Energy Update: Week of August 2
Energy Update - August 02, 2021
Friends,
I have been watching the Olympics non-stop and haven’t had any news or even Spotify on in a week. I loved watching Table Tennis and Badminton, as well as all the other drama-filled sports. Looking forward to another week of track & field and the field hockey medal rounds (fun to watch as I prep for the Fall NCAA Season).
The House sits out this week temporarily while the Senate tries to finalize its infrastructure and budget packages. Senators last night finalized the actual text of the bipartisan infrastructure bill, which includes money for climate resilience, electric vehicle charging, abandoned mine cleanup and drought relief, as well as several existing transportation and water bills under consideration. POLITICO detailed Manchin’s influence on the bill and his shade on the Dem’s budget. Both are worth a look.
Floor action on the bipartisan infrastructure bill commenced in earnest today. The Senate is poised to consider several amendments, though the terms under which any changes will be considered remain in flux. Leader Schumer wants finish the bill this week. Only then can Democrats turn to the all-important FY22 budget resolution with instructions to committees that would unlock the reconciliation process. While the amendment process could offer some minor twists and turns, especially as members pore over the new text and standby for a revenue score, my colleague Liam Donovan (who is tracking its every move) says the bill is in a good place, and at this point it appears to be a matter of time before passage. Whatever amendments are offered are likely to be considered with a 60 vote threshold, requiring broad consensus to avoid jeopardizing the hard-won agreement. Senate EPW Chair Tom Carper, a longtime ally of President Biden, will manage the floor process. The real uncertainty lies ahead in the House, where Speaker Pelosi has been adamant that she will not take up the bipartisan bill until the Senate sends over the eventual reconciliation package, a process that is almost certain to take into the fall.
Other than that, the Senate mostly focuses on budgets with energy funding at center stage. Senate Approps is meeting Wednesday to mark up the Energy and Water for 2022 after the House folded its E/W funding into a seven-bill minibus that passed last week. The Senate Energy meets tomorrow to consider DOE and Interior science officials while Senate Enviro holds a hearing Wednesday to consider several EPA nominations while on Thursday, Senate Ag meets Thursday to consider Homer Wilkes to be USDA undersecretary for natural resources and environment. Also Thursday, Senate Energy looks at DOE Science programs.
Finally, two interesting articles in the Wall Street Journal. First, Matt Dalton looks at mounting concerns in the U.S. and Europe that the solar industry’s reliance on Chinese coal to make panels will lead to increased emissions. Secondly, Katherine Blunt looks closer at the electrification debate and the challenges many states face in pursuing aggressive measures that may directly impact consumers.
I am headed to Columbus on Friday for the big 100-mile Charity Cancer Ride Saturday (You can Still HELP by Donating HERE, as I am only 7 donors short of 100!!!). I hope to report next week (if I manage to survive the 100 miles) to wrap up the Senate action before breaking until Labor Day. Enjoy the Olympics and let’s try to get those vaccine shots if you can. Stay Safe and healthy.
Best,
Frank Maisano
(202) 828-5864
C. (202) 997-5932
FRANKLY SPOKEN
Rep. McKinley said in a tweet about a meeting with utilities that are member so EnergyForward about his legislation on an Innovation first clean energy Standard.
"I can't really guarantee anybody. And I have not guaranteed anybody on any of these pieces of legislation. Would we like to do more? Yes, you can do what you can pay for. This is paid for, our infrastructure bill is all paid for."
Joe Manchin on CNN’s State of the Union commenting on the budget bill.
ON THE PODCAST
RFF Discusses Building Performance Standards – In this week’s episode of RFF’s Resources Radio, host Kristin Hayes talks with Veronique Bugnion, a climate physicist by training and the CEO of ClearlyEnergy, a provider of innovative solutions that reduce building emissions. Bugnion describes the Council on Environmental Quality’s recent efforts to develop building performance standards for federal buildings and explores challenges ahead for reducing emissions from the difficult-to-decarbonize buildings sector. Noting that no consensus exists for how to embark on creating such standards, Bugnion describes existing efforts, such as Washington, DC’s program that relies on federal Energy Star scores and Tokyo’s flexible system, which effectively functions as a carbon market for large buildings.
