Overnight Energy: EPA watchdog sounds alarm over budget | NJ to rejoin cap-and-trade pact | GOP senator puts hold on Trump energy nominee

View in your browser     EPA'S IG WARNS OF 'SIGNIFICANT CHALLENGE' FROM BUDGET: The Environmental Protection Agency's (EPA) internal watchdog office complained that the Trump administration's proposed budget cuts would create a "significant challenge" to its work. Inspector General Arthur Elkins sent a letter last year to the White House Office of Management and Budget (OMB), outlining his concerns regarding the budget proposal for fiscal 2019, which the administration is still developing and is planning to release next month. "The proposed fiscal year (FY) 2019 budget creates a significant challenge for the Environmental Protection Agency's (EPA's) Office of Inspector General (OIG) and its ability to accomplish its agency oversight mission," he wrote in the September letter, which the office released recently in response to Freedom of Information Act requests. Elkins had asked for $62 million for his office's 2019 operations. But EPA officials instead asked the White House for $41 million, citing OMB's request the budget not go too far above Trump's request for fiscal 2018, which was $37 million, according to the letter and a report Elkins sent to Congress in November. "Such a proposal would substantially inhibit the OIG from performing the duties of the office, including mandatory OIG responsibilities explicitly required by federal law," he said. He also argued that restricting the OIG's request based on Trump's 2018 budget is illogical, since the House rejected the dramatic cuts in its funding bill for the EPA last year. The Senate has not passed its version of the bill. Elkins's office has opened numerous high-profile investigations into EPA Administrator Scott Pruitt, including probing his travel spending and his decision to spend about $25,000 on a soundproof booth for his office. Read more here.   NJ GOV REINSTATES CAP AND TRADE: New Jersey will soon rejoin the Regional Greenhouse Gas Initiative (RGGI) following a decision by the state's new governor to overturn the policy of his predecessor, Chris Christie. Just two weeks into office, Gov. Phil Murphy (D) on Monday signed an executive order to put the state back into a multi state cap and trade agreement that the former governor pulled out of in 2011. Under the program, power plants have to buy carbon credits at a quarterly auction in order to offset their emissions. The proceeds from the auctions are then used by member states to fund renewable energy and energy efficiency projects. Christie had labeled the agreement as "gimmicky," at one time telling reporters the pact has not been "effective in reducing greenhouse gases and is unlikely to be in the future." During a news conference Monday, Murphy said that initially pulling out of the pact "lacked common sense." Read more here.   REPUBLICAN PUTS HOLD ON TRUMP ENERGY NOMINEE: Republican Sen. John Barrasso (Wyo.) is placing a hold on President Trump's nominee to oversee the Department of Energy's environmental cleanup programs. Barrasso said he was placing a hold on Anne White's nomination until the Energy Department committed to stop reselling excess government-owned uranium on the market. Barrasso said the process hurts his state's uranium mining industry. The Energy Department frequently sells excess uranium it owns in order to finance cleanup operations and decommission nuclear sites. "You were unable to give me a firm commitment to immediately halt these barters, something that [Energy Secretary Rick] Perry has told me he wants to do. So for this reason, I am unable to support a confirmation at this time and withhold the confirmation until the department ends its practice of bartering excess uranium," Barrasso told White during a hearing last week. "I think it's preserving good-paying uranium jobs and uranium security in America." The hold could keep the nomination from proceeding to a vote. The Energy and Natural Resources Committee is slated to vote on White's nomination Tuesday. Read more here.   WASHINGTON GOVERNOR REJECTS OIL-BY-RAIL STATION: The governor of Washington on Monday rejected a permit that would allow North America's largest oil-by-rail terminal to be built in the state. Gov. Jay Inslee (D) said that he was in agreement with state regulators who unanimously recommended last month that he reject oil companies Tesoro and Savage's application to build a terminal at the Port of Vancouver. Washington's Energy Facility Site Evaluation Council voted last November to deny the permit and submitted its recommendations to Inslee in December. "The Council has thoroughly examined these and other issues and determined that it is not possible to adequately mitigate the risks, or eliminate the adverse impacts of the facility, to an acceptable level," Inslee said in a letter to the council. "When weighing all of the factors considered against the need for and potential benefits of the facility at this location, I believe the record reflects substantial evidence that the project does not meet the broad public interest standard necessary for the Council to recommend site certification." Vancouver Energy, a joint venture of Tesoro and Savage, had proposed building an energy terminal that would accept crude oil delivered by rail from mid-North America and the Bakken oil fields. It would ship over 131 million barrels of oil per year down the Columbia River. Read more here.   