Energy Update: Week of April 29th

Friends,

Welcome to Kentucky Derby week!!!  This morning, a coalition of 40 companies and trade groups producing and using sustainable aviation fuels (SAF) rolled out to advocate for “policy incentives that promote increased production,” such as tax credits. Members include airlines like American Airlines and United, aviation manufacturers like Boeing and GE Aerospace, several major airports, and biofuel producers like Gevo and Enviva Biomass.

And speaking of SAF, we are expecting the GREET model decision (FINALLY) from Treasury to define Smart Ag practices and how they will count this week – perhaps as early as tomorrow. 

On the floor of the House, it Is natural resources week, featuring legislation that would restore canceled oil and gas leases in Alaska, remove the gray wolf from federal protection and allow hunters and anglers to continue using lead ammunition and tackle on public lands.

Following its release of major power plant rules, Administrator Michael Regan heads to the House Appropriations Interior/Environment Subcommittee for a budget hearing tomorrow and the Senate Interior/Environment Approps panel on Wednesday afternoon.

On Wednesday morning, Secretary Granholm heads to House Energy’s Grid Subcommittee for a budget hearing, while Secretary Haaland will visit House Resources.  Haaland also heads to Senate Energy on Thursday. Expect some fireworks at each of these.  House Resources will also look at Interior and the influence of environmental activists on the agency’s policy.

The Senate Budget Committee holds a hearing on Wednesday rehashing the old climate denial, disinformation theme that seems to be a favorite of climate activists.  Seems like it is totally in the wheelhouse of the Budget committee during the FY 2025 budget season.

In other events, later today at 3:30 in the CVC South 217, FCHEA holds a forum on hydrogen and commercial aviation. Tomorrow, CSIS hosts our friend Frank Fannon Hosts Fannon for a fireside conversation on strengthening US critical minerals security.  On Thursday, the Federalist Society for Law and Public Policy Studies holds a forum on America's energy future featuring former EPA Head Andy Wheeler, former FERC Chair James Danly and my Bracewell colleague and former deputy EPA administrator Jeffrey Holmstead.

This year’s Kentucky Derby is the 150^th running!!!!  Fierceness is the 5-2 favorite but drew the 17-hole for the Start (a horse has never won from 17). He is the fastest horse in the Race with 110 Beyer Spend Figure.  I love Risen Star and Blue Grass Winner Sierra Leone because he is a closer who nobody is likely to stay with down the stretch, while Louisiana Derby winner Catching Freedom should make a good run. Domestic Product is the Tampa Bay Derby winner and is worth a look.  If you want a sleeper, I love Wood winner Resilience who has great/improving speed figure in the 106 range.  He should bounce at about 20-1 so the payoff could be good.  Look for Japanese horse T O Password to take it out fast.

With Earth Week and last week’s energy action (and WHCA Dinner), please take a listen to my visit with Sirius XM’s Julie Mason on her P.O.T.U.S show on Friday. Have a great week and call with any questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932                                                                                                                      

FRANKLY SPOKEN

“The path outlined by the EPA today is unlawful, unrealistic and unachievable. It undermines electric reliability and poses grave consequences for an already stressed electric grid.”

NRECA CEO Jim Matheson on the EPA Power Plant rules rolled out late last week.

ON THE PODCAST

Bracewell Experts Highlight CRA Deadlines, Impacts – In a special crossover episode between Bracewell PRG’s The Lobby Shop and the Environmental Law Monitor, Bracewell associates Daniel Pope and Taylor Stuart sit down with PRG’s Liam Donovan and Joe Brazauskas to do a deep dive on the Congressional Review Act (CRA), a powerful tool that has the Biden administration scrambling to finalize its regulatory proposals ahead of electoral uncertainty.

FUN OPINIONS

Green Transition Creates Risks – In an opinion column in The Washington Times, Mike McKenna writes our transition away from traditional sources of energy — including coal — means more cash for China and more dependence on China for the United States. This dependence will become increasingly crucial as new data centers come online and bring with them the promise of enhanced computing power, increased internet access and speed, and artificial intelligence. These are likely to be the commanding economic heights of the next century, and it is essential that we have abundant, affordable and reliable energy to realize their promise.

