Energy Update: Week of February 20th

Friends,

Hope you had a great President’s Day…You know what that means: Spring Training is underway. Only 35 days to opening day. And the Florida rain bumped the Daytona 500 to yesterday where there was a big crash with 8 laps to go and one right at the finish that gave Hendrick Motorsports the win with William Byron taking the checked flag.

While Congress is gone this week, there are two MAJOR events this week:

Energy Sect Granholm to Address Press Club – TOMORROW at 10:00 a.m., Energy Secretary Jennifer Granholm will join the National Press Club members for coffee conversation in the Club’s Holeman Lounge. Granholm will discuss the Biden administration's industrial strategy for the clean energy transition and outline how this strategy is driving a boom in American manufacturing, creating green jobs, fueling economic growth, and helping the US lead the world toward a clean energy future. Expect some questions from Press President Emily Wilkins (of CNBC) on the LNG pause. THIS IS A MUST ATTEND!!!!

Sustainable Energy Factbook Set for Release – The 12^th edition of the Sustainable Energy in America Factbook, produced by BloombergNEF and the Business Council for Sustainable Energy, will be the subject of embargoed briefing TODAY at 2:00 p.m. The FACTBOOK will be released on Wednesday and available to download for free at www.bcse.org/factbook. Designed for a broad audience – from energy professionals to public policymakers – the Factbook offers an insightful and in-depth look at economic, market, and investment dynamics and technology trends. Experts from the BCSE, its members and BloombergNEF will hold special briefing on the 2024 Factbook findings. Please register here to participate. Details on logistics will be provided.

One other event TODAY at 12:30 p.m.: New EEI head Dan Brouillette and members of EEI’s executive team will brief Wall Street analysts, bankers, investors and other industry stakeholders on the state of the U.S. electric power industry. You can access the livestream here.

ICYMI, late Friday, there was a spin up from our friend Jared Renshaw at Reuters on ethanol-to-jet SAF where Admin sources - but WH comms downplayed/denied - (we might have seen this movie before) told him that for the upcoming SAF life-cycle decision, the EPA and USDA may tweak some of the provisions of GREET to incentivize more climate-smart ag initiatives.  This is probably somewhat in line white what we already expected as the Administration tries to move SAF production forward more quickly while still assuaging climate activists pressing them on nearly every issue this election year. It is all targeting toward an already planned keynote event on March 1^st at Commodity Classic in Houston where USDA secretary Vilsack and EPA head Michael Regan make a joint appearance (coincidentally also the day of any expected E-t-J SAF announcement on modeling details).  The story and issue have also created some buzz and been great fodder for discussions at this week's National Ethanol Conference in San Diego which kicked off over the long holiday weekend and runs through Wednesday. So, look for more and mark your calendar for March 1st as we barrel toward the Vilsack/Regan event in Houston.

And finally, sounds like the White House is looking for a backdoor out of its heavy push from EVs under pressure from consumers, the UAW members (which endorsed him recently) and the politically-powerful dealers around the country. Our friend Coral Davenport of the NYT says the EPA intends to relax limits on tailpipe emissions that are designed to get Americans to switch from gas-powered cars to electric vehicles.

CPAC kicks off this week on Wednesday, while we don’t usually get a lot of energy on the frontburner, there will be a session on Thursday afternoon with Andy Wheeler where we might hear a bit about the Biden “war” on energy, gas stoves, etc… Stay tuned. Call with questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932                                                                                                                          

FRANKLY SPOKEN      

““it’s been very important for liquefied natural gas to replace the natural gas Russia was sending to Europe. It's important for us to have the benefit of selling that natural gas versus other countries like Qatar. One of the United States’ massive strategic strengths is our energy – our clean energy and our fossil fuels. That's a short-sighted decision,”

Sen. Michael Bennet on Fox News Sunday yesterday on the Biden LNG decision.

“Many [manufacturers] don’t know their supply chain and often the [suppliers] are changing about three or four times a year, based on the contracts which, especially in the mid-tier section, are changing based on lower cost. We take the information we know about that nickel and we create a digital replica of it. Where was it mined? What was its geolocation? What was its weight? What was the elapsed time in terms of processing? Then all of that information that we gather – at every step along the journey about that same piece of nickel – we can tie to that VIN or that QR code.”

