Dynergy CFO to settle fraud charges

By The Press Democrat


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A former chief financial officer of energy company Dynegy Inc. is paying $376,560 to settle federal regulators' charges that he played a role in an alleged $300 million fraudulent accounting scheme in 2001.

The Securities and Exchange Commission announced the settlement with the former finance chief, Robert Doty Jr., who agreed to pay a civil fine of $120,000 and restitution of $200,000 plus $56,560 in interest. Doty also was barred for five years from serving as an officer, director or accountant of any public company.

Two other former Dynegy executives, former vice president of taxation Gene Foster and former in-house accountant Helen Sharkey, also settled the SEC's charges.

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Some in Tennessee could be without power for weeks after strong storms hit

Middle Tennessee Power Outages disrupt 100,000+ customers as severe thunderstorms, straight-line winds, downed trees, and debris challenge Nashville crews, slow restoration amid COVID-19, and threaten more hail, flash flooding, and damaging gusts.

 

Key Points

Blackouts across Nashville after severe storms and winds, leaving customers without power and facing restoration delays.

✅ Straight-line winds 60-80 mph toppled trees and power lines

✅ 130,000+ customers impacted; some outages may last 1-2 weeks

✅ Restoration slowed by debris, COVID-19 protocols, and new storms

 

Some middle Tennessee residents could be without electricity for up to two weeks after strong thunderstorms swept through the area Sunday, knocking out power for more than 100,000 customers, a scale comparable to Los Angeles outages after a station fire.

"Straight line winds as high as 60-80 miles per hour knocked down trees, power lines and power polls, interrupting power to 130,000 of our 400,000+ customers," Nashville Electric said in a statement Monday. The utility said the outage was one of the largest on record, though Carolina power outages recently left a quarter-million without power as well.

"Restoration times will depend on individual circumstances. In some cases, power could be out for a week or two" as challenges related to coronavirus and the need for utilities adapt to climate change complicated crews' responses and more storms were expected, the statement said. "This is unfortunate timing on the heels of a tornado and as we deal with battling COVID-19."

Metropolitan Nashville and Davidson County Mayor John Cooper also noted that the power outages were especially inconvenient, a challenge similar to Hong Kong families without power during Typhoon Mangkhut, as people were largely staying home to slow the spread of coronavirus. He also pointed out that the storms came on the two month anniversary of the Nashville tornado that left at least two dozen people dead.

"Crews are working diligently to restore power and clear any debris in neighborhoods," Cooper said.

He said that no fatalities were reported in the county but sent condolences to Spring Hill, whose police department reported that firefighter Mitchell Earwood died during the storm due to "a tragic weather-related incident" while at his home and off duty. He had served with the fire department for 10 years.

The Metro Nashville Department of Public Works said it received reports of more than 80 downed trees in Davidson County.

Officials also warn that copper theft can be deadly when electrical infrastructure is damaged after storms.

The National Weather Service Nashville said a 72 mph wind gust was measured at Nashville International Airport — the fifth fastest on record.

The weather service warned that strong storms with winds of up to 75 mph, large hail, record-long lightning bolt potential seen in the U.S., and isolated flash flooding could hit middle Tennessee again Monday afternoon and night.

"Treat Severe Thunderstorm Warnings the same way you would Tornado Warnings and review storm safety tips before you JUST TAKE SHELTER," the NWS instructs. "70 mph is 70 mph whether it's spinning around in a circle or blowing in a straight line."

 

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Manitoba's electrical demand could double in next 20 years: report

Manitoba Hydro Integrated Resource Plan outlines electrification-driven demand growth, clean electricity needs, wind generation, energy efficiency, hydropower strengths, and net-zero policy impacts, guiding investments to expand capacity and decarbonize Manitoba's grid.

 

Key Points

Manitoba Hydro IRP forecasting 2.5x demand, clean power needs, and capacity additions via wind and energy efficiency.

✅ Projects electricity demand could more than double within 20 years.

✅ Leverages 97% hydro supply; adds wind generation and efficiency.

✅ Positions for net-zero, electrification, and new capacity by the 2030s.

 

Electrical demand in Manitoba could more than double in the next 20 years, a trend echoed by BC Hydro's call for power in response to electrification, according to a new report from Manitoba Hydro.