FROG BLOG

Forbes Blog Discusses International Plastics Efforts – In a column in Forbes online, Dipka Bhambhani writes that the UN Plastics Treaty being negotiated in Canada will need to continue to support recycling and the circular plastics economy. She spoke with Dow CEO Jim Fittterling who endorsed a new digital watermarking technology that developed countries, including the United States, could adopt. “When you get a package, there’s a watermark in it that may not be visible to the naked eye, but an optical sorter can pick it up in an advanced recycling facility and separate it out, so you get a higher quality raw material.” Dow is also building the first net-zero hydrogen-powered plastic facility in the world, in Alberta, Canada, which is set to begin operations in 2027.

FUN FACTS

NatGas and Power Sector Emissions: EIA says natural gas is responsible for most (61%) of the decline in U.S. electric power carbon dioxide emissions since 2005, which is also the leading driver in total U.S. greenhouse gas emissions reductions.

IN THE NEWS

Sustainable Aviation Fuel Stakeholders Unite to Form the SAF Coalition – Today, over 40 companies and organizations that hold a stake in the development and deployment of sustainable aviation fuel united to announce the formation of the Sustainable Aviation Fuel (SAF) Coalition. The organization is comprised of airlines and aircraft operators, agricultural enterprises, aircraft and aircraft equipment manufacturers, airports, technology developers, labor unions and biofuel producers. The goal of this new nonprofit, nonpartisan coalition is to rapidly scale investment in the SAF sector and advocate for the incentives and policies necessary to promote U.S. economic competitiveness in the emerging SAF marketplace. While SAF Coalition members have been working together informally for years, this newly formed organization will leverage the collective strength of the entirety of the SAF value chain to accelerate the development and deployment of sustainable aviation fuels in the U.S. Aviation accounts for roughly twelve percent of global transportation emissions and two to three percent of all carbon dioxide emissions. SAF is a lower carbon aviation fuel produced from a variety of feedstocks such as renewable biomass and waste resources that serve as a substitute to traditional jet fuel made from crude oil. SAF has chemical and physical properties similar to traditional jet fuel and does not require modifications to aircraft or infrastructure. SAF can reduce CO2 emissions by up to 80 percent on a lifecycle basis compared to traditional jet fuel. Despite its potential, the SAF market is still in its infancy, and its current production capacity is limited, making it roughly two to four times more costly than traditional jet fuel. The SAF Coalition supports policies that will expand the supply of low-carbon, commercially competitive SAF; enhance U.S. economic competitiveness in the SAF marketplace; develop a robust and competitive market for SAF; and create jobs while increasing U.S. fuel production and innovation. Members include:

• Advanced Biofuels Canada
• Air Line Pilot Association, International
• Airlines for America
• Alaska Airlines
• American Airlines
• American Carbon Alliance
• American Express Global Business Travel
• Atlas Air
• The Boeing Company
• Bracewell LLP
• Cincinnati/Northern Kentucky International Airport
• Darling Ingredients
• Enviva Biomass
• Fulcrum BioEnergy
• GE Aerospace
• Gevo
• Global Business Travel Association
• Green Plains
• Growth Energy
• Hawaiian Airlines
• International Airlines Group
• JetBlue
• LanzaJet
• LanzaTech
• NetJets
• POET
• Port of Portland
• Port of Seattle/Seattle-Tacoma International Airport
• Renewable Fuels Association
• RSM US LLP
• San Francisco International Airport
• Spokane International Airport
• Sumitomo Corporation of Americas
• Summit Agricultural Group
• Topsoe
• Twelve
• United Airlines
• Velocys
• VeriJet
• World Energy
• XCF Global Capital

AGA Blasts DOE Buildings Plan – The AGA criticized DOE’s recent Clean Energy for New Federal Buildings and Major Renovations of Federal Buildings Rule as ineffective and fiscally irresponsible.

