withdrawal window that’s wide open and industry is taking advantage.”

Earlier: Rail Industry Hails Repeal of Electronic Brake Mandate

In 2015, the U.S. Transportation Department imposed regulations meant to address a series of fiery crude-train derailments, most notably the one that killed 47 people in Lac-Megantic, Quebec. Canadian officials determined that a crew member’s failure to appropriately secure the train was one of nearly 20 causes of the derailment.

U.S. regulators mandated, over the objections of the industry, electronically controlled pnuematic brakes to shorten stopping distances. But that measure was rescinded by the Trump administration, which cited a lack of research showing the brakes were better and questions over whether the benefits were justified by the costs.

In some cases, the Obama rules have been left intact while some key provisions have been eased. That opens the administration to complaints it is rolling back safeguards even when it keeps many pieces untouched.

For example, the Environmental Protection Agency’s decision to rescind portions of a risk management law following the 2013 fertilizer explosion that killed 15 people in West, Texas, retained provisions cheered by safety advocates such mandating coordination with first responders and emergency exercise requirements.

But it axed mandates that required more public disclosure about what chemicals are stored at industrial sites, automatic third-party audits after accidents and a rule that companies assess safer technology options as a way of reducing risk.

Related: Trump Gives Oil Drillers More Leeway by Easing Post-Spill Rule

That was also the case with the White House’s decision to relax some of the mandates imposed by the Obama administration in response to the Deepwater Horizon disaster that killed 11 workers and unleashed the worst oil spill in U.S. history.

In May, the Interior Department rewrote about a fifth of that 2016 Obama rule, easing mandates for real-time monitoring of offshore operations and third-party certifications of emergency equipment.

But the department rebuffed oil industry pressure to lift a specific requirement for how much pressure must be maintained inside wells to keep them in check. Instead, companies now can apply for exceptions to that “safe drilling margin” requirement earlier in the permitting process.

The Nuclear Regulatory Commission, with three of its five members Trump appointees, voted 3-2 in January to strip down a rule requiring nuclear plants to upgrade their protection against flooding and earthquakes that was meant to prevent a Fukushima-style meltdown from occurring in the U.S.

The nuclear industry argues that rather than redesign facilities to address increased flood risks, it’s enough to focus on storing emergency generators, pumps, and other equipment in concrete bunkers.

Edwin Lyman, acting director of the Nuclear Safety Project at the Union of Concerned Scientists, disagrees.

“It’s just bad science and bad policy because of the philosophy that we are not going to impose any new regulations,” Lyman said. “It’s dismissing science, it’s not taking into account the impact of climate change that could lead to more severe flooding events.”

— With assistance by Ryan Beene

Trump administration to relax restrictions on methane, a powerful greenhouse gas

The oil and gas industry are split on the rollback

This 2017 photo shows pumpjacks operating in the western edge of California's Central Valley northwest of Bakersfield. (Brian Melley/AP)
This 2017 photo shows pumpjacks operating in the western edge of California’s Central Valley northwest of Bakersfield. (Brian Melley/AP)
The Washington Post, By Juliet Eilperin and Brady Dennis, Aug 29, 2019

The Environmental Protection Agency announced Thursday that it plans to loosen federal rules on methane, a powerful greenhouse gas linked to climate change.

The proposed rule would reverse standards enacted under President Barack Obama that required oil and gas operators to prevent the release of methane in new drilling wells, pipelines and storage facilities.

It also challenges the notion that the federal government has the authority to regulate methane without first making a detailed determination that it qualifies as a pollutant under the Clean Air Act.

If successful, that change could hamper the ability of future administrations to enact tougher restrictions on methane. Already, the Trump administration has taken several steps to limit the government’s ability to regulate other greenhouse gases in the future, including in a recently finalized rule curbing carbon dioxide emissions from power plants.

“EPA’s proposal delivers on President Trump’s executive order and removes unnecessary and duplicative regulatory burdens from the oil and gas industry,” EPA Administrator Andrew Wheeler said in a statement. “The Trump administration recognizes that methane is valuable, and the industry has an incentive to minimize leaks and maximize its use.”