On Tuesday, the Crown corporation released its first-ever Integrated Resource Plan (IRP), which not only predicts a significant increase in electrical demand, but also that new sources of energy, and a potential need for new power generation, could be needed in the next decade.

“Right now, what [our customers] are telling us, with the climate change objectives, with federal policy, provincial policies, is they see using electricity much more in the future than they do today,” said president and CEO of Manitoba Hydro Jay Grewal.

“And our current, where we’re at now, our customers have told us through all this consultation and engagement over the last two years, they’re going to want and need more than 2.5 times the electricity than we have in the province today.”

The IRP indicates that the move towards low or no-carbon energy sources will accelerate the need for clean electricity, which will require significant investments, including new turbine investments to expand capacity. Some of the clean energy measures Hydro is looking at for the future include wind generation and energy efficiency.

The report also found that Manitoba is in a good position as it prepares for the future due to its hydroelectric system, which delivers around 97 per cent of the yearly electricity. However, the province’s existing supply is limited, and vulnerable to Western Canada drought impacts on hydropower, so other electrical energy sources will be needed.

“Something Manitobans may not realize is, we are in such a privileged province, because 97 per cent of the electricity produced in Manitoba today is clean energy and net zero,” Grewal said.

Manitoba also supplies power to neighbouring utilities, with a SaskPower purchase agreement to buy more electricity under an expanded deal.

The IRP is the result of a two-year development process that involved multiple rounds of engagement with customers and other interested parties. The IRP is not a development plan, but it arrives as Hydro warns it can't service new energy-intensive customers under current capacity, and it outlines how Manitoba Hydro will monitor, prepare and respond to the changes in the energy landscape.

“We spoke with over 15,000 of our customers, whether they’re residential, commercial, industrial, industry associations, regulators, government – across the board, we talked with our customers,” said Grewal.

“And what we did was through this work, we understood what our customers are anticipating using electricity for going forward.

 

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Japan's power demand hit by coronavirus outbreak: industry head

Japan Power Demand Slowdown highlights reduced electricity consumption as industrial activity stalls amid the coronavirus pandemic, pressuring utilities, the grid, and manufacturing, with economic impacts monitored by Chubu Electric and the federation of electric utilities.

 

Key Points

A drop in Japan's electricity use as industrial activity slows during the coronavirus pandemic, pressuring utilities.

✅ Industrial slowdown cuts electricity consumption

✅ Utilities monitor grid stability and demand trends

✅ Pandemic-linked economic risks weigh on power sector

 

Japan's power demand has been hit by a slowdown in industrial activity due to the coronavirus outbreak, reflecting broader shifts in electricity demand worldwide, Japanese utilities federation's head said on Friday, without giving specific figures.

Electricity load profiles during lockdowns revealed changes in daily routines, as shown by lockdown electricity data across multiple regions.

Analysts have identified key shifts in U.S. electricity consumption patterns that mirror industrial slowdowns.

"We are closely watching development of the pandemic, underscoring the need for electricity during such crises, as further reduction in corporate and economic activities would lead to serious impacts," Satoru Katsuno, the chairman of Japan's federation of electric utilities and president of Chubu Electric Power Co Inc, told a news conference.

In parallel, the power industry has intensified coordination with federal partners to sustain grid reliability and protect critical workers.

Some governments, including Brazil, considered emergency loans for the power sector to stabilize utilities amid revenue pressures.

Consumer advocates warned that pandemic-related electricity shut-offs and bill burdens could exacerbate energy insecurity for vulnerable households.

 

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Electrifying Manitoba: How hydro power 'absolutely revolutionized' the province

Manitoba Electrification History charts arc lights, hydroelectric dams, Winnipeg utilities, transmission lines, rural electrification, and Manitoba Hydro to today's wind, solar, and EV transition across the provincial power grid, driving modernization and reliability.

 

Key Points

Manitoba's power evolution from arc lights to hydro and rural electrification, advancing wind and solar on a modern grid.

✅ 1873 Winnipeg arc light predates Edison and Bell.

✅ 1919 Act built transmission lines, rural electrification.

✅ Hydroelectric dams reshaped lands and affected First Nations.

