The long economic recovery has brought unemployment to historic lows. But the number of men in the labor force during their prime working age has dropped significantly over the past 50 years.

David Pierce was never someone who sat around watching life go by. He worked as a chef and had a catering business on the side. He sang in his church choir and did community theater, where he met his wife.

Then, in his mid-50s, doctors removed part of Pierce’s foot, a complication of diabetes.

“My health just went, kind of really downhill. It really took a turn for the worse,” says Pierce, sitting at his dining room table in his tidy home in Apalachin, N.Y. “I couldn’t maintain even a part-time schedule.”

A year ago, he went on disability, joining the large army of men who have left the workforce for good.

While the job market has rebounded nicely since the Great Recession, one segment of the population hasn’t shared in the recovery. Men between the ages of 25 and 54 are still less likely to be working than they once were, says Melissa Kearney, an economics professor at the University of Maryland.

In 1968, about 95% of men in their prime working years held jobs. The number has fallen to just 86%, even though today’s job market is ultra-tight.

David Pierce of Apalachin, N.Y., went on disability a year ago, joining the large army of men who have left the workforce for good.

Kearney says the recovery and employment growth in the past five years are very encouraging. But, she says, “I still see a lot of data that suggests we have structural challenges, and we need to be doing more to try and draw more prime-age workers back into the workforce.”

The decline in male workers is concentrated almost entirely among men with high school diplomas or less, or even a bit of college, she says. At one time, men of all educational levels were equally likely to be working; today, a huge gap has opened up, with many more college graduates holding jobs.

Simply put, there’s much less demand for the labor of less-educated men, Kearney says.

“They’re competing now with low-wage workers around the globe, and that’s depressed domestic demand for their skills in the workforce,” she says.

Jonathan DeMarco lost his job at a metal fabricating plant in upstate New York in 2006. He does odd jobs when he finds them, but he hasn’t had full-time work ever since.

Don’t see the graphic above? Click here.

DeMarco still looks for work, but with his dyslexia, he doesn’t read or write well and has trouble persuading employers to hire him, he says.

“It’s just hard out there for people like myself to get a job,” he says.

He refuses to accept any government assistance, and, like many men in his situation, survives largely because his wife works, at a local factory. But her health isn’t good, he says.

“She was out of work … for four or five months. That put us way behind in the bills,” he says.

In rural Schoharie County, where DeMarco lives, the unemployment rate is a very low 3.8%. But a lot of men don’t show up in the government’s numbers because they aren’t looking for work anymore, says Gail Breen, executive director of the local workforce development board.

“There are a lot of hidden people in those numbers that don’t have jobs,” she says. They are “people who have pretty much just given up.”

Some suffer from health problems or drug abuse, or just lack the skills needed for today’s workforce, she says.

In rural areas, where public transportation is rare, simply finding a way to get to work can be a challenge.

Frank Altieri, who lives in the upstate New York town of Owego, served time in prison on an assault charge and hasn’t worked full time since getting out four years ago. At 40, he has come close to finding work sometimes, but without a car his options are limited, he says.

Altieri points out that if he works full time, he and his wife risk losing their disability check and food stamps, so if he takes a job that doesn’t pay well, he won’t come out ahead.

“I am looking for work, but with my SSI they can actually cut me off, under a certain amount,” he says.

At one time, men like Altieri could find work by moving to cities, where they’d make more money. But these days, a high school graduate in New York City or Boston doesn’t make much more than someone in a rural area, and costs in the city are a lot higher, says Kearney, the economics professor.

“The wage premium for cities that everyone used to get, even that’s disappeared for the non-college-educated,” she says.

Don’t see the graphic above? Click here.

Since quitting his job, money has been tight for Pierce. His wife, Lonna, a retired school librarian, went back to work temporarily this year.

The Pierces are selling a rental property because they need the money and because Pierce no longer has the energy for upkeep. He and his wife don’t travel or go out as much as they once did.

“He’s changed a lot,” Lonna Pierce says. “We can’t do what we did together. That’s the thing that makes it harder. And of course it’s wearing on a marriage when you’re not doing things together. And that’s sad. Obviously, that’s why you get married. You want to have a partner.”

Being without work has taken another toll on Pierce: He has trouble sleeping.

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“My career was my identity, who I am,” he says. “And to lose that really affected me and created an added layer of depression. I no longer could identify as the guy that was a wonder with food.

“I could whip up all sorts of meals and stuff, and today, if I do one I’m lucky. Just making lunch or breakfast can zap me for the day. That was a real hardship for me.”

Senators from both sides of the aisle sounded the alarm Wednesday on the dangers posed to small businesses and government entities by ransomware cyberattacks following a classified briefing from a key Department of Homeland Security (DHS) official.

The Senate Cybersecurity Caucus, led by Sens. Mark WarnerMark Robert WarnerHillicon Valley: House passes anti-robocall bill | Senators inch forward on privacy legislation | Trump escalates fight over tech tax | Illinois families sue TikTok | Senators get classified briefing on ransomware Senators sound alarm on dangers of ransomware attacks after briefing Hillicon Valley: Dueling bills set stage for privacy debate | Google co-founders step down from parent company | Advocates rally for self-driving car bill | Elon Musk defamation trial begins | Lawsuit accuses TikTok of sharing data with China MORE (D-Va.) and Cory GardnerCory Scott GardnerHillicon Valley: House passes anti-robocall bill | Senators inch forward on privacy legislation | Trump escalates fight over tech tax | Illinois families sue TikTok | Senators get classified briefing on ransomware Senators urge FERC to protect critical infrastructure from Huawei threats Senators sound alarm on dangers of ransomware attacks after briefing MORE (R-Colo.), hosted the meeting with Christopher Krebs, the director of DHS’s Cybersecurity and Infrastructure Security Agency (CISA), who briefed members on threats posed by ransomware attacks.

Ransomware attacks have become an increasing threat nationwide over the past year, according to experts. The attacks involve an individual or group gaining access to a system, encrypting it and then demanding money before unlocking it for the owner.

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City governments including Baltimore and Atlanta have spent millions recovering their systems after ransomware attacks, while nearly two dozen small town governments in Texas were also the victims of a coordinated ransomware attack. States agencies in Louisiana have also been attacked as well as school districts in several states in separate debilitating attacks.

Following the briefing Wednesday, Warner said in a statement that “the continued prevalence of ransomware should really capture our attention.”

“Ransomware and its destructive cousin wiperware are designed to inflict fear and uncertainty, disrupt vital services, and sow distrust in public institutions,” Warner said.

Wiperware is a type of malware that infects a system and wipes the hard drive clean. It’s not as big as ransomware, but experts have warned that it remains a threat.

“While often viewed as basic digital extortion, ransomware has had materially adverse impacts on markets, social services like education, water, and power, and on healthcare delivery, as we have seen in a number of states and municipalities across the United States,” Warner added.

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Gardner told The Hill on Tuesday prior to the briefing that he thought it was “important that the American people understand what’s at risk, so to have something that it is out in the open that we can get out is needed so the American people can be eyes open when it comes to the challenges that our country faces.”

