States scramble for Colorado River deal Presented by Chevron

With help from Anthony Adragna, Alex Guillén, Ben Lefebvre, Zack Colman and Eric Wolff

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PROGRAMMING NOTE: Morning Energy will not publish from Dec. 24-Jan 1. Our next newsletter will publish on Jan. 2.

STATES SCRAMBLE FOR COLORADO RIVER DEAL: Western states are facing a late-January deadline to finalize a historic deal aimed at staving off a water crisis for the millions of people who depend on the Colorado River. If successful, Arizona, California and Nevada's collaboration would represent one of the most significant steps ever taken in the country to adapt to climate change — even as political leaders in the region avoid using the "C" term, Pro's Annie Snider reports this morning.

The latest federal forecasts paint a dire picture for the river. Declining water levels as Lake Mead, the reservoir supplying Arizona, Nevada and Southern California, are threatening to trigger mandatory distribution cuts. The states agreed to the principles of a plan to stave off that scenario more than three years ago, but have yet to finalize it. The Trump administration is now trying to push things along, and Bureau of Reclamation Commissioner Brenda Burman gave water managers till the end of January to finish up — or the Interior Department will intervene.

There's been surprisingly little debate over the idea that the West is facing a future with less water, even from staunchly Republican leaders in the region. Ted Kowalski, who previously served as Colorado's lead negotiator, said community leaders have tried to avoid the political divisiveness associated with climate change, but that there's no denying the region's conditions have been altered. "We've seen the worst 18-year period in 100 years. Either we're living in an unlucky time or something is different," he said. Read the story.

HAPPY HOLIDAYS! I'm your host, Kelsey Tamborrino. As we close out this year, I want to thank you, ME readers, for spending so many of your mornings with me. Christopher Guith of the U.S. Chamber of Commerce's Global Energy Institute correctly named North Carolina as the state that has supplied the most Christmas trees for the White House Blue Room over the years: 13. Now, for the last trivia question of 2018: Who was the last speaker that was younger than Paul Ryan? Send your tips, energy gossip and comments to [email protected], or follow us on Twitter @kelseytam, @Morning_Energy and @POLITICOPro.

HOLIDAY PRESENTS FROM ME: You better watch out, you better not cry, ME's handing out gifts and we hope these jokes fly.

— For Ryan Zinke, a new sled. He'll have plenty of time to hit the toboggan run at Great Northern Veterans Peace Park when he returns to Whitefish, Mont.

— For Andrew Wheeler, a supply of Ritz-Carlton lotion to combat the dry air in the EPA administrator's office.

— For Rick Perry, an "I visited all 17 National Labs and all I got was this T-shirt" shirt.

— For President Donald Trump, a golden rake to prevent forest fires.

— For Alexandria Ocasio-Cortez, a Fireside Chat podcast to tell Americans about the Green New Deal.

— For Cheryl LaFleur: [Joke not approved due to lack of quorum.]

— For Rep. Elijah Cummings, Scott Pruitt's phone number so he can call him back to the Hill.

— For Rep. Frank Pallone, a new climate committee, one that doesn't involve taking E&C's jurisdiction.

— For Raúl Grijalva, a cookbook of patty melt recipes.

— For Joe Manchin, a tightrope to practice walking a fine line as ranking Democrat on the Energy committee.

THE STORY OF RYAN ZINKE: The Interior secretary's problems that led to his downfall stemmed from the same issues that also damaged several members of Trump's Cabinet: Like Pruitt and HHS Secretary Tom Price before him, Zinke was a relatively low-profile politician who lacked preparation for the close scrutiny he encountered as a senior administration official. A POLITICO review of Zinke's rapid rise from Montana politics to the Cabinet showed a confident ex-Navy SEAL with charm and ambition who enjoyed flouting the rules — a trait that drew little attention under Montana's largely self-regulating ethics laws, but triggered a swath of investigations in Washington, POLITICO's Ben Lefebvre and Nick Juliano report in this deep dive into Zinke’s time before and after heading the department.

And check out a video on Zinke's nearly two years atop Interior.

DOCUMENT DUMP: Zinke may be closing out his time at the department, but his move a year ago to promise to omit Florida from Interior's offshore drilling plan has hit renewed scrutiny. New Jersey Attorney General Gurbir Grewal said Thursday that Interior has begun turning over documents related to its decision to exempt the Sunshine State, Pro's Danielle Muoio reports.