DOE’s rule eliminates natural gas heating, hot water and cooking systems from a broad range of new and modified federal buildings in 2030. According to DOE, the rule would increase overall energy consumption and likely greenhouse gas emissions. The federal building energy standards in this final rule are projected to result in an estimated national increased energy use of 29,000,000 MMBtu.

DOE’s rulemaking comes one day after the adoption and release of two major reports by the National Petroleum Council which made clear that abundant, affordable and reliable natural gas will continue to play a crucial role in energy security and an important role in economic security beyond 2050 in all scenarios. AGA supports the goal of lower emissions and is investing every day to continue to decarbonize our systems. The decision to prioritize electrification over emissions reductions runs afoul of the government’s own investments in natural gas system decarbonization, including the announcement of 8 hydrogen hubs and a more than $7 billion investment in funding for clean hydrogen under the Inflation Reduction Act, and could foreclose or eliminate more cost-effective low and zero carbon energy options.

“Our natural gas utilities are committed to lowering emissions while delivering affordable and reliable energy to all of our customers, including the federal government in all 50 states. Unfortunately, this rule will raise costs on taxpayers to operate our federal government without any guarantee of real environmental gain,” said AGA President and CEO Karen Harbert. “According to DOE’s own data, natural gas is the most affordable way to heat buildings by a factor of three and also the most reliable during the most challenging times. That vital reliability is desperately needed to ensure operability in high-stakes moments, protect our national security, and serve important communities across our nation.”

ON THE SCHEDULE THIS WEEK

Hill Forum to Discuss Hydrogen Air Travel – The Fuel Cell & Hydrogen Energy Association holds a forum today at 3:30 p.m. in Capitol Visitors Center South Congressional Meeting Room (CVC 217). As energy production and road transportation rapidly progress toward cleaner technologies, commercial aviation remains stubbornly difficult to decarbonize. Three companies working to overcome that difficulty are Airbus, Joby Aviation, and ZeroAvia, all of which are developing hydrogen-based technologies for safe, clean flight that is cost-competitive with traditional fossil fuels.

Cement Techs on Display at Denver Forum – The cement industry holds its 66^th annual IEEE Industry Applications Society (IEEE-IAS) and the Portland Cement Association (PCA) Conference in Denver, Colorado on Today to Thursday at the Colorado Convention Center. Keynoters include Baseball great Jim Abbott and geologist Rob McCaffery.

Forum Looks at Procurement, Supply Chains – Ceres and the Security and Sustainability Forum co-host a webinar today to address a new era of Federal procurement, managing climate risks and promoting sustainable supply chains. The event will provide a comprehensive overview of the proposed rules, including their scope, compliance requirements, and broader relevance to meeting climate goals, saving taxpayers money, and promoting national security.

WRI Looks at Forest Issues – The World Resource Institute's Forest Governance and Policy Initiative holds its Forest Governance and Policy Conference tomorrow to Thursday. The event will focus on a range of topics including recent legislation in the US on corruption and financial crime associated with forests, innovations in traceability and transparency, in particular related to geolocation, uptake of early warning systems for deforestation by Indigenous People and local communities, an update on species and origin testing for wood and forest risk commodities with a focus on the Asia-Pacific, and a cross-regional comparison of Independent Forest Monitoring approaches.

EFI Hosts Murkowski, Manchin on NatGas – The EFI Foundation hold a forum tomorrow at 8:00 a.m. in the U.S. Capitol Visitor Center, Senate Side, Room 209-08 to release a report looking at the future of natural gas in a low-carbon world.  This report is the culmination of the EFI Foundation’s 18 months of research, analysis and convenings and examines the role of natural gas in addressing the three dimensions of the energy trilemma—energy security, energy equity, and environmental sustainability—and provides recommendations for decisionmakers to clarify the role of natural gas in the global energy mix. In this launch event, the EFI Foundation will present our report's key findings and recommendations. Also, our speakers will discuss the report and recent global and national developments that will shape the future of natural gas. Sen Energy Chair Joe Manchin and former Chair Lisa Murkowski will join former Energy Secretary Ernie Moiz.