Ellen Carey, chief external affairs officer at Circulor, which specializes in supply chain visibility and creates battery passports in an AutoCar article on our Battery Passport solutions.

ON THE PODCAST

Gramlich Looks at Transmission Planning – On the Energy Central podcast Power Perspectives, Rob Gramlich walks podcast host Jason Price and producer Matt Chester through the critical role of transmission planning and the impending FERC Order titled "Building for the Future Through Electric Regional Transmission Planning and Cost Allocation." Rob Gramlich, with his wealth of experience as a former advisor to FERC Chairman Pat Wood during the Bush Administration, offers profound insights into the evolving power demand, the implications of FERC's proposed rule on regional transmission planning and more. Listen in as he digs through the intricacies of grid policy and the promising advancements shaping the grid's future.

Volts Chats Transmission with Casten, Levin – Speaking of transmission and permitting, In this episode of the Volts podcast, Dave Roberts hosts Reps. Sean Casten (D-Ill.) and Mike Levin (D-Calif.) to discuss their Clean Electricity and Transmission Acceleration Act, explaining where Democrats have found consensus around transmission permitting and community engagement. CETA would implement a number of changes that clean-energy reformers have long sought. It would empower FERC to force utilities to do more and better interregional transmission planning, to take carbon into account when setting rates, to implement performance-based ratemaking, and to consider the use of grid-enhancing technologies.

FUN OPINIONS

McNally: Climate Politics Neuters an Energy Watchdog – In an opinion piece in The Wall Street Journal, former NSC Official and energy expert Bob McNally writes the International Energy Agency once provided solid information, but now its reports can no longer be trusted. McNally says IEA has succumbed to politicization and strayed from its security mission. In 2020 the IEA bowed to enormous pressure from climate activists and ceased publication of oil and gas demand forecasts that didn’t show demand for those fuels would soon peak because of imaginary future climate policies. Green groups had been angry over IEA baseline forecasts showing what the activists regarded as too much oil and gas demand. This was because these baseline forecasts assumed only the laws currently on the books and didn’t engage in conjecture about future green policies. As a result, IEA’s influential demand forecasts now reflect wishful thinking about the timing and cost of a peak in oil and gas consumption. “With energy risks and challenges aplenty, all IEA members must restore the agency’s credibility and walk it back to its vital security mission.”

ACP Challenges CSIS Expert Report Looks at Critical Questions – In a column in USA Today, American’s Clean Power expert John Hensley writes wind and solar are reliable in extreme weather, despite what the critics say.  While weather-related blackouts grab the headlines, what's less noticed is how wind and solar are increasingly providing reliable power day in and day out, across the country.

FROG BLOG

Chamber Hits DOE on LNG Pause – In a blog post, Chamber Policy VP Dan Byers writes DOE is in LNG 'Demand Denial' by downplaying future demand in Europe and Asia to justify its decision to freeze liquified natural gas (LNG) exports. Byers blasted DepSec David Turk for repeatedly dismissing concerns that U.S. allies could face supply shortfalls, pointing to three International Energy Agency (IEA) modeling scenarios projecting future declines in global gas demand. Byers says justifying the policy on the basis of dubious outlier IEA modeling while ignoring much stronger evidence to the contrary adds insult to injury. To better understand the need for expanded U.S. LNG capacity, DOE ought to begin with a look under its own nose at EIA’s natural gas demand outlooks.

Battery Passport Launches in EU – Yesterday marks the official application of the EU Battery Regulation, Circulor CEO Doug Johnson-Poensgen wrote in a blog post why manufacturers need to start deploying material traceability within their supply chains today. Early adoption not only offers a competitive advantage but also enables manufacturers to influence industry standards and raise their leadership profile. By prioritizing supply chain visibility and material traceability, these companies can navigate the evolving regulatory landscape with confidence and work toward a more resilient future.

FUN FACTS

NatGas Demand Productivity Increasing:  E&P and midstream innovations in unconventional shale plays have increased productivity substantially (aka fewer rigs but more hydrocarbons). Insert below: A comparison of rig count vs O&G production rates, by basin (Permian, Bakken and Eagle Ford) as a function of total operating rigs, drilling productivity, completion rates, well productivity, and type curves.

