Energy Update: Week of August 17

Friends,

I was struck over the weekend by the sudden passing of US Energy Assn executive director and our friend Barry Worthington.  Barry started his career in Houston, at what was then Houston Lighting & Power, now CenterPoint Energy. While he was at home in the energy capital of the world, he brought his commitment to the energy business to DC 30 years ago to build the USEA, which emerged as an influential nonprofit to support the government’s dedication to bring energy access to millions of global citizens without it. Under Barry’s leadership, USEA became the central convening force and educational platform in the US energy community, bringing together a spectrum of energy leaders from all sectors. He was a diplomatic yet unapologetic pragmatist. Barry circumvented political polarity and sought common ground among stakeholders and always valued partnership.  He will be sorely missed, especially by his family, friends and certainly the larger energy industry.  Here are statements on his passing from USEA, EEI, NERC.

 

While Speaker Pelosi has said she will call the House back in session to deal with the newest political football – the US Postal Service – I wonder how much activity that will require, especially since the latest COVID package is still stalled and seems more timely.  It is also in the context of the “virtual” Democratic National Convention, which starts today and runs through Thursday. The event was originally set for Milwaukee but will be all on-line. Major speakers tonight are Bernie Sanders and Michelle Obama; tomorrow Bill Clinton and Jill Biden; Wednesday Kamala Harris and Barack Obama and finally Joe Biden on Thursday.  See the agenda and full lineup HERE. 

The Convention will feature a number of climate-related activity, starting today when the DNC’s Youth Council meets with activists focused on the disproportionate impact pollution has on poor and minority communities. Tomorrow, the DNC Council on the Environment and Climate Crisis will host a two-hour virtual event with panels on Biden’s climate plan and why Democrats should run on climate change featuring Jay Inslee and Tom Steyer (perhaps not the best two voices given their Presidential runs).  Other clean energy-centered panels include a sustainable infrastructure panel tomorrow that features GM and Dominion and a Thursday 5:00 p.m. forum (the very last panel) on meeting the climate crisis with Steyer and IBEW’s Lonnie Stephenson.  Sideline events today include a 1:00 p.m. Hill event on energy access and reliability with Rep. Vicente Gonzalez and a 2:00 p.m. forum with the NewDEAL Forum Climate Group, co-chaired by WI Lt. Gov. Mandela Barnes and Norfolk Councilwoman Andria McClellan, with input from NRDC, C2ES and Third Way that will discuss its report with Inslee and former EPA head Gina McCarthy. 

Our team is monitoring all these events and is happy to offer insight, perspective, context and background.

If that alone was enough action on politics and climate, the Trump Administration this morning threw more gasoline into the enviros’ fire by announcing that it has finalized a plan to open ANWR to oil and gas companies.  Interior said it completed its required reviews, clearing the way to auction off leases later this year to companies interested in drilling inside the refuge’s coastal plain. Of course, our friends at API have a statement (email if you need) and certainly the legal battles will ensue.

Finally, just wanted to mention that expert oil analyst and friend Paul Sankey, long-time analyst with IEA and a number of private outlets like Wood Mackenzie and Deutsche Bank is hanging out his own shingle, launching Sankey Research.  Always fun, somewhat snarky and super smart, Sankey provides great industry, market, political and policy insight. 

We will see how the week proceeds, but I’m inclined to not have another update until September unless really urgent.  Call with questions, stay safe & healthy.  Stay tuned here for our latest COVID-19 Updates.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

 

FRANKLY SPOKEN

“It is impossible to completely articulate the grief we feel at this moment about the loss of Barry Worthington. We feel his absence acutely; he was our family, our champion. Barry was a remarkable leader, and his absence reverberates among us all.”

USEA Chairman Sheila Hollis regarding the passing of USEA executive director Barry Worthington.

"It's a no-win proposition because you're going to alienate (one or) the other group. To the extent that they can, they'll probably stall or wait. And they can get away with it because it's such an uncertain environment in terms of what volumes are going to look like next year."

