Energy Update: Week of January 15th

Friends,

I must start today with the Detroit Lions. As many of you know, I am a Detroit native but remain skeptical of the Lions because of 56 years of failure throughout my entire life. (The environment hook is the Lions are owned by the Ford family.)  After Sunday’s big win over their former quarterback Matt Stafford and his LA Rams, in what was a really great game (best of the Super Wildcard weekend), Detroit won its first playoff game since 1992 and first at home since 1991. Our good friend Zack Colman was there at Ford Field so I hope to catch up with him, but fans have drunk the Kool-Aid so I hope they are not eventually disappointed.

Republican caucus-goers in Iowa cast the first ballots of the 2024 election yesterday, launching a Presidential election cycle that promises to be like no other, full of plot twists and historical anomalies.  I don’t know if I am excited or not, but it will be historic and uncertain. Trump’s victory was no surprise and both DeSantis and Haley performed as expected.  My colleague Liam Donovan broke it down on NPR last night as results poured in despite the winter storm conditions.  New Hampshire up next.

On a side note, if you are doing stories on the election and climate issues, please let me know. While I am certain it will be in the discussion as progressives pressure the White House, it still tends to be a low priority issues for most voters – and especially among most Republican voters.  That doesn’t mean there are interesting storylines and discussion points.  The issue is much deeper and more complex than just the typical “fossil fuel lobbyists support Trump and enviro progressives support Biden.”

With the week already short because the of the MLK holiday (and hopefully you used it as a day of service), we now have it shorter with the “snow” ion DC which closed schools and the government.  Not so bad.  As a Michigan guy, I love it when my regional neighbors stay home because most have no idea how to drive in the snow!! (you all know what I mean and know who you are). Anyway, despite agreement between House and Senate leaders on a topline spending number of $1.66 trillion, Senate Republicans last week said another continuing resolution would probably be necessary ahead of the first round of appropriations bills expiring on Friday. Expect action in both bodies this week to get the ball rolling. Remember, Energy funding is in this first round. We are also watching NAAQS decision at EPA and my colleagues Tim and Liam can provide info on the latest tax framework deal between House Ways & Means Chair Jason Smith and Senate Finance Chair Ron Wyden announced this morning.

Seeing its first action this week in a Senate Committee is the PROVE IT Act, a bipartisan bill that would authorize a two-year study into how the carbon emissions of U.S. manufactured goods compare to China and other countries with lax environmental standards. Our friend Josh Seigel reports that conservative groups will push Republicans to oppose the bill while a coalition of industry groups like the US Chamber and API support the bill. (maybe look for a letter today on the topic.)

This week’s big event is the launch of the Washington Auto Show with its annual Policy Day on Thursday. Michigan Rep. Debbie Dingell, Toledo OH Jeep plant Rep. Marcy Kaptur, former auto dealer Rep. Mike Kelly and Ohio Rep. Bob Latta are on the Congressional panel, while Administration Climate Czar Ali Zaidi, DOE’s David Turk and White House mguru Gabe Klein head the Admin panel discussion.  Lots of other good stuff and a preview of the cars is always great.  The Washington Area Dealers always put on a good event. Also Thursday, FERC holds its monthly meeting.

Remember, next Monday January 22^nd at 11:00 a.m., AGA Chair Jerry Norcia will outline his vision for the year ahead and the role of natural gas in the United States.  I mention because the event will happen next Monday before we are out next week.  Also, next week, mark your calendars for USEA’s annual State of Energy Industry event on Tuesday.

                                                                                                                                              

FRANKLY SPOKEN

““Clean hydrogen should be for everyone, powering everything, and available everywhere.”

Jay Change, President and CEO, Hyundai Motor Company at CES in Las Vegas

 

ON THE PODCAST

Powell Clean Energy TED Talk – ClearPath’s CEO Rich Powell delivered a TED Talk on modernizing the energy permitting process recently. Powell shares optimism on the otherwise gloomy permitting outlook. He offers a plan to expedite project development and improve the judicial review process.