IN THE NEWS

Bipartisan Members Urge Admins to Support SAF GREET Life Cycle – Forty-three bipartisan House/Senate signers wrote to the Biden Administration’s Sustainable Aviation Fuels Lifecycle Analysis Interagency Working Group today urging a timely finalization of the Department of Energy’s update of the Greenhouse Gases, Regulated Emissions and Energy Use in Technologies (GREET) modeling for the sustainable aviation fuel (SAF) market. The letter aims to ensure that biofuels are appropriately utilized in future efforts to decarbonize the aviation industry. The members wrote to the Biden Administration’s SAF Lifecycle Analysis Interagency Working Group, urging a timely finalization of DOE’s update of the Greenhouse Gases, Regulated Emissions and Energy Use in Technologies (GREET) modeling for the sustainable aviation fuel (SAF) market.

“Biofuels drive economic growth, create good-paying manufacturing jobs and strengthen economies across rural America. As you continue to develop a model to determine eligibility, we ask that you take measures to permit every participant in the SAF lifecycle to appropriately participate in the carbon reduction process.” 

The letter was co-led by U.S. Senators Amy Klobuchar (D-MN), John Thune (R-SD) and Tammy Duckworth (D-IL), and Reps. Angie Craig, Mark Pocan (D-WI), Dusty Johnson (R-SD) and Adrian Smith (R-NE).

DOE Launches Building Initiative – DOE has launched the American-Made Building Envelope Innovation Prize—Secondary Glazing Systems, which will offer up to $2 million to encourage production of high-performance, cost-effective secondary glazing systems to improve efficiency of commercial windows. Sponsored by DOE’s Building Technologies Office (BTO), the inaugural Building Envelope Innovation Prize targets novel solutions for commercial window upgrades to enable equitable decarbonization and optimize building envelopes for electrification. Secondary glazing involves installing an additional windowpane on an existing window to improve insulation.

NC Provides Siemens Job Growth Grant – NC Gov. Roy Cooper said a Job Development Investment Grant (JDIG) for Siemens Energy Inc. to support expanding its existing manufacturing facility in Charlotte, North Carolina to produce large power transformers. The project is expected to create up to 475 direct operating jobs and 285 construction jobs in Charlotte and an additional eighty-four jobs for our Raleigh location. Siemens Energy’s presence in Charlotte dates back to 1969. Approximately 1,250 Siemens Energy employees work in that location at present. In the current proposal, 53,800 square feet of existing floor space at the facility will be repurposed in conjunction with construction of an 86,100 square foot expansion to manufacture the transformers. With power transformer factories throughout the world, Siemens Energy is a global leader in the manufacturing of large power transformers. Large power transformers increase or decrease electrical voltage for use in different applications. They enable the transmission of electricity over long distances, stabilize electrical transmission across regions and are a key component of expanding existing grid infrastructure.

ON THE SCHEDULE THIS WEEK

SCOTUS to Hear Pollution Case on Feb 21 – The Supreme Court heard arguments this morning over whether to stay EPA’s "good neighbor" rule. The court ordered an hour of arguments in EPA v Ohio over the requests from red states and industry to block the rule, which targets interstate pollution that forms smog and is already effectively blocked in a dozen states due to litigation.

National Ethanol Conference Set for San Diego – The Renewable Fuels Assn holds its annual National Ethanol Conference in San Diego. Political guru Charlie Cook will be the main Luncheon speaker. Gevo expert Paul Bloom, LanzaJet CEO Jimmy Samartzis and API’s Lance West join RFA’s Geoff Cooper as speakers.

EEI to Make Investors Presentation in NYC – Today at 12:30 p.m., EEI President and CEO Dan Brouillette and members of EEI’s executive team will brief Wall Street analysts, bankers, investors, and other industry stakeholders on the state of the U.S. electric power industry. During the presentation, EEI's executive team will discuss industry priorities including clean energy and environmental, social, and governance considerations; customer affordability; industry financial health; policy and regulatory implementation; preparation for increased electrification; resilience and grid security; siting and permitting reform; storm response and wildfire mitigation; and workforce development.