Tom Kloza, analyst at the oil price service OPIS speaking to POLITICO about the 2020 ethanol RVO announcement which has been indefinitely delayed.

ON THE PODCAST

PA Expert Talks NatGas Regs, AG Report – The Plugged In Podcast from the Institute for Energy Research hosted Marcellus Shale Coalition founder Kathryn Klaber last week to discuss the regulatory landscape in Pennsylvania and steps that energy producers have proactively taken to ensure the safety of their communities and how these realities differ from the story presented in a recent report by the state’s attorney general.

FUN OPINIONS

WSJ: Heat is on in California, Energy Decisions Make it Worse – In an editorial in the Wall Street Journal, the Board hammers California saying its anti-fossil fuel mandates are leading to electricity shortages.  With the heat, California residents are facing rolling blackouts.  WSJ: “Electricity blackouts are awful at any time, but especially during an extreme heat wave and for reasons that are man-made. That’s what millions in California have been enduring in recent days, and their plight is a warning to the rest of America about the risks of Green New Deal policies. California’s antipathy even to natural gas and nuclear power has resulted in higher energy prices and now power surpluses and shortages because renewables are intermittent energy sources. The Sacramento Democrats want to take this policy nationwide via Joe Biden, so prepare for hot summer nights.”

FROG BLOG

Wind Growth Ready to Move Forward – In an opinion blog for the Canton Repository, Doug Lucas, an engineer with Ohio-based manufacturer Timken Industries, says greater efficiencies and cost declines will help further the industry’s growth.  Lucas says the cost of wind energy has dropped 70% since 2009. At the same time, more and more major corporations are setting targets for zero-carbon emissions. As a result, many of these companies are turning to wind to help power their businesses, (including the traditionally Republican-leaning Timken).

PennLive: Irrefutable Energy Truths – In a recent blog post in PennLive, CNX Resources CEO Nick DeIuliis  writes ongoing efforts to tax carbon, stop new natural gas pipelines, mislead the public over regulations governing natural gas development, and ban new natural gas hook-ups in American cities all ignorantly suggest mankind is about to convert overnight to a carbon-free society.

IN THE NEWS

CA Grid Rolls into Blackouts as Power Surges for Heat – An overwhelming surge in electricity demand caused Cal ISO to impose rolling blackouts for 4 million people Friday as power reserves fell below a critical threshold.  From the Cal ISO release: “A persistent, record-breaking heat wave in California and the western states is causing a strain on supplies, and consumers should be prepared for likely rolling outages during the late afternoons and early evenings through Wednesday. There is not a sufficient amount of energy to meet the high amounts of demand during the heatwave.”  Flex alerts urge consumers to lower energy use during the most critical time of the day, 3 p.m. to 10 p.m., when temperatures remain high and solar production is falling due to the sun setting. They add extended periods of heat also can cause generator equipment failures that can lead to more serious unplanned losses of power. Cal ISO imposed blackouts after power reserves fell below a critical threshold, shifting to a “Stage 3” emergency which triggered load interruptions across the state.  The blackouts underscore the vulnerability of the state’s electric grid are to being overwhelmed precisely when people lean on them most for safety and comfort. Check out the LA Times coverage HERE. 

EPA Pulls Back Obama Methane Rule – As long expected, EPA finalized its undoing of the Obama-era methane limits on new oil and gas wells last Thursday. The EPA first proposed the rollback last year, accusing the Obama administration of enacting a legally flawed rule, and EPA officials said it would save companies tens of millions of dollars a year in compliance requirements without changing the trajectory of methane emissions even though some bigger oil companies argued the changes weren’t necessary.  API said its supports EPA’s move because it is consistent with the requirements of the Clean Air Act. API:

“Our industry continues to drive down methane emissions from operations while meeting America’s energy needs every day. Under these modified rules, operators will still be required to control emissions, and the industry continues to make progress in reducing methane emissions through new technologies. Thanks to measurable industry actions, promoted by initiatives like The Environmental Partnership, methane emission rates from five of the largest producing regions across the U.S. have fallen more than 60 percent from 2011 to 2018 – even as production in those regions has increased dramatically.”

