Saturday, May 29, 2010

Rep. Markey Points Out Why BP Spill Flow Rate Is Important-Update

May 27: Following the release of a report on the flow rate of the oil spill by a technical team assembled by the Obama administration [See WIMS 5/27/10], Representative Ed Markey (D-MA) continued to raise questions about BP's potential motivations to low-ball the flow rate and size of the spill, and released new documents showing BP knew the spill could have been much bigger than they claimed. The report, conducted by the National Incident Command's Flow Rate Technical Group, found that the spill was likely between 12,000 and 19,000 barrels a day, far above the 1,000-5,000 barrels a day BP estimated for most of the spill's duration. Markey has engaged with numerous independent scientists on this issue who claimed the spill was much larger than BP's estimates. Some have testified that the spill is in the range of 70,000 to 120,000 barrels per day [See WIMS 5/20/10]. 

    Representative Markey, who chairs the Select Committee on Energy Independence and Global Warming and the Energy and Environment Subcommittee in the Energy and Commerce Committee said, "Now we know what we always knew -- this spill is much larger than BP has claimed. What's clear is that BP has had an interest in low-balling the size of their accident, since every barrel spilled increases how much they could be fined by the government." Yesterday (May 26) Markey pressed this point with Interior Secretary Ken Salazar, citing documents he obtained from BP that showed BP knew as early as a week after the explosion on the Deepwater Horizon rig that the spill could have been much higher than their initial estimate of 1,000 barrels. Markey indicated that Secretary Salazar agreed with him that BP could have a financial interest in underestimating the size of the spill.
 
    Markey pointed out that one document, dated April 27, shows that BP's high estimate for the daily rate of the spill was 14,266 barrels per day, well within the midrange of the new Flow Rate Technical Group report. Yet one day later, BP was asserting to the public that the spill was only 1,000 barrels a day -- their low estimate for the size of the spill. The implications for BP's financial liability are directly tied to the size of the spill. Under current law -- the Clean Water Act as amended by the Oil Pollution Act of 1990, following the Exxon Valdez disaster -- a company that spills oil is subject to fines up to $1,000 per barrel, or up to $3,000 per barrel in the case of gross negligence.

    For BP, the difference between an estimate of 1,000 barrels per day and one of 14,000 barrels a day could really be the difference between $5 to $15 million per day in fines versus $14 to $42 million per day. That means, at the end of yesterday (May 26), the 37th day of the spill, the difference could potentially be between $37 million in fines or $1.5 billion in fines, according to BP's own estimates from the documents. According to the range reached by the technical group, BP could be subject to between $444 million and $2.1 billion in potential fines for the oil spilled thus far. Markey said, "BP has to stop protecting their liability and start dealing with the reality of the size of this spill. Knowing the size of the spill is vital to all facets of this spill, from response to recovery to accountability."
   
 
Update:
 
    The team of scientists and engineers -- the Flow Rate Technical Group (FRTG) -- included Purdue University mechanical engineering professor Steven Wereley, the researcher that testified before Representative Markey's hearing on May 19, that the BP leak was much larger than previously estimated (i.e. at least "an order of magnitude higher"). In a separate May 28, release from Purdue, Wereley an expert in micro- and nanofluidics said, "We feel these numbers are very reliable because this was a highly qualified panel of scientists and engineers from academics, government agencies and national labs."
 
    In the release, Wereley clarifies the differences in his previous estimates and said "the consensus of his Plume Modeling Team is that the leakage at the time of the viewed video clips averaged at least 12,000-25,000 barrels of oil per day, plus considerable natural gas." That figure, he said, "could possibly be significantly larger if the conservative assumptions used to make the estimate were relaxed." On May 19, Wereley testified, based on the limited, preliminary video feed available at the time, that the baseline flow was 95,000 barrels/day with a plus or minus 20% degree of accuracy.
 
    When an initial 30-second video clip of the oil gushing from the 21.5-inch pipe was released by BP on May 12, Wereley deployed a technique called particle image velocimetry (PIV) to create freeze-frame shots of the video. From there, he ran a computer analysis to estimate the number of pixels based on the pipe's size. Wereley, who has co-written a textbook on particle image velocimetry, created a conversion from pixels to inches to compute how fast oil was flowing from the pipe. Using the area of the pipe and the speed of the oil, he concluded that two feet of oil was leaking per second.
 
    From that calculation, Wereley determined that 56,000-84,000 barrels of oil, plus gas, had been leaking daily into the Gulf - a flow that was nearly 10 times higher than other estimates at that time. Wereley said that accounting for decrease in oil volume due to the gas coming out of solution, the flow rates released by the panel of experts Thursday (May 27) align with those he calculated two weeks ago using the first BP video.
 
    Using a longer and clearer video clip of the oil leak for the USGS analysis, Wereley said the figure from his team was reduced to the 12,000-25,000 per-barrel range because of the amount of methane gas and other natural gases consistently gushing out of the pipe. Wereley said, "The initial video that was released by BP was compressed, brief and not of the highest quality," said Wereley, who testified on his initial findings before Congress on May 19. "However, additional video and other important facts were released to the federal interagency Flow Rate Technical Group that allowed a more accurate determination of the oil flow."
    Access a May 27 release from Rep. Markey and link to the referenced BP documents (click here). Access the May 28 release from Purdue University (click here). Access the webcast of the May 19 Wereley testimony and other researchers regarding the magnitude of the spill (click here, See Wereley testimony @ 1hour 23 minutes).

Friday, May 28, 2010

Rep Markey Points Out Why BP Spill Flow Rate Is Important

May 27: Following the release of a report on the flow rate of the oil spill by a technical team assembled by the Obama administration [See WIMS 5/27/10], Representative Ed Markey (D-MA) continued to raise questions about BP's potential motivations to low-ball the flow rate and size of the spill, and released new documents showing BP knew the spill could have been much bigger than they claimed. The report, conducted by the National Incident Command's Flow Rate Technical Group, found that the spill was likely between 12,000 and 19,000 barrels a day, far above the 1,000-5,000 barrels a day BP estimated for most of the spill's duration. Markey has engaged with numerous independent scientists on this issue who claimed the spill was much larger than BP's estimates. Some have testified that the spill is in the range of 70,000 to 120,000 barrels per day [See WIMS 5/20/10]. 

    Representative Markey, who chairs the Select Committee on Energy Independence and Global Warming and the Energy and Environment Subcommittee in the Energy and Commerce Committee said, "Now we know what we always knew -- this spill is much larger than BP has claimed. What's clear is that BP has had an interest in low-balling the size of their accident, since every barrel spilled increases how much they could be fined by the government." Yesterday (May 26) Markey pressed this point with Interior Secretary Ken Salazar, citing documents he obtained from BP that showed BP knew as early as a week after the explosion on the Deepwater Horizon rig that the spill could have been much higher than their initial estimate of 1,000 barrels. Markey indicated that Secretary Salazar agreed with him that BP could have a financial interest in underestimating the size of the spill.
 
    Markey pointed out that one document, dated April 27, shows that BP's high estimate for the daily rate of the spill was 14,266 barrels per day, well within the midrange of the new Flow Rate Technical Group report. Yet one day later, BP was asserting to the public that the spill was only 1,000 barrels a day -- their low estimate for the size of the spill. The implications for BP's financial liability are directly tied to the size of the spill. Under current law -- the Clean Water Act as amended by the Oil Pollution Act of 1990, following the Exxon Valdez disaster -- a company that spills oil is subject to fines up to $1,000 per barrel, or up to $3,000 per barrel in the case of gross negligence.

    For BP, the difference between an estimate of 1,000 barrels per day and one of 14,000 barrels a day could really be the difference between $5 to $15 million per day in fines versus $14 to $42 million per day. That means, at the end of yesterday (May 26), the 37th day of the spill, the difference could potentially be between $37 million in fines or $1.5 billion in fines, according to BP's own estimates from the documents. According to the range reached by the technical group, BP could be subject to between $444 million and $2.1 billion in potential fines for the oil spilled thus far. Markey said, "BP has to stop protecting their liability and start dealing with the reality of the size of this spill. Knowing the size of the spill is vital to all facets of this spill, from response to recovery to accountability."
 
