Energy Update: Week of July 1

Friends,

Welcome to July 4^th Week!!!  Always a great opportunity to review our history and learn interesting facts, like:

• The Declaration of Independence began as a letter to King George to explain why the Continental Congress voted to declare independence from Great Britain.
• The Declaration of Independence was started on July 2, 1776 and the Continental Congress approved the final wording on July 4.
• The first Independence Day was celebrated on July 8, 1776 and the official signing took place on August 2.
• 56 people signed the Declaration of Independence, including famous signers like John Adams, John Hancock, Samuel Adams, Thomas Jefferson and Ben Franklin to the obscure like New Hampshire’s Josiah Bartlett (where have we heard that name before?) and PA’s George Ross and John Morton who both died shortly thereafter.  See the full list here.

Not much going on this week, but today RFF releases its 2019 Global Energy Outlook: The Next Generation of Energy, an annual review of global energy market projections by leading international energy organizations and corporations around the world.  Also, this afternoon, following the announced closure of the PES refinery that was damaged by a serious fire, Steelworkers will meet with local officials about the future of the facility at 3:00 p.m.

Despite celebrating with some barbeque and fireworks, we will be monitoring the action so feel free to reach out on email or cell. 

Finally, we will also likely be out of pocket tomorrow at 3:00 p.m. when the US Women’s team takes on England in the Women’s World Cup semifinal.  The Netherlands challenges Sweden in the other semifinal on Wednesday.  

Call with questions,

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

 

FRANKLY SPOKEN

“Enough is enough. The United States cannot continue to allow a cartel run by Saudi Arabia and including Iran, alongside its petrostate allies like Russia, to operate in flagrant violation of established antitrust norms.”

SAFE’s Robbie Diamond on the recent announcement that OPEC will again cut production

 

“The Trump administration must protect America’s small refineries. The Clean Air Act requires EPA to grant relief to any small refinery that suffers disproportionate economic hardship from the Renewable Fuel Standard.” 

Sen. John Barrasso, urging EPA Administrator Andrew Wheeler to support small refineries across America by continuing to issue Small Refinery Exemptions

 

ON THE PODCAST

Columbia Podcast Focuses on Utilities Reducing Emissions – When it comes to reducing greenhouse gas emissions in the U.S., the private sector is playing a bigger role than ever before, and that goes for some energy providers, too. Among them is Xcel Energy, the first major U.S. utility to pledge to go entirely carbon-free.  In this edition of Columbia Energy Exchange, host Bill Loveless sits down with Ben Fowke, the chairman, President and CEO of Xcel Energy, which in December announced a bold commitment to provide 100% carbon-free electricity to its customers by 2050. Not only that, but Xcel also set a goal of cutting the company’s carbon emissions by 80% by 2030, compared to 2005 levels.  Since then, other utilities have also unveiled major carbon-cutting initiatives. Among them Idaho Power and Public Service Company of New Mexico, with goals of 100% carbon-free electricity by 2045 and 2040, respectively.

 

FUN OPINIONS

Farmers Won’t Walk Away From Trump – A new op-ed by political conservative Curtis Ellis underscores why farmers will likely not walk away from President Trump. Trump approved year-round access to gasoline with higher blends of ethanol, boosting demand for corn and, therefore, prices for corn farmers. And while farm groups have long pushed for expanded use of gasoline with 15 percent ethanol, called E15, Trump delivered.  He also did it while preserving industrial jobs in the Northeast by streamlining the EPA’s cap-and-trade-like system for monitoring biofuel production. Ethanol use has remained steady while the administration wisely continues to exempt independent refineries from onerous regulations.

IN THE NEWS

Debate Don’t Generate Much Climate Talk – With the Democratic Presidential Primary debates last week, we were not surprise that climate only played a limited role.  Each night there was only cursory mention well into the discussion.  Green groups and activist politicians criticized both debates moderated by NBC News for failing to ask enough substantive climate change questions.  While debate moderators spent nearly 10 minutes each night asking various candidates about issues related to their climate action plans, critics who have been calling for a single climate-focused debate are arguing it was significantly lacking. 