SIERRA CLUB OFFERS SOTU BINGO CARDS: The Sierra Club is offering printable bingo cards featuring things Trump might say in his first State of the Union address Tuesday night. The card's boxes focus mostly on environmental and climate change policies, with options including "pretends coal isn't declining" and "plundering public land." But there are some other liberal causes there, like "Make America Great Again" and "believe me." The green group has five different cards on its website that you can print out to play.   DOE CREATES WORLD'S SMALLEST FIDGET SPINNER: The Department of Energy (DOE) has created new technology that hones in on the energy created by your fingertips. The DOE announced Monday the creation of the worlds smallest fidget spinners, made out of human hair. The toys, which typically twist around on your finger thanks to a mix of gravity and momentum, were created at one of DOE's national labs at Oak Ridge. They were created in part to get kids interested in science. "We were looking for an idea that could inspire young people who are interested in science and also provide a means to reach college and graduate school students who are the next generation of scientists," said the lab's senior staff scientist Adam Rondinone in a statement.   ON TAP TUESDAY I: Pruitt will head to the Senate for a hearing with the Environment and Public Works Committee. It's his first non-budget hearing in the upper chamber since taking charge at the agency last year, so expect everybody's happiness or frustrations from the last year or so to take center stage.   ON TAP TUESDAY II: The Senate Energy and Natural Resources Committee will vote on four nominees for the Interior and Energy departments: Melissa Burnison for Energy's assistant secretary for congressional and intergovernmental affairs, Susan Combs for Interior's assistant secretary for policy, management and budget, Ryan Nelson for Interior's solicitor and Anne White for Energy's assistant secretary for environmental management.   Rest of Tuesday's agenda ... After the confirmation votes, the Energy Committee will hold a hearing on natural hazards and the U.S. Geological Survey and Forest Service's roles in preparing for and dealing with them. The House Natural Resources Committee will hold a hearing on Rep. John Curtis's (R-Utah) bill to ratify Trump's decision rolling back the Bears Ears National Monument. It would codify the two new monuments, provide for a form of tribal co-management for one of them and withdraw the entire former monument area from mineral leasing. The House Science Committee will hold a hearing on the management and priorities of the Department of Energy.   AROUND THE WEB: The Colorado Supreme Court agreed Monday to hear a case regarding whether state regulators should have to prioritize public health and the environment in decisions regarding oil and natural gas drilling, the Longmont Times-Call reports. Pacific Gas & Electric Co. recorded numerous transmission equipment problems shortly before the recent northern California wildfires started, the San Francisco Chronicle reports. Pennsylvania Gov. Tom Wolf (D) said he didn't remember promising to join the state into the Regional Greenhouse Gas Initiative, but he did, StateImpact Pennsylvania reports.   FROM THE HILL'S OPINION SECTION: -Jordan McGillis, a policy analyst at the Institute for Energy Research, argues that cold winters are putting the US energy grid to its limit. -Former U.S. Ambassador to the E.U. from 2006-2007, C. Boyden Gray, says that the "deep pocketed" environmentalists' assault on the US energy sector is pleasing Vladimir Putin.   IN CASE YOU MISSED IT: Check out stories from Monday and the weekend ... -New NJ gov overturns Christie's decision on cap and trade -Washington gov rejects proposed oil-by-rail train station -EPA watchdog: Trump budget cuts would be a 'significant challenge' -GOP senator puts hold on Trump energy nominee -Records show EPA chief's role in removing climate web pages     Please send tips and comments to Timothy Cama, tcama@thehill.com, and Miranda Green, mgreen@thehill.com. Follow us on Twitter: @Timothy_Cama, @mirandacgreen, @thehill         Did a friend forward you this email? Sign up for Energy Newsletters     Forward Energy Newsletters       Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  |  Email to a friend  |  Sign Up for Other Newsletters   The Hill 1625 K Street, NW 9th Floor, Washington DC 20006 ©2016 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.

