Energy Update: Week of April 10th

Friends,

Well, I thought I was going to lead in with that spectacular Masters with Jon Rahm taking the Green Jacket in a strange weather weekend at Augusta or the Quinnipiac Bobcats winning their FIRST Frozen Four NCAA Ice Hockey Championship in Tampa on Saturday scoring ten seconds into OT (That’s right: 10 seconds). BUT, now, I am writing this from the side of the highway where another DMV pothole and my fancy low-profile tires have given me another flat tire… UGH!

Anyway, nothing can stop this update!  I hope everyone had a great Easter/Passover Weekend.  Congress remains out and the Administration is staying on the road selling its agenda this week, even while the President heads to Ireland for a state visit.

A couple of major issues hit the press page though. On Friday, a bunch of Hydrogen Hub proposals were due at DOE and this week we expect more chatter on fuel economy rules that will be fairly controversial, probably Wednesday (more below). BTW, Hydrogen Central has a great primer from the Clean Air Task Force on next steps for Hydrogen Hubs.

For events, Columbia Center for Global Energy Policy (CGEP) kicks off the celebration of its 10^th anniversary, with a special 10^th Anniversary Global Energy Summit with speakers including Energy Sect. Jennifer Granholm, NRDC CEO Manish Bapna and BlackRock Investment Institute chair and former US National Security Advisor Tom Donilon. Also on Wednesday, OurEnergyPolicy holds a forum on critical minerals, domestic mining, supply chains and U.S. policy. The event features a discussion on the challenges posed by the energy transition's powerful need for raw materials.

And don’t forget, G7 holds its Energy Ministerial on Saturday and Sunday in Sapporo, Japan. Recently, the U.S. Chamber and other organizations sent a letter urging the G7 to continue the discussion about the role of natural gas in reducing emissions and improving energy security.

This past weekend was a big weekend for preps for the Kentucky Derby which is now under a month away!  The Blue Grass Stakes (Tapit Trice), Santa Anita Derby (Practical Move) and Wood Memorial (Lord Miles) all went off on Saturday giving us a better picture of the field. I still am looking hard at Practical Move even though he was pushed to the wire by Mandarin Hero, Tapit Trice (that name should sound familiar) and Hit Show (even though he was snaked at the wire by 59-1 Lord Miles).  More on this in the coming weeks.

                                                                                                           

FRANKLY SPOKEN

“Everyone who’s watched this movie knows that the market is fickle. What if there’s a market downturn? What if the battery minerals don’t pan out? Without these firm standards that have a clear trajectory on timing, none of the players can be sure that this will happen.”

Drew Kodjak, executive director of the International Council on Clean Transportation, a research organization to the NY Times about potential new fuel economy rules.

 

ON THE PODCAST

Graff Talks Innovation, Hydrogen – In this Chemical Show podcast episode, Victoria Meyer speaks with Michael Graff, Chairman and CEO of American Air Liquide Holdings and EVP of the Air Liquide Group. Graff shares leadership, learnings, and insights from more than 30 years in the energy, chemicals, and gas industries. Graff discusses the importance of innovation, the role of Hydrogen in sustainability and Net Zero and leveraging partnerships and coalitions for a common goal, among other things.

RFF Talks Permitting – In this week’s episode of RFF’s Resources Radio, host Kristin Hayes talks with Katie McGinty and Jim Connaughton about how to accelerate the permitting process for clean energy projects. McGinty is vice president and chief sustainability and external relations officer at Johnson Controls, and Connaughton is chair of Nautilus Data Technologies and a member of the board of directors at Resources for the Future. McGinty and Connaughton discuss why project delays are a central challenge in the clean energy transition, how clean energy projects can support environmental justice communities, and the types of permitting reforms that can help deploy funding for clean energy that’s available through recent laws such as the Inflation Reduction Act.