    Access a release from Rep. Markey and link to the referenced BP documents (click here).

Thursday, May 27, 2010

Flow Group Estimates BP Spill At 12,000 - 19,000 Barrels/Day

May 27: USGS Director Dr. Marcia McNutt announced that the National Incident Command's Flow Rate Technical Group (FRTG) has developed an independent, preliminary estimate of the amount of oil flowing from BP's leaking oil well. In making the announcement, Dr. McNutt, who is the chair of the FRTG, established by Admiral Thad Allen, the National Incident Commander, emphasized that since day one, the Administration's deployments of resources and tactics in response to the BP oil spill have been based on a worst-case, catastrophic scenario, and have not been contained by flow rate estimates.

    According to a release, based on three separate methodologies, outlined below, the independent analysis of the FRTG  has determined that the overall best initial estimate for the lower and upper boundaries of flow rates of oil is in the range of 12,000 and 19,000 barrels per day. The FRTG used three separate methodologies to calculate their initial estimate, which they deemed the most scientifically-sound approach, because measurement of the flow of oil is extremely challenging, given the environment, unique nature of the flow, limited visibility, and lack of human access to BP's leaking oil well.

    While the estimate is far more than the previous estimate of 5,000 barrels per day, it is still far short of what other experts have estimated. On May 19, at a hearing held by the House Energy & Commerce Committee, Environment and Energy Subcommittee, Chaired by Representative Ed Markey (D-MA), Steve Wereley from Purdue University said he was confident that the rate is an "order of magnitude" higher than the BP estimate (i.e. the previous 5,000 bbl/d estimate). He testified that he could see no scenario where the BP estimate is accurate. He said his current estimate is in the range of 70,000 to 120,000 barrels per day [See WIMS 5/20/10].

The three methodologies used by the FRTG included a Mass Balance, Plume Modeling and a Riser Insertion Tube Tool (RITT) estimate approach. The Mass Balance Team analyzed how much oil is on the surface of the Gulf of Mexico and estimated a spill rate in the range of 12,000 to 19,000 barrels of oil per day. The Plume Modeling Team used video observations of the oil/gas mixture escaping from the kinks in the riser and at the end of the riser pipe alongside advanced image analysis to estimate fluid velocity and flow volume. Based on advanced image analysis and video observations the Team estimated a range of 12,000 to 25,000 barrels of oil per day.

    The final estimate was calculated based on the amount of oil collected by the RITT, plus the estimate of how much oil is escaping the RITT, and how much oil is leaking from the kink in the riser. At one point, the RITT logged oil collection at a rate of 8,000 barrels of oil per day, as measured by a meter whose calibration was verified by a third-party. The team estimated that at least 10% of the flow was not being captured by the riser at the time oil collection was logged, increasing the estimate of total flow to 8,800 barrels of oil per day. Factoring in the flow from the kink in the riser, the RITTI Team calculated that the lower bound estimate of the total oil flow is at least 11,000 barrels of oil per day, depending on whether the flow through the kink is primarily gas or oil.

 The release indicates that the preliminary estimates provided by the FRTG are based on new methodologies being employed to understand a highly dynamic and complex situation. "As the FRTG collects more data and improves their scientific modeling in the coming days and weeks ahead, they will continue to refine and update their range of oil flow rate estimates, as appropriate. The FRTG is working diligently to ensure all estimates are peer reviewed by independent experts and academics as expeditiously as possible. They will also establish a website to ensure this information is available and reported to the public in a timely fashion."

    In the meantime BP reported that the "top kill" operation continued over the night and are ongoing. Although there were rumors of positive results throughout the day, BP said, "There are no significant events to report at this time" and indicated they will provide updates on progress as appropriate. The President held a press conference and announced 6 month moratorium on deepwater drilling and new safety measures for offshore oil and gas drilling. Further details are being release later today.

    Additionally, the head of the Minerals Management Service (MMS), Elizabeth Birnbaum reportedly resigned under pressure. Although the President said he did not know whether she resigned or was fired, the Washington Post reported she was given the opportunity to work elsewhere in the government but resigned instead. The President also said that the Federal government and he "were fully engaged" on the issue and that he was in charge. The President is scheduled to make a trip to the Gulf Coast tomorrow.
 
    At the press conference the President said the "notion that somehow the federal government is sitting on the sidelines and for the three or four or five weeks we've just been letting BP make a whole bunch of decisions is simply not true. . . There has never been a point during this crisis in which this administration, up and down up the line, in all these agencies, hasn't, number one, understood this was my top priority -- getting this stopped and then mitigating the damage; and number two, understanding that if BP wasn't doing what our best options were, we were fully empowered and instruct them, to tell them to do something different. And so if you take a look at what's transpired over the last four to five weeks, there may be areas where there have been disagreements, for example, on dispersants, and these are complicated issues. But overall, the decisions that have been made have been reflective of the best science that we've got, the best expert opinion that we have, and have been weighing various risks and various options to allocate our resources in such a way that we can get this fixed as quickly as possible. . ."

    Access a release on the latest results of the FRTG with additional details (click here). Access the President's remarks at the press conference (click here). Access the Unified Command website for complete updates (click here). Access the BP response website for complete details on their response efforts (click here). Access the White House website on the BP spill which contains links to all Federal agency response websites (click here).

Wednesday, May 26, 2010

Update: BP Options To Stop The Flow Of Oil In The Gulf

May 25: BP provided an update on developments in the response to the MC252 oil well incident in the Gulf of Mexico saying subsea efforts continue to focus on progressing options to stop the flow of oil from the well through interventions via the MC252 blow out preventer (BOP) and to collect the flow of oil from the leak points. The efforts are being carried out in conjunction with industry experts and governmental authorities. Plans have been developed for a series of interventions via the BOP; it is currently anticipated these may be carried out over a period of about a week, commencing in the next few days. These interventions have not been carried out at these depths and conditions before and the success of individual options cannot be assured.

    The first planned intervention is the so-called "top kill" operation which began a 2 PM today (May 26). Heavy drilling fluids would be injected into the well to stem the flow of oil and gas and, ultimately, kill the well. Most of the equipment is on site and preparations for this operation continue, with a view to deployment within a few days. If necessary, equipment is also in place to combine this operation with the injection under pressure of bridging material to seal off upward flow through the BOP.
 
    BP said sophisticated diagnostic work using remotely-operated vehicles (ROVs) will precede the "top kill" to allow the procedure to be planned in detail. The knowledge from this diagnostic work will be instrumental in determining whether to proceed with this option. BP said should it be necessary, plans and equipment are in place to combine the top kill process with the injection under pressure of bridging material into the BOP to prevent or limit upward flow through the BOP.

    BP indicated it will continue to provide a live video feed from the seabed through the diagnostic testing and top kill, if undertaken. They said, "Throughout the diagnostic process and top kill procedure very significant changes in the appearance of the flows at the seabed will be expected. These will not provide a reliable indicator of the overall progress, or success or failure, of the top kill operation as a whole."
 
    Being progressed in parallel with plans for the top kill is development of a lower marine riser package (or LMRP) cap containment option. This would first involve removing the damaged riser from the top of the BOP, leaving a cleanly-cut pipe at the top of the BOP's LMRP. The LMRP cap, an engineered containment device with a sealing grommet, would be connected to a riser from the Discoverer Enterprise drillship and then placed over the LMRP with the intention of capturing most of the oil and gas flowing from the well and transporting it to the drillship on the surface. The LMRP cap is already on site and it is anticipated that this option will be available for deployment by the end of May. BP indicated that additional options also continue to be progressed, including the option of lowering a second blow-out preventer, or a valve, on top of the MC 252 BOP.
 
