Overnight Energy: Trump eyes easing offshore drilling safety rules | NY threatens lawsuit over climate rule repeal | Pruitt aide was cleared to work for GOP firm

View in your browser     OFFICIALS PROPOSE EASING OFFSHORE DRILLING SAFETY REGS: The Trump administration is proposing to roll back parts of a landmark offshore drilling safety regulation that was written in response to the 2010 BP Deepwater Horizon disaster. The rule, dubbed the Well Control Rule, was put into place in 2016. Its standards focus on blowout preventer systems, the emergency systems that offshore oil and natural gas drillers have on hand for when something goes wrong with drilling and operators lose control of the well. That happened in the BP spill, causing an explosion that killed 11 workers and an 87-day uncontrolled oil spill in the Gulf of Mexico. The announcement came Friday, a week after the eighth anniversary of the explosion. The Well Control Rule was the centerpiece of the Obama administration's response to the disaster. The oil industry and its allies, including most congressional Republicans, have long complained that parts of the rule were unnecessarily burdensome and sought to have them overturned. Many of those provisions would be undone with the Trump proposal. The Interior Department's Bureau of Safety and Environmental Enforcement (BSEE) argues that it is making changes that ease burdens on drillers -- saving them $946 million over 10 years -- without at all compromising safety.   Who is for it: -- Erik Milito, director of upstream operations for the American Petroleum Institute: "BSEE's decision to revise its technically flawed Well Control Rule will help to strengthen safer offshore operations... These revisions will move us forward on safety, help the government better regulate risks and better protect workers and the environment." --Randall Luthi, president of the National Offshore Industries Association: "As written, the existing rule is flawed with technical deficiencies and ambiguities that detract from safe operations...BSEE's proposed revisions to the WCR will enhance safety and decrease risk offshore."   Who is against it: --Sen. Bill Nelson (D-Fla.): "This administration wants to turn a blind eye to history just to help their friends in the oil industry. We can't let that happen. These rules were put in place to prevent another massive oil spill off our coasts. We can't allow this new administration to take us backwards in time and, once again, expose Florida's beautiful beaches and tourism-based economy to such an unnecessary risk." --Senate Energy and Natural Resources Ranking member Maria Cantwell (D-Wash.): "After over $65 billion of damage and bipartisan Congressional oversight hearings on the Deepwater Horizon tragedy, new protections were put in place to make sure this type of disaster never happened again. Today Interior is trying to ignore those protections. They are creating an unbelievable liability for taxpayers by ignoring safety." --House Natural Resources Committee Ranking Member Raúl M. Grijalva (D-Ariz.): "Republicans have decided the federal government's job is doing expensive favors for oil and gas companies. This administration's obsession with more drilling and fewer regulations, whatever the cost, is the same attitude that produced Deepwater Horizon in the first place. The industry needs stronger oversight, especially as we drill new wells off our coastlines. This administration offers the exact opposite." Read more here.     NY THREATENS LAWSUIT IF CLEAN POWER PLAN REPEALED: New York Attorney General Eric Schneiderman (D) is threatening to sue the Trump administration if it moves forward and repeals the Clean Power Plan. Schneiderman led a coalition of 26 Democratic states, cities and counties late Thursday in filing formal comments objecting to EPA head Scott Pruitt's proposal. "The law and the science are clear. The Trump EPA's efforts to dismantle this vital measure once again demonstrate that they're more committed to pleasing the fossil fuel industry than protecting the health, safety, and wallets of New Yorkers and Americans," Schneiderman said in a statement Friday. "As we've made clear, if the Trump EPA refuses to protect those they serve and abandons this unlawful and unsupported repeal of the Clean Power Plan, we'll see them in court." In the coalition letter filed on Thursday -- the deadline for public comments on the EPA's proposal -- the states, cities and counties argued that the EPA is obligated to aggressively regulate greenhouse gas emissions from power plants, as it did in the Clean Power Plan. Read more here.   EPA AIDE APPROVED TO WORK FOR GOP CONSULTING FIRM: EPA ethics officials approved John Konkus to work for Jamestown Associates, a Washington, D.C.