 

The first electric light in Manitoba was turned on in Winnipeg in 1873, but it was a century ago this year that the switch was flipped on a decision that would bring power to the fingertips of people across the province.

On March 12, 1873, Robert Davis — who owned the Davis House hotel on Main Street, about a block from Portage Avenue — used an electric arc light to illuminate the front of his building, according to A History of Electric Power in Manitoba, published by Manitoba Hydro.

That type of light used an an inert gas in a glass container to create an electric arc between two metal electrodes.

"The lamp in front of the Davis Hotel is quite an institution," a Manitoba Free Press report from the day said. "It looks well and guides the weary traveller to a haven of rest, billiards and hot drinks."

A ladder crew from the Winnipeg Electric Street Railway Company working on an electric trolley line in 1905. (I.F. Allen/Manitoba Hydro archives)

The event took place six years before Thomas Edison's first incandescent lamp was invented and three years before the first complete sentence was spoken over the telephone by Alexander Graham Bell.

"Electrification probably had a bigger influence on the lives of Manitobans than virtually anything else," said Gordon Goldsborough, head researcher with the Manitoba Historical Society.

"It's one of the most significant changes in the lives of Manitobans ever, because basically it transformed so many aspects of their lives. It wasn't just one thing — it touched pretty much every aspect of life."

 

Winnipeg gets its 1st street lamps

In the pioneer days of lighting and street railway transportation in Winnipeg, multiple companies formed in an effort to take advantage of the new utility: Winnipeg Gas Company, Winnipeg General Power Company, Manitoba Electric and Gas Light Company, and The North West Electric Light and Power Company.

In October 1882, the first four street lamps, using electric arc lights, were turned on along Main Street from Broadway to the CPR crossing over the Assiniboine River.

They were installed privately by P.V. Carroll, who came from New York to establish the Manitoba Electric Light & Power Company and try to win a contract for illuminating the rest of the city's streets.

He didn't get it. Newspaper reports from the time noted many outages and other problems and general disappointment in the quality of the light.

Instead, the North West Electric Light and Power Company won that contract and in June 1883 it lit up the streets.

Workers erect a wooden hydro pole beside the Belmont Hotel in 1936. Belmont is a small community southeast of Brandon. (Manitoba Hydro archives)

Over the years, other companies would bring power to the city as it became more reliable, including the Winnipeg Electric Street Railway Company (WERCo), which built the streetcar system and sold electric heat, light and power.

But it was the Brandon Electric Light Company that first tapped into a new source of power — hydro. In 1900, a dam was built across the Minnedosa River (now known as the Little Saskatchewan River) in western Manitoba, and the province's first hydroelectric generating station was created.

The first transmission line was also built, connecting the station with Brandon.

By 1906, WERCo had taken over the Winnipeg General Power Company and the Manitoba Electric and Gas Light Company, and changed its name to the Winnipeg Electric Railway Company. Later, it became the Winnipeg Electric Company, or WECo.

It also took a cue from Brandon, building a hydroelectric plant to provide more power. The Pinawa dam site operated until 1951 and is now a provincial park.

The Minnedosa River plant was the first hydroelectric generating station in Manitoba. (Manitoba Hydro archives)

The City of Winnipeg Hydroelectric System was also formed in 1906 as a public utility to combat the growing power monopoly held by WECo, and to get cheaper power. The city had been buying its supply from the private company "and the City of Winnipeg didn't quite like that price," said Bruce Owen, spokesman for Manitoba Hydro.

So the city funded and built its own dam and generating station site on the Winnipeg River in Pointe du Bois — about 125 kilometres northeast of Winnipeg — which is still in operation today.

"All of a sudden, not only did we have street lights … businesses had lights, power was supplied to homes, people no longer had to cook on wood stoves or walk around with kerosene lanterns. This city took off," said Owen.

"It helped industry grow in the city of Winnipeg. Within a few short years, a second plant had to be built, at Slave Falls."

 

Lighting up rural Manitoba

While the province's two biggest cities enjoyed the luxury of electricity and the conveniences it brought, the patchwork of power suppliers had also created a jumble of contracts with differing rates and terms, spurring periodic calls for a western Canadian electricity grid to improve coordination.

Meanwhile, most of rural Manitoba remained in the dark.