 

FUN OPINIONS

Foreign Affairs Essays Tackle Critical Minerals, Energy Insecurity – Two great essays in Foreign Affairs.  First, our friends Morgan Bazilian and Greg Brew of the Colorado School of Mines write in the shift to clean energy, America must rethink supply chains. In the second, Columbia’s Center for Global Energy Policy Head Jason Bordoff and Meghan O’Sullivan explain why today’s energy crisis will lead to a much larger role for the state in the energy sector. This new essay outlines why energy security needs to be redefined for the multi-decade clean energy transition and how the policy toolkit to achieve energy security needs to be modernized to combat those risks.

 

FROG BLOG

RFF Looks at Community Energy Tax Issues – In an RFF blog post, expert Dan Raimi discusses what’s notable about the Biden administration new guidance and which areas in the US qualify as so-called “energy communities.” Raimi adds the guidance is especially clear for areas that are eligible for the tax credit under the criteria for coal communities. But a lot of uncertainty remains for developers, because the final determination of which communities will be eligible under the employment criteria of the law is not yet finalized.

 

FUN FACTS

China and the EV Battery Supply Chain:

 

IN THE NEWS

Hydrogen Hubs Plans Turned in Friday – DOE will begin reviewing dozens of proposals to build the nation’s first “hubs” of low-carbon hydrogen. On Friday, DOE will stop accepting full proposals from hydrogen hub applicants, kicking off a review that will culminate in the first $6 billion to $7 billion of award announcements this fall. Many of the proposals are backed by state governments and industry coalitions that include oil and gas companies and renewable developers. DOE will award proposals later this year for designation as one of the country's clean hydrogen hubs. Funded with $8 billion in the 2021 infrastructure law, the hubs are meant to demonstrate the production, storage, transport and consumption of “clean” hydrogen made with less than half the carbon emissions associated with natural gas-derived production of the fuel. The Energy Department asked for detailed plans and received 79. In December, the department encouraged 33 of those with hub proposals to submit a final application, although ones that were discouraged can still apply. The department hasn’t identified the applicants because of sensitive negotiations over where to put the hubs. The environmental nonprofit Clean Air Task Force has monitored the process and identified 23 finalists on an online map. 

New Fuel Econ Regs on the Way – On Wednesday, EPA is expected to propose ambitious greenhouse gas emission standards for cars that are so stringent, they’re designed to ensure that two-thirds of the new vehicles sold in the United States are all-electric by 2032, up from just 5.8% today. And they hope it could put the nation on track to end sales of new gasoline-powered cars as soon as 2035. Transportation is the largest source of US greenhouse gases. The new rules would pose a significant challenge for automakers. Nearly every major car company has already invested heavily in electric vehicles, but few have committed to the levels envisioned by the Biden administration. And many have faced supply chain problems that have held up production. Even manufacturers who are enthusiastic about electric models are unsure whether consumers will buy enough of them to make up the majority of new car sales within a decade.

API Weighs in NEPA Guidance – API today urged the Biden administration to address the broken permitting process that is halting US energy development. In a comment letter submitted to the White House Council on Environmental Quality (CEQ), API Director of Climate and ESG Policy Jennifer Stewart outlined the harmful provisions of CEQ’s Interim Guidance on Consideration of Greenhouse Gas Emissions and Climate Change under the National Environmental Policy Act and detailed how this guidance could further delay the development of critical energy projects – from oil and natural gas to renewables.

“API shares the Biden administration’s goal of reducing GHG emissions across the economy and specifically from the production, transportation, and use of energy resources. We also share the administration’s goal of permitting reform to reduce American’s energy bills, promote energy security for the U.S. and our allies, and boost our ability to build energy projects. However, we do not believe that the Interim Guidance helps agencies advance these goals in a lawful or effective manner.”

In the comments, API outlined the many concerning provisions of CEQ’s guidance, including the duplication and disregard of other agencies’ NEPA reviews and GHG regulations, which could result in significant delays in agency processing time and compromise the U.S. energy supply and the deployment of lower carbon solutions.