FUN OPINIONS
SD U-T Op-ed: SD’s Key Role in Seabed Minerals For EVs – In an op-ed in the San Diego Union-Tribune, former USS Cole Captain Kirk Lippold writes we need battery metals to build electric cars. Luckily, the sea floor has plenty. Between the batteries needed in all those new electric cars plus the development of additional sources of renewable energy, California must face the very real prospect that it may be trading the energy independence of recent years for an insecure and unsustainable reliance brought on by mineral dependence. One of the cleanest, most affordable and most secure sources of battery metals, including nickel, cobalt, manganese and copper, is miles under the surface of the eastern Pacific Ocean, quite literally lying on the sea floor ready to be collected. The maritime technology at play can even safely repurpose some of what we have learned in the oil and gas sector. The closest sophisticated port to the most promising fields of polymetallic sea floor nodules is San Diego. Companies like The Metals Co. and others have already prepositioned vessels in San Diego and made appropriate tests to safely leverage this technology. The future looks bright.
FROG BLOG
Roberts: Challenges of Fossil Fuel Subsidies/Tax Incentives – In his blog on Volts and in Canary Media, our friend David Roberts writes an interesting column on oil/gas subsidies and how they constantly survive. David focuses on a study in Environmental Research Letters, which breaks down the effect of 16 specific, direct fossil fuel subsidies/tax incentives on the profitability and emissions of U.S. oil and gas production, with a more specific focus on intangible drilling costs. While we agree that this is a complex and difficult thing to explain, Roberts stresses the getting rid of them is essential while many other see the benefits of successful oil and gas industries. While it has been targeted many times – including this in this year’s budget – it always seems to survive because of its bipartisan support. Roberts concludes by saying when Congress actually gets around to addressing that IDCs, we’ll know we’re finally getting somewhere on climate policy.
FUN FACTS
The costs of electrification: Britain’s independent Office For Budget Responsibility calculated the cost of making buildings net zero at £400 billion ($556 B), while the bill for vehicles would be £330 billion ($458 B), plus £500 billion ($694 B) to clean up power generation and a further £46 billion ($64 B) for industry.
IN THE NEWS
Brits May Delay Gas Ban because of Costs – The UK’s ban on gas boilers could be pushed back five years due to backlash over the soaring cost of 'net zero' on households ahead of the COP26 climate conference this year. Boris Johnson is said to be looking at delaying the ban on sales of gas boilers to 2040, in a move that would allow firms extra time to develop more affordable alternatives including cheaper hydrogen boilers and heat-pumps. However, the push back could result in the UK falling behind on its net zero target of 2030. Under plans, the public will be incentivized to buy an eco-friendly heat pump next time their boiler breaks down, but would be given extra time to buy one if they want to before the ban kicks in. At present, a heat pump can set you back an eye-watering £14,000 with even minsters warning that these green measures could cost households £400 billion on top of the eye-watering COVID bill.
Utilities Meet McKinley, Schrader Team on CES – Utilities that are members of EnergyForward – a group of power generators serving millions of customers across the United States – today met in a roundtable discussion with Congressman David McKinley, staff members of the McKinley and Schrader offices, and the Energy Innovation Reform Project. The subject was clean electricity standards and the framework contemplated by their bill, the Clean Energy Future through Innovation Act of 2021. McKinley and Schrader recently reintroduced their innovate/regulate CES concept last month. EnergyFoward members continue to be impressed by the bipartisan opportunity presented by the bill, and the innovative way it takes into account challenges that face the clean energy transition, like technological development, transmission, reliability and affordability, while providing a roadmap for progress on greenhouse emissions reductions.
Damon Portrays Roughneck – Actor Matt Damon stars in the upcoming movie "Stillwater," playing an Oklahoma oil rig worker, and he spent time with other "roughnecks" to learn about his fictional character. "Everything I do in this movie came from them. All the detail, all the physical detail came 100% from those guys," Damon said.
368 Business Leaders Call for Action on the Infrastructure Package – The Clean Energy Business Network (CEBN) delivered a letter this week to Senate leadership and the "Gang of 22" urging support for a bipartisan infrastructure package that includes the Energy Infrastructure Act. Signed by 368 clean energy business leaders and individuals, the letter calls on Congress to advance this legislation and other energy policies. Spearheaded by the CEBN and with support from its parent organization, the Business Council for Sustainable Energy (BCSE), the letter garnered support from cleantech CEOs, supply chain providers, entrepreneurs, and partners from across the clean energy economy. The letter states, "Supporting the clean energy industry would create both immediate AND long-term benefits by generating well-paid manufacturing and construction jobs in every part of the country while creating a stronger, healthier, and more resilient future for our nation." CEBN President Lynn Abramson added, "As the small business voice for the clean energy economy, the Clean Energy Business Network applauds this bipartisan effort. Small firms employ approximately 70 percent of workers in the clean energy sectors. Both as energy consumers and providers, small businesses will benefit from this legislation as a first step to addressing energy infrastructure needs, maintaining industrial leadership, and protecting homes and businesses from more extreme weather."
