Energy Update: Week of April 6

Energy Update - April 06, 2020

Friends,

Hope you are staying well and healthy.  This would have been Final Four weekend and tonight would have been the NCAA Hoops Final.  At least I am not sweating my NCAA pool… 

With the COVID challenges, it certainly is a strange time as we all work from home.  Our team continues to focus on Friday’s implementation of the Paycheck Protection Program (PPP), the small business lending program established by the CARES Act. The PPP has already made its first loans and our briefing below includes links to the relevant guidance for the program. Like many, we also continue to look at a variety of Phase Four proposals and what they may entail.  Look for updates at on our Bracewell PRG website here.

In some GOOD COVID news, Valero announced Friday that its ethanol plant in Hartley, Iowa began production of hand sanitizer in response to the urgent call for it needed in the fight against COVID-19. This was on top of another recent announcement that it has committed $1.8 million to support organizations on the front lines helping people most in need, as well as shipping out 10,000 fuel cards to the communities and organizations that rely on transportation as a vital part of their service.

Late last week was crazy with the White House meeting with oil execs.  While it is still unclear where that is heading, there will remain a significant focus on diplomacy.  The emergency OPEC+ meeting set today was moved to Thursday, so that may lend further clarity.  And there are reports that G20 energy ministers will also meet later this week. On Wednesday, the Senate Environment Committee closes its initial comment period for responding to HFC legislation. Senator Barrasso recently provide his comments and AHRI will submit tomorrow. 

As for events, today the Atlantic Council Global Energy Center holds a virtual public event at 4:00 p.m. on the implications of the coronavirus pandemic for the future of clean energy and climate action featuring our friends Rich Powell of ClearPath and moderator Julia Pyper.  Tomorrow, the National Press Club hosts American Medical Association President Patrice Harris for a live virtual national address at 11:00 a.m. about the importance of relying on science and data to protect public health, particularly during the COVID-19 pandemic.  WRI holds a webinar on Wednesday at 9:00 a.m. looking at country commitments related to Paris focusing on HFCs. Finally, on Thursday at 2:30 p.m. the American Security Project will host a Zoom forum on the current oil-price crisis amidst Coronavirus. 

That’s all for today, call with questions, stay safe & healthy and remember to review our COVID-19 updates. 

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

 

FRANKLY SPOKEN

“We are ready and willing to do what we can in communities surrounding our plants to help ease the nation’s critical shortage of hand sanitizer. I am proud of our employees for their innovation and efforts to make this possible.”

Valero CEO Joe Gorder announcing that its Iowa ethanol Facility is now producing hand sanitizer.

ON THE PODCAST

Powell Discusses Clean Energy With NatReview Podcast – The National Review podcast, "The Editors," with Rich Lowery hosted ClearPath’s Rich Powell recently to discuss clean energy. In the 45 minute episode "Cleaner, Safer, Cheaper Energy," Rich lays out the clean energy vision and answers specific questions on why Republicans are embracing clean energy innovation policies. They also discuss what new technology means on the global scale.

FUN OPINIONS

WSJ: Bad Ideas Won’t Help Oil – The Wall Street Journal Editorial Board writes in an editorial last week that even while there is pain in the oil patch, it is still no reason to push bad ideas.  The board starts saying some ideas have merit but many could produce unintended adverse side effects. Anti-dumping duties on foreign oil would raise gasoline prices without benefitting shale producers. The U.S. imports heavy crude because many refineries can’t process lighter shale that is often exported to countries like Canada and India that can. Tariffs could also boomerang if foreign producers retaliate by further increasing production.  They also hit production quotas saying it is an especially bad idea.  WSJ urged more aggressive diplomacy and letting producers borrow against good collateral from the Federal Reserve’s new liquidity vehicles that are open to all comers.

FROG BLOG

NatGas Execs Say Utilities Are Delivering For Households During COVID Crisis – In an AGA President Karen Harbert and Dominion COO Diane Leopold (and current AGA Chair) have a piece in the Washington Examiner today that says In these challenging times, our basic support systems will be tested, “but you can be assured that your local natural gas utilities are rising to the challenge.  Reliable and resilient service is essential for hospitals, doctors’ offices and senior centers. These critical facilities use natural gas for cooking and heat and other live-saving services like sterilization. Many of them have efficient gas-powered generators so that, in the event of an unexpected power outage, doctors and nurses can continue providing care to the most vulnerable Americans.  They add they with stay at home orders covering a majority of the country means Americans are using natural gas to cook their meals, warm their homes and heat their water for longer hours of the day. The nation’s natural gas delivery network is built to handle this additional load and residents will continue receiving the same safe, reliable service.

