Energy Update: Week of July 11th

Friends,

Hope you all enjoyed the July 4^th break.  The slower schedule last week allowed for some Wimbledon time, which was won by Novak Djokovic (his 4^th straight) and Elena Rybakina (her 1^st)

This week, we are paying close attention to the President trip to the Middle East and Saudi Arabia.  While the Administration says it is about many things, we know they will be discussing oil and gas.  While the Admin officials say it is not about gas prices, we know it is…Speaking of they are dropping dramatically as summer driving slows a little.  Ive seen prices in MD and VA around $4.35-4.40. 

Congress is back and Senate reconciliation talks will heat up. Of course, there may be delays now that Senate Majority Leader Schumer has COVID and Sen. Leahy is on the mend do to a hip injury, but talks will continue with really only a three- (maybe four-) week window to get it done. The House will vote on its first spending package for fiscal year 2023 this month that will bundle six bills including the Energy-Water and Interior-Environment measures.

On hearings, there could be some fireworks at the Senate Approps hearing on Interior’s budget with Sect Haaland on Wednesday. Of course, she has been under pressure from both sides over the Administration’s 5-year plan released July 4^th weekend Friday.  Also Wednesday, Senate Energy looks at lowering energy prices and House Science looks at nuclear waste.  On Friday, the House Select Climate Committee discusses farm/climate supply chain meets on Friday.

The US Chamber’s Global Energy Institute holds a forum on Thursday for the latest installment of its EnergyInnovates event series focused on Infrastructure and Technology Foundations for CCUS and the Hydrogen Economy.

It will be a crazy few weeks as we run up to the August recess and mid-term elections. Our team of experts, Liam Donovan and others are tracking closely and can help on background.  And check out the WV v EPA follow ups below from Volts (Dave Roberts), Columbia Energy Exchange, The Atlantic and more…. 

Remember TODAY IS 7-11 so remember to get your FREE SLURPEE….Call with questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

FRANKLY SPOKEN

“We’re not making any money off of selling gasoline. The store sales — that’s how they can stay in business. In a time of rising prices, it's so competitive, and sometimes they're selling gasoline at a loss just to keep people inside the store.”

Rob Underwood, president of Energy Marketers of America, which represents some 60,000 retail fuel stations nationwide, said market conditions are pushing some stations in an already “cutthroat” business to do anything to gain a competitive edge.

ON THE PODCAST

Volts Hosts CATF Attorney on SCOTUS React, Fall out – Our friend David Roberts hosts Clean Air Task Force attorney Jay Duffy on his Volts podcast this week.  Duffy was responsible for several of the key briefs and arguments in the case, and they discuss not only what the Roberts’ decision says, but what it portends for subsequent cases.

ICYMI: Holmstead, Gerrard Talk SCOTUS., WV/EPA on Columbia Podcast – While I sent this last week on Wednesday, I wanted to re-forward in case you were out.  In its Columbia Energy Exchange podcast, the Center on Global Energy Policy at Columbia has a breakdown of the decision and its implications for climate regulations moving forward.  Host Bill Loveless spoke with legal experts Michael Gerrard and Jeff Holmstead. Gerrard is founder and director of the Sabin Center for Climate Change Law at Columbia University and has pioneered innovative legal strategies and teaches courses on environmental law, climate change law and energy regulation. Of course, Holmstead heads the Environmental Strategies Group at the law firm Bracewell and served as assistant administrator for air and radiation at the EPA under President George W. Bush from 2001 to 2005. During his tenure, he was one of the architects behind the Clean Air Interstate Rule, the Clean Air Diesel Rule and the Mercury Rule for power plants. The pair discussed precisely how the rule curbs the EPA’s power, where it stops short, and the kind of legal precedence it sets for future cases.

FUN OPINIONS

Former Interior Sect Blasts Biden Offshore Drilling Decision on 5-Yr Plan – In an interview with Fox Business, former Interior Secretary David Bernhardt slammed the Biden administration over its proposed five-year offshore oil and natural gas drilling program, saying, "Since day one, this administration has put climate activism over energy independence and energy security." "You have to recognize that energy produced here is some of the cleanest in the world, the regulatory paradigm is the best and they've decided, not only that they are for climate activism, but they are more than happy to lean forward for international production of energy," Bernhardt added.

FROG BLOG

Atlantic Q&A  with Stanford Law Expert – In a Q&A on the SCOTUS WV v EPA Case, The Atlantic’s Robinson Meyers spoke with Stanford Law’s Michael Wara about what the Court’s climate ruling in WV v. EPA does—and doesn’t—mean for decarbonization.  It is a great read and is very well-reasoned. 

