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“Burgum’s actions on offshore wind appear to be motivated by the personal financial interests of those in the administration, not our collective national interests."
A week after the US Department of the Interior said it was immediately halting five offshore wind projects in the interest of "national security," a watchdog group told congressional committees Monday that the move is "not legally defensible" and raises "significant" questions about conflicts of interest concerning a top DOI official's investments in fossil gas.
Timothy Whitehouse, executive director of Public Employees for Environmental Responsibility (PEER), wrote to the top members of the Senate Energy and Natural Resources Committee and the House Committee on Natural Resources regarding the pause on projects off the coasts of Virginia, New York, Rhode Island, Connecticut, and Massachusetts—projects that account for billions of dollars in investment, employ thousands of people, and generate sustainable energy for roughly 2.5 million homes and businesses.
The announcement made by Interior Secretary Doug Burgum last week pertained to "five vague, perfunctory, cookie-cutter orders" halting the projects, wrote Whitehouse, but PEER is concerned that the orders were issued to evade the Congressional Review Act (CRA), under which the action to halt the projects likely constitutes a "major rule."
Whitehouse explained:
Under the CRA, a rule that meets any one of three criteria (an annual effect on the economy of $100,000,000 or more; a major increase in costs or prices for consumers, individual industries, federal, state, or local government agencies, or geographic regions; or in pertinent part significant adverse effects on competition, employment, investment, productivity, or innovation) is a major rule. Interior’s pause likely meets all three.
As a major rule under the CRA, the pause cannot take effect until at least 60 days after BOEM provides Congress the requisite notification and report under the CRA, which, according to GAO’s database, has not yet occurred. Congress must use its oversight authority to unveil the truth and, as appropriate, and to enforce the rule of law.
He said in a statement that “Burgum’s move is designed to bypass all congressional and public input."
The CRA states that a rule is "the whole or a part of an agency statement of general or particular applicability and future effect designed to implement, interpret, or prescribe law or policy or describing the organization, procedure, or practice requirements of an agency.”
Press statements by the DOI and by Burgum last week were "statements of general applicability and imminent future effect, designed to implement policy," wrote Whitehouse, who also said the interior secretary embarked on "a coordinated rollout with Fox News entities."
On December 22, Fox anchor Maria Bartiromo asked Burgum at 8:00 am Eastern, “What next action did you want to tell us about this morning?” Five minutes later, FoxNews.com published its first story on Burgum's orders, citing a press release that had not yet been made public and including a quote from the secretary about the "emerging national security risk" posed by the offshore wind projects.
"If last week’s actions are allowed to stand, future presidents will have unchecked authority under the guise of national security to target federal leases related to entire disfavored energy industries for political purposes."
Burgum's announcement to Fox came at least one to two hours before Bureau of Ocean Energy Management (BOEM) acting Director Matthew Giacona provided the orders to the lessees running the five wind projects.
Further, wrote Whitehouse, "Burgum’s voluminous public comments in the hours and days since the pause further show the true purpose of Interior’s singular action."
"The national security pretext quickly gives way to broad and spurious talking points about the 'Green New Scam,' how 'wind doesn’t blow 24-7' (evincing Burgum’s seeming unfamiliarity with energy storage technologies), and unyielding promotion of liquified natural gas projects," wrote Whitehouse.
Aside from the alleged illegality of Burgum's order, PEER pointed to Giacona's potential conflicts of interest with BOEM operations and specifically with halting wind projects. Giacona is a "diligent filer" of financial disclosure forms required by the Ethics in Government Act, noted Whitehouse—but those forms point to potential benefits he may reap from shutting down offshore wind infrastructure.
Giacona reported his purchase of interests in the United States Natural Gas Fund (UNG) on September 16. The fund tracks daily price movements of "natural" gas delivered at the Henry Hub in Louisiana and is subject to regulation by the Commodity Futures Trading Commission.
"Accordingly, a government employee who has an interest in UNG also has a potential conflict of interest with the underlying holdings of UNG (currently primarily natural gas futures contracts at the Henry Hub)," wrote Whitehouse.
PEER does not know whether Giacona continues to hold a financial interest in UNG or whether the offshore wind pause will have a "direct and predictable effect on a financial interest in UNG," but Whitehouse noted that Burgum and DIO have entwined the pause with the promotion of liquefied natural gas.