Cal Tech Researchers Look at Impacts of Energy Storage – CalTech researchers published an important report late last week that says as more states in the U.S. push for increased reliance on variable renewable energy in the form of wind or solar power, long-term energy storage may play an important role in assuring reliability and reducing electricity costs.  Looking at decades of data on wind and solar availability, it revealed that adding long-term storage such as hydrogen to a wind-solar-battery system lowers energy costs. This research shows the gas system is not only necessary to providing reliable power to back-up renewables, natgas fuels are actually the most cost-effective way to get more renewables in play. Lead author Jackie Dowling and her collaborators determined that currently available battery technology is prohibitively expensive for long-term energy storage services for the power grid and that alternative technologies that can store a few weeks’ to a month’s worth of energy for entire seasons or even multiple years may be the key to building affordable, reliable renewable electricity systems. The paper, titled “Role of long-duration energy storage in variable renewable electricity systems,” appears in the September issue of Joule. Co-authors are Nathan Lewis and Katherine Rinaldi, chemistry graduate student, of Caltech; Tyler Ruggles, Mengyao Yuan, and Ken Caldeira of the Carnegie Institution for Science; Steven Davis of UC Irvine; and Fan Tong of the Carnegie Institution for Science and Lawrence Berkeley National Laboratory.

NYT: Concrete, a Centuries-Old Material, Gets a New Recipe – In a recent article in the New York Times, highlights a number of companies that are working to create a greener mix for the building block in most construction projects.  The experimentation has also been driven by demand from architects and developers who want their buildings to be green, companies seeking to achieve ambitious carbon goals and governments instituting low-carbon policies. The movement is playing out on a variety of fronts including using recycled post-consumer glass, Portland-limestone and employing greener methods of employing waste carbon. MIT’s Jeremy Gregory the executive director at the Concrete Sustainability Hub, said this combination of efforts is the right approach. “I don’t see a single game-changer technology,” Gregory said. “It’s going to be a combination of things.”

Private Donors Funding Key CO Gov. Positions – Democratic Governor Jared Polis is accepting more than $1 million from donors, nonprofits and foundations to pay salaries and costs associated with six top policy positions, according to a review of financial records and other documents by The Colorado Sun in partnership with CBS4 Denver. The governor’s special adviser on climate change — tasked with moving Colorado to 100% renewable energy and hitting pollution reduction targets — is funded through the U.S. Climate Alliance with money from a foundation backed by the grandson of Walmart’s founder.

ON THE SCHEDULE THIS WEEK

MOST EVENTS SCHEDULED ARE NOW ONLINE WEBINARS

Democratic National Convention – Virtual forum set for August 17^th through 20^th.  The event will feature a series of climate-related issues starting today when the DNC’s Youth Council meets with activists focused on the disproportionate impact pollution has on poor and minority communities. Tomorrow, the DNC Council on the Environment and Climate Crisis will host a two-hour virtual event with panels on Biden’s climate plan and why Democrats should run on climate change featuring Jay Inslee and Tom Steyer (perhaps not the best two voices given their Presidential runs).  Other clean energy-centered panels include a sustainable infrastructure panel tomorrow that features GM and Dominion and a Thursday 5:00 p.m. forum (the very last panel) on meeting the climate crisis with Steyer and IBEW’s Lonnie Stephenson. 

Hill Forum to Look at Energy Access, Reliability – Today at 1:00 p.m., The Hill is hosting a virtual DNC forum on energy access and reliability with Rep. Vicente Gonzalez, Will Marshall of the Progressive Policy Institute and CSIS’s Jane Nakano. On the sidelines of the 2020 Democratic Convention, The Hill will host a discussion with policymakers and energy experts to explore what can be done to ensure reliable, affordable access to energy while limiting the impact on the environment.