FUN FACTS

• OPEC+ Not Coming through on Production Side:  In spite of the recent global energy shortage, OPEC+ restricted its oil production by about 100,000 bpd; of all 13 cartel members, Saudi Arabia had the largest production decline.
• We Have a Way to Go: The US uses about 97 quadrillion British thermal units (quads) of primary energy each year. About 79% of energy consumption comes from fossil fuel sources; about 21% is derived from renewable sources and nuclear. (Note: this is the first time since 1900 that the US generated less than 80% of its energy from fossil fuels.

IN THE NEWS

EU Parliament Backs Green Tag for Nuclear, Gas Power – The European Parliament last week backed European Union rules putting a “green” label on nuclear and natural gas investments, a decision that will ease construction of infrastructure for those power sources over the objections of some environmentalists and members of the bloc. The vote paves the way for the EU proposal to become law and will add gas and nuclear plants to the EU “taxonomy” rulebook from 2023, which seeks to guide spending toward projects in line with the bloc’s climate goals. The action comes as Europe tries to cut its dependence on Russian fossil fuels amid the war in Ukraine and lean on nuclear and natural gas to help bridge a transition to renewable energy. The effort has prompted intense backlash from some member states, including Austria and Luxembourg, as well as environmental group Greenpeace, which all said that they plan to challenge the decision in court.

McKinsey: Chemicals are Future of Refineries – A new report from McKinsey & Co. says demand for oil products will continue to decline as the energy transition accelerates and there's a huge opportunity to repurpose refineries for chemical feedstock production. The team discusses new process technologies and strategies to help prepare existing refineries for the shifting energy landscape. Forward-looking refiners are already looking for opportunities to adjust or modify their production modes to capture growing demand for petrochemicals by, for example, increasing their output of naphtha, propylene and reformate, the building blocks of other petrochemicals. Refineries already produce some petrochemical feedstocks but typically at rates no higher than 10 percent of total output. The report says the world’s refiners must fundamentally rethink how refineries are designed and operated. Given how long it takes to make capital investments and build new plants, they should begin this review now. In this article, we consider the emerging options available to refineries in terms of technology and overall operations strategy.

Poll Finds Strong Bipartisan Support for Climate Solutions Rooted in Economic Freedom – C3 Action released a poll showing strong Republican and bipartisan support for a climate and freedom agenda based on economic freedom. The poll was conducted by the CT Group, an international research firm, in the critical battleground swing states of Arizona, Georgia and Michigan in June 2022. The 1,500 responses include a margin of error of 3.1 percent. 

ON THE SCHEDULE THIS WEEK

CSIS Hosts State Energy Leaders – All this week, CSIS  and the Sloan Foundation will hold a series of events as part of its Clean Resilient States Initiative event series.  The events will feature conversations with state leaders of climate and energy.  The series starts TODAY at 1:00 p.m. featuring Massachusetts Undersecretary of Energy and Climate Solutions Judy Chang. Tomorrow, they feature Illinois State General Assembly Rep Ann Williams.  On Wednesday, Oregon Department of Energy Director Janine Benner and on Thursday New Mexico Energy, Minerals and Natural Resources Cabinet Secretary Sarah Cottrell Propst.

Brookings to Discuss Transportation – Today at 2:00 p.m., Brookings Metro will host an event exploring the future of U.S. transportation policy through a state-level lens. Speakers will highlight findings from a recent University of Texas study surfacing how lawmakers are framing the prospects for state-level policy innovation, particularly with respect to transportation funding and energy transition. A panel of state legislators will follow, discussing their priorities, strategies for aligning key stakeholders, and how new federal funding is affecting legislative agenda-setting.

WCEE to Talk Ukraine, NatGas – The Women’s Council on Energy and the Environment (WCEE) will host Olga Bielkova, Director Corporate Affairs, Gas Transmission System Operator of Ukraine at a virtual Women in Leadership Series event on Wednesday at 9:00 a.m.  The conversation with Bielkova will be moderated by WCEE Women in Leadership (WIL) co-chair, Olga Khakova, Deputy Director for European Energy Security at the Atlantic Council Global Energy Center. 

Forum to Discuss CCS Policy – E&E News reporters Carlos Anchondo, Corbin Hiar, Jeremy Dillon and Kristi E. Swartz will hold a forum tomorrow at 10:00 a.m. to provide insights into the state of play for CCS projects and policies.