Houston Energy Conference Set – The 6^th Global Energy Forum 2024 will be held today and tomorrow at the Petroleum Club of Houston, TX. The Honorable Vitalii Tarasiuk, Consul General of Ukraine will be a featured speaker while Gevo CEO Patrick Gruber will also highlight the latest on the sustainable aviation fuel (SAF) market. The Global Energy Forum brings Members of U.S. Congress from both sides of the aisle together with top energy executives to convene for off-the-record discussions in order to explore in-depth the energy strategies and solutions for a sustainable, clean, reliable and affordable energy future. Policymakers and executives from energy, finance, and technology will engage at the 6th Global Energy Forum 2024 for a dialogue on energy infrastructure, technological innovation, policy and regulation reform needed to respond to the global energy crisis.

Forum Looks at Banking, Climate Risks – The Peterson Institute for International Economics holds a virtual discussion Wednesday at 9:00 a.m. on how prudent banking policy can respond to climate change risks.

Energy Sect Granholm to Address Press Club – On Wednesday at 10:00 a.m., Energy Secretary Jennifer Granholm will join the National Press Club members for coffee conversation in the Club’s Holeman Lounge. Granholm will discuss the Biden administration's industrial strategy for the clean energy transition and outline how this strategy is driving a boom in American manufacturing, creating green jobs, fueling economic growth, and helping the US lead the world toward a clean energy future.

Forum Looks at Arctic Challenges – Tomorrow at 11:00 a.m., the Royal Norwegian Embassy and the Wilson Center's Polar Institute, will hold a forum to explore the crucial legal aspects of subsea infrastructure development in the Arctic. This event, featuring esteemed expert in international law and member of the UN International Law Commission Ambassador Rolf Einar Fife, will offer an insightful examination of the challenges and opportunities within the dynamic subsea landscape of the Arctic.

POLITICO Governors Summit Set – On Wednesday at the Business Roundtable, POLITICO holds a Governors Summit to dive into how Governors are wielding immense power. While Washington remains gridlocked, governors are at the center of landmark decisions in AI and tech, economic development, infrastructure, housing, reproductive health and energy. POLITICO will interview America’s governors and discuss the defining issues of the day. Speakers include Govs. Brian Kemp (GA), Kathy Hochul (NY) Jared Polis (CO), Chris Sununu (NH), Bill Lee (TN) and Kevin Stitt (OK).

Forum Looks at Utility Cybersecurity – The US Energy Assn holds a webinar on Wednesday at 11:00 a.m. to look at defensible architecture and asset management for electric utility cybersecurity. This webinar covers best practices for utilities when developing defensible architecture and conducting asset management. The webinar will address the difference between planning for security during new deployment (e.g., integrating a distributed energy resources management system) vs. reviewing and improving existing ICT networks as well as network and access control - network configuration, onboarding and offboarding third party suppliers for on-premises software/hardware.

FP holds Climate Discussion – Foreign Policy holds a virtual discussion Wednesday at 12:30 p.m. on ensuring climate policies have impact at scale.  The event is part of its "The Promise and Pitfalls of Climate Policy" series. MIT’s Kerry Emmanual will be part of the discussion.

E&E News Reporters Look at Transmission Challenges – E&E reporters Peter Behr, Zachary Bright, Joel Kirkland and Jeffrey Tomich hold a briefing on Wednesday at 1:00 p.m. to discuss the latest factors halting transmission projects and expectations that lawmakers and regulators can make progress in tackling these challenges in 2024. To meet ambitious climate goals, the U.S. will need to address transmission capacity and an aging grid infrastructure. There are billions of dollars committed to upgrading the grid and building out transmission networks, but permitting challenges and legal battles threaten to prolong any infrastructure build-out even further.

Sustainable Energy Factbook Set for Release – The 12^th edition of the Sustainable Energy in America Factbook, produced by BloombergNEF and the Business Council for Sustainable Energy, will be released on Tuesday at 2:00 p.m. and available to download for free at bcse.org/factbook on Wednesday. Designed for a broad audience – from energy professionals to public policymakers – the Factbook offers an insightful and in-depth look at economic, market, and investment dynamics and technology trends. Experts from the BCSE, its members and BloombergNEF will hold special briefing on the 2024 Factbook findings.

New PA Decarb Report to Be Released – The Ohio River Valley Institute, Pennsylvania Department of Environmental Protection and Strategen Consulting will hold a webinar on Thursday at 3:00 p.m. looking at new report on decarbonization in PA where panelists will delve into the analysis. Panelists include PA DEP’s Louie Krak, Ohio River Valley Institute head Joanne Kilgour and Joe Goodenbery of Strategen.