The Pinawa Dam was built by the Winnipeg Electric Street Railway Company in 1906 and operated until 1951. (Manitoba Hydro archives)

The Pinawa Dam site now, looking like some old Roman ruins. (Darren Bernhardt/CBC)

That began to change in 1919 when the Manitoba government passed the Electric Power Transmission Act, with the aim of supplying rural Manitoba with electrical power. The act enabled the construction of transmission lines to carry electricity from the Winnipeg River generating stations to communities all over southern Manitoba.

It also created the Manitoba Power Commission, predecessor to today's Manitoba Hydro, to purchase power from the City of Winnipeg — and later WECo — to supply to those other communities.

The first transmission line, a 97-kilometre link between Winnipeg and Portage la Prairie, opened in late 1919, and modern interprovincial projects like Manitoba-Saskatchewan power line funding continue that legacy today. The power came from Pointe du Bois to a Winnipeg converter station that still stands at the corner of Stafford Street and Scotland Avenue, then went on to Portage la Prairie.

"That's the remarkable thing that started in 1919," said Goldsborough.

Every year after that, the list of towns connected to the power grid became longer "and gradually, over the early 20th century, the province became electrified," Goldsborough said.

"You'd see these maps that would spider out across the province showing the [lines] that connected each of these communities — a precursor to ideas like macrogrids — to each other, and it was really quite remarkable."

By 1928, 33 towns were connected to the Manitoba Power Commission grid. That rose to 44 by 1930 and 140 by 1939, according to the Manitoba Historical Society.

 

Power on the farm

Still, one group who could greatly use electricity for their operations — farmers — were still using lanterns, steam and coal for light, heat and power.

"The power that came to the [nearest] town didn't extend to them," said Goldsborough.

It was during the Second World War, as manual labour was hard to come by on farms, that the Manitoba Power Commission recognized the gap in its grid.

It met with farmers to explain the benefits electricity could bring and surveyed their interest. When the war ended in 1945, the farm electrification process got underway.

Employees, their spouses, and children pose for a photo outside of Great Falls generating station in 1923. (Manitoba Hydro archives)

Farmers were taught wiring techniques and about the use of motors for farm equipment, as well as about electric appliances and other devices to ease the burden of domestic life.

"The electrification of the 1940s and '50s absolutely revolutionized rural life," said Goldsborough.

"Farmers had to provide water for all those animals and in a lot of cases [prior to electrification] they would just use a hand pump, or sometimes they'd have a windmill. But these were devices that weren't especially reliable and they weren't high capacity."

Electric motors changed everything, from pumping water to handling grain, while electric heat provided comfort to both people and animals.

Workers build a hydro transmission line tower in an undated photo from Manitoba Hydro. (Manitoba Hydro archives)

"Now you could have heat lamps for your baby chickens. They would lose a lot of chickens normally, because they would simply be too cold," Goldsborough said.

Keeping things warm was important, but so too was refrigeration. In addition to being able to store meat in summer, it was "something to prolong the life of dairy products, eggs, anything," said Manitoba Hydro's Owen.

"It's all the things we take for granted — a flick of a switch to turn the lights on instead of walking around with a lantern, being able to have maybe a bit longer day to do routine work because you have light."

Agriculture was the backbone of the province but it was limited without electricity, said Owen.

Connecting it to the grid "brought it into the modern age and truly kick-started it to make it a viable part of our economy," he said. "And we still see that today."

In 1954, when the farm electrification program ended, Manitoba was the most wired of the western provinces, with 75 per cent of farms and 100,000 customers connected.

The success of the farm electrification program, combined with the post-war boom, brought new challenges, as the existing power generation could not support the new demand.

The three largest players — City Hydro, WECo and the Manitoba Power Commission, along with the provincial government  — created the Manitoba Hydro-Electric Board in 1949 to co-ordinate generation and distribution of power.

A float in a Second World War victory parade represents a hydroelectric dam and the electricity it generates to power cities. (Manitoba Hydro archives)

More hydroelectric generating stations were built and more reorganizations took place. WECo was absorbed by the board and its assets split into separate companies — Greater Winnipeg Gas and Greater Winnipeg Transit.

