Energy Update: Week of December 13th

Friends,               

Here we go… Two weeks until Christmas (which is really hard to believe).  While this often can be a quieter time in DC, not so now.  It is a make-or-break week in Democrats’ effort to pass President Biden's climate and social spending bill by Christmas.  With only 10 days to go, they face growing challenges, including concerns about record inflation, “Byrd Rule” issues and serious consternation from Sen. Manchin (and to a certain extent Sen. Sinema).

I talked about this and other energy items with my friend Julie Mason this morning on her Sirius XM P.O.T.U.S radio show. We’ll see where we are at the end of this week. A great Bracewell team update on where things stand following Friday’s Finance Committee tax moves right here.

Biden and Manchin could speak again as early as today about the BBB and Manchin is also likely to meet with a group of moderate Democrats tomorrow on voting rights to see if he would be open to a “carve-out” to the Senate’s filibuster rule similar to last week’s Debt Limit vote (seems like the start of a slippery slope).

Despite Manchin concerns about the EV provisions that requires union jobs, Administration officials including VP Harris, Energy Sect Granholm and climate advisor Gina McCarthy will head to an event in Maryland today promoting the White House’s EV push.   And speaking of inflation, ACCF is hosting Larry Summers tomorrow at Noon and you know that will be on the agenda. With all the discussions of gas prices, the SPR and items like hydrogen, DOE hosts the 131^st meeting of the National Petroleum Council tomorrow.  Finally, FERC holds its December Open Meeting Thursday.

Other good events include the Electrification Coalition and SAFE hosting representatives from EPA, DOT and DOE to provide a breakdown of EV funding provisions contained in the Infrastructure Investment and Jobs Act and the Build Back Better Act, while Third Way holds their the second installment of its Fastest Path to Zero Virtual Series featuring Rep. Don Beyer and panelists Akshat Rathi of Bloomberg News, Columbia Climate School Dean Jason Bordoff and RMI’s Sarah Ladislaw.

Finally, earlier this morning, the Washington Post Live held a conversation about investing in green energy with venture capitalist and author John Doerr and DOE’s Kelly Speakes-Backman.  You should be able to catch the replay here…

Stay Safe and healthy.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

FRANKLY SPOKEN

“Efficiency's the key, and our technology will drive down the (battery) pack size in this car. And driving the pack size will drive down the cost. And that's where we get to a $25,000 car. And I think that could come three to four years from now."

Lucid Motors CEO Peter Rawlinson in an Axios on HBO interview that aired Sunday saying he doesn't "want to be doing wealthy people's cars."  Currently, Lucid’s top model, with a 500+ mile range, costs almost $170,000.

ON THE PODCAST

Getting Transmission Going– In this episode of the Energy Transition Show, host Chris Nelder revisits the topic of transmission to see what needs to happen to get new transmission projects moving in the US. Nelder asks whether a macro grid based on big transmission lines is still really the cheapest and best solution, or if more distributed solutions might be worth reevaluating in light of updated cost data and some contemporary grid modeling.  Nelder is joined by Liza Reed, the research manager for low carbon technology policy at the Niskanen Center in Washington, D.C., an expert in High Voltage Direct Current, electricity transmission, and technology innovation. She shares with us the latest thinking about transmission, and helps us tie together some of the threads we have discussed in previous episodes, to paint a picture of how more transmission can bring hundreds of gigawatts of renewable power to market in the US.

FUN OPINIONS

YERGIN: The Energy Transition is Complicated – In a column in The Atlantic “Why the Energy Transition Will Be So Complicated”, IHS Markit’s Daniel Yergin  assesses the complexities of the competing demands between climate action and the continued need for energy. The 2015 Paris climate conference established the “what”—the goal of carbon neutrality. COP26 in Glasgow resulted in major steps forward on the “how”—achieving the goal. But when it comes to the energy transition itself, we may still have much to learn about the complexities that lie ahead.