Interior to Review NC Wind Project – The Biden administration has kick-started the environmental review process for what could be the first offshore wind project to operate off North Carolina. The Bureau of Ocean Energy Management opened a 30-day public comment period on the proposed 800-megawatt Kitty Hawk offshore wind farm, a project that would consist of up to 69 total wind turbine generators located 27 miles offshore. The commercial-scale project developed by Avangrid Renewables would include export cables connecting to the electric grid in Virginia Beach, Virginia. Kitty Hawk North consists of nearly 50,000 acres located over 27 miles off the coast of the Outer Banks, due east of Corolla, North Carolina. When the entire 122,405-acre Kitty Hawk WEA is developed, it is expected to support a total generation capacity of up to 2,500 MW - enough to power 700,000 homes with clean energy.
SoCo Closes In on Vogtle Operations – Southern Company reported during its earnings call last week that hot functional testing (HFT) had been completed on Vogtle Unit 3, and that the “next and final major milestone” is fuel load. Southern expects project fuel load to occur sometime near year-end 2021 or early in 2022. The Vogtle nuclear power plant expansion project includes the addition of two new Westinghouse AP1000 reactors—Units 3 and 4 at a site near Waynesboro, Georgia, that has two existing units. (Unit 1 began operation in 1987 and Unit 2 began operation in 1989.) The project is owned by four partners—Southern Company subsidiary Georgia Power (45.7%), Oglethorpe Power Corp. (30%), Municipal Electric Authority of Georgia (MEAG Power, 22.7%), and Dalton Utilities (1.6%).
ON THE SCHEDULE THIS WEEK
MOST EVENTS SCHEDULED ARE NOW ONLINE WEBINARS
Vets Energy Week Set – The Atlantic Council Holds Veterans Advanced Energy Week today through Friday. Veterans Advanced Energy Week is an interactive virtual learning and networking experience dedicated to Veterans, reservists, and military spouses working to strengthen US national security through careers in the advanced energy industry.
Senate Energy Hold Nominations, Science Programs hearing – The Senate Energy Committee hold a hearing tomorrow at 10:00 a.m. on the nominations of Geraldine Richmond to be Energy undersecretary for science; Asmeret Berhe to be director of the Energy Department's Office of Science; and Cynthia Stachelberg to be assistant Interior secretary for policy, management and budget. Then on Thursday at 10:00 a.m., the Committee will look at DOE’s Science Programs.
Forum to Look at Private Sector in Energy Transition – Tomorrow at 11:45 a.m., the Atlantic Council holds a discussion on opportunities for bipartisan climate cooperation as well as the role of the private sector in the energy transition. This is the inaugural edition of Transition Trailblazers series features a discussion of climate policy with Sens. Chris Coons (D-DE) and Senator Mike Braun (R-IN).
Forum to Look at Army Enviro Issues – The Association of the United States Army holds a discussion tomorrow at Noon on Army environmental issues. The event includes a Fireside Chat with Jack Surash, the Senior Official Performing the Duties of the Assistant Secretary of the Army Installations, Energy and Environment. The Chat will also include David Clark of the office of the Army Deputy Chief of Staff.
Forum to Feature Interview with SEPA Head – Tomorrow at 2:00 p.m., WRISE will be holding an online forum featuring an interview with Julia Hamm, President and CEO the Smart Electric Power Alliance (SEPA). Julia is a visionary leader at the center of the transformation underway in the electric power sector to a clean and modern energy future. For the past 20 years she has been advising and collaborating with utilities, solution providers and government agencies on business models, grid modernization, and clean energy policies, strategies and programs. This interview will be conducted by ConEd’s Kamaj Bailey and will focus on the evolution of renewables and the role SEPA has played in that transition.