"It is disconcerting that Mr. Giacona temporarily had even a de minimis financial interest in natural gas futures while also leading the agency that manages the development of natural gas resources on the outer continental shelf," wrote Whitehouse, adding that Giacona also sold interests in the United States Oil Fund on September 3, while overseeing BOEM.
Based on Giacona's investments, said Whitehouse, “Burgum’s actions on offshore wind appear to be motivated by the personal financial interests of those in the administration, not our collective national interests. This is another misguided step in transforming the federal government into a franchise of the fossil fuel industry.”
“On public lands across the United States, the Department of the Interior has tens of thousands of additional active leases related to oil, gas, wind, solar, and geothermal production and mining for energy-related minerals," he added. "If last week’s actions are allowed to stand, future presidents will have unchecked authority under the guise of national security to target federal leases related to entire disfavored energy industries for political purposes."
The warning of litigation to plastics makers comes as EPA is accused of failing to adequately test for "forever chemicals" in pesticides.
A newly reported warning to the plastics industry and a complaint filed by an environmental nonprofit this week highlighted how companies and the U.S. government have endangered the public with "forever chemical" contamination.
Per- and polyfluoroalkyl substances (PFAS) are commonly called forever chemicals because they remain in the human body and environment for long periods. They have been used in products such as firefighting foam, food packaging, stain-resistant fabrics, and pesticides, and linked to various health problems including cancers and issues with reproduction.
The New York Times reported Tuesday that attorney Brian Gross recently told plastics executives that looming corporate liability litigation related to PFAS—some of which has already begun—could "dwarf anything related to asbestos," and lead to "astronomical" costs.
As the newspaper detailed:
"Do what you can, while you can, before you get sued," Mr. Gross said at the February session, according to a recording of the event made by a participant and examined by The New York Times. "Review any marketing materials or other communications that you've had with your customers, with your suppliers, see whether there's anything in those documents that's problematic to your defense," he said. "Weed out people and find the right witness to represent your company."
A spokesman for Mr. Gross' employer, MG+M The Law Firm, which defends companies in high-stakes litigation, didn't respond to questions about Mr. Gross' remarks and said he was unavailable to discuss them.
While Gross declined to comment, Emily M. Lamond, who focuses on environmental law at the firm Cole Schotz, told the Times that "to say that the floodgates are opening is an understatement."
"Take tobacco, asbestos, MTBE, combine them, and I think we're still going to see more PFAS-related litigation," Lamond said, referring to methyl tert-butyl ether. The newspaper noted that "together, the trio led to claims totaling hundreds of billions of dollars."
Back in 2005, the U.S. Environmental Protection Agency announced that DuPont would "pay $10.25 million—the largest civil administrative penalty EPA has ever obtained under any federal environmental statute—to settle violations alleged by EPA" related to PFAS and commit to $6.25 million for supplemental environmental projects.
The EPA has also taken more recent actions under President Joe Biden's "PFAS Strategic Roadmap," including designating perfluorooctanoic acid (PFOA) and perfluorooctanesulfonic acid (PFOS) as hazardous substances under the Superfund law and setting the country's first-ever drinking water standards for those and other forever chemicals.
The Biden administration's steps, as the Times pointed out, are expected to fuel future litigation. Green groups have called the EPA's recent moves progress but not nearly enough—and as Capital B reported earlier this month, there are concerns that PFAS cleanup could disproportionately burden communities home to the working class and people of color.
On top of calls to go further with regulation and cleanup efforts, the EPA is facing pressure to retract what Public Employees for Environmental Responsibility (PEER) called "false statements" in a 2023 agency research memo and press release. The group filed a formal complaint with the EPA on Tuesday demanding a correction.
"This memo is some of the worst science I have seen come out of the agency," said PEER science policy director Kyla Bennett, a scientist and former EPA attorney, in a statement. "The fact that EPA claimed it could not find any PFAS in samples deliberately spiked is incredibly troubling."
"Scientists around the world are finding PFAS in pesticides from active and inert ingredients, contamination from fluorinated containers, and unknown sources," she continued. "EPA's claim that it 'did not find any PFAS' in these pesticides is not only untrue but lulls the public into a false sense of security that these products are PFAS-free."
