On The Hill

Executive Orders

Trillion Trees

On Tuesday (Oct. 13), President Trump signed an Executive Order (EO) that will increase the administration’s role in the global Trillion Trees Initiative.

The EO creates an interagency council tasked with developing, coordinating, and promoting U.S. work on tree growth and conservation. It looks to address potential “statutory and regulatory” limitations and will be led by the Secretary of the Interior and the Secretary of Agriculture.

“Through today’s executive order, and on the heels of the Great American Outdoors Act signed into law by the President just two months ago, we continue to prioritize forest conservation in America and around the world. I am proud to serve on the Trillion Trees Interagency Council as we advance solutions to promote healthy and resilient forests for future generations,” Ivanka Trump said.^[1] 

In January, Trump announced the U.S. would participate in the initiative launched at the World Economic Forum.

To view the text of his Trillion Trees EO, click here.

Interagency “Water Subcabinet”

The second EO addresses water infrastructure and creates a “water subcabinet” chaired by the Secretary of the Interior and the Environmental Protection Agency (EPA) Administrator.

It touches on a broad range of issues, including water storage for farmers, Florida Everglades restoration, and the Great Lakes.

“The Trump Administration has made it a priority to ensure communities across the nation receive safe, reliable water,” Interior Secretary David Bernhardt said in a statement. “The order furthers our incredible efforts over the past three and a half years to cut bureaucratic red tape and improve water infrastructure,” he added.^[2] 

To view the text of his water EO, click here.

 

New Legislation

Representative Sean Casten (D-IL) introduced legislation on Tuesday (Oct. 13), the “Tradable Performance Standard Act,” which aims to cut greenhouse gas emissions from power and thermal energy production 40 percent by 2030 and 100 percent by 2040.

The legislation would reduce CO2 through a system of emissions allowances administered by the EPA.

Casten is a member of the House Select Committee on the Climate Crisis and has private-sector experience in the energy industry. His carbon pricing proposal could have more influence if Democrats win back the White House and Senate in November.

He noted the legislation is an effective way to put a price on emissions without directly increasing consumer energy costs or setting up a new “government bureaucracy.”

“I am completely committed to the idea that we should use market-based tools to reduce pollution,” Casten said. “But almost every policy we have proposed on carbon is not technically a market-based tool, because we don’t connect buyers and sellers,” he added.^[3] 

To view the legislation, click here.

 

Global News

On Wednesday (Oct. 14), the European Commission announced its new Methane Strategy, which aims to cut methane emissions across the European Union (EU).

“In the absence of significant commitments from international partners on methane emissions reductions, the Commission will consider proposing legislation on targets, standards or other incentives to reduce methane emissions from fossil energy consumed and imported in the EU,” the strategy said.

The strategy would prioritize both data gathering and reporting obligations while also opening the door to new regulatory measures. Additionally, the European Commission plans to take legislative steps to reduce methane emissions inside the EU.^[4] 

To view the EU’s Methane Strategy, click here.

 

FERC

PJM Minimum Offer Price Rule

At Thursday’s (Oct. 15) open meeting, the Federal Energy Regulatory Commission (FERC) accepted part of PJM Interconnection’s compliance filing on how the grid operator would implement the Minimum Offer Price Rule and remanded another section.

The order could allow PJM to restart its capacity auction by mid-2021 after a two-year delay. However, it will still force state subsidized resources to use administratively set minimum prices that could bar them from clearing PJM’s market.

Carbon Price

FERC Commissioners also approved a policy statement at the meeting that said it was open to establishing market rules that would allow the implementation of a price on carbon. Overall, the statement says FERC is open to a carbon price within the RTOs and ISOs that it oversees.

“My overarching takeaway from this robust conversation was that if states continue to pursue carbon pricing — and I fully expect this to be the case — RTOs and their stakeholders can and should explore the feasibility and benefits of market rules that incorporate the state-determined carbon price,” FERC Chairman Neil Chatterjee said.^[5] 

To view the statement, click here.

New Complaints

On Wednesday (Oct. 14), two fossil fuel plants asked FERC to impose restrictions on subsidized resources participating in the New York Independent System Operator’s capacity markets.