Sen. Maggie HassanMargaret (Maggie) HassanSenators sound alarm on dangers of ransomware attacks after briefing Biden reveals four women he could pick as his running mate Hillicon Valley: Progressives oppose funding bill over surveillance authority | Senators call for 5G security coordinator | Facebook gets questions over location tracking | Louisiana hit by ransomware attack MORE (D-N.H.), a member of the Cybersecurity Caucus, said in a statement Wednesday that the briefing was “a helpful conversation to aid us in grappling with the complexities of the threats we face and what we can do to address them.”

Hassan has pushed for action to protect small businesses and government entities from attack, sending a letter to the Government Accountability Office in October asking that it look into how the federal government is currently able to support state and local governments that are hit by ransomware attacks.

The Senate also took action as a whole in September when it passed by unanimous consent a bill sponsored by Hassan and Sen. Rob PortmanRobert (Rob) Jones PortmanSenators sound alarm on dangers of ransomware attacks after briefing Senate roundtable showcases importance and needs of women entrepreneurs Impeachment will make some Senate Republicans squirm MORE (R-Ohio) that would increase the ability of the federal government to assist groups hit by ransomware attacks.

Sen. Gary PetersGary Charles PetersSenators sound alarm on dangers of ransomware attacks after briefing GOP set for all-out battle over Michigan Senate seat Wheels begin to turn on self-driving car legislation MORE (D-Mich.), another member of the Cybersecurity Caucus and the top Democrat on the chamber’s Homeland Security and Governmental Affairs Committee, told reporters that while he was not at the briefing on Wednesday, he would support holding a public hearing on ransomware threats.

“It definitely has to be addressed, and our small businesses in particular are being hit and impacted by this, and a large percentage of those who get hit by it often don’t survive it and end up going out of business, so we’ll definitely be focusing on it next year,” Peters said.

Cybersecurity Caucus member Sen. Angus KingAngus KingHillicon Valley: House passes anti-robocall bill | Senators inch forward on privacy legislation | Trump escalates fight over tech tax | Illinois families sue TikTok | Senators get classified briefing on ransomware Senators urge FERC to protect critical infrastructure from Huawei threats Senators sound alarm on dangers of ransomware attacks after briefing MORE (I-Maine) told reporters that he thought the Homeland Security and Governmental Affairs Committee would be “a good place” for the hearing to be held but emphasized that he did not want to tell committee Chairman Ron JohnsonRonald (Ron) Harold JohnsonSenators sound alarm on dangers of ransomware attacks after briefing Push to investigate Bidens sets up potential for Senate turf war Overnight Defense: Trump clashes with Macron at NATO summit | House impeachment report says Trump abused power | Top Dem scolds military leaders on Trump intervention in war crimes cases MORE (R-Wis.) “what hearings he should hold.”

“What we learned was (a) it’s a problem, (b) it’s widespread and increasing, and (c) companies and institutions, governments, state governments, local governments, there are things that they can do to protect themselves, but they have to take active measures to do so,” King said of the briefing.

Welcome to Hillicon Valley, The Hill’s newsletter detailing all you need to know about the tech and cyber news from Capitol Hill to Silicon Valley. If you don’t already, be sure to sign up for our newsletter with this LINK.

Welcome! Follow the cyber team, Maggie Miller (@magmill95), and the tech team, Emily Birnbaum (@birnbaum_e) and Chris Mills Rodrigo (@chrisismills).

 

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USTR TAKES ON FRENCH DIGITAL TAX: The U.S. Trade Representative on Monday said that it has determined that France’s digital services tax discriminates against U.S. companies, and is proposing tariffs of up to 100 percent on $2.4 billion of French products.

“USTR’s decision today sends a clear signal that the United States will take action against digital tax regimes that discriminate or otherwise impose undue burdens on U.S. companies,” U.S. Trade Representative Robert LighthizerRobert (Bob) Emmet LighthizerPelosi casts doubt on USMCA deal in 2019 Pelosi sounds hopeful on new NAFTA deal despite tensions with White House On The Money: Economy adds 164K jobs in July | Trump signs two-year budget deal, but border showdown looms | US, EU strike deal on beef exports MORE said in a news release. 

USTR in July announced an investigation into the French digital services tax, in order to determine whether it’s unreasonable or discriminatory and burdens U.S. commerce. The investigation took place under section 301 of the U.S. Trade Act of 1974, the same section that Trump has used to justify tariffs on Chinese goods.

USTR announced last week that it would be issuing its findings in its investigation Monday, after a 90-day deadline for negotiations between the U.S. and France expired.

The context: French President Emmanuel Macron signed legislation in July to establish a 3-percent tax on large companies’ revenues from digital services. The tax applies retroactively to Jan. 1.

The tax has drawn criticism from major U.S. tech companies — such as Google, Facebook and Amazon — as well as from policymakers on both sides of the aisle, who argue that the law is targeting American businesses. 

USTR says: In a report issued Monday, USTR said that the French tax was intended to discriminate against U.S. tech companies, features of the tax make it particularly burdensome for U.S. businesses, and the tax’s application to a small group of companies conflicts with international tax principles.

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Tech reacts: Silicon Valley largely applauded the USTR’s conclusion on Monday night, deriding the French proposal as an effort to harm the world’s largest tech companies, most of which are based in the U.S.

“Today USTR is defending the internet, which is a great American export,” said Jordan Hass, director of trade policy for the Internet Association, an industry group that represents Amazon, Google, Facebook and other Internet companies. “Discriminatory digital services taxes act as a trade barrier for innovative American companies and small businesses often face the biggest burden from them.”

The U.S. and France are continuing to work together through the Organization of Economic Cooperation and Development (OECD), an intergovernmental economic organization, on international tax rules. The OECD is aiming to come up with a solution to tax challenges of the digital economy by the end of next year.

The industry has largely thrown its support behind the OECD process. “Once again, we respectfully urge the United States, France, and all participating governments to focus on a successful and lasting tax policy resolution at the OECD,” Jennifer McCloskey, vice president of policy at the Information Technology Industry Council, said in a statement.

Read more on the USTR’s findings here.

 

OH SNAP FACEAPP: The FBI has classified FaceApp as a counterintelligence threat due to its ties to Russia, with the FBI emphasizing that it will take action if it assesses the face-editing app is involved in election interference efforts.

In a letter sent to Senate Minority Leader Charles SchumerCharles (Chuck) Ellis SchumerOvernight Health Care — Presented by Johnson & Johnson — Democrats call on Supreme Court to block Louisiana abortion law | Michigan governor seeks to pause Medicaid work requirements | New front in fight over Medicaid block grants House, Senate Democrats call on Supreme Court to block Louisiana abortion law Why a second Trump term and a Democratic Congress could be a nightmare scenario for the GOP MORE (D-N.Y.) on Nov. 25 that was made public on Monday, Jill Tyson, the assistant director of the FBI’s Office of Congressional Affairs, wrote that given that the company that develops FaceApp is based in St. Petersburg, Russia, certain intelligence concerns were raised.

