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  • Ohio governor drinks the tap water as the EPA demands Norfolk Southern manage all cleanup of a toxic train wreck — or face consequences | CNN

    Ohio governor drinks the tap water as the EPA demands Norfolk Southern manage all cleanup of a toxic train wreck — or face consequences | CNN



    CNN
     — 

    The US Environmental Protection Agency is ordering Norfolk Southern to handle and pay for all necessary cleanup after a train carrying toxic chemicals derailed in East Palestine, Ohio.

    The EPA announced its legally binding order Tuesday, 18 days after the freight train derailed. The disaster ignited a dayslong inferno, shot plumes of black smoke into the air and led to the intentional release of vinyl chloride to help avert a more catastrophic blast.

    Some residents have reported health problems, and about 3,500 fish have died in Ohio waterways since the wreck.

    “Norfolk Southern will pay for cleaning the mess that they created and the trauma that they inflicted on this community,” EPA Administrator Michael Regan said Tuesday.

    As part of the EPA’s legally binding order, Norfolk Southern will be required to:

    • Identify and clean up any contaminated soil and water resources,

    • Reimburse the EPA for cleaning services to be offered to residents and businesses to provide an additional layer of reassurance, which will be conducted by EPA staff and contractors,

    • Attend and participate in public meetings at the EPA’s request and post information online, and

    • Pay for the EPA’s costs for work performed under the order.

    The order will take effect Thursday. The EPA said it will exercise its strongest authority against the train’s operator under CERCLA – the Comprehensive Environmental Response, Compensation, and Liability Act.

    “In no way, shape or form will Norfolk Southern get off the hook for the mess that they created,” Regan said.

    If the rail company fails to meet the demands, the EPA said it will immediately step in, conduct the necessary work and then seek to compel Norfolk Southern to pay triple the cost.

    In response to the EPA’s announcement, Norfolk Southern said it has been working to clean up the site and will continue helping residents.

    “We recognize that we have a responsibility, and we have committed to doing what’s right for the residents of East Palestine,” Norfolk Southern said in a statement to CNN.

    “We have been paying for the clean-up activities to date and will continue to do so. We are committed to thoroughly and safely cleaning the site, and we are reimbursing residents for the disruption this has caused in their lives. We are investing in helping East Palestine thrive for the long-term, and we will continue to be in the community for as long as it takes. We are going to learn from this terrible accident and work with regulators and elected officials to improve railroad safety.”

    Hours before the EPA’s announcement, Regan and Gov. Mike DeWine visited an East Palestine home and tried to reassure residents that the municipal water supply is safe.

    They raised two glasses filled with water straight from the tap and toasted before drinking.

    The municipal water supply comes from five wells deep underground that are encased in steel, state officials have said. But residents with private well water should get that water tested before using it, since that water may be sourced closer to the ground’s surface.

    “State and local authorities will continue the water sampling efforts, and EPA will continue indoor air screenings to residents within the evacuation zone,” Regan said Tuesday.

    But “I recognize that no matter how much data we collect or provide, it will not be enough to completely reassure everybody,” the EPA chief said.

    “It may not be enough to restore the sense of safety and security that this community once had. But we’re going to work together, day by day, for as long as it takes to make sure that this community feels at home once again.”

    The soil under the railroad track at the site of the wreck is still contaminated, and the tracks need to be lifted to remove that soil, the director of Ohio’s Environmental Protection Agency said Tuesday.

    The governor acknowledged residents’ concerns about the contaminated soil and said 4,588 cubic yards of soil and 1.1 million gallons of contaminated water have been removed from East Palestine.

    “The railroad got the tracks back on and started running and the soil under the tracks had not been dealt with,” DeWine said. “The tracks will have to be taken up, and that soil will have to be removed.”

    To address the growing reports of rashes, headaches, nausea and other symptoms in East Palestine, the state opened a new health clinic for residents.

    The health clinic will have registered nurses, mental health specialists and – at times – a toxicologist, the Ohio Department of Health said.

    Medical teams from the US Centers for Diseases Control and Prevention and the US Department of Health are expected to arrive in the community as early as this week to help assess what dangers might remain.

    Authorities have repeatedly assured residents that the air and municipal water supply in the town are safe. Crews have checked hundreds of homes and have not detected any dangerous levels of contaminants, the EPA said.

    Still, life in East Palestine has been uprooted as residents question the findings and wonder whether it’s really safe to drink the water or breathe the air.

    “It will be important to monitor people’s health and the environment around the train derailment for some time to come since health impacts may not emerge until later,” said Dr. Erin Haynes, an environmental health scientist at the University of Kentucky.

    “We should never say we’re done looking at this community for potential exposures and health impacts.”

    Petroleum based chemicals float on the top of the water in Leslie Run creek after being agitated from the sediment on Monday in East Palestine.

    Some waterways were contaminated after the crash, killing an estimated 3,500 fish. But officials have said they believe those contaminants have been contained.

    Norfolk Southern installed booms and dams to restrict the flow of contaminated water from Sulphur Run and Leslie Run – two streams where fish were found dead, the EPA said.

    “The spill did flow to the Ohio River during that initial slug, but the Ohio River is very large, and it’s a water body that’s able to dilute the pollutants pretty quickly,” Ohio Environmental Protection Agency official Tiffani Kavalec said last week.

    Kavalec said the agency is pretty confident that the “low levels” of contaminants that remain are not getting passed on to water customers.

    A series of pumps have been placed upstream to reroute Sulphur Run around the derailment site, Norfolk Southern said Monday.

    “Environmental teams are treating the impacted portions of Sulphur Run with booms, aeration, and carbon filtration units,” Norfolk Southern added. “Those teams are also working with stream experts to collect soil and groundwater samples to develop a comprehensive plan to address any contamination that remains in the stream banks and sediment.”

    Water intakes from the Ohio River that were shut off Sunday “as a precautionary measure” were reopened after sampling found “no detections of the specific chemicals from the train derailment,” the Greater Cincinnati Water Works and Northern Kentucky Water District said Monday.

    A third utility provider – Maysville utility in Kentucky – announced that it temporarily shut off water intakes from the Ohio River on Saturday, when the toxic chemicals released into the river from the derailment were expected to arrive at the water treatment intake in Kentucky, utility general manager Mark Julian said.

    Water measurements have been below the level of concern, Julian said, and Maysville took precautionary measures in temporarily shutting down their Ohio River intake valve due to the public concern.

    “The takeaway is that anyone along the Ohio River where the contaminants made their way can breathe a sigh of relief,” he said.

    A member of Ohio EPA Emergency Response looks for fish at Leslie Run creek and checks for chemicals in East Palestine on Monday.

    Meanwhile, the majority of the hazardous rail cars remain at the crash site as investigators continue to probe the wreck. But about 15,000 pounds of contaminated soil and 1.1 million gallons of contaminated water have been removed from the scene, Norfolk Southern announced Monday.

    The contaminated soil became a point of contention last week after a public document sent to the EPA on February 10 did not list soil removal among completed cleanup activities. It is not yet known what significance or impact the soil that was not removed before the railroad reopened on February 8 will have had on the surrounding areas.

    As skepticism spreads about the safety of the air and water, some local businesses say they’ve seen fewer customers.

    “Everybody’s afraid … They don’t want to come in and drink the water,” Teresa Sprowls, a restaurant owner in East Palestine, told CNN affiliate WOIO.

    A stylist at a hair salon told WOIO there’s no doubt the salon lost business and that customers may be worried about what may be in the water washing their hair.

    “I know a lot of our businesses are already suffering greatly because people don’t want to come here,” local greenhouse owner Dianna Elzer told CNN affiliate WPXI.

    Her husband, Donald Elzer, echoed her concerns, saying, “It’s devastating. The longer it goes on, the worse it gets.”

    Dianna Elzer also worried about longer-term economic impacts to the community.

    “Our property values – who is going to want to buy a house here now?” she told WPXI. “It’s going to be a long struggle to get back to where we were.”

    As residents call for accountability from both Norfolk Southern and government officials, US Transportation Secretary Pete Buttigieg said he plans to visit East Palestine “when the time is right” – but did not announce a date.

    He did announce Monday new efforts by the Department of Transportation to improve rail safety.

    “We are accelerating and augmenting our ongoing lines of effort on rail regulation and inspection here at the US DOT, including further regulation on high hazard flammable trains and electronically controlled pneumatic brakes – rules that were clawed back under the previous administration – to the full extent of that we are allowed to under current law, and we will continue using resources from the Bipartisan Infrastructure Law to fund projects that improve rail safety,” Buttigieg said.

    A DOT news release said the agency will continue to press for the “Train Crew Staffing Rule,” which would require a minimum of two crew members during most railroad operations. Norfolk Southern has opposed the proposed rule.

    Norfolk Southern has committed millions of dollars’ worth of financial assistance to East Palestine, including $3.4 million in direct financial assistance to families and a $1 million community assistance fund, among other aid, the company said.

    Norfolk Southern CEO Alan Shaw posted an open letter telling East Palestine residents, “I hear you” and “we are here and will stay here for as long as it takes to ensure your safety and to help East Palestine recover and thrive.”

    “Together with local health officials,” Shaw said, “we have implemented a comprehensive testing program to ensure the safety of East Palestine’s water, air, and soil.”

    Correction: An earlier version of this story misspelled the first name of Ohio Environmental Protection Agency official Tiffani Kavalec.

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  • Bay Area Rapid Transit running limited service to Oakland Airport due to power outage | CNN

    Bay Area Rapid Transit running limited service to Oakland Airport due to power outage | CNN



    CNN
     — 

    California’s Bay Area Rapid Transit system says it is running a “limited service” to the Oakland International Airport because of a power outage in Alameda County.

    “Oakland Airport Connector service is running limited service due to a power outage. Shuttles will depart every 18 minutes,” BART said in a 2:38 p.m. PST update.

    Pacific Gas and Electric Company spokesperson Tamar Sarkissian tweeted that a “large outage” was impacting approximately 50,000 Oakland customers. “We are currently investigating the details and will provide more information on the timing of restoration as soon as we can,” Sarkissian said.

    A transformer fire at a substation caused the outage, Pacific Gas and Electric told CNN in an email Sunday evening.

    “The cause of the outage is a transformer fire within the substation, and we are working closely with fire officials to make the situation safe. We will provide more information on the timing of restoration once we have those details,” spokesperson JD Guidi said.

    The outage impacted the Oakland International Airport for more than an hour Sunday afternoon, according to airport spokesperson Robert Bernardo.

    The power at the airport went down at approximately 1 p.m. PST and was restored at 2:50 p.m. PST, Bernardo told CNN.