 

ON THE SCHEDULE THIS WEEK

Event Tackles Spent Nuclear Fuel – The American Nuclear Society holds a webinar today at 2:00 p.m. looking at spent Nuclear Fuel.  Alongside the Department of Energy, panelists from ANS, Orano and Oklo will offer perspectives on the many levers and opportunities associated with the spent nuclear fuel management question and how each organization is looking to see the challenge tackled.

Forum Looks at Energy Modeling – The Clean Energy States Alliance holds a forum today at 3:00 p.m. on energy modeling for decarbonization planning.  The Event Focuses on advice and resources for states in a new report “How Energy Modeling Works: The Uses and Limitations of Energy Modeling for Decarbonization Planning.” The report provides advice on energy modeling and introduce resources useful to states embarking on decarbonization planning.

MIT Energy Conference Set – MIT holds its annual energy conference tomorrow and Wednesday in Boston. The event brings experts across the three key fields of technology, finance, and global policy to discuss critical solutions that will shape the future of the energy landscape, particularly during this time of uncertainty, urgency, and hardship. Our friend Laura Parkan of Air Liquide will speak.

Forum Looks at Climate Security – Tomorrow at 9:30 a.m., the Woodrow Wilson Center’s Center for Climate and Security, China Energy Forum and Kissinger Institute on China/US hold a forum on China’s climate security vulnerabilities. The US and China stand out as the two largest emitters of greenhouse gases—but neither country is immune to its impacts. China, home to nearly 20% of the world’s population and 6.5% of the Earth’s land surface, faces a number of climate security challenges. A recent report published by the Center for Climate and Security identified three categories of risk: (1) direct risks to military and critical infrastructure; (2) compounding risks to internal political stability as climate change threatens food and water security; and (3) external risks as competition over shared resources is heightened and China contends with the impacts of climate on its more vulnerable neighbors.

Forum Looks at Critical Minerals – The InterAmerican Dialogue hold a forum tomorrow at 10:00 a.m. on critical minerals in Latin American countries. This event will explore ways in which governments and the private sector can promote sustainable development in mining communities and be held accountable for the negative externalities resulting from the extraction of critical minerals as well as how to build reciprocal relationships with local communities.

ACORE to Looks at Biz Practices – Tomorrow at 12:00 p.m., ACORE and some of PwC’s leading renewable energy experts hold an interactive discussion on relevant accounting, reporting and business updates. Topics include FASB Accounting Standards Update for Investments in Tax Credit Structures Using the Proportional Amortization Method, IRA considerations, including key changes in tax credits and their impact on business structures and the transferable credit marketplace and accounting for the IRA. The evolving ESG landscape and its impact on the renewable energy industry, including the SEC climate proposal, evolving stakeholder expectations, and ESG strategy and reporting considerations.

FERC Holds Cold Weather Standards Review – The Federal Energy Regulatory Commission holds a meeting by teleconference tomorrow at 1:00 p.m. of the North American Electric Reliability Corporation Standard Drafting Team on Extreme Cold Weather Reliability Standards. This has of course been controversial over the past few years.

E&E reporters Look at Oil Issues – E&E News holds an Insight Briefing tomorrow at 1:30 p.m. where reporters Shelby Webb, Benjamin Storrow, Lesley Clark and Jeremy Dillon will discuss the tricky path ahead for oil companies and the world's energy supply.

RFF Forum Looks at Modernizing Reg Review – Resources for the Future (RFF) and OMB tomorrow at 3:30 p.m. for a timely discussion on the new guidelines and what they will mean for US policy and decisionmaking. The event will feature insights from Richard Revesz, Administrator of OMB’s Office of Information and Regulatory Affairs, and from Zachary Liscow, Chief Economist at OMB. RFF President and CEO Richard Newell will lead them in a moderated discission that will also include audience questions and participation from former OIRA Administrator Sally Katzen.

