Geoscience Policy Monthly Review
july 2016
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energy
Webinar explores proposed nuclear waste storage solutions
July 26, 2016
The Council of State Governments’ (CGS) Southern and Midwestern Legislative Conferences hosted a webinar to explore nuclear waste storage solutions. This webinar, the second of a two-part series, highlighted actions the federal government and private sector are currently taking to handle this ongoing issue.
Andrew Griffiths from the U.S. Department of Energy (DOE) emphasized that consent-based siting is the best way to find a solution for a long-term nuclear waste storage facility, and that it is superior to a top-down approach. Griffiths explained that the DOE has just recently completed the last of their 8 public meetings about consent-based siting, and that Nye County, Nevada was not included because the DOE did not want to presume that this location was the solution. He highlighted that the DOE has requested $25 million in their fiscal year 2017 budget for grants to states, local governments, communities, and tribal nations that participate in the consent-based siting process.
Betsy Madru from Waste Control Specialists (WCS) drew attention to consolidated interim storage (CIS) and the potential for a CIS facility in Andrews County, Texas. She explained that since WCS already safely stores hazardous and radioactive waste, and has the infrastructure to support transportation of these materials, they are currently seeking a license with the Nuclear Regulatory Commission to allow the storage of used nuclear fuel.
John Heaton from Eddy Lea Energy Alliance (ELEA) announced ELEA’s partnership with Holtec International to build an underground CIS facility in southeastern New Mexico that is designed for a 100-year lifespan, and has already received state support. Heaton noted the urgency of CIS, as an agreement on long-term storage is not moving forward in Congress. He expects the National Environmental Policy Act Review process to span about 2.5 years of hearings.
Sources: U.S. Department of Energy, Midwest Energy News, Council of State Governments Knowledge Center, Waste Control Specialists, Holtec International
Updated 8/1/16
Obama Administration releases new set of rules to govern offshore exploratory drilling in the Arctic
July 7, 2016
The Department of the Interior (DOI) released their final Arctic Rule regulating exploratory drilling on the Arctic Outer Continental Shelf (OCS).The rule was prepared by the Bureau of Safety and Environmental Enforcement (BSEE) and the Bureau of Ocean Energy Management (BOEM).
The rule’s stated objective is to “[protect] the unique and sensitive Arctic ecosystems, as well as the subsistence-based health and culture of nearby Alaska Native communities, while reducing reliance on imported oil and strengthening National energy security.”
The rule outlines extensive contingency plans, requiring companies to maintain a backup rig in case of a blowout, and requiring them to have access to control and containment equipment, such as capping stacks and containment domes. It also requires each applicant to submit an integrated OCS exploration plan 90 days before submitting a request to drill in the Arctic and to construct a plan to manage and oversee contractors.
According to Brian Salerno, Director of the Bureau of Safety and Environmental Enforcement, the rules reflect issues identified after Shell’s 2012 rig accident, when Kulluk, an oil rig, ran aground off the coast of Alaska.
DOI estimates that complying with the regulations could cost the industry $2.05 billion over ten years; however, an Arctic spill could be far more expensive than the $40 billion spent on cleaning up the 2010 Deepwater Horizon spill due to the treacherous conditions.
The American Petroleum Institute’s Upstream Operations Director, Erik Milito, said in a statement that the proposed requirements “may not improve safety and in fact may inhibit innovation and technological advancements,” adding to existing concerns about over other regulatory activities related to offshore energy development.
Sources: American Petroleum Institute, Bureau of Safety and Environmental Enforcement, E&E Daily, National Ocean Industries Association, The New York Times, The Wall Street Journal, U.S. Department of Labor
Updated 8/1/16
Interior Department may move offshore oil and gas lease sales online
July 6, 2016
The House Natural Resources Subcommittee on Energy and Mineral Resources held a hearing on the Innovation in Offshore Leasing Act (H.R. 5577). The bill would amend the Outer Continental Shelf Lands Act to direct the Department of the Interior to make offshore lease sales internet-based, ending the practice of accepting sealed offers from companies and then reading bids aloud at the Superdome in New Orleans. The bill would also require all data regarding lease sales to be publically available online.
The bipartisan bill, introduced by Representatives Garret Graves (R-LA) and Alan Lowenthal (D-CA), received support from industry representatives and policy experts, who claimed the transition would increase competition and participation, ensure a fair return for taxpayers, increase revenue for government and revenue-sharing states, and avoid situations like the March protest during a Superdome lease sale.
Committee Chairman Doug Lamborn (R-CO) praised the bill as a “transition to the 21st century for federal agencies that have been slow to follow suit behind industry.” Some states, such as Texas and Louisiana, have transitioned to online lease sales for onshore oil and gas production, and the Bureau of Ocean and Energy Management (BOEM) already conducts online leases sales for offshore wind production.
Walter Cruikshank, deputy director of BOEM, expressed concerns about the expedited transition to online lease sales within one year and the “prescriptive nature” that could bar the agency from making future improvements to improve its lease sale procedures. However, Cruikshank was supportive of the bill overall, claiming that BOEM is considering live-streaming the proposed Western Gulf of Mexico Lease Sale 248 in August.