FROG BLOG

Banning Oil/Gas Exports Is Bad Policy – In a column in Real Clear Energy, API CEO Mike Sommers said imposing a ban on crude exports would actually increase gas prices. Global energy markets face a delicate rebalancing act as the world navigates around Covid variants, inflation, and a patchwork of quarantine policies. As economic activity rebounds, demand for oil and gasoline has outpaced available supply, putting upward pressure on gasoline and energy bills. What’s needed is more supply – and policies that bring reliable, American-made energy to consumers.

FUN FACTS

Coal Doesn’t Seem to Be Fading Quite Yet: Coal prices are up, exports are up and prices for rare earth metals have achieved stratospheric heights, especially elements and metals necessary for batteries (i.e rhodium from $640 an ounce five years ago to $21,900 an ounce this year; lithium prices rose 11% to $10,000 per ton). (h/t American Energy Society)

IN THE NEWS

Haaland Supports Mining on Fed Lands for Critical Minerals – Interior Secretary Deb Haaland offered support for domestic mining of critical minerals to bring home the supply chain of electric vehicle parts at the Western Governors Association meeting in San Diego late last week.  Haaland said “it's absolutely imperative that if we're looking for a way forward that we can do it here in this country.” Critical minerals needed for EV and energy storage parts are largely sourced in countries with dubious human rights records, such as China and the Democratic Republic of the Congo. As clean up, the Interior Department stressed that any domestic extractions should be done with thorough community engagement and “the highest environmental, labor, and sustainability standards.”

Clean Energy Business Leader Call for Smart Investments – More than 700 leaders in the clean energy industry wrote to Senate leadership urging them to support “smart investments” in clean energy and energy efficiency.  In particular, the letter calls on Congress to create good-paying manufacturing and construction jobs in the clean energy sector as the country recovers from the coronavirus pandemic. “Hundreds of thousands of clean energy jobs are at stake,” the letter says. “Our nation’s workers, and our climate, cannot afford the cost of inaction.” The leaders signing the missive included Lisa Jacobson, president of the Business Council for Sustainable Energy; Lynn Abramson, president of the Clean Energy Business Network; solar expert Scott Sklar and E2’s Bob Keefe.

CEN Release Climate, Energy Polling – The Conservative Energy Network (CEN), a coalition of 21 state-based conservative clean energy organizations, today released the results of its 6^th annual national survey. The survey was conducted online by Glen Bolger of Public Opinion Strategies from November 18-21, 2021, and polled 1,000 likely voters across the nation.  Respondents answered questions about clean energy, competition, and related policy issues. The survey results demonstrate strong support among all voting demographics for action that will lead to clean energy and climate solutions. The survey found that a majority of voters disapprove of the job that Joe Biden is doing as President and believe that the country is on the wrong track. Voters are currently split between choosing a generic Republican or Democratic candidate for Congress, making it clear that control of Congress in 2022 will be determined by the 18% of voters who are undecided. The survey results found that 73% of all voters would be more likely to support a Republican candidate who embraces new technologies and innovation in addressing climate change and clean energy issues. It should be noted that 75% of voters, including 59% of Republicans, support the recently passed bipartisan infrastructure framework legislation. The entirety of the poll findings may be found here. To provide additional context to the results, CEN will host a webinar on Wednesday, December 15, at 1:00 p.m. with Mark Pischea and pollster Glen Bolger.

Report: Offshore Wind Could Generate $4.5 B – The American Clean Power Association (ACP) released a report showing that expanded offshore wind leasing in the United States could generate up to $4.5 billion in new federal revenue, create up to 128,000 jobs during construction of the projects and spark $120 billion in clean energy investments.  ACP conducted its analysis following an October announcement from the Bureau of Ocean Energy Management (BOEM) to schedule seven new lease auctions by 2025, including the New York Bight, Northern and Central California, Carolina Long Bay, Oregon, the Gulf of Mexico, the Gulf of Maine, and the Central Atlantic. The study estimates BOEM revenue and economic impacts from execution of BOEM’s Offshore Wind Leasing Path Forward 2021-2025 roadmap. ACP estimates that leases sold at these auctions will support between 23GWs and 40GWs of new offshore wind projects.  The construction of these projects would be expected to support between 73,000 and 128,000 jobs, and an additional 28,000 to 48,000 jobs in operations and maintenance roles, in the supply chain, and in surrounding communities for the life of the projects.  The report shows that lease auctions will open more areas for development to help meet demand for individual states that have set offshore wind procurement targets, meet the federal goal of deploying 30GWs of offshore wind by 2030, and provide regulatory certainty that will spark supply chain investments and clean energy job growth.