Kennedy Pressures USDA on Small Refinery Exemptions – Louisiana Sen. John Kennedy is threatening to block confirmation of three USDA nominees until the agency stops intervening in government decisions over whether to grant oil refineries exemptions from biofuel-blending quotas.  Kennedy made the threat in a letter to Ag Sec. Sonny Perdue on Thursday, amid reports the USDA chief has encouraged the EPA to pare its approval of the exemptions or redistributed waived quotas to other refineries.  Federal law “clearly prevents the secretary of agriculture from consultation on these waivers,” Kennedy wrote Perdue.  “Your efforts in this matter not only disregard congressional intent of the law, but also threaten thousands of jobs in Louisiana and across the country.” RINs tracking 2019 conventional biofuel mandates have increased 93% since June 10, a day before President Trump visited an Iowa ethanol plant and was prodded by farmers and biofuel advocates to rein in the exemptions

Senators Weigh In on Exemptions – This followed a statement from Kennedy and 8 other colleagues that urged EPA Administrator Andrew Wheeler to support small refineries across America by continuing to issue Small Refinery Exemptions (SREs). Co-signers included Ted Cruz (R-Texas), John Barrasso (R-Wyo.), Jim Inhofe (R-Okla.), Pat Toomey (R-Penn.), Roger Wicker (R-Miss.), Mike Lee (R-Utah), Mike Enzi (R-Wyo.) and Bill Cassidy (R-La.)

CCS Legislation Pass in Defense Bill – The USE IT Act will be included in the U.S. Senate’s National Defense Authorization Act. USE IT supports research for carbon capture utilization. The legislation would also support construction and development of carbon capture, utilization, and sequestration (CCUS) facilities and carbon dioxide (CO2) pipelines.  U.S. Senator John Barrasso (R-WY), chairman of the Senate Committee on Environment and Public Works (EPW), led the effort with cosponsors Sens. Sheldon Whitehouse (D-RI) Shelley Moore Capito (R-WV), Tom Carper (D-DE), Tammy Duckworth (D-IL), Kevin Cramer (R-ND), Tina Smith (D-MN), Joe Manchin (D-WV), and Mike Enzi (R-WY).  Rich Powell said “the USE IT Act, along with the 45Q incentive, have the potential to dramatically boost commercial carbon capture deployment in the U.S., which can lead to significant increases in enhanced oil recovery and other economic benefits. Facilitating the build out of carbon dioxide pipelines and related infrastructure backed by the USE IT Act is a logical next step to facilitate U.S. carbon capture technologies.”

OPEC To Cut Production Again – OPEC plans to extend its cuts into the second half of the year following a round of oil output cuts earlier this year that lifted prices, And the cartel intends to press non-compliant producers to live up their promised output curbs. Saudi Arabia cut its oil output by 600,000 barrels per day more than they promised last month, but Iraq, OPEC's second-largest producer, and Nigeria, which has traditionally been Africa's largest oil country, exceeded their output goals by 300,000 barrels a day in May.  As the OPEC cartel, in coordination with its OPEC+ allies like Russia, prepare to extend their production cuts of 1.2 million barrels per day, Securing America’s Future Energy (SAFE) President and CEO Robbie Diamond said once again, “a cartel sharing neither U.S. strategic priorities nor values colludes on oil production levels that affect market prices and consumers worldwide. And now Iran rejoins the party, supporting oil production cuts. If a group of companies manipulated the price of any other product by cutting supply to drive up costs, it would be considered a violation of U.S. antitrust law under the Sherman Act, which promotes free, fair and healthy competition. If we do not apply that same standard to oil—the world’s most important commodity—American energy security will continue to be undermined by an unaccountable cartel no matter how much oil the United States produces.”  Between 1970 and 2015 alone, $3.4 trillion was transferred from the United States to foreign oil producers simply to account for oil price inflation by OPEC. In addition, the U.S. military spends $81 billion every year to secure the global oil supply, ensuring uninterrupted supply of the cartel’s oil to market. Ahead of this week’s OPEC meeting, Iran’s oil minister endorsed longer-term cooperation among OPEC and its petrostate allies, saying “Iran supports co-operation with non-OPEC states,” adding elsewhere that he has “no problem with a production cut.”

 

ON THE SCHEDULE THIS WEEK

July 4^th Congressional Work Period – June 28^th to July 7^th

RFF to Release Global Energy Outlook – Next Monday, July 1^st at 12:00 Noon, Resources for the Future (RFF) hosts the launch of the 2019 Global Energy Outlook: The Next Generation of Energy, RFF’s annual review of global energy market projections by leading international energy organizations and corporations around the world. The only such report of its kind, RFF’s 2019 Global Energy Outlook harmonizes analyses from other organizations to allow for a clear understanding and easy comparison of potential future energy markets, energy security scenarios, climate trajectories, and policy options at global, regional, and national levels.  The report is accompanied by an interactive web tool, which allows users to visualize, compare, and download harmonized data from each projection.  Register now to attend an in-depth conversation on the 2019 Global Energy Outlook with RFF President Richard G. Newell, RFF Senior Research Associate Daniel Raimi, and Center for Strategic & International Studies (CSIS) Senior Vice President Sarah Ladislaw, moderated by Axios Energy Reporter Ben Geman. Panelists will explore some of the potential outlooks for energy markets, such as coal consumption in China, oil consumption in India, solar power in the United States, and associated carbon dioxide emissions.

