Energy Update: Week of January 21

Friends,

Well Super Bowl LIV (yes we are buying up swag for our daughter Olivia who goes by “Liv”) is set with San Francisco taking Kansas City Chiefs.  The Chiefs return to the Super after 50 years while the 49ers go for #6, looking to build on their 5-1 record in Super Bowls.  Game is set for Miami on February 2.

While the games were a major focus, everyone seems to really care that Brad and Jen are getting back together (I guess???) after their interaction at the 26^th annual SAG awards.  Both were among the winners, along with South Korea’s Parasite, which won the Outstanding Performance by a Cast in a Motion Picture. SAG-AFTRA presented awards in 15 categories honoring the year’s best film and TV acting performances. With Brad/Jen, at least the internets and tabloids have something to talk about now!

It is a short week as we honor the legacy of Dr. Martin Luther King, but before we get to the action, we at Bracewell’s Policy Resolution Group are excited to announce that Ernst & Young Tax veteran Tim Urban will join our group.  See here and below…

Yesterday the President addressed the Farm Bureau Convention and said look for action this week on the WOTUS re-do.  Now, he is off to Davos, where climate will come up even though it won’t be in his speech.  Here in DC, some will be focused on the start of the President’s impeachment trial, but we are focused on a number of good energy events. SAFE held a forum with the inventor of “Micromobility” Horace Dediu this morning, and if you missed it, they will revisit with Dediu and a broader panel in a Hill briefing at 3:00 p.m. TODAY in 2253 Rayburn.  Tomorrow and Thursday, the Washington Auto Show holds its policy days with EPA’s Andrew Wheeler and DOE’s Mark Menezes speaking Thursday. USEA holds its 16^th annual State of the Energy Industry Forum on Thursday with a huge line up of energy trade CEOs and on Friday at 3:00 p.m., SEJ hosts its annual environmental policy outlook at NatGeo.

I will be on the road this week going from Tampa yesterday to DC to LA to Boston to Houston all over the next week.  I feel like I am on a campaign…

Finally, congrats to our friends Alan Kovski and Nick Snow.  Nick retired from Oil & Gas Journal after a great tenure and Alan, a long time oil/gas-reporting veteran is taking his place.  Sorry I will miss the USEA event (where Alan is making his O&G moderating debut) on Thursday and the SEJ event on Friday (as it is one of my favorites), but I am sure you will be able to make it without me.  That’s all for today, call with questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

FRANKLY SPOKEN

“Tim is a preeminent tax policy professional with decades of experience representing clients in the energy sector. Tim will be a key member of our market-leading government relations practice and will be a valuable resource to clients throughout the firm.”

Bracewell Managing Partner Greg Bopp about new PRG tax expert Tim Urban.

“Tim’s tax practice and network of client relationships in the Southwest complements the strengths of our lobbying team, and clearly enhances our capabilities in the renewable and alternative energy sector. As lawmakers continue to evolve the nation’s energy and tax policy to reduce carbon emissions, and to provide an all-of-the-above portfolio of electricity and transportation fuel resources to the public, Bracewell is positioned to be a world-class provider of policy services.”

Bracewell Policy Resolution Group co-head Scott Segal

ON THE PODCAST

Bracewell Podcast Talks Taxes with New Bracewell Tax Expert – Bracewell PRG’s Lobby Shop Podcast talks taxes today when tax/political savvy host Liam Donovan sits down with new Bracewell tax expert Tim Urban to discuss the year-end tax plan and what is on the agenda for 2020.   Tim’s episode of The Lobby Shop is now live on Spotify, Apple Podcasts, SoundCloud, Stitcher, and Google Play Music! 