Forum Focuses on Russia Influence – The Center for the National Interest hosts the first in a monthly series of seminars organized by the Center’s Central Asia Connectivity Project on Thursday at 3:00 p.m. on Russia's changing profile and influence in Central Asia. Focusing on empirical evidence, this discussion will seek to illuminate how the Central Asian states and peoples pursue their interests under new circumstances. Speakers include Gavin Helf of the U.S. Institute of Peace, Harvard’s Dana Masalimova and Goerge Mason’s Eric McGlinchey.

IN THE FUTURE

Whitehouse Headlines Brookings Forum – On Tuesday February 27^th at 1:00 p.m., the Hamilton Project at the Brookings Institution will convene leaders and experts to discuss the future of climate policy through tax reform. The event will feature a fireside chat between Senate Budget Committee Chairman Sheldon Whitehouse (D-R.I.) and Richard Rubin of the Wall Street Journal. The event will also feature Kimberly Clausing (University of California Los Angeles), Wendy Edelberg (Brookings Institution), Shuting Pomerleau (Niskanen Center), James Stock (Harvard University), and Sanjay Patnaik (Brookings Institution).

Forum to Celebrate Black Energy Leaders – On Tuesday February 27^th at 5:30 p.m. to end Black History Month, the Center on Global Energy Policy at Columbia SIPA and Community Offshore Wind will celebrate the achievements of Black pioneers and leaders in the energy field with an event at Emmanuel Baptist Church in Brooklyn. The event will explore their historical legacy and the breadth of their progress, engaging in discussions on vital topics such as energy justice, racial equity in climate policies, and improving living conditions in underserved communities. Moreover, we'll brainstorm solutions to ensure that future leaders have the awareness and access to educational opportunities necessary to drive progress in the energy sector.

Regan Vilsack Set to Attend Commodity Classic – The 2024 Commodity Classic will be held February 28 – March 2 at the George R. Brown Convention Center in Houston, Texas. Commodity Classic is unlike any other event in agriculture because it’s created by farmers, for farmers. One Keynote session on Thursday March 1^st will feature USDA Secretary Tom Vilsack and EPA head Michael Regan to discuss the lifecycle 9mpact of Sustainable Aviation Fuel (SAF).

Casten, Clements Headline ACP Transmission Breakfast – America’s Clean Power holds a forum on February 28^th at the JW Marriott on transmission and grid reliability. The conversation will focus on the key ideas in Congress and the prospect of Congressional action to enhance grid reliability with speakers Rep. Sean Casten and FERC Commissioner Allison Clements. There will also be a panel of State PUC commissioners.

Chamber Holds Women’s Forum – U.S. Chamber of Commerce Foundation holds its 14^th Annual International Women’s Day Forum is on Wednesday, February 28^th. Speakers will offer dynamic insights underscoring the many ways continued investments in women and girls strengthen society and empower bright futures, whether here in the United States or abroad, in homes and classrooms or in workplaces.

BOEM Klein to Headline ACORE Forum – The 2024 ACORE Policy Forum will be held in Washington, D.C. on February 28^th and 29^th. Liz Klein, Director of the Bureau of Ocean Energy Management (BOEM) will give keynote remarks. Experts will discuss breaking issues such as defending the IRA, increasing clean energy investment, securing the supply chain, and more.

Forum to Look at Methane Landfills – On Thursday February 29^th at 10:00 a.m., RMI and Clean Air Task Force will give a live demo of the Waste Methane Assessment Platform (WasteMAP) — a new platform that merges data and decision support tools for policymakers, landfill operators, and other stakeholders. The webinar features opening remarks by Carolina Urmeneta, Waste and Circular Economy Program Director for the Global Methane Hub, who will discuss the importance of reducing methane emissions from the waste sector.