CGEP to Host Granholm – To kick off the celebration of its 10^th anniversary, Columbia Center for Global Energy Policy (CGEP) will host a special 10^th Anniversary Global Energy Summit on Wednesday where they will discuss turbulence in global energy markets, the growing gap between climate ambition and reality, and the tensions between today’s energy needs and tomorrow’s energy transition imperative. Speakers include Energy Sect. Jennifer Granholm, NRDC CEO Manish Bapna and BlackRock Investment Institute chair and former US National Security Advisor Tom Donilon, among others.

Forum to Look at Global Water Challenges – On Wednesday at 9:00 a.m. at the Skoll World Forum in Oxford, Axios will hold an event laying out a global roadmap for solving some of the world’s biggest problems, from global health equity and clean water access to addressing climate change.

Forum Feature WTO Leader – The Washington International Trade Association holds a discussion on Wednesday at 10:00 a.m. with World Trade Organization Director General Ngozi Okonjo-Iweala on climate and trade.

Forum to Look at Critical Minerals – OurEnergyPolicy holds a forum on Wednesday at 12:00 p.m. critical minerals, domestic mining, supply chains and U.S. policy. The event features a discussion on the challenges posed by the energy transition's powerful need for raw materials. Rep. Paul Tonko provides opening remarks and WRI’s Melissa Barbanell, EFI’s Melanie Kenderdine and Danny Kennedy are panelists. 

Energy Economists Tackle Energy Security, Transition – On Thursday, the National Capital Area Chapter of the U.S. Association for Energy Economics holds its 26^th annual conference on solving for energy security and a low-carbon transition. This year’s conference will take stock of the state of the energy transition and markets, asking where we are now and where we are headed, as well as what actions stakeholders – governments, companies, investors, and civil society – will need to take to address energy security and transition priorities. The conference will drill into key technologies and investment opportunities that can help achieve these dual objectives, with the right policy incentives. Among the Speakers are Our friends Richard Meyer of AGA, CSIS’s Joe Majkut and BNEF’s Ethan Zindler.

Forum Looks at Just Energy Transition – The Center for Global Development holds a discussion on Thursday at 9:00 a.m. looking Just Energy Transition Partnerships and the role of multilateral development banks in shaping the energy transition. The event will be on the sidelines of the Spring Meetings of the World Bank and IMF.

Forum Looks at Climate, Education – On Thursday at 9:30 a.m., the Center for Universal Education (CUE) and the Global Partnership for Education (GPE) will co-host an event at the Brookings Institution to help advance discourse on climate change and the education nexus. At the event, GPE will launch the Climate Smart Education Systems Framework, which outlines a concrete action agenda to strengthen the resilience and relevance of education to climate change and environmental degradation. Through channeling diverse voices on the topic—including youth leaders, a minister of education, other policymakers, and civil society organizations—the event seeks to foster a rich and inclusive conversation that not only brings each dimension of the framework to life, but also inspires new ideas and approaches to build climate-smart school systems.

Forum Focuses on Green Industrial Policy – On Thursday at 11:00 a.m., CQ Roll Call and FiscalNote hold a webinar on green industrial policy. The event offers a global perspective on the EU Green Deal and US IRA.

Forum Addresses Clean Energy Transportation Innovations – The Environmental and Energy Study Institute (EESI) holds a briefing on Thursday at 1:00 p.m. on the latest research and innovations in energy efficiency, renewable energy, and sustainable transportation. In particular, the briefing will focus on the Department of Energy Office of Energy Efficiency and Renewable Energy (EERE) programs, from those covering vehicle technologies that leverage clean energy to those supporting grid-interactive efficient buildings. The briefing will highlight key proposed investments in the Biden-Harris Administration’s fiscal year 2024 budget request and partnerships between EERE, national laboratories, and the private sector to improve and deploy clean energy. Federal agency and private sector panelists will discuss how investments in advanced technologies supported by the Department of Energy can drive decarbonization while building a clean energy workforce, advancing environmental justice, and keeping energy affordable.

