Reports that U.S. Department of Energy Secretary Rick Perry soon will resign have the electric power, oil and gas industries trying to gauge the agency's direction going forward and wondering whether it will pursue the same policies under new leadership.
Energy Secretary Rick Perry stands in front of Dominion Energy's Cove Point LNG liquefaction project Lusby, Md., on July 26, 2018. Source: AP Photo |
Citing three people familiar with the matter, Politico on Oct. 3 reported that Perry is expected to announce his resignation from the DOE by the end of November. The sources, who requested anonymity to discuss the departure ahead of an official announcement, said the decision has been planned for months and is unrelated to Perry's travels to Ukraine, which have come under scrutiny amid a congressional impeachment inquiry into President Donald Trump over alleged abuse of power.
DOE spokesperson Shaylyn Hynes did not confirm or deny the resignation reports, stating that Perry "is still the Secretary of Energy and a proud member of President Trump's Cabinet."
Meanwhile, Trump reportedly told House Republicans that he made a July 25 phone call to Ukranian President Volodymyr Zelensky — a call now at the center of the impeachment inquiry — at the request of Perry.
On an Oct. 4 call with House members, Trump said something to the effect of: "Not a lot of people know this but, I didn't even want to make the call. The only reason I made the call was because Rick asked me to. Something about an LNG [liquefied natural gas] plant," Axios reported Oct. 5, citing unnamed sources. Trump did not mention LNG, energy or Perry's name on the call, according to the White House's record of the conversation.
Hynes told CNN Oct. 6 that Perry "absolutely supported and encouraged the President to speak to the new President of Ukraine to discuss matters related to their energy security and economic development." She added that he "continues to believe that there is significant need for improved regional energy security — which is exactly why he is heading to Lithuania tonight to meet with nearly two dozen European energy leaders (including Ukraine) on these issues."
Perry's potential exit has the energy sector thinking about what comes next. While helming the DOE, Perry spearheaded the Trump administration's efforts to revive the struggling coal-fired and nuclear power industries, proposing a rule that would have required grid operators to ensure full cost recovery for plants in wholesale markets that stored at least 90 days of fuel onsite. The Federal Energy Regulatory Commission rejected the proposal but launched a review of grid resilience that is ongoing and could result in potential policy changes on the issue.
Perry also has supported the Trump administration's efforts to promote exports of U.S. natural gas following a surge in domestic shale gas production.
DOE Deputy Secretary Dan Brouillette is expected to replace Perry if the latter steps down, making a continuation of the department's current policies likely. But a possible Perry exit could shift some priorities for the administration. In an Oct. 4 analyst note, Height Securities LLC said his resignation would be "somewhat of a positive for the biofuels sector" given the former oil-state governor's promotion of waivers for refiners to satisfy their obligations under the U.S. Environmental Protection Agency's Renewable Fuel Standard, or RFS, mandate.
Trump to raise ethanol blending requirements
On Oct. 4, the Trump administration announced that it will propose a rule the week of Oct. 7 to expand biofuel blending requirements starting in 2020 under RFS program. The pending rule aims to ensure that more than 15 billion gallons of conventional ethanol can be blended into the U.S. fuel supply.
Renewable fuel groups applauded the announcement, saying the plan would support increased demand for low-carbon transportation fuels. But petroleum and petrochemical groups said the proposal will place "greater strain" on U.S. manufacturers and raise costs for consumers.
Energy leaders shrug off impeachment probe
The U.S. House of Representatives' impeachment inquiry into Trump is absorbing lawmakers' attention on Capitol Hill, but energy leaders in Congress insist the investigation will not slow down their work.
"I know that the Senate can walk and chew gum at the same time and we can legislate as well, as long as that's what we set our sights to," U.S. Senate Energy and Natural Resources Committee Chairman Lisa Murkowski, R-Alaska, told reporters in late September.
A spokesperson for the House Committee on Energy and Commerce said the impeachment inquiry "isn't affecting our work here" and the panel is moving ahead on energy and climate legislation.