FUN OPINIONS

WaPo: Shultz, Halstead Re-Argue for Carbon Tax – In an op-ed in the Washington Post, CLC’s Ted Halstead and former Secretary of State George Shultz make the same old argument they have been making for two years.  The bolster their “carbon tax is the Best policy” approach with new polling, reports and analysis of economists to support it.  While all that may be the case, the political will for new carbon taxes is just not that real.  You are seeing significant backlash internationally against higher carbon taxes/pricing and it has always been a political non-starter here in the US.  So why do we keep chasing that big wave that probably doesn’t exist?  Somebody must be thinking of a better way…

FROG BLOG

EIA: Wind, Solar Smash Annual Growth in 2020 – A new chart/blog post from EIA says wind and solar power are both forecast to smash annual U.S. installation records in 2020. EIA expects each sector to add more than 18,000 megawatts. Wind installations are booming as developers push to start projects before a federal tax credit expires.  The phase-out of the PTC extension is also reflected in the amount of wind capacity additions that came online in 2019, which EIA expects will total 11.8 GW. Five states account for more than half of the 2020 planned wind capacity additions. Texas accounts for 32%; followed by Oklahoma at 6%; then Wyoming, Colorado, and Missouri at 5% each.  On solar, a new California mandate requiring panels on most new homes is helping propel solar. More than half of the utility-scale electric power sector solar photovoltaic (PV) capacity additions will be in four states: Texas (22%), California (15%), Florida (11%), and South Carolina (10%), while EIA expects an additional 5.1 GW of small-scale solar PV capacity to enter service by the end of 2020.

IN THE NEWS

Veteran Tax Lobbyist Joins Bracewell’s PRG – Bracewell announced today that Tim Urban has joined the firm’s Policy Resolution Group (PRG) located in its Washington, DC office as a senior principal to lead the firm’s tax policy practice. Urban previously served for over 20 years as a principal at EY in its Washington Council tax lobbying practice.  Urban has represented a broad variety of clients on tax issues, with a focus on the energy sector. He has worked on conventional, alternative and renewable energy tax proposals involving income and excise tax; production, blending and investment credits; accelerated depreciation provisions; and various carbon tax proposals for energy facility investors, developers and operators. Prior to private practice, he served as a Ways and Means Committee staff associate for a member of the House tax-writing committee, working on tax, trade, pension and health policy issues; creating and implementing the annual tax legislative agendas; and drafting legislative proposals and related tax legislative documents.

DOE Process Rule Moves Forward – The DOE submitted to the Federal Register its rule that would set forth updated procedures for the Department to follow in its rulemaking activities.  The Procedures for Use in new or Revised Energy Conservation Standards and Test Procedures for Consumer Products and Commercial/Industrial Equipment rule, more commonly known as the Process Rule, outlines binding rules that DOE must follow when it develops new or updated energy conservation standards.  The HVACR industry has been consistent in its support for an updated Process Rule, as the previous version had been inconsistently followed by DOE.  AHRI said the Process Rules will bring much-needed modernization to the DOE rulemaking process, including making them binding on the Department.   AHRI head Stephen Yurek said “We are heartened that the Department appears to be strengthening its commitment to abide by provisions of the Energy Policy and Conservation Act, such as the Act’s requirement that DOE develop test procedures prior to issuing updated standards – a requirement essential to manufacturers’ ability to accurately test equipment to ensure compliance.”  Provisions to initiate an expeditious early look at costs and benefits and changes in equipment technology when determining whether a new standard is justified, as well as requiring early stakeholder engagement in rulemakings are of critical importance to the industry, as is defining the threshold for “significant energy savings” at .3 quads, or a 10% efficiency improvement, over 30 years for each covered product category.

Kids Don’t Have Standing in Climate Case – The 9^th Circuit dismissed the Juliana v. United States case Friday. 21 young people and an advocacy group sought to compel the government to take action to address greenhouse gas emissions.  Although the court said the plaintiffs made a “compelling case that action is needed”, courts simply don’t have the power to fix those policies. The legislative and executive branches of government are the only ones with the power to redress the kids' alleged injuries, the panel said in a 2-1 decision. The majority drew the line at whether a court could give the kids the relief they are seeking. My colleague Scott Segal said the court ruled “unmistakably if not reluctantly that developing a response to global climate change is a complex undertaking that is beyond the capacity of the courts of the United States.  The combination of scientific, social, and political considerations that go into climate policy make it the exclusive province of the Congress and the Administration.  Therefore, since the plaintiffs haven’t brought the kind of case the courts can decide, they have failed to establish standing and the case is dismissed.  The good news for plaintiffs is that the very action the court says is appropriate in the climate context – complex policy making undertaken by the political branches – does seem to be underway, even in this election year.  The Speaker has said she will have a vote on climate legislation before Election Day.  Committees in Congress are actively underway producing bills.  And Republican leadership has acknowledged that we are passed the inflection point for legislation and is working on their own package.”