Steelworkers to Meet with Local Officials about PES – The United Steelworkers (USW) today said that members and leaders of its Local 10-1 will meet with Rep. Mary Gay Scanlon, dozens of state lawmakers and other elected officials at 3 p.m. on Tuesday, July 2, 2019, to discuss the future of the refinery, which was badly damaged during an early morning fire on Friday, June 21, 2019.  The union remains focused on preserving the jobs of almost 2,000 workers directly employed by PES and thousands more throughout the region whose employment depends on the refinery to some degree.

USW Local 10-1 President Ryan O’Callaghan, Rep. Scanlon, Deputy Mayor of Labor for the City of Philadelphia Richard Lazer and other speakers will address the immediate future of the facility and its workers, as well as options to resume production and the potential long-term consequences for the regional and national economy if the refinery is permanently shut down.

Forum Focuses on Scandinavian Green Transition – American-Danish Young Professionals, the Swedish-American Chamber of Commerce and Norwegian-American Chamber of Commerce host an event focusing on Scandinavian Businesses in the Green Transition. There will be presentations on what Scandinavian companies are doing to combat climate change and lead the way toward a greener future with renewable technology.

GSA to Look at Green Buildings – The General Services Administration holds a meeting by teleconference on Wednesday at 3:00 p.m. of the Green Building Advisory Committee's Data-Integrated Building Systems Task Group on accelerating the successful transformation of the Federal building portfolio to sustainable technologies and practices.

 

IN THE FUTURE

ARPA-E Innovation Summit Set – On July 8^th to 10^th in Denver. DOE’s ARPA-E hosts its Energy Innovation Summit.  The Summit is an annual conference and technology showcase that brings together experts from different technical disciplines and professional communities to think about America's energy challenges in new and innovative ways. Now in its tenth year, the Summit offers a unique, three-day program aimed at moving transformational energy technologies out of the lab and into the market.

Atlantic Council Oil, Gas Conference Set – Next Monday July 8^th, the Atlantic Council hosts a discussion on the Gas and Oil Technology Collaborate Program (GOT CP).  Pushed by IEA, the effort combines the efforts of government, academia, and industry to explore the role of low-carbon oil and gas in meeting the challenges of growing energy demand over the long term, and support the low-carbon technologies, policy tools, and investments that will positively contribute to anthropogenic climate change. DOE Deputy Assistant Secretary for Oil and Natural Gas Shawn Bennett and Equinor’s Steiner Eikaas will speak among others. 

Weatherization Office Hosts Energy Discussion for Schools – Next Monday and Tuesday, the Weatherization and Intergovernmental Programs Office at DOE are hosting "State, Local, and K-12 Leadership: Unlocking Energy Affordability."  Discussions at this event will focus on the most pervasive barriers on your path to maximizing energy affordability and achieving significant energy and cost savings in the public sector. You can expect interactive sessions that target identified barriers, peer exchanges on strategies and best practices with DOE staff and public-sector leaders from across the country, and collaborative technical assistance planning tailored to your energy priorities.

Briefing to Look at Great Lakes Climate – Next Tuesday in the Capitol Visitors Center, the Environmental Law & Policy Center and the Northeast-Midwest Institute hold a Congressional briefing on the impacts climate change is having on the Great Lakes and the region. In March, the Environmental Law & Policy Center released a report, authored by 18 leading scientists and experts from Midwest and Canadian universities and research institutions, drawing on the array of existing research to assess how the shifting global climate impacts the unique Great Lakes region.  The event features an in-depth conversation about the known climate science in our region and public policies that could help curb climate change’s adverse impacts on the Great Lakes.

Forum to Feature Former Key Committee Heads on Power – R Street’s Legislative Branch Capacity Working Group holds a focused discussion next Tuesday at Noon in the CVC on how Congress makes energy policy and interacts with the agency responsible for the regulation of most of the sector. The Federal Power Act of 1935 and the Public Utility Regulatory Policies Act (PURPA) of 1978 provide a wide delegation of legislative authority to FERC.  Few individuals know the dynamic between Congress and FERC better than the top staff of the committees of jurisdiction. Recent alumni of those committees join R Street’s Energy Policy Director, Travis Kavulla, a former utility regulator, in moderated discussion about how Congress can effectively legislate in this complex policy arena.  Panelists will include Colin Hayes, Former Staff Director at Senate Energy and Tom Hassenboehler, Former Chief Counsel for Energy & Environment at the U.S. House Energy and Commerce Committee.

