Energy Update: Week of February 26th

Friends,

Welcome to the February Leap Day Week. Yes, we will have a February 29^th this week…and I’m sure that will not be the only crazy thing that will happening this political year!!

The Senate returns today, while the House follows on Wednesday. When here, they’ll have just two days to approve a deal funding for portions of the government on deadline (including DOE) and send it on to President Biden. And they’ve yet to announce how they’re going to do it. Lots of nuances here and my colleagues lead by Liam Donovan are tracking very closely.

Today is also the deadline for 45V Hydrogen tax credit comments. As you know, this has been a wonky, but highly-touted issue over the last year in which the Administration has angered many folks including Sen. Joe Manchin (who wrote the legislation), hydrogen producers and many if the parties involved in DOE’s $7B hydrogen hub program for making the guidance much more restrictive to please environmental activists (one of a number of examples). Will be providing comments throughout the day as they are available from the Chamber, FCHEA, Plug Power and many others.

Today through Wednesday, more than 600 mayors, city council members, and other leaders from community-owned electric utilities are gathering in Washington, DC to participate in the American Public Power Association’s Legislative Rally.  And Wednesday evening, ACORE holds it annual Awards Dinner with its Policy Forum on Thursday.

Finally, Commodities Classic, a big ag conference runs this week in Houston (alongside the Houston Rodeo I might add) and while it runs all week, on Friday, Ag Secretary Vilsack and EPA Administrator Michael Regan are expected to attend and make news on Friday announcing the details of the Sustainable Aviation Fuel (SAF) lifecycle emissions accounting (a very big deal for the tax credit and perhaps more details on E15.

I mentioned last week that SAFE Summit is set for March 12 at the Westin in DC and I wanted to add that we now know that Energy Secretary Granholm will be speaking alongside Redwood Materials CEO JB Straubel, South Carolina Governor Henry McMaster, former FedEx CEO Fred Smith, Reps Rob Wittman and Kathy Castor and many more. SAFE Summit 202 will convene global decision makers to address energy and security challenges while defining a path forward on materials and Policy from the first material to the last mile.

I will be in Detroit early this week spending a few days with my brother who is fighting back against cancer. It will be interesting as Michigan votes in its primary tomorrow (I suspect that will be fun to read in the news.) Spring training baseball games have started and only 40 Days until The Masters. Call with questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932                                                                                                                                  

FRANKLY SPOKEN

“The word 'ban' suggests that we're going to stop LNG exports. That is just not going to happen. Those contracts are in existence," she said. "The authorizations that previously occurred are going to stay in place. And we'll take a look at what the global demand is, and we'll take a look at what the supply is and what other nations are doing to bring on their supply and what it does for costs back at home."

Energy Secretary Jennifer Granholm in a National Press Club Conversation with CNBC reporter (and NPC President) Emily Wilkins.

ON THE PODCAST

NARUC President Fedorchak Shares Concerns, Solutions for Meeting Rising Power Demand – On this episode of EPSA’s Energy Solutions podcast, North Dakota Public Service Commissioner, NARUC President, and speaker at EPSA’s upcoming Competitive Power Summit, Julie Fedorchak. Commissioner Fedorchak joins Todd to share what’s on her agenda for this year as NARUC’s president, her take on the pace of dispatchable power generation retirement—and what that means for the reliability of the power system. She discusses new initiatives she’s taking to further coordination between the gas and electric sectors, and what it’s like as a state commissioner—and top utility regulator—working with RTOs and other energy leaders to address the energy trilemma. 

FUN OPINIONS

Clean Energy Makes America More Competitive – In an op-ed in The Hill, CRES President Heather Reams and BCSE President Lisa Jacobson write clean energy is good business, and America is stronger and more competitive because of its clean energy investments. According to the newly released 2024 Sustainable Energy in America Factbook from the Business Council for Sustainable Energy (BCSE) and BloombergNEF, 2023 was yet another record-breaking year for clean energy deployment and investment. 

FROG BLOG

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

SAF Ramping Up:  In the first of many charts from the BNEF and Business Council for Sustainable Energy Clean Energy FACTBOOK, IRA incentives drove increased production of sustainable aviation fuel, another name for renewable jet fuel. Demand for such fuel is increasing amongst some airlines’ corporate customers, especially those looking to reduce their emissions associated with aircraft combustion

(Scope 3 carbon emissions). Renewable jet fuel supply rose 81.2% year-on-year. Renewable diesel saw 53% year-on-year growth.

IN THE NEWS

Empire Wind Project Hits Key Federal Milestone with COP Approval – The Bureau of Ocean Energy Management today approved the Construction and Operations Plan for Equinor’s Empire Wind project, marking another significant milestone in advancing an important New York offshore wind project that will help deliver on both state and federal renewable energy ambitions. With this key permitting action by BOEM secured, Empire Wind is on track to begin construction in its federal lease area off the southern coast of Long Island later this year. Already well advanced in planning and development, Empire Wind 1 could deliver first power to New Yorkers by 2026. In addition, construction to transform the South Brooklyn Marine Terminal into a major hub for offshore wind could begin as early as this spring.