G7 Energy Ministerial Set – The G7 holds its Energy Ministerial on Saturday and Sunday in Sapporo, Japan. The 2023 Group of 7 (G7) Ministers’ Meeting on Climate, Energy and Environment will take place under the Japanese G7 Presidency, and consider priority issues in the areas of climate, energy, and the environment. Recently, the U.S. Chamber and other organizations sent a letter to Japanese Prime Minister Fumio Kishida following a meeting held with G7 nations on the sidelines of the CERAWeek conference regarding the inclusion of a discussion about the role of natural gas at the upcoming G7 meeting hosted by Japan

 

IN THE FUTURE

Power Conference Set – The 38^th Platts Global Power Markets Conference is set for The Wynn in Las Vegas on April 17-19^th.  The event brings together leaders from utilities, regulators, finance and more to discuss the trends moving the power markets forward. Keynote speaker is Xcel Energy CEO Robert Frenzel to discuss his views on sustainability and how companies are generating clean, affordable, and accessible energy, as well as what lies ahead. Other topics include trends and opportunities around infrastructure, the IRA and its implications, wholesale power markets, global and emerging power market investment, supply chain challenges, impact of global energy market upheaval and much more.

Forum Looks at Canada, Energy Security – The Institute of World Politics holds a forum next Monday April 17^th at 3:30 p.m. on global energy security and the role of Canada. Topics include: (1) Russia’s war, the current global energy crisis and the need for alternative energy sources. Can Canada be a new energy partner for Europe? (2) Canada’s “responsible” energy production strategy; (3) Energy transition and the need for reliable, sustainable and responsible resources.

Senate Enviro Looks at Clean Vehicles – On Tuesday April 18^th at 2:30 p.m., the Senate Environment Committee’s Subcommittee on Clean Air, Climate, and Nuclear Safety holds a hearing to examine cleaner vehicles, focusing on consumers and public health.

Forum Looks at National Security, Climate – The Center for a New American Security holds a forum on Tuesday April 18^th at 5:30 p.m. national security in the era of climate change. The conversation will focus on the national security implications that arise from climate change trends in three different regions, Sub-Saharan Africa, Southeast Asia and Latin America.

Senate Looks at NRC Budget – The Senate Environment Committee holds a hearing to examine the Nuclear Regulatory Commission's proposed fiscal year 2024 budget on Wednesday April 19^th at 10:00 a.m. Commissioners will testify.

Climate Summit Set – The US Climate Action Summit 2023 will be held on Wednesday April 19^th from 11:00 a.m. to 5:30 p.m. The US Climate Action Summit unites key leaders in business, politics and advocacy to drive US climate momentum during Earth Week. Its goal is to create a participant-led platform that drives measurable outcomes on climate policy and business action.

EESI Forum Looks at Nuclear Energy – The Environmental and Energy Study Institute (EESI) holds a briefing on Wednesday April 19^th looking at DOE’s nuclear energy programs. Panelists will discuss DOE’s current approach to nuclear energy, the evolution of deployment in the United States, and the path ahead for DOE’s nuclear energy work. Topics will include what is next for advanced reactors, securing a domestic fuel supply of high-assay low-enriched uranium (uranium enriched to between 5 and 20 percent), engaging with communities, and safely managing spent nuclear fuel and high-level radioactive waste through a consent-based siting approach. Speakers include Sen. Mike Crapo, DOE’s Kathryn Huff and many more.

Webinar Kicks Off National Parks Week – The Electrification Coalition kicks off the celebration of National Parks Week by holding a webinar on Thursday April 20^th at 2:00 p.m. on championing charging on public lands. Speakers at the webinar will include Kitty Adams, founder and executive director of Adopt a Charger, and Andrew Grossmann, director of destination development with the Colorado Office of Economic Development and International Trade.