Noble, Delek Pumping NatGas from Israeli Field – U.S.-based Noble Energy Inc. and Israeli-based Delek Drilling LP have begun pumping natural gas from two gas fields in Israel to be sent to Dolphinus Holdings Ltd. in Egypt as part of a $20 billion deal signed between the three companies almost two years ago. As part of the deal, which Israel's energy minister touted as "the first of its kind and scope since the peace agreement was signed between Israel and Egypt 40 years ago," the US-Israeli consortium will provide Egypt with 85 billion cubic yards of natural gas over 15 years.

ON THE SCHEDULE THIS WEEK

Trump to Attend Davos Economic Forum – The World Economic Forum Annual Meeting will be held In in Davos-Klosters on tomorrow to Friday.  The forum is the foremost creative force for engaging the world's top leaders in collaborative activities to shape the global, regional and industry agendas.  President Trump has already announced he will attend this year after missing last year because of the government shutdown.  The summit's program features discussions on everything from "averting a climate apocalypse" to "the business case for safeguarding nature," and its speakers include Swedish climate activist Greta Thunberg, who will be addressing the summit today after President Trump.

National Biodiesel Conference Set – Off a fresh victory to renew the Biodiesel Blenders Tax Credit in December’s budget deal, the National Biodiesel Board holds its annual National Biodiesel Conference in Tampa today through Thursday.  Our friends Jim Massie, Tim Urban and John Eichberger will be among the speakers. 

SAFE Hosts MicroMobility Guru – Securing America’s Future Energy (SAFE) held a presser with the inventor of “Micromobility” Horace Dediu, this morning at 9:00 a.m. at SAFE.  If you missed it, they will head to 2253 Rayburn at 3:00 p.m. TODAY for a Congressional Briefing.  Dediu organized the first Micromobility Summit in 2017 and is one of the world’s most respected business analysts and renowned experts in complex data analysis. He has made numerous keynote speeches at major industry conferences, including the upcoming Micromobility America in Richmond, CA this April. Dediu is also the co-founder of “The Micromobility Podcast” and has been described by Fortune magazine as the “king of Apple analysts.”

Washington Auto Show Policy Days Set – The Washington Auto Show holds its annual policy days today and tomorrow just prior to the launch on the 2020 auto show.  As the “Public Policy Show” on the auto show circuit, the 10-day public show is preceded by two Public Policy Preview Days of special events and announcements for officials in government, industry and the media.  This year, Mobility Talks will focus on a policy discussion talk on Smart Cities and Urban Mobility with a significant discussion on autonomous vehicles.  SAFE’s Robbie Diamond will be featured on the plenary panel on Wednesday.  EPA Administrator Andrew Wheeler and DOE Undersecretary Mark Menezes both deliver keynote addresses on Thursday morning at 8:30 a.m. 

Mayors Headed to DC – The United States Conference of Mayors holds its 88^th Winter meeting starting Wednesday at the Capital Hilton.  Democratic Presidential candidates, former NYC Mayor Mike Bloomberg and former South Bend Mayor Pete Buttigieg, will address the nation’s mayors.  Bloomberg will speak on Wednesday, at 3:45 pm ET and Buttigieg speaks on Thursday at 11:15 a.m.  More than 270 bipartisan mayors from across the country will attend and discuss the state of cities and their national priorities.  Climate panel is Thursday at 9:15 and features Sen Chris Coons and C2ES head Bob Perciasepe.  Microgrids and energy storage also later that day.

Forum to Look at CCUS – The National Petroleum Council and Society of Petroleum Engineers hosts a forum tomorrow at Noon in Arlington looking at Carbon capture, use, and storage (CCUS).  Building on existing research and expertise, this forum – Meeting the Dual Challenge – addresses the entire CCUS supply chain and recognizes that at-scale success requires economic and operational integration across industries, harmonized local/state/federal regulations, innovation and technology development, and broad public acceptance. Meeting the Dual Challenge details the actions needed to deploy carbon capture technologies at scale in the United States.

WCEE to Look at Rivers –The Women’s Council on Energy and the Environment (WCEE) holds a luncheon on Wednesday at Noon on protecting the Potomac and Shenandoah rivers using the Clean Water Act. Potomac Riverkeeper Network’s President, Nancy Stoner will discuss the history of the organization and their current efforts to protect water quality, including their use of the citizen suit provision in the Clean Water Act (CWA).

