Keystone XL public comment period begins — USDA launches climate hubs Presented by National Clean Energy Week

With help from Andrew Restuccia, Talia Buford, Darren Goode and Kathryn A. Wolfe

LADIES AND GENTLEMEN, START YOUR ENGINES: The 30-day public comment period on Keystone XL begins today and run until March 7, the State Department says. The comments will be made public. Remember, eight federal agencies will also comment on the State Department’s work before the national interest determination gets kicked up to Secretary of State John Kerry. And the decision is likely ultimately headed to President Barack Obama’s desk. The docket for commenting will be at http://www.regulations.gov


To be a fly on that wall: Obama, Kerry and Vice President Joe Biden will meet this afternoon in the Oval Office, but it’s not clear whether they will talk Keystone. Obama is also scheduled to meet earlier in the day with Senate Democrats. And Kerry will appear in an interview on CNN's "The Lead" at 4 p.m. today, another potential platform to talk Keystone.

KAINE: KXL NOT IN NATIONAL INTEREST: Count Sen. Tim Kaine (D-Va.) as having weighed in. Kaine, who has spoken against Keystone XL before, said yesterday: “I believe the key environmental impact of this project is not the literal construction but rather the market signal that construction would send. We currently have the tools to build an energy strategy to get cleaner tomorrow than today. … In my view, there is now enough evidence to conclude that construction of this pipeline is not in America’s long-term interest.”

CBC — REGULATORS ‘BURIED’ REPORT CRITICAL OF TRANSCANADA OVERSIGHT: CBC News reports that regulators "effectively buried" a report on a TransCanada natural gas pipeline that exploded in 2009 and destroyed five acres of woods. “In an early 2011 draft report about the incident, the National Energy Board criticized TransCanada, the operator of the line owned by its subsidiary NOVA Gas Transmission, for ‘inadequate’ field inspections and ‘ineffective’ management. Final reports are typically published by the investigative bodies, either the NEB or the Transportation Safety Board, but this report wasn’t released until this January when the CBC obtained it through an access-to-information request. The NEB said the delay was caused by an ‘administrative error’ when an employee left without transferring the file over.” CBC: http://bit.ly/1e06faj

THE NATION — ‘INDEPENDENT’ REPORT PAID FOR BY ALBERTA GOVERNMENT: A report issued last August by the consulting firm IHS CERA concluding that Keystone XL would not have a “material impact” on U.S.. greenhouse gas emissions was paid for by the Alberta government, The Nation writes based on documents obtained under a freedom of information law. The Nation writes that Alberta paid $325,000 to IHS CERA, and cites other budget documents showing another $545,000 in payments. Alberta’s government has been a big supporter of the project, with Premier Allison Redford repeatedly traveling to Washington to discuss the pipeline with officials. The Nation: http://bit.ly/1e1yR2X

IHS disputes story: In an email to ME late last night, IHS said the piece “is factually inaccurate, misleading, deliberately misrepresents IHS research, and misquotes IHS by slicing quotations in half.” The firm notes that the report was part of its "Oil Sands Dialogue," a subscription service to which the Alberta government is one of a number of participants. This particular report, a spokesman said, was based on previous research and was not directly weighed in on by Alberta or other subscribers. The other payments, IHS says, were for "analytic work on investment costs." IHS's full response: http://bit.ly/1in9VaJ

Even more reports about Keystone: The Washington Post notes a Barclays report from Monday that concluded the environmental analysis released Friday “does not, in our view, necessarily expedite the approval of the proposed Keystone XL permit; in fact, we believe that the final decision-making process will likely be protracted and final presidential approval remains in doubt.” Barclays report: http://wapo.st/1cSOtKr. WaPo: http://wapo.st/1n9nlrH

HAPPY WEDNESDAY and welcome to Morning Energy. Send your energy news to [email protected], and follow on Twitter @ alexcguillen, @ Morning_Energy and @ POLITICOPro.