Forum to Look at China Waste Management – The Woodrow Wilson Center's China Environment Forum holds a virtual discussion on Wednesday at 9:00 a.m. looking at waste management in the shadows in China. Speakers will shine a light on these informal workers who have managed waste in China for decades and explore how and why they are crucial to help China successfully deal with growing waste problems.
Senate Approps Marks Up Energy Funding – The Senate Appropriations Committee holds a markup of the FY2022 Energy and Water Development and Related Agencies appropriation bill on Wednesday at 9:30 a.m.
Senate Enviro Hosts EPA Noms – The Senate Environment Committee holds a hearing on Wednesday at 10:00 a.m. on the nominations of Amanda Howe to be assistant EPA administrator for mission support; David Uhlmann to be assistant EPA administrator for enforcement and compliance assurance; and Carlton Waterhouse to be assistant EPA administrator of land and emergency management.
Forum Looks at EVs in 2021 – The Smart Energy Summit hosts a webinar on Wednesday at 1:30 p.m. addressing the adoption and drivers for EV in 2021, as well as the role of storage in helping to manage the grid. Revel’s Paul Suhey and Chargepoint’s Anthony Harrison speak as well as a Panel Of experts.
Breakthrough Hosts Forum – The Breakthrough Institute hosts a 2021 Dialogue on Ecomodern Justice on Wednesday to Friday. On Friday, the forum will feature an energy infrastructure panel featuring ClearPath’s Jena Lococo and CATF’s Armand Cohen.
Chamber Looks at ESG – The US Chamber will hold a forum on Thursday at 2:00 p.m. for its second event in a series on the future of ESG (environmental, social and governance) policy and investing. This event will explore the current landscape of standard setting, with both domestic and international perspectives in mind, as well as what considerations the Securities and Exchange Commission (SEC) might factor into rulemaking on mandatory ESG-related disclosures. CCMC will also discuss the results of a survey on corporate disclosure practices recently conducted in conjunction with NASDAQ and a number of other trade associations
TX Enviro Superconference Set – The 33rd annual Texas Environmental Superconference will be held LIVE on Thursday to Friday at the Four Seasons Hotel in Austin, Texas. This year’s program promises to be as content-filled and as much or more fun as past Superconferences. My Bracewell colleague Ann Navaro speaks on an infrastructure panel while API’s John Wagner is on a climate change panel.
WRI to Look at December COP Meeting Successes – On Thursday at 9:00 a.m., the World Resources Institute will hold an overview of national climate action three months ahead of the COP26 negotiations. WRI experts will analyze the very latest submitted national climate plans, share insights on how new plans compare to those put forward five years ago, and present research on the scale and pace of climate action required keep the Paris Agreement’s 1.5°C goal within reach.
Senate Ag Hosts Enviro, Resources Nominee – The Senate Agriculture Committee holds a hearing on Thursday at 10:00 a.m. focused on the nomination of Homer Wilkes to be USDA undersecretary for natural resources and environment.
Granholm to Address AEE Webinar on Manufacturing – AEE hosts a webinar on Thursday At 1:00 p.m. that will feature U.S. Secretary of Energy Jennifer Granholm who will discuss investments in advanced energy U.S. manufacturing. Granholm argues that is bolsters manufacturing, creates good jobs and expands business opportunities for companies in our industry.
NARUC, DOE Forums Continue on Nuclear Reliability, Resilience – On Friday at 2:00 p.m., NARUC and DOE continue their nuclear energy partnership webinar series with a forum on how nuclear contributes to grid reliability and resilience in Puerto Rico and the Pacific Northwest. Jesus Nunez of the Nuclear Alternative Project and E3’s Arne Olson speak.
IN THE FUTURE
NREL Hosts Discussion of Storage Study – The National Renewable Energy Lab holds a webinar next Tuesday at 11:00 a.m. to look at the fourth report in the Storage Futures Study that examines the drivers of customer adoption of behind-the-meter battery storage. For this phase of the study, NREL expanded capabilities of the Distributed Generation Market Demand model to simulate customer decisions whether to adopt distributed storage paired with PV under different scenarios. Model results show that lower battery costs and higher value of backup power drive distributed storage deployment.
Oil/Gas Forum Set for Houston – US Energy Stream is holding the in-person 2nd Texas Oil & Gas Forum 2021 on August 11th and 12th at the Petroleum Club of Houston, TX. The Forum is a bi-partisan annual market intelligence platform. It brings powerful U.S. Senators and Congressmen from both sides of the aisle together with top energy executives and energy investors. The main topic of this year’s Forum is how Texas and the United States can succeed in the energy transition and in net zero emissions economy.