    In the meantime, the latest update from the Unified Command indicates that thousands of response personnel continue working to protect the shoreline and minimize the environmental impact of the oil spill. More than 16,000 response personnel, 12,000 volunteers, 1,200 vessels and 60 aircraft are working to clean oil along the Gulf Coast. Additional response personnel and equipment are being pre-positioned in areas where modeling and aerial surveillance indicate a greater potential for shoreline impact.

    Shoreline Cleanup and Assessment Teams, along with teams using booms, are already deployed along potentially affected shorelines. More than three million feet of boom is in place and crews are rapidly removing oil from the shoreline with shovels and rakes. Shoreline Cleanup and Assessment Team personnel are overseeing and evaluating response efforts to ensure the oil is removed with the most environmentally responsible methods. Skimming vessels have recovered more than 260,000 barrels of oily water mixture. Additional strategies include the application of dispersant and controlled burn operations to stop oil offshore. On Monday (May 24), crews conducted 14 controlled burns for nearly 12 hours bringing the response total to 53 burns and 62,000 barrels of oil removed.

    Access a release from BP (click here); and (click here). Access the BP response website for complete details on their response efforts (click here). Access the Unified Command website for complete updates (click here). Access the White House website on the BP spill which contains links to all Federal agency response websites (click here). Access the BP live video feed (click here).

Tuesday, May 25, 2010

Senate Hearing On Oil Spill Liability & Financial Responsibility

May 25: The Senate Energy & Natural Resources Committee, Chaired by Senator Jeff Bingaman (D-NM), with Ranking Member Lisa Murkowski (R-AK) held a hearing to received testimony on the liability and financial responsibility issues related to offshore oil production [See WIMS 5/14/10], including the Deepwater Horizon accident in the Gulf of Mexico, including S. 3346, a bill to increase the civil and criminal penalties on liability under the Outer Continental Shelf Lands Act. Witnesses included: Senator Sheldon Whitehouse (D-RI) and sponsor of S. 3346; Associate Attorney General, U.S Department of Justice; Director, National Pollution Funds Center, United States Coast Guard; Deputy Secretary, the U.S. Department of Interior; along with three representatives from the Congressional Research Service.
 
    Chairman Bingaman outlined the existing situation in his opening statement and indicated, "There is urgency in our effort.  We need to ensure that those harmed by this accident are fully compensated, and that a system is in place that properly allocates these risks and losses. Based on what I've learned so far, I believe that we have a system in dire need of repair.  Current law caps the responsible parties' damages – other than clean up costs – at $75 million, nowhere near the damages which will result from this accident. 
 
    "Equally troubling, the law requires the Secretary of Interior to adjust the amount of these caps at least every three years to reflect significant increases in the Consumer Price Index.  Yet the limits on damages for offshore facilities have not been increased since the law was passed in 1990 -- 20 years of inflation have been ignored. Victims of this disaster will surely wonder why there should be any cap on damages, and why those responsible should not simply be required to pay the full amount of the harm they cause. BP has stated that it will pay all legitimate claims, and that it will not insist on the $75 million cap currently in the law.  Even accepting that as true, we still have a broken system in need of repair.
 
    "The Oil Spill Liability Trust Fund, financed mostly by a tax on oil, is intended to cover higher levels of damages, and to spread the risk of excess damages among the industry as a whole.  Yet it is limited to paying $1 billion per incident.  Congress over the years has been inconsistent in enacting taxes to fund this effort, and the taxes that support it are scheduled to expire in 2017.   So, we obviously need to look at this as well. The law also requires that operators in the offshore environment demonstrate certain levels of financial responsibility, to ensure that they can cover the losses that they may cause.    However, for facilities like the Deepwater Horizon, the maximum amount required is $150 million, and the standard requirement is only $35 million.  This amount has not been increased in decades.  We obviously need to fix this.
 
    "Finally, there are civil and criminal penalties available to the Secretary to punish those who violate safety and other legal requirements.  These are intended to be a deterrent to playing fast and loose with the rules and creating safety risks.  But the civil penalties were set in 1990 at $20,000/day and have been raised only to $35,000 a day.  They remain at that level.  Here too, the law requires the Secretary to adjust these penalties every three years to reflect increases in the Consumer Price Index.  That has been done only sporadically."
 
    In her opening statement Senator Murkowski said, "When it comes to liability issues associated with a major oil spill, I don't believe any other state represented on this committee has more experience than my home state of Alaska. The recovery from the Exxon Valdez oil spill has been long and sad, and it took 20 years for litigation over punitive damages to be resolved. That in and of itself was a tragedy we can't let happen again. I wanted our committee to hold this hearing because there has been considerable debate -- along with major misunderstandings -- about liability for the Deepwater Horizon spill and what parts of that liability are or are not limited. Among the most often repeated mischaracterizations is the idea that BP is only responsible for $75 million of the likely billions in total spill costs."
 
    She said, "The reality is that the $75 million figure is drawn from just one provision on strict liability in the Oil Pollution Act, and has nothing to do with the expressly unlimited liability provided for cleanup costs. Even more important, it has nothing to do with the law's authorization for unlimited damages allowed under various state laws." Murkowski recently blocked a Senate consideration to raise the limit to $10 billion; but, she said she supports raising the liability limit, "but cautioned that we need to do so in a manner that makes sense or it will have long-lasting unintended consequences. We must and we will hold BP fully accountable for this tragedy. We also must consider the cumulative effect of the different levels of liability, which could be economically devastating. Thousands of jobs, particularly along the Gulf coast, could be lost, our nation's energy security could be weakened, without providing any additional protection."
 
    Thomas Perrelli, Esq., Associate Attorney General, U.S Department of Justice said the Administration's proposal would do two things: "First, it would raise the potential cap on damages for responsible parties beyond the current limits. Second, it would increase the amount in the Oil Spill Liability Trust Fund by increasing the tax on industry through which the Fund is financed and would increase the amount the Fund could pay for cleanup and damages related to any given incident." He said the Administration supports "a significant increase in liability for offshore oil and gas developers whose actions pollute our oceans and coastlines and threaten our wildlife and other natural resources." He outlined a number of factors to consider in increasing the liability caps.
 
    Access the hearing website for link to all testimony and a webcast (click here). Access a statement from Chairman Bingaman (click here). Access a statement from Ranking Member Murkowski (click here). Access legislative details for S. 3305 (click here). Access legislative details for S. 3346 (click here). Access legislative details for S. 3375 (click here).

Monday, May 24, 2010

BP Gulf Oil Spill: Commission; Dispersants; Flow Rate; Actions

May 21: In his weekly radio address, President Obama announced that he had signed an executive order on May 21, establishing a bipartisan National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling. He also announced that the Commission will be led by co-chairs including former two-term Florida Governor and former Senator Bob Graham and former Administrator of U.S. EPA William Reilly. The Commission and executive order have been in the making for the last week [See WIMS 5/18/10].

    The bipartisan National Commission is tasked with providing recommendations on how to prevent and mitigate the impact of any future spills that may result from offshore drilling. A White House release indicates that: (1) The commission will be focused on the necessary environmental and safety precautions that must build into the regulatory framework in order to ensure an accident like this never happens again, taking into account the other investigations concerning the causes of the spill. (2) The commission will have bipartisan co-chairs with a total membership of seven people. Membership will include broad and diverse representation of individuals with relevant expertise. No sitting government employees or elected officials will sit on the commission. (3) The Commission's work will be transparent and subject to the Federal Advisory Committee Act. The Commission will issue a report within six months.

    In his weekly address the President said, ". . . we are drawing on America's best minds and using the world's best technology to stop the leak. We've deployed over 1,100 vessels, about 24,000 personnel, and more than 2 million total feet of boom to help contain it. And we're doing all we can to assist struggling fishermen, and the small businesses and communities that depend on them. Folks on the Gulf Coast -- and across America -- are rightly demanding swift action to clean up BP's mess and end this ordeal. But they're also demanding to know how this happened in the first place, and how we can make sure it never happens again. . .
 
