Energy Update: Week of July 18th

Friends,

What a great finish the British Open as Cam Smith raced past Rory McIlroy and Victor Hovland to take the Claret Jug and his first major. This week, the Tour d’France races through the final mountain stages toward Paris on Sunday and the 2022 World Track & Field Championships are hitting their stride in Oregon. 

Friday was a busy day with news about Joe Manchin and the President’s trip in Saudi Arabia. Both offer more twists to an already short timeline and convoluted challenge to pass any climate-related legislation. The Manchin/climate news seemed to catch everybody off-guard and President Biden’s weekend comments put the climate provisions on ice, perhaps bumping some of the most important climate/energy pieces (where they may be some bipartisan support) to any lame duck legislative session.

On emissions, while the climate setback makes meeting targets more difficult, we need to be clear in about one thing that I'm hearing from my friends in the environmental community: any agreement on climate – while helpful – would not have allowed us to meet the arbitrary target that Biden's laid out early in his administration. In fact, we were already way behind and would most certainly have never met those targets anyway in the near term.

On gas prices, it is quite funny to hear Admin officials racing to TV news shows to discuss “the most significant gas price decline in history.” It was on their watch that prices ran up to nearly $5/gal so taking credit for a significant drop seems like overspin.  On Friday, I made a visit with my friend Julie Mason on Sirius XM’s P.O.T.U.S to discuss this very issue, climate legislation and the President’s trip to Saudi Arabia.  And we also talked about Depeche Mode, Backstreet Boys and Rage Against the Machine (which will be August 14^th in NYC’s Madison Sq Garden for Hannah and me). Catch the conversation here.

All this said, it seems that semiconductor legislation that has bipartisan support may find its way on to the Senate floor as early as tomorrow.  On that note, last week, security experts Michael Splinter and Admiral Jonathan Greenert wrote an opinion piece on MarketWatch that semiconductors are too important for our economy and security to let partisan spats in Congress derail it.  And House Rules takes up 2023 spending on both Interior/EPA and Energy funding bills (with lots of amendments).

Other items on the Hill this week including a Senate Energy tomorrow on hydrogen pipeline regulation. Senate Environment Wednesday will vote on EPA Air office nominee Joe Goffman and NRC nominees Annie Caputo and Brad Crowell.  Finally, also Wednesday, Sen. Whitehouse talks carbon border tax issues at CSIS.

One other interesting item: Lucid Motors will have the 2022 MotorTrend Car of the Year Lucid Air on Capitol Hill Wednesday and Thursday. Lucid will have stationary vehicles that you can check out from 9 to 5 Wednesday (on the Senate side at 1st and C Sts NE) and Thursday (on the House side at 1st and Maryland SW). Lucid Airs have range up to 520 miles on a single charge, charge at speeds of 300 miles in about 22 minutes and have up to 1111HP in some models.  Check it out if you are interested. 

Finally, congrats to my friend Joe Desmond, a former Cal Energy Commission Chair (and the leader of our BrightSource Energy effort to build the Ivanpah Solar project) who is the executive director of the California Efficiency + Demand Management Council. See more details below.

Call with questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

FRANKLY SPOKEN

“He may be craven and corrupt, but he's not stupid. And he knows that we've got one shot at budget reconciliation left, and we've got a problem in the [Affordable Care Act] that we have to resolve this month. So, when he talks about 'We can get back around to climate later,' I hope no one is foolish enough to try to kick the football one more time.”

“It is a gut punch but not a surprise. Anyone who understands who Mr. Manchin is, where he gets his wealth, what he actually cares about, can't really be surprised.  Let's stop empowering this puppet of the coal industry to be his own branch of government and let's get on with it."

A couple of gems from Rep. Jared Huffman (D-CA) attacking Sen. Joe Manchin.  Feel like Manchin probably doesn’t care.

ON THE PODCAST

PRG’s Madam Policy Talks to National Grid Ckean Energy Expert – In a recent episode of our Madam Policy Podcast, Cordi O’Hara, President of National Grid Ventures—the unregulated, innovation arm of National Grid—and the woman leading the charge for developing and operating large-scale clean energy projects like offshore wind, solar, onshore wind, and transmission in the US and electricity connectors in the UK. Cordi sat down with my colleagues Dee Martin and George Felcyn to discuss her pathway to becoming the President of National Grid Ventures and how her continuous work contributes to groundbreaking National Grid projects—like linking England and Norway through the world’s largest subsea interconnectors and supporting National Grid’s plan to go fossil free by 2050.

Energy Gang Talks SCOTUS, Cali Nukes – On the latest episode of The Energy Gang, Melissa Lott steps in as host this week for our friend Ed Crooks, alongside Emily Chasan from Generate Capital and Robbie Orvis from Energy Innovation. The discussion starts with the US Supreme Court’s decision to impose new limits on EPA by rejecting the Obama administration’s Clean Power Plan. Next up, the gang focuses on the Russia-Ukraine war and inflation and their influence on the price of renewables. The discuss also moves to shockwaves in energy prices are still reverberating around the globe by looking at Biden’s proposed suspension of federal gas taxes and whether it would work.  Finally, the team looks at Cali Gov. Gavin Newsom’s request to the federal government to ensure the Diablo Canyon nuclear plant qualifies for funds to help it remain in service.