“The FBI considers any mobile application or similar product developed in Russia, such as FaceApp, to be a potential counterintelligence threat, based on the data the product collects, its privacy and terms of use policies, and the legal mechanisms available to the Government of Russia that permit access to data within Russia’s borders,” Tyson wrote.

In classifying FaceApp as a threat, Tyson pointed to the ability of the Russian Federal Security Service to “remotely access all communications and servers on Russian networks without making a request to [internet service providers].”

FaceApp involves the use of consumer data, including the uploading of a photo to manipulate. Tyson wrote that FaceApp uploads these photos to cloud servers in the United States, Singapore, Australia and New Zealand, and that the organization has previously claimed that it deletes photos from its servers within 48 hours of them being uploaded.

Due to concerns around Russian efforts to interfere in U.S. elections in 2016, Tyson emphasized that if FaceApp was found to be interfering with future U.S. elections in any way, the agency would take action.

Read more here.

 

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TWEETING UNDER THE LAW: Twitter on Monday announced that it is revamping its policies around the world to comply with online privacy laws in California and the European Union, a complicated process that will leave some users with more safeguards around their personal information than others. 

For most users around the world, Twitter is tweaking its policies to better comply with the incoming California Consumer Privacy Act (CCPA), a tough set of privacy protections that goes into effect in January 2020. The controversial California law requires tech companies like Twitter to share information about what they know about users and offer users more opportunities to see and delete the data that tech companies have collected about them. 

But Twitter will hold users in the European Union (EU) to a different privacy standard, the Twitter standard. The Twitter International Company will provide services to users in the EU, while Twitter Inc. — a separate entity based in San Francisco — will handle the accounts of users in other countries and the U.S. 

Previously, the Dublin, Ireland-based Twitter International Company provided services to all Twitter users outside of the U.S. But now, in order to ensure that Twitter does not have to comply with European privacy rules all around the world, it will place those users under the U.S.-based Twitter Inc.’s jurisdiction. 

In its policy update on Monday, Twitter said it hopes to “test features and settings” globally that would not be allowed under Europe’s tough privacy rules, the General Data Protection Regulation (GDPR). The company did not specify exactly what its engineers hope to test out. 

Read more here.

 

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DON’T YOU FORGET ABOUT ELECTION SECURITY: House Republicans are criticizing Speaker Nancy PelosiNancy PelosiTop Democrat: ‘Obstruction of justice’ is ‘too clear not to include’ in impeachment probe Powerful House panel to hold Medicare for All hearing next week Trump targets drug protections to save trade deal MORE (D-Calif.) for “sidelining” election security for impeachment.

In a letter to Pelosi, Rep. Rodney DavisRodney Lee DavisHillicon Valley: Trump officials propose retaliatory tariffs over French digital tax | FBI classifies FaceApp as threat | Twitter revamps policies to comply with privacy laws | Zuckerberg defends political ads policy GOP criticizes Pelosi for sidelining election security for impeachment Rising GOP star thrust into spotlight with Trump defense MORE (R-Ill.), the top Republican on the House Administration Committee, and Reps. Mark WalkerBradley (Mark) Mark WalkerDemocrats likely to gain seats under new North Carolina maps On The Money: Trump opens surprise new front in trade war | Trump official proposes tariffs on .4B in French goods | US manufacturing contracts for fourth straight month Hillicon Valley: Trump officials propose retaliatory tariffs over French digital tax | FBI classifies FaceApp as threat | Twitter revamps policies to comply with privacy laws | Zuckerberg defends political ads policy MORE (R-N.C.) and Barry Loudermilk (R-Ga.) accused Democrats of pushing the issue of election security to the corner.

“Only 337 days remain before the 2020 election and the Committee has the important duty of ensuring that states have the resources they need in order to safeguard this upcoming election,” the GOP letter stated. “This duty should not be pushed to the corner as a result of the time constraints and competing priorities imposed by the impeachment proceedings.”

The members criticized Pelosi and other Democratic leaders for directing House Administration Committee Democrats to “focus on partisan election security legislation,” with the Republican members adding that “distractions such as this are not advancing the cause of passing a bipartisan election security bill.”

The attacks by the Republicans come after Democrats have repeatedly criticized the GOP for allowing three House-passed bills on election security to languish in the Senate. All three bills passed along party lines and originated in the House Administration Committee.

Democrats have ripped Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellRepublicans raise concerns over Trump pardoning service members McConnell: Senate could pass partisan rules package for impeachment trial Senate panel to vote on Turkey sanctions next week MORE (R-Ky.) for not allowing votes on the three measures. Senate Republicans argue the bills would infringe on First Amendment rights, and also have cited language in the bills not being completely focused on election security to explain their opposition.

Republicans are now casting Democrats as focused on impeachment rather than legislation that would help the country. In their letter, the GOP members asked Pelosi to lend support to congressional hearings on how social media companies are preventing election interference, election preparations undertaken by the Election Assistance Commission (EAC), the cybersecurity preparedness of election machine vendors and on oversight of the Federal Election Commission (FEC).

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Read more here.

 

FACEBOOK FIGHTS BACK: Facebook CEO Mark ZuckerbergMark Elliot ZuckerbergHillicon Valley: Trump officials propose retaliatory tariffs over French digital tax | FBI classifies FaceApp as threat | Twitter revamps policies to comply with privacy laws | Zuckerberg defends political ads policy Zuckerberg says Trump did not ‘lobby’ him during dinner Zuckerberg on allowing political ads: ‘People should be able to judge for themselves’ MORE is defending the company’s policy against removing political advertising that contains misinformation, telling CBS News that the network’s users “should be able to judge for themselves.”

“It’s really important that people can see for themselves what politicians are saying, so they can make their own judgments,” Zuckerberg told CBS’s Gayle KingGayle KingHillicon Valley: Trump officials propose retaliatory tariffs over French digital tax | FBI classifies FaceApp as threat | Twitter revamps policies to comply with privacy laws | Zuckerberg defends political ads policy Discrimination on the basis of voice Zuckerberg says Trump did not ‘lobby’ him during dinner MORE in a joint interview with his wife, Priscilla Chan. “And, you know, I don’t think that a private company should be censoring politicians or news.”

King pressed the CEO on criticisms the policy has faced, including nearly 200 Facebook employees who wrote a letter arguing that “free speech and paid speech are not the same.”

“Well, this is a clearly a very complex issue, and a lot of people have — have a lot of different opinions,” Zuckerberg responded. “At the end of the day, I just think that in a democracy, people should be able to see for themselves what politicians are saying.”

Pressed by King on whether that still applied in cases when the ads were spreading false claims, Zuckerberg repeated, “I think that people should be able to judge for themselves the character of politicians.”

Read more here.

 

5G WARNING: Secretary of State Mike PompeoMichael (Mike) Richard PompeoHouse leaders: Trump administration asking South Korea to pay more for US troops ‘a needless wedge’ Trump clarifies US support for Iranian protesters after confusion over previous comment What Congress can’t get, the people can: Trump documents are damning and there are more to come MORE on Monday warned against European countries allowing companies with Chinese links from constructing 5G networks across the continent ahead of a global technology conference.