    ". . .even as we continue to hold BP accountable, we also need to hold Washington accountable. . . If the laws on our books are inadequate to prevent such an oil spill, or if we didn't enforce those laws – I want to know it.  I want to know what worked and what didn't work in our response to the disaster, and where oversight of the oil and gas industry broke down. We know, for example, that a cozy relationship between oil and gas companies and agencies that regulate them has long been a source of concern. . . If the laws on our books are inadequate to prevent such an oil spill, or if we didn't enforce those laws -- I want to know it. I want to know what worked and what didn't work in our response to the disaster, and where oversight of the oil and gas industry broke down. We know, for example, that a cozy relationship between oil and gas companies and agencies that regulate them has long been a source of concern."
 
    He concluded, "One of the reasons I ran for President was to put America on the path to energy independence, and I have not wavered from that commitment. To achieve that goal, we must pursue clean energy and energy efficiency, and we've taken significant steps to do so. And we must also pursue domestic sources of oil and gas. Because it represents 30 percent of our oil production, the Gulf of Mexico can play an important part in securing our energy future. But we can only pursue offshore oil drilling if we have assurances that a disaster like the BP oil spill will not happen again. This Commission will, I hope, help provide those assurances so we can continue to seek a secure energy future for the United States of America."   
 
    In the meantime as environmental impacts in the Gulf Coast worsen and frustration grows the Administration announced that a number of actions today (May 24). U.S. EPA Administrator Lisa Jackson, joined by Council on Environmental Quality (CEQ) Chair Nancy Sutley, returned to the Gulf Coast to monitor EPA's on-the-ground response to the BP oil spill and speak with residents about efforts to mitigate the spill's impact on the region. The visit includes a tour on a Trace Atmospheric Gas Analyzer (TAGA), a self-contained mobile laboratory being used by EPA to sample and analyze outdoor air quality in the gulf. Administrator Jackson and Chair Sutley will also tour oil impacted wetlands by boat in Venice.
 
    Also, Energy Secretary Steven Chu postponed a trip to China, scheduled for this week, at the request of President Obama to continue his work on response efforts to the BP oil spill. Chu is traveling to Houston to continue engagement on strategies to stop the oil spill. Chu said, "Finding a solution to this crisis is a matter of national importance. I want to continue to play a role in assisting in the efforts and stopping this leak as soon as possible." Chu has been working with DOE's National Laboratories and other top scientists to help BP determine how to stop the leak, and exploring ideas about the most effective scientific and engineering approaches to the problem.
 
    At the direction of the President, Secretary of the Interior Ken Salazar and Secretary of Homeland Security Janet Napolitano are in Louisiana to inspect the ongoing response to the BP oil spill and were accompanied by a bipartisan Senate delegation. Secretary Salazar, Secretary Napolitano and the Senate delegation will conduct a flyover of the affected areas; discuss the latest response efforts in Louisiana and along the Gulf Coast with federal officials leading the effort as well as BP representatives; and meet with Governor Bobby Jindal and local community and industry leaders. The Senate delegation accompanying Secretary Salazar and Secretary Napolitano will include: Senator Dick Durbin (D-IL), Senator Jeff Bingaman (D-NM), Senator Lisa Murkowski (R-AK), Senator Sheldon Whitehouse (D-RI), Senator Mary Landrieu (D-LA), and Senator David Vitter (R-LA).
 
    Additionally, with growing concerns and controversy over the rate of the leak of the oil spill [See WIMS 5/20/10], the National Incident Command has established a Flow Rate Technical Group (FRTG) designed to support the response and inform the public by providing scientifically validated information about the amount of oil flowing from BP's leaking oil well. According to a fact sheet, the Administration-wide "response efforts have always been geared toward the possibility of a catastrophic event, and our deployment of resources and our tactics have been based on such a worst case scenario not an inexact number." However, "That said, the FRTG reflects the federal government's clear understanding of the long-term value of determining an oil flow rate, both in regards to the continued response and long-term recovery, as well as the important role this information may play in the final investigation of the failure of the blowout preventer and the resulting spill."
 
    The fact sheet indicates that the FRTG expects to have an "initial flow assessment" completed soon. The reports will be posted on the Unified Command website. Flow rate estimates produced by the group will include the sources of data used, a description of data quality, any assumptions made, and the names of models used. BP and government officials have continually said the best estimate of the flow rate of the spill is 5,000 barrels per day [See WIMS 5/19/10], however, a researcher from Purdue University said he is confident that the rate is an "order of magnitude" higher than the BP estimate and is likely in the range of 70,000 to 120,000 barrels per day.
 
    On May 20, EPA issued a directive requiring BP to identify and use a less toxic and more effective dispersant from the list of EPA authorized dispersants. On May 22, EPA released BP's 13-page response to the directive on dispersants. BP's response indicated that "given the above criteria [outlined by EPA], BP continues to believe the Corexit EC9500A is the best alternative."
EPA said that after receiving the response late Thursday night, the Agency immediately called a meeting with BP to discuss the issue on Friday, May 21 and said it would continue to work over the next 48 hours to ensure BP is complying with the directive.
 
    On May 24, BP said that subsea efforts continue to focus on progressing options to stop the flow of oil from the well through interventions via the blow out preventer (BOP) and to collect the flow of oil from the leak points. Plans continue to develop a so called "top kill" operation where heavy drilling fluids are injected into the well to stem the flow of oil and gas and ultimately kill the well. Successfully killing the well may be followed by cement to seal the well. Most of the equipment is on site and preparations continue for this operation, with a view to deployment in a few days. BP also announced a commitment of up to $500 million to an open research program studying the impact of the Deepwater Horizon incident, and its associated response, on the marine and shoreline environment of the Gulf of Mexico.
 
    Access a release from the White House on the Commission including the text of the President's address and background on the cochairs (click here). Access the Commission Executive Order (click here). Access the Unified Command website for complete updates (click here). Access the fact sheet on the FRTG (click here). Access EPA's Dispersant issue website for complete details on and documents (click here). Access the BP response website for complete details on their response efforts (click here). Access the Rep. Markey Global Warming website for the live video feed which (click here).

Thursday, May 20, 2010

Researcher Says BP Spill Is 70,000 - 120,000 Barrels/Day

May 19: The House Energy & Commerce Committee, Environment and Energy Subcommittee, Chaired by Representative Ed Markey (D-MA) held a hearing entitled, Sizing up the BP Oil Spill: Science and Engineering Measuring Methods. Witnesses testifying before the Subcommittee included: Steve Wereley, Associate Professor of Mechanical Engineering, Purdue University; Richard Camilli, Associate Scientist, Applied Ocean Physics and Engineering, Woods Hole Oceanographic Institution; Michael Freilich, Director of the Earth Science Division, NASA; and Frank Muller-Karger, Professor of Biological Oceanography and Remote Sensing, University of South Florida.
    Prior to the hearing Chairman Markey had sent a letter to BP America's CEO Lamar McKay asking that the company make a live stream of video from the oil leak site publicly available to give unfettered access of the accident and recovery to scientists and the American public. Markey said BP currently has several remotely controlled submersibles taking video of the accident site 24 hours a day, but has only released a fraction of the video. Markey also sent a letter to Admiral Thad Allen of the Coast Guard on the matter.

    Markey said in the letter, "Allowing the public to view this video could provide our best scientists and engineers with information that could be helpful in developing much needed solutions to the ongoing oil spill, both in terms of subsea operations and surface spill response. Congress and the American public have the right to know what is happening in real time, so that they can understand and react to the situation as it develops."

    While BP and government officials continue to claim that the best estimate of the flow rate of the Gulf oil spill is 5,000 barrels per day [See WIMS 5/19/10], Steve Wereley from Purdue University said he is confident that the rate is an "order of magnitude" higher than the BP estimate. He said, he can see no scenario where the BP estimate is accurate. He said his current estimate is in the range of 70,000 to 120,000 barrels per day. Also, while BP and government officials have also testified that they are not that concerned about the rate of the leak because they are already responding to a "worst case" situation; the research experts seem to all dispute that position and agreed that the flow rate of the leak would be important to know. Other witnesses testified on satellite mapping of the oil spill and the dynamics of the "loop current," as well as concerns about contamination under the surface and a water column of contamination that may exist.