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  • Warren Buffett is missing out on this year’s market comeback | CNN Business

    Warren Buffett is missing out on this year’s market comeback | CNN Business

    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here.


    New York
    CNN
     — 

    Warren Buffett is arguably the most legendary investor of all time. But the Oracle of Omaha has missed out on this year’s stock market rally. So far, at least.

    Shares of Buffett’s Berkshire Hathaway

    (BRKB)
    conglomerate, a company that owns businesses ranging from Geico and the Burlington Northern Santa Fe railroad to consumer brands like Dairy Queen, Duracell and Fruit of the Loom, are down slightly this year — lagging the market, as the S&P 500 is up 6%. (The Nasdaq has done even better, surging 12%.)

    Berkshire Hathaway also has a giant stock portfolio that Buffett helps run. Apple

    (AAPL)
    is now by far the top holding for Berkshire, which also has big stakes in Bank of America

    (BAC)
    , Chevron

    (CVX)
    , American Express

    (AXP)
    and Coca-Cola

    (KO)
    .

    So is Berkshire’s portfolio, dare we say it, a little too boring? After all, if you want exposure to the big blue chips he owns, you could just buy an S&P 500 index fund.

    Buffett, in fact, has promoted that idea to investors many times, arguing that most individual stock pickers will not be able to beat the market. The 92-year-old Buffett, who has a net worth of more than $100 billion according to Forbes, even said that he wants the trustee in charge of his will to put 90% of his wife’s inheritance in index funds.

    Still, investors pay extremely close attention to Buffett every time he speaks. So traders will be poring over every word in his annual shareholder letter, which will be released the morning of Saturday, February 25, along with Berkshire’s latest earnings report.

    Don’t expect any major surprises. Buffett will probably continue to extol the virtues of a long-term, patient approach to investing and give a bullish outlook for the US economy. And to his credit, that usually pays dividends: Berkshire stock was up 3% last year in a down market.

    But market watchers are looking to see what Buffett says about the current inflationary scourge that has had a big impact on consumers and investors. He has lived through a couple of bouts of high inflation, after all.

    “I would like to hear Buffett address what’s going on with interest rates and inflation up as much they are,” said Steve Check, president of Check Capital Management, an investment firm that owns Berkshire shares. “He talked a lot about how concerned he was in the 1970s and 1980s.”

    Buffett has made numerous comments about inflation over the past few decades. And he was particularly nervous during the late 1970s and early 1980s, when soaring oil prices created an inflationary shock that severely hurt the economy.

    “High rates of inflation create a tax on capital that makes much corporate investment unwise,” Buffett said in his 1980 shareholder letter to Berkshire investors. Buffett also described inflation as a gigantic parasitic “tapeworm” for businesses in 1981.

    Buffett may also need to address how top-heavy and concentrated his portfolio has become. Berkshire’s five largest holdings make up about 75% of the company’s stock investments.

    “The portfolio is significantly overweight [in] technology, energy, consumer staples, and financials relative to the S&P 500,” said Bill Stone, chief investment officer with The Glenview Trust Company, another Berkshire shareholder, in a report. Stone noted that Berkshire also has big stakes in Kraft Heinz

    (KHC)
    and oil company Occidental Petroleum

    (OXY)
    .

    Investors also want to hear more about what Buffett plans to do with Berkshire’s massive pile of cash. The company has more than $100 billion on its balance sheet. Are more acquisitions coming?

    Buffett has talked for the past few years about how he’s longing to do an “elephant-sized” deal with Berkshire’s cash. Its most recent big deal was last year’s purchase of insurer Alleghany for $11.6 billion.

    Still, the recent sluggish performance of Berkshire’s stock is unlikely to deter the faithful Buffett fans, many of whom are expected to make the annual pilgrimage to Omaha on May 6 for the company’s shareholder meeting.

    Berkshire vice chairman Charlie Munger will likely be on stage with Buffett. So will Greg Abel, the chairman and CEO of Berkshire Hathaway Energy who Buffett has handpicked to eventually succeed him as Berkshire Hathaway CEO.

    Buffett’s faith in the US economy is well founded. American consumers have proven to be remarkably resilient despite rampant inflation. The surprisingly strong retail sales gains for January is further proof of that.

    Investors will get several more clues about consumer spending this week when several top retailers report earnings.

    Dow components Walmart

    (WMT)
    and Home Depot

    (HD)
    are the highlights. Walmart

    (WMT)
    , which has a massive grocery business, should shed some light on how shoppers are coping with surging grocery prices.

    Walmart could still benefit from its reputation as a place for bargains, though. That could even attract more affluent shoppers looking to save a buck.

    “With inflation remaining elevated in the U.S., we expect Walmart to see continued trade-down benefits…particularly from higher-income customers,” said Arun Sundaram, an analyst at CFRA Research, in a report.

    And investors will be looking for clues about the health of the housing market when Home Depot reports. Placer.ai, a research firm that measures foot traffic at top retailers, said in a recent report that consumers are returning to Home Depot and rival Lowe’s at almost pre-pandemic levels — even despite the housing slowdown.

    One reason? Current homeowners may decide to spend more on renovations if they now plan to stick in their current house longer instead of looking to sell.

    “Although the hot home-buying market is cooling off…foot traffic remains close to pre-pandemic levels due to a shift towards projects aimed at sprucing up a current living space,” said Placer.ai’s Ezra Carmel in a report. “It appears that projects that enhance the prospect of staying in place also have the ability to drive visits.”

    Investors will be keeping close tabs on several other retailers set to report earnings this week, including TJX

    (TJX)
    — the owner of TJ Maxx, Marshalls and HomeGoods — as well as online retailers eBay

    (EBAY)
    , Etsy

    (ETSY)
    , Overstock

    (OSTK)
    , Wayfair

    (W)
    and China’s Alibaba

    (BABA)
    .

    The US government is also set to release personal spending figures for January on Friday, another data point that will give a glimpse of consumers’ financial health.

    Monday: US stock and bond markets closed for Presidents’ Day

    Tuesday: US existing home sales; Eurozone and UK PMI; earnings from Walmart, Home Depot, Medtronic

    (MDT)
    , Fluor

    (FLR)
    , Molson Coors

    (TAP)
    , Caesars Entertainment

    (CZR)
    , Diamondback Energy

    (FANG)
    , Chesapeake Energy

    (CHK)
    , Palo Alto Networks

    (PANW)
    , Coinbase, La-Z-Boy

    (LZB)
    and Hostess Brands

    (TWNK)

    Wednesday: Weekly crude oil inventories; earnings from Stellantis, Baidu

    (BIDU)
    , TJX, Garmin

    (GRMN)
    , Overstock, Wingstop

    (WING)
    , Nvidia

    (NVDA)
    , eBay, Etsy and Bumble

    Thursday: US weekly jobless claims; US Q4 GDP (second estimate); Eurozone inflation; Turkey interest rate decision; earnings from Alibaba, Netease

    (NTES)
    , Keurig Dr Pepper

    (KDP)
    , Wayfair, Newmont, Domino’s

    (DPZ)
    , Papa John’s

    (PZZA)
    , Yeti

    (YETI)
    , Nikola, CNN owner Warner Bros. Discovery, Block

    (SQ)
    , Booking Holdings

    (BKNG)
    , Live Nation

    (LYV)
    , Carvana

    (CVNA)
    , Intuit

    (INTU)
    and Beyond Meat

    (BYND)

    Friday: US personal income and spending; US PCE inflation figures; US new home sales; Japan inflation; Germany Q4 GDP; earnings from CIBC

    (CM)
    , Scripps

    (SSP)
    and Cinemark

    (CNK)

    Saturday: Berkshire Hathaway earnings and Warren Buffett annual shareholder letter

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  • Biden administration restores Obama-era mercury rules for power plants, eyes more regulations in coming months | CNN Politics

    Biden administration restores Obama-era mercury rules for power plants, eyes more regulations in coming months | CNN Politics



    CNN
     — 

    The Biden administration on Friday finalized a decision to reestablish Obama-era rules that require coal and oil-fired power plants to reduce toxic pollutants, including mercury and acid gas, that come out of their smokestacks.

    Mercury is a neurotoxin with several health impacts, including harmful effects on children’s brain development. And while the updated rule significantly benefits public health for communities around these kinds of power plants, it also has the effect of requiring plants to cut down on planet-warming pollution that comes from burning coal to generate electricity.

    President Joe Biden’s Environmental Protection Agency announced early last year that it intended to undo a Trump-era rollback of the 2012 mercury pollution rules, one of many Trump-era environmental decisions it has reversed.

    “This is a really good day for public health in this country,” EPA Deputy Administrator Janet McCabe told CNN. “We’re talking about mercury, arsenic, acid gases; these are dangerous pollutants that impact people’s health.”

    The EPA estimates the 2012 rule brought down mercury emissions from power plants by 86% by 2017, while acid gas emissions were reduced by 96%.

    McCabe said the EPA is currently working on its own, stronger mercury standard that it expects to propose “not too long from now” and finalize before the end of Biden’s first term.

    The Mercury and Air Toxics Standards rules are part of a larger tranche of regulations the agency is expected to roll out this spring that would cut down on coal-fired power plant pollution, including rules on proper disposal of coal ash.

    It also plans to release a much-anticipated rule that would regulate planet-warming pollution like carbon dioxide and methane. That rule is expected to be more limited than climate advocates desire, after the US Supreme Court limited the EPA’s ability to broadly regulate carbon pollution in a ruling last year.

    “We’re very mindful of the Supreme Court precedent,” McCabe told CNN. “We’ve been working very, very carefully to craft a rule that will be in the four corners of the direction that the Supreme Court has laid down.”

    McCabe said the agency will propose that rule “in the relatively near future,” but did not share specifics about what the rule would do to limit pollution.

    Many of the nation’s coal-fired power plants are aging and new ones are not being built – especially as it’s getting more expensive operate existing plans. If the EPA implements stronger federal regulations on mercury, coal ash and greenhouse gas emissions, it could have the impact of more utilities shuttering coal-fired plants, as many are already doing.

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  • Power outage disrupts New York’s JFK Airport Terminal 1 | CNN

    Power outage disrupts New York’s JFK Airport Terminal 1 | CNN



    CNN
     — 

    A power outage is disrupting flights at a John F. Kennedy International Airport terminal, the airport said Thursday.

    The outage at Terminal 1 was caused by an electrical panel failure that resulted in a “small isolated fire overnight that was immediately extinguished,” the Port Authority of New York and New Jersey said in a statement.

    “The power outage is currently impacting the terminal’s ability to accept inbound and outbound flights,” the statement said.

    Other terminals are being used to accommodate the affected flights, and travelers should check with their airlines for flight status, the Port Authority said.