USEA Podcast Hosts Former FERC Chair Chatterjee – USEA’s Power Sector podcast this week features a conversation with former FERC Chair Neil Chatterjee. Chatterjee answered questions by journalist Herman Trabish about expected impacts of the just-passed FERC Order 2023 to streamline transmission interconnection queues and about his expectations for FERC’s major initiative to improve regulatory guidelines governing regional transmission planning.

 

FUN OPINIONS

Cement Trade Officials Critical of Upcoming NAAQS Rule – In an op-ed in Real Clear Energy, cement industry trade association heads write if a newly proposed EPA particulate matter (PM) standard take effect in the next few weeks, it will undermine the materials needed for the push from the White House’s Infrastructure law over the next few years. Those in the nation’s construction industry do care and continue to take action to improve the environment and the air we breathe. For decades, the U.S. cement, concrete, and aggregates industries have spent millions on state-of-the-art technologies to adhere to EPA standards and yield more sustainable products. 

 

FROG BLOG

LNG Critical for Global Prosperity – In a blog post, the American Gas Assn writes that as more American LNG export terminals come online soon, they can’t arrive a moment too soon for the global economy, and for the people of nations dependent on natural gas for their very survival. Preventing a recurrence of last year’s events is critical for the wellbeing of the world’s poorest. American LNG has already saved Europe from an energy crisis caused by Vladimir Putin’s invasion of Ukraine. In 2024 and beyond, the world will be able to count on a steadier supply of lower-carbon energy, minimizing suffering while helping the developing world transition to a cleaner energy future. 

 

FUN FACTS

Coy: Cost of Emissions is Higher – In his column in the New York Times, Peter Coy writes the below chart shows a steep drop in 2022 in the global weighted average price per metric ton of carbon dioxide emissions:

 

IN THE NEWS

EPA Drops Methane Fee Rules – On Friday, EPA proposed steep, long-awaited new fees on methane emissions from oil and gas facilities. The proposed rule is the first big reg hammer target represents one of the biggest sticks in a White House climate strategy that has so far dangled carrots. President Biden’s signature climate law, the Inflation Reduction Act, offers generous financial rewards for businesses that reduce their emissions, but it provides few punishments for companies that fail to do so. API’s Dustin Myers raised concerns about the new fee:

“As the world looks to U.S. energy producers to provide stability in an increasingly unstable world, this punitive tax increase is a serious misstep that undermines America’s energy advantage. While we support smart federal methane regulation, this proposal creates an incoherent, confusing regulatory regime that will only stifle innovation and undermine our ability to meet rising energy demand. We look forward to working with Congress to repeal the IRA’s misguided new tax on American energy.”

API has worked with the administration to craft policies that maximize emissions reduction at the lowest cost to society. We are concerned that lack of coordination between policymakers shaping various methane regulations, including the Methane Rule that sets the standards for emissions reductions, the Reporting Rule that will determine what companies may pay under the Methane Fee, and the Methane Fee Rule, could result in regulatory incoherence. For these complex rules to work cohesively, meaningful coordination both within EPA and between federal regulators and the industry throughout the rulemaking process will be critical. The U.S. natural gas and oil industry is taking action to reduce methane emissions while continuing to produce affordable, reliable energy. Average methane emissions intensity [u7061146.ct.sendgrid.net] declined by nearly 66 percent across all seven major producing regions from 2011 to 2021. Industry-led initiatives like The Environmental Partnership [u7061146.ct.sendgrid.net], whose members make up nearly 70% of the U.S. onshore natural gas and oil industry, are helping to accelerate progress on methane emissions reductions by driving collaboration and sharing best practices across the industry.

Rhodium: Emissions Fell in 2023 – A new Rhodium report says GHG emissions in the US fell by 1.9% in 2023 for the first time since the COVID-19 pandemic in 2020 -- but this time is different because the economy also expanded during the period, reports US emissions in 2023 were 17.5% below 2005 levels, but faster reductions are needed to achieve a 50% reduction by 2030.