Electric Companies Join Together to Form National Electric Highway Coalition – The Edison Electric Institute (EEI) today announced the formation of the National Electric Highway Coalition, which merges the Electric Highway Coalition and the Midwest Electric Vehicle Charging Infrastructure Collaboration and now includes additional participating electric companies from across the country. Currently consisting of 51 investor-owned electric companies, one electric cooperative, and the Tennessee Valley Authority, the coalition is committed to providing electric vehicle (EV) fast charging ports that will allow the public to drive EVs with confidence along major U.S. travel corridors by the end of 2023. More information about the National Electric Highway Coalition and a full list of participating electric companies can be found on the coalition’s webpage.

Mixed Bag RVOs Released…Finally – EPA has issued a proposal to reduce the 2020 volumes/percentage standards (which were final in late 2019) and to establish obligations for 2021-2022

The 2020 proposal is based on the actual volume of biofuels consumed in the U.S. For 2021, EPA is following a similar approach to what it did in 2014 and 2015 when it missed the deadlines to propose the standards – proposal a number based what has actually been used in the US so far, and projecting for the rest of the year.  2022 is higher from there.  EPA is also proposing to resolve the DC Circuit’s remand on the ACE case (2016 volumes that were remanded because the court overturned EPA’s use of the inadequate domestic supply waiver).

EPA Proposes Shutting Out SREs – EPA has also proposed to deny all of the pending SREs petition.  This of course doesn’t sit well with union refiners and others who saw a SCOTUS victory earlier this year.  EPA is taking comments on its proposal to deny all the pending small refinery exemptions (65 currently over a number of years) because there is no disproportionate economic hardship since refiners pass through their RIN costs.

Carters Joins AS ConservAmerica is pleased to announce that Republican Congressman Buddy Carter (GA-01) will join Congressman Brian Mast (FL-18) in serving as the House co-chairs of the bicameral Roosevelt Conservation Caucus (RCC). Mast has been serving in a leadership role for the RCC and will now be joined by Carter as House co-chairs of the caucus. Congressman Fred Upton of Michigan serves as the House vice-chair. The leadership team also includes Senators Lisa Murkowski of Alaska and John Thune of South Dakota, who serve as Senate co-chairs, and Senators Rob Portman of Ohio and Shelley Moore Capito of West Virginia, who serve as the Senate vice-chairs.

ON THE SCHEDULE THIS WEEK

NASEO Looks at Grid for Climate Vulnerabilities –Today at 3:00 p.m., the National Assn of State Energy Officials (NASEO) holds a webinar on preparing the electric grid for climate vulnerabilities. This webinar will feature experts on assessing risk and understanding the effects of climate change on the electric sector. Speakers from the U.S. Department of Energy, Federal Emergency Management Agency, and states will share relevant resources, strategies, and key lessons learned.  

Former Homeland Sect Addresses Energy Cyber Issues – The Atlantic Council Global Energy Center holds a public virtual event today at 4:00 p.m. featuring keynote remarks from Secretary Jeh Johnson, litigation partner at Paul, Weiss, Rifkind, Wharton, and Garrison LLP, and former US Secretary of Homeland Security. Leaders in the finance and energy industries will discuss ways for investors to better understand and address the cybersecurity risks facing their energy assets. This event will explore strategies to ensure that asset owners have a more complete understanding of the cyber risk profile of their assets and actionable solutions to mitigate those risks.