    An Air New Zealand flight that was due to land at JFK at 5:40 p.m. ET Thursday was diverted back to its origin airport, according to flight tracking site FlightAware.

    Some arriving international flights were diverted to other East Coast airports, including Newark Liberty International Airport in New Jersey, Boston’s Logan International Airport and Washington Dulles International Airport, JFK’s website showed.

    The Port Authority is trying to restore power at Terminal 1 by working around the circuits affected by the overnight fire, according to a Port Authority official with knowledge of the outage.

    If this method of restoring the power to the terminal is not successful, they are prepared to use generator power to get Terminal 1 back online, the Port Authority source added.

    The aircraft ramp around Terminal 1 has been closed and is scheduled to reopen Friday morning, according to a notice posted in a Federal Aviation Administration safety database.

    The FAA referred questions about the incident to the airport operator. The Transportation Security Administration said: “TSA is eagerly awaiting the power situation to be resolved.”

    Passengers on the Air New Zealand flight found themselves on a nearly 16-hour flight from Auckland back to Auckland after ANZ2 turned around because of the disruption at JFK.

    “Diverting to another US port would have meant the aircraft would remain on the ground for several days, impacting a number of other scheduled services and customers,” the airline said in a statement to CNN.

    Airline staff will be on hand to rebook passengers when they arrive back in Auckland.

    “We apologise for the inconvenience and thank our customers for their patience and understanding.”

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  • The evacuation order was lifted a week ago near the toxic train wreck in Ohio, but some aren’t comfortable going home | CNN

    The evacuation order was lifted a week ago near the toxic train wreck in Ohio, but some aren’t comfortable going home | CNN



    CNN
     — 

    An overwhelming stench of chlorine filled the air this week where Nathen Velez and his wife had been raising their two children, quickly burning his throat and eyes.

    The odor has lingered nearly two weeks after a Norfolk Southern train carrying hazardous materials derailed near the Ohio-Pennsylvania line, igniting an inferno that burned for days and prompted evacuations in surrounding areas while crews managed detonations to release vinyl chloride, which can kill quickly at high levels and increase cancer risk.

    The stay-away order was lifted five days after the derailment, after air and water sample results led officials to deem the area safe, the East Palestine, Ohio, fire chief said at the time. Governors of both states that day said air quality samples had “consistently showed readings at points below safety screening levels for contaminants of concern” – but also advised private well users to opt for bottled water and offered free well testing.

    Now, a week after residents were allowed to return, bottled water should remain the rule until more test results are back, Ohio Gov. Mike DeWine told “CNN This Morning” on Wednesday, noting water in the first well tested “was fine.”

    Still, he said, “Don’t take a chance. Wait until you get the tests back.”

    As that warning echoes and other worrying signs emerge, many in East Palestine remain plagued with anxiety – and some refuse to return amid fears the water, air, soil and surfaces in the village of 5,000 are not safe from fallout from the freight wreck. Some, like Velez, even are spending small fortunes to try to keep their families safely away from the place they used to call home.

    Plaintiffs’ attorneys have invited residents to meet Wednesday afternoon to discuss the derailment’s impact ahead of an evening town hall meeting hosted by East Palestine officials.

    The 100-car freight train that derailed February 3 was carrying hazardous materials including vinyl chloride, ethylene glycol monobutyl ether, ethylhexyl acrylate, isobutylene and butyl acrylate, the US Environmental Protection Agency said. Of those, the vinyl chloride gas that caught fire could break down into compounds including hydrogen chloride and phosgene, a chemical weapon used during World War I as a choking agent, according to the EPA and US Centers for Disease Control and Prevention.

    Vinyl chloride – a volatile organic compound, or VOC, and the most toxic chemical involved in the derailment – is known to cause cancer, attacking the liver, and can also affect the brain, Maria Doa of the Environmental Defense Fund told CNN.

    Cleanup and monitoring of the site could take years, Kurt Kohler of the Ohio EPA’s Office of Emergency Response said February 8, vowing that after the emergency response, “Ohio EPA is going to remain involved through our other divisions that oversee the long-term cleanup of these kinds of spill.” The federal EPA, too, will “continue to do everything in our power to help protect the community,” Administrator Michael Regan said Tuesday.

    Norfolk Southern, the company that operated the train, said Wednesday it was creating a $1 million charitable fund to support East Palestine.

    “We are committed to East Palestine today and in the future,” Norfolk Southern President and CEO Alan Shaw said in a statement. “We will be judged by our actions. We are cleaning up the site in an environmentally responsible way, reimbursing residents affected by the derailment, and working with members of the community to identify what is needed to help East Palestine recover and thrive.”

    But that’s slim consolation to Ben Ratner, whose family worries about longer-term risks that environmental officials are only beginning to assess, he told CNN this week.

    The Ratner home, for instance, was tested and cleared for VOCs, he said. And so far, no chemical detections were identified in the air of 291 homes screened by the EPA for hazardous chemicals including vinyl chloride and hydrogen chloride, it said in a Monday news update, with schools and a library also screened and 181 more homes to go.

    But the Ratners – who played extras in a Netflix disaster film with eerie similarities to the derailment crisis – still are feeling “an ever-changing mix of emotions and feelings just right from the outset, just the amount of unknown that was there,” said Ben, who owns a cafe a few towns over and isn’t sure he still wants to open another in East Palestine.

    “It’s hard to make an investment in something like that or even feel good about paying our mortgage whenever there might not be any value to those things in the future,” he said. “That’s something tough to come to grips with.”

    The Ratner family celebrates Halloween in 2022 their home in East Palestine, Ohio.

    The EPA, with the Ohio National Guard and a Norfolk Southern contractor, also has collected air samples – checking for vinyl chloride, hydrogen chloride, carbon monoxide, phosgene and other compounds – in the East Palestine community, it had said. Air monitoring results posted Tuesday at the EPA’s website include more than a dozen instruments, each with four types of measures – and each stating its “screening level” had not been exceeded.

    But when Velez returned Monday for a short visit to the neighborhood where his family has lived since 2014 to check his home and his business, he developed a nagging headache that, he said, stayed with him through the night – and left him with a nagging fear.

    “If it’s safe and habitable, then why does it hurt?” he told CNN. “Why does it hurt me to breathe?”

    Despite Velez’s experience, air quality does not appear to be the source of headaches and sore throats among people or deaths of animals such as cats and chickens in and around the derailment zone, Ohio Health Director Dr. Bruce Vanderhoff said Tuesday.

    “In terms of some of the symptoms of headache, et cetera, unfortunately volatile organic compounds share, with a host of other things, the ability to cause very common symptoms at the lower levels – so headache, eye irritation, nose irritation, et cetera,” he said. “I think that we have to look at the measured facts – and the measured facts include the fact that the air sampling in that area really is not pointing toward an air source for this.”

    “Anecdotes are challenging because they’re anecdotes,” Vanderhoff said. “Everything that we’ve gathered thus far is really pointing toward very low measurements, if at all.”

    As to odor, residents “in the area and tens of miles away may smell odors coming from the site,” Ohio EPA spokesperson James Lee told CNN on Wednesday. “This is because some of the substances involved have a low odor threshold. This means people may smell these contaminants at levels much lower than what is considered hazardous.”

    “If you experience symptoms, Columbiana County Health Department recommends calling your medical provider,” the EPA said.

    The Ratner family is limiting its water use because of unknown affects, Ben Ratner said. And Velez worries “every time we turn the water on or give my daughter a bath could potentially be hazardous,” he wrote on Facebook.

    Some waterways indeed have been contaminated – but the Ohio Environmental Protection Agency is confident contaminants are contained, said Tiffany Kavalec, the agency’s division chief of surface water.

    No vinyl chloride has been detected in any down-gradient waterways near the train derailment, she said Tuesday. But an estimated 3,500 fish across 12 species are estimated to have been killed by the derailment and spillage, said Mary Mertz, director of Ohio’s Department of Natural Resources.

    “Fire combustion chemicals” flowed to the Ohio River, “but the Ohio River is very large, and it’s a water body that’s able to dilute the pollutants pretty quickly,” Kavalec said. The chemicals are a “contaminant plume” the Ohio EPA and other agencies have tracked in real time and is believed to be moving about a mile an hour, she said.

    The “tracking allows for potential closing of drinking water intakes to allow the majority of the chemicals to pass. This strategy, along with drinking water treatment … are both effective at addressing these contaminants and helps ensure the safety of the drinking water supplies,” Kavalec said, adding they’re pretty confident “low levels” of contaminants that remain are not getting to customers.

    Even so, authorities strongly recommend people in the area drink bottled water, especially if their water is from a private source, such as a well.

    Velez also worries about unknown long-term effects of the burned train contents, he said.

    “My wife is a nurse and is not taking any chances exposing us and our two young children to whatever is now in our town,” he wrote on Facebook. “The risk and anxiety of trying to live in our own home again is not worth it.”

    Velez and his family have been Airbnb-hopping 30 minutes from their home since they evacuated, but rental options and their finances are running out, he said, and a friend set up a GoFundMe to help the family.

    “Unfortunately, many of us residents are stuck in the same situation and the sad truth is that there is no answer,” he wrote. “There is no viable solution other than to leave and pay a mortgage on a potentially worthless home.”

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  • Russia to cut oil output by 5% as sanctions bite | CNN Business

    Russia to cut oil output by 5% as sanctions bite | CNN Business


    London
    CNN
     — 

    Russia will cut crude oil production by half a million barrels per day starting in March, a little over two months after the world’s major economies imposed a price cap on the country’s seaborne exports.

    “We will not sell oil to those who directly or indirectly adhere to the principles of the price ceiling,” Russian Deputy Prime Minister Alexander Novak said in a statement. “In relation to this, Russia will voluntarily reduce production by 500,000 barrels per day in March. This will contribute to the restoration of market relations.”

    The cut is equivalent to about 5% of Russian oil output.

    Futures prices for Brent crude, the global benchmark, jumped 2.7% Friday to $86 a barrel as traders anticipated a tightening in global supply. US oil gained 1% to trade at $79 a barrel.

    In June last year, the European Union agreed to phase out all seaborne imports of Russian crude oil within the following six months as part of unprecedented Western sanctions aimed at reducing Moscow’s ability to fund its war in Ukraine.

    In a move aimed at further tightening the screws, G7 countries and the European Union agreed in December to cap the price at which Western brokers, insurers and shippers can trade Russia’s seaborne oil for markets elsewhere at $60 a barrel. Earlier this month, EU countries also banned imports of Russia’s diesel and refined oil imports.

    Novak warned that the crude oil price cap could lead to “a decrease in investment in the oil sector and, accordingly, an oil shortage.”