Covid Update

Here is a short and focused report on the Paycheck Protection Program (PPP), the small business lending program established by the CARES Act. The PPP made its first loans Friday, and our briefing includes links to the relevant guidance for the program.

While our update today does not discuss the variety of Phase Four proposals, it is important to take note of House Speaker Nancy Pelosi’s (D-CA) recent comments. Backing off from her previous broad Phase Four proposals, today she argued, during two television appearances, that Congress’s next COVID-19 legislative effort should be a focused expansion of the CARES Act. Specifically, she said, “let’s do the same bill we just did, make some changes to make it current,” and “while I'm very much in favor of doing some things we need to do to meet the needs — clean water, more broadband, the rest of that — that may have to be for a bill beyond that right now.”

Also, PRG continues to track how Federal agencies are managing their operations and oversight obligations in the face of widespread COVID-19 responses, including managing enforcement and compliance obligations. These updates are available on our website.    

Paycheck Protection Program (PPP) Guidance and Third Party Materials

Treasury Department/Small Business Administration:

Congress:

Third Party Materials:

 

IN THE NEWS

White House Oil Meeting – The White House held its meeting Friday with oil execs. Most of the meeting focused on increase diplomacy and pressure on Saudi Arabia and Russia.  The President continued to address the issues over the weekend. It now appears that the OPEC+ meeting will be delayed until later this week, perhaps Thursday.  And yesterday, it was reported by Bloomberg that G20 Energy Ministers would meet later in the week as well.

API Response from WH Meeting – API head Mike Sommers, who was in the meeting, said the industry thanked the President for his support for the men and women of oil/gas industry working to ensure Americans have the energy they need to power their homes, TVs, and phones and underscored our commitment to helping the communities where we operate and all Americans on the front lines of this crisis. SOMMERS: “Our focus – as an industry of problem solvers – is on meeting America’s and the world’s energy needs, and we know they will only increase as our nation gets through this unprecedented time and emerges stronger.  We are encouraged by the President’s strong diplomacy with Saudi Arabia and Russia, and we are optimistic further progress will be made in the days ahead. No one wins in a price war, and the Saudis and the Russians aren’t benefiting from their decisions. We also urged the administration to avoid U.S. policies that could do more harm than good for American producers.  Although further challenges remain, the current energy market disruptions are driven by historic drops in demand, and as with other industries, the best way for ours to recover is to reinforce federal efforts to defeat this virus and enable demand stabilization."

More on HFC Responses – Several more parties filed comments in the Senate Environment HFC public hearing process.  In the latest, Chairman John Barrasso laid out multiple issues with legislation including the lack of state preemption language. Unfortunately, it is because there is no federal direction now that many states are already acting to reduce the use of HFCs.  Federal legislation would prevent that.  Barrasso also complained that small users might be hurt if old refrigerants are banned but industry counters that those fears are misplaced as HFCs will not be banned but phased down and small users will have plenty of access.   Several others have also weighed in. Our friend Lew Steinberg of Midwest Refrigerants said a federal framework for guiding a transition out of HFCs and into next generation refrigerant technologies – many of which are made and manufactured here in the US – is essential. “The global market for air conditioning and refrigeration products and equipment is growing rapidly in size and in competitiveness. The AIM Act helps our industry maintain its technology leadership, which in turn helps American manufacturers expand their share of the global market.”  And Danfoss CEO John Scheff added the legislation is widely regarded by the business community as “an example of common-sense regulation and as an engine of job creation and new investment in the U.S. economy.”  Carrier President Justin Keppy says a national phasedown of HFC refrigerants “ensures a predictable regulatory path and provides certainty to refrigerant producers, manufacturers and, most importantly, consumers on new residential and light commercial products underpinning the HVACR market. In specific states, such as Indiana and Tennessee where Carrier designs and manufacturer’s residential and light commercial products, enactment of the AIM Act will result in new products and investments to manufacture high-performing, environmentally sustainable products.”

EPA Allowing Wyoming to Permit More CCS Projects – Last week, EPA proposed granting Wyoming “primacy” to issue permits for carbon dioxide injection wells for dedicated storage projects under EPA’s Underground Injection Control (UIC) Class VI well programs. The expanded 45Q tax credit has stimulated new commercial interest in dedicated carbon sequestration, an alternative process to enhanced oil recovery. The Wyoming delegation including Sens. John Barrasso, Mike Enzi and U.S. Rep. Liz Cheney were quick to praise this move.  There is also a simultaneous effort, led by U.S. Reps. Marc Veasey (D-TX) and David McKinley (R-WV), to have House appropriators focus on an increase in funding for the EPA’s UIC program, specifically to bolster resources to support the Class VI Well program. Other members supporting these efforts are Scott Peters (D-CA), Vincente Gonzalez (D-TX), Randy Weber (R-TX), Kelly Armstrong (R-ND) and Conor Lamb (D-PA).