Webinar to look at State Energy Storage Issues – The American Bar Association holds a webinar on Wednesday at Noon looking at federal and state issues shaping the future of renewables and storage.  Several states are actively promoting the use of storage and the integration of renewables. The future development of renewable and distributed energy resources as contributors to a secure and sustainable energy system is dependent on their effective integration into the power grid. Such integration is dependent not only on advances in technology, but increasingly on the accommodation of its adaptive flexible use in a manner compatible.

Pacific Labs Director to Look at Nuclear Innovations – On Wednesday morning at 8:30 a.m., the Nuclear Industry Council and DOE host a conversation in 2045 Rayburn on nuclear energy emerging developments at Pacific Northwest National Laboratory.  DOE’s Connie Prochaska and PNWL’s Director Steven Ashby will look at emerging nuclear trends. 

RFF Looks at FERC Clean Energy Order – Resources for the Future (RFF) hosts a brief primer tomorrow at 9:00 a.m. on the implications of FERC’s minimum price offer rule (MOPR) order.  A panel will look at what it means for states’ clean energy policy goals, anticipated impacts on the resource mix in PJM, and potential impacts on ratepayers.  Speakers include RFF’s Kathryne Cleary, PJM’s Craig Glazer, Our friend Robert Gramlich of Grid Strategies, Calpine’s Sarah Novosel and former DOE official Susan Tierney. 

Senate Enviro to Look at Econ Dev Agency – The Senate Environment Committee holds a hearing on oversight of the Economic Development Administration on Wednesday.

NEI Supply Forum Set – The Nuclear Energy Institute holds its annual Nuclear Supply Forum at the Mayflower Hotel on Wednesday afternoon.  The one-day forum will provide information on policy issues related to the nuclear fuel industry. Speakers from key government agencies and organizations that shape policy will present the latest insights on what lies ahead.

Forum to Look at Latin Green Economies – The Wilson Center and Inter-American Development Bank (IDB) host a high-level discussion on Thursday at 9:00 a.m. with senior Argentine and Chilean authorities and influential private sector actors about the future of Latin America’s lithium sector and its global implications.

CSIS Looks at Deep Decarbonization – On Thursday at 10:00 a.m., CSIS launches its Climate Solutions Series, a year-long initiative which will bring together a wide range of audiences over six sessions to examine global pathways to net-zero greenhouse gas emissions in different sectors of the economy.  The first session will look at various pathways to net-zero emissions, ranging from a significant reduction in fossil fuel consumption and major behavior changes with little reliance on “negative emissions,” to smaller structural changes with a heavy reliance on technologies to reduce carbon from point sources and the atmosphere. The event will feature a presentation on these various pathways, followed by a facilitated discussion featuring perspectives from national, state, and city government officials.

USEA Annual Energy Forum Set – The U.S. Energy Assn holds its annual State of the Energy Industry Forum on Thursday at 10:00 a.m. at the National Press Club.  USEA begins each calendar year with its widely- recognized State of the Energy Industry Forum.  The Forum brings together distinguished leaders from the most influential energy trade associations to share their outlook and to discuss dynamic issues facing the energy industry in the New Year.  Speakers include many of our friends Including SEIA’s Abby Hopper, INGAA’s Don Santa, NRECA’s Jim Matheson, AGA’s Karen Harbert, AFPM’s Derrick Morgan, NEI’s Maria Krosneck, AWEA’s Tom Kiernan and several others.

FERC Open Meeting – Thursday.  The meeting agenda may be found at: https://www.ferc.gov/CalendarFiles/20200116174503-sunshine.pdf

Brookings to host Former UN Climate Ban Ki-Moon – On Friday at 10:00 a.m., Foreign Policy at Brookings will host former U.N. Secretary-General Ban Ki-moon and former Irish President Mary Robinson for an Alan and Jane Batkin International Leaders Forum addressing the climate change and its implications. In their respective international leadership roles, Ban and Robinson have been prominent advocates of bringing climate change to the top of the global agenda, promoting sustainable development and highlighting how environmental degradation has disproportionately affected people in developing countries, especially women.  Brookings Vice President and Director of Foreign Policy Bruce Jones will provide introductory remarks. Following remarks by Ban and Robinson, Brookings Senior Fellow and the SK-Korea Foundation Chair in Korea Studies Jung H. Pak will join them on stage for a conversation on climate change, human rights, adaptation measures, and global leadership in the face of a climate emergency.