Hydrogen Takes Center Stage at CES 2024 – At the Consumer Electronics Show (CES) 2024 in Las Vegas last week, hydrogen has been featured prominently thanks to the announcements of two FCHEA members. Hyundai publicly reaffirmed its commitment to use hydrogen and work towards the creation of a “hydrogen society” by expanding into energy production, storage, and transportation. Bosch also announced plans to launch its first hydrogen combustion engine this year at CES, stating that "the company is also working on components for a hydrogen engine, which converts fuel directly into energy without first converting it into electricity." Both companies pointed to recent policy developments in the United States such as the $7 billion Hydrogen Hubs programs as encouragement to move forward with their projects.

 

ON THE SCHEDULE THIS WEEK

Energy Summit Set for NOLA – Americans Energy Summit will be held today through Friday at the Morial Convention Center in New Orleans, Louisiana. The event will bring together companies from across the gas, LNG and hydrogen value chain. It will showcase the latest LNG and gas innovations in technology, low carbon solutions, products and services.

Brookings Hosts Parking Discussion – Today at 4:00 p.m., Brookings Metro hosts a discussion with Henry Grabar, a staff writer at Slate, on how American cities can evolve their approaches to parking and, in the process, build more inclusive and sustainable neighborhoods. Grabar will talk about his recent book, “Paved Paradise,” in which he details how the country designed itself into this situation—and features stories from many of the leaders who are trying to design a way out. A panel will follow with experts from across the transportation, urban planning, and real estate industries to compare notes on just how big the retrofit needs are and some of the promising examples beginning to emerge from across the country and beyond.

Workshop to Look at Hydrogen Exports to Asia – The Center for Strategic and International Studies holds a workshop on the prospect for hydrogen exports to Asia today at 7:00 p.m. This event will gather experts and industry stakeholders from the United States, Australia, and Chile, to share observations on key policy developments and industry actions, as well as perspectives on how energy security, economic development, and decarbonization considerations are affecting these developments. The workshop, which will run on the Chatham House rule, will open with initial comments by several experts (5-7 minutes each), followed by discussion among all the participants. I’ll send out a list of guiding questions for discussion as it gets closer to the workshop date. The confirmed commenters include Angelina Galiteva (ARCHES H2), Brett Perlman (Center for Houston’s Future), María José Riquelme (Hinicio), and Fiona Simon (Australian Hydrogen Council).

Forum Looks at Climate, AI – On Wednesday, the Center on Global Energy Policy at Columbia University’s School of International and Public Affairs holds a discussion of how artificial intelligence (AI) can help reduce greenhouse gas emissions. David Sandalow, lead author of the Artificial Intelligence for Climate Change Mitigation Roadmap, which was released earlier this month, will explore that topic along with seven of the report’s co-authors. The Artificial Intelligence for Climate Change Mitigation Roadmap is the 12th roadmap released as part of the ICEF Innovation Roadmap Project. Information on previous roadmaps can be found in this booklet.

Women’s Energy Leaders Conference Set – On Wednesday at 9:00 a.m., on January 17, at 9 AM (ICT) for the opening conference of the Women Energy Leaders (WEL) program to learn about the program, activities, and expectations. The opening conference also features a panel on Advancing Women in Energy where women energy leaders from the United States, Southeast Asia, and the Pacific reflect on their professional journeys, challenges, opportunities, and the role of mentorship for women's leadership in the energy workforce. The U.S. Department of State, Bureau of Energy Resources, with funding from the ENR’s Power Sector Program (PSP) and the U.S.  Gender Equity and Equality Action Fund (GEEA) launched the Women Energy Leaders (WEL) program at the United Nations Climate Change Conference (UNFCCC) COP28 on December 4, 2023. The US Energy Association (USEA) has been selected as the implementing partner for the program. 

Forum Looks at US German Hydrogen – Georgetown University hosts a US-German Hydrogen Forum on Wednesday at 10:00 a.m.  This event will bring together policy, industry, and finance leaders to discuss the future hydrogen-powered economy, the growing role of hydrogen in shaping transatlantic relations and global energy value chains, the opportunities through international trade, and the policies needed to build and sustain momentum along this critical energy transition frontier. Speakers include DOE’s Director of the Hydrogen and Fuel Cell Technologies Office Sunita Satyapal, German Federal Ministry for Economic Affairs head Falk Boemeke, RMI’s Oleksiy Tatarenko, Siemens Energy’s Brian Raymond and U.S. Chamber Global Energy Institute expert Kendall Stephenson, among others.

