Energy Update: Week of July 15th

Friends,

Well, I didn’t think this election season could get any more crazy, but the events of Saturday certainly have raised the “unprecedented” moniker to another level. We’ll see how it starts to play out at the Republican National Convention which starts in full force tonight. Many are expecting the potential VP pick will occur today. (probably right after I publish this)

Tomorrow morning, I am headed to “Milwaukee, which is Algonquin for "the good land" to attend the major energy event hosted by the Conservative Climate Foundation, CRES and ClearPath in the afternoon/evening and the Punchbowl energy events on Wednesday.  While I am excited to head over for a couple of days, I will make sure to grab a good Wisconsin Brat.

While I am at RNC through Wednesday night, my politically-savvy colleague Liam Donovan is at the convention through Thursday, so let us know if you are there and want to connect.

It will be slow in DC this week with most Republicans and media headed to Wisconsin. There are a few good event though.

CSIS hosts the bp Energy Outlook and Spencer Dale on Wednesday, while SAFE holds another of its China Competition Webinars on competitive industrial policy on Thursday. Finally on Friday morning, the White House holds a cement/concrete innovation summit hosted by OTSP and featuring PCA’s Sean O’Neill.

In tough times, I also like to get away with my talk about sports and it was a busy week there. Wimbledon finished off yesterday with Carlos Alcaraz straight-setting Novak Djokovic 6-2, 6-2, 7-6 (4) to collect his fourth Grand Slam title at age 21. Barbora Krejcikova won the ladies championship beating Jasmine Paolini for her second Grand Slam trophy. The Tour de France heads into its final week with Tadej Pocacar expanding his lead over Jonas Vingegaard by more than two minutes in the mountainous 15^th stage of Pla d’Adet in the Pyrenees (with the finish this year in Nice as Paris preps for the Summer Olympic games) and Spain won the European Football Championship, beating England, 2-1, for its third title since 2008.  Finally, tonight, MLB hosts it Home Run Derby with the All-Star game set for tomorrow in Arlington, TX.

Hope to see you in Milwaukee (and Chicago in a month as well). Call with any questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932                                                                                                                                          

FRANKLY SPOKEN      

“This is going to be a test case for America’s reindustrialization.”

Joe Quinn, executive director for SAFE’s Center for Strategic Industrial Materials in a Wall Street Journal article about the cost of paying for a new US aluminum plant. SAFE’s Center advocates for more domestic aluminum production to support electric vehicles, solar-energy panels and other manufacturing.

ON THE PODCAST

Columbia Energy Exchange with Holmstead, Gerrard on Chevron – In the most recent episode of the Columbia Energy Exchange podcast, host Bill Loveless interviews air experts Jeff Holmstead and Michael Gerrard about the implications of the Supreme Court’s decision to overturn the Chevron Doctrine.

Long Duration Storage Group Head talks Diversity, Storage – On this week’s Electric Ladies Podcast, Long Duration Energy Storage Council (LDESC) CEO Julia Souder, CEO of LDESC explains the four types of long duration energy storage, how they work and why the diversity is so crucial. 

FUN OPINIONS

Oil Remains a Major Player – In his column on Bloomberg Opinion, oil market expert Javier Blas writes oil isn’t going the way of the dinosaurs yet, highlighting the challenges facing biofuel alternatives.

FROG BLOG

Three Keys to Hydrogen’s Growth – In a blog post last week, API’s Rachel Fox says the U.S. cannot reach ambitious climate and emissions reductions targets without low-carbon hydrogen of all types – including “blue hydrogen” made from natural gas and CCS. Currently, the Biden administration is working to finalize rules for the production of clean hydrogen. Its approach so far provides far greater value to hydrogen production powered by renewable electricity than hydrogen production from natural gas and CCS, even though both methods can similarly achieve very low emissions. There are multiple methods of producing low-carbon hydrogen, and all methods will be needed to achieve the U.S. Department of Energy's goal of producing 10 million metric tons of hydrogen per year by the end of the decade. We should not limit our opportunity to let all technologies compete on a level playing field.

FUN FACTS

US Oil Production Surpasses Others: Estimates from EIA show that the U.S. is already the world's largest oil producer — it's not close anymore, as you can see in this Axios chart — the largest gas producer, and the largest LNG exporter.