In an op-ed for Politico Europe, Pompeo urged leaders to “put security first” when it comes to the construction of 5G networks.

“5G networks will soon touch every aspect of life, including critical infrastructure,” Pompeo wrote. “Innovative new capabilities will power autonomous vehicles, artificial intelligence, smart grids and other groundbreaking technologies. Thanks to the way 5G networks are built, it’s impossible to separate any one part of the network from another.”

“With so much on the line, it’s urgent that trustworthy companies build these 21st-century information arteries. Specifically, it’s critical that European countries not give control of their critical infrastructure to Chinese tech giants like Huawei, or ZTE,” the secretary continued.

Pompeo’s singling out of Huawei and ZTE come as U.S. officials have accused the two companies of allowing Chinese intelligence services to access devices manufactured by them for commercial use.

Read more here.

 

TAKEN DOWN: Google and YouTube have taken down hundreds of video advertisements for President TrumpDonald John TrumpTop Democrat: ‘Obstruction of justice’ is ‘too clear not to include’ in impeachment probe Former US intel official says Trump would often push back in briefings Schiff says investigators seeking to identify who Giuliani spoke to on unlisted ‘-1’ number MORE in recent months, CBS News’s “60 Minutes” reports.

In a review of the tech giant’s advertising archives, the newsmagazine found that more than 300 video advertisements for the president had been removed, primarily during the summer, for violating policies. 

When pressed during a sit-down interview on whether Trump ads had been removed, YouTube CEO Susan Wojcicki said that there were “ads of President Trump that were not approved to run on Google or YouTube.”

She told longtime “60 Minutes” correspondent Lesley Stahl that the ads are “available in our transparency report.”

Wojcicki was also pressed about a controversial ad that has been run on Facebook by Trump’s reelection campaign.

That ad presents unfounded accusations that former Vice President Joe BidenJoe BidenTop Democrat: ‘Obstruction of justice’ is ‘too clear not to include’ in impeachment probe Yang campaign contacts FBI over death threats in New Hampshire Overnight Defense: Trump clashes with Macron at NATO summit | House impeachment report says Trump abused power | Top Dem scolds military leaders on Trump intervention in war crimes cases MORE offered military aid to Ukraine in exchange for the firing of a prosecutor that was investigating a company tied to his son Hunter. His campaign asked Facebook earlier this year to remove the ad, but the social media powerhouse denied the request. 

Read more here.

 

MORE WOES FOR HUAWEI: The U.S. government is reportedly considering new measures to try to block shipments of products to the Chinese telecommunications firm Huawei.

The Trump administration is considering changes to two rules that would give the U.S. more authority to hamper foreign shipments to the company, which has already been placed on a government blacklist, two people familiar with the matter told Reuters.

The proposed changes would permit the U.S. to regulate the sale of products like cellphone chips that are made abroad with U.S. technology, according to the wire service. 

It is reportedly unclear if the government was close to making a decision on whether the changes would be made or how quickly they would be implemented. Sources have told Reuters that the changes would probably only affect Huawei. 

The Commerce Department added Huawei to a blacklist in May citing national security reasons. Reuters reported that the blacklisting has not succeeded in halting supplies to the firm.

Read more here.

 

SUSPENDED: Twitter has permanently suspended a campaign account belonging to Republican Danielle Stella, who is running to unseat Rep. Ilhan OmarIlhan OmarHillicon Valley: Trump officials propose retaliatory tariffs over French digital tax | FBI classifies FaceApp as threat | Twitter revamps policies to comply with privacy laws | Zuckerberg defends political ads policy Omar challenger banned from Twitter over post saying she ‘should be tried for treason and hanged’ Doctor calls for standardizing mental fitness tests for elected officials MORE (D-Minn.) next year, following a report that her account shared lynching comments about the congresswoman.

A spokesperson for Twitter told The Hill late Wednesday that “the account was permanently suspended for repeated violations of the Twitter Rules.”

The Washington Times was first to report the suspension. In one tweet reported by the newspaper, Stella’s campaign account wrote that Omar “should be tried for #treason and hanged” if it was “proven @IlhanMN passed sensitive info to Iran.”

The tweet was referring to unfounded allegations that have proliferated across right-wing media outlets claiming Omar gave sensitive information to the Iranian government.

Omar has strongly denied the allegations, with a spokesperson for her office telling the Jerusalem Post this month: “Since the day she was elected, Saudi Arabian trolls and mouthpieces have targeted Omar with misinformation and conspiracy theories.”

Read more here.

 

BLACK FRIDAY WALKOUT: Six Amazon distribution centers in Germany saw employees walk out during Black Friday, BBC reports.

Employees at centers in Leipzig, Bad Hersfeld, Koblenz, Rheinberg, Werne and Graben all took part in the walkout and are expected to be on strike all weekend. 

The strike was organized by the union Verdi, which said its members’ work in the distribution centers could not be bought with “knock-down prices.”

Meanwhile in France, climate protesters descended upon the company’s French headquarters in Clichy, a city north of Paris as well as a distribution center in Bretigny-sur-Orge.

The protestors were equipped with banners with slogans such as “Stop Amazon and its world” and “Amazon: for the climate, for employment, stop expanding, stop overproduction,” according to BBC.

Kristen Kish, an Amazon spokesperson, downplayed the situation.

“Today our well-paid, dedicated and highly respected teams across Europe are doing what they do every day – delivering for their customers in an environment that’s fun, engaging and set up to help them succeed,” Kish told The Hill in a statement.

Read more here.

 

TIKTOK WALKS BACK: The video app TikTok reversed its ban on an account belonging to an American teenager who criticized China’s internment of minority Muslims, admitting that its moderation system had overstepped in shutting down her account. 

“There has been significant interest and confusion regarding a user’s two TikTok accounts and her viral video talking about the Uighur community in China,” the company said in a statement Wednesday.

“We would like to apologize to the user for the error on our part this morning. In addition, we are reaching out to the user directly to inform her that we’ve decided to override the device ban in this case. Our moderation approach of banning devices associated with a banned account is designed to protect against the spread of coordinated malicious behavior — and it’s clear that this was not the intent here.” 

The account, belonging to 17-year-old Feroza Aziz, was first blocked after she berated China for the mass internment of the minority Uighur community amid reports that the Muslim group was being funneled into concentration camps.

Aziz posted a video that at first appears to be a makeup tutorial. But several seconds in, Aziz begins discussing the Uighurs, saying, “Use your phone that you’re using right now to search up what’s happening in China, how they’re getting concentration camps, throwing innocent Muslims in there.”

Read more here.

 

THAT SOUNDS SKETCHY: An American citizen has been accused of helping North Korea to evade U.S. sanctions, federal prosecutors in New York announced Friday.

Virgil Griffith has been charged with conspiring to violate the International Emergency Economic Powers Act, which allows the president to regulate foreign transactions due to threats or emergencies, according to a criminal complaint. The charge carries a maximum sentence of 20 years in prison. 

Prosecutors said that Griffith attended and presented at a cryptocurrency conference in North Korea even though he was denied permission to do so by the government because of sanctions. 