New Jersey is one of the many states that decried Florida's lone exemption, arguing that an oil spill in state waters would hurt the state's $44 billion coastal tourism industry. "If you have actual evidence that justifies treating Florida differently than New Jersey, then turn it over," Grewal said at a Thursday press conference. "But if you don't, then exempt New Jersey from offshore drilling as well." Pro's Zack Colman reported earlier this week that the Trump administration is preparing to unveil its five-year drilling plan in January.

SHUTDOWN INCHES CLOSER: The House passed a new stopgap spending bill Thursday evening, this time containing $5.7 billion for border security and about $8 billion in disaster aid. The bill's passage comes as the president made clear Thursday he wouldn't sign any spending bill without border wall funding — increasing the likelihood of a partial government shutdown come midnight.

If the Senate rejects the House's funding proposal, which is likely, Democratic leaders say their next step is to urge House leaders to call up the Senate-passed measure, Pro's Jennifer Scholtes reports. Senate Majority Leader Mitch McConnell is expected to put the amended House measure, H.R. 695 (115), to a vote today, before government funding runs out.

What to expect: If the government does partially shut down, agencies including EPA and Interior would be affected, while the Energy Department and Army Corps of Engineers wouldn't have to worry. (Congress passed their fiscal 2019 funding levels in September as part of a minibus package.)

In preparation, EPA released a contingency plan laying out how the agency will evaluate more than 800 Superfund sites to decide how to proceed in the case of a shutdown, as Pro's Caitlin Emma reports. And in an email set out to staff late Thursday afternoon, Wheeler also said EPA has "sufficient carryover funds" and will remain open the week of Dec. 24 even if the stop-gap measure in Congress goes nowhere, Pro's Eric Wolff reports. Under the umbrella of the Interior Department, National Park Service sites and wildlife refuges would remain open. But services provided by NPS would likely stop.

The entrance to the office of House Speaker Paul Ryan is decorated for the holidays as Congress tries to pass legislation that would avert a partial government shutdown, at the Capitol in Washington, Thursday, Dec. 20, 2018. (AP Photo/J. Scott Applewhite)

LAWMAKERS REACT TO LEE'S LANDS OBJECTION: Utah Sen. Mike Lee did not gain any friends Wednesday night when he objected to a public lands package that included permanent reauthorization of the Land and Water Conservation Fund, fellow Utah lawmaker Rob Bishop told reporters. "There's quite a few people in Utah talking to him today," Bishop said, though he declined to identify any of them.

A CLIMATE COMMITTEE CHAIR? Rep. Kathy Castor confirmed to ME that House Minority Leader Nancy Pelosi has approached her about leading a select committee dedicated to addressing climate change, as POLITICO reported earlier this month. "We're talking about it," she said. "It's not official." The appointment of Castor would place an Energy and Commerce Committee veteran in charge of the panel that advocates want to craft bold Green New Deal legislation. Rep. Jim McGovern, incoming Rules Committee Chairman, said the panel remains a " work in progress." Pelosi's office did not respond to a request for comment.

7 WORRIED MEN: A group of seven House Republicans — most of whom are departing Congress — wrote to Zinke on Thursday urging him against rushing to open the Arctic National Wildlife Refuge to oil and gas development, Pro's Anthony Adragna reports. The letter follows a BLM announcement that it would issue a draft environmental impact statement next week.

TO THE PRESIDENT: The House approved a bill, S. 2200 (115), Thursday to reauthorize the National Drought Information System program, which tracks drought across the country, as well as a spate of other weather monitoring programs, Annie reports.

— "California is aiming for 100 percent clean energy. But Los Angeles might invest billions in fossil fuels," Los Angeles Times.

— "Climate team, and its boss, just got harder to find at top health agency," The New York Times.

— "Trump conservation pick triggers question of 'favoritism or connections,'" The Guardian.

— "Powerless: What it looks and sounds like when a gas driller overruns your land," Charleston Gazette-Mail and ProPublica.

— "Rising waters are drowning Amtrak's Northeast Corridor," Bloomberg.

— "Murray Energy, MSHA unable to settle suit over pattern violator rule for mines," S&P Global Market Intelligence.

SEE YOU NEXT YEAR!

Follow us on Twitter Matt Daily @dailym1



Kelsey Tamborrino @kelseytam



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Eric Wolff @ericwolff