Washington Auto “Public Policy Show” Set – The Washington, D.C. Auto Show public policy day will be held on Thursday at Noon.  The policy day advances the show’s 10-day consumer event which runs to January 29^th.  The policy day is an exclusive look at the people and policies shaping the U.S. auto industry. Geared toward automotive industry leaders, government officials, and esteemed media contacts, this event encompasses special announcements, fireside chats, and panel discussions focusing on the current state of the country’s essential automotive sector and its future initiatives.  Reps. Debbie Dingell and Marcy Kapture will speak at the main event while DOE’s David Turk, DOT’s Dolly Trottenberg and Gabe Klein, Executive Director of the Joint Office of Energy and Transportation are featured in an afternoon panel.

House Panel Tackles International Nuclear – The House Financial Services National Security, Illicit Finance, and International Financial Institutions Subcommittee holds a hearing Wednesday at 10:00 a.m. on international financing of nuclear energy.

House Energy Panel Looks at Pipelines – The House Energy and Commerce Energy, Climate, and Grid Security Subcommittee holds a hearing on Thursday at 10:00 a.m. looking at legislation to improve safety while expanding U.S. pipeline infrastructure.

FERC Holds Monthly Meeting – FERC holds its monthly open meeting on Thursday at 10:00 a.m. with several natural gas projects on the agenda. 

Senate Environment Marks up PROVE IT Act – The Senate Environment Committee will hold a mark up for 5 bills on Thursday at 10:30 a.m.  Among the legislation is the highly-touted PROVE IT Act sponsored by

Program Looks at Regional Hydrogen Hubs – The Clean Energy States Alliance holds a forum on Thursday at 1:00 p.m. on whether DOE’s regional Hydrogen Hubs will be a climate solution or a climate bust. Panelists include Clean Energy Group’s Abbe Ramanan, Amanda McKay of Pipeline Safety Trust, IEEFA’s David Schlissel and Anika Juhn.

House Oversight to Address Nuclear – The House Oversight and Accountability Economic Growth, Energy Policy, and Regulatory Affairs Subcommittee holds a hearing on Thursday at 2:00 p.m. taking up empowering American nuclear energy.

Forum Looks at National Climate Assessment – The Environmental and Energy Study Institute (EESI) holds a briefing on Thursday at 3:00 p.m. about the U.S. Global Change Research Program's 5^th National Climate Assessment (NCA5). NCA5 is the most comprehensive, holistic, and inclusive report to date on national climate risk and response. Panelists will discuss the report’s emphasis on the need for “rapid and deep” greenhouse gas emission reductions and the resulting economic and health benefits. The report also highlights the importance of investing in adaptation to the impacts of climate change—impacts which exacerbate existing climate and social injustices. Speakers for this forum include UMich/UMd professor Rosina Bierbaum, White House OSTP Climate Assessment Director Allison Crimmins and NWF’s Adrienne Hollis.

Enviro Bar to Discuss COP 28 – The American Bar Association's Section of Environment, Energy, and Resources holds a virtual discussion on Friday at 12:00 p.m., on COP 28 and key developments and things to look for in the upcoming year.

Forum Look sat Major Admin Law Cases – The Federalist Society for Law and Public Policy Studies holds a discussion on Friday at Noon looking at Congress and the Future of Agency Authority. The hearing will focus on three major Administrative Law cases and their implications for Congress. The event will feature a panel of experts discussing the U.S. Supreme Court’s upcoming administrative law decisions in Loper Bright v. Raimondo, Jarkesy v. SEC, and Consumer Financial Protection Bureau v. Community Financial Services Association of America. The outcome of these cases could change how decisions are made in Washington. DC. The panel of experts will include William Yeatman of the Pacific Legal Foundation and Professor Kimberly Wehle from the University of Baltimore School of Law.