IN THE NEWS

New Solar Standards will Protect Consumers – SEIA announced two standards to improve transparency of solar sales and installations. The new standards are designed to ensure transparent, ethical solar sales practices and to raise the bar for safety and durability of rooftop solar and storage installations. Standard 401 will outline training requirements for solar salespeople, helping to establish ethical sales practices and ensure all solar customers have a thorough understanding of their investment before committing. Companies and salespeople trained under this standard will provide customers with comprehensive and clear disclosure of costs, key contract terms and technology information. The second standard, Standard 201, aims to enhance the safety and quality of residential solar and storage installations, helping to minimize risks to homes and businesses and enhance grid reliability.

PROVE IT Act Rolls Out in House – A bipartisan group of more than 20 members of Congress led by John Curtis (R-UT) and Scott Peters (D-CA) introduced the Providing Reliable, Objective, Verifiable Emissions Intensity and Transparency (PROVE IT) Act.  The bill is designed to provide high-quality, verifiable data to support American businesses and ensure fair competition on the global stage. The bill also considers human rights and labor standards of each country producing a qualified product. A Senate version was introduced by Senators Kevin Cramer (R-ND) and Chris Coons (D-DE) and favorably marked up in the Senate Environment and Public Works (EPW) Committee earlier this year. Key Provisions of the PROVE IT Act include:

• Emissions Intensity Study: The Department of Energy, in coordination with other federal agencies, will publish a study within two years to identify the emissions intensity of covered products produced in the U.S. and compare it with those produced internationally.
• Transparency and Accountability: The study will provide detailed, specific, and transparent data on emissions, helping to hold countries with less stringent environmental standards accountable.
• Supporting American businesses: By showcasing the lower emissions intensity of American products, the PROVE IT Act will bolster arguments for promoting U.S. manufacturing and energy production over foreign competitors.
• No new taxes or reporting requirements: The legislation explicitly states that it does not provide any authority to impose new taxes or establish new mandatory reporting requirements on domestic production.

Cosponsors of the legislation include Reps. David Valadao (R-CA), Salud Carbajal (D-CA), Jimmy Panetta (D-CA), Jim Costa (D-CA), Maria Salazar (R-FL), Eric Sorensen (D-IL), Larry Bucshon (R-IN), Troy Carter (D-LA), Seth Magaziner (D-RI), Chrissy Houlahan (D-PA), Steve Cohen (D-TN), Diana DeGette (D-CO), Jack Bergman (R-MI), Ann McLane Kuster (D-NH), Juan Ciscomani (R-AZ), Lori Chavez-DeRemer (R-OR), Andrew Garbarino (R-NY), Blake Moore (R-UT), and Celeste Maloy (R-UT). Supporting stakeholders include the Steel Manufacturers Association, American Iron & Steel Institute, United States Chamber of Commerce, Portland Cement Association, Concrete Reinforcing Steel Institute, Ultra Low-Carbon Solar Alliance, Bipartisan Policy Center Action, and the Climate Leadership Council. After the study’s publication, DOE is directed to update data every five years. Under the legislation, covered products include aluminum, articles of aluminum, articles of cement, articles of iron and steel, articles of plastic, biofuels, cement, crude oil, fertilizer, glass, hydrogen, iron and steel, lithium-ion batteries, natural gas, petrochemicals, plastics, pulp and paper, refined strategic and critical minerals, refined petroleum products, solar cells and panels, uranium, and wind turbines.

CGEP Launches New Program on Trade and the Clean Energy Transition – The Center on Global Energy Policy (CGEP) at Columbia University’s School of International and Public Affairs (SIPA), in partnership with Columbia SIPA’s Institute of Global Politics (IGP), announced the launch of a new Trade and Clean Energy Transition Program (TCET). The program will advance innovative research and build a global community of scholars, thought leaders, and policymakers to address critical issues at the nexus of trade and climate policy. Its inaugural initiative will include an International Dialogue on Climate and Trade that will aim to find common ground on strategies to strengthen global climate action by leveraging the nexus of climate and trade. The launch of TCET comes amid increasing friction between climate and trade priorities as countries around the world pursue the implementation of ambitious policies to accelerate the clean energy transition. It follows the announcement of a White House Climate and Trade Task Force at CGEP’s 2024 Global Energy Summit in April. In announcing the Task Force, Senior Advisor to the President for International Climate Policy John Podesta underscored the growing and essential role of trade and trade policy in the transition to a clean energy future. 