-based political consulting firm, and a Florida state representative while he was still employed at the agency, E&E News first reported Friday. EPA did not release the name of the Florida lawmaker. Jamestown Associates boasts on its website that it helped win Donald Trump's presidential campaign and Chris Christies 2013 New Jersey gubernatorial race. The document dated August 1, 2017, from EPA ethics official Justina Fugh approved Konkus's request to partake in the paid outside work. The letter also acknowledged the Konkus had plans to add additional clients in the "next six months." The letter stated that Konkus could not earn more than $27,765 through outside compensation.   What's notable: After going through the effort to get the outside ventures approved by EPA's office of ethics, documents say Konkus never ended up completing the outside ventures. In a public financial disclosure report for Konkus's 2017 wages, Fugh wrote a note on April 25, 2018, that read, "Even though Mr. Konkus had sought prior approval of anticipated outside activity, he indicated that he did not in fact engage in any outside activity at all during calendar year 2017. Therefore, he has no outside income or position to report."   Why this is familiar:  Konkus's arrangement was first revealed in a letter the EPA sent in January to Rep. Frank Pallone Jr. (N.J.), the top Democrat on the House Energy and Commerce Committee. But the agency redacted the names of the clients Konkus was approved to work for. At the time, Pallone and his Democratic colleagues questioned whether Konkus's outside employment raised a conflict of interest Read more here.   SCALISE INTRODUCES ANTI-CARBON-TAX RESOLUTION: Rep. Steve Scalise (R-La.) wants the House to once again condemn the idea of a tax on carbon dioxide emissions. The House's majority whip joined with Rep. David McKinley (R-W.Va.) Thursday in introducing a nonbinding resolution declaring it the sense of Congress that "a carbon tax would be detrimental to American families and businesses, and is not in the best interest of the United States." "Our resolution will affirm the position of Congress that a carbon tax would run counter to the goals of American energy dominance and national security," Scalise said in a statement. The House easily passed a similar resolution in 2016, with all Republicans and some Democrats signing on. It's been a while since a carbon tax was taken seriously as a policy proposal in Washington, D.C. But a team of former Republican statesmen, led by former Secretary of State James Baker, made a concerted effort last year to convince President Trump of its merits. Read more.   OUTSIDE THE BELTWAY: Houston officials approved a plan to build a new housing development in a floodplain, the Houston Chronicle reports. Thousands of Wisconsin residents are returning home after a refinery explosion Thursday, WCCO reports. A special rock formation in Oman could be the key to fixing climate change, The New York Times reports.   IN CASE YOU MISSED IT: Check out Friday's stories... -EPA approved aide to work for GOP firm, Florida lawmaker -Trump officials seek to ease landmark offshore drilling safety rules -Environmental concerns may turn voters blue: poll -Scalise offers anti-carbon tax resolution -New York threatens to sue Trump over EPA climate rule repeal -EU to ban all bee-harming pesticides     Please send tips and comments to Timothy Cama, tcama@thehill.com; and Devin Henry, dhenry@thehill.com. Follow us on Twitter: @Timothy_Cama, @dhenry, @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: What's next in search for VA chief | Romaine lettuce E. coli outbreak expands | Dem floats automatic ObamaCare enrollment | Lawsuit targets cuts to teen pregnancy program

View in your browser     Happy Friday! And welcome to Overnight Health Care, where we're crossing our fingers for no rain, less allergies and warm spring weather. We're also heeding the CDC's call not to eat romaine lettuce from certain areas. Don't eat romaine lettuce unless you know for sure it's not from the Yuma Arizona growing region! Next week, Congress is on recess. Tom Price, meanwhile, is returning to the conference circuit, less than a year after he resigned as HHS Secretary. He's slated to speak at the World Health Care Congress at 8:15 a.m. Tuesday. Also on tap: Seema Verma, the head of the Centers for Medicare and Medicaid Services, 1:20 p.m. Monday . Alex Azar, Health and Human Services secretary, 7:35 a.m. Wednesday.   