Overnight Health Care: Senate Dems block 20-week abortion ban | Azar sworn in as HHS chief | Dems demand answers on family planning funds | GOP takes sting out of ObamaCare

View in your browser     Democrats blocked a bill on Monday that would ban most abortions after 20 weeks, a blow to anti-abortion groups that considered its passage a top priority for Congress in 2018. The bill, authored by Sen. Lindsey Graham (R-S.C.), was unable to get the 60 votes necessary to end a filibuster and proceed to a vote, meaning the bill is effectively dead in the upper chamber. Graham's bill had little chance of passing the Senate, where Republicans hold a slim 51-49 majority. It sailed through the House on a party-line vote, 237-189, in October. Most Democrats voted against the bill Monday, except for Sens. Joe Donnelly (Ind.), Joe Manchin (W.Va.) and Bob Casey (Pa.), all who are facing tough reelection bids in November. The legislation would make it illegal for any person to perform or attempt an abortion after 20 weeks of pregnancy, with the possible penalty of five years in prison, fines or both. A woman seeking an abortion would not be penalized. About 20 states already have similar bans. Republicans and anti-abortion activists argue the bill is necessary because advances in science and medicine make it possible for babies born prematurely to survive earlier than in previous years. President Trump, speaking at the March for Life earlier this month, had urged the Senate to pass the bill, telling the "pro-life" movement "we are with you all the way." Read more here.   GOP goes on offense with 20-week abortion vote Anti-abortion activists celebrated when Senate Majority Leader Mitch McConnell (R-Ky.) announced that a bill banning abortions after 20 weeks would be brought to the floor for a vote, even though they knew it was unlikely to pass.   Activists think the 20-week abortion ban is a potent election issue for 2018, particularly against Democrats hailing from red-leaning states who are expected to vote against the bill. "There will be consequences for senators in vulnerable Senate seats in 2018 when the grass roots lets itself be heard at the ballot box," said Marjorie Dannenfelser, president of the Susan B. Anthony List, an anti-abortion advocacy group in Washington. Read more about the politics here.     The Hill Events: Join The Hill on February 14 to explore the role recovery support services can play in combating the nation’s opioid crisis at America’s Opioid Epidemic: Supporting Recovery. RSVP Here.     Azar takes over at HHS President Trump said prescription drug prices will come "rocketing down" under the leadership of Alex Azar, who was sworn in on Monday as the new head of the Department of Health and Human Services. "We have to get the prices of prescription drugs way down and unravel the tangled web of special interest that are driving prices up for medicine and for really hurting patients," Trump said at a ceremony honoring Azar, a former pharmaceutical executive and HHS official. Azar replaces former HHS Secretary Tom Price, who resigned in September after coming under fire for traveling on chartered and military aircraft. "As our new secretary, Alex will continue to implement the administrative and regulatory changes needed to ensure that our citizens get the affordable high quality care that they deserve," Trump said at the White House. Azar will also be charged with curbing the opioid crisis, Trump added. "I think we're going to be very tough on the drug companies in that regard and very tough on doctors in that regard," he said. Read more here.   Dems demand answers on family planning funds Top Democrats on the House's Energy & Commerce committee are demanding the Trump administration explain why it's running months behind in a process to fund organizations that supply reproductive health services to low-income women. There are about 60 days before Title X family planning grants expire for some recipients, and in the past, they've typically been given 60 to 90 days to apply for more funding. The Department of Health and Human Services (HHS) also needs time to review and approve applications. As of Monday, the administration still hasn't released a funding announcement that would detail requirements for receiving the funding. The delays come as the administration is expected to make significant changes to the program to align with its stances on abortion and birth control. Read more here.   Diabetes research at risk due to funding lapse, groups warn Several groups are pleading with Congress to permanently fund diabetes programs, arguing the absence of long-term funding could delay promising new research and harm prevention efforts in vulnerable populations.    So far, lawmakers have provided a funding patch for the two diabetes programs that will last through March 31. But these short-term fixes come at a cost because they "do not provide the sustained ability for these programs to keep moving forward," said Meghan Riley of the American Diabetes Association. "We're relentlessly working to get Congress to come up with a viable strategy to move it forward and finalize it," added Riley, who is the association's vice president of federal government affairs. At issue are two diabetes programs that have received scant attention as lawmakers work to reauthorize other key health-care programs they let expire last year. Read more here.   