Forum to View Climate Accelerators – The Environmental and Energy Study Institute (EESI) holds a briefing tomorrow at Noon on how startup accelerators can transform innovative ideas into deployable, scalable climate change solutions. During this briefing, panelists will discuss how accelerators help commercialize early-stage technologies that have the potential to transform the fight against climate change, and steps Congress can take to bolster U.S. private sector momentum to deploy cutting-edge climate solutions in the United States.

Forum to Look at SCOTUS Climate Case – Environmental Law Institute holds a forum tomorrow at Noon on analyzing the Supreme Court’s Decision in West Virginia v. EPA. The panel will consider questions raised by the justices’ opinions and discuss what the decision will mean for environmental law, administrative law, and EPA’s power to act on climate change.

Forum to Look at Electric Heat Pump water Heaters – Tomorrow at 3:00 p.m., the Advanced Water Heating Initiative (AWHI), EEBA and Electrify Now hold a webinar that will profile three American homebuilders who are installing heat pump water heaters in new homes and loving it. The discussion will highlight the experiences these builders have had with the technology.

Atlantic Council to Launch Cyber Threat Report – The Atlantic Council Global Energy Center and the Cyber Statecraft Initiative tomorrow at 3:30 p.m. will launch a new report, “Securing the Energy Transition against Cyber Threats.” Secretary Michael Chertoff, Co-founder and Executive Chairman of The Chertoff Group and Former Secretary of Homeland Security, and General Wesley Clark, CEO of Wesley K. Clark & Associates and Former Supreme Allied Commander of Europe, served as co-chairs of the Task Force and will deliver keynote remarks, followed by a panel discussion. Panelists will examine the steps the public and private sectors can take to create cyber-aware workforces, upgrade vulnerable infrastructure and supply chains, and improve information sharing capabilities. The discussion will also address recommendations from the report which concern government command structure, organizational roles and responsibilities, and the effectiveness of federal vehicles that support cyber resilience in the energy sector.

Haaland Visits Senate Approps on Interior Budget – The Senate Appropriations Committee panel on Interior, Environment hosts Secretary Haaland on Wednesday at 10:00 a.m. for a review of the FY23 President’s Budget for the Department of Interior.

House Science Looks at Nuke Waste Cleanup – The House Science Committee holds a hearing On Wednesday at 10:00 a.m. with DOE’s Nuclear Waste office to review nuclear waste cleanup research and development opportunities.

OEP Looks at Storage – On Wednesday at noon, OurEnergyPolicy holds a forum on energy storage and the headwinds in the form of affordability, policy support, and the ease of commercialization of new technologies. This webinar will examine the role of innovation in advancing energy storage with panelists examining the state of new technologies, new policy approaches to support deployment and commercialization, and the role of financing in transforming the market.  White House Office of Domestic Climate Policy John Rhodes is among the panelists. 

BPC Hosts Event on Improving Permitting – On Wednesday at 2:00 p.m., the Bipartisan Policy Center, National Association of Counties, and National League of Cities will host Federal Permitting Improvement Steering Council (the Permitting Council) Executive Director Christine Harada to discuss the agency’s efforts to improve the permitting process to deploy infrastructure projects more quickly. Timely delivery of infrastructure projects is essential to advance national climate goals and bring modernized infrastructure and jobs to meet the needs of communities. The Permitting Council, which was permanently authorized as part of the Bipartisan Infrastructure Law, is the agency tasked with improving federal infrastructure permitting and will play a crucial role in ensuring that new federal infrastructure investments are deployed efficiently and impactfully.

Senate Energy to Look a Energy Prices – The Senate Energy Committee holds a hearing on Wednesday at 2:30 p.m. to examine pathways to lower energy prices in the United States.  Witnesses include ND PSC Chair Julie Fedorchak, Kauai Island Utility Co-op head David Bissell, Rhodium’s John Larsen and ND Petroleum Council head Ron Ness.

Forum to Host REsurety Exec on Energy Transition – On Wednesday at 3:30 p.m. the Atlantic Council Global Energy Center for the next episode of EnergySource Innovation Stream. The event will feature David Luke Oates, senior vice president of power markets research at REsurety, to discuss the company’s approach to calculating carbon displacement and optimizing the emissions reductions potential of energy installations.

Chamber Forum to Look at CCUS – The U.S. Chamber’s Global Energy Institute holds a forum on Thursday, at 9:00 a.m. for the latest installment of its EnergyInnovates event series, Infrastructure and Technology Foundations for CCUS and the Hydrogen Economy. The event will feature a discussion with Assistant Secretary Brad Crabtree from the Department of Energy’s Office of Fossil Energy and Carbon Management and several leading industry experts.