ICYMI: This week's the spotlight was on Ronny Jackson, President Trump's doctor and his pick to lead the vast Department of Veterans Affairs. Jackson started the week facing questions about his qualifications to the lead the VA, a massive and troubled bureaucracy. He ended the week by withdrawing his name from consideration following more than three days of controversy that included allegations of being drunk on the job, dispensing prescription medication too freely and creating a hostile work environment. The latest: The Secret Service pushed back against one of the most detailed allegations involving Jackson; that during a trip abroad in 2015 he was allegedly drunkenly banging on the door of a female employee so loudly that the Secret Service had to intervene to prevent him from disturbing a sleeping President Obama. "The Secret Service has no such record of any incident," the agency said in a statement. The allegation was first reported by CNN; it did not appear in the report released by Sen. Jon Tester (Mont.), the top Democrat on the Senate VA Committee.  Tester's report detailed many of the allegations against Jackson by 23 of his current and former colleagues. However, the committee has yet to corroborate any of them. Read more on that here. Next up: In the wake of Jackson's decision to withdraw from consideration, senators from both parties expressed hope that Trump's next pick would be less controversial. The VA has typically been an agency that rises above partisanship, but there's concern that Trump could react to Jackson's failed nomination by nominating someone who brings political baggage to the job. Why the worry? Trump called into Fox News's "Fox & Friends" morning show on Thursday shortly after Jackson dropped out, blaming Democrats for sinking the nomination. He said his next nominee will have more "political capability" than Jackson. On Friday, during a press conference with German Chancellor Angela Merkel, Trump said he has "many people who want the position" of VA secretary including "some very political people." Read more here. Trial balloons: Trump indicated that many of the names floated before he tapped Jackson would be given new consideration. One name that's come up, according to the Washington Examiner: former House Veterans Affairs Committee Chairman Jeff Miller. Miller is a conservative Republican from Florida who served as a Trump advisor during the 2016 campaign. While in Congress, he helped design the controversial VA Choice program, which allowed veterans who face significant wait times for medical appointments at the VA to seek private-sector care at the VA's expense. Current House VA Committee Chairman Phil Roe (R-Tenn.) was effusive in his praise: Miller would be "an excellent choice," he told The Hill. Roe said Miller has a track record of working for veterans, and unlike Jackson, his management style and views about the agency are well known. "He'd be easy to confirm."     E. coli outbreak in romaine lettuce expands You should still be on guard against eating romaine lettuce, unless you know it's not from the Yuma, Ariz., growing region. The latest stats: 98 people are sick, across 22 states. 53 percent of people have been hospitalized, a higher than usual percentage with E. coli. Officials say they can't be certain the outbreak is over and they expect more reports of illnesses because there is a 2-3 week delay in verifying that an illness was caused by E. coli. Read more here.   Dem proposes testing automatic ObamaCare enrollment Last time we heard about automatic health insurance enrollment it was from Republican Sen. Bill Cassidy (La.). Now Democratic Rep. Ami Bera (Calif.) is floating the idea. The proposal: Bera's bill would give grants of $200 million to states to pilot automatically enrolling people in ObamaCare or Medicaid, and giving them 60 days to decide whether they want to opt out. Why it matters: Bera thinks this idea can cut the uninsured rate, by making people have to actively opt out of insurance, and signing them up by default. Many uninsured people could qualify for plans with $0 premiums after financial assistance, he points out. Read more here.   A class-action lawsuit is targeting Trump's cuts to teen pregnancy prevention. Filed Friday morning, the lawsuit argues the Department of Health and Human Services (HHS) illegally ended grants to 81 organizations participating in a federal teen pregnancy prevention program.  HHS last summer sent notices to groups participating in the Teen Pregnancy Prevention Program informing them their grants would end two years earlier than originally planned, arguing that there efforts to cut teen pregnancy rates were ineffective. Federal judges have since ruled against the Trump administration in three separate cases representing eight grantees.  Read more here.   What we're reading CMS extension of transitional health plans could ding ACA market (Modern Healthcare) With cash and a call for new ideas, Bill Gates tries to boost the campaign for a universal flu vaccine (Stat) Dissecting the rhetoric vs. reality of Trump's tough talk on drug prices (Kaiser Health News)   State by state    Battle over medication abortion rages on in challenge to new Missouri law (The Kansas City Star) He was caught on video, but Georgia doctor kept his medical license (Atlanta Journal-Constitution) Why a city at the center of the opioid crisis gave up a tool to fight it (The New York Times)     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 Finance: US economic growth slows in first quarter | Deadline for Trump tariff exemption nears | Scalise offers anti-carbon tax resolution | Banking regulator to retire