Study to Look at Hourly, Annual Emissions Track for Hydrogen – E3 and ACORE hold a webinar on Wednesday April 19^th at 2:00 p.m. to present the results of a new study that compares the GHG emissions and associated costs of annual and hourly matching requirement options for 45V. Results will help clarify the pathway to a hydrogen future that best facilitates power sector decarbonization.

BPC Tackles Carbon Credits – On Thursday April 20^th at 11:00 a.m., the Bipartisan Policy Center, Carbon Direct, Inc, and other experts holds a forum to discuss a range of perspectives on what the federal government’s role should be in facilitating carbon credit quality and transparency in carbon markets. The event features a fireside chat with CFTC Chairman Rostin Behnam and will focus on a new, joint report by BPC and Carbon Direct on government intervention scenarios for carbon credit quality.

Tellurian Exec hosted by CSIS – On Thursday April 20^th at 11:15 a.m., the CSIS Energy Security and Climate Change Program will hold a forum with Charif Souki, Executive Chairman of Tellurian, for a discussion on the future of U.S. natural gas. To discuss the potential long-lasting changes to natural gas markets, Souki will discuss the state of the industry today and the future role for U.S. LNG in the global energy system.

Forum Looks at Critical Mineral Challenges – The Energy Innovation Reform Project and the Korea Foundation will hold a seminar on critical minerals and batteries in the U.S.-Korea relationship on Monday April 24^th at Noon. On the eve of South Korean President Yoon Suk Yeol’s visit to the United States—including a state dinner at the White House and an address to a joint session of Congress—EIRP and the Korea Foundation hold a discussion of these complex issues with leading policy experts from Korea and the United States. Speakers will include Hanyang University, Seoul professor Younkyoo Kim, CSIS Expert Jane Nakano and EIRP’s Paul Saunders.

Reed to Talk China – The Center for a New American Security holds a fireside chat with Senator Jack Reed (D-RI), Chairman of the Senate Armed Services Committee on Monday April 24^th at 3:00 p.m. The event will be moderated by Dr. Stacie Pettyjohn, Senior Fellow and Director of the CNAS Defense Program. Senator Reed will outline his priorities for the Department of Defense. Then the conversation will cover a range of issues, including the challenge posed by China, ongoing support to Ukraine, AUKUS, and the health of the defense industrial base.

FP Hosts Climate Summit – On Wednesday April 26^th, Foreign Policy holds its third annual Climate Summit, where they will convene climate-minded leaders and experts for high-profile discussions on maintaining momentum from COP27 and following through on commitments. With a focus on achieving net-zero, addressing climate justice and the logistics of implementation, this event will look at the first steps of making the world’s answer to climate change a reality. The event will also explore how governments and organizations are making progress, identifying, and implementing best practices and navigating the road ahead to COP28.

Forum to Look at Tribal Energy Transitions – The Institute for Policy Integrity holds a forum on Wednesday April 26^th at Noon on the impacts, opportunities and research ethics of tribal Energy transitions. In this webinar, panelists will share preliminary findings from their research and policy work, focusing on both the local economic impacts energy transitions have on Indigenous tribes as well as the opportunities that energy transitions might create for these communities. The discussion will address the technological and policy changes needed to make the most of these shifts. Panelists will also reflect on their research design strategies for ensuring that their processes and results serve and benefit the communities they are engaging.

BioGas American Set for Chicago – The American Biogas Council holds 2023 BioGas Americas in Chicago at the Sheraton Grand Chicago Riverwalk on May 15^th to 18^th. The event is the biggest event in the US for biogas/RNG.

Climate Prep Conference Set – The Climate Change Preparedness Conference 2023 is set for Washington, DC from May 18-20^th. The three-day event unites climate experts, governments official and policymakers, community organizer. youth leaders, environmental professionals and other stakeholders from around the country to focus on adaptive solutions to foster climate resilience. Speakers include DOE’s Aaron Fuller, Tao Wang of the Word Bank, USDA’s Joaquin Altoro and former CEQ Head Nancy Sutley, now of LADWP.