Report Pushes Geothermal Energy – ClearPath and the Information Technology & Innovation Foundation partnered on a report recently Harnessing Heat: How the Federal Government Can Advance Geothermal Energy.  There is a virtually limitless supply of energy right beneath us: geothermal heat. The Earth’s core produces heat that radiates out to the subsurface. This heat, which can be harnessed for a variety of uses including electricity generation, heating and cooling of buildings, and other industrial and hybrid applications. Geothermal energy is clean, safe, and renewable and can provide multiple economic benefits. Because geothermal electricity is reliable, always-on energy, it is an excellent match for a grid replete with intermittent renewables like wind and solar energy.  Geothermal technologies have been employed for over one hundred years. But while wind and solar energy have rapidly grown over the past few decades, geothermal has struggled to scale up beyond niche applications. Geothermal energy’s relatively slow growth can be attributed to a combination of unmet technical challenges and policy barriers, and an inability to fully leverage state and federal renewable energy policies that have boosted wind and solar energy’s growth.

 

ON THE SCHEDULE THIS WEEK

MOST EVENTS SCHEDULED HAVE POSTPONED OR ARE NOW ONLINE WEBINARS

Webinar to Address Demand Flexibility for Electricity – Today at 2:00 p.m. National Association of State Energy Officials and National Association of Regulatory Utility Commissioners holds webinar on valuing demand flexibility for electric utility systems.

ClearPath Expert Featured at Webinar on Climate, COVID – The Atlantic Council Global Energy Center holds a virtual public event today at 4:00 p.m. on the implications of the coronavirus pandemic for the future of clean energy and climate action, with a particular focus on sustainable finance, clean energy deployment, and future government stimulus efforts.  As the coronavirus pandemic looms large across the world, economies face major challenges as billions of people remain in government-imposed quarantine. Economic downturn, cheap oil and gas prices, and global supply chain disruptions will likely have major consequences for clean energy development and climate action in the wake of a prolonged global shutdown.  Much remains unknown, and the future of clean energy development and global climate progress hangs in the balance. Tune in as a lineup of expert panelists discusses this critical issue and prognosticates on the future.  Speakers include ClearPath’s Rich Rowell, Tuft’s Rachel Kyte, and BNEF’s Ethan Zindler, moderated by our friend Julia Pyper.

USEA Hosts IRENA Report – The US Energy Assn and US AID will host a webinar tomorrow at 8:00 a.m. to discuss the latest International Renewable Energy Agency (IRENA) Report for flexible power systems.  IRENA’s Elena Ocenic and Francisco Boshell will discuss the report that discusses the need for synergies between different innovations to create actual flexibility solutions for power systems and showing how innovative services can address uncertainty of variable renewable energy sources.

Press Club Hosts AMA President to Discuss COVID – The National Press Club hosts American Medical Association President Patrice Harris for a live virtual national address tomorrow at 11:00 a.m. about the importance of relying on science and data to protect public health, particularly during the COVID-19 pandemic. The speech, “COVID-19: The Importance of Science in an Era of Distrust and Disinformation, will be delivered via livestream as part of the NPC’s Virtual Newsmaker series. It will center on the need for evidence-based solutions and policies to build societal trust and a common understanding.

CA Water Regulators Look at Microplastics – The California State Water Resources Control Board meet virtually tomorrow at 12:30 p.m. to discuss Covid-19 issues and defining microplastics in water.

Webinar to Look at Climate Policy Goals – Tomorrow at 1:00 p.m., the American Public Health Assn and environmental advocates will hold a webinar on the US call to action on climate, health and equity.  The event features representatives from the American Lung Association, U.S. Climate & Health Alliance, and Medical Society Consortium on Climate & Health and will focus on 10 priority actions to protect and promote health and advance the well-being of all people in the era of climate change.

WRI to Look at Country Commitments – The World Resources Institute holds a webinar on Wednesday at 9:00 a.m. looking at country commitments related to Paris.  The webinar will address options for countries to incorporate targets, policies and actions their updated NDCs.  It will also highlight the gains for focusing on HFCs.

ELI Webinar Looks at Methane – The Environmental Law Institute holds a webinar Wednesday at Noon on cutting edge practices to monitor and mitigate leaking methane.  Speakers will include our friends Theresa Pugh and EDF’s Ben Ratner.