    On May 20, BP reported the volume of oil and gas being collected by the riser insertion tube tool (RITT) containment system at the end of the leaking riser is estimated to be about 3,000 barrels a day (b/d) of oil and some 14 million standard cubic feet a day of gas. The oil is being stored and gas is being flared on the drillship Discoverer Enterprise. BP said this remains a new technology and both its continued operation and its effectiveness in capturing the oil and gas remain uncertain. BP also said it continues to develop options to shut off the flow of oil from the well through interventions via the failed Blowout Preventer (BOP).

    Access the hearing website and link to all testimony and a webcast (click here). Access a release from Chairman Markey before and after the hearing (click here) and (click here). Access the Markey letter to BP and the Coast Guard (click here) and (click here). Access Markey's Global Warming website for the live video feed which (click here). Access a release from BP (click here). Access the BP response website (click here). Access the Unified Command website for the latest updates (click here). [*Energy/Oil, *Water, *Wildlife]

Wednesday, May 19, 2010

House T&I Hearing On BP Gulf Spill & Latest Updates

May 19: The House Committee on Transportation and Infrastructure, Chaired by Representative James Oberstar (D-MN) held an all-day hearing to examine the circumstances surrounding the ongoing spill of crude oil from the Deepwater Horizon, including potential environmental effects, ongoing response actions, long-term cleanup challenges, and potential natural resource damages. Among other issues, the Committee examined the regulatory framework governing the safety functions of mobile offshore drilling units, the preparations made by the owners and operators of MODUs to respond to potential oil spills, and the liability responsibilities incurred by the owners and operators in the event of an oil spill. The Committee also looked at the Coast Guard's work with the Mineral Management Service and other federal agencies to implement regulations governing the management of offshore oil production facilities, as well as federal oversight and management of the ongoing oil recovery and cleanup actions of the responsible parties.

    Witnesses testifying at the hearing included: BP President Lamar McKay; Transocean Ltd. President Steven Newman; EPA Administrator Lisa Jackson; Dr. Jane Lubchenco, NOAA Administrator; S. Elizabeth Birnbaum, Director of Minerals Management Service; as well as representatives from the U.S. Coast Guard; National Geographic Society; National Wildlife Federation; Gerica Seafood of New Orleans; University of Maryland Center for Environmental Science; and the Coastal Response Research Center University of New Hampshire.

    Representative Oberstar said, "The magnitude of the Deepwater Horizon oil spill is unknown, but it appears to be a massive environmental disaster that is causing serious damage to the U.S. economy and the natural resources of the Gulf Coast region. Because this oil spill could jeopardize the livelihoods and environment of thousands of Americans who live in the region, we must closely examine what caused the disaster, the effectiveness of response of the companies responsible for the spill and the Federal government, and what steps must be taken to avoid a similar catastrophe in the future. This hearing will be a comprehensive, in-depth examination of the circumstances surrounding this oil spill, and we will hear testimony from representatives of the Federal government, industry executives, the scientific community, fishermen, and nongovernmental stakeholders."

    Oberstar continued saying, "In recent years, the T&I Committee has found several examples of an inappropriate coziness between industry and the entity that bears the responsibility of regulating that industry. The MMS has long been criticized of being too cozy with the oil drilling industry, and evidence is emerging that indicates MMS was aware of the potential failures of blowout preventers. Because the spill occurred in coastal waters, the Coast Guard is serving as the federal On-Scene Coordinator and is responsible for overseeing clean up efforts. We will examine how well MMS and the Coast Guard are addressing their joint responsibilities for oil discharge planning, preparedness, and response for offshore oil and gas."

    In other Gulf Oil developments, President Obama expressed his disappointment in the failure of the Senate to pass legislation to raise the liability limits for oil spills. The President said, "I am disappointed that an effort to ensure that oil companies pay fully for disasters they cause has stalled in the United States Senate on a partisan basis. This maneuver threatens to leave taxpayers, rather than the oil companies, on the hook for future disasters like the BP oil spill. I urge the Senate Republicans to stop playing special interest politics and join in a bipartisan effort to protect taxpayers and demand accountability from the oil companies." [See WIMS 5/14/10]. In its testimony before the T&I Committee, BP testified that it would not be using the Oil Liability Trust Fund and would pay all legitimate claims and would not in any way limit it liability to $75 million.

    Also, the American Petroleum Institute (API) President and CEO Jack Gerard issued a statement of support for President Obama's decision to form a presidential commission to investigate the Gulf oil spill [See WIMS 5/18/10]. "We support the president's decision to set up an independent commission to investigate the Gulf oil spill. Finding out what exactly happened in the tragic Deepwater Horizon blowout and spill is of paramount importance. While many Americans are understandably concerned about safety and the environmental risk associated with offshore drilling, we hope policymakers use the valuable independent insights that will result from the commission's work to inform the legislative and regulatory process to ensure that decisions made do not have the unintended consequence of reducing domestic energy supplies, weakening our energy security and costing some of the 9.2 million American jobs supported by the U.S. oil and natural gas industry." [Note: The President is expected to officially call for the independent commission soon].

    Access a release from the T&I Committee (click here). Access the hearing website and link to all testimony, a summary of the subject matter and a webcast (click here). Access an AP report on the hearing and latest events (click here). Access a statement from the President (click here). Access the API statement (click here). Access the White House website on the BP spill which contains links to all Federal agency response websites (click here). Access the BP response website (click here). Access the Unified Command website for the latest updates (click here).

Tuesday, May 18, 2010

Presidential Commission & Congressional Hearings On BP Oil Spill

May 17: Various media reports including the New York Times and Associated Press indicate that President Obama will establish by Executive Order, within the next two days, an independent commission to investigate the BP Gulf oil spill and the governments role in the matter. On May 4, Daniel Weiss, of the Center for American Progress (CAP's) Director of Climate Strategy, wrote, "We need an independent commission to investigate the BP disaster." Now CAP reports on its Climate Progress blog that the White House is doing just that. CAP indicated that the White House indicated that the President's action will occur on Tuesday or Wednesday.
 
    Representative Ed Markey (D-MA) issued a release saying the President's action would Follow legislation introduced by him and Representative Lois Capps (D-CA), calling for the President to appoint an independent commission to look into the BP oil spill in the Gulf of Mexico and make recommendations to avoid such disasters in the future. Markey said, "Whether it's a nuclear meltdown at Three Mile Island or an oil blowout one mile deep, appointing an independent review panel is critical to reduce the risks of future accidents. Following the Three Mile Island nuclear meltdown, President Carter appointed an independent panel to investigate the cause of the meltdown and recommend safety improvements. President Obama creating an independent blue-ribbon panel on this oil spill will help provide the recommendations to ensure that similar disasters do not happen again." Markey and Capps introduced the BP Deepwater Horizon Disaster Inquiry Commission Act of 2010 (H.R. 5241) on May 6, 2010. Senators Sheldon Whitehouse (D-RI), with cosponsors Barbara Boxer (D-CA), and Robert Menendez (D-NJ), has introduced a companion proposal, S. 3344.
 
    Frances Beinecke, President of the Natural Resources Defense Council (NRDC) issued a statement saying, "The magnitude of the Gulf oil drilling disaster demands an equally sizable response by the White House. The establishment of a presidential commission to investigate this disaster, as was done following the Three Mile Island and Challenger disasters, is a critical step to providing an independent, unbiased assessment of what happened and how such disasters can be averted in the future. To be effective, the commission should be charged with examining the causes of the current spill as well as the adequacy of oil spill containment and clean-up measures. We also need the commission to determine whether and how such spills can be avoided in the future. And it needs to assess the implications of its findings for drilling in, or adjacent to sensitive or ecologically important areas, including in the Arctic. Finally, the commission should be called on to make recommendations on how to strengthen laws, regulations and reform agency oversight in order to keep this from happening again."
 