New Study Shows Clean Energy Transition Thrives in 2023, Boosted by Federal Policies – U.S. clean energy sectors demonstrated their resiliency in 2023, with both mature and emerging decarbonization solutions seeing growth despite higher interest rates and supply chain difficulties. This strong performance by clean energy sectors is bolstered by a suite of federal policies that provide clear market signals to invest, according to the 2024 Sustainable Energy in America Factbook published today by BloombergNEF (BNEF) and the Business Council for Sustainable Energy (BCSE). This strength was seen across multiple sectors, with record-breaking deployments in 2023 of clean power resources, energy storage, electric vehicles, and emerging technologies like hydrogen and carbon capture and storage. The energy productivity of the U.S. economy increased, while national emissions declined for the first time since 2020, falling to levels comparable to 1987. Download the complete 2024 Sustainable Energy in America Factbook at bcse.org/factbook.

Some Details: Power and transportation, two sectors in which the energy transition is well underway, grew and set records. 42GW of new renewable power-generating capacity was added to the U.S. grid, primarily driven by robust solar additions. Renewable energy use also set new highs at 8.8% of total U.S. energy demand and 23% of electricity demand. Meanwhile, coal’s contribution to power generation slid to 15.8% in 2023 – its lowest ever – and was largely replaced by natural gas.

A record 7.5GW of battery storage was also added, helping to integrate renewable generation on the grid and to provide needed grid flexibility. This makes the United States the second largest energy storage market in the world.

Electric vehicle (EV) sales surged 50% to nearly 1.46 million vehicles sold in 2023. The surge in sales was driven by new federal EV incentives, price cuts, and more EV models released.

Moreover, emerging sectors of the low-carbon economy were jumpstarted. Interest in clean U.S. hydrogen grew, with approximately 437MWh of new electrolyzers shipped in 2023 and plans announced to add nearly three million metric tons of low carbon hydrogen capacity through the Department of Energy’s regional hydrogen hubs. Carbon capture and storage (CCS), renewable natural gas (RNG), and sustainable aviation fuel (SAF) also saw a jump in planned projects and fuel supply in 2023. Clean energy manufacturing, currently limited in the United States, saw a surge of interest with 104 domestic facilities planned at the end of 2023, representing $123 billion in announced investments.

A record-shattering $303.3 billion in energy transition financing was deployed in the United States for clean energy technologies, including renewables, EVs, and power grid investment.

EEI Head Doesn’t See IRA Rollback – Former Trump Administration Energy Secretary and Edison Electric Institute CEO Dan Brouillette said investor-owned utilities would defend it first noted in an E&E News' report on his Wall Street presentation this week. The IRA and the bipartisan infrastructure law passed early in Biden's term have been "important programs both for the industry and economic development around the country," he said. EEI is a powerful lobbying group with contacts on both sides of the aisle and their take is consistent with trade groups across the board. Brouillette doesn't expect major changes to the law, even if Republicans regain the White House and control Capitol Hill

Gas Utility Worker Saves Unconscious Man – The American Gas Association recognized the heroic actions Jason Haynes, a meter technician at Chesapeake Utilities Corporation subsidiary Elkton Gas, whose quick actions while on the job helped to save a life. Haynes put his Chesapeake Utilities CPR training to use when a man collapsed unconscious near Jason's company truck. After realizing the man's heart and breathing had stopped, Jason performed CPR and successfully restarted the man's heart, continuing to perform first aid until ambulances arrived to take him to the hospital. For Jason, the event was a testament to the fact that natural gas utility workers must be prepared to act as emergency first responders. 

ON THE SCHEDULE THIS WEEK

Forum tackles Transatlantic Climate Issues – The Center for Strategic and International Studies holds a virtual discussion today at 1:00 p.m. on Transatlantic trade and climate, looking at a strategic roadmap for 2024.

Forum Looks at IMF, Climate – The Center for Global Development holds a virtual discussion tomorrow at 9:00 a.m., on the International Monetary Fund and how its programs are impacting climate issues.

Whitehouse Headlines Brookings Forum – Tomorrow 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).

Senate Hearing Looks at Microplastics – The Senate Environment Committee’s Chemical Safety, Waste Management, Environmental Justice, and Regulatory Oversight Subcommittee and Fisheries, Water and Wildlife Subcommittee joint hearing tomorrow at 2:30 p.m. on understanding the presence of microplastics in water.

Forum to Celebrate Black Energy Leaders – Tomorrow 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 Wednesday to Saturday 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 Friday 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 Wednesday 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. 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.

Senate Energy Looks at Geologic Hydrogen – The Senate Energy Committee holds a hearing on Wednesday to address opportunities and challenges associated with developing geologic hydrogen in the US.

Senate Environment Hosts Army Corps – The Senate Environment Committee holds a hearing on Wednesday at 10:00 a.m. to discuss the Water Resources Development Act 2024 and U.S. Army Corps of Engineers Water Infrastructure Projects, Programs and Priorities.