    Neil Crosby, a senior analyst at oil data firm OilX, told CNN that a 500,000 barrel-a-day cut is not the “worst-case scenario” and is still a smaller hit to Russian production than most analysts were expecting last year.

    “But it sets a precedent for further cuts ahead if necessary or desired by Russian authorities,” Crosby said, adding that Moscow could be anticipating difficulty in finding enough demand for its crude.

    Russian Urals crude traded at a discount to Brent crude of $28 a barrel on Friday. Over the past few months, India and China have snapped up cheap oil from Moscow, just as the EU — once Russia’s biggest customer for crude — has ended all imports.

    “Russia currently has a limited pool of buyers for its crudes and has likely found a ceiling to its export sales in the near term, primarily to China and India,” said Alan Gelder, vice president of refining, chemicals and oil markets at Wood Mackenzie.

    According to Reuters, Russia took the decision to reduce its output without consulting the OPEC+ group of producers, which includes Saudi Arabia. OPEC+ decided in October to cut output by 2 million barrels per day and has not adjusted that stance since.

    A potential drop in global oil supply could come at a tricky time. China’s swift reopening of its economy in December after almost three years of strict coronavirus restrictions has pushed up estimates for global oil demand.

    Last month, the International Energy Agency said it expected global demand to surge by 1.9 million barrels per day to reach an all-time high of 101.7 million barrels per day, with China accounting for nearly half of the increase.

    Western sanctions — added to the grinding cost of war — are weighing on Russia’s economy. The country’s budget deficit ballooned to $45 billion last year, or 2.3% of its gross domestic product.

    But Russia’s central bank held its main interest rate at 7.5% Friday, saying that economic activity was better than expected and that inflation was likely to come down this year.

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  • Here’s what keeps Jerome Powell up at night and interest rates high | CNN Business

    Here’s what keeps Jerome Powell up at night and interest rates high | CNN Business

    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN
     — 

    Federal Reserve Chairman Jerome Powell threw markets into a tizzy on Tuesday as he spoke about the economy alongside his former boss, Carlyle Group co-founder David Rubenstein, at the Economic Club of Washington.

    Stocks struggled for direction as investors tried to get a read on Powell’s economic outlook, attitude towards inflation and on future interest rate hikes. Wall Street cheered as the Fed chair said the disinflationary process has begun, then soured when he said the road to reaching 2% inflation will be “bumpy” and “long” with more rate hikes ahead.

    Markets soared to new highs, before quickly falling to session lows and then recovering to close the day in the green.

    “Powell doesn’t want to play games with financial markets,” said EY Parthenon chief economist Gregory Daco after the conversation. But at the same time, he said Powell wanted to communicate that the Fed’s “base case was not for inflation to come down as quickly and painlessly as some market participants appear to expect.”

    Here’s why Powell thinks bringing down prices will be more difficult than investors anticipate.

    Structural changes in the labor market: The US economy added an astonishing 517,000 jobs in January, blowing economists’ expectations out of the water. The unemployment rate fell to 3.4% from 3.5%, hitting a level not seen since May 1969.

    The current labor market imbalance is a reflection of the pandemic’s lasting effect on the US economy and on labor supply, said Powell on Tuesday in answer to a question about the report. “The labor market is extraordinarily strong,” he said. Demand exceeds supply by 5 million people, and the labor force participation rate has declined. “It feels almost more structural than cyclical.”

    “If we continue to get, for example, strong labor market reports or higher inflation reports, it may well be the case that we have to do more and raise rates more,” he said.

    Core services inflation: Powell noted that he’s seeing disinflation in the goods sector and expects to soon see declining inflation in housing. But prices remain stubborn for services. Service-sector inflation, which is more sensitive to a strong labor market, is up 7.5% from the year prior through the end of 2022, and has not abated, he said.

    “That sector is not showing any disinflation yet,” Powell said. “There has been an expectation that [higher prices] will go away quickly and painlessly and I don’t think that’s at all guaranteed.”

    Geopolitical uncertainties: Powell also cited concerns that the reopening of China’s economy after the sudden end of Covid-Zero restrictions, plus uncertainty about Russia’s war on Ukraine could also affect the inflation path in ways that remain unclear.

    The labor market is strong, but tech layoffs keep coming. There were around  50,000 tech jobs cut in January, and the trend has continued into February.

    Video conferencing service Zoom is one of the latest to announce layoffs. The company said Tuesday that it’s cutting 1,300 jobs or 15% of its workforce. 

    Zoom CEO Eric Yuan said in a blog post on Tuesday that Zoom ramped up employment  quickly due to increased demand during the pandemic. The company grew three times in size within 24 months, he said and now it must  adapt to changing demand for its services.

    “The uncertainty of the global economy, and its effect on our customers, means we need to take a hard — yet important — look inward to reset ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom’s long-term vision,” he wrote.

    Yuan added that he plans to lower his own salary by 98% and forgo his 2023 bonus. Shares of Zoom closed nearly 10% higher on Tuesday. 

    The announcement comes just one day after Dell said it would lay off more than 6,500 employees.

    Amazon

    (AMZN)
    , Microsoft

    (MSFT)
    , Google and other tech giants have also recently announced plans to cut thousands of workers as the companies adapt to shifting pandemic demand and fears of a looming recession.

    Neel Kashkari, president of the Federal Reserve Bank of Minneapolis told CNN that he is starting to think that the US economy could avoid a recession and achieve a so-called soft landing.

    It’s hard to have a recession when the job market is still so robust, he told CNN’s Poppy Harlow on Tuesday on CNN This Morning.

    Still, “we have more work to do,” Kashkari told Harlow, adding that the labor market is “too hot” and that is a key reason why it is “harder to bring inflation back down.”

    Although many investors are starting to think the Fed may pause after just two more similarly small hikes, to a level of around 5%, Kashkari said he believes the Fed may have to raise rates further. Kashkari has a vote this year on the Federal Open Market Committee, the Fed’s interest-rate setting group.

    It’s a good time to be in the oil business. BP’s annual profit more than doubled last year to an all-time high of nearly $28 billion.

    The British energy company said in a statement that underlying replacement cost profit rose to $27.7 billion in 2022 from $12.8 billion the previous year. The metric is a key indicator of oil companies’ profitability.

    BP

    (BP)
    also unveiled a further $2.75 billion in share buybacks and hiked its dividend for the fourth quarter by around 10% to 6.61 cents per share.

    BP’s shares rose 6% in Tuesday trading following the news. Over the past 12 months, its shares have soared 24%.

    The earnings are the latest in a string of record-setting results by the world’s biggest energy companies, which have enjoyed bumper profits off the back of skyrocketing oil and gas prices.

    Last week, another energy major Shell reported a record profit of almost $40 billion for 2022, more than double what it raked in the previous year after oil and gas prices jumped following Russia’s invasion of Ukraine.

    On Wednesday it was TotalEnergie

    (TTFNF)
    s turn. The French company posted annual profit of $36.2 billion for 2022, double the previous year’s earnings.

    Disney has found itself in the middle of a culture war battle that could end up transferring Disney World’s governance to a board appointed by Florida Gov. Ron DeSantis. And that may be the least of Disney’s problems, writes my colleague Chris Isidore.

    The company faces a media industry in turmoil, plunging cable subscriptions, a still-recovering box office, massive streaming losses, activist shareholders, possible reorganization and layoffs and growing labor disputes with employees. That’s a lot for CEO Bob Iger to handle.

    Iger, who retired as CEO in 2020 only to be brought back in November, has been mostly quiet about his plans for the company since his return. That ends at 4:30 p.m. ET Wednesday when he is set to begin an earnings call with Wall Street investors.

    Click here to read more about what to look for on what is certain to be a closely-followed call.

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  • BP’s annual profit more than doubles to $28 billion | CNN Business

    BP’s annual profit more than doubles to $28 billion | CNN Business


    Hong Kong
    CNN
     — 

    BP’s annual profit more than doubled last year to nearly $28 billion, extending a record run of earnings for the world’s oil majors that is adding to calls for higher taxes on the windfall gains.

    The British energy giant said in a statement that underlying replacement cost profit rose to $27.7 billion for 2022, compared with $12.8 billion the previous year. The metric is a key indicator of oil companies’ profitability.

    BP

    (BP)
    also announced on Tuesday a further $2.75 billion in share buybacks and hiked its dividend for the fourth quarter by around 10% to 6.61 cents per share.

    The earnings are the latest in a series of record-setting results by the world’s biggest energy companies, which have enjoyed bumper profits off the back of soaring oil and gas prices.

    Last week, Shell

    (RDSA)
    reported a record profit of almost $40 billion for 2022, more than double what it raked in the previous year after oil and gas prices soared following Russia’s invasion of Ukraine.

    — This is a developing story and will be updated.

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  • Residents not yet allowed to return to homes near site of fiery train derailment in Ohio | CNN

    Residents not yet allowed to return to homes near site of fiery train derailment in Ohio | CNN



    CNN
     — 

    Residents of the Ohio village of East Palestine remain unable to return home after a controlled release Monday of a toxic chemical from cars that were part of a train derailment three days ago, Mayor Trent Conaway said during an evening news conference.

    An operation to drain vinyl chloride – a chemical that officials said was unstable and could explode – from five Norfolk Southern rail cars began just after 4:30 p.m. ET.

    Scott Deutsch of Norfolk Southern had earlier said small, shaped charges would be used to blow a small hole in each rail car. The vinyl chloride would then spill into a trench where flares would ignite and burn it away.

    As of 7 p.m., the flames were reduced and a small fire continues in the pit, Deutsch said at the news conference.

    It is “still an ongoing event so we just ask everybody to stay out,” the mayor said. “We have to wait to the fires die down.”

    An evacuation zone of 1 mile around the train’s crash site remains in place, Conaway said. Authorities will reassess the zone Tuesday morning, he added. “We really don’t have a time frame right now” for the return of residents, he said.

    A team from the Environmental Protection Agency will monitor the air and water quality in the area, officials said.

    The remaining fires will go out on their own and won’t be extinguished by crews, Deutsch said.

    The five cars from the train, which derailed in a fiery accident Friday, were hurling toxic fumes into the air and shooting deadly shrapnel as far as a mile away, officials said earlier.

    One rail car in particular had been a focus of concern because its malfunctioning safety valves had prevented the car from releasing the vinyl chloride inside, a Columbiana County Emergency Management Agency official and a Norfolk Southern spokesperson told CNN earlier Monday.

    Ahead of the controlled release, the evacuation zone surrounding the fiery derailment site expanded to two states, Ohio Gov. Mike DeWine said.