Regan Heads to House Approps Subpanel – Following its release of major power plant rules, the House Appropriations Interior/Environment Subcommittee holds a hearing tomorrow at 10:00 a.m. on FY2025 budget for EPA.  Administrator Michael Regan testifies.

House Transportation Looks at Electric Fleets – The House Transportation subpanel on Highways/Transit holds a hearing tomorrow at 10:00 a.m. focusing on a review of fleet electrification efforts.

BPC Looks at Disaster Programs – The Bipartisan Policy Center holds a virtual discussion tomorrow at 10 a.m., on disaster policy priorities and proposals.

House Resources Looks at Activists Influence on Interior – The House Natural Resources Oversight and Investigations Subcommittee holds a hearing tomorrow at 10:15 a.m. on examining the influence of extreme environmental activist groups in the Department of the Interior. SIGMA rep Kim Okafor of Love’s, ATA rep Taki Darakos of PITT OHIO Fleet Services and others testify. 

CSIS Hosts Fannon on Critical Minerals – Tomorrow at 11:00 a.m., CSIS and the CSIS Project on Critical Minerals Security hold a fireside conversation with Frank Fannon on strengthening US critical minerals security. Fannon, the inaugural Assistant Secretary of State, Bureau of Energy Resources, will discuss a stocktake of U.S. critical minerals policies and outcomes, whether the Inflation Reduction Act and Foreign Entity of Concern rules are providing adequate carrots and sticks to achieve its goals and what more could and should the U.S. do. 

CSIS to Look at Business Role in Democracy – The CSIS Defending Democratic Institutions Project holds a landmark public event on the role of business in sustaining democracy tomorrow at 1:00 p.m. The event will feature a fireside chat with distinguished speakers David Rubenstein and Dr. Richard Haass. This will be followed by panel discussions with prominent leaders, including the President of the American Bar Association, Mary Smith, the President-elect of the American Board of Trial Advocates (ABOTA), Jennifer Doan, and the CEO of Democracy Works, Luis Lozada.

NREL Holds Industry Forum – The National Renewable Energy Laboratory (NREL) holds its 29^th Annual Industry Growth Forum Wednesday to Friday in Denver. This premier climate tech and cleantech event is designed for startups, investors, and industry experts. It is a great opportunity to build relationships and showcase innovations — and for promising entrepreneurs to connect with Third Derivative, RMI’s global climate tech accelerator.

Forum Looks at SE Asia Climate Issues – The Henry L. Stimson Center and Third Pole hold a virtual discussion on Wednesday at 9:00 a.m., on climate diplomacy in South Asia. In this event, authors of the series will reflect on their recent contributions to SAV. From examining transboundary approaches to tackling climate migration, water sharing, and disaster management, the panel will discuss key challenges to effective regional cooperation and identify concrete ways forward.

Senate Budget Looks at Oil, Climate Issues – The Senate Budget Committee holds a hearing on Wednesday rehashing the old climate denial, disinformation theme that seems to be a favorite of climate activists.  Seems like it is totally in the wheelhouse of the Budget committee during the FY 2025 budget season.

House Energy Hosts DOE – The House Energy and Commerce Energy, Climate, and Grid Security Sub panel holds a hearing on Wednesday at 10:00 a.m. to discuss the Energy Department budget.  Secretary Granholm testifies.

Haaland Heads to House Resources – The House Natural Resources Committee holds a hearing on Wednesday at 10:00 a.m. with Interior Secretary Deb Haaland examining the President's FY2025 budget request for the Department of the Interior.

BPC Looks at Direct Air Capture – On Wednesday at 10:00 a.m., the Bipartisan Policy Center holds a discussion on carbon dioxide removal. The discussion on the policy opportunities and barriers to CDR and the release of Rhodium Group’s new report, The Landscape of Carbon Dioxide Removal and U.S. Policies to Scale Solutions. Sen. Michael Bennet (D-CO) will provide thoughts on the congressional outlook.