Congress takes the sting out of ObamaCare Congress is steadily taking the sting out of ObamaCare, removing the most unpopular parts of the law while leaving the most popular elements in place. Lawmakers in the last two months have repealed the law's insurance mandate and delayed a slew of controversial taxes, including the Cadillac tax on high-cost health plans, which is reviled by unions and businesses alike. But other central provisions of the law, including subsidies to help people buy coverage, the expansion of Medicaid and protections for people with pre-existing conditions, remain in place. And those parts appear likely to stick around for the foreseeable future, given that the GOP repeal push is on hold indefinitely. Former staffers who helped write the Affordable Care Act (ACA) are optimistic that the law can still function without the mandate and the taxes, even if they would have preferred for those policies to stay in place. Some argued the removal of some of the most unpopular parts of the law actually strengthens the political standing of ObamaCare, making it harder to repeal. "The ACA is like an overachieving child with parents who got divorced that's still on track to go to a good college," said Bob Kocher, a former Obama White House health-care staffer who helped write the ACA. Read more here.   Poll: Majority want Trump to focus on health care in State of the Union Most voters think President Trump's first State of the Union address should focus on improving the health-care system, according to a new Morning Consult–Politico poll. According to the poll, 82 percent of voters say it's important for Trump to address improving the health-care system in the speech, followed closely by the 81 percent who said it's important for him to talk about the economy and creating jobs. Read more here.   Pro-ObamaCare groups launch new ads ahead of State of the Union Ahead of President Trump's State of the Union, a pro-ObamaCare group is launching a months-long, six-figure television ad buy that slams last year's Republican efforts to repeal ObamaCare, saying the bills would have lead to higher premiums and millions more without health insurance. The ads from Save My Care seek to "strengthen the Congressional firewall against repealing the Affordable Care Act, slashing Medicaid and sabotaging the health care system," Leslie Dach, Save My Care campaign chairman, said in a press release. The 30-second ad begins with Trump saying his administration is "probably in that position where we'll just let ObamaCare fail" and ends with the words: "Enough is enough. Stop the Republican war on health care." Read more here.   What we're reading Strong sign-ups under ObamaCare encourage Democrats (Associated Press) Koch network moving on from ACA repeal (Axios) How Trump may end up expanding Medicaid, whether he means to or not (Washington Post)   State by state In Utah, an unlikely crusader fights the generic-drug industry (STAT) Medicaid transport program faces cuts in some states (Kaiser Health News) Idaho 'pushing envelope' with health insurance plan: how far can it go? (Kaiser Health News)     Send tips and comments to Jessie Hellmann, jhellmann@thehill.com; Peter Sullivan, psullivan@thehill.com; Rachel Roubein, rroubein@thehill.com; and Nathaniel Weixel, nweixel@thehill.com. Follow us on Twitter: @thehill, @jessiehellmann, @PeterSullivan4, @rachel_roubein, and @NateWeixel.         Did a friend forward you this email? Sign up for Healthcare Newsletters     Forward Healthcare Newsletters       Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  |  Email to a friend  |  Sign Up for Other Newsletters   The Hill 1625 K Street, NW 9th Floor, Washington DC 20006 ©2016 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.

Overnight Tech: White House says 'no decisions made' on 5G network takeover | Plan sparks broad pushback | Facebook's privacy changes | Crypto exchange under scrutiny after massive theft

View in your browser     WHITE HOUSE: 'NO DECISIONS' ON 5G: The White House said Monday there had been "no decisions" made about creating a nationalized 5G broadband network after reports about the proposal sparked fierce blowback. "Right now we're in the very earliest stages of the conversation. There are absolutely no decisions made on what that would look like, what role anyone would play in it," White House press secretary Sarah Huckabee Sanders said at Monday's press briefing. She added that the focus for now was "simply the need for a secure network." National Security Council spokesperson Marc Raimondi made similar comments. "All options are under consideration, and we are firmly committed to working with the American telecom and technical sectors to support a solution," Raimondi said in an emailed statement to The Hill. Read more here.   THE BACKGROUND: An report from Axios on Sunday detailed a National Security Council memo and PowerPoint which proposed a nationalized wireless broadband network designed to guard against state-sponsored hacks by China. The NSC documents weighed two options: A nationalized 5G network within the next three years that would help stave off foreign cybersecurity threats, or having wireless providers create their own networks to compete against one another. The documents contended that the second option would be more costly and time-consuming. More on the Axios report here.   THE BLOWBACK: The report brought quick opposition from across the spectrum, with Federal Communication Commission members, House Republican lawmakers and telecom industry groups all rejecting the idea. "There is nothing that would slam the breaks more quickly on our hard-won momentum to be the leader in the global race for 5G network deployment more quickly than the federal government stepping-in to build those networks," said Jonathan Spalter, present of trade association USTelecom.   