Forum Looks at Renewable in Post-COVID World – On Wednesday at 12:45 p.m., the Atlantic Council Global Energy Center holds a webinar chat with Francesco La Camera, Director-General of the International Renewable Energy Agency (IRENA), as he discusses the global renewable energy outlook for the post-pandemic future and the role of international institutions in shaping a new energy reality.

CEC Looks at Power Plants, COVID – The California Energy Commission meets virtually on Wednesday at 1:00 p.m. to discuss Covid-19 and power plant licensing as well as other topics.

Brownell, Jenkins Lead Power Markets Webinar – Power Markets Today is hosting a webinar on Wednesday at 2:00 p.m. focused on how power markets are evolving in the coming years.  The transformation of the industry is a key part of this, and many are arguing that wholesale markets could help with that transition more than they have already.  Speakers include our friend/expert Jesse Jenkins of Princeton, former FERC Commissioner Nora Mead Brownell and others.

NRC to Look at Vogtle – On Thursday at 9:00 a.m., the Nuclear Regulatory Commission holds teleconference on issues associated with safety review of licensing actions for Southern Nuclear Co.'s Vogtle Electric Generating Plant, Units 3 and 4.

DOE to File Input to At Senate Armed Services – The Senate Armed Services Committee holds “paper hearing” on Energy Department budget on Thursday at 9:30 a.m. The format involves publicly posting testimony of witnesses as well as chairman and ranking member opening statements on the scheduled date and time. The committee also will collect questions from members.  DOE Secretary Dan Brouillette will be among those testifying.

WRI to Look at Infrastructure – On Thursday at 11:00 a.m., the World Resources Institute holds webinar on infrastructure. Speakers include Richard Kauffman, chairman of the New York State Energy Research and Development Authority and former DOE energy efficiency official Cathy Zoi.

Webinar to Look at CA Policy, CCS – The Global CCS Institute holds a web-based discussion on Thursday at Noon with California-based experts on the latest news and developments on climate and CCS in California. With the creation of the LCFS CCS Protocol in 2018, California aims to spur innovation and tackle emissions from the transportation sector through CCS. Already, the policy has bolstered two CCS project announcements.

Zoom Discussion to Look at Oil with Dennis Blair – The American Security Project will host a Zoom forum with Admiral Dennis Blair (Ret.) for a virtual conversation on the current oil-price crisis amidst Coronavirus.  Blair is former Director of National Intelligence and a member of SAFE’s Energy Security Leadership Council.

Groups to Look at Water Challenges – The World Resources Institute, Pacific Institute, and U.N. Global Compact CEO Water Mandate hold a webinar on Thursday, 2:30 p.m. to discuss working with businesses to develop a database on public water management in the U.S. and Mexico.

Storage Forum, Expo Set – RESCHEDULED TO  AUGUST 26-28 – The U.S. Energy Storage Association (ESA) will host its Annual Conference & Expo, held this year in Pittsburgh, Pennsylvania.  The forum will look closely at energy storage to facilitate higher renewable energy, electric transportation, cost savings, or community resilience reasons. 

 

IN THE FUTURE

Event to Look at Climate, COVID – The New America Foundation will hold an on-line seminar next Tuesday April 14th at 4:00 p.m. to discuss our long-term thinking about climate change in the wake of coronavirus.  Boston Globe Editorial Page Editor Bina Venkataraman, a former White House Senior Advisor for Climate Change Innovation, and Slate News Director Susan Mathews.

Forum to Look at Clean Energy, COVID – JHU’s Energy Resources Environment (ERE) and Initiative for Sustainable Energy Policy (ISEP) programs will host an online forum on Wednesday April 15th at 10:00 a.m. featuring Jonas Nahm.  This webinar reviews past attempts to revive domestic economies through green industrial policy strategies and examines their prospects in the context of Covid-19.

Webinar to Look at CCS Storage – The Global CCS Institute holds a web-based CCS Talk on Thursday April 16th at 7:30 a.m. EST focusing on CO2 storage facts.  The groups’ Storage and Legal and Regulatory experts will explain how CO2 storage works, seek to address these myths and misconceptions and demonstrate why CO2 storage is an essential climate change mitigation technology. 

WRI Forum to Look at Ag – The World Resources Institute holds an online event on Thursday April 16th to look at the goals of the Paris Agreement and transformative changes in the agriculture sector. In this webinar, experts from the Climate and Clean Air Coalition, FAO and Oxfam will share their latest research on supporting low-carbon transformation in the agriculture sector through enhancing 2020 NDCs. Additionally, government representatives from Uganda and Vietnam will speak to the need for more ambitious, explicit, and directed actions to foster productive farming practices that also reduce greenhouse gas emissions and are climate-resilient.