Griffith also gave the country information on blockchain and cryptocurrency technologies and took part in discussions about using cryptocurrency to skirt sanctions and launder money, the complaint said.

Read more here.

 

BLESS THE RAINS DOWN IN AFRICA: Twitter CEO Jack Dorsey tweeted Wednesday that he would be living in Africa at some point next year.

“Sad to be leaving the continent…for now,” Dorsey tweeted, adding that “Africa will define the future (especially the bitcoin one!).”

“Not sure where yet, but I’ll be living here for 3-6 months mid 2020,” he continued. “Grateful I was able to experience a small part.”

Dorsey, 43, was in Ethiopia this week to cap off his almost month-long tour across the continent that included stops in Ghana, Nigeria and South Africa, CNN reports.

Read more here.

 

A LIGHTER CLICK: Drowning in laughter 

 

AN OP-ED TO CHEW ON: Russia’s status as a space power will end with the start of NASA’s commercial crew 

 

NOTABLE LINKS FROM AROUND THE WEB:

A Pennsylvania county’s election day nightmare underscores voting machine concerns (The New York Times) 

Campus activists find a target at the intersection of immigration and technology: Palantir (NBC News) 

Tinder lets known sex offenders use the app. It’s not the only one. (ProPublica) 

Facebook works to make moving photos easier amid antitrust scrutiny (The New York Times)

Rep. Rashida TlaibRashida Harbi TlaibOn The Money: Trump claims Hong Kong ‘obliterated’ without his action | Xi says China not afraid to ‘fight back’ | Tlaib offers bill to repeal ‘opportunity zones Tlaib introduces bill to repeal ‘opportunity zones’ Warren adds Ayanna Pressley as campaign co-chair MORE (D-Mich.) on Friday introduced legislation to repeal the “opportunity zone” program created by President TrumpDonald John TrumpApple CEO Tim Cook promises to fight for DACA, user privacy DOJ urges Supreme Court to side with Trump in ongoing legal battle over tax returns Giuliani associate willing to inform Congress of meeting between Nunes and former Ukrainian official: report MORE‘s tax law, as the program has received increased scrutiny from lawmakers.

The opportunity zone portion of the 2017 tax law provides capital gains tax breaks to investors who make investments in designated economically-distressed areas. Democrats have become increasingly concerned about opportunity zones in recent weeks amid news reports that have focused on how wealthy people are benefiting from the program.

“The American people have been scammed by Opportunity Zones,” Tlaib, a prominent freshman progressive lawmaker, said in a news release. “Opportunity Zones were supposed to help uplift low-income communities and those living in poverty, but instead we are seeing them benefit billionaires and their luxury projects.

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“Our communities deserve resources and programs with proven track records to thrive – the current Opportunity Zone law fails to drive real benefits to low-income communities, instead often rewarding President Trump’s donors,” she continued. “We must repeal them to stop yet another form of corporate greed from hurting our communities and tarnishing our democracy.”

Tlaib’s legislation is one of several bills focused on opportunity zones introduced. Other bills don’t repeal the full opportunity zone program but are aim to improve it by increasing guardrails and transparency.

Sen. Ron WydenRonald (Ron) Lee WydenTlaib introduces bill to repeal ‘opportunity zones’ Trump says drug importation plan coming ‘soon’ Congressional authority in a time of Trump executive overreach MORE (D-Ore.) and Rep. James Clyburn (D-S.C.) have introduced bills that would terminate opportunity zones that aren’t low-income and prevent investments in certain types of projects, such as luxury apartment buildings, from being eligible. There are also bipartisan bills to create more reporting requirements about investments in opportunity zones.

Republicans continue to be supportive of opportunity zones, and even many Democrats also back the goals of the program, like increasing affordable housing.

A White House spokesperson said earlier this week that the Treasury Department is still finalizing rules to implement opportunity zones, so “it’s premature to make drastic changes to legislation that so far has created amazing results.” 

Rep. Pramila JayapalPramila JayapalTlaib introduces bill to repeal ‘opportunity zones’ Bicameral group of Democrats introduces bill to protect immigrant laborers Hillicon Valley: Google to limit political ad targeting | Senators scrutinize self-driving car safety | Trump to ‘look at’ Apple tariff exemption | Progressive lawmakers call for surveillance reforms | House panel advances telecom bills MORE (D-Wash.), co-chairwoman of the Congressional Progressive Caucus, is co-sponsoring Tlaib’s bill. The bill has the backing of several progressive groups, including The Partnership for Working Families, Take On Wall Street and Americans for Financial Reform.

The Senate Cybersecurity Caucus will hold a classified briefing Wednesday to address the ongoing spree of ransomware attacks on local governments, school districts and other entities nationwide.

Sens. Mark WarnerMark Robert WarnerHillicon Valley: Dueling bills set stage for privacy debate | Google co-founders step down from parent company | Advocates rally for self-driving car bill | Elon Musk defamation trial begins | Lawsuit accuses TikTok of sharing data with China Senate cyber caucus to hold briefing this week on ransomware attacks Bipartisan senators urge national security adviser to appoint 5G coordinator MORE (D-Va.) and Cory GardnerCory Scott GardnerHillicon Valley: Dueling bills set stage for privacy debate | Google co-founders step down from parent company | Advocates rally for self-driving car bill | Elon Musk defamation trial begins | Lawsuit accuses TikTok of sharing data with China Senate cyber caucus to hold briefing this week on ransomware attacks Senate roundtable showcases importance and needs of women entrepreneurs MORE (R-Colo.), the co-chairs of the caucus, will host the bipartisan event, which will feature a briefing for members from Christopher Krebs, the director of the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA).

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According to a spokesperson for Warner, the briefing will include discussion of the “current threat landscape including actors and vulnerabilities, current trends and resources available to address the threat, and what Senators can do to help protect their states.”

Gardner told The Hill on Tuesday that while this week’s briefing is classified and closed to the public, he hoped there would be more “in the open” on risks from ransomware attacks in the future.

“I think it’s important that the American people understand what’s at risk, so to have something that it is out in the open that we can get out is needed, so the American people can be eyes open when it comes to the challenges that our country faces,” Gardner said.

Ransomware attacks have been a growing concern nationwide this year following repeated attacks in various states. These cyberattacks involve an individual or group gaining access to an organization’s systems, encrypting them, and demanding money to unlock the systems.

Over the past year, the city governments of Atlanta and Baltimore have spent millions to recover their systems instead of paying the ransoms demanded, while almost two dozen small town governments in Texas were hit by a coordinated ransomware attack in August.

In Louisiana, Gov. John Bel Edwards (D) has declared a state-wide emergency twice this year due to ransomware attacks, first after attacks on several school districts in July, and then again in November following attacks on multiple state agencies.

In response to ongoing attacks, the FBI issued a warning in October to U.S. businesses and organizations to guard against ransomware attacks.

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CISA also issued a joint statement along with other national groups in July recommending that state and local government entities step up security in response to ransomware threats, with CISA recommending that groups backup systems daily and prioritize cybersecurity awareness and education.