On July 13, the full Committee passed the bill with bipartisan consensus. It will now head to the House floor for consideration.
Sources: E&E Daily, EnergyNet, Govtrack.us, House Subcommittee on Energy and Mineral Resources, Morning Consult
House passes two energy research bills
July 11, 2016
The Solar Fuels Innovation Act (H.R.5638) and the Electricity Storage Innovation Act (H.R.5640) passed the House by voice vote this July. The bills, which require the Department of Energy (DOE) to carry out two new basic research initiatives, received bipartisan support.
The two initiatives include the Solar Fuels Basic Research Initiative and the Electricity Storage Basic Research Initiative, both of which seek to “expand theoretical and fundamental knowledge” with regard to controlling, storing and converting solar and electrical energy into chemical energy, respectively.
The acts authorize DOE to use $150 million annually from fiscal year (FY) 2017 to FY 2020 to carry out the new initiatives. Of that total, $100 million will come from within DOE’s Office of Science and $50 million will come from the DOE’s Office of Energy Efficiency and Renewable Energy (EERE).
Although the bills moved quickly, Rep. Eddie Bernice Johnson (D-TX) and Rep. Mark Takano (D-CA) resisted the word “basic” in both bills, given ambiguity between “basic” and “applied” research and strong resistance from university professors on the distinction.
Rep. Lamar Smith defended the language in both bills, arguing that the private sector is better suited to conduct applied research and that “by investing limited federal resources in basic research, we can lay the foundation for tomorrow’s technology breakthroughs.”
The House proceeded to vote down Rep. Takano’s amendment to remove the word “basic” from both bills.
The Senate is not currently considering similar legislation.
Sources: American Institute of Physics, House.gov
House Natural Resources panel considers renewable energy on public lands
July 13, 2016
The House Natural Resources Subcommittee on Energy and Mineral Resources held a hearing to discuss the Public Land Renewable Energy Development Act (H.R.2663), a bipartisan bill with 67 cosponsors that was introduced by Rep. Paul Gosar (R-AZ) in 2015.
If enacted, H.R.2663 would streamline the permitting process for wind, solar, and geothermal energy development on federal lands by limiting the National Environmental Policy Act (NEPA) review process. Instead of conducting new programmatic environmental impact statements (PEIS) for each proposed project, the bill would allow renewable energy projects to use preexisting, preapproved final PEISs for wind, solar, and geothermal projects on federal lands.
The bill also establishes a royalty and revenue structure for states and counties with renewable energy development. The Secretary of the Interior would determine royalty rates, with 25 percent of generated royalties going to the state, 25 percent to the counties, 15 percent to the Treasury, and 35 percent to a Renewable Energy Resource Conservation Fund aimed at supporting wildlife and recreation.
Ranking Member Alan Lowenthal (D-CA) called the bill “a win for taxpayers, win for the environment.”
Chairman Doug Lamborn (R-CO) also praised the bill, highlighting its ability to streamline the often arduous NEPA process that can take many years to complete.
The Bureau of Land Management has identified 20.6 million acres of public land with wind potential and 19 million acres of public land with solar potential; however only 1.4 percent of wind capacity was sourced from public lands in 2012.
Sources: E&E Daily, Environmental Protection Agency, House.gov
Updated 8/1/16
Hearing addresses the future of the proposed Yucca Mountain nuclear waste site
July 7, 2016
The House Energy and Commerce Subcommittee on Environment and the Economy held a hearing led by Subcommittee Chairman John Shimkus (R-IL) and Subcommittee Ranking Member Paul Tonko (D-NY) to gather information in order to move forward with federal licensing of a nuclear waste repository at Yucca Mountain, Nevada. Members of Congress, the Nye County, Nevada Commission, and private stakeholders provided testimony.
Although Yucca Mountain has been a topic of frequent debate in Congress since it was first designated a nuclear waste repository site in 1987, the Department of Energy (DOE) is not currently considering it or other locations in Nevada in their new nuclear waste strategy. Chairman Shimkus advocated for a consent-based siting process, noting that requests for involvement from Nye County locals have not been granted by the DOE.
The secure transportation of spent fuel rods dominated the conversation during the hearing. Rep. Bob Latta (R-OH) commented that a model of safe transportation would help to address safety concerns among locals and augment public confidence in the repository. Rep. Jerry McNerney (D-CA), however, voiced concerns that even with safe laws, sound science, and honest information, a deep mistrust of government will limit public approval.
Rep. Bill Johnson (R-OH) highlighted the possibility for economic growth through employment and research, and opportunities for nuclear science education that Yucca Mountain could initiate.
The Yucca Mountain repository receives strong support in the House, and the approaching retirement of Senate Minority Leader Harry Reid (D-NV), a vigorous opponent of the repository, may affect Senate views on the issue.
Sources: E & E Daily, Energy and Commerce Committee, U.S. Department of Energy
Updated 8/1/16