Forum Looks at Energy Equity in India – On Friday March 1^st, the India Program at the Center on Global Energy Policy (CGEP) at Columbia SIPA, the Ambedkar Initiative at the Institute for Comparative Literature & Society, the SIPA Diversity, Equity, Inclusion, Climate & Engagement (DEICE) Committee, Columbia Climate School, and South Asia Institute hold a forum on resource extraction and energy equity, an event where panelists will explore the current situation in India, what policies are being proposed, and the future of marginalized coal-communities. This event is the latest installment of a series examining social and economic justice issues related to climate change and the energy transition in India. This session will feature two experts whose research and reporting in the coal heartlands of Jharkhand and Chhattisgarh bring attention to the importance of bottom-up engagement in shaping just transitions. Scholar Dr. Vasudha Chhotray and award-winning journalist Ankur Paliwal will be in a conversation moderated by Dr. Kaushik Deb, senior research scholar and the lead of the India Program at CGEP.

RMI to Look at SAF – On Thursday March 7^th at 11:00 a.m., RMI will hold a webinar to explore the federal and state policy landscape around Sustainable aviation fuel (SAF), as well as the path forward for Targeted Opportunity Regions — select regions that have relevant industrial networks and significant scaling opportunities. SAF is the only scalable tool to decarbonize aviation right now, which is why the US government is taking action to incentivize production and deployment. The webinar features opening remarks by Maria Martinez, Director, US Policy and Advocacy at Breakthrough Energy. Then there will be a short presentation by RMI experts and authors, Alex Piper, Aamir Shams, Corey Stewart, and Joey Cathcart who share their key learnings and recommendations from advising SAF projects as well as the opportunities for regions in the United States to accelerate their economic growth.

Aspen Climate Event Set for Miami – The Aspen Institute is enlisting global and local policymakers, scientific experts, corporate leaders, inventors and innovators, artists, young leaders, influencers, and engaged members of the public to participate in Aspen Ideas: Climate 2024, a multi-day event on March 11–13^th in Miami.  The event will feature main stages both in and outdoors, breakout and roundtable sessions, tours of local and historic resilience points of interest, as well as fashion, food, art, and music activities. Aspen Ideas: Climate is designed to offer the public a chance to interact, learn, and collaborate with thinkers and do-ers whose actions are critical to addressing our collective future around the realities of a changing climate.

RFF to Look at Critical Minerals – Resources for the Future (RFF) holds a forum on Tuesday March 12^th on critical minerals, EVs and the Role of Innovation. In this webinar, we will present some of the challenges associated with critical mineral markets and how these connect to broader EV adoption. Then a panel of experts will discuss the role that technological innovation could play in mitigating the challenges caused by growing EV demand; potential limits to innovation; and policies that can help support innovation and make critical mineral markets more resilient. Speakers Include DOE’s Diana Bauer, GM’s Michael Maten and Rod Eggert of the CO School of Mines

ACEEE to hold Water, Heating Forum – On Tuesday to Thursday March 12^th to 14^th in Atlanta, ACEEE hosts its 2024 Hot Water Forum & Hot Air Forum. The event brings together two premier technical conferences — one on the efficient use of hot water and one that focuses on heat pumps. Both conferences will explore how these industries can reduce greenhouse gas emissions, improve grid resilience, and center equity. Stacey Abrams, DOE’s Kathleen Hogan, AO Smith’s Josh Greene and RMI’s Leah Louis-Prescott will be among the experts at the conference.

Ex-Im Bank Head to Address SAFE Summit – The SAFE Summit 2024 is set for March 12^th and 13^th in DC. The program will examine how geopolitical power dynamics are shifting and offer a compelling strategy—a systems approach to addressing energy security, climate change, supply chain deficiencies, a dwindling industrial base, and growing geopolitical tension—to reconfigure the foundational pieces that will enable a new global economy to thrive. Reta Jo Lewis, President and Chair of the Board of Directors of the Export-Import Bank of the US is one of the keynotes. International Seabed Authority SecGen Michael Lodge is also expected to discuss deep-sea minerals on a panel with TMC’s Gerard Baron.

CERA Week – CERA Week will be held from March 19^th to 23^rd in Houston. Get ready for the biggest energy show of the year!!!

EPSA Forum Set – On Tuesday March 26^th, the Electric Power Supply Association holds its 2024 Competitive Power Summit.  The event will feature a day of expert panels and featured speakers discussing critical issues facing competitive power and the U.S. electric system.

SEJ Set for Philadelphia – The Society of Environmental Journalists annual meeting will be held on April 3-7, hosted by the University of Pennsylvania. EPA head Michael Regan is expected to speak and the Bracewell reception will be on again Thursday night!!!