Inslee, McCarthy Headline NewDEAL Policy Group Report – The NewDEAL Forum Climate Policy Group, co-chaired by Wisconsin Lt. Gov. Mandela Barnes and Norfolk Councilwoman Andria McClellan, with input from the Natural Resources Defense Council, Center for Climate and Energy Solutions and Third Way will hold a DNC sideline virtual event today at 2:00 p.m. to review a new report.  The report highlights key strategies like moving to 100% clean energy sources on "ambitious timeframes;" ending fossil fuel subsidies; requiring the natural gas industry to capture methane leaks; supporting stronger fuel efficiency standards in line with Obama-era rules; and scheduling an emissions cap or fee trajectory to help reach climate goals.  Speakers at the forum include Inslee, Microsoft President Brad Smith and former EPA Administrator Gina McCarthy, now the president of the NRDC Action Fund.

NASEO to Look at Rural Energy – The National Assn of State Energy Officials hosts a virtual forum today at 3:00 p.m. to look at energy efficiency programs in rural America. The webinar will cover key strategies which have been effectively employed by state and local governments to reach these communities, and provide two case studies on advances in building efficiency in the rural market. Presenters include ACEEE’s Mary Shoemaker, Amanda Rains of the Washington State Department of Commerce and Vermont Energy Investment Corporation’s Peter Schneider.

EV Forum to Look at Drivers – The second of three web forums hosted by the Electrification Coalition and Smart Columbus will be held on August 18^th at 3:00 p.m. to discuss driving consumer adoption through Public/Private Partnerships.  In three years, Columbus increased electric vehicle adoption more than four-fold without supportive state policies or incentives, but through the collaboration of the public and private sectors under the $10 million Smart City Challenge grant awarded to Columbus by the Paul G. Allen Family Foundation. Discover how more than 70 Columbus companies came together to educate tens of thousands of drivers on EVs, conduct more than 12,000 EV test drives, create new corporate incentive programs, and grow consideration for EVs by more than 20%.

Senate Enviro to Hold WY Field Hearing – The U.S. Senate Committee on Environment and Public Works will hold a field hearing Wednesday, August 19^th at 10:00 a.m. on Wyoming’s efforts using and storing carbon dioxide emissions.  The hearing will be held at the Wyoming Integrated Test Center in Gillette.

USEA CCUS Roadshow in South, Southwest – On Wednesday at 1:00 p.m., the US Energy Assn will hold a virtual discussion on its “Virtual CCUS Roadshow” looking at South and SouthWest Regional Issues.  Other topics include impact of low oil prices on CCUS projects dependent on CO2 for enhanced oil recovery; federal, state and local incentives to support commercial CCUS projects; and how CCUS technology can be harnessed to create emissions free hydrogen, reduce plastic waste, and impact corporate social responsibility.  Speakers include DOE’s Shawn Bennett and USDA’s Rural Utilities Service director Chad Rupe, among others. 

EPA to Host Air Pollution Web Event – The EPA will host a webinar on Wednesday at 3:00 p.m. on air pollution and heart disease.  This webinar will discuss the parallel progress of EPA science, the evolution of the technology used for studying air quality and health, and our understanding of heart disease, improvement in air quality and human health.

Climate Leadership Summit Continues – The American Climate Leadership Summit continues its Thursday forums this week at 2:00 p.m. with a focus on climate disparities, restoration, climate vision and challenging assumptions. Former DOE official Julio Friedmann and Christina Figueres are among the speakers.

Forum to Look at Air Pollution, COVID – The National Institute for Health Care Management (NIHCM) will hold a web forum on Friday at Noon to look at COVID and air pollution impacts.  The webinar will explore how different neighborhoods in the same city can have vastly different air quality and what that means for their residents’ short- and long-term health outcomes.  Among the speakers is EPA’s Chris Lee.