Its electricity distribution properties were sold to City Hydro, which became the sole distributor in central Winnipeg. The Manitoba Power Commission became sole distributor of electricity in the suburbs and the rest of Manitoba.

 

Impacts on First Nations

Even as the lives of many people in the province were made easier by the supply of electricity, many others suffered from negative impacts in the rush of progress.

Many First Nations were displaced by hydro dams, which flooded their ancestral lands and destroyed their traditional ways of life.

"And we hear stories about the potential abuses that occurred," said Goldsborough. "So you know, there are there pluses but there are definitely minuses."

In the late 1950s, the Manitoba Power Commission continued to grow and expand its reach, this time moving into the north by buying up private utilities in The Pas and Cranberry Portage.

In 1961, the provincial government merged the commission with the Manitoba Hydro-Electric Board to create Manitoba Hydro.

In 1973, 100 years after the first light went on at that Main Street hotel, the last of the independent power utilities in the province — the Northern Manitoba Power Company Ltd. — was taken over by Hydro.

Winnipeg Hydro, previously called City Hydro, joined the fold in 2002.

Today, Manitoba Hydro operates 15 generating stations and serves 580,262 electric power customers in the province, as well as 281,990 natural gas customers.

 

New era

And now, as happened in 1919, a new era in electricity distribution is emerging as alternative sources of power — wind and solar — grow in popularity, and as communities like Fort Frances explore integrated microgrids for resilience.

"There's a bit of a clean energy shift happening," said Owen, adding use of biomass energy — energy production from plant or animal material — is also expanding.

"And there's a technological change going on and that's the electrification of vehicles. There are only really several hundred [electric vehicles] in Manitoba on the streets right now. But we know at some point, with affordability and reliability, there'll be a switch over and the gas-powered internal combustion engine will start to disappear."

'We're just a little behind here': Manitoba electric vehicle owners call for more charging stations

That means electrical utilities around the world are re-examining their capabilities, as climate change increasingly stresses grids, said Owen.

"It's coming [and we need to know], are we in a position to meet it? What will be the demands on the system on a path to a net-zero grid by 2050 nationwide?" he said.

"It may not come in my lifetime, but it is coming."

 

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Economic Crossroads: Bank Earnings, EV Tariffs, and Algoma Steel

Canada Economic Crossroads highlights bank earnings trends, interest rates, loan delinquencies, EV tariffs on Chinese imports, domestic manufacturing, Algoma Steel decarbonization, sustainability, and housing market risks shaping growth, investment, consumer prices, and climate policy.

 

Key Points

An overview of how bank earnings, EV tariffs, and Algoma Steel's transition shape Canada's economy.

✅ Higher rates lift margins but raise delinquencies and housing risks

✅ EV tariffs aid domestic makers but pressure consumer prices

✅ Algoma invests to decarbonize, boosting efficiency and compliance

 

In a complex economic landscape, recent developments have brought attention to several pivotal issues affecting Canada's business sector. The Globe and Mail’s latest report delves into three major topics: the latest bank earnings, the implications of new tariffs on Chinese electric vehicles (EVs), and Algoma Steel’s strategic maneuvers. These factors collectively paint a picture of the challenges and opportunities facing Canada's economy.

Bank Earnings Reflect Economic Uncertainty

The recent financial reports from major Canadian banks have revealed a mixed picture of the nation’s economic health. As the Globe and Mail reports, earnings results show robust performances in some areas while highlighting growing concerns in others. Banks have generally posted strong quarterly results, buoyed by higher interest rates which have improved their net interest margins. This uptick is largely attributed to the central bank's monetary policies aimed at combating inflation and stabilizing the economy.

However, the positive earnings are tempered by underlying economic uncertainties. Rising loan delinquencies and a slowing housing market are areas of concern. Increased interest rates, while beneficial for banks’ margins, have also led to higher borrowing costs for consumers and businesses. This dynamic has the potential to impact overall economic growth and consumer confidence.

Tariffs on Chinese EVs: A Strategic Shift

Another significant development is the imposition of new tariffs on Chinese electric vehicles. This move is part of a broader strategy to protect domestic automotive industries and address trade imbalances, aligning with public support for tariffs in key sectors. The tariffs are expected to increase the cost of Chinese EVs in Canada, which could have several implications for the market.