    DeWine and Pennsylvania Gov. Josh Shapiro had ordered evacuations for a 1-mile-by-2-mile area surrounding East Palestine, a village of about 5,000 people near the Pennsylvania border, DeWine said.

    This followed evacuations that took place just after the massive inferno began Friday night.

    According to East Palestine resident Eric Whiting, police knocked on his door about an hour after the derailment and asked the family to evacuate.

    “They told me they didn’t know anything yet, but they just needed us to evacuate,” Whiting told CNN.

    Officials begged residents for several days to leave the area as fears about air and water quality have mounted.

    Mayor Conaway said Monday he was “proud of the citizens” as everyone cleared out when officials went door-to-door and there were no arrests.

    Here’s the latest on the ground:

    • Police shift communications hub: The scene was so dangerous by Monday morning that the East Palestine Police Department had evacuated a communications center for safety reasons, a spokesperson told CNN by phone Monday. “911 service will not be affected,” the department posted online.

    • Schools are closed: The East Palestine City School District will be closed for the rest of the week, citing a local state of emergency.

    • A mechanical issue was detected: The crew was alerted by an alarm shortly before the derailment “indicating a mechanical issue,” a National Transportation Safety Board (NTSB) member said. An emergency brake was applied, but about 10 cars carrying hazardous materials derailed.

    Whiting, the East Palestine resident, said he, his wife and three children took nothing with them when they evacuated Friday.

    “We live right by the railroad, so we heard the train come to an abrupt stop. But by the time I got dressed to check out what was happening, I heard emergency vehicles rushing towards us,” Whiting told CNN on Monday.

    The family returned home Saturday and stayed overnight. But law enforcement officers knocked on the door Sunday morning telling them to leave due to the potential for an explosion.

    So, they packed up clothes for a few nights and, along with their dog, headed to a hotel 20 minutes away.

    An Ohio state trooper tells residents to evacuate Sunday in East Palestine, Ohio.

    “It’s difficult. I’m in a cheap motel because I’m afraid of how much they’ll be willing to reimburse me for. It’s hard to take my laptop out (to work) and focus when I’m worried about getting food for the family throughout the day,” Whiting said.

    He’s also worried what the environmental impact on East Palestine will be, he said.

    A “drastic change” was detected Sunday related to the vinyl chloride, Fire Chief Keith Drabick said.

    Breathing high levels of vinyl chloride can make someone pass out or die if they don’t get fresh air, the Ohio Department of Health said.

    The man-made chemical used to make PVC burns easily at room temperature; can cause dizziness, sleepiness and headaches; and has been linked to an increased risk of cancer in the liver, brain, lungs and blood.

    “If a water supply is contaminated, vinyl chloride can enter household air when the water is used for showering, cooking, or laundry,” the National Cancer Institute says.

    While air and water quality remained stable Sunday, “things can change at any moment,” James Justice of the EPA’s Emergency Response warned.

    According to the Centers for Disease Control and Prevention: “Vinyl chloride in water or soil evaporates rapidly if it is near the surface. Vinyl chloride in the air breaks down in a few days, resulting in the formation of several other chemicals including hydrochloric acid, formaldehyde, and carbon dioxide.”

    The agency also warns that liquid vinyl chloride that touches skin will numb it and produce redness and blisters.

    There was a mechanical failure warning before the crash, NTSB Member Michael Graham said Sunday. About 10 of 20 cars carrying hazardous materials – among more than 100 cars in all – derailed, the agency said.

    “The crew did receive an alarm from a wayside defect detector shortly before the derailment, indicating a mechanical issue,” Graham said. “Then an emergency brake application initiated.”

    Investigators also identified the point of derailment and found video showing “preliminary indications of mechanical issues” on one of the railcar axles, Graham said.

    NTSB is still investigating when the potential defect happened and the response from the crew, which included an engineer, conductor and conductor trainee, Graham added.

    Investigators have also requested records from Norfolk Southern, including track inspection records, locomotive and railcar inspections and maintenance records, train crew records and qualifications, Graham said.

    Rail travel is recognized as the safest method of transporting hazardous materials in the US, according to the US Department of Transportation’s Federal Railroad Administration.

    “The vast majority of hazardous materials shipped by rail tank car every year arrive safely and without incident, and railroads generally have an outstanding record in moving shipments of hazardous materials safely,” the administration said.

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  • Diesel prices fall in Europe despite ban on Russian fuel | CNN Business

    Diesel prices fall in Europe despite ban on Russian fuel | CNN Business


    London
    CNN
     — 

    Europe’s ban on Russia’s diesel arrived painlessly on Sunday.

    Although the EU cut off its biggest supplier, diesel futures prices in the bloc fell 1.6% on Monday, amounting to a 20% loss over the past two weeks as demand in the region has waned, and efforts by countries to stockpile ahead of the ban have started to pay off.

    The price drop will be met with relief by millions of the continent’s truckers, drivers and businesses that rely on diesel. About 96% of trucks, 91% of vans and 42% of passenger cars in the European Union run on the fuel, according to the European Automobile Manufacturers’ Association.

    “The expectation was that, when the ban came in, diesel supply into Europe would tighten but, actually, that’s currently not materializing,” Mark Williams, a research director at consultancy Wood Mackenzie, told CNN.

    The diesel ban comes two months after the bloc placed an embargo on seaborne crude oil imports from Russia, as part of a package of sanctions against Moscow for its invasion of Ukraine. Russia accounted for 29% of the region’s total diesel imports last year, data from Rystad Energy shows.

    Countries have prepared for the latest ban by ramping up imports of Moscow’s diesel in recent months. Europe’s imports were up nearly 19% in the fourth quarter of 2022 compared with the same period the previous year, according to energy data provider Vortexa.

    “Those stocks should act as a buffer against the immediate loss of Russian diesel imports,” Williams said.

    Demand across the bloc is also weak.

    Data from OilX, an oil analytics firm that, shows that diesel demand in Europe was down between the start of November and the end of January compared with the same period a year before.

    Analysts attribute the slump partly to warmer-than-usual weather in the region, where diesel is also used as a heating fuel, and high prices. Despite recent drops, wholesale prices are still 10% above their level the same time last year.

    At the pump, the average cost of a liter of diesel in the EU hit €1.80 ($1.93) on January 30, up from €1.60 ($1.72) the same time last year, data from the European Commission shows.

    Neil Crosby, a senior analyst at OilX, told CNN that “persistently weak demand data” in Europe had helped it “substantially boost its gasoil stocks over the last few months.”

    Still, it may take a few months for the full impact of the ban to be felt as Europe starts to import more diesel from suppliers further afield, incurring higher shipping costs.

    The bloc is already importing significantly higher volumes of diesel from the United States, the Middle East and parts of Asia, according to Williams at Wood Mackenzie.

    Even so, those imports will not be enough to “offset the loss of Russian barrels into Europe,” once Europe whittles down its stockpile, he said, adding that prices relative to other importing regions could start to rise from the third quarter this year.

    The impact of the ban on Russia may also be underwhelming.

    Moscow has managed to reroute more of its diesel to other markets since July of last year. Exports to Turkey and North Africa have soared 154% between November and January compared with the same period a year before, according to Rystad Energy.

    Jorge León, a senior vice president at the firm, sees this trend continuing, he told CNN, also predicting that Russian exports to South America are likely to stay at “marginal” levels.

    However, he added that the United States could redirect some of its current diesel exports to South America to Europe, with Russian diesel then “find[ing] a home” in South America.

    OilX’s Crosby noted that there are “many more” potential buyers of Moscow’s diesel compared with its crude exports.

    “Most Russian diesel barrels will manage to make it to global markets,” he said. “The notion that Russian diesel will have a very hard time finding new homes is beginning to lose credibility.”

    — Julia Horowitz contributed reporting.

    Correction: An earlier version of this article incorrectly reported the measurement of diesel that has fallen in Europe. Diesel demand has fallen.

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  • Ohio train continues burning days after derailment as officials say air, water quality remain safe for now | CNN

    Ohio train continues burning days after derailment as officials say air, water quality remain safe for now | CNN



    CNN
     — 

    Officials continued on Sunday to monitor the environmental impact caused by a derailed train carrying hazardous materials late Friday in East Palestine, Ohio, a crash that led to a large inferno that continues to burn, evacuations, a shelter-in-place order and concerns about air quality.

    Trent Conaway, the mayor of East Palestine, assured residents the air and drinking water remain safe after the Norfolk Southern train crash. He said classes at East Palestine schools would be canceled Monday, as would city meetings.

    The train derailed in East Palestine, about 15 miles south of Youngstown, Friday evening, according to earlier comments by officials. Of the more than 100 cars, about 20 were carrying hazardous materials, according to the National Transportation Safety Board, which is investigating the incident.

    Ten of those cars derailed, including five that were carrying vinyl chloride, the NTSB said in a statement Saturday. The agency said so far it had “not confirmed vinyl chloride has been released other than from the pressure release devices.”

    While air and water quality remained stable Sunday, and officials have yet to see abnormal levels in screenings, “things can change at any moment,” said James Justice, an on-scene coordinator with the EPA’s Emergency Response.

    Authorities continue to monitor for a “long list” of chemicals, he said – not only those provided to authorities in a list from Norfolk Southern, but also those that can result from combustion.

    Officials issued a shelter-in-place order for the entire town of roughly 5,000 people, and an evacuation order was issued for the area within a mile radius of the train crash near James Street.

    Both restrictions remained in place Sunday, Conaway said at a news conference. Fire Chief Keith Drabkick told reporters at the news conference the scene remained volatile, preventing authorities from conducting on-scene operations. Crews will not be able to determine the full list of chemicals involved until the fires stops burning, Drabkick said.

    Officials urged residents to follow the shelter-in-place orders. On Saturday evening, one person was arrested for misconduct after approaching the scene and getting too close to the train, the mayor said.

    “Please stay home. I can’t reiterate it enough,” Conaway said. “Do not come to our town.”

    The Ohio EPA is monitoring water quality in local streams, which eventually feed into the Ohio River, a spokesperson said, but the agency does not anticipate contamination to East Palestine’s public water system, which draws from other sources.

    The agency installed containment dams in area streams and set up three aeration locations using high volume pumps to treat water and remove dissolved contaminants.

    In an email to CNN Sunday morning, a spokesperson for Norfolk Southern deferred all questions to the NTSB.

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  • A vulnerable power grid is in the crosshairs of domestic extremist groups | CNN

    A vulnerable power grid is in the crosshairs of domestic extremist groups | CNN



    CNN
     — 

    Gunshots fired at two power substations in Moore County, North Carolina, late last year left 45,000 homes and businesses without power and more attacks just like that could already be planned by domestic extremist groups, according to experts.