IN THE FUTURE

GOP Convention Goes Virtual – After fits, starts and moves to Florida, the GOP convention will also be virtual the Week of August 24^th to 27^th.  The will likely be some closed meetings in Charlotte, but everything public will be virtual.

Hill Forum to Look at Energy, National Security – Next Monday at 1:00 p.m., The Hill is hosting a virtual RNC forum on energy and national security with Texas Rep. Bill Flores and our friend Karen Kerrigan of the Small Business and Entrepreneurship Council. On the sidelines of the 2020 Republican Convention, The Hill will host a discussion with policymakers and energy experts about the strategic importance of America’s energy independence.

Energy Storage Conference Set for Virtual – The Energy Storage Assn holds its “virtual” annual conference on August 24^th to 27^th.  Among the speakers will be Dep Secretary of Energy Mark Menezes and our friend Rob Gramlich.

Refiners Hold Summit – The American Fuel and Petrochemical Manufacturers host their 2020 Summit on August 25^th to 27^th.  The Summit will continue its mission to showcase a combination of the best elements of the Reliability and Maintenance Conference, the Cat Cracker Seminar, and the Operations & Process Technology Summit, creating the only single event for the refining and petrochemical industries focused on improving plant-wide performance.

Climate Leadership Summit Continues – The American Climate Leadership Summit continues its Thursday forums this week at 2:00 p.m. with a focus on the politics of climate, voting, the upcoming election and more.  Sens. Brian Schatz and Sheldon Whitehouse are among the speakers.

AWEA’s September Conferences Go Virtual – The American Wind Energy Association (AWEA) announced that the Wind Resource & Project Energy Assessment Conference and Wind Project Siting and Environmental Conference will be held virtually this September. AWEA is focused on reconstructing these events to create a valuable and successful online experience. Participants will have available live presentations, on-demand sessions, one on one networking, and shared social experiences.

Forum to Address Charging Infrastructure – The final web forum hosted by the Electrification Coalition and Smart Columbus will be held on September 8^th at 3:00 p.m. to discuss fortifying regional EV charging infrastructure. More than 1,000 new EV charging ports have been installed in the Columbus Region. This explosion of charging has contributed to a more than four-fold increase in EV purchases in the last three years. The event will look at how Smart Columbus partnered with local utilities to help residents, workplaces, businesses and developers identify the right ways to install EV charging infrastructure for their current needs and for the future.

Climate Leadership Summit Set – The American Climate Leadership Summit 2020 will now be a 100% virtual live event each Thursday during the month of August featuring thought-and-action-provoking topics and speakers in an engaging and interactive online experience.  It all starts Thursday at 2:00 p.m. with a discussion of climate progress and challenges, enviro/climate justice issues.

GTM to Look at Energy Storage – Greentech Media holds a forum on September 1^st at 1:00 p.m. that will feature Wood Mackenzie’s Energy Storage research team will connect with some of the most innovative energy storage technology players and developers, including Wärtsilä's Vice President of Energy Storage and Optimization. From strategies to operate batteries more efficiently to automation and predictive analytics tools helping asset managers reduce operational downtime and increase safety, this exclusive virtual session will break down some of the key drivers behind energy storage life-cycle management optimization.

Mexico Gas Summit Set – The 6^th Mexico Gas Summit will take place virtually this year on September 8^th, 9^th and 10^th.  The event will look at Gulf Coast onshore exploration and production, energy logistics and transportation, natural gas commercialization/infrastructure and the refined fuels market.

Bloomberg Green Festival Set – The Bloomberg Green Virtual Festival will be held on September 14^th to 18^th.  The event will feature leading voices working at the edge of change to foster solutions-oriented conversations.  The five-day festival will feature a cross section of visionaries from business, design, culture, food, technology, science and entertainment in a smart mix of panels, presentations, fireside chats, and interactive demonstrations.  The Green Festival will be a true thought leadership experience operating at the crossroads of sustainability, design, culture, food, technology, science, politics and entertainment.

National Clean Energy Week – September 21-25