Twenty women filed a lawsuit in San Francisco Wednesday against ride-share app Lyft, alleging they were raped or sexually assaulted by the company’s drivers.

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The lawsuit follows one that was filed in September, in which 14 women alleged they had either been raped or sexually assaulted by Lyft drivers between 2018 and 2019.

“What these women describe is something no one should ever have to endure,” a Lyft spokesperson told The Hill in a statement. “Everyone deserves the ability to move about the world safely, yet women still face disproportionate risks. We recognize these risks, which is why we are relentless in our work to build safety into every aspect of our work.”

“That means continually investing in new features and policies to protect our riders and drivers,” the spokesperson added.

Lyft said that since the September lawsuit it has partnered with a top anti-sexual assault advocacy group — the Rape, Abuse & Incest National Network — as it seeks to improve safety for those using the ride-sharing app.

“In just the last few months, we’ve launched more than 15 new safety features — including daily continuous criminal background monitoring of all of our drivers, in-app emergency assistance to make reporting easier for riders, and mandatory feedback for rides rated less than four stars to ensure we are constantly tracking any level of problematic behavior by drivers,” the company said.

However, the new suit argues that Lyft’s revamped protocols are not enough.

“Lyft’s newly announced standardized protocol for determining whether to ban drivers from the platform may pose a continued threat to passengers,” plaintiffs said in the lawsuit. “This new standardized protocol for dealing with complaints of sexual assault could, and likely will result in dangerous sexual predators remaining on Lyft’s platform until a more serious incident, like a rape occurs.”

One of plaintiff alleged that after falling asleep in the back of her Lyft, she woke up to find the driver on her “with his tongue in her mouth.”

Another plaintiff claims she was pressured into drinking tequila that was given to her by her driver before she was sexually assaulted.

The suit also argues that Lyft failed in its due diligence to correctly report the alleged incidents to law enforcement.

“Lyft riders who report sexual harassment or sexual assault to Lyft’s Trust & Safety Team are often left feeling no better off than had they not reported at all,” the filing says.

The lawsuit said Lyft “more often than not, does not tell the victim what steps Lyft conducts in an investigation, does not tell the victim if there have been other allegations against the same driver, and does not tell the victim whether the driver has been removed from the platform.”

Welcome to Wednesday’s Overnight Health Care.

Hospitals are taking the Trump administration to court, Virginia plans to suspend Medicaid work requirements, the House Energy and Commerce Committee is holding a “Medicare for All” hearing, FDA’s tobacco chief faced questions in the House, and every state now has reported a vaping-related injury.

We’ll start with Medicaid news

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Virginia moves to suspend Medicaid work requirements

In the latest example of “elections have consequences,” Virginia is moving to drop work requirements from its Medicaid program after Democrats took full control of the state legislature.

Gov. Ralph Northam (D) said in a statement that he has instructed the state’s Medicaid director to “pause” negotiations with the Trump administration about how to implement the requirements that certain “able-bodied” Medicaid recipients need to work and pay premiums.

“Virginians made it clear they want more access to health care, not less,” he said in the statement. “Given the changed make-up of the General Assembly and based on conversations with new leadership, it is unlikely Virginia will move forward with funding a program that could cause tens of thousands of Virginians to lose health care coverage.”

The backstory: Virginia was one of several states that initially rejected Medicaid expansion under ObamaCare, but Democrats nearly flipped the state House in 2017 after running on expansion. So several Republicans were looking for a compromise: work requirements. 

The new reality: In last month’s elections, Democrats took control of the General Assembly for the first time in 26 years, making it unlikely the state would keep moving forward on work requirements. Aside from politics, Northam cited the likelihood of spending money defending the state against the lawsuits that have been filed against other states with work requirements. 

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More on Northam’s announcement here.

 

 

FDA official grilled on vaping policy 

A top Food and Drug Administration (FDA) official was hammered by members of Congress Wednesday for not answering questions about the agency’s plan to curb youth vaping rates. 

Mitch Zeller, director of the Center for Tobacco Products, would not say whether the FDA is still considering a proposal to clear the market of flavored e-cigarette products it says are appealing to kids. 

“There has been no final decision made on this policy. Because there’s ongoing discussions that are taking place I’m not going to be able to get into the substance of what was in that document,” Zeller said about guidance the FDA sent to the White House in October. 

That response wasn’t sufficient for Democratic members of the House Oversight Committee, who have grown frustrated with the administration’s slow pace. 

“I suggest you go back to the FDA and you tell them the American public is up in arms about this youth e-cigarette epidemic,” said Rep. Raja KrishnamoorthiSubramanian (Raja) Raja KrishnamoorthiOvernight Health Care — Presented by Johnson & Johnson — Virginia moves to suspend Medicaid work rules | Powerful House panel sets ‘Medicare for All’ hearing | Hospitals sue over Trump price rule | FDA official grilled on vaping policy FDA official dodges question on future of Trump administration’s vaping flavors ban Oversight Subcommittee to question FDA tobacco director over status of Trump’s vaping ban MORE (D-Ill.), chairman of the Oversight Subcommittee on Economic and Consumer Policy. 

“It’s time to get their act together and put this flavor ban together immediately, without delay, before another child gets hooked to these e-cigarettes.” 

President TrumpDonald John TrumpStates slashed 4,400 environmental agency jobs in past decade: study Biden hammers Trump over video of world leaders mocking him Iran building hidden arsenal of short-range ballistic missiles in Iraq: report MORE and his top health officials said in September the administration would soon issue guidance clearing the market of flavored e-cigarettes. 

The FDA sent that guidance in October to the White House regulatory office, which finished its review last month. But the administration hasn’t given any indication of whether it will move forward with a full flavor ban or pursue a different policy. 

 

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Powerful House panel to hold ‘Medicare for All’ hearing next week

Get ready for a fight over Medicare for All in the Energy and Commerce Committee next week. 

The House Energy and Commerce Health Subcommittee will hold a hearing next Tuesday on the Medicare for All bill introduced by Reps. Pramila JayapalPramila JayapalOvernight Health Care — Presented by Johnson & Johnson — Virginia moves to suspend Medicaid work rules | Powerful House panel sets ‘Medicare for All’ hearing | Hospitals sue over Trump price rule | FDA official grilled on vaping policy Jayapal pushes back on Gaetz’s questioning of impeachment witness donations to Democrats Judiciary Democrat fearful Republicans will treat impeachment hearing like ‘game’ MORE (D-Wash.) and Debbie DingellDeborah (Debbie) Ann DingellHillicon Valley: House passes anti-robocall bill | Senators inch forward on privacy legislation | Trump escalates fight over tech tax | Illinois families sue TikTok | Senators get classified briefing on ransomware Overnight Health Care — Presented by Johnson & Johnson — Virginia moves to suspend Medicaid work rules | Powerful House panel sets ‘Medicare for All’ hearing | Hospitals sue over Trump price rule | FDA official grilled on vaping policy House passes anti-robocall bill MORE (D-Mich.), along with six other bills, including scaled-back “public option” proposals. 