    “All of a sudden, about 8:45 p.m., about 20 shots fired off right across the street,” Spencer Matthews told CNN affiliate WRAL shortly after the December attack.

    The gunfire hit critical parts of the substations and the power went out.

    “Got no way to heat because we don’t have a fireplace,” one woman told WRAL after her home was plunged into darkness.

    Investigators found nearly two dozen shell casings from a high-powered rifle near the substations, but so far have not found a gun or made any arrests.

    Experts say the two substation attacks could be the work of domestic extremists who have openly advocated targeting a vulnerable power system.

    The motive behind the December 3 attack is still not known, but it came after an FBI bulletin in November warned of threats by extremist groups to “create civil disorder and inspire further violence.”

    “This typically very primitive style attack equals millions of dollars in damage,” Brian Harrell, a former US Department of Homeland Security Assistant Secretary for Infrastructure Protection, told CNN. “If you were to shoot out some very key components you can quickly create an effect where this large multimillion dollar transformer becomes essentially a paperweight.”

    In 2022 there were 25 “actual physical attacks” reported on power facilities across the US and one report of “sabotage,” according to the latest statistics available from the Department of Energy.

    The data also shows 57 reports of suspicious activity, and 80 acts of vandalism.

    The numbers are mostly trending up, compared with 2021, when there were six actual physical attacks reported and two reports of sabotage. The data also shows 32 reports of suspicious activity, and 52 acts of vandalism.

    Many attacks remain unsolved.

    “There’s no doubt in my mind that 2023… is probably going to be the most catastrophic when it comes to the uptick of DVE (Domestic Violent Extremist) attacks on electricity infrastructure,” Harrell said. “A number of individuals and extremist groups online right now have already signaled that this is a part of their playbook.”

    One of those playbooks, with a swastika and lightning bolts on the cover, published on a social media platform by a neo-Nazi group, makes their aim quite clear.

    “The main thing that keeps the anti-White system going is the powergrid,” the document reads. “This is something that is easier than you think. Peppered all over the country are power distribution substations… Sitting ducks, worthy prey.”

    It’s part of a White-power philosophy called “accelerationism,” which wants to destroy society and replace it with one based on their racist ideologies.

    “With the power off, when the lights don’t come back on… all hell will break lose, [sic] making conditions desirable for our race to once again take back what is ours,” they write.

    The head of another accelerationist group posted on social media that these attackers have “cracked the code on lone wolf attacks.”

    The attacks “check off all the necessary boxes which I didn’t think possible for lone wolf ops in USA – Frequency, sustainability, geographic concentration,” he is quoted as saying. “Law enforcement appears powerless (no pun intended) to stop them.”

    These groups dream of striking exactly the right spots in the power grid, which government reports have warned for decades could cause a domino effect and leave huge parts of the country in the dark.

    “If you were to target, you know, eight or nine very key nodes throughout the United States, you potentially could have a collapsing effect,” Harrell warns.

    High voltage transmission power lines and substations are often spread across the country in out of the way places which can be hard to keep safe and technically challenging to secure.

    “It’s inherently very difficult to harden or protect it all,” Granger Morgan, an engineering professor at Carnegie Mellon University told CNN. “It may not take all that high tech an approach to cause physical disruption that could have very large consequences.”

    Morgan is the chair of the National Academy of Science’s committee on enhancing the resilience of the nation’s power system.

    “Physical attacks on major system components could cause serious physical damage, especially to large transformers and other hard to replace substation and transmission equipment such as high voltage circuit breakers,” one of his papers from 2017 warned. “Recovery could easily require many days or weeks.”

    Right now there is no central authority that regulates the entire power system, which, Morgan says, gets in the way of changes needed to make the system more robust and resilient from attack.

    Justice Department forms new domestic terrorism unit

    “No one at the moment has authority to deal with the entire system, and we need to get that situation fixed,” he said. “We’ve got the federal regulators overseeing the high voltage system that brings power across long distances. We’ve got state public utility commissions dealing with things at the state level, we got both private and public power.”

    Morgan said a presidential commission or other powerful political body needs to be appointed to take the lead in protecting the grid and making it more resilient to attacks.

    “We just need to get much more systematic in terms of figuring out both how we protect against it, but also how we can quickly put the system back together again, once a problem arises,” he said.

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  • US, EU, G7 and Australia announce new price cap on Russian petroleum products | CNN Politics

    US, EU, G7 and Australia announce new price cap on Russian petroleum products | CNN Politics



    CNN
     — 

    The US and allies are trying to further limit Russia’s ability to make money and finance its war efforts with new price limits on products like gasoline and fuel oil, a senior Treasury official announced Friday – adding to sanctions on Russian energy sales in response to the country’s invasion of Ukraine.

    “Our intent is not to crash the Russian economy,” the official told reporters Friday. “Our intent is to make it impossible for the Kremlin to continue to make the choice of propping up the economy and also paying for their war.”

    The agreement between the US, the G7, the European Union and Australia places a price cap on “seaborne Russian-origin petroleum products,” the US Department of Treasury said. There are two price levels: one applies to “premium-to-crude” petroleum products like diesel, kerosene and gasoline, which will be capped at $100 USD per barrel, and “discount-to-crude” petroleum products like fuel oil, which will be capped at $45 USD per barrel.

    “The thing that we’re focused on is cutting off the revenue,” the official said. “We’re also going after their military industrialized complex and supply chain so they can’t use the money they have to buy the weapons they need. Our approach to this is really to go after the things that are crucial to the Kremlin’s war effort and their ability to prop up their economy.”

    In December, the same group implemented a price cap on crude oil – which the Treasury official said was already impeding Russia’s ability to finance the war. They added Russia had “openly acknowledged” the price cap was hurting the country’s economy. Data released by Russia showed that monthly tax revenues from energy sales declined 46% from the month prior.

    Officials shrugged off reports that, despite numerous sanctions, Russia’s economy is still expected to rebound and may even outpace Germany and Great Britain. The senior Treasury official said economically, the country “doesn’t function any longer like a normal economy.”

    “They’ve shut it down largely, meaning that if you have money of Russia, they’ll let you keep putting money in Russia, but you can’t take money out. They no longer allow foreign capital coming into Russia,” the official said. “They’re needing to spend more money to prop up their economy because they become a closed economy.”

    The reality, the official said, is that Russia’s budget deficit is growing “because the war is costing them more money” because the “bravery of the Ukrainian people” and the “weapons” were a surprise to them.

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  • Adani will ask Big 4 accounting firm for a ‘general audit,’ says TotalEnergies | CNN Business

    Adani will ask Big 4 accounting firm for a ‘general audit,’ says TotalEnergies | CNN Business


    London
    CNN
     — 

    One of Gautam Adani’s biggest international partners, TotalEnergies

    (TOT)
    , said Friday that his Indian conglomerate is preparing to appoint a global accounting firm to conduct a “general audit” of its business.

    In a statement detailing what it described as its “limited” exposure of $3 billion to Adani Group businesses, the French company said it “welcomes the announcement by Adani to mandate one of the ‘big four’ accounting firms to carry out a general audit.”

    Investors have been fleeing Adani’s companies since a US short seller, Hindenburg Research, accused the group of fraud and stock market manipulation last month. Adani has denied the allegations but shares in Adani Enterprises, his flagship firm, have lost more than 60% since they surfaced last week. In total, Adani Group companies have lost $110 billion in market value.

    One of the world’s biggest energy companies, TotalEnergies is exposed to Adani via investments in four joint ventures in India.

    Adani Group declined to comment on whether it was planning to appoint one of the Big 4 accounting firms as auditor. CNN contacted the four auditors — Deloitte, EY, KPMG and PwC — but none of them responded immediately to a request for comment.

    Adani Enterprises used a small Indian firm called Shah Dhandharia & Co to audit its 2021-2022 accounts, according to its annual report. A document on Adani Enterprises’ website dated January 13, 2023, also names Shah Dhandharia as “statutory auditors” and provides the firm’s website address.

    The address now appears invalid. In its report, Hindenburg Research said historical archives of the firm’s website showed that it had only four partners and 11 employees.

    Trading in five listed Adani firms was halted Friday after they fell to daily limits set by the Indian stock exchange. They include Adani Total Gas and Adani Green Energy, ventures in which TotalEnergies has invested.

    In its statement, the French energy giant said it had made investments in Adani’s entities “in full compliance” with Indian laws and with its own internal governance processes. The due diligence had been completed to its “satisfaction” and was “consistent with best practices,” it added.

    The confident tone stands in stark contrast to the devastating allegations made by Hindenburg Research in its January 24 report. The Adani Group has denounced it as “baseless” and “malicious,” but analysts say the group hasn’t convincingly answered the questions raised by the report.

    Adani is seen as a close ally of India’s prime minister, Narendra Modi, and is one of the world’s richest people. Last week, he had a net worth of $120 billion, making him the fourth-richest person globally. His net worth has now fallen to a little more than $61 billion and claims the 21st spot on Bloomberg’s Billionaires Index.

    — Diksha Madhok in New Delhi and Anna Cooban in London contributed to this article.

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  • Shell profits double to record $40 billion | CNN Business

    Shell profits double to record $40 billion | CNN Business


    Hong Kong/London
    CNN
     — 

    Shell made a record profit of almost $40 billion in 2022, more than double what it raked in the previous year after oil and gas prices soared following Russia’s invasion of Ukraine.

    Europe’s largest oil company by revenue reported adjusted full-year earnings of $39.9 billion on Thursday — more than double the $19.3 billion it posted in 2021 — driven by a strong performance in its gas trading business. The company’s stock was up 1.7% in London.

    The company reported $9.8 billion in profit in the fourth quarter. Just over 40% of Shell’s full-year earnings came from its integrated gas business, which includes liquified natural gas trading operations.

    Shell CEO Wael Sawan said the results “demonstrate the strength of Shell’s differentiated portfolio, as well as our capacity to deliver vital energy to our customers in a volatile world.”

    The earnings are the latest in a series of record-setting results by the world’s biggest energy companies, which have enjoyed bumper profits off the back of soaring oil and gas prices.

    ExxonMobil this week posted record full-year earnings of $59.1 billion. Last month, Chevron

    (CVX)
    reported a record full-year profit of $36.5 billion.

    That has led to renewed calls for higher taxation. Governments in the European Union and the United Kingdom have already imposed windfall taxes on oil company profits, with the proceeds used to help households struggling with rising energy bills.

    Shell said it expected to pay an additional $2.3 billion in tax related to the EU windfall tax and the UK energy profits levy. The company paid $13 billion in tax globally in 2022.