Forum to Look at Sustainable Buildings – GreenBiz holds a forum on Thursday August 12th at 1:00 p.m. that will look at measures can also help make buildings healthier and safer for those that live or work within. In this webcast, experts from Honeywell will cover the latest thinking on the future of buildings, including key trends, challenges and opportunities to make buildings sustainable and healthy, strategies to navigate the journey to sustainable buildings and the evolution of the sustainable building of the future.
Forum Addresses Renewable EVs – The Center for Resource Solutions and Smart Electric Power Alliance hold a forum on Thursday August 12th at 2:00 p.m. that discusses strategies to green that power—current regulations that promote EV use of renewable energy, utility green pricing programs, REC purchases and more. Geared towards all participants in the EV ecosystem, this webinar will provide solutions that can catalyze the positive climate impact of EVs, allowing users to meet their climate goals and solution providers to help them get there.
Bracewell, Energy Voice Look at Offshore Wind, Hydrogen, Carbon Capture in Energy Transition – On August 12th at 3:00 p.m., Energy Voice and Bracewell will host a forum on new energy opportunities in the US. The energy transition will need to harness an array of technologies with offshore wind, carbon capture utilization and storage (CCUS) and hydrogen all playing a central role. Scheduled for the week prior to OTC and the NAPE Summit, this event will set the agenda for the Houston conference season, where there will be huge attention on the disruptive capacity of these three transition industries. Speakers include my Bracewell Colleagues Christine Wyman, Liz McGinley and Steve Hug, along with Ari Liquide’s Dave Edwards, Equinor’s Anders Hangeland and Matt Vining of Navigator CO2 Ventures, among others.
Forum to Look at Virtual Power Plants – On Thursday August 12th at 3:00 p.m., speakers from the Institute for Energy Economics and Financial Analysis (IEEFA), OhmConnect and Green Mountain Power will discuss virtual power plants. During this webinar, speakers will focus on specific examples where DERs are being aggregated to act as resources and/or grid assets in addition to providing customer benefits. We will explore how the installed VPPs are working from both an operational/technical and economic/policy perspective.
Forum to Look at Climate Resilience Issues – On Thursday August 12th and Friday August 13th, the National Association of State Energy Officials (NASEO) and DOE holds a two-day virtual event on state opportunities to advance energy technology innovation and commercialization. This event will showcase promising technologies being validated in the states, explore the innovation ecosystem that turns promising ideas into commercial technologies, and describe state efforts to strengthen equity and economic opportunity through technology development.
OTC Set for Houston – The Offshore Technology Conference 2021 will be held at NRG Park in Houston from August 16th to 18th.
Forum to Look at Jos, Clean Energy Efforts in States – On Tuesday August 17th the Security and Sustainability Forum and Arizona State hold their third webinar in this ASU series that looks at supportive state policies that respond to stakeholder demands for clean energy solutions can win business. The panel convenes energy policy officials from several states to discuss how they use state clean energy goals and requirements to support a pro-clean air, pro-growth economy to attract new businesses and investments in their states. Former Colorado Governor Bill Ritter joins a panel of experts.
NAPE Also Set for Houston – Set for in person on August 18-20th and virtual on Aug 9th to Sept 3rd, the 2021 NAPE Summit is a hybrid expo and conference with a heavy focus on networking that brings together domestic and international decision-makers to forge, facilitate and close deals. With the addition of renewable energy sources to our oil and gas offerings, NAPE will be the ultimate venue for energy deals.
USEA Hosts Advance Energy Tech Forum – The US Energy Assn will holds its 3rd annual Advanced Energy Technology Forum on Thursday September 9th from 9:00 a.m. to 1:00 p.m. exploring technological innovation in the energy sector. The event focuses on research and development in the corporate and government sectors, including national labs and universities.
Clean Energy Week Set for Sept – The 5th annual National Clean Energy Week begins September 20-24th.
Forum to Focus on Clean Energy – On September 28th, the Public Service Commission of the District of Columbia hosts Clean Energy Summit that will focus on the path to decarbonization. This hybrid event will feature multiple panels and keynotes featuring federal, state, local, and industry leaders who will come together to answer questions and open a discussion as to how we chart a path to a clean energy future.