WCEE Happy Hour – Tuesday July 9^th at Spin DC

Carbon Tax Forum Set to Discuss Luntz Polling – On Wednesday evening in 2045 Rayburn, Students for Carbon Dividends, a national bipartisan, conservative-led campus coalition, that backs the Carbon Dividends holds a forum on the recent polling framework researched by the Luntz Group.   The free-market plan has earned record-breaking support from economists, businesses, environmental groups, and more. It was recently endorsed 3500+ economists across the country—the largest statement of economists in American history.

Forum to Look at State Green Banks – The Atlantic Council hosts an event on Wednesday July 10^th at 5:30 p.m. looking at green banks and whether they are a new tool for governments seeking to harness the benefits of the energy transition that can unlock investment for clean energy projects and initiatives. There are currently fourteen green banks in operation across nine different states and the District of Columbia, and a number of others exist internationally as well. Since 2011, US green banks alone have injected USD 3.67 billion in total investment into local economies, from Hawaii to Rhode Island. Numerous presidential candidates have recently proposed the development of a federal green bank, and legislation has been introduced in both chambers of Congress to formally create one. Join us as we speak with green bank leaders from across the United States about what the green bank movement has accomplished thus far, and where it is headed in the future.  Former FCC Commissioner Reed Hundt, now CEO of the Coalition for Green Capital leads the discussion with state green bank leaders from Rhode Island, Hawaii, Michigan and Connecticut. 

Clean Energy Expo on Cap Hill – The 21^st Annual Congressional Renewable Energy and Energy Efficiency EXPO and Policy Forum is set for Thursday July 11^th to showcase renewable energy and energy efficiency technologies. In every state across the country, these technologies are having a significant impact in business development and job creation in the manufacturing, transmission, power, transportation, and building sectors. The bipartisan House Renewable Energy & Energy Efficiency Caucus is the Expo's honorary co-host.

DOE Energy Efficiency Office Joins Job Fair – The U.S. Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy (EERE) will participate in DOE’s National Nuclear Security Administration job fair on Thursday, July 11^th at the DoubleTree by Hilton Hotel Crystal City. Hiring managers will be on-site to conduct interviews for engineer and physical scientist positions based in Washington, DC, and Golden, CO, and contracting officer positions in Golden, CO.

House Science Looks at Ice Sheets – The House Science Committee holds a hearing on Thursday, July 11^th at 10:00 a.m. on glacial and ice sheet melt in a changing climate.

Wilson Looks at Nuclear, Climate – On Friday, July 12^th at 11:00 a.m., the Woodrow Wilson Center holds a forum on climate change and the inclusion of nuclear energy.  Author Daniel Poneman argues that it does, despite the risks that atomic materials and technology could fall into the hands of terrorists. Drawing on his extensive experience as a former Deputy Secretary of the U.S. Department of Energy and former member of the National Security Council staff, Poneman argues that the issues of atomic power and climate change are inextricably linked. He will address the dangers and offer a series of policy and security proposals premised on cooperation between government and industry to maximize energy benefits and minimize risks.

Cal Energy Summit Set – The 7^th annual California Energy Summit will be held at the Grand Hotel Downtown in Los Angeles on July 16-18.  Our friend Dan Reicher of Stanford’s Taylor Center for Energy Policy will be among the more than 70 speakers.

CSIS to Host Asia Energy Conference – The CSIS Energy & National Security Program hosts a conference on energy investment and infrastructure in Asia. This conference will feature discussions on shared interests from U.S. and regional leaders in Asia's energy future and energy dynamics across the region, including how the energy trade map is changing.  The conference will include U.S. government, private sector, and other expert views on advances in the electric power sector, possible avenues for regional collaboration with the United States, and opportunities for governments and the private sector to advance developments on the energy agenda.  Speakers include State’s Frank Fannon and Sen. Cory Gardner.

IEA to Present Gas Report – The CSIS Energy & National Security Program hosts a presentation on July 17^th at 2:00 p.m. looking at the recent IEA report, Gas 2019: Analysis and Forecast to 2024.  Gas 2019 explores the outlook for global gas supply and demand, the trade in liquefied natural gas (LNG), and the prospects for a global convergence in gas prices.  Jean-Baptiste Dubreuil (IEA) will present the report.  Following the presentation, Nikos Tsafos (CSIS) will moderate a discussion.

Chamber Energy Groups Sets Innovation Forum – The U.S. Chamber's Global Energy Institute hosts “EnergyInnovates: All In” on July 31^st.  The event will showcase innovators, projects, and technologies that have shaped today’s energy landscape – and are laying the groundwork for the future.  It will also feature key industry executives and employees, high-level officials, and notable energy experts.