    Today (May 18), three Senate Committees -- Energy and Natural Resources (ENR); Commerce, Science, and Transportation (CST); and Environment and Public Works (EPW) -- are all holding hearings to examine the BP oil spill. The ENR hearing will feature testimony from Ken Salazar, Secretary, U.S. Department of the Interior. The CST hearing features the heads of the Coast Guard and NOAA, along with the heads of BP, Transocean and a principal with Applied Science Associates, Inc. The EPW hearing includes the representatives from EPA, DOI CEQ, Army Corps, Coast Guard and the Economic Development Administration.
 
    In addition to the Congressional hearings, Representative Markey also queried the U.S. EPA on May 17, on the dangers of applying oil-dispersing chemicals deep underwater as an effort to mitigate the Gulf of Mexico oil spill. In the letter sent to EPA Administrator Lisa Jackson, Markey raises questions about the potential toxicity of the trademarked formulation, called Corexit, and whether the chemical could be contributing to new reports of large undersea "plumes" of oil suspended thousands of feet below the water's surface. Markey said, "The release of hundreds of thousands of gallons of chemicals into the Gulf of Mexico could be an unprecedented, large and aggressive experiment on our oceans. The information regarding the chemical composition, efficacy and toxicity of the dispersants currently being used is scarce."
 
    In a release the same day, EPA and the Coast Guard announced they had authorized BP to use dispersants underwater, at the source of the Deepwater Horizon leak. The agencies said, "Dispersants are generally less harmful than the highly toxic oil leaking from the source and they biodegrade in a much shorter time span. The use of the dispersant at the source of the leak represents a novel approach to addressing the significant environmental threat posed by the spill." [See WIMS 5/17/10].
 
    Access a release from CAP's Climate Progress with links to related information (click here). Access a release from Representative Markey (click here). Access a release from Senator Whitehouse (click here). Access a release from NRDC (click here). Access the ENR hearing website for links to testimony and a webcast (click here). Access the CST hearing website for links to testimony and a webcast (click here). Access the EPW hearing website for links to testimony and a webcast (click here). Access a release from Rep. Markey and link to the letter to EPA (click here). Access the White House website on the BP spill which contains links to all Federal agency response websites (click here). Access the BP response website (click here).

Monday, May 17, 2010

BP Intercepts Some Flow; Disastrous Gulf Oil Spill Continues

BP Intercepts Some Flow; Disastrous Gulf Oil Spill Continues - May 17: In a release and additional information, BP provided an update on developments in the response to the MC252 oil well incident in the Gulf of Mexico. BP indicates that subsea efforts continue to focus on progressing options to stop the flow of oil from the well through interventions via the blow out preventer (BOP), and to collect the flow of oil from the leak points. The efforts are being carried out in conjunction with governmental authorities and other industry experts.

    The riser insertion tube tool (RITT) containment system was put into place in the end of the leaking riser on May 16. Operations began during the day to allow oil and gas to flow through the tool up to the drillship Discoverer Enterprise on the surface 5,000 feet above. Produced oil, estimated currently at 1,000 barrels per day, is being stored on the drillship while produced gas is being flared. It is expected that it will take some time to increase the flow through the system and maximize the proportion of oil and gas flowing through the broken riser that will be captured and transported to the drillship. It should be noted that, BP and government agencies are still using the figure of 5,000 barrels per day as the rate of the leak; however, other reputable sources are estimating far more (i.e. between 20,000 to 100,000 barrels per day).

    The RITT is a fabricated from 4-inch diameter pipe, fashioned to allow one end to be inserted into the broken riser pipe that is the source of the main oil flow from the MC252 well, and the other to be connected to a drill pipe and riser from the Discoverer Enterprise. The RITT allows the injection of methanol to mitigate against the formation of gas hydrates.
This remains a new technology and both its continued operation and its effectiveness in capturing the oil and gas remains uncertain. Other containment options continue to be progressed.

    BP indicates it also continues to develop options to shut off the flow of oil from the well through interventions via the well's failed BOP. Plans continue to be developed for a so called "top kill" operation where heavy drilling fluids are injected into the well to stem the flow of oil and gas, followed by cement to seal the well. Options have also been developed to potentially combine this with so-called "junk shot", the injection under pressure of a variety of materials into the BOP to seal off upward flow. Plans for deployment of these options are being progressed with the possibility of deployment in the next week or so. Work on the first relief well, which began on May 2, continues. The DDII drilling rig began drilling the second relief well on May 16. Each of these wells is estimated to take some three months to complete from the commencement of drilling.
 
    BP reports that surface response work continues to collect and disperse oil that has reached the surface of the sea. Over 650 vessels are involved in the response effort, including skimmers, tugs, barges and recovery vessels. Intensive operations to skim oil from the surface of the water have now recovered, in total, some 151,000 barrels (6.3 million gallons) of oily liquid. The total length of boom deployed as part of efforts to prevent oil reaching the coast is now almost 1.7 million feet, including over 400,000 feet of sorbent boom. In total over 19,000 personnel from BP, other companies and government agencies are currently involved in the response to the incident. BP said that so far 15,000 claims have been filed and 2,600 have already been paid. BP has also received almost 60,000 calls into its help lines.
 
    Meanwhile concerns have been raised about reports of a large subsurface mass of oil. NOAA Administrator Jane Lubchenco issued a statement on the ongoing efforts to monitor subsea impacts of the BP Oil Spill and said, "Media reports related to the research work conducted aboard the R/V Pelican included information that was misleading, premature and, in some cases, inaccurate. Yesterday the independent scientists clarified three important points: (1) No definitive conclusions have been reached by this research team about the composition of the undersea layers they discovered. Characterization of these layers will require analysis of samples and calibration of key instruments. The hypothesis that the layers consist of oil remains to be verified.

    "(2) While oxygen levels detected in the layers were somewhat below normal, they are not low enough to be a source of concern at this time. (3) Although their initial interest in searching for subsurface oil was motivated by consideration of subsurface use of dispersants, there is no information to connect use of dispersants to the subsurface layers they discovered. NOAA thanks the Pelican scientists and crew for repurposing their previously scheduled mission to gather information about possible impacts of the BP oil spill. We eagerly await results from their analyses and share with them the goal of disseminating accurate information. 

    "NOAA continues to work closely with EPA and the federal response team to monitor the presence of oil and the use of surface and sub-surface dispersants. As we have emphasized, dispersants are not a silver bullet. They are used to move us towards the lesser of two environmental outcomes. Until the flow of oil is stemmed, we must take every responsible action to reduce the impact of the oil."

    This afternoon (May 17), Janet Napolitano, U.S. Department of Homeland Security; Rear Admiral Peter Neffenger, Deputy National Incident Commander, U.S. Coast Guard; and Lamar McKay, Chairman and President of BP America, Inc. testified before the Senate Committee on Homeland Security and Governmental Affairs, chaired by Senator Joe Lieberman (I-CT) with Ranking Member Susan Collins (R-ME). 

    Also today, U.S. EPA and the U.S. Coast Guard announced they have authorized BP to use dispersants underwater, at the source of the Deepwater Horizon leak. The agencies said oil spill dispersants are chemicals that attempt to break down the oil into small drops and prevent it from reaching the surface or the U.S. shoreline. The agencies said, "Dispersants are generally less harmful than the highly toxic oil leaking from the source and they biodegrade in a much shorter time span. The use of the dispersant at the source of the leak represents a novel approach to addressing the significant environmental threat posed by the spill. Preliminary testing results indicate that subsea use of the dispersant is effective at reducing the amount of oil from reaching the surface – and can do so with the use of less dispersant than is needed when the oil does reach the surface. This is an important step to reduce the potential for damage from oil reaching fragile wetlands and coastal areas."

    Access the latest BP update release (click here). Access a fact sheet on the RITT (click here). Access the statement from the NOAA Administrator (click here). Access the Committee on Homeland Security website for links to all testimony and a webcast (click here). Access a release from EPA & the Coast Guard with links to additional information (click here). Access the joint command website for continuous updates, briefings, photos and more (click here). Access 40 high resolution Reuters photos that capture the Gulf disaster (click here).

