Geoscience Policy Monthly Review
may 2014
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energy
Senate hearing examines winter propane shortages
On May 1, the Senate Energy and Natural Resources Committee held a hearing to discuss the causes of propane shortages last winter and how to prevent shortages in the future.
Witnesses from the federal government and propane industry agreed that the shortage originally stemmed from an unusually high demand for propane in the fall of 2013 to dry damp corn crops harvested late in the season. This decrease in initial propane supply coupled with a long, very cold winter led to shortages and higher fuel prices that impacted many midwestern and eastern states. The shortage prompted the Federal Energy Regulatory Commission, Congress, and the President to take emergency measures to ensure propane deliveries.
The witnesses suggested that changes in seasonal energy use, inadequate pipeline and storage space, and current legislation banning companies from sharing information about propane supplies contributed to the propane shortages. Senators on both sides of the aisle agreed that legislation to help remedy these issues would benefit their constituents and help forestall the necessity of emergency measures in the future.
Sources: E&E News, Senate Energy and Natural Resources Committee
Updated 6/9/14
EPA requests comments on the disclosure of fracking chemicals
The Environmental Protection Agency (EPA) seeks comments in anticipation of a proposed rule on how companies should report chemicals used in hydraulic fracturing. The EPA requests input on effective methods for companies to disclose chemicals, on whether disclosing fracking chemicals should be mandatory or voluntary, and invites suggestions for a potential incentive program for voluntary disclosure.
Comments must be received by the EPA on or before August 18, 2014.
Sources: Environmental Protection Agency, Federal Register
Hearing on energy needs in Asia: the U.S. liquefied natural gas option
On May 29, the House Committee on Foreign Affairs, Asia and the Pacific Subcommittee held a hearing to discuss potential U.S. exports of liquefied natural gas (LNG) to meet rising energy needs in Asia.
Witnesses representing academia, industry, and non-governmental organizations expressed support for U.S. exports of LNG to Asia, citing a number of economic benefits including domestic job creation and reduction of the U.S. trade deficit. They also emphasized the geopolitical advantages of fostering trade relationships, and the decrease in greenhouse gas emissions and pollutants by switching to LNG from other fuels. Mikkal Herberg, Research Director for the Energy Security Program at the National Bureau of Asian Research, described the situation as a “win-win-win.”
Although the witnesses acknowledged that exports of American LNG to Asia could potentially increase domestic LNG costs and lead to greater competition with other suppliers, they ultimately agreed that the U.S. should export LNG to Asia. Their comments reinforce the recent passage of the Domestic Prosperity and Global Freedom Act (H.R. 6) by the House Committee on Energy and Commerce, which expedites approval for U.S. companies to export LNG to World Trade Organization countries.
Sources: House Energy and Commerce Committee, House Subcommittee on Asia and the Pacific
Senate passes legislation to help prevent propane shortages
On May 21, the full Senate passed bipartisan legislation to combat severe propane shortages like those occurring last winter across the East Coast and Midwest. The Reliable Home Heating Act (S. 2086) was drafted by Senator John Thune (R-SD) and gained bipartisan co-sponsors.
The measure addresses many concerns discussed in a May 1 hearing held by the Senate Energy and Natural Resources Committee. Witnesses there suggested that changes in seasonal energy use, inadequate pipeline and storage space, and current legislation banning companies from sharing information about propane supplies contributed to the propane shortages, which in turn prompted the Federal Energy Regulatory Commission, Congress, and the President to take emergency measures to ensure propane deliveries.
If enacted, the bill would enhance state governors’ ability to declare fuel shortage emergencies and would require the Energy Information Administration to inform states when specific petroleum reserves drop below historical averages. The measure would also relax federal regulations that limit service hours for vehicles transporting heating oil, natural gas, and propane.
S. 2086 has been reported to the House Committee on Transportation and Infrastructure, and the House Committee on Energy and Commerce. It will need to pass the full House and be signed by the President before it can become law.
Sources: E&E News, Senate Energy and Natural Resources Committee
Department of Energy round table discusses methane emissions
On May 20, Department of Energy (DOE) officials convened a White House round table to discuss methane emitted by the natural gas sector. White House Counselor John Podesta and Energy Secretary Ernest Moniz met with scientists and representatives from environmental groups and nongovernmental organizations to discuss efforts to decrease methane emissions. Methane is a potent greenhouse gas that may account for a third of climate warming since the 1750s, as well as being detrimental to health.
The natural gas and petroleum industry is the second-largest producer of methane in the U.S., and recent scientific studies indicate that the industry’s emissions may be higher than previous EPA estimates. In light of this, round table participants recommend reducing emissions by developing technology to better detect methane leaks, and encouraging the export of liquefied natural gas (LNG), which emits less methane than many other fuel sources. The groups also identified the need for better regulation of the natural gas sector by DOE and other agencies in order to limit emissions.
Under President Obama’s Climate Action Plan, the DOE has arranged five round tables in order to improve methane policy. The plan also requires revisions to the Bureau of Land Management’s standards concerning the controversial practice of venting and flaring, the process of releasing and igniting excess natural gas, and has prompted debate concerning its overall role in regulating oil and gas wells on public lands.
Sources: Department of Energy, E&E News, White House Office of the Press Secretary
Supreme Court will not review Department of the Interior coal-export fee
On May 19, the Supreme Court of the United States (SCOTUS) declined to hear a challenge to the Department of the Interior’s (DOI) rule charging coal companies fees for exporting coal. A federal appellate court ruling upholding the fee stands following SCOTUS’ decision not to hear arguments in Aracoma Coal Company v. United States (No. 13-941).
Coal producers sought review of a regulation under the Surface Mining Control and Reclamation Act of 1977 (Public Law 95-87) that requires coal companies to pay a fee to DOI based on the total weight of extracted coal. The fee is assessed after the coal is sold rather than when it is mined, which producers argue is unfair.
Opponents of the regulation state that coal producers are overcharged because the weight of additives and other ingredients is included in the final measure. DOI counters that assessing the fee after extraction allows for impurities in the coal to be removed.
Federal appellate judges ruled on May 13 in a similar case that weighing coal at the time of sale yields a more accurate measure and leads to less total fees.
Sources: E&E News, Supreme Court of the United States
On May 22, the Geoscience-Energy Briefing Consortium, which includes the American Geosciences Institute, held two briefings for congressional Senate and House staff entitled “Oil and Gas Development: How Geoscience Makes a Difference.” This event was part of the Energy from the Earth briefing series.
Speakers:
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Scott Tinker -- Professor and State Geologist of Texas, Bureau of Economic Geology, The University of Texas
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Nick Tew -- State Geologist and Oil and Gas Supervisor, geological Survey of Alabama and State Oil and Gas Board of Alabama
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Rex Buchanan -- Interim Director, Kansas Geological Survey, University of Kansas
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Scott Anderson -- Senior Policy Advisor, Environmental Defense Fund
Moderator:
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Wendy Harrison -- Professor, Colorado School of Mines
The topic of the next Energy from the Earth briefing is “Expanding Natural Gas Production: Opportunities and Constraints.” This briefing will be held on Thursday, June 26, from 2:00 to 3:00 pm in room 1334 of the Longworth House Office Building.