Forum to Preview COP 27 – On Thursday at 10:00 a.m., he Middle East Institute holds a forum to Preview COP 27 in Egypt.  The event will focus on expectations and stakes for the meeting and what it will mean to Egypt.

DOE Holds Webinar on Critical Mineral Supply Chains – The DOE’s EERE’s Advanced Manufacturing Office and the US Energy Assn hold a discussion on Thursday at 11:00 a.m. about leveraging the Bipartisan Infrastructure Law to develop critical material supply chains for magnets, batteries, electrolyzers and fuel cells and semiconductors. 

Forum to Look at Emergency Management – The Environmental and Energy Study Institute (EESI) holds  a briefing Thursday at Noon on how the federal government as well as states and cities around the country can better incorporate equity into emergency management. Panelists will discuss the steps that Congress can take to more comprehensively integrate equity into emergency management, including how to ensure that large federal investments such as the ones in the bipartisan Infrastructure Investment and Jobs Act do not cause harm to communities.

Forum to Look at States Energy Storage – On Thursday at 2:00 p.m., Clean Energy States Alliance holds a forum on delays and cost increases on energy storage.  The event looks at what is happening in the industry and what to expect next. The webinar will feature speakers who will address the impacts of these global events on their energy storage projects now in development, provide an overview of the global energy storage industry and a look at trends that may help us understand what to expect in the coming months and years.

House Climate Committee to Look at Resilient Food Supply Chain – On Friday at 9:00 a.m., the House Select Climate Committee holds a hearing on pathways to create a sustainable food system that is resilient in the face of climate change. It will also explore solutions to reduce heat-trapping pollution in the food chain supply, while ensuring access to affordable, safe, and healthy food for all Americans.

Q&A with Rare Earth Expert Set – On Friday at Noon, the Institute for Policy Studies holds a webinar on rare earth elements and the global supply chain. 

IN THE FUTURE

Carbon Capture Forum Set – Next Monday at 2:00 p.m., the Environmental Law Institute holds a forum on the role of carbon capture and direct air capture technology in climate strategy.  DOE’s Jennifer Wilcox and former DOE official Julio Friedmann will speak.                                    

Forum to Look at Net Zero in Global South -- On Tuesday July 19^th at 10:0 a.m., the Carnegie Endowment for International Peace Africa Program holds a forum on net zero.  The event features an in-depth expert panel discussion of the transition plans from Nigerian and Indian experts and the implications for the rest of the world.

India Forum to Feature DOE’s Turk – On Wednesday July 20^th from 9:00 a.m. to 12:00 p.m.,  the CSIS Wadhwani Chair in U.S.-India Policy Studies and the National Association of State Energy Officials (NASEO) hold an event the critical role of addressing climate change, whether by advancing clean energy technologies, demonstrating the viability of innovative policy and regulatory approaches, or engaging stakeholders to manage the impacts of the transition. This meeting will bring together policy leaders in both countries to explore opportunities for continued subnational and international cooperation and best practice exchange in financing, technology, and policy innovation.

CSIS to Host Whitehouse on Carbon – On Wednesday July 20^th at 9:00 a.m., the Center for Strategic and International Studies Scholl Chair in International Business and the Energy Security and Climate Change Program holds a conversation with Senator Sheldon Whitehouse to discuss his Clean Competition Act, which aims to establish a U.S. border carbon adjustment mechanism. The U.S. equivalent of the European Union's CBAM, this legislation would impose a border adjustment on imported goods based on their carbon intensity.

Forum Set for NatGas – On Wednesday July 20^th at 12:00 noon, Energy Dialogues hosts a forum to discuss natural gas And its role in the energy transition.  Topics will Include finance, contracts, Ukraine’s impact and the current state of play in Europe and the US.  Our friend Kevin Book will be among the speakers.

AEI looks at SCOTUS Term – On Thursday June 21^st at 5:30 p.m., AEI, the Pacific Legal Foundation, and the National Review Institute will recap the term’s biggest rulings and other important issues surrounding the future of the Court.  Speakers will include WSJ Supreme Court Correspondent Jess Bravin, AEI’s Ramesh Ponnuru, Elizabeth Slattery of the Pacific Legal Foundation and former DOJ official and AEI Fellow John Yoo.

Congressional Energy Efficiency Expo Set – The Environmental and Energy Study Institute (EESI) and the House and Senate Renewable Energy and Energy Efficiency (REEE) Caucuses hold the  online on July 25^th. Building on the more than 20 years of experience hosting clean energy leaders from various sectors, the event showcases technology and policy solutions to today’s climate and energy use challenges.