On one hand, the tariffs might provide a temporary boost to Canadian and North American manufacturers by reducing competition from lower-priced Chinese imports. This protectionist measure could encourage investments in local production and innovation, mirroring tariff threats boosting support for energy projects in other sectors. However, the increased cost of Chinese EVs may also lead to higher prices for consumers, potentially slowing the adoption of electric vehicles—a critical goal in Canada’s climate strategy.

The tariffs come at a time when the Canadian government is keen on accelerating the transition to electric mobility to meet its environmental targets, even as a critical crunch in electrical supply raises questions about grid readiness. Balancing the protection of domestic industries with the broader goal of reducing emissions will be a significant challenge moving forward.

Algoma Steel’s Strategic Evolution

In the steel industry, Algoma Steel has been making headlines with its strategic initiatives aimed at transforming its operations, in a broader shift toward clean grids and industrial decarbonization. The Globe and Mail highlights Algoma Steel's efforts to modernize its production processes and shift towards more sustainable practices. This includes significant investments in technology and infrastructure to enhance production efficiency and reduce environmental impact.

Algoma's focus on reducing carbon emissions aligns with broader industry trends towards sustainability. The company’s efforts are part of a larger push within the steel sector to address climate change and meet regulatory requirements. As one of Canada’s leading steel producers, Algoma’s actions could set a precedent for the industry, showcasing how traditional manufacturing sectors can adapt to evolving environmental standards.

Implications and Future Outlook

The interplay of these developments reflects a period of significant transition for Canada's economy, shaped in part by U.S. policy where Biden is seen as better for Canada's energy sector by some analysts. For banks, the challenge will be to navigate the balance between profitability and potential risks from a changing economic environment. The new tariffs on Chinese EVs represent a strategic shift with mixed implications for the automotive market, potentially influencing both domestic production and consumer prices. Meanwhile, Algoma Steel’s push towards sustainability could serve as a model for other industries seeking to align with environmental goals.

As these issues unfold, stakeholders across sectors will need to stay informed and adaptable. For policymakers, the challenge will be to support domestic industries while fostering innovation and sustainability, including the dilemma over electricity rates and innovation they must weigh. For businesses, the focus will be on navigating financial pressures and leveraging opportunities for growth. Consumers, in turn, will face the impact of these developments in their daily lives, from the cost of borrowing to the price of electric vehicles.

In summary, Canada’s current economic landscape is characterized by a blend of financial resilience, strategic adjustments, and evolving industry practices, amid policy volatility such as a tariff threat delaying Quebec's green energy bill earlier this year. As the country navigates these crossroads, the outcomes of these developments will play a crucial role in shaping the future economic environment.

 

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Trump unveils landmark rewrite of NEPA rules

Trump NEPA Overhaul streamlines environmental reviews, tightening 'reasonably foreseeable' effects, curbing cumulative impacts, codifying CEQ greenhouse gas guidance, expediting permits for pipelines, highways, and wind projects with two-year EIS limits and one lead agency.

 

Key Points

Trump NEPA Overhaul streamlines reviews, trims cumulative impacts, keeps GHG analysis for foreseeable effects.

✅ Limits cumulative and indirect impacts; emphasizes foreseeable effects

✅ Caps EIS at two years; one-year environmental assessments

✅ One lead agency; narrower NEPA triggers for low federal funding

 

President Trump has announced plans for overhauling rules surrounding the nation’s bedrock environmental law, and administration officials refuted claims they were downplaying greenhouse gas emissions, as the administration also pursues replacement power plant rules in related areas.

The president, during remarks at the White House with supporters and Cabinet officials, said he wanted to fix the nation’s “regulatory nightmare” through new guidelines for implementing the National Environmental Policy Act.

“America is a nation of builders,” he said. But it takes too long to get a permit, and that’s “big government at its absolute worst.”

The president said, “We’re maintaining America’s world-class standards of environmental protection.” He added, “We’re going to have very strong regulation, but it’s going to go very quickly.”

NEPA says the federal government must consider alternatives to major projects like oil pipelines, highways and bridges that could inflict environmental harm. The law also gives communities input.

The Council on Environmental Quality has not updated the implementing rules in decades, and both energy companies and environmentalists want them reworked, even as some industry groups warned against rushing electricity pricing changes under related policy debates.