AGRICULTURE DEPARTMENT LAUNCHES CLIMATE HUBS: The Agriculture Department will unveil today the creation of seven Regional Hubs for Risk Adaptation and Mitigation to Climate Change as part of the president’s climate action plan. The hubs — at locations in Iowa, New Hampshire, North Carolina, Colorado, Oklahoma, Oregon and California — are meant to help farmers and rural communities deal with risks like fires, floods, drought and invasive species. “USDA's Climate Hubs are part of our broad commitment to developing the next generation of climate solutions, so that our agricultural leaders have the modern technologies and tools they need to adapt and succeed in the face of a changing climate,” Agriculture Secretary Tom Vilsack said in a statement.

SPEAKING OF AGRICULTURE — FARM BILL CLEARS CONGRESS: The long-tortured farm bill cleared Congress on Tuesday, ending a two-year struggle that split the old farm-food coalition as never before and dramatized the growing isolation of agriculture and rural America in an ever more urban House. David Rogers has more: http://politi.co/1brL30p

— Groups including the American Council on Renewable Energy, National Rural Electric Cooperative Association, Growth Energy, Biomass Power Association hailed the bill's passage and its funding for programs that support rural energy, biorefineries, biomass and more.

BAUCUS FLOOR VOTE COMING THURSDAY: The Senate tomorrow is scheduled to take up Sen. Max Baucus’s nomination to be ambassador to China, setting the stage for a game of musical chairmanship late this week or next week. Baucus cleared committee yesterday. Once confirmed, Energy and Natural Resources Chairman Ron Wyden is expected to take over Baucus’s chair at the Finance Committee, and Sen. Mary Landrieu will likely take the gavel at the energy panel.

— House Energy and Commerce Chairman Fred Upton told reporters Tuesday he would chat with Landrieu soon about their respective committee agendas. "I'm intending to sit down with her in the next two or three weeks … to talk about some of her agenda items and where we can work together," Upton said.

C40 SAYS CITIES RAMPING UP CLIMATE ACTIONS: The C40 Cities Climate Leadership Group will release a report today concluding that cities around the world are increasing their actions to combat climate change. C40 members have nearly doubled the number of actions they are taking since the group first surveyed members two years ago. More cities are now converting streetlights to LEDs, pursuing bike share programs, building waste-to-energy facilities and setting up clean energy finance funds. “By using data to show what works — and what’s possible — cities can inform the global conversation on climate change and contribute to aggressive national targets to reduce emissions,” former Mayor Michael Bloomberg said in a statement. The report: http://bit.ly/1bpAfMX

DOT ANNOUNCES FIRST 'BAKKEN BLITZ' FINES: The Pipeline and Hazardous Materials Safety Administration yesterday fined three oil companies a total of $93,000 for misclassifying hazardous materials found during its new “Bakken blitz” of inspections that were spurred by a rash of oil spills and explosions. According to PHMSA, 11 out of 18 inspections of crude oil in cargo tanks en route to rail loading facilities were improperly classified. “The fines we are proposing today should send a message to everyone involved in the shipment of crude oil: You must test and classify this material properly if you want to use our transportation system to ship it,” Transportation Secretary Anthony Foxx said in a statement.

DOE WON’T RUSH LNG EXPORT PROCESS: In response to statements yesterday from House Republicans that DOE was taking too long to approve LNG export application, spokesman Bill Gibbons said DOE "will continue to diligently process applications and make public interest determinations on a case-by-case basis, carefully considering factors such as the economic, energy security, and environmental impacts." He added: "The Department is committed to doing this right, with a responsible and efficient process."

** A message from the U.S. Chamber’s Institute for 21st Century Energy: We have a plan to unleash an energy revolution in America. Read our Energy Works for US platform, which contains 64 clear recommendations in 9 key areas on how to ensure more efficient, reliable, prosperous and secure American energy. Join the energy revolution at http://www.energyxxi.org/energy-works-for-us. **

ENERGY LAW EXPERTS PREVIEW 2014: Environmental Law Institute President John Cruden, who has been nominated to head up the Justice Department's Environment and Natural Resources Division, will speak at an ELI event today on the major legal issues on energy and the environment the administration faces this year. Other big names participating today include Scott Fulton, who until recently was EPA's general counsel; Gary Guzy, who just departed as deputy director of the White House Council on Environmental Quality; and Sheila Slocum Hollis, a former director of FERC's Office of Enforcement. http://bit.ly/1fNbL4s. Noon, 2200 Pennsylvania Ave. NW