National Petroleum Council to Meet – The Energy Department hosts the 131^st meeting of the National Petroleum Council tomorrow starting at 9:00 a.m. The meeting agenda will include remarks by Energy Secretary Granholm on DOE and Administration priorities as well as a recent request for the NPC to undertake a hydrogen energy study.  A live stream of the meeting proceedings will be available to the public at this link.

Baker Forum Looks at Energy Transition – Tomorrow at 10:00 a.m., the Baker Institute at Rice University will launch an initiative that explores and seeks to understand the role of oil in the energy transition. At this kick-off event, the Institute will launch an initiative that explores and seeks to understand the role of oil in the energy transition. Tim Gould, chief energy economist and co-lead of the International Energy Agency (IEA)’s World Energy Outlook, will begin the hybrid event with a virtual presentation on the oil dimensions of the IEA’s long-term scenarios, which have been widely used to steer climate policy plans and objectives.

Forum to Look at Wall Street Carbon Issues – The Center for American Progress and the Sierra Club hold a virtual discussion tomorrow at 11:00 a.m. on Wall Street's carbon bubble," focusing on the enormous size of carbon emissions financed by the largest banks and asset managers in the United States. Speakers include SEC Commissioner Caroline Crenshaw, Rep. Rashida Tlaib and Sen. Jeff Merkley

SAFE Forum to Look at Infrastructure Law – Tomorrow at Noon, the Electrification Coalition and SAFE will host representatives from EPA, DOT and DOE to provide a breakdown of EV funding provisions contained in the Infrastructure Investment and Jobs Act and the Build Back Better Act, including programs for charging infrastructure, transit buses, school buses, light-duty vehicles, fleets, consumer tax credits and more.

ACCF Hosts Larry Summers – Tomorrow at Noon, the American Council on Capital Formation is hosting Lawrence H. Summers, former Secretary of Treasury. With the most important Federal Reserve Board meeting in recent memory on Tuesday and Wednesday, the webinar with Larry Summers tomorrow could not be more timely.  Summers kicked off the ACCF webinar series some 20 months ago on April 9, 2020. Dr. Summers is one of the most influential economists driving the debate on the appropriate economic policy today. This will be an opportunity to discuss our economy since we last gathered, today’s challenges and what we can do to have shared economic prosperity in the future.

Forum to Look at Net Zero Innovations – Third Way and the University of Michigan’s College of Engineering hold their the second installment of our Fastest Path to Zero Virtual Series tomorrow at 12:00 noon.  The event will feature members of Congress, leading energy and innovation scholars, policy experts, and journalists who will discuss their takeaways from COP26 and their perspective on the future of US clean energy innovation. Speakers will include Rep. Don Beyer (VA-08) as well as panelists Akshat Rathi of Bloomberg News, Columbia Climate School Dean Jason Bordoff, RMI’s Sarah Ladislaw and others. 

WCEE Event Looks at Events – Tomorrow at 4:00 p.m., the Women’s Council on Energy & the Environment holds its virtual meet and greet happy hour and “speed networking” event. The event will also look at WCEE events in 2021 and their plans for 2022.

Senate Banking Looks at Disaster Recovery Grants – The Senate Banking Committee holds a hearing Wednesday at 10:00 a.m. on disaster recovery assistance and authorization of the community development block grants.

BPC Focuses on Europe, ESG – The Bipartisan Policy Center holds a discussion on Wednesday at 10:00 a.m. on Europe’s focus on ESG and its impacts on the US.  Tom Quaadman of the US Chamber of Commerce is among the speakers. 

WRI Forum Looks at Climate Investments – The World Resources Institute holds a virtual discussion Wednesday at 11:00 a.m. on the economic and jobs benefits of climate smart investments.  The event starts with a conversation with Sen. Ron Wyden.  Other speakers will include WRI’s Dan Lashof, Ugbaad Kosar of Carbon180, Princeton’s Jesse Jenkins and ZETA’s Joe Britton.