Friday, May 14, 2010

EPA Finalizes "Tailoring Rule" For Major Source GHG Permitting

May 13: The U.S. EPA announced a final rule to address greenhouse gas (GHG) emissions from the largest stationary sources, but, they said it would shield "millions of small sources of GHGs from Clean Air Act permitting requirements." The controversial, phased-in, rule, which EPA called a "common-sense approach," will address facilities like power plants and oil refineries that are responsible for 70 percent of the greenhouse gases from stationary sources that threaten American's health and welfare [See WIMS 10/1/09].

    EPA Administrator Lisa Jackson said, "After extensive study, debate and hundreds of thousands of public comments, EPA has set common-sense thresholds for greenhouse gases that will spark clean technology innovation and protect small businesses and farms. There is no denying our responsibility to protect the planet for our children and grandchildren. It's long past time we unleashed our American ingenuity and started building the efficient, prosperous clean energy economy of the future." EPA said the phased-in approach will start in January 2011, when Clean Air Act permitting requirements for GHGs will kick in for large facilities that are already obtaining Clean Air Act permits for other pollutants. Those facilities will be required to include GHGs in their permit if they increase these emissions by at least 75,000 tons per year (tpy).

    In July 2011, Clean Air Act permitting requirements will expand to cover all new facilities with GHG emissions of at least 100,000 tpy and modifications at existing facilities that would increase GHG emissions by at least 75,000 tpy. These permits must demonstrate the use of best available control technologies to minimize GHG emission increases when facilities are constructed or significantly modified. Under the new emissions thresholds for GHGs that begin in July 2011, EPA estimates approximately 900 additional permitting actions covering new sources and modifications to existing sources would be subject to review each year. In addition, 550 sources will need to obtain operating permits for the first time because of their GHG emissions.

    The final rule addresses a group of six greenhouse gases: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6). EPA issued a proposed rule in October 2009 and held a 60-day public comment period. The agency received about 450,000 comments, which were carefully reviewed and considered during the development of this final rule. When EPA originally proposed the rule the Administrator announced it would cover large industrial facilities that emit at least 25,000 tons of GHGs a year. At that time EPA estimated that approximately 14,000 large sources would need to obtain operating permits that include GHG emissions.

    In a fact sheet, EPA explains, "The rule establishes a schedule that will initially focus CAA permitting programs on the largest sources with the most CAA permitting experience. The rule then expands to cover the largest sources of GHG that may not have been previously covered by the CAA for other pollutants. Finally, it describes EPA plans for any additional steps in this process. The CAA permitting program emissions thresholds for criteria pollutants such as lead, sulfur dioxide and nitrogen dioxide, are 100 and 250 tons per year (tpy). While these thresholds are appropriate for criteria pollutants, they are not feasible for GHGs because GHGs are emitted in much higher volumes. Without this tailoring rule, the lower emissions thresholds would take effect automatically for GHGs on January 2, 2011. PSD and title V requirements at these thresholds would lead to dramatic increases in the number of required permits -- tens of thousands of PSD permits and millions of title V permits. State, local, and tribal permitting authorities would be overwhelmed and the programs' abilities to manage air quality would be severely impaired."
 
    The American Chemistry Council (ACC) President and CEO Cal Dooley issued a statement on the rule saying, "We are extraordinarily concerned about EPA's plans for regulating stationary sources under the Clean Air Act (CAA), as outlined in the 'tailoring rule' released today. By 2016, as many as six million U.S. sources of greenhouse gas emissions could be required to obtain a permit to build or modify facilities. This would include many of America's smallest sources, such as a new 100,000-square-foot hotel, a new restaurant, a major source that wants to add a gas furnace or space heater, a large commercial property with a $5,000 monthly natural gas bill, and nearly every chemical facility in the country. The approach could delay or cancel much-needed business investment, including energy efficiency-related projects that could help reduce the nation's GHG emissions. With EPA's plans for stationary source regulation now clear, we call on Congress to enact legislation to revisit this policy immediately. We look forward to working with lawmakers in this urgent effort. . ."

    The National Petrochemical & Refiners Association (NPRA) Executive Vice President and General Counsel Gregory Scott said. "It's the job of federal agencies like EPA to regulate, not legislate. If EPA wants changes in the Clean Air Act it should propose them to Congress, not unlawfully take on the role of Congress. EPA has adopted a tortured and legally unsupportable interpretation of the plain wording of the Clean Air Act in an effort to escape a regulatory train wreck of its own creation. If EPA is allowed to get away with this, it sets a dangerous precedent for unelected officials in federal agencies to change laws approved by the elected representatives of the American people. EPA created this regulatory mess when it decided, based on a questionable administrative record, to use the Clean Air Act for a purpose the authors of the law never intended -- to regulate greenhouse gases. However, now that EPA has started down this path, it does not have the right to pick and choose between portions of the law that fit its activist agenda and those that do not. Only Congress can rewrite the Clean Air Act."

    The Center for Biological Diversity (CBD) issued a release saying, "The rule would raise the threshold for permitting requirements from the statute's threshold of 250 tons to 75,000 tons, in the process exempting thousands of pollution sources that collectively account for millions of tons of greenhouse pollution each year." Kassie Siegel, CBD's Climate Law Institute director said, "The EPA should be moving boldly, quickly, and confidently to implement the Clean Air Act's successful pollution-reduction programs for greenhouse gases.  We're extremely disappointed with the EPA's slow and tentative timeline for addressing the climate crisis. While everyone agrees that greenhouse reductions for the largest polluters must be prioritized, the EPA can and should move far more quickly to reduce pollution from the other very important sources. Rather than rapidly employ the full scope of it authorities under the Clean Air Act to address the climate crisis with the urgency it deserves, with this rule the EPA seems intent on moving as slowly as possible."

    Maggie Fox, President and CEO of The Alliance for Climate Protection (ACP) founded in 2006 by Al Gore, said, "Americans can breathe a bit easier in the wake of today's announcement from the EPA on regulating emissions from the largest sources of greenhouse gas pollution causing the climate crisis. This rule is a common-sense and cost-effective approach that will shield small businesses and small sources, and focus on the largest emitters. Coupled with historic national carbon pollution limits for cars, a first-ever mandatory greenhouse gas inventory, and efforts in the Senate to craft comprehensive clean energy and climate policies, America is closer to realizing the promise of a 21st-century clean energy economy."

    Senior Legislative Representative Kyle Ash of Greenpeace USA said, "This final "tailoring" rule is a first step toward reducing the devastating impact of the nation's biggest smokestacks on the planet's climate, oceans, and quality of life. The Clean Air Act has been successfully used to reduce pollution for four decades. Now, three years after the Supreme Court ruled that EPA must come to grips with this problem, we will finally see needed requirements to reduce carbon dioxide pollution  caused by the burning of coal and other fossil fuels at large facilities like power plants and incinerators.

    Access a release from EPA (click here). Access complete details including the 550-page prepublication copy of the final rule, a fact sheet, a timeline and summary of permitting burdens with and without the rule (click here). Access the complete ACC statement (click here). Access the NPRA statement (click here). Access a release and background from CBD (click here). Access the statement from ACP (click here). Access a release from Greenpeace USA (click here).

Thursday, May 13, 2010

More Reactions To Kerry-Lieberman American Power Act

May 12: At the roll out of the long-awaited details of their comprehensive energy and climate change legislation -- the 987-page American Power Act -- Senators John Kerry (D-MA) and Joe Lieberman (I-CT), said the legislation would "create jobs, strengthen America's energy independence, safeguard our national security, and restore our global economic leadership for decades to come." The Senators also said The bill is "supported by a wide and deep coalition of business leaders, environmentalists, political leaders and others." In yesterday's coverage of the roll out WIMS included many statements from a diverse groups of supporters [See WIMS 5/12/10]. The following includes a number of additional statements -- many of which are unsure or not supporting the legislation.
 