Asked about PEER's submission by journalist Carey Gillam, the agency—which has 90 days to respond—said that "because these issues relate to a pending formal complaint process, EPA has no further information to provide."
Gillam reported that "joining in the allegations is environmental toxicologist Steven Lasee, who authored the 2022 study that the EPA challenged. Lasee is a consultant for state and federal government agencies on PFAS contamination projects and participated as a research fellow for the EPA's Office of Research and Development from February 2021 to February 2023."
As Gillam detailed at New Lede and The Guardian:
Amid the uproar over his paper and the subsequent EPA testing, Lasee sought to reproduce his initial results but was unable to do so. That created enough doubt about his own methodology that he sought to retract his paper.
Now, after seeing the EPA's internal testing data showing the agency did find PFOS and other types of PFAS in pesticides but failed to disclose those results, he has a new level of doubt—over the credibility of the agency.
"When you cherrypick data, you can make it say whatever you want it to say," Lasee said.
PEER's Bennett similarly said that "you don't get to just ignore the stuff that doesn't support your hypothesis. That is not science. That is corruption. I can only think that they were getting pressure from pesticide companies."
Public health groups are "fully committed to taking all steps available to assure that the Inhance fluorination no longer produces dangerous PFAS which put workers, consumers, and communities at risk."
As public health experts raise alarm over the prevalence of highly toxic "forever chemicals," as per- and polyfluoroalkyl substances or PFAS are commonly known, one nonprofit investigative journalism outlet warned Saturday that a recent ruling could further tie up the regulatory process for the chemicals and other harmful substances.
"This ruling is likely to impede already excruciatingly slow efforts to regulate the presence of health harming chemicals in products people use in every part of their lives," said Watershed Investigations of a decision handed down earlier this month by the right-wing Fifth Circuit Court of Appeals in New Orleans.
The case is one of several involving Inhance Technologies, a Houston-based company that manufactures an estimated 200 million plastic containers each year using the fluorination process, which creates perfluorooctanoic acid (PFOA), a toxic PFAS compound.
In 2020, the Environmental Protection Agency (EPA) began requiring companies to submit notices regarding "significant new uses" of PFAS under Section 5 of the Toxic Substances Control Act (TSCA), as officials identified the chemicals as an "urgent public health and environmental issue" due to their links to cancer, liver and kidney disease, reproductive harms, and other serious health problems.
The agency found that PFAS were leaching into pesticides held in containers produced by Inhance.
In December, the agency prohibited Inhance from using the fluorination process because it had identified PFAS as an "unavoidable aspect" of its operations. Inhance sued the EPA soon after.
Inhance said that ending its fluorination practices would ultimately force the company to shut down and fought the EPA's order, arguing that it had created its plastic containers in the same way for decades, and therefore was not subject to the TSCA provision regarding "significant new use."
The EPA argued it only became aware of Inhance's process in 2020, but the conservative court disagreed that it could regulate the company under the "new use" rule—even as the judges acknowledged the company's products are harmful.
"The court did not dispute EPA's underlying decision that this is a danger to human health, what they did was say it's not a new use, which I think is wrong... but this case isn't over by any stretch," Kyla Bennett, a former EPA official who is now director of science policy for Public Employees for Environmental Responsibility (PEER), told The Guardian Saturday.
The judges said the EPA would have to regulate Inhance's containers under Section 6 of the TSCA, which it said requires the EPA to take into account the economic impact any regulations would have on Inhance.
PEER noted that Section 6 also states that health risks should be considered.
"The court erroneously limits EPA's authority to issue significant new use rules (SNURs) under the TSCA, seriously weakening this important tool for managing chemical risks to health and the environment which has been a mainstay of the TSCA program since the law's enactment in 1976," the group said.
Another case is playing out in the U.S. District Court for the Eastern District of Pennsylvania, where the EPA sued Inhance in 2022 for violating the TSCA. The Center for Environmental Health and PEER also took legal action against Inhance for the same reason, and against the EPA last month for withholding test data regarding PFAS in plastic containers.
"There are several paths forward," said PEER, "and our groups are fully committed to taking all steps available to assure that the Inhance fluorination no longer produces dangerous PFAS which put workers, consumers, and communities at risk."