Big picture: This is a step forward for Medicare for All in getting a hearing in a key committee. But that doesn’t mean leadership supports the idea or that it will get a vote in this Congress. 

Speaker Nancy PelosiNancy PelosiTrump’s legal team huddles with Senate Republicans On The Money: Falling impeachment support raises pressure for Dems on trade | Trump escalates fight over tech tax | Biden eyes minimum tax for corporations | Fed’s top regulator under pressure over Dodd-Frank rules Overnight Health Care — Presented by Johnson & Johnson — Virginia moves to suspend Medicaid work rules | Powerful House panel sets ‘Medicare for All’ hearing | Hospitals sue over Trump price rule | FDA official grilled on vaping policy MORE (D-Calif.), while giving her support to airing ideas at a hearing, has been raising increasingly explicit warnings against the policy dominating her party’s presidential race, warning of its cost and that people do not want to lose their private insurance. 

“I’m not a big fan of Medicare for All,” she said last month.  

Read more here. 

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Hospital groups file lawsuit to stop Trump price transparency rule

Hospitals are stepping up their battle against the Trump administration over its transparency rules. 

Hospital groups on Wednesday filed a lawsuit to stop the Trump administration’s price transparency rule that requires hospitals to disclose negotiated rates with insurers.

“Instead of giving patients relevant information about costs, this rule will lead to widespread confusion and even more consolidation in the commercial health insurance industry,” said Rick Pollack, president and CEO of the American Hospital Association. “We stand ready to work with CMS and other stakeholders to advance real solutions for patients.”

Fight brewing: The Trump administration is not backing down and appears eager to take on hospitals. 

“Hospitals should be ashamed that they aren’t willing to provide American patients the cost of a service before they purchase it,” HHS spokeswoman Caitlin Oakley said.

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Earlier on Wednesday, CMS Administrator Seema Verma published an op-ed in the Chicago Tribune, taking hospitals to task for a lack of transparency. 

Read more here.

 

Trump targets drug protections to save trade deal

The Trump administration is reportedly considering easing patent protections for brand-name drugs in order to secure Democratic support to pass the new North American trade deal through Congress.

If approved, the change would be a major shift in Republican priorities and a significant blow to the pharmaceutical industry, which opposes the move.

But the politics around drug pricing have changed, and President Trump is looking for a deal. He has also made lowering drug prices a key priority for his presidency.

The current language in the U.S.-Mexico-Canada Agreement (USMCA) gives branded biologics — drugs that are made from living organisms rather than synthetic chemicals — 10 years of protection from cheaper alternatives.

Congressional Democrats seized on this language and insisted they would not vote for the deal unless it was changed. Now, the administration is reportedly considering scaling back or even eliminating the protections outright to allow cheaper, generic versions of biologic drugs to come to the market quicker.

Changing patent protections, though, is opposed by powerful pharmaceutical industry interests, and it’s not clear if drug protections alone will be enough to get reluctant Democrats to push the trade deal over the finish line.

Read more here.

 

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Alaska reports first vaping-related injury

An Alaska teen has been hospitalized for a vaping-related injury, the state announced Wednesday. Every state in the country has now reported instances of vaping-related injuries.

The state’s Department of Health and Social Services announced on Wednesday that the teen from Southeast Alaska is hospitalized and improving. The patient reported regularly vaping nicotine and THC products, it said. 

The department added that it had investigated nine suspected cases of vaping-related injuries over the past several months but said this is the first that meets the Centers for Disease Control and Prevention (CDC) requirements to be classified as such a case. 

The CDC still hasn’t identified a specific product or ingredient that is making people sick. The only thing in common between all cases is that patients had used e-cigarette products. 

Most of the patients had vaped THC, the psychoactive ingredient in marijuana, before becoming ill. THC was present in most of the samples collected, and many patients had purchased those products off the street.

But it’s not clear if it’s the THC or any number of chemicals and substances that are found in vaping liquids are causing the lung illnesses.

Read more here.

 

What we’re reading

Why health insurance in rural America is suddenly getting cheaper under ObamaCare (Vox.com)

A clinical trial for Huntington’s opens the door to hope for some patients. Only so many can get in (Stat News) 

Candidates are betting big on health. Is that what voters really want? (Kaiser Health News)

 

State by state

Wyoming governor promises Medicaid expansion will get ‘fair hearing’ (Associated Press) 

Minnesota suing Juul for ‘targeting youth’ in e-cig marketing (Minnesota Public Radio)

Bankruptcy judge in New York considers $1.3M bonus for Purdue Pharma CEO (NBC New York) 

 

From The Hill’s opinion page

American health care has a new third rail  

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North Korean leader Kim Jong UnKim Jong UnNorth Korea: US will choose what ‘Christmas gift’ it wants Trump resurrects ‘Rocket Man’ nickname for North Korean leader Five things to watch for at Trump’s NATO meetings MORE rode a white horse up a snow-covered sacred mountain, the second visit of its kind in less than two months, state media reported Wednesday.

According to The Associated Press, the Korean Central News Agency released several photos showing Kim along with other North Korean officials as they rode up Mount Paektu — the highest peak on the Korean Peninsula.

Kim reportedly said that “we should always live and work in the offensive spirit of Paektu.” 

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“The imperialists and class enemies make a more frantic attempt to undermine the ideological, revolutionary and class positions of our party,” he added.

Kim’s trip to the sacred mountain comes as North Korea’s end-of-the-year deadline for the United States to make concessions in a nuclear deal quickly approaches.

Negotiations between Kim and the U.S. have remained gridlocked in recent months, as North Korea is trying to secure relief from sanctions in exchange for steps toward denuclearization.

North Korea’s Foreign Ministry warned earlier this week that it’s entirely up to the U.S. to choose what “Christmas gift” it gets from Pyongyang.

Talks also deteriorated last month after North Korea called the U.S. proposals for negotiations “sickening.”

President TrumpDonald John TrumpTop Democrat: ‘Obstruction of justice’ is ‘too clear not to include’ in impeachment probe Former US intel official says Trump would often push back in briefings Schiff says investigators seeking to identify who Giuliani spoke to on unlisted ‘-1’ number MORE on Tuesday revived the “Rocket Man” nickname he has used for Kim while discussing relations with North Korea at a NATO summit.

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MOVING….TO COURT? A top House Democrat on Wednesday warned the Trump administration that a decision to relocate Bureau of Land Management (BLM) staffers from Washington would decrease diversity and likely open the agency to discrimination lawsuits.

In a letter to Interior Secretary David Bernhardt, Rep. Raúl Grijalva (D-Ariz.) warned that by failing to study how a forced relocation of staff could affect the agency’s diversity, the BLM was opening itself up to a legal challenge.

Grijalva, chairman of the House Natural Resources Committee, argued the oversight was “reckless” and said the charge would already be supported by current agency staffing numbers. Office of Personnel Management data shows that black employees make up less than 3.5 percent of the agency’s workforce and of that number, 41 percent are located in D.C., Grijalva said. 

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With a significant portion of D.C.-based employees expected to reject the job transfer and instead leave the BLM, he argued that diversity at the agency will plummet.