New Report from European Initiative for Energy Security Focused on Russia– As NATO kicks off its Washington Summit, the European Initiative for Energy Security (EIES) publishes a report looking at how Russia has evolved its decades-long strategy of weaponizing energy against the European continent from a broad geopolitical instrument into actual physical attacks. In this publication, Ambassador Andris Piebalgs, Dr. Benjamin Schmitt, and Dr. Frank Umbach, experts on energy and infrastructure security from Latvia, the United States and Germany (biographies below), examine Russian strategies and actions in Europe to date and discuss ways Europe and the U.S., as nations and in multinational organizations like NATO and the EU, can harden their energy infrastructure, build in resilience, and devalue, dissuade and if necessary, defeat the Russian threat.

New Report Looks at Electric Rate Design – The Critical Consumer Issues Forum (CCIF) today released a new report, Exploring Rate Design and Other Regulatory Tools: Maximizing Grid Benefits & The Customer Experience, during an event collocated with the National Association of Regulatory Utility Commissioners (NARUC) 2024 Summer Policy Summit in West Palm Beach, Florida. CCIF is a successful, fourteen-year collaborative that includes members of NARUC, members of the National Association of State Utility Consumer Advocates (NASUCA), and Edison Electric Institute (EEI) member companies.

Exploring rate design as a separate topic for the first time, this latest CCIF report features ten consensus principles developed by participants from the state commission, consumer advocate, and electric company communities in a series of collaborative dialogues this spring. The ten principles represent the group’s consensus in the following three areas:

1. Foundational Issues of Rate Design
2. Rate Design Considerations
3. Customer Education

The report is intended to serve as a foundation for additional dialogue and collaboration among the three core groups, as well as with other relevant leaders and stakeholders in their states and communities and with federal counterparts as warranted. Leaders from each of the major participating organizations commented on the significance of the latest CCIF initiative.

ON THE SCHEDULE THIS WEEK

Republican Convention Heads to Milwaukee – The RNC holds the Republican National Convention this week in the Baird Center in downtown Milwaukee.

• Tomorrow at 4:00 p.m., the Conservative Climate Foundation, ClearPath, the American Conservative Coalition and CRES Forum hold an energy reception at Mitchell Park Domes.
• On Wednesday, Punchbowl News holds a series of forums on energy at the RNC. One panel will feature AGA’s Karen Harbert, EEI’s Dan Brouillette, NEI’s Maria Korsnick and ACP’s Jason Grumet.

Forum Focuses on Russian Ecocide in Ukraine – The Commission on Security and Cooperation in Europe holds a briefing tomorrow at 2:00 p.m. on Russia's ecocide in Ukraine, looking at environmental destruction and the need for accountability. This briefing will highlight the immense scope and scale of the environmental devastation Russia has wrought in Ukraine during its war of aggression, estimate the still-unfolding impacts on the people of Ukraine and its natural environment, and consider the multifaceted challenges to ensuring Russian accountability.

CSIS Hosts bp Energy Outlook – On Wednesday at 9:00 a.m., the CSIS Energy Security and Climate Change Program holds a discussion on bp’s 2024 Energy Outlook with Spencer Dale, chief economist of bp. Joseph Majkut, director of the CSIS Energy Security and Climate Change Program, will moderate. Dale will provide insights into the forces influencing global energy today and through 2050.

Forum Looks at Green Policies in Latin America, Caribbean – The Wilson Center holds a book discussion on Wednesday at 10:00 a.m. on the book "Our Future: A Green Manifesto for Latin America and the Caribbean." Iván Duque outlines in his latest book a roadmap for the countries of the region — with realistic, fundable, replicable, scalable, and sustainable strategies — to join efforts to enable short, medium, and long-term solutions.

USEA, NHA Look at Hydro – On Thursday, USEA and National Hydropower Assn hold a hybrid briefing on a model for enhancing grid reliability and river restoration during the energy transition. This joint briefing will feature a panel of experts to discuss innovative solutions and collaborative strategies for integrating hydropower into the energy transition while ensuring ecological health and community safety. Industry experts, environmental advocates, and public safety experts will come together to highlight successful models of community engagement and partnership, setting a new standard for sustainable and mutually beneficial outcomes. Speakers include USEA’s Mark Menezes and NHA CEO Malcolm Woolf, among others.

SAFE China Competition Webinar Set – SAFE holds a part two of its China/Competition/Power Webinar Series on Thursday at 1:00 p.m. This forum will focus on China’s industrial policy and impact on key industries. Speakers include former State Department Official Rick Switzer, and other long-time China watchers as they discuss China’s hybrid economy and the CCP's industrial policies.