ELI Forum to Look at User Fees for Carbon – The Environmental Law Institute holds an online forum on Thursday April 16th at Noon looking at EPA’s authority to impose a user fee on carbon emissions. Some legal scholars suggest EPA could impose a user fee on carbon emissions, while opponents claim only Congress may establish a price on carbon. Both point to a 1990 memorandum issued by EPA’s Office of General Counsel (OGC) that notes the difficulty regulating the use of fees as agencies may not use outside money to supplement appropriations. The panel will discuss legal and practical challenges of such a move.

Forum to Look at Alaska Coastal Resilience – The Environmental and Energy Study Institute holds a briefing on April 21st at 2:00 p.m. on scientific developments and policy initiatives that are helping protect Alaskan ecosystems and communities from erosion, sea level rise, and other coastal hazards. The panelists will describe the collaborative process between federal, state, local, and tribal stakeholders in collecting, sharing, and acting on scientific data to inform policy decisions around adaptation and help communities define and achieve their resilience goals. These projects can serve as a model for other regions experiencing similar issues in high-latitude or coastal areas.

Offshore Wind Conference Set – The Business Network for Offshore Wind, the leading non-profit advocate for U.S. offshore wind at the state, federal and global levels, will host its 7th annual International Partnership Forum (IPF) on April 21-24th NOW ONLINE.  They will reschedule the in-person meeting in Providence, Rhode Island for August 18-21. The annual IPF conference is the premier event for the offshore wind supply chain, which is now projected to be a $70 billion revenue opportunity through 2030.

USEA Holds Annual Meeting, Forum – The US Energy Assn holds its annual meeting and Public Policy Forum on Tuesday April 28th in the Ronald Reagan Trade Center.  The event brings together USEA members and energy stakeholders, including Administration officials, thought leaders, lawmakers, diplomats and journalists to discuss the latest energy policy developments, share industry updates, and celebrate the achievements of the United States Energy Award and United States Energy Volunteer Award.

Webinar to Look at CCS Market Scale-up – The Global CCS Institute holds a web-based CCS Talk on Tuesday April 28th at 9:00 a.m. EST focusing scaling up the CCS Market to deliver net-zero emissions. Institute experts explain how they see the opportunities for CCS deployment and provide an overview of the near-term and longer-term developments in the CCS market.

Energy Forum Set for CO – The Colorado School of Mines, Colorado State University, University of Colorado-Boulder, and National Renewable Energy Lab are hosting the 9th annual 21st Century Energy Transition Symposium at the Embassy Suites in Downtown Denver on April 28th and 29th.  Over 65 speakers (in 20 different sessions) from various expertise and backgrounds covering environmental challenges & solutions through collaboration with industry from multiple sources of energy.  Hear from keynote speakers including Colorado Governor Polis, ARPA-E Director Lane Genatowski, Tri-State CEO Duane Highley and many more.  

CA Conferences Set – The 8th Annual California Energy Summit is being held on May 6th to 8th in the LA Grand Hotel Downtown.  It will feature top regulatory officials, utility and public power leaders, and developers to discuss the state-wide implications of wildfire mitigation measures, incentives that can drive deployment of self-generation and storage to enhance resilience, near-term resource adequacy and long-term SB100 procurement needs of CCAs, public power and IOUs and the expansion of interstate energy trading and transmission buildout needs. 

AEE Holds Eastern Policy Conference – Advanced Energy Economy holds its second annual Eastern Regional policy conference in Annapolis on May 21st.  The event features business leaders and policymakers exploring legislative and regulatory paths to scaling advanced energy markets in electricity and transportation, in states and nationally.  Speakers will include Alison Cassady of the House Select Climate Committee, PJM’s Susan Riley and Michigan PSC Chair Sally Talberg. 

Clean Power Conference Set – CANCELLED – The first annual AWEA CleanPower Conference will be in Denver on June 1st to 4th. 

DC Oil/Gas Forum Set – The 6th Washington Oil & Gas Forum 2020 is set for June 10th and 11th at The Cosmos Club in Washington, DC.  The US leads global oil and natural gas production. U.S. shale revolution has reshaped the energy landscape in the United States and globally. The American Energy Revolution has delivered massive economic, environmental and geopolitical benefits. Today, the United States is the world’s top oil and gas producer and a leading energy exporter. The Washington Oil & Gas Forum is the foremost innovative and exclusive force for engaging oil and gas leaders in collaborative activities to shape the American and global oil and gas agendas.  Speakers include FERC Chair Neil Chatterjee, Sen Cruz, Reps. Randy Weber, Mike McCaul and Bruce Westerman.