But they patently disagree on how to change the rules.

A central fight surrounds whether the government considers climate change concerns when analyzing a project.

Environmentalists want agencies to look more at “cumulative” or “indirect” impacts of projects. The Trump plan shuts the door on that.

“Analysis of cumulative effects is not required,” the plan states, adding that CEQ “proposes to make amendments to simplify the definition of effects by consolidating the definition into a single paragraph.”

CEQ Chairwoman Mary Neumayr told reporters during a conference call that definitions in the current rules were the “subject of confusion.”

The proposed changes, she said, do in fact eliminate the terms “cumulative” and “indirect,” in favor of more simplified language.

Effects must be “reasonably foreseeable” and require a “reasonably close causal relationship” to the proposed action, she added. “It does not exclude considerations of greenhouse gas emissions,” she said, pointing to parallel EPA proposals for new pollution limits on coal and gas power plants as context.

Last summer, CEQ issued proposed guidance on greenhouse gas reviews in project permitting. The nonbinding document gave agencies broad authority when considering emissions (Greenwire, June 21, 2019).

Environmentalists scoffed and said the proposed guidance failed to incorporate the latest climate science and look at how projects could be more resilient in the face of severe weather and sea-level rise.

The proposed NEPA rules released today include provisions to codify the proposed guidance, which has also been years in the making.

Other provisions

Senior administration officials sought to downplay the effect of the proposed NEPA rules by noting the underlying statute will remain the same.

“If it required NEPA yesterday, it will require NEPA under the new proposal,” an official said when asked how the changes might apply to pipelines like Keystone XL.

And yet the proposed changes could alter the “threshold consideration” that triggers NEPA review. The proposal would exclude projects with minimal federal funding or “participation.”

The Trump plan also proposes restricting an environmental impact statement to two years and an environmental assessment to one.

Neumayr said the average EIS takes 4 ½ years and in some cases longer. Democrats have disputed those timelines. Further, just 1% of all federal actions require an EIS, they argue.

The proposal would also require one agency to take the lead on permitting and require agency officials to “timely resolve disputes that may result in delays.”

In general, the plan calls for environmental documents to be “concise” and “serve their purpose of informing decision makers.”

Both Interior Secretary David Bernhardt and EPA Administrator Andrew Wheeler, whose agency moved to rewrite coal power plant wastewater limits in separate actions, were at the White House for the announcement.

Reaction

An onslaught of critics have said changes to NEPA rules could be the administration’s most far-reaching environmental rollback, and state attorneys general have mounted a legal challenge to related energy actions as well.

The League of Conservation Voters declared the administration was again trying to “sell out the health and well-being of our children and families to corporate polluters.”

On Capitol Hill, House Speaker Nancy Pelosi (D-Calif.) said during a news conference the administration would “no longer enforce NEPA.”

“This means more polluters will be right there, next to the water supply of our children,” she said. “That’s a public health issue. Their denial of climate, they are going to not use the climate issue as anything to do with environmental decisionmaking.”

Sen. Sheldon Whitehouse (D-R.I.) echoed the sentiment, saying he didn’t need any more proof that the fossil fuel industry had hardwired the Trump administration “but we got it anyway.”

Energy companies, including firms focused on renewable energy development, are welcoming the “clarity” of the proposed NEPA rules, even as debates continue over a clean electricity standard in federal climate policy.

“The lack of clarity in the existing NEPA regulations has led courts to fill the gaps, spurring costly litigation across the sector, and has led to unclear expectations, which has caused significant and unnecessary delays for infrastructure projects across the country,” the Interstate Natural Gas Association of America said in a statement.

Last night, the American Wind Energy Association said NEPA rules have caused “unreasonable and unnecessary costs and long project delays” for land-based and offshore wind energy and transmission development.

Trump has famously attacked the wind energy industry for decades, dating back to his opposition to a Scottish wind turbine near his golf course.

The president today said he won’t stop until “gleaming new infrastructure has made America the envy of the world again.”

When asked whether he thought climate change was a “hoax,” as he once tweeted, he said no. “Nothing’s a hoax about that,” he said.

The president said there’s a book about climate he’s planning to read. He said, “It’s a very serious subject.”

 

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