Forum Discusses Press Freedom, Environment – The Freedom of the Press Foundation (FPF) and SEJ holds a webinar on the intersections of press freedom and the environment on Wednesday at 10:00 a.m. This panel discussion will address obstacles U.S. journalists face when reporting urgent climate change and environmental issues for their communities — whether violence or arrest when covering environmental protests or denials of access and legal obstructions when investigating centers of political and corporate power.

USEA Presser Looks at Labs – For the next virtual press briefing on Wednesday at 11:00 a.m., the US Energy Association will host directors of the DOE National Laboratories to discuss what their labs are doing to meet the challenges of the energy sector, particularly electricity.

House Approps host USDA Production, Conservation – The House Appropriations Agriculture, Rural Development, FDA Subcommittee holds a hearing on Wednesday at 1:00 p.m. FY2025 budget request for the US Department of Agriculture's Farm Production and Conservation Mission Area.

Backer Discusses Book with R St – On Wednesday at 1:00 p.m. R Street hosts the American Conservation Coalition’s Benji Backer to celebrate the launch of his compelling new book, The Conservative Environmentalist: Common Sense Solutions for a Sustainable Future. Backer and R Street’s Director of Energy and Environmental Policy, Devin Hartman, will discuss the free-market environmental policy contributions of the past and commonsense solutions for the future. Backer and Hartman will explore opportunities for bipartisan collaboration on topics ranging from climate policy to conservation and speak to the continued importance of reaching key audiences on the political right.

Senate Approps Hosts Regan – The Senate Appropriations Interior/Environment Subcommittee holds a hearing on Wednesday at 2:00 p.m. focused on the proposed budget estimates and justification for FY2025 for the EPA.

SAF Forum to Look at Future Fuels – The Sustainable Aviation Buyers Alliance (SABA) holds a forum on Wednesday at 11:00 a.m. looking at the SAF Market and the results from its multi-year RFP process. In this webinar, a diverse group of participants in the SABA RFP, including corporate customers Novo Nordisk and Watershed, SAF providers World Energy and Twelve, and Alaska Airlines, will expand on these themes from the perspective of the deals they struck and their roles in the SABA RFP.

Forum Looks at Dams, Wildlife Issues – EESI and American Rivers hold a briefing on Wednesday at 3:00 p.m. to learn about the state of dam infrastructure in the US. This briefing will discuss the options dam owners have to manage this infrastructure challenge, including dam removal, which is a common approach to dam safety and river restoration. Dam owners frequently seek help with removing their obsolete and unsafe structures, and dam removals are only completed with dam owner consent. Panelists will discuss the need to pay attention to dams as key infrastructure--including dams that provide carbon-free electricity to 30 million Americans--that has an impact in districts across the country. Bringing together perspectives from federal agencies, local leaders, and the hydropower industry, the briefing will highlight funding, programs, and projects that advance public safety through dam removal as well as river restoration. Speakers include Rep. Ann Kuster, American Rivers CEO Tom Kiernan, NHA CEO Malcolm Woolf, FEMA National Dam Safety Program Director Kayed Lakhia and US FWS Deputy Director Siva Sundaresan, among others.

CSIS Looks at NatGas Supply Chain – The Center for Strategic and International Studies holds a discussion on Wednesday at 3:30 p.m. on reducing emissions in the natural gas supply chain. The event will feature a presentation and discussion on the National Petroleum Council’s new report, Charting the Course – Reducing GHG Emissions from the U.S. Natural Gas Supply Chain. This new report shows the potential to eliminate more than half of the GHG emissions in the U.S. natural gas supply chain. Speakers include DOE’s Ryan Peay, John Dabbar of ConocoPhillips and ClearView’s Kevin Book.

Forum to Host Backer Book Discussion – On Wednesday at 5:30 p.m., the American Conservation Coalition, ClearPath and CRES Forum hold a reception celebrating the launch of The Conservative Environmentalist: Common Sense Solutions for a Sustainable Future by ACC founder and executive chairman Benji Backer.  The vent will be at the National Institute for Civil Discourse.