Methane is a significant contributor to the world’s greenhouse gas emissions, though it is shorter-lived than carbon dioxide and is not emitted in amounts as large. It often is leaked as companies drill for gas and transport it across the country, and methane emissions are more than 80 times as potent as carbon dioxide emissions over the short term.

Scientists have projected that the world needs to cut its overall greenhouse gas emissions nearly in half by mid-century to avert catastrophic effects from global warming.

According to the EPA, methane accounted for more than 10 percent of all U.S. greenhouse gas emissions from human activities as recently as 2017. Nearly a third of those emissions were generated by the natural gas and petroleum industry.

U.S. greenhouse gas emissions spiked in 2018 — and it couldn’t happen at a worse time

“What they’re tackling is whether methane can lawfully be a regulatory pollutant,” Erik Milito, vice president of upstream and industry operations for the American Petroleum Institute, said in an interview. “We have a strong consensus that federal agencies need to follow the letter of the law. They did not do that, and they are going back and correcting that.”

Anne Idsal, assistant administrator​ of the EPA’s Office of Air and Radiation, said the administration is confident that methane emissions from oil and gas companies will continue to decline over time, even without the current regulations.

“Methane is a valuable resource,” Idsal told reporters in a call Thursday. “There’s every incentive for industry to minimize any type of fugitive methane emissions, capture it, use it and sell it down the road.”

The agency estimates that the proposed changes, which will be subject to public comment for 60 days after they are published, would save the oil and natural gas industry $17 million to $19 million a year.

But several of the world’s biggest fossil fuel companies, including Exxon, Shell and BP, have opposed the rollback and urged the Trump administration to keep the current standards in place. Collectively, these firms account for 11 percent of America’s natural gas output.

In a statement Thursday, Shell U.S. President Gretchen Watkins reiterated the company’s support for national limits on methane, noting that Shell has pledged to reduce its methane leaks from its global operations to less than 0.2 percent by 2025.

“We believe sound environmental policies are foundational to the vital role natural gas can play in the energy transition and have made clear our support of 2016 law to regulate methane from new and modified onshore sources,” she said. “Despite the administration’s proposal to no longer regulate methane, Shell’s U.S. assets will continue to contribute to that global target.”

The Wall Street Journal first reported news of the rollback.

Idsal said the agency will continue regulating volatile organic compounds, which are also released during oil and gas operations, rather than methane directly. Such limits could cut down on the amount of methane released in the process. Milito noted that by 2023, 90 percent of oil and gas facilities will have to install technology curbing volatile organic compounds.

In September, the Interior Department eased requirements that oil and gas firms operating on federal and tribal land capture the release of methane.

Environmentalists threatened to fight the Trump administration’s move in court.

Kassie Siegel, director of the Climate Law Institute at the Center for Biological Diversity, an advocacy group, called the proposal reckless, saying it shows “complete contempt for our climate.” She said that even the Obama administration’s efforts to limit methane emissions were modest, given the significant amount that escapes into the atmosphere each year.

“The Obama rule was like a Band-Aid on a gaping wound,” Siegel said. “The Trump administration is so fanatical that they couldn’t even live with the Band-Aid. They had to rip off the Band-Aid.”

The Obama administration’s push to impose the first limits on methane emissions from the oil and gas industry in 2016 came shortly after the EPA found that emissions were on an upswing at a time when booming U.S. shale oil and gas drilling had dramatically driven down the prices of domestic natural gas and global oil alike.

Ben Ratner, a senior director at the advocacy group Environmental Defense Fund, said in an interview that rolling back the regulations could reward bad actors in the industry. Given that many major players had embraced limits on methane, Ratner said, it made little sense for Trump officials to ease such restrictions.

“It’s more of an ideological reaction to regulation of any climate pollutant by the federal government,” he said.

Steven Mufson contributed to this report.