USEA Holds Presser on Infrastructure – The US Energy Assn will hold a media briefing on Wednesday at 11:00 a.m. to discuss the green provisions of the infrastructure package. USEA has assembled a panel of utility experts to talk about when and how the funds will be disbursed. They will be questioned by a panel of knowledgeable reporters. Among the Speakers will be NYPA interim CEO Justin Driscoll and EPRI’s Katie Jereza, while questioners will include Utility Dive’s Robert Walton, S&P Global’s Ellie Potter,

Jeff Beattie of the Energy Daily and Ken Silverstein of Forbes.

Forum to Look at Advanced NRC Reviews – On Wednesday at Noon, the Nuclear Innovation Alliance holds a webinar, on promoting efficient NRC advanced reactor licensing reviews to enable rapid decarbonization. Speakers include former NRC Chairman Stephen Burns.

ACORE Holds Annual Meeting – The American Council on Renewable Energy (ACORE) is hosting its Annual Member Meeting on Wednesday at 12:00 p.m. to 1:30 p.m. looking at ACORE's activities in 2021 and its key focus areas in 2022.

CEN Webinar Focuses on Recent Polling – The Conservative Energy Network (CEN), a coalition of 21 state-based conservative clean energy organizations, will hold a webinar on Wednesday at 1:00 p.m. to discuss the results of its 6^th annual national survey. The survey was conducted online by Glen Bolger of Public Opinion Strategies from November 18-21, 2021, and polled 1,000 likely voters across the nation.  CEN President & CEO Mark Pischea and Bolger will dive into the numbers, break down the data, and explore what these results mean for conservatives and future energy policy.

Forum to Look at Alaska – On Wednesday at 1:00 p.m., the Alaskan Municipal League and the American Security Project hold a discussion on the impacts climate change is having in Alaska, the ramifications it has on U.S. national security, and potential regional solutions. Executive Director of the Alaskan Municipal League Nils Andreassen will be joined by ASP President Brigadier General Stephen Cheney, USMC (Ret) for a one-on-one conversation.

Forum to Look at Electric Buses – On Wednesday at 1:00 p.m., the Greater Washington Region Clean Cities Coalition (GWRCCC) is sponsoring a panel discussion on electric school buses for Washington, DC. State Board of Education President Zachary Parker and Barry Benesch of the K. Neal Truck & Bus Center are among the speakers.

Forum to Talk Renewables – On Wednesday at 1:30 p.m., EnergyCentral is hosting a panel discussion on re-thinking residential EE programs.  It will feature a panel discussion with Eversource Energy, AVANGRID & Hancock Softwares.

NASEO Looks at DOE Buildings Program – NASEO will hold an overview Wednesday at 2:00 p.m. of the DOE’s Advanced Building Construction (ABC) Initiative to accelerate the decarbonization of the U.S. buildings sector with industrialized construction innovations that deliver efficient, affordable, and appealing new buildings and retrofits at scale.  Speakers from NYSERDA and RMI will highlight ABC concepts into practice for multifamily retrofits, and discuss potential resources available to help State Energy Offices develop local markets for ABC retrofits. 

Forum Looks at Finding Climate Common Ground – The American Conservation Coalition and Dream Corps Green for All will hold a discussion on Wednesday at 3:00 p.m. looking for common ground on climate legislation.  The event will feature a discussion with Reps. Don Bacon and Abigail Spanberger.

FERC Open Meeting – On Thursday at 10:00 a.m., FERC holds its monthly Open Meeting with the full complement of commissioners.  Webcast is HERE

Forum to Look at Grid Integration for Renewables – The NYU Institute for Policy Integrity and EDF will host a conversation on Thursday at 10:30 a.m. looking at conflicts and consensus building around energy policy decisions and infrastructure projects, including solar and wind projects, pipelines, and transmission lines. Panelists from around the country will share their recent research and policy expertise.