“If there is a disparate impact on any protected class of employees, the agency would be exposed to significant legal liability that could rival the cost of the entire relocation,” Grijalva wrote.

“DOI [Department of the Interior] could be sued by its own employees under Title VII of the Civil Rights Act of 1964,” he continued. “Without an analysis showing the proposed reorganization would not have a disparate impact, or would serve a legitimate, non-discriminatory business need, BLM’s vulnerability to a successful lawsuit would increase dramatically. 

“It would be reckless for DOI to fail to perform such an analysis,” he added.

Furthermore, Grijalva argued that those who do move to the BLM’s new headquarters in Grand Junction, Colo., or elsewhere in the West will be in less diverse communities.

“Many of the positions targeted for relocation will be moved to states and communities where the total Black/African-American population is significantly smaller,” Grijalva wrote.

“Given DOI’s persistent struggle to increase diversity in its workforce, further isolating Black/African-American employees by asking them to choose between uprooting their lives and their families and moving to areas with a spare Black/African American population or terminating their BLM employment is counterproductive and unacceptable,” he continued.

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Read more about the move here.

 

Happy Wednesday! Welcome to Overnight Energy, The Hill’s roundup of the latest energy and environment news. 

Please send tips and comments to Miranda Green, mgreen@thehill.com and Rebecca Beitsch, rbeitsch@thehill.com. Follow us on Twitter: @mirandacgreen, @rebeccabeitsch and @thehill.

CLICK HERE to subscribe to our newsletter.

 

A BIG DAY FOR COST-BENEFIT ANALYSIS: A group of economists warned Wednesday that a forthcoming rule change from the Environmental Protection Agency (EPA) will not only weaken the administration’s response to mercury but could undermine the agency’s ability to regulate a wide variety of pollutants going forward.

The External Environmental Economics Advisory Committee (E-EEAC), comprised of economists from major universities, examined the cost-benefit analysis underlying the Mercury and Air Toxics Standards (MATS) proposal. Under the Trump administration, the results of the analysis shifted from saying the plan would save money due to the overall public health benefits to emphasizing the costs of pollution controls.

The group, which formed after the EPA dissolved its internal Environmental Economics Advisory Committee, says the agency isn’t rolling back the rule itself, but undermining it using a flawed cost-benefit analysis that will open up the rule to a swift legal challenge.

Under the Obama administration, the rule was projected to save between $37 billion and $90 billion dollars. Under the Trump administration, the figure ranged from $4 million to $6 million.

Matthew Kotchen, a member of the group and a professor at Yale, said the EPA’s flawed analysis essentially zeros out “co-benefits,” including the other toxins that would be removed by pollution controls at power plants that would ultimately benefit public health.

“It’s basically the value that the American public receives from this regulation that are not the main targets of the regulation,” he said.

He compared it to buying organic produce. One might choose organic products to be healthy, but those foods may also be tastier and avoid adding pesticides to the environment. The EPA is similarly required to look at the whole picture, he said.

Not doing so undermines the legal basis of the rule, as a regulation that has a greater cost than benefit may not meet the legal standard of being “appropriate and necessary.” 

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“The reason why it’s important is the eventual consequences of this may be obvious as a legal strategy,” Kotchen said. “A court is not likely to uphold a regulation EPA itself does not think there’s a legal basis for.”

The EPA has stated clearly since it decided to review the rule last year that it does not think regulating hazardous air pollutant emissions meets that legal standard.

“After properly evaluating the cost to coal- and oil-fired power plants of complying with the MATS rule (costs that the Obama Administration estimated range from $7.4 to $9.6 billion annually) and the benefits attributable to regulating hazardous air pollutant (HAP) emissions from these power plants (benefits that range from $4 to $6 million annually) — as EPA was directed to do by the U.S. Supreme Court — the agency proposes to determine that it is not ‘appropriate and necessary’ to regulate HAP emissions from power plants,” the agency said.

Read more about the MATS rule here. 

 

SWING AND A MISS: The European Union (EU) said in a report on Wednesday that it will probably miss its target to reduce greenhouse gas emissions by 2030.

The European Environment Agency said that the goal of cutting emissions by 40 percent of 1990 levels by 2030 would likely not be achieved. But it said the EU is on track to see 30 percent reductions within the next decade.

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Some activists have pushed for a 55 percent reduction by 2030 in an effort to get to net-zero emissions by 2050.

“Harmful emissions from transport and agriculture have also risen, and production and consumption of hazardous chemicals have remained stable,” the report said. “The outlook to 2030 suggests that the current rate of progress will not be sufficient to meet 2030 and 2050 climate and energy targets.”

The report also said European countries are at a “tipping point” to protect the environment and combat climate change. The agency said that “there is still a chance to meet the longer-term goals and objectives for 2030 and 2050” if nations put more effort on resolving controversial issues like fossil fuel subsidies, The Associated Press noted. 

This report was released as 200 countries meet in Madrid over the next two weeks for United Nations climate discussions. The European Green Deal, a long-term plan to combat climate change, is scheduled to be presented by the EU’s new executive commission next week at the conference, according to the news service. 

Read more here. 

 

ON TAP TOMORROW: 

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All the action is in the House, where the Committee on Science, Space and Technology is asking for better advice, with a hearing titled “Experts Needed: Options for Improved Science and Technology Advice for Congress.”

The House Energy and Commerce will hold a hearing on deep decarbonization.

And the House Natural Resources will be marking up a bunch of bills.   

 

OUTSIDE THE BELTWAY: 

Songbirds are shrinking in size, study finds, The Wall Street Journal reports.

New Hampshire governor signs order to prepare for offshore wind development, the Associated Press reports.

Oil rises nearly 4 percent ahead of OPEC output talks, surprise drop in US inventories, Reuters reports.

 

ICYMI:

Stories from Wednesday…

House Dem: Moving BLM out of DC could result in lawsuits, decrease in diversity

Economists warn EPA analysis will undermine agency’s air protections

EU says it will probably miss greenhouse gas reduction target

Trump: I think about climate change ‘all the time’

The highest-ranked U.S. citizen on the FBI’s Most Wanted List has been charged with additional crimes, The Associated Press reported Monday.

Jehad Serwan Mostafa, a former San Diego resident, has been charged with crimes connected to Somalia’s al-Shabaab extremist group.

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Mostafa, 37, was charged with similar crimes in 2009. According to a FBI poster, there is a $5 million reward for Mostafa’s capture, the AP reports.

The FBI believes that Mostafa is now the leader of the group’s “explosives department,” according to the AP.

“Today, Mostafa is believed to be the highest-ranking United States citizen fighting overseas for a terrorist organization,” Scott Brunner, the head of the FBI office in San Diego, said Monday.

Mostafa was born in Wisconsin, but was raised in San Diego and is a 2005 graduate of the University of California, San Diego. He reportedly joined al-Shabaab in 2006.

The Somalia-based group took responsibility for two Sept. 30 attacks on U.S. and European military targets in Somalia, including an attack on Belidogle military airstrip where U.S. and Somali forces are reportedly based.

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