GW Hosts State Dept Official on Foreign Affairs – On Wednesday at 11:00 a.m., the George Washington University Elliott School of International Affairs holds a discussion with Undersecretary of State for Economic Growth, Energy, and the Environment Jose Fernandez, U.S. alternate governor to the World Bank, the European Bank for Reconstruction and Development, and the Inter-American Development Bank, part of the "What's Next in Foreign Affairs" Dean's Speaker Series.

Columbia SIPA to Look at Methane – The Center on Global Energy Policy at Columbia SIPA holds a forum on Wednesday at Noon to understand the implications of the new methane regulations in the US and the EU for both US domestic and global gas markets. The forum will look at How regulatory changes and political transitions on both sides of the Atlantic influence gas markets and the COP 28 mandate to move away from fossil fuels.

SCOTUS Group Looks at Ohio Case – The Federalist Society for Law and Public Policy Studies Environmental Law and Property Rights Practice Group holds a virtual discussion on Wednesday at 12:00 p.m., on the Oral Argument in Ohio v. EPA, a Supreme Court case about the EPA's federal emission reductions rule, the Good Neighbor Plan.

Forum Looks at Grid, Demand Growth – On Wednesday at 1:30 p.m., the CSIS Energy Security and Climate Change Program holds a conversation on U.S. Electric demand growth. Speakers include Rob Gramlich of Grid Strategies, former VP of Energy at Microsoft Brian Janous and CSIS Fellow Cy McGeady. They will discuss what the data is telling us about the state of load growth in the U.S., what this load growth looks like from the perspective of large commercial customers, and how actors in the electric-power sector – including utilities, state regulators, project developers, and load customers – will need to adapt.

BOEM’s Klein to Headline ACORE Forum – The 2024 ACORE Policy Forum will be held in Washington, D.C. on Wednesday and Thursday. 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 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 Climate Displacement – The Washington Office on Latin America and the Center for Justice and International Law hold a discussion on Thursday at 1:00 p.m. looking at climate emergency, displacement and migration. The event will look at voices and proposals from affected communities and civil society.

Heritage Forum Tackles at Fossil Fuel Use – On Thursday at 2:00 p.m., the Heritage Foundation holds a discussion on the true costs of ending fossil fuel use. The Biden administration’s policy to achieve net-zero greenhouse gas emissions by 2050. Meanwhile, the U.K.’s net-zero plans are having a disastrous effect on the country and should serve as a warning to Americans. Experts weigh in on alternate paths for the U.S.

Forum to Discuss Enviro Policy Consensus – The Hill and the American Conservation Coalition hold a virtual discussion on Thursday at 2:00 p.m., on building consensus around environmental policy. The event is bringing together young conservative and progressive environmental leaders for a bipartisan discussion. The goal of this virtual event is to foster productive conversations and explore common ground on key issues such as environmental justice, nuclear energy, permitting reform, green jobs and natural climate solutions.

EESI to Look at Budget Process – The Environmental and Energy Study Institute holds a briefing on understanding the Budget and Appropriations Process on Thursday at 2:00 p.m. The event will focus on the latest presidential budget proposal, slated to be relation in early March. The briefing will also shed light on the role of the 12 appropriations subcommittees and highlight ways Congressional staff, working both on and off the appropriations committees, can engage with the process. Panelists will showcase examples of investments in climate, energy, and environment research and innovation that bring the process to life.

Forum Looks at Energy Equity in India – On Friday, 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.

IN THE FUTURE

USEA to Look at AI in Utility Sector – The US Energy Association has scheduled a virtual press briefing on the future of the electric power sector in the AI era for Wednesday March 6^th at 11:00 a.m. For this briefing, the USEA has assembled a panel of experts qualified to answer questions from a panel of reporters on all aspects of AI, which is changing faster than its adoption rate by the electric utilities. Speakers include EPRI’s Rob Austin, Marc Spieler of Nvidia, Sacha Fontaine of SAS and David Derigiotis of Embroker, an authority on AI.

RMI Tackles Enviro Justice Initiatives – Resources for the Future (RFF) holds a forum on Wednesday, March 6^th at Noon for the first event in its new Exposure event series. At this event, our panel of experts and community leaders will take stock of what’s happened since our 2021–2022 Exposure series, how the Justice40 Initiative priorities have been implemented across federal programs, and RFF’s work in measuring the initiative’s impact. Speakers include White House Justice40 official Monisha Shah and NRDC’s Matthew Tejada.

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.

SXSW Set – From March 8^th to March 16^th, South-by-Southwest (SXSW) will be held in Austin, TX and always has a great policy component to it. There is a Climate change track as well as an energy track.

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.

Manchin Headlines POLTICO HealthCare Summit – At POLITICO's Health Care Summit on Wednesday March 13^th at the Waldorf, Sen. Joe Manchin (D-WV) will sit down with POLITICO's Congressional Bureau Chief, Burgess Everett, to dive into the U.S. fentanyl epidemic and his recent bipartisan legislation, the FEND Off Fentanyl Act. While health care will be the topic of the day, one expects that energy issues will work there way into the questions.

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!!!