Forum to Look at China, Climate Goals – On Thursday at 11:00 a.m. CSIS holds a forum on China and its climate goals.  CSIS’s Trustee Chair in Chinese Business and Economics will lead the discussion with four panelists who will examine these questions from the economic, political and diplomatic perspectives: Michael Davidson of the University of California, San Diego, Michal Meidan of the Oxford Institute for Energy Studies, Byford Tsang of E3G, and Alex Wang of the School of Law at UCLA.

Forum to Look at Decarb Constraints – The Columbia Center on Global Energy Policy will host a panel on Thursday at Noon to investigate the challenge of financing decarbonization and the SDGs more broadly in the shadow of the pandemic and growing fiscal constraints, with special attention to Beijing's role as a creditor and development partner for low-income and middle-income countries. This event is the first in a series of dialogues, convened by the Center on Global Energy Policy at Columbia-SIPA and the Oxford University China-Africa Network (OUCAN) that focuses on China's role in the political economies of African and Latin American states. The dialogues bring together scholars, policymakers and civil society voices from across the world to reflect on how growing indebtedness, (potential) energy transitions and industrial policy are linked and what role China plays in impacting these connections.

House Admin Looks at Preserving Key Collections from Climate Impacts – The House Administration Committee holds a hearing on Thursday at 12:30 p.m. to provide oversight of the Smithsonian Institution and focus on protecting Smithsonian facilities and collections against climate change.

Berkeley Lab Report to Highlight Equity, Decarb – On Thursday at 12:30 p.m., there is a Forum on a new report from Lawrence Berkeley National Laboratory (Berkeley Lab), Advancing Equity in Utility Regulation that provides four cutting-edge perspectives. The authors propose a variety of approaches to address inequities in the electricity sector. Their recommendations address stakeholder engagement, defining "public interest," intervenor funding, electricity infrastructure siting, access to distributed energy technologies, consumer protections, bill affordability programs, rate design, program design, and metrics to track and evaluate results of policies, regulations, and programs intended to deliver equitable outcomes.

Nelson Headlines Chamber Space Forum – The U.S. Chamber holds its 4^th annual Space Summit on Thursday at 1:00 p.m. focused on expanding commercial and civil space partnerships.  Held in partnership with The Boeing Company, the summit welcomes public and private sector leaders for discussions on international collaboration and public-private partnerships in space, the future of exploration beyond the ISS, space as an economic frontier, and updates from the Artemis launch.

Forum to Look at India, Energy Storage – The Center for Strategic and International Studies, the Association of Renewable Energy Agencies of States (AREAS) and the National Association of State Energy Officials (NASEO) hold a workshop on Friday at 8:30 a.m. to look at state policy and program strategies on energy storage and clean energy integration.  This workshop is promoting knowledge exchange among U.S. and Indian subnational energy policymakers.

IN THE FUTURE

Forum to Look at Building Collapse – The Environmental Law Institute holds a forum next Monday at Noon on the collapse of the Champlain Towers South Condominium Complex in Surfside, Florida questions raised about climate change and how environmental impacts may cause structural damage to coastal buildings. Expert panelists will hold in-depth exploration of the risks to coastal communities and buildings from the climate crisis and an analysis of the collapse that occurred in Surfside, Florida.

State of American Business Set – The US Chamber hosts its annual 2022 State of American Business on Tuesday January 11^th. 

API Hosts State of Energy – The American Petroleum Institute and Energy Citizens hosts its 13^th annual 2022 State of Energy forum on Wednesday January 12^th at 10:00 a.m.  The event will shine a light on the role of American energy in building a better future. In a virtual setting, they will discuss the actions and initiatives the U.S. natural gas and oil industry is taking to protect American jobs, maintain our energy security and keep us globally competitive.

AGA to Release Net Zero Vision – On Thursday January 13^th, the American Gas Assn will holds its annual new Chair briefing where they will roll out a major new Net Zero vision and policy.  

USEA Hosts State of Energy Industry – The US Energy Assn holds its 2022 State of the Energy Industry Forum on Thursday January 20^th.  The annual event features CEOs from nearly every major trade association as they share their policy objectives and priorities for 2022.