Former Gov. Brown to Talk Climate at CAP – On Friday at 10:00 a.m. the Center for American Progress hosts a conversation between two of the most prominent advocates for green economic transformations from both sides of the Atlantic. Robert Habeck, co-chair of the German Green party, and former governor of California Jerry Brown (D) will discuss the urgency of the climate crisis; state of climate policy and activism in the United States and Europe; and an agenda for global action for 2020 and beyond.

SEJ Launches 2020 Journalists Guide – The Society of Environmental Journalists will hold its annual Policy roundtable and release its 2020 Journalists’ Guide to Energy and Environment on Friday in a forum at the National Geographic Society In Washington.   Our friend Jeff Burnside presents the Journalists guide while NYT’s Lisa Friedman, E&E’s Jennifer Hijazi and others discuss the issues. 

IN THE FUTURE

WM Phoenix Open Set Features Sustainability Roundtable – Waste Management hosts the 2020 Phoenix Open on January 27^th to February 1^st.  Known as “The Greatest Show on Grass,” the Waste Management Phoenix Open has gained legendary status for being unlike any other tournament on the PGA Tour. From the notorious 16^th hole and star-studded Birds Nest music festival to the biggest names in professional golf, this event also features the annual Sustainability Forum on Thursday January 30^th featuring WM CEO Jim Fish, former UN climate official Christine Figueres and former Secretary State John Kerry.

USEA Hosts WY Carbon Research Team – The US Energy Assn will host a forum next Monday at 11:00 a.m. with Wyoming Infrastructure Authority Exec Director Jason Begger. In 2014, the State of Wyoming formed a private/public partnership with utilities to construct and operate a one-of-a-kind carbon research facility at Basin Electric Power Cooperative's Dry Fork Power Station, the Wyoming Integrated Test Center (ITC).  Five years later, researchers are working on novel technologies to improve and commercialize carbon capture and utilization methods.  Wyoming's multi-faceted, technology driven approach is advancing not only efforts in the U.S., but how carbon can be effectively managed across the globe.

USEA Holds CCUS Workshop – The US Energy Assn is hosting a CCUS Roadshow starting on Tuesday January 28^th. The D.C. workshop is the first in a series of day long programs in six different cities on Carbon Capture Utilization and Storage. Speakers are leading experts on CCUS in the United States and are taking their time to give you their insights, experiences and expectations over seven sessions. The goals are to present the latest developments and activities in these areas and to reach the broader and growing stakeholder community looking to CCUS for large scale CO2 management. This workshop and roadshow will give insight for finding commercial opportunities in supplying and developing projects, infrastructure, 45Q tax credit, corporate responses to CSR/ESG and carbon management. Other topics to be discussed include new areas such as waste plastics destruction, carbon neutral petro-chemical feedstocks, transportation fuels and electricity generation.

BPC to Host EIA Energy Outlook – On January 29^th, EIA will release its 2020 Annual Energy Outlook (AEO) at a public event hosted by the Bipartisan Policy Center. EIA releases its Annual Energy Outlook each year to provide updated projections of U.S. energy markets.  The event will feature a presentation by EIA Administrator Dr. Linda Capuano followed by a panel discussion on the challenges and market trends facing the electricity sector, including Southern’s Charles Rossman. The Annual Energy Outlook provides modeled projections of domestic energy markets through 2050, and it includes cases with different assumptions about macroeconomic growth, world oil prices, and technological progress. The EIA, the statistical and analytical agency within the U.S. Department of Energy, is the nation’s most authoritative source of data, forecasts, and analysis of the U.S. energy market.

Reporters to Discuss Climate Challenge – The DC Climate Citizens Lobby hosts a forum on Wednesday night at Busboys and Poets with Mother Jones Rebecca Leber, TIME’s Justin Worland and others to discuss climate.  