Forum Looks at Taiwan Resilience – The Center for Strategic and International Studies holds a virtual discussion on Thursday at 3:00 p.m. on the importance and implications of resilience for Taiwan.  The event focuses on the ability to withstand external coercion, natural disasters and other threats to the normal functioning of its government, society and economy. The discussion will examine the importance for Taiwan of strengthening its ability to withstand external coercion, natural disasters, and other threats to the normal functioning of its government, society, and economy. The conversation will also look at what lessons can be drawn from countries that prioritize civil defense and resilience, including Finland.

White House holds Cement/Concrete Summit – On Friday morning from 9:00 a.m. to Noon, the White House Office of Science and Technology Policy (OSTP) will host the Concrete Innovation Summit at the White House in the Eisenhower Executive Office Building (EEOB). The event will convene leaders from the U.S. Government, industry, academia, and other stakeholders to celebrate recent progress and highlight the innovations that will be needed for the cement and concrete industries to reduce its emissions and support the national commitment to achieve net zero emissions. The event will include remarks from senior U.S. Government officials, panel discussions showcasing recent progress and opportunities for commercialization, and roundtable conversations to discuss frontiers in market and technology innovation. PCA’s Sean O’Neill is among the speakers.

Forum Looks at SE Asia Enviro Challenges – The Henry L. Stimson Center holds a virtual discussion on Friday at 9:00 a.m. looking at drivers of river level change along the Thai-Lao border. During the 2024 dry season, Dr. Ian Baird visited over 40 communities along the Mekong River in Thailand, Laos, and Cambodia to engage with people who live and work along the Mekong. Dr. Baird will hold a discussion about his revealing field study findings and insight into how local communities use available information to communicate the changes around them.

IN THE FUTURE

Heatmap Looks at VPPs – Heatmap Labs and Uplight host a webinar, part of the Beyond Transmission series by Heatmap Labs, on Tuesday July 23^rd at 1:00 p.m. that will focus on the key role of customer-side flexibility in the form of Virtual Power Plants (VPPs). The panel of experts will discuss how VPPs can help with the energy transition both now and in the long term. The discussion will explore the ways in which VPP program designs and operations have evolved, best practices learned over time, evaluation metrics, and technology and policy trends that will shape the role of VPPs in the near future. Colorado PUC Chair Eric Blank is among the speakers.

E&E Reporters Discuss Post Chevron – On Tuesday July 23^rd at 1:30 p.m., E&E News reporters hold a briefing on navigating the post-Chevron era after the Supreme Court June 28^th decision that overturned the doctrine. The panel includes legal editor Pamela King, who has written more than 70 stories examining Chevron over the years; Jean Chemnick, whose specialty is digging into climate regulation; Kelsey Brugger, who tracks energy politics on Capitol Hill; and Kevin Bogardus, who covers EPA and the federal regulatory bureaucracy.

DOE Hosts Solar Meetings – The Equitable Solar Communities of Practice is hosting five virtual community convenings this summer, first hosted by the Clean Energy States Alliance on Tuesday July 23^rd at 2:00 p.m. These events will bring together industry experts, community members, and stakeholders to discuss challenges and opportunities in scaling equitable solar across the U.S. Each Community of Practice is led by an expert organization who will share insights and gather participant feedback. Through these convenings, participants will learn about the landscape of each meaningful benefit category, explore and provide input on resource gaps, and identify best practices and potential solutions to bring equitable solar to scale.

Forum to Look at National Labs Innovations – On Thursday July 25^th, the US Energy Assn will showcase new and emerging technologies from DOE’s National Labs and the Office of Clean Energy Demonstrations and industry. The event aims to educate policymakers and the public about how public and private dollars are being spent to drive innovation in the energy transition.

RMI To Tackel Green Fertilizer – RMI holds a webinar on Thursday July 25^th at 9:00 a.m. on growing the green fertilizer market.  The webinar discusses trends in the ammonia sector, benefits of distributed green ammonia for farmers, and challenges to overcome to accelerate adoption. The session will feature a short presentation from key actors in the green fertilizer space followed by a group panel discussion.

NASA, FAA on POLITICO Agenda – POLITICO will convene a conversation on Tuesday July 30^th at 8:30 a.m. about what Washington needs to understand is at stake – which sectors of the global economy see their growth arc in space, and what the right role of government leaders is in both growing and regulating the explosion of orbital ideas.

Dems Head to Chicago – The DNC holds its Convention in Chicago on Monday August 18^th to Thursday August 21^st at the United Center.