FUN OPINIONS

Military Experts Call on Congress to Move Semiconductor legislation – In an opinion piece on MarketWatch, experts Michael Splinter and Admiral Jonathan Greenert write semiconductors are too important for our economy and security to let partisan spats in Congress derail popular legislation. The add any US policy response must offset significant construction and startup costs gaps to incentivize more investment in American production. In addition to CHIPS Act funding, Congress could help right now by passing the Facilitating American-built Semiconductors (FABS) Act, which would establish a predictable, longer-term incentive in the form of a new investment tax credit. The FABS Act has garnered bipartisan support, and though it has yet to be voted on, there is consideration of including it in a final competitiveness bill.

FROG BLOG

FT: Yergin Says Pay Attention to Copper   – In an op-ed in the Financial Times,  Dan Yergin writes as countries try to figure out how to meet their targets for net zero emissions, minerals have become a big target of concern. Several governments and international organizations have expressed alarm about whether there will be sufficient supply to meet the needs of, as the International Energy Agency puts it, moving “from a fuel-intensive to a mineral-intensive energy system”.  There has been much discussion of the lithium and cobalt needed for electric vehicle batteries. But less attention has been given to copper, though it is the foundation for the energy transition, indeed the “metal of electrification”. 

FUN FACTS

• Offshore Wind:  EIA says power plant developers and operators have reported plans to install more than 6 gigawatts (GW) of offshore wind capacity at sites mostly along the U.S. eastern seaboard over the next seven years.

IN THE NEWS

New Modeling Analysis Shows Best Options for Addressing Greenhouse Gas Emissions – In light of recent Supreme Court decision on EPA’s limitations on regulating greenhouse gas (GHG) emissions, specific climate legislation that offers a mix of innovation and regulatory measures would be the most effective way to significantly reduce emissions, according to new modeling analysis from a leading modeling firm.  The Energy Innovation Reform Project, a Washington, DC-based non-profit organization, released new quantitative modeling of federal climate policy options by OnLocation that identifies cost-effective, fuel-diverse pathways for decarbonization of the U.S. electric power sector.

The modeling examined the potential effects of three policies:

1. A prominent, recently proposed clean energy standard (CES), the Clean Future Act of 2021 (CFA), sponsored by Rep. Frank Pallone, (D-NJ) chairman of the House Energy & Commerce Committee;
2. An “Innovation + Regulation” (I+R) policy that features a CES combined with (and implemented after) a decade of innovation and infrastructure investments, as exemplified by the Clean Energy Future through Innovation Act (CEFTIA), introduced in 2021 by Reps. David McKinley (R-WV) and Kurt Schrader (D-OR);
3. The power-sector portions of the bipartisan Infrastructure Investments and Jobs Act of 2021 (IIJA).

The findings include:

1. Innovation policies alone can achieve significant CO₂ mitigation, but long-term goals are unlikely to be met after policy incentives expire.
2. Cost-effective emissions reductions require both innovation policies and regulations.
3. The Clean Future Act would reduce fuel diversity and supply, and significantly increase electricity prices, while I+R would lower prices and preserve fuel diversity.
4. The I+R policy incentivizes a more diverse portfolio of carbon-free generation and reduces emissions far more cost-effectively than the CFA.
5. The Infrastructure Investment and Jobs Act (IIJA) will reduce emissions slightly, but falls far short of meeting CO₂ mitigation goals

CA Efficiency/Demand Management Council Names Desmond Executive Director – The California Efficiency + Demand Management Council said that energy veteran Joseph Desmond was selected to be the organization’s next Executive Director. Desmond will lead the Council’s strategy and vision to accelerate and expand the markets for energy efficiency, demand response, and distributed energy resources as the state works to achieve its net-zero emissions goals by 2045. Desmond, a former CA Energy Commission Chair for Gov. Arnold Schwarzenegger, is an energy veteran that brings over 30 years of public and private experience to lead the statewide trade association.  Desmond also led BrightSource Energy’s effort to build the Ivanpah Solar project in California,.

IEA: EU NatGas Situation is a Red Alert – The International Energy Agency says the EU needs to significantly reduce its natural gas consumption this summer to prepare for the possibility of a winter without Russian supply. IEA head Fatih Birol warned that Russia’s recent moves to reduce deliveries via the Nord Stream pipeline are a “red alert for the EU.” According to the agency’s new winter supply scenarios, the EU could face disruptions should Russia switch the Nord Stream pipeline back on but cease deliveries in October — even with gas storage facilities filled to 90 percent and with maximum deliveries from Norway, Azerbaijan, North Africa, domestic EU production and seaborne imports of LNG. The agency’s policy recommendations include holding auctions to get industrial users to use less gas; burning more coal and oil; setting limits on cooling in households; and coordinating national and EU-wide “measures for supply curtailments.”

Report Details Wind Challenges – ClearPath released a report last Friday analyzing the challenges ahead for significant increases to wind energy deployment. Models for reaching net-zero by 2050 call for between three and 17 times more onshore wind capacity deployment nation-wide. Hawkeye State Headwinds is a first-of-its-kind report that analyzes the feasibility of large increases in wind production while accounting for local ordinances that limit new development.  The report looks specifically at Iowa as a case study given