FCC CHAIR OPPOSES: Ajit Pai, the chairman of the Federal Communications Commission, is opposing a reported White House proposal to nationalize a 5G network currently being developed by the private sector. "The main lesson to draw from the wireless sector's development over the past three decades -- including American leadership in 4G -- is that the market, not government, is best positioned to drive innovation and investment," Pai said in a statement Monday morning. Pai, who is held in high regard by the industry, argued that the government's only role in 5G development should be to set rules for the marketplace that would encourage innovation. "Any federal effort to construct a nationalized 5G network would be a costly and counterproductive distraction from the policies we need to help the United States win the 5G future," Pai said. The other four FCC commissioners, including both Democrats, quickly echoed Pai's concerns about the reported plan. "A network built by the federal government, I fear, does not leverage the best approach needed for our nation to win the 5G race," said Democratic Commissioner Mignon Clyburn. "There is a worldwide race to lead in #5G and other nations are poised to win," Jessica Rosenworcel, the other Democrat, wrote on Twitter. "But the remedy proposed here really misses the mark." Read more here.   GOP CHAIRMAN ALSO DISMISSES 5G TAKEOVER: Rep. Greg Walden (R-Ore.), the chairman of the House Energy and Commerce Committee, rejected the idea of nationalizing the country's 5G network on Monday. "We're not Venezuela -- we don't need to have the government run everything as the only choice," Walden said during an interview at the State of the Net conference in Washington, D.C. Walden said he had not known about the proposal and did not believe it was being seriously considered. Read more here.   Please send your tips, comments and compliments to Ali Breland (abreland@thehill.com) and Harper Neidig (hneidig@thehill.com) and follow us on Twitter: @alibreland and @hneidig. We're also on Signal and WhatsApp. Email or DM us for our numbers.   FACEBOOK RELEASES PRIVACY PRINCIPLES: Facebook released a set of privacy principles Monday aimed at helping users understand how the social media giant handles their data and what they can do to shield their information from other users. The principles include giving users control of their data and keeping it secure from hackers. Others state the company's commitment to constantly improving their design and holding themselves accountable with user privacy in mind. Facebook also announced on Monday that it would post educational videos instructing users on issues such as adjusting their privacy settings and removing old content from their profiles. Read more here.   FACEBOOK TO GET LOCAL: Mark Zuckerberg said Monday that Facebook will now start showing users more local news stories in their feeds -- the latest in a string of reforms the company has announced this year. "Local news helps build community -- both on and offline," Zuckerberg wrote in a post. "It's an important part of making sure the time we all spend on Facebook is valuable." Starting Monday, Zuckerberg said, local news stories shared by users or the news outlets themselves will show up higher in users' feeds. The Facebook CEO suggested that promoting local news could lead to increased civic engagement and less polarization. Read more here.   MASSIVE CRYPTO THEFT: A Tokyo-based cryptocurrency exchange is coming under the scrutiny of Japanese regulators after hackers pulled off what may be the largest cryptocurrency theft to date. The hackers made off with hundreds of millions in virtual currency from the exchange, Coincheck, on Friday. Japan's financial regulator, the Financial Services Agency (FSA), on Monday ordered the exchange to "improve business operations" following the "illicit transfer," Coincheck announced in a blog post.  The FSA ordered Coincheck to investigate the incident, submit a written report, provide proper support to customers, and to strengthen and develop new methods to prevent future thefts. The agency gave the exchange a Feb. 13 deadline to comply. "In moving towards reopening our services, we are putting all of our efforts towards discovering the cause of the illicit transfer and overhauling and strengthening our security measures while simultaneously continuing in our efforts to register with the Financial Services Agency as a Virtual Currency Exchange Service Provider," Coincheck said. Reports vary on the how much NEM, a type of cryptocurrency, the hackers snatched from the exchange, with estimates ranging from $400 million to $530 million. Read more here.   UBER LAYS OUT INFRASTRUCTURE PRINCIPLES: Uber laid out a set of principles Monday that it hopes the Trump administration will address in its promised infrastructure proposal. The ride-sharing company wants the government to ramp up investments in improving the nation's roads and public transportation systems. Uber's list comes as the White House has been promising to release its infrastructure proposal as soon as this month and reflects the company's efforts to establish more of a presence in Washington. "We are largely regulated at the state level. We operate at the local level, but we understand how important the role of the federal government is to the maintenance and modernization of our nation's infrastructure," Danielle Burr, Uber's head of federal affairs, told The Hill. Read more here.   ON TAP: The FCC will hold its monthly open meeting at 10:30 a.m. The House Energy and Commerce Committee will hold a hearing on broadband infrastructure at 10:00 a.m. Read more about the hearing here. New America will hold an event about online speech at noon. TechFreedom will hold an event about fighting online sex trafficking at 3:45 p.m.   IN CASE YOU MISSED IT: The Guardian: Elon Musk sells $3.5m worth of flamethrowers in a day Bloomberg: Massive cryptocurrency heist spurs call for more regulation The Wall Street Journal: Intel warned Chinese companies of chip flaws before U.S. government The Next Web: Net neutrality activist 'throttles' street outside FCC building         Did a friend forward you this email? Sign up for Technology Newsletters     Forward Technology Newsletters       Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  |  Email to a friend  |  Sign Up for Other Newsletters   The Hill 1625 K Street, NW 9th Floor, Washington DC 20006 ©2016 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.