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Ganesan, Arvin[Ganesan.Arvin@epa.

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POLITICO Pro Energy
Sent:
Thur 5/29/2014 6:28:56 PM
Subject: Afternoon Energy, presented by Fuels America: White House tips hand in run-up to climate
rule release - Industry touts benefits of oil exports - Poll: Majority support climate regulations
To:

From:

By Talia Buford I 5/29/14 2:26 PM EDT


With help from Andrew Restuccia, Erica Martinson and Darius Dixon

WHITE HOUSE REPORT DETAILS ENERGY STRATEGY IN RUN-UP TO CLIMATE


RULE'S RELEASE: Just days before unveiling highly anticipated climate change regulations,
the White House released a report
Thursday detailing the Obama
administration's "all of the above" energy strategy. The report summarizes various
administration proposals, including efforts to reduce greenhouse gas emissions, promote natural
gas as a "transitional fuel" and embrace low-carbon energy sources like nuclear, wind and solar
power. While offering little new information, the document serves to highlight and explain the
administration's energy strategy ahead of Monday's roll out of proposed EPA climate regulations
for existing power plants.
AROUND THE CLIMATEDOME:
In a new paper
Resources for the Future says that EPA' s likely
proposals will raise consumer prices minimally, but the benefits will outweigh the costs of doing
nothing.

-The NYT's Paul Krugman takes a spin through yesterday's U.S. Chamber of Commerce
report and writes that "what it actually found was that dramatic action on greenhouse gases
would have surprisingly small economic costs."==~~-"==~=-"="-=
- And Rep. Nick Rahall took to the House floor Thursday to condemn the pending mles: "I
will oppose this mle as it will adversely affect coal miners and coal-mining communities
throughout West Virginia and the nation. At stake is our economy and the livelihoods of our
coal miners, our steelworkers, electrical workers, those who keep our freight trains mnning, and
families and businesses that rely on affordable energy from coal."

Welcome to Afternoon Energy. I'm your host, Talia Buford. This story on the food politics of
Pokemon is oddly engrossing- and I've never played or watched Pokemon a day in my life.
Send the best energy news, tips and tidbits to me at
[via Modem Farmer:
Follow us on Twitter:
and

** EPA's proposal to weaken the Renewable Fuel Standard would seriously undercut
investments in America's low carbon advanced biofuel industry. Caving to oil industry pressure
and reducing the market for renewable fuels would undercut the industry's ability to invest ...
especially if the Administration's rationale is the oil industry's refusal to provide renewable fuels
infrastmcture despite a law requiring them to. Thirty-three advanced biofuel leaders told

CREW FOIA 2014-006851-0000707

POLL: MAJORITY SUPPORTS CLIMATE REGS: The majority of the public supports
power-plant climate change regulations, even when they're told that electricity prices might
increase, according to a new poll
The poll, conducted in April by Yale
University, found that 64 percent support setting "strict" limits on carbon dioxide emissions from
existing power plants. The poll question noted that "the cost of electricity to consumers and
companies would likely increase." There remains a large partisan divide on the issue. Eighty
percent of Democrats and 43 percent of Republicans support the regulations, while independents
are evenly divided at 50 percent.
MARKEY TALKS CLIMATE CHANGE WITH POPE FRANCIS: Sen. Ed Markey met
with Pope Francis at the Vatican today to discuss the need for action on climate change. "The
pope and all people of faith understand that climate change is a moral issue, and that we are
called to respond to this personal and planetary challenge,'' Markey said in a statement. He
traveled to the Vatican along with legislators from South Africa, the United Kingdom, Mexico,
Italy and the Philippines.
API TOUTS BENEFITS OF OIL EXPORTS: A new report released today
L==-'-===,~-"-=-'1-==-.oc, by API says that lifting crude oil export restrictions could bring thousands
of jobs to states including Michigan, Pennsylvania, Ohio, Texas and North Dakota. The peak of
the jobs would be around 2020, the report said, and decline as production ramps down through
2035. Under the best-case scenarios, eight states could gain more than 10,000 jobs in 2020, and
Texas could add close to 41,000 jobs that year.

"Restrictions on exports only limit our potential as a global energy superpower," said Kyle
Isakower, API's VP for regulatory and economic policy. "Additional exports could prompt
higher production, generate savings for consumers, and bring more jobs to America.
The economic benefits are well-established, and policymakers are right to re-examine 1970s-era
trade restrictions that no longer make sense."
- Related: A separate IHS report
said lifting the ban would
create an average of 394,000 jobs annually, and boost domestic investment and oil production,
and reduce gas prices.
NERC PHYSICAL SECURITY FILING COMES EARLY: The North American Electric
Reliability Corp. decided to submit its proposal
on physical security
protections for the grid to regulators ahead of schedule. FERC had given NERC until June 5 to
tum in a draft standard. The standard, NERC said, is "deliberately dynamic and adaptable to the
constantly changing threat environment." The proposal requires transmission owners and
operators to evaluate threats to their facilities (stations, substations and certain control centers)
and develop security plans for the ones most critical to the bulk power system.
- The comments included in the filing are all over the map, but AE' s favorite so far is from
Greg Froehling of the Rayburn Country Electric Cooperative, in Texas: "Overall comment is this
is too complicated of a draft standard for a 90 day consensus! Keep it simple."

CREW FOIA 2014-006851-0000708

SCOTUS HOLDS CONFERENCE ON NUISANCE SUITS: The court held another


conference Thursday, where it considered whether to take up GenOn Power Midwest, L.P. v.
Bell (13-1013), a case over whether the Clean Air Act preempts states' common law nuisance
claims that would impose additional air pollution restrictions on a company.
SEE IT FIRST: THE FRIDAY COVER - The highly anticipated weekly reveal from
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QUICK HITS

- Four people were injured and one is missing after an oil tanker exploded off of the coast of
Japan on Thursday. WSJ: =~=~;.===~~'='==
- A New York state senator pushes legislation to cap the utility bill surcharges that pay for
expanding the state's clean energy programs. Capital New York:==~=.!-'-"=-=+-=--'-

- Environmentalists in British Columbia fear that the province's natural gas boom and plans to
export LNG to Asia will make it impossible to meet its aggressive greenhouse gas targets. The
New York Times: ~~__._~~~~~
-A tornado damages Marathon Petroleum's massive oil refinery in Garyville, La. The Wall
Street Journal:
~~~~~~~~+'--~

THE WIDE WORLD OF POLITICS

**The EPA's proposal to weaken the Renewable Fuel Standard would seriously undercut
private sector investments in America's emerging cellulosic ethanol and advanced biofuel
industry - which is beginning commercial scale production at four new plants this year. Caving
to oil industry pressure and reducing the market for renewable fuels would undercut the
industry's ability to make investments in advanced biofuels ... especially if the Administration's
rationale for the reduction is the fact that the oil industry is refusing to provide the infrastmcture
to sell renewable fuels in spite of a law requiring them to do so. America can't afford to take
two steps backward on our environment and our energy security just as low carbon advanced
biofuels are emerging as a game-changing renewable fuel. Read what DuPont, Abengoa,
Novozymes, Poet DSM and 30 other advanced biofuel leaders told President Obama about how

CREW FOIA 2014-006851-0000709

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CREW FOIA 2014-006851-0000710