PEBBLE GROUP CHANGES LEADERSHIP: The Pebble Partnership, the entity set up to develop the proposed Pebble Mine in Alaska’s Bristol Bay, has moved CEO John Shively to become chairman of its board of director and chosen attorney Tom Collier of Steptoe & Johnson to become CEO. The changes, Pebble said, are meant to move the project out of the planning phase and into permitting and regulation. Collier was chief of staff and COO at the Interior Department under Secretary Bruce Babbitt until 1995, and has focused on regulatory issues at Steptoe. “John has overseen the tremendous engineering and environmental work to design a mine that can protect the critical salmon fishery in Bristol Bay and we both believe a mine can be built that will meet the high expectations Alaskans have for development,” Collier said.

Scientists urge EPA against mine: Several hundred scientists and professors signed a letter that was given to EPA Region 10 Administration Dennis McLerran yesterday calling on EPA to block any mining in Bristol Bay because of the potential threats to fisheries and the ecosystem. Read: http://politico.pro/LNsqL1

THE POSTMAN ALWAYS RINGS TWICE: From ME’s mailbag:

Izembek: Sen. Lisa Murkowski wants President Barack Obama to "personally reconsider" the Interior Department's rejection of a road through the Izembek National Wildlife Refuge to provide emergency access to a rural community. http://politico.pro/1kP9s2C

TSCA: Reps. Henry Waxman and Paul Tonko want the American Chemistry Council and Safer Chemicals Healthy Families to outline areas where the industry and consumer groups agree on reforming the Toxic Substances Control Act. http://1.usa.gov/1kP8tPS

CHESAPEAKE PICKS UP FORMER OKLAHOMA ENVIRO CHIEF: Chesapeake Energy has hired former Oklahoma Secretary of the Environment Miles Tolbert as associate general counsel for environment, health and safety, beginning Feb. 17. Tolbert was environment secretary from 2003 to 2008; after that he chaired the law firm Crowe & Dunlevy's Environmental Practice Group.

QUICK HITS

— An EPA human resources official was aware as early as 2008 that there were problems with fraudster John Beale. AP: http://wapo.st/1lzwPBc

— EPA and North Carolina officials are probing a major coal ash spill in the state's Dan River. WaPo: http://wapo.st/N0cKVo

— Former Interior Secretary Ken Salazar will tell energy companies today to work harder to convince the public fracking is safe. Fuel Fix: http://bit.ly/1nRsI20

— EPA has given Texas authority over greenhouse gas permitting. AP: http://apne.ws/1lziPY7

— Pennsylvania Gov. Tom Corbett is proposing overturning an executive order blocking new gas leases in state parks and forests. NPR: http://n.pr/1gJKwLJ

— A federal grand jury has issued subpoenas in an investigation into the West Virginia chemical spill. CNN: http://cnn.it/Msauph

— Garrett Graves, the chairman of Louisiana's Coastal Protection and Restoration Authority, will step down on Feb. 17. WWLTV: http://bit.ly/1c1p8Ke

— The Oregon chub is the first fish to be removed from the Endangered Species List. AP: http://huff.to/1lzaOSW

THAT’S ALL FOR ME. See you tomorrow.

** A message from the U.S. Chamber’s Institute for 21st Century Energy: The latest State Department Environmental Impact Statement confirms once again that there is no reason to continue to delay the Keystone XL pipeline. Now that all of the facts are on the table, the Obama Administration must decide whether to continue to let other factors interfere with building Keystone, or to move forward with a project that the vast majority of Americans support. We think the choice is clear. Building much-needed infrastructure like Keystone is a key part of our Energy Works for US platform designed to unleash the energy revolution. To learn more about our platform and to make your voice heard in the State Department’s public comment period on Keystone starting today, visit http://www.energyxxi.org/energy-works-for-us, on Twitter at @Energy21, or on Facebook at www.facebook.com/energyinstitute. **

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