 

IN THE FUTURE

HVACR Expo Set for Chicago – The Air-Conditioning, Heating, and Refrigeration Institute (AHRI) will co-sponsor and exhibit at the 2024 AHR Expo on January 22-24 at the McCormick Place Convention Center in Chicago, Illinois. The AHR Expo is the world’s largest HVACR marketplace event and will host more than 1,600 exhibitors across more than 550,000 square feet of exhibit space and attracting more than 50,000 attendees, including a diverse group of international industry professionals. AHRI staff will be on hand at booth S6910 to discuss the value of the association’s globally recognized certification and standards programs, membership, industry educational scholarships, and more.

USEA Holds State of Energy – USEA holds its 20^th Annual State of the Energy Industry Forum from Noon to 4:00 p.m. on January 23, 2024 at the National Press Club.  The forum brings together CEOs from Washington’s leading energy trade associations where they outline their policy objectives and priorities for the upcoming year.

RFF Big Decisions Forum Set – Resources for the Future hosts its annual Big Decisions event on Wednesday January 24^th at 2:00 p.m. The event will feature government officials, climate and environmental economics experts, and journalists to unpack some of the biggest policy decisions in this election year. 2024’s big decisions include upcoming opportunities and challenges with the implementation of the historic Inflation Reduction Act, congressional and federal regulatory activities, and how looming federal court decisions may change decisionmaking into the future. Our friend Rich Powell of ClearPath EPA’s Vicki Arroyo and former EPA official, now at Georgetown Lisa Heinzerling will l are among the speakers.

Forum Looks at Climate Disaster, Justice – On Friday January 26^th at 10:00 a.m., the Ambedkar Initiative at the Institute for Comparative Literature & Society, the Center on Global Energy Policy (CGEP) at Columbia University’s School of International and Public Affairs, the SIPA Diversity, Equity, Inclusion, Climate & Engagement (DEICE) Committee, Columbia Climate School, and South Aisa Institute launches a series of discussions examining social and economic justice issues related to climate change and energy transition in India. The first session, “Environmental Casteism and Climate Disaster,” will focus on how the climate crisis is reinforcing the vulnerabilities of oppressed communities and highlight the importance of an anti-caste framework for research and practice. Two experts, scholar Srilata Sircar and Pulitzer-Grantee Journalist Suprakash Majumdar, will be in a conversation moderated by Deepali Srivastava, editor of CGEP’s Energy Explained. Dr. Anupama Rao, director, the Institute for Comparative Literature and Society, and the convenor of the Ambedkar Initiative will deliver welcome remarks.

Trade Agency Hosts Hydrogen Briefing – The U.S. Trade and Development Agency will host a Business Briefing for South African delegates on January 30^th in Houston to present on clean energy needs and goals and hear from U.S. firms with solutions. The Business Briefing is part of USTDA’s South Africa Green Hydrogen Reserve Trade Mission to connect public and private climate-smart institutions with U.S. best practices and solutions in clean energy and climate infrastructure. South African delegates will speak about their current capabilities, anticipated needs, and potential procurement opportunities. Technologies to be discussed include electrolyzers, hydrogen fuel cells, hydrogen-ready turbines, innovative hydrogen production designs, green hydrogen fueling stations, and more.

Chat to Address Oil, Gas Production Impacts – The Center on Global Energy Policy (CGEP) at Columbia University's School of International and Public Affairs will host Professor Lucija Muehlenbachs, CGEP visiting faculty member, associate professor of economics at the University of Calgary, and a university fellow at Resources for the Future, for a fireside chat on Wednesday January 31^st at 6:00 p.m. The conversation will focus on some of these burdens, such as methane emissions and well-site cleanup, as well as recent policy developments.

Gevo Expert to Address BNEF New Energy Finance Forum in SF – The Bloomberg New Energy Finance Summit will be held on San Francisco on January 30^th and 31^st at the Four Seasons Hotel. The event provides the ideas, insights and connections to formulate successful strategies, capitalize on technological change and shape a cleaner, more competitive future. The event includes numerous speakers from CARB, CEC and other policy officials. Gevo expert Chris Ryan speaks on a panel focused on the drive to scale up clean fuels by shifting from traditional roles in the fuel supply sector. Maersk is spinning off a startup to produce green methanol, and airlines are partnering with refiners to develop renewable fuel production capacity.

SCOTUS to Hear Pollution Case on Feb 21 – The Supreme Court said Friday it will hear arguments 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.