The group argued that “unfettered” state subsidies for nuclear plants and renewables threaten competitive markets. Additionally, they said the state’s subsidies are distorting market capacity.

The complaint was filed by Cricket Valley Energy Center and Empire Generating. It requests FERC act before the end of the year.

To view the complaint, click here.

 

Congress

Supreme Court Vacancy

The Senate Judiciary Committee will vote on Judge Amy Coney Barrett’s nomination to the Supreme Court on Oct. 22. Wednesday (Oct. 14) was Barrett’s final day of questioning by the committee. It is likely she will be confirmed before the election, and in time to hear cases this November on the Affordable Care Act and the election.

Stimulus Package Negotiations

House Speaker Nancy Pelosi (D-CA) and Treasury Secretary Steve Mnuchin are still negotiating a stimulus bill. Last week, the White House proposed a $1.8 trillion package. Trump said on Thursday (Oct. 15) that he would “go higher” than $1.8 trillion and added that he told Mnuchin to present a bigger offer to Pelosi.

This week, Senate Majority Leader Mitch McConnell (R-KY) announced the Senate will vote on a standalone bill on Monday (Oct. 19). This bill would cost around $500 billion and extend the Paycheck Protection Program (PPP). McConnell has made it clear he does not support the $1.8 trillion offer currently being negotiated between Pelosi and Mnuchin.

 

EPA

On Thursday (Oct. 15), the EPA proposed additional restrictions on nitrogen oxide (NOx) pollution from power plants in 12 states. The rule is in response to a 2019 court ruling that said part of the original Obama-era version was unlawful.

The new rule would reduce NOx emissions by 17,000 tons ahead of the 2021 summer ozone season, and applies to 12 states, including Illinois, Indiana, Kentucky, Louisiana, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, Virginia, and West Virginia.^[6] 

To view the rule, click here.

 

References

^[1] German, Ben. “Trump to sign ‘trillion trees’ executive order.” Axios, 13 Oct. 2020. https://link.edgepilot.com/s/8f67c676/beWU4FEWHUS6XrzZ69w2JQ?u=https://www.axios.com/trump-one-trillion-trees-climate-change-forestry-1f4c32b7-9514-410b-a4dc-b2c6ecee72e0.html

^[2] Jacobs, Jeremy P & Northey, Hannah. “Trump creates water ‘subcabinet’ in preelection push.” Greenwire, 14 Oct. 2020. https://link.edgepilot.com/s/aab72285/Z8FLG5oy0EC6EUJjlPOo9Q?u=https://www.eenews.net/stories/1063716221/print

^[3] Sobczyk, Nick. “Dem bill would price carbon, set clean energy standard.” E&E Daily, 14 Oct. 2020. https://link.edgepilot.com/s/b5de8bcb/2DA9nkuMp0ywyi3A-eslgg?u=https://www.eenews.net/eedaily/2020/10/14/stories/1063716157

^[4] Oroschakoff, Kalina. “Brussels announces plans to tackle methane emissions.” Politico Pro, 14 Oct. 2020. https://link.edgepilot.com/s/2d39d75f/lj_goIe_BkOI0h8dI_myQQ?u=https://subscriber.politicopro.com/article/2020/10/brussels-announces-plans-to-tackle-methane-emissions-3984605

^[5] Wolff, Eric. “FERC issues policy allowing markets to account for state CO2 prices.” Politico Pro, 15 Oct. 2020. https://link.edgepilot.com/s/1f4413e6/Gxb7GIpj-06Ht8Xiz8yopQ?u=https://subscriber.politicopro.com/article/2020/10/ferc-issues-policy-allowing-markets-to-account-for-state-co2-prices-3984628

^[6] Guillén, Alex. “EPA proposes curbing interstate pollution for 12 states’ power plants.” Politico Pro, 15 Oct. 2020. https://link.edgepilot.com/s/a9339ae3/tdb0OFjiJUil5nZOn-YWnA?u=https://subscriber.politicopro.com/article/2020/10/epa-proposes-curbing-interstate-pollution-for-12-states-power-plants-2009482