    Senate Majority Harry Reid (D-NV) said: "The recent oil spill in the Gulf of Mexico demonstrates the urgent need to free our nation from its heavy dependence on oil and to create new clean energy industries and technologies. All Americans would benefit from a comprehensive national energy plan that creates millions of clean energy jobs, improves our national security and reduces pollution. . . As I work with Senators Kerry and Lieberman, the relevant committee chairs and the White House to move this process forward, I welcome the ideas of my colleagues to strengthen this proposal. To be successful we will need significant bipartisan cooperation, and I am hopeful Republicans will join us in working to further develop this bill so that it has broad support and can pass this year."
 
    Senator Lindsey Graham (R-SC), who dropped out of the tripartisan effort with Senators Kerry and Lieberman issued a statement saying, " I don't believe any American finds the status quo acceptable. Many senators from both parties have stated that Congress should set energy and carbon pollution policy, not the EPA. I could not agree more. While I have not seen the changes made by Senators Kerry and Lieberman to the final product, I look forward to reviewing their proposal in regards to offshore drilling, the transportation sector, and other issues. I believe the broad concepts we came up with before are transformational and are the most consumer and business-friendly effort to date in dealing with carbon pollution. Most importantly, they can serve as a framework in allowing America to lead in the creation of alternative energy jobs and significantly reducing our dependency on foreign oil. With these goals in mind, I am interested in carefully reviewing the details of the new proposal."

    There was no immediate reaction from Senate Minority Leader Mitch McConnell, however, Senator James Inhofe (R-OK), persistent critic on the climate change issue and Ranking Member of the Senate Committee on Environment and Public Works said: ". . .it's the same old cap-and-trade scheme that the Senate has defeated three times since 2003," Senator Inhofe said. "In fact, it has a strong resemblance to the disastrous Waxman-Markey bill.  Only now, along with paying skyrocketing electricity prices, consumers will pay a gas tax. . . The sooner we reject global warming cap-and-trade legislation, and get to work on an all-of the-above energy policy, the sooner the American public will have access to affordable, abundant, American-made energy."
 
    The Price Carbon Campaign including the Carbon Tax Center, Climate Crisis Coalition,  Citizens Climate Lobby and others which supports the "People's Climate Stewardship Act," i.e. "a "simple" carbon tax. proposed by Dr. James Hansen at the Climate Rally in Washington, DC, on April 25 [See WIMS 4/26/10] said: "The Kerry-Lieberman bill fails the acid test of climate legislation, which is to provide clear signals on emission prices. Investors, entrepreneurs and households all need certainty in future fuel and energy prices, but Kerry-Lieberman hides these crucial price signals behind a curtain of cap-and-trade. . . Instead of making needed investments in renewable energy, utilities will have the much cheaper option of investing in third-world projects aimed at cutting carbon. Most of these offsets do nothing to reduce current emissions, and they allow polluters in the U.S. to keep burning coal and other dirty fuels."
 
    The Center for Biological Diversity (CBD) issued a statement saying the proposal reflects months of back-room negotiations between the senators, major polluters, and other Washington insiders. They said, "The climate proposal put forth today by Senators Kerry and Lieberman represents a disaster for our climate and planet. This proposal moves us one baby step forward and at least three giant steps back in any rational effort to address the climate crisis. The senators' proposal would entrench our addiction to fossil fuels by offering incentives for increased oil and gas drilling just days after what appears to be the worst offshore oil disaster in American history. . . The senators' weak targets will not reduce carbon pollution to below 350 ppm from its current level of 391 ppm. . ."
 
    The American Petroleum Institute (API) said: "This broad proposal reflects the complex relationship between the U.S. energy system and greenhouse gas emissions which come from every car, home, factory and farm in America. We are reviewing the released text to assess the proposal's possible impact on jobs, energy production, and consumers of oil and natural gas. However, until full legislative language has been thoroughly analyzed, any assessment would be guess work at best. We need reliable data and estimates on how the draft legislation would affect energy production, energy prices, consumers' budgets and the broader economy, in order to judge it on its merits. Moving away from the House Waxman-Markey approach was imperative. . ."
 
    The U.S. Chamber of Commerce said, "The Chamber supports efforts to address energy security and climate change, and believes that any legislation must be comprehensive and bipartisan, and take into account a wide spectrum of issues including American jobs and our economy. . . The Kerry-Lieberman bill is a work in progress. Few in Congress or the business community have had a chance to review the entire bill. Once all the details of the bill are known, the Energy Information Administration (EIA) and the business community will need sufficient time to analyze the bill to ascertain its effects on the economy, jobs, the environment, and energy markets. As we undertake our own analysis of the legislation, we will work with our diverse membership to assess its impact on the business community. It will be critical to determine how this bill will impact a broad range of industries as well as America's energy security."
 
    The American Trucking Associations (ATA) said it cannot support the APA and said: "The bill will raise the cost of gasoline and diesel fuel without significantly reducing the output of carbon dioxide by the trucking industry, which is a non-discretionary user of diesel fuel. The Senate bill would require refiners to purchase billions of dollars worth of carbon allowances that correspond to the carbon footprint of the fuels they sell.  The refiners will then pass this cost on to consumers in the form of higher fuel prices.  As such, the Senate bill operates as a hidden multi-billion-dollar tax. . ."
 
    The National Petrochemical & Refiners Association (NPRA) said the APA should be rejected and indicated: "The draconian carbon reduction targets and timetables in this bill would trigger destructive change in America's economic climate. This would add billions of dollars in energy costs for American families and businesses, destroy the jobs of millions of American workers, and make our nation more dependent on foreign energy sources. America is a nation, not a planet, so it's a fantasy to pretend that restricting our carbon dioxide emissions will improve the environment if China, India and other large and rapidly industrializing nations don't adopt the same restrictions. Carbon dioxide doesn't stop at national borders. If senators want to increase the loss of manufacturing jobs in the United States and postpone the resurgence of the American economy, then they should vote for this bill. . ."
 
    The American Materials Manufacturing Alliance (AMMA), a group of energy-intensive, trade-exposed industries (EITEs) that includes The Aluminum Association, the American Chemistry Council (ACC), the American Forest & Paper Association (AF&PA), the American Iron and Steel Institute (AISI), The Fertilizer Institute (TFI) and Portland Cement Association (PCA), issued a statement saying: "We believe that compared with past bills, the legislation released today invests more in U.S. manufacturing competitiveness.  However, in several key areas, more must be done to ensure the global competitiveness of EITEs and the retention of American jobs. . . the funding must be boosted significantly to meet the objective of keeping U.S. manufacturing competitive.  The bill also does not address increased energy costs: cost containment is key to preventing the transfer of U.S. manufacturing production and jobs to more carbon-intensive developing nations, known as 'carbon leakage.' . . Instead of fully pre-empting U.S. Environmental Protection Agency (EPA) regulation of GHGs under the Clean Air Act, the bill preempts regulation only under specific sections, and only for 'covered' stationary sources. . .  The bill falls short of the uniformity needed to prevent uncertainty and delay in investments . . ."
 
    The blog, The Wonk Room, has posted an interesting table that compares key elements of Obama's campaign promises from 2007 and 2008, the Waxman-Markey American Clean Energy and Security Act as passed by the House of Representatives (H.R. 2454), and the elements of the Kerry-Lieberman draft legislation (see link below). Also, the U.S. Climate Action Network (USCAN) has established an APA website that includes the statements of many groups and organizations as well as letters, documents, links, analysis, videos, timelines and more.
 
    Access the statement from Senator Reid (click here). Access the statement from Senator Graham (click here). Access the statement from Senator Inhofe (click here). Access a release from the Price Carbon Campaign with links to other organizations (click here). Access the CBD statement (click here). Access the API statement (click here). Access a posting from the U.S. Chamber (click here). Access the ATA statement (click here). Access the statement from NPRA (click here). Access the statement from AMMA (click here). Access Senator Kerry's American Power Act website for links to complete information on the legislation (click here). Access the Wonk Room post (click here). Access the USCAN APA website (click here).