Yale Forum on Carbon Neutral Construction Set – On Friday, January 31, AIA Connecticut, in collaboration with the CT Green Building Council will host an important Net Zero Schools Summit in Rudolph Hall at the Yale School of Architecture. The event hosts and sponsors will assemble a group of thought leaders and experts from across the country to discuss the issues of sustainability, carbon sequestration in construction, and construction methods to achieve Net Zero schools and move the design and construction industries toward a carbon positive future.  The Summit’s goal is to host a candid discussion of sustainability and design of Net Zero schools with a goal of providing actionable information for the stakeholders behind school design and construction as it relates to carbon impacts of the built environment.

Super Bowl LIV – Sunday February 2^nd

Iowa caucuses – Monday February 3^rd

State of the Union – Tuesday February 4^th

International HVACR Conference Set – The International Air-Conditioning, Heating, Refrigerating Expo is set for February 3^rd to 5^th in Orlando.  The AHR Expo is the world’s largest HVACR event, attracting the most comprehensive gathering of industry professionals from around the globe each year. The Show provides a unique forum where manufacturers of all sizes and specialties, whether a major industry brand or innovative start-up, can come together to share ideas and showcase the future of HVACR technology under one roof.

Forum to Look at CCS – The Atlantic Council holds a forum on Wednesday February 4^th at 3:00 p.m. to look at the global status of CCS technologies.  This event explores the current status of carbon capture and storage, the next generation of CCS projects, policies, and technologies taking shape around the world, and the important role they play in global decarbonization.

State Energy Officials Look at Policy Issues – The National Association of State Energy Officials 2020 Energy Policy Outlook Conference and Innovation Summit will be held on February 5^th to 7th at the Fairmont Hotel in Washington, DC.  The conference will examine the key policies and initiatives needed to drive modernization and resilience across our energy infrastructure – grid, pipelines, buildings and transportation.

EPA Speaker to Address Enviro Law – ELI hosts the Environmental Law 2020 conference on February 6 – 7^th at the Washington Plaza Hotel in D.C.  Peter Wright, Assistant Administrator for the EPA’s Office of Land and Emergency Management, will deliver the keynote address on the second day of the program.  Prior to serving at the EPA, Mr. Wright was managing counsel for environmental, health, and safety matters for Dow Chemical Company. In addition to federal and state-led remediation matters, he also oversaw Dow’s Superfund site responsibility. You can see a complete agenda and other program details here.

National Ethanol Conference ready for Houston – The National Ethanol Conference is set for February 10^th to 12^th in Houston at the Marriott Marquis.  The forum focuses on marketing, legislative and regulatory issues facing the ethanol industry.

Sustainable Energy Factbook Forum Set – BloombergNEF and the Business Council for Sustainable Energy (BCSE) will be releasing the 2020 Sustainable Energy in America Factbook in Washington, DC, on February 13^th.  In its eighth year, the Factbook provides new industry information and trends for the U.S. energy economy, with an in-depth look at the energy efficiency, natural gas and renewable energy sectors as well as emerging areas such as digitalization, micro-grids, offshore wind, hydrogen and renewable natural gas.

Powell, former DOE Official headline CCS Forum – The Global CCS Institute holds its 9^th annual DC Forum on March 3^rd The Forum features stakeholders from across the private sector, the government, and the NGO community to discuss how we supersize the next wave of carbon capture projects. Policy incentives in the United States, such as 45Q and California's Low Carbon Fuel Standard, are driving dozens of new projects across various sectors including power, industrials, and transportation fuels. Speakers will include former DOE official Julio Freedman (now at Columbia), ClearPath’s Rich Powell, DTE’s Mark Rigby and Louisiana State Energy Officer Jason Lanclos.

ACORE Policy Forum Set – The 2020 ACORE Policy Forum is set for March 4^th at Convene.  This year, the event will address the most important issues facing the renewable energy industry, such as the implications of the 2019 tax extenders agreement, the prominence of climate in the 2020 election and more. Panelists and keynote speakers will explore a variety of topics within four key themes, including the latest from Congress, Clean Energy Standards, Climate and Power Markets/Transmission.

Solar Conference Set for SD – Infocast is holding its Solar + Storage Finance & Investment Summit on March 17^th at the Omni LaCosta Resort in San Diego.  The forum focuses on innovative deals, discuss structures and investment challenges, and assess the opportunities that come with implementation and integration.