    Shell

    (RDSA)
    also announced another $4 billion share buyback program and confirmed it would lift its dividend per share by 15% for the fourth quarter.

    This is a developing story and will be updated.

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  • Blackouts and soaring prices: Pakistan’s economy is on the brink | CNN Business

    Blackouts and soaring prices: Pakistan’s economy is on the brink | CNN Business


    Islamabad/London
    CNN
     — 

    Muhammad Radaqat, a 27-year-old greengrocer, is worried. He doesn’t know how much an onion will cost next week, let alone how he’ll be able to afford the fuel he needs to heat his home and keep his family warm.

    “All we’re being told by the government is that things are going to get worse,” Radaqat told CNN.

    His anxiety reflects the mood of a nation racing to ward off an economic meltdown. Faced with a shortage of US dollars, Pakistan only has enough foreign currency in its reserves to pay for three weeks of imports.

    Thousands of shipping containers are piling up at ports, and the cost of essentials like food and energy is skyrocketing. Long lines are forming at gas stations as prices swing wildly in the country of 220 million.

    A nationwide power outage last month made people even more alarmed. It brought Pakistan to a standstill, plunging residents into darkness, shutting down transit networks and forcing hospitals to rely on backup generators. Officials have not identified the cause of the blackout.

    Pressure is growing on Prime Minister Shehbaz Sharif’s government to unlock billions of dollars in emergency financing from the International Monetary Fund, which sent a delegation to the country this week for talks.

    Pakistan’s currency, the rupee, recently dropped to new lows against the US dollar after authorities eased currency controls to meet one of the IMF’s lending conditions. The government had been resisting the changes the IMF requested, such as easing fuel subsidies, since they would cause fresh price spikes in the short term.

    “We need the IMF agreement to go through as soon as possible for us to save the ship,” said Maha Rehman, an economist and the former head of analytics at the Centre for Economic Research in Pakistan.

    Pakistan is experiencing what economists call a balance-of-payments crisis. The country has been spending more on trade than it has brought in, running down its stock of foreign currency and weighing on the rupee’s value. These dynamics make interest payments on debt from foreign lenders even more expensive and push the cost of importing goods higher still, requiring even bigger drawdowns in reserves that compound the distress.

    The country is also grappling with rampant price increases. The country’s central bank has hiked its key interest rate to 17% in a bid to clamp down on annual consumer inflation of almost 28%.

    Some issues the country faces are specific to Pakistan. Political instability and efforts to prop up its currency, for example, have weighed on investment and exports, according to Tahir Abbas, head of investment research at Arif Habib, the country’s largest securities brokerage.

    Historic floods last summer have also led to huge bills for reconstruction and aid, adding to strains on the government budget. The World Bank has estimated that at least $16 billion is needed to cope with damage and losses.

    Pakistan's usually bustling ports, like this one in Karachi, have ground to a halt as the country grapples with a severe shortage of foreign currency.

    Yet global factors are making the situation worse. The economic slowdown has weighed on demand for Pakistan’s exports, while a sharp rally in the value of the US dollar last year piled pressure on countries that import significant volumes of food and fuel. Prices for these commodities had already spiked due to the pandemic and Russia’s war in Ukraine, requiring larger outlays.

    The IMF has warned repeatedly that this could stress vulnerable economies. While it forecasts that emerging market and developing economies will see a modest uptick in growth this year as the dollar comes off its highs, global inflation falls and China’s reopening spurs demand, the ability to manage debt loads remains a concern.

    It estimated this week that 15% of low-income countries are already in debt distress, while another 45% are at high risk of struggling to meet their obligations. An additional 25% of emerging market economies are also at high risk. Tunisia, Egypt and Ghana have all sought IMF bailouts worth billions of dollars in recent months.

    “The combination of high debt levels from the pandemic, lower growth and higher borrowing costs exacerbates the vulnerability of these economies, especially those with significant near-term dollar financing needs,” the IMF wrote in its world economic outlook this week.

    For Pakistan to avoid default, talks with the IMF to restart its stalled assistance program must succeed, according to investors and economists. The IMF’s delegation arrived on Tuesday and is set to stay through Feb. 9.

    “Availability of the IMF loan is critical,” said Ammar Habib Khan, a senior non-resident fellow at the Atlantic Council.

    But Farooq Tirmizi, the CEO of Elphinstone, a startup geared at Pakistani investors, said that even if the IMF program resumes, it won’t fix all the problems, since the main issues plaguing Pakistan are “not economic, but political, with a government in place that is not willing to make structural changes.”

    Pakistan’s economic crisis was at the center of a political showdown between Sharif and his predecessor, Imran Khan, last year. Khan was ousted by a no-confidence vote in April after Sharif accused him of economic mismanagement.

    The situation has remained turbulent since then. Pakistan has gone through three finance ministers in less than a year. The last two were part of the current government, raising questions about whether Sharif can hold onto power. The country is expected to hold a general election this summer.

    A woman checks rice prices at a wholesale market in Karachi, Pakistan.

    The tumult comes as Pakistan faces a fresh wave of attacks by militants. Earlier this week, a suicide bomb ripped through a mosque in the city of Peshawar, killing at least 100 people. It was one of the deadliest attacks in the country in years.

    People are suffering in the meantime. Farmers who lost cotton, date, sugar and rice crops to flooding still need help. The World Bank predicted in October that as many as nine million Pakistanis could be pushed into poverty without “decisive relief and recovery efforts to help the poor.”

    High inflation is only boosting pain for households struggling to make ends meet. Food prices in January rose 43% year over year, according to data released this week.

    Attention focused recently on a man in the southern province of Sindh who lost his life in a scramble to obtain a bag of subsidized flour handed out by local authorities. He was crushed to death by the crowd alongside him.

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  • The deadly ice storm crippling much of the South leaves more than 300,000 Texans without power in the frigid cold | CNN

    The deadly ice storm crippling much of the South leaves more than 300,000 Texans without power in the frigid cold | CNN



    CNN
     — 

    Treacherous road conditions are now linked to three deaths in Texas as a wave of ice and sleet continues to hammer parts of the southern and central US into the overnight hours.

    A 49-year-old woman was killed this week when she lost control of her truck on an icy road north of Eldorado, the Texas Department of Public Safety told CNN on Wednesday.

    Two other deaths were previously linked to the storm that coated Texas cities with sleet or ice. In south Austin, one person died Tuesday morning in a 10-car pileup, the city’s fire department said. Another person died when their car rolled over in the Dallas-area city of Arlington, police said.

    The dangerous conditions are not over. A nasty combination of freezing rain, sleet and accumulating ice are expected hit parts of Texas, Arkansas and Tennessee through at least Thursday morning, forecasters said.

    “Road conditions will be AWFUL after sunset and overnight,” the National Weather Service in Fort Worth said. “DO NOT BE ON THE ROADS.”

    More than an inch of sleet has already piled up in parts of Texas, Oklahoma, Arkansas, Missouri, Kentucky and Illinois since Monday.

    In Texas alone, more than 350,000 homes, businesses and other power customers had no electricity in the frigid cold Wednesday night, according to PowerOutage.US.

    Ice brought down multiple trees and large tree limbs Wednesday, causing power outages across the Austin metro area, the National Weather Service said.

    Dangerous conditions prompted Parkland Health system in Dallas to extend the closure of its clinics on Thursday.

    Here’s what’s on tap in the southern and central US:

    • Texas: The state has seen heavy freezing rain throughout Wednesday, which will continue steadily into overnight across much of northern and central Texas as temperatures remain below freezing.

    • Southern Oklahoma: Freezing rain continues to move across the region and will last through Thursday morning.

    • South-central Arkansas and Tennessee’s Memphis area: An additional tenth- to quarter-inch of ice could pile up through Thursday morning.

    • Across the region: Total ice accumulation of at least a quarter of an inch is likely from West Texas to western Tennessee through Thursday morning. Up to a half-inch could build up in parts of central and north-central Texas and southern Arkansas, the National Weather Service said.

    • Widespread flight cancellations: More than 2,400 flights within, into or out of the US were canceled Wednesday, according to the tracking website FlightAware.

    Jackknifed tractor-trailers blocked Interstate 10 in Reeves County, Texas, on Tuesday.

    In a state not accustomed to heavy ice, a group of Jeep enthusiasts used their vehicles to help stranded drivers.

    The Dallas-based “Carnales Off Road” group regularly supports those in need, founder Jorge Coronilla Muñiz told CNN.

    “It’s not the first time we’ve done this during bad weather. We try to help as often as possible,” Muñiz said.

    Several semi-trucks got stuck on Interstate 20 on Tuesday, and about 30 Jeeps helped tow them.

    “Before we got to I-20, we also helped a few other cars who were stuck on the streets,” Muniz said. “We eventually came across the standstill on Interstate 20 and helped an additional 20 trucks.”

    Muñiz said he and other group members helped stranded motorists from early Tuesday morning all the way until 10 p.m.

    “Everyone was very grateful for our help, especially the truck drivers. Some even asked if we were going to charge them for the help, but we told them we were just there to help.”

    The group is back out on the roads Wednesday and will help medical professionals having difficulty getting to and from work, Muñiz said.

    More than 12 million people across parts of southeastern Oklahoma, southern Missouri, central and eastern Arkansas, western Tennessee, northwestern Mississippi and Texas are under ice storm warnings Wednesday.

    The weather service issues ice storm warnings when ice accumulations of more than a quarter of an inch are possible.

    Unsafe travel conditions Tuesday led to hundreds of car crashes across Texas, officials said. Emergency workers responded to people suffering from hypothermia or those injured after slipping on ice. The Texas National Guard is prepared to help stranded motorists, clear roadways and provide welfare checks, Gov. Greg Abbott said. And Texas Parks and Wildlife has at least 30 responders ready for search and rescue operations.

    Meanwhile, a separate storm system will also send temperatures plunging across the Northeast.

    The National Weather Service predicts “dangerously cold temperatures” in the region Friday and Saturday, with freezing cold wind chills that can cause frostbite in just 10 minutes, it said.

    “Limit time outdoors and cover all skin if going out,” the service added.

    The service forecasts wind chills of -20 to -35 degrees Fahrenheit early Friday affecting parts of New York, Vermont, New Hampshire and Maine, while Saturday morning could bring wind chills of -60 degrees Fahrenheit across northern New England, the weather service said.

    Leaders across states including Rhode Island, Connecticut and Maine were coordinating resources ahead of the extreme weather and setting up warming centers, according to messages from the governors.

    “Temperatures this weekend will be extremely – and dangerously – cold across the state,” Maine Gov. Janet Mills said in a Tuesday news release. “Please take extra precautions, be careful if you go outside, and be sure to check on your family, friends, and neighbors to make sure they are okay.”