View in your browser     Happy Friday and welcome back to Overnight Finance, a best-selling newsletter. Our price? Zero bucks. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line. See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.   THE BIG DEAL: U.S. economic growth slowed to 2.3 percent of GDP in the first quarter of 2018, according to the Bureau of Economic Analysis (BEA), a lower rate than the fourth quarter of 2017 but higher than initial projections. The 2.3-percent growth rate is 0.6 percent below the previous three-month period. First quarter growth typically lags as consumers cut spending following the holiday season and as winter weather freezes key economic drivers. Analyst's projections for first-quarter growth ranged between 1.8 and 2 percent. First quarter growth rates are usually revised upward, sometimes close to a full percentage point. BEA said that Friday's report is "based on source data that are incomplete or subject to further revision by the source agency," and it will issue its revised estimate on May 30. BEA attributed the higher than expected numbers to increases in business and inventory investment, consumer spending, and exports -- all critical forces behind economic growth. Brian Coulton, chief economist at Fitch Ratings, said while consumer spending was lower than expected, "the really impressive thing continues be business investment." "With consumption growth likely to bounce back and fiscal stimulus about to kick-in big-time, there are probably more upside than downside risks to our latest forecast for 2018 growth of 2.7 percent," Coulton said. I've got more on the numbers here.     LEADING THE DAY US taxes on wages, employers were near average before GOP tax law, OECD finds American workers pay an average amount of taxes when compared to other advanced economies, as do their employers, according to a new report from the Organisation for Economic Co-operation and Development (OECD). The study was based on data from 2017, before the new Republican tax law went into effect. On income tax alone, a married American family with two children making an average salary paid 6.5 percent of their wages to tax, below the 10.2 percent average for the OECD, a club of 35 advanced economies. A single American making an average salary paid 18.4 percent of their wages to the government, slightly above the 15.7 percent OECD average, and well below the high of 36.1 percent paid in Denmark. But the study also examined how labor costs fall on employers. In the U.S., employers had to pay out 7.7 percent of wages for employees making an average wage, compared to 9.8 percent in the OECD. The Hill's Niv Elis explains here.   Scalise offers anti-carbon tax resolution: House Majority Whip Steve Scalise (R-La.) has reintroduced a resolution condemning a carbon tax, arguing that such a levy would be harmful to the economy. The nonbinding resolution, offered by Scalise and Rep. David McKinley (R-W.Va.) on Thursday, would state that it's Congress's opinion that "a carbon tax would be detrimental to American families and businesses, and is not in the best interest of the United States." The House previously approved a version of the resolution in 2016, with six Democrats supporting it and no Republicans opposing it. Carbon taxes have been supported by some liberals, such as Sen. Bernie Sanders (I-Vt.), as well as by some Republicans, such as James Baker, a former chief of staff to Presidents Ronald Reagan and George H.W. Bush. Supporters of the idea say it would be a market-based solution to help to reduce carbon dioxide emissions and fight climate change. It could also raise revenue used to reduce the deficit or cut other taxes. But opponents argue that it would raise prices on gasoline and consumer goods and hurt U.S. economic competitiveness. Here's more from The Hill's Naomi Jagoda.   