Forum Looks at American Energy – The Federalist Society for Law and Public Policy Studies holds a forum on Thursday at 10:00 a.m. at the Mayflower on America's energy future.  The event will feature a keynote from former EPA Head Andy Wheeler and a fireside chat with former FERC Chair James Danly.  And my Bracewell colleague and former deputy EPA administrator Jeffrey Holmstead, leads a discussion on regulatory obstacles to grid reliability.

Senate Energy Hosts Haaland – On Thursday at 10:00 a.m., the Senate Energy Committee holds a hearing on the President's Budget Request for the U.S. Department of the Interior for FY2025 featuring Interior Secretary Deb Haaland. 

Forum Looks at Lithium – The Wilson Center's Latin America Program holds a virtual discussion on Thursday at 11:00 a.m., on a new report, The Lithium Triangle: To Be or Not to Be Successful. The Wilson Center’s Latin America Program examines the region’s lithium industry, its role in regional economic development, and its importance to the global energy transition. This flagship report, the second in a series from the Lithium Triangle Initiative, examines China’s increasing presence in Argentina’s lithium industry and its distinctive investment strategies; Chile’s potential for expanding its lithium production as well as the challenges posed by institutional, political, environmental, and social considerations; and the diverse factors that have so far prevented Bolivia from developing its vast lithium resources.

ACORE Looks at FERC Transmission – On Thursday at 1:00 p.m., the American Council on Renewable Energy holds a virtual discussion featuring clean energy advocates reactions to FERC’s Transmission Rulemaking. The rule is expected on May 13^th.  Speaker will include SEIA’s Abby Hopper, ACP’s JC Sandberg and Christina Hayes of Americans for a Clean Energy Grid.

RFF Hosts Goffman on Power Plant Rule – Resources for the Future, holds a virtual fireside chat on Thursday at 3:00 p.m. with EPA Assistant Administrator for Air and Radiation Joseph Goffman, who will discuss the rules’ contents and the Biden-Harris administration’s strategy in coordinating them. Following the fireside chat, a panel of legal and regulatory experts including EEI’s Emily Fisher will unpack the implications of the rules for the electric power sector, for compliance planning by states, and for air quality and the climate.

CSIS Looks at Energy Book – CSIS President and CEO, Dr. John J. Hamre, hosts a book event on Thursday, at 4:00 p.m. for a conversation with MIT and former Administration official John Deutch about his newest book, Fifty Years of Energy Policy, 1973-2023: Lessons for the Future, followed by a book signing and reception. In his book, Dr. Deutch demonstrates how analyzing the consequences of past policy decisions can help anticipate likely outcomes of different policy choices today. He discusses energy developments and policies from the Nixon to the Biden administrations, while noting five distinctive features of the past fifty years that remain relevant to current energy policy assessments.

House Resources Field Hearing Looks at Gray Wolf – The House Natural Resources Water, Wildlife and Fisheries Subcommittee holds a field hearing on Friday at 11:00 a.m. examining the need to delist the Gray Wolf.

THE FUTURE

Milken Global Conference Set –The 27^th annual Milken Institute Global Conference will be held in Los Angeles on May 5^th to 8^th. The events biggest moments with global leaders in health, finance, tech, philanthropy and beyond. This year’s event will unite our catalytic community to tackle these challenges and seize the opportunity to collectively shape our shared future.

CLEANPOWER Set for Minnesota – The American Clean Power Assn holds its annual CLEANPOWER 2024 forum on May 6^th to 9^th at the Minneapolis Convention Center in Minnesota.

Webinar Focuses on Western Transmission – On Thursday May 9^th at 2:00 p.m., RMI holds a webinar exploring the economic opportunity that an expanded transmission system presents for Western states and how state actors can work together to plan this system. 

ACORE Holds NYC Finance Forum – ACORE Finance Forum will be held on June 4-5 in New York City.