The investigation comes as congressional appropriators are working to pass fiscal year 2020 spending bills for the EPA, DOE and other agencies. Tax-writing committees also are considering the formation of new tax extenders legislation that would include extensions or expansions of key energy incentives while the Senate energy committee prepares to take up the White House's recent nomination of James Danly to FERC.
EIA to release winter outlook
The U.S. Energy Information Administration on Oct. 8 will release its next monthly Short-Term Energy Outlook and its winter fuels outlook for 2019-2020. In addition, the EIA will host, along with the National Association of State Energy Officials, a webinar on the winter energy outlook that will address global oil supply uncertainty and the impacts of projected winter weather on heating and transportation fuels markets.
The outlooks could shed light on the potential effects of growing geopolitical tensions in the Persian Gulf, where Iran has been blamed for attacks on Saudi Arabian oil infrastructure.
Independent board to look at EPA standards
The Union of Concerned Scientists is hosting a two-day meeting starting Oct. 10 reconvening a disbanded EPA panel that had been responsible for helping set ambient air pollution standards.
The Independent Particulate Matter Review Panel will gather in Arlington, Va., to examine the EPA's policy assessment for the review of national ambient air quality standards for particulate matter. The meeting will conclude with a report on whether the current standards adequately protect public health and, if not, offer recommendations for new requirements.
The self-organized panel is made up of 20 leading air pollution experts and was formed after the EPA dissolved two outside expert panels on fine particulate matter in October 2018. Power plants produce fine particulate matter, a key ingredient in smog that can make its way through the lungs and into the heart and brain.
Business, energy groups urge innovation support
A coalition of more than 25 business and energy industry groups wrote to U.S. Senate leaders Oct. 3 urging floor consideration of several bills to foster new technologies for lowering greenhouse gas emissions.
The legislation includes S. 383, entitled the Utilizing Significant Emissions with Innovative Technologies Act, or USE IT Act, which would support carbon dioxide utilization and direct air capture research, permitting and development; S. 903, named the Nuclear Energy Leadership Act, or NELA, which aims to boost U.S. leadership in civilian nuclear power applications; and S. 1602, dubbed the Better Energy Storage Technology Act, or BEST Act, which would bolster federal research and development efforts on electric grid-scale battery storage.
The Senate Energy and Natural Resources Committee approved those and other research bills in recent months, but Senate leadership has yet to schedule floor time for the legislation.
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| Federal agencies |
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| Oct. 7 | U.S. Environmental Protection Agency Administrator Andrew Wheeler will participate in a roundtable in Bismarck, N.D., with U.S. Sens. Kevin Cramer, R-N.D., and John Hoeven, R-N.D., on the Waters of the United States rule. |
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| Oct. 8 | The U.S. Energy Information Administration will release its October Short-Term Energy Outlook and Winter Fuels Outlook for 2019-2010. In addition, the EIA and the National Association of State Energy Officials will host a webinar on the winter energy outlook. |
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Industry events |
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| Oct. 7 | The Natural Resources Defense Council will host the U.S. launch of the World Nuclear Industry Status Report at NRDC's office in Washington, D.C. |
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| Oct. 8 | The Center for Strategic and International Studies' Energy and National Security Program will release a report on oil and natural gas industry engagement on climate change at CSIS's headquarters in Washington, D.C. |
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| Oct. 10 | The Women's Council on Energy and the Environment is hosting its annual litigation roundtable featuring women administrative law judges with the Federal Energy Regulatory Commission and the U.S. Environmental Protection Agency. The event will take place at Wright & Talisman P.C.'s office in Washington, D.C. |
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| Oct. 10-11 | FERC Commissioner Richard Glick is among the keynote speakers at the Wind Energy Finance and Investment Conference in New York City. |
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| Oct. 10-11 | The Independent Particulate Matter Review Panel is meeting in Arlington, Va., to evaluate and inform the EPA's review of ambient particulate matter standards. |
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DC Circuit tosses US EPA's 'close-out' interstate smog rule
High court takes Atlantic Coast Pipeline case with federal land crossing
Duke University scientist unveils potentially damning new research on coal ash
Interior objects to Blackjewel's proposed sale, citing unpaid debt to government