FDIC vice chairman Hoenig announces retirement: Thomas Hoeing, the vice chairman of the Federal Deposit Insurance Corporation (FDIC), announced Friday that he will step down from the board of the bank watchdog effective Monday. Hoeing, the former president of the Kansas City Federal Reserve, will retire after completing a six-year term on the FDIC board. He joined the FDIC in April 2012 after 20 years leading the Fed's Kansas City reserve bank, where he started as an economist in 1973. Hoenig said "it has been an honor and a privilege to serve the public and be a part of the FDIC and its mission during these past six years." FDIC Chairman Martin Gruenberg thanked Hoenig for his "extraordinary career of public service at both the FDIC and the Federal Reserve Bank of Kansas City." "Tom has been a forceful advocate for strong, independent financial regulation and has contributed enormously to the mission of the FDIC during his time as Vice Chairman. The FDIC was fortunate to benefit from his service," Gruenberg said.   Why it matters: Hoenig's departure will leave just three members on the FDIC board: Gruenberg, Comptroller of the Currency Joseph Otting and acting Consumer Financial Protection Bureau Director Mick Mulvaney. The FDIC supervises, imposes regulations and insures deposits at U.S banks. Its leadership will play a critical role in federal efforts to loosen Dodd-Frank Act rules meant to ensure the safety and soundness of banks. President Trump has nominated Jelena McWilliams, executive vice president and chief legal officer of Fifth Third Bank, to replace Gruenberg, whose term expired in November. Gruenberg has stayed on as the Senate struggles to confirm a slate of Trump's financial regulatory nominees. McWilliams's nomination was cleared by the Senate Banking Committee in February and is pending Senate confirmation. Trump has not nominated a replacement for Hoenig or for the vacant FDIC director position. The comptroller of the currency and CFPB director are FDIC board members by law.   ON TAP NEXT WEEK Monday: The House and Senate begin a weeklong recess, returning to the Capitol on May 7. The Heritage Foundation hosts an event entitled "The Capitalist Comeback: The Trump Boom and the Left's Plot to Stop It," featuring former Labor Secretary nominee Andy Puzder, 12 p.m. Tuesday: Deadline for President Trump to grant exemptions from the steel and aluminum tariffs. Wednesday: The Brookings Institution hosts an event on the future of trade in U.S.-Japan relations, 10 a.m. The Heritage Foundation hosts an event entitled "Deconstructing the Administrative State: How Corporations and Big Government Collaborate," 11 a.m. Thursday: The American Enterprise Institute hosts an event entitled: "The 2018 Farm Bill: The future of farm subsidy programs and US agriculture sector productivity," 11 a.m. Friday: The Brookings Institution hosts an event on advancing opportunity for black collegians in tech and business, 9 a.m.   NEXT WEEK'S NEWS, NOW Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer will be in China to meet with officials in Beijing over growing trade tensions between the countries. Trump and his team are hopeful that the U.S. and China can come to terms on a way to avoid escalating tariffs, but it's far from clear how this talks will play out. May 1 is the deadline for Trump to grant further exemptions from the steel and aluminum tariffs he announced in March. U.S. allies and trading partners have been lobbying for relief from the tariffs, which could be met with severe retaliation. With most of the Trump administration trade team focused on the upcoming meeting in Beijing and another round of negotiations over the North American Free Trade Agreement, its possible we see Trump delay the deadline for the time being.   GOOD TO KNOW The world economy has been stuck with low inflation and low interest rates. Yet the latest shifts in global markets suggest that this could be ending, according to the New York Times. Long-term U.S. mortgage rates continued to climb this week, reaching their highest level in more than four years and denting prospective home purchasers' prospects amid the spring buying season, according to the AP. White House budget chief Mick Mulvaney met with the House Appropriations Committee chairman on Friday to discuss a White House proposal to claw back some of the federal spending increases that Congress passed last month.   ODDS AND ENDS February's sell-off saw investors yank the most money from US stocks in a decade, according to CNBC. A House Democrat has introduced a bill to crack down on robocalls from debt collectors seeking to collect on federal loans.     Write us with tips, suggestions and news: slane@thehill.com, vneedham@thehill.com, njagoda@thehill.com, and nelis@thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill, @NJagoda, and @NivElis.         Did a friend forward you this email? Sign up for Finance Newsletters     Forward Finance 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.