American Fuel & Petrochemical Manufacturers

How This Oil Refiners Group Rallied GOP Governors' Support for Trump’s Rollback of Auto Standards

Read time: 6 mins
Trump in front of a refinery

As the Trump administration worked to revise and relax federal fuel economy and emissions standards for cars and light trucks, an oil refiners trade group worked connections with Republican governors to rally support for the proposed rollback.

Emails obtained by Documented, a watchdog group that tracks corporate influence in government, revealed that the American Fuel & Petrochemical Manufacturers (AFPM) were actively recruiting Republican Governors to sign onto a public comment letter supporting the weaker CAFE (corporate average fuel efficiency) standards, while also “shopping around” a pre-written op-ed with language borrowed from the American Energy Alliance, a free market advocacy group run by a former Koch Industries lobbyist.  

GOP Senators, Fueled by Industry Cash, Propose Bill to Expedite Small Scale LNG Exports

Read time: 7 mins
LNG tanker

U.S. Senator Marco Rubio (R-FL) and U.S. Senator Bill Cassidy (R-LA) have introduced a bill to fast-track the regulatory process for the export of small-scale liquefied natural gas (LNG).

The bill, titled “Small Scale LNG Access Act,” was introduced on October 18 and calls for amending the “Natural Gas Act to expedite approval of exports of small volumes of natural gas.” The proposed legislation follows in the footsteps of the U.S. Department of Energy's (DOE) proposed rule which would assume that all U.S. small-scale exports of LNG, with the gas mostly obtained via hydraulic fracturing (“fracking”), is in the “public interest” as defined by the Natural Gas Act.   

Former Head of Energy, Environment at ALEC, Todd Wynn, Hired by Trump Interior Department

Read time: 9 mins
Todd Wynn

Todd Wynn, former Director of the American Legislative Exchange Council (ALEC)'s Energy Environmental and Agriculture Task Force, was recently hired by President Donald Trump to work as a senior-ranking official in the U.S. Department of the Interior. 

DeSmog discovered the hire via LinkedIn, and Wynn says on his profile page that he began at Interior in October.

Wynn worked at ALEC from 2011 to 2013 and then became Director of External Affairs for Edison Electric Institute (EEI), a trade association representing electric utility companies nationwide. Prior to his position at ALEC, Wynn served as Vice President of the Cascade Policy Institute, a part of the State Policy Network (SPN), a national chain of state-level conservative and corporate-funded think-tanks which was started as an ALEC offshoot.

ALEC's critics have described the organization, a national consortium of mostly Republican Party state legislators and corporate lobbyists, as a “corporate bill mill.” That's because its lobbyist members convene several times a year with legislators to produce what it calls “model bills” which have ended up as actual legislation thousands of times since the organization's founding in 1973.

Purposeful Distraction? Unpacking the Oil Refiners' "Bomb Trains" Lawsuit vs. Warren Buffett's BNSF

Read time: 5 mins

On March 13, American Fuel & Petrochemical Manufacturers (AFPM) — the oil refiners' trade association — sued oil-by-rail carrying giant Burlington Northern Santa Fe (BNSF) for allegedly violating its common carrier obligation under federal law. A DeSmogBlog investigation has revealed there may be more to the lawsuit than initially meets the eye.

Filed in the U.S. District Court for the Southern District of Texas, Houston Division, AFPM sued BNSF “for violating its common carrier obligation by imposing a financial penalty” for those carrying oil obtained via hydraulic fracturing (“fracking”) in North Dakota's Bakken Shale basin and other hazardous petroleum products in explosion-prone DOT-111 rail cars.

AFPM's beef centers around the fact that BNSF began imposing a $1,000 surcharge for companies carrying explosive Bakken fracked oil in DOT-111 cars, as opposed to “safer” CPC-1232 cars, at the beginning of 2015.

The Warren Buffett-owned BNSF did so, argues AFPM, illegally and without the authority of the federal government.

“This $1,000 surcharge on certain PHMSA-authorized rail cars breaches BNSF’s common carrier duty to ship hazardous materials under the auspices of PHMSA’s comprehensive regime governing hazardous materials transportation,” wrote AFPM's legal team, featuring a crew of Hogan Lovells attorneys. “Allowing railroads to penalize companies that ship crude oil in federally-authorized rail cars would circumvent PHMSA’s statutory and regulatory process for setting rail car standards for hazardous materials shipments.”

Upon a quick glance, it seems like a fairly straight-forward case of federal law and an intriguing example of an intra-industry dispute. But as recent history has proven, the devil is in the details.

North Dakota's Meaningless New Bakken Oil Regulations Will Keep Bomb Trains Rolling

Read time: 5 mins
Oil train

New regulations purported to make Bakken crude safer for transport instead allow business as usual for the oil and rail industries moving explosive Bakken crude oil in unsafe DOT-111 rail cars.

The regulations announced Tuesday by the North Dakota Industrial Commission state that: “The goal is to produce crude oil that does not exceed a vapor pressure of 13.7 pounds per square inch (psi).”

There are two important things to note about this goal.

The first is that the vapor pressure of the oil that exploded in Lac-Megantic, Quebec, resulting in the death of 47 people, was under 10 psi and was described as being “as volatile as gasoline.” So the new regulations will permit oil that is significantly more volatile than the oil in the Lac-Megantic disaster to continue to be shipped by rail. 

The second important thing to note is that almost all of the oil that the industry and regulators have sampled in the past year has been well below 13.7 psi. Of 99 samples taken in the Pipeline and Hazardous Materials Safety Administration’s sampling study, 94 were below 13.7 psi and the average psi for that study was 12.3 psi.

Meeting Logs: Obama White House Quietly Coddling Big Oil on “Bomb Trains” Regulations

Read time: 9 mins

When Richard Revesz, Dean Emeritus of New York University Law School, introduced Howard Shelanski at his only public appearance so far during his tenure as Administrator of the White House Office of Information and Regulatory Affairs (OIRA), Revesz described Shelanski as, “from our perspective, close to the most important official in the federal government.”

OIRA has recently reared its head in a big way because it is currently reviewing the newly-proposed oil-by-rail safety regulations rolled out by the Department of Transportation (DOT) and Pipeline and Hazardous Materials Safety Administration (PHMSA).   

During his presentation at NYU, Shelanski spoke at length about how OIRA must use “cost-benefit analysis” with regards to regulations, stating, “Cost-benefit analysis is an essential tool for regulatory policy.”

But during his confirmation hearings, Shelanski made sure to state his position on how cost-benefit analysis should be used in practice. Shelanski let corporate interests know he was well aware of their position on the cost of regulations and what they stood to lose from stringent regulations. 

Regulatory objectives should be achieved at no higher cost than is absolutely necessary,” Shelanski said at the hearing.

Subscribe to American Fuel & Petrochemical Manufacturers