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  • Biden administration takes another step toward advancing a controversial oil drilling project in Alaska | CNN Politics

    Biden administration takes another step toward advancing a controversial oil drilling project in Alaska | CNN Politics



    CNN
     — 

    The Interior Department’s Bureau of Land Management on Wednesday advanced the controversial Willow oil drilling project on Alaska’s North Slope, releasing the final environmental impact statement before the project can be approved.

    The ConocoPhillips proposed Willow drilling plan is a massive and decadeslong project that the state’s bipartisan Congressional delegation says will create much-needed jobs for Alaskans and boost domestic energy production in the US.

    But environmental groups fear the impact of the planet-warming carbon pollution from the hundreds of millions of barrels of oil it would produce – and say it will deal a significant blow to President Joe Biden’s ambitious climate agenda.

    The final environmental report from the Bureau of Land Management recommends a slightly smaller version of what ConocoPhillips originally proposed, putting the number of drilling sites at three instead of five. The Department of Interior is also recommending other measures to try to lower the pollution of the project, and recommending a smaller footprint of gravel roads and pipelines.

    In a statement, the Interior Department said it “has substantial concerns about the Willow project and the preferred alternative as presented in the final SEIS, including direct and indirect greenhouse gas emissions and impacts to wildlife and Alaska Native subsistence.”

    The Biden administration now has 30 days to issue a final decision on the project, after which drilling could begin. In its statement, Interior said it could select a different alternative on the project, including taking no action or further reducing the number of drill sites.

    ConocoPhillips and members of the Alaska Congressional delegation have been pushing the administration to finalize the project by the end of February to take advantage of cold and icy conditions needed to drill in the Arctic. If the company misses that window, it could push the project’s start date to next year.

    Erec Isaacson, president of ConocoPhillips Alaska, said in a statement that nearly five years of regulatory review should conclude “without delay.” Isaacson added the project is “ready to begin construction immediately” after Interior’s final decision is issued.

    According to the Interior Department’s own estimation, the project would produce 629 million barrels of oil over the course of 30 years and would release around 278 million metric tons of planet-warming carbon emissions. Climate groups say that’s equivalent to what 76 coal-fired power plants produce every year.

    “The world and the country can’t afford to develop that oil,” said Jeremy Lieb, a senior attorney for environmental law firm Earthjustice. Lieb and other advocates are concerned that Willow may be the start of a future drilling boom in the area.

    “Willow is just the start based on what industry has planned,” Lieb said. “The total estimate for the amount of oil that could be accessible in the region around Willow is 7 or 8 billion barrels.”

    For the Willow project, ConocoPhillips is proposing five drilling sites on federal land in Alaska’s North Slope, and the project would include a processing facility, pipelines to transport oil, gravel roads, at least one airstrip and a gravel mine site.

    The project – and the public comment process leading up to it – has also received heavy criticism from the nearby Alaska Native village of Nuiqsut, which some villagers evacuated last year during a gas leak in a ConocoPhillips project in the area. Nuiqsut officials recently released a letter calling the Bureau of Land Management’s public input process “disappointing and inadequate,” criticizing both the Trump and Biden administration’s timeline.

    The bureau’s “engagement with us is consistently focused on how to allow projects to go forward; how to permit the continuous expansion and concentration of oil and gas activity on our traditional lands,” Nuiqsut officials wrote in their letter.

    Alaska’s entire Congressional delegation – including newly elected Rep. Mary Peltola, a Democrat – have urged the White House and Interior to approve the project, saying it would be a huge boost to state’s economy.

    Sen. Lisa Murkowski, in particular, has been urging the White House and Biden personally to greenlight Willow, she told CNN.

    “I’ve been pretty persistent on this,” she told CNN in an interview this summer. “Let’s just say, any conversation I’ve ever had with the White House, anyone close to the White House, I’ve brought up the subject of Willow.”

    As gas prices spiked last summer, Murkowski, Sen. Joe Manchin of West Virginia, a Democrat, and other Senate Republicans tightened the pressure on Biden to approve a major domestic oil drilling project. Environmental advocates, meanwhile, argued the project will not bring US gas prices down any time soon, as the infrastructure will take years to build.

    “When you think about those things that should be teed up and ready to go, this is one where in my view there’s really no excuse for why we should see further delay,” Murkowski said. “This is something that’s been in the works that’s gone through so much process, across multiple administrations.”

    This story has been updated with more information.

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  • California floated cutting major Southwest cities off Colorado River water before touching its agriculture supply, sources say | CNN

    California floated cutting major Southwest cities off Colorado River water before touching its agriculture supply, sources say | CNN



    CNN
     — 

    In a closed-door negotiation last week over the fate of the Colorado River, representatives from California’s powerful water districts proposed modeling what the basin’s future would look like if some of the West’s biggest cities – including Phoenix and Las Vegas – were cut off from the river’s water supply, three people familiar with the talks told CNN.

    More than 5 million people in Arizona are served by Colorado River water, which accounts for 40% of Phoenix’s supply. Around 90% of Las Vegas’ water is from the river.

    The proposal came in a session between states that was focused on achieving unprecedented water cuts to save the Colorado River – a system that overall provides water and electricity to more than 40 million people in the West. For months, seven states have been trying to come up with cuts to keep the river system from crashing.

    As the river shrinks, talks to save it are increasingly pitting the longstanding senior water rights of farmers against explosive metropolitan growth.

    California was proposing following the “law of the river,” which gives farmers in major agricultural districts first dibs on water because they have a priority claim established before other districts’ rights – including Californian cities like Los Angeles, which receives around half of its water from the Colorado River.

    The eye-popping suggestion was met with strong and immediate pushback from other state officials at the negotiating table, the people familiar with the discussions said.

    John Enstminger, the general manager for the Southern Nevada Water Authority who was not present at this particular session, told CNN the proposal was a major concern for public health and safety in Western cities.

    “If you want to model cutting off most or all of the water supply of 27 million Americans, you can go through the exercise but implementing that on the ground would have the direst consequence for almost 10% of the country,” Entsminger said.

    Arizona’s top water official, Tom Buschatzke, wouldn’t comment on the closed-door discussion. But he told CNN Arizona officials would not contemplate entirely cutting their biggest cities and Native American tribes off Colorado River water.

    “I would not, even under a modeling scenario, agree or ask the federal government to model a scenario in which the Central Arizona Project goes to zero,” Buschatzke said. “I will not do that. The implications would be pretty severe if CAP went to zero. Severe for tribes, severe for cities, severe for industries.”

    One source familiar with the meeting disputed that California asked to model cutting other agencies and cities all the way to zero but stipulated that if California was to compromise to other states’ demands, it also wanted to see one of the options follow the river’s current strict priority system “as the default baseline.”

    US Bureau of Reclamation Commissioner Camille Touton last year called on the basin’s seven states – California, Arizona, Nevada, New Mexico, Colorado, Utah and Wyoming – to figure out how to cut 2 to 4 million acre-feet of usage, or as much as 30% of their river water allocation. She vowed the federal government would step in if an agreement couldn’t be reached.

    The question is who bears the brunt of the unprecedented cuts needed to keep Colorado River flowing into America’s largest reservoirs. If the feds take a heavy hand, it could set the stage for a tense legal battle – all while the nation’s largest reservoirs continue to decline.

    Arizona’s perspective is that it thinks California will let them “dry up and blow away,” one source familiar with the meeting told CNN. California’s perspective, the source added, is: “We fought for a century to preserve our super-priority, why should we give it up now?”

    After six other Colorado River basin states released a proposal for water cuts on Monday, California’s water agencies presented a separate and more modest plan to federal officials on Tuesday.

    The state is proposing to conserve 400,000 additional acre-feet of water – around 130 billion gallons – per year from 2023 to 2026, according to the plan. Overall, it is seeking lower basin reductions of around 1 million acre-feet per year, with California contributing 400,000 acre-feet, Arizona contributing 560,000 acre-feet and Nevada contributing 40,000 acre-feet.

    It’s nearly identical to the plan the state proposed in October, and is less than 10% of the state’s water allocation. California receives the largest Colorado River allocation out of all the basin states.

    ‘Genuinely worried’: Why researcher fears Lake Mead could hit dead pool

    California’s proposal would kick in if Lake Mead reached an elevation of 1,000 feet and Lake Powell an elevation of 3,500 feet – precariously close to those reservoirs’ “dead pool” levels, when water is so low it will no longer flow through the dams.

    California’s proposal mentions “increasing cutbacks” if Lake Mead elevations further decline, but does not specify by how much.

    California’s plan “provides a realistic and implementable framework” that builds “on voluntary agreements and past collaborative efforts in order to minimize implementation delays,” JB Hamby, chair of the Colorado River Board for the state and an Imperial Irrigation District board member, said in a statement.

    Adel Hagekhalil, the general manager of the Metropolitan Water District of Southern California, said in a statement the state was committed to cuts, but in “a way that does not harm half of the people who rely on the river – the 19 million people of Southern California.”

    “We must do it in a way that does not devastate our $1.6 trillion economy, an economic engine for the entire United States,” Hagekhalil said. “The proposal presented today by California does all of this by equitably sharing the risk among Basin states without adversely affecting any one agency or state. The plan presented yesterday, which shut out California, does not.”

    California’s proposal is less than the plan proposed on Monday by the six other basin states, which maxes out at 3.1 million acre-feet per year. That six-state model also accounted for the water lost to evaporation and leaky river infrastructure.

    The six-state plan also proposes being activated if Lake Mead levels are around 1,050 feet. Lake Mead is currently around 1,047 feet and had dropped to as low as 1,040 feet last summer.

    Multiple states told CNN that they are going to try to continue to get an agreement everyone can support, while acknowledging talks so far have been difficult.

    “We’re committed to continuing to work collectively as seven basin states,” said Chuck Cullom, executive director of the Upper Colorado River Commission.

    Buschatzke, Arizona’s top water official, called the six-state proposal a “very positive outcome” and said he and others would try to keep conversations going with California.

    “I’m committed to continuing to work with all seven states,” Buschatzke said, adding additional conversations and negotiations would continue “over the next few months.”

    Still, the breakdown in agreement between California and the rest of the Colorado River Basin increases the prospect for federal officials to introduce their own cuts in the coming months. Buschatzke told CNN federal officials have not shared much with the states on what number of cuts they’re targeting.

    “They haven’t shared with us any cumulative ballpark,” he said. “I believe it’s imperative we know the ballpark at least, and eventually the specific number, because it will be less of a gap to close on the necessary reductions.”

    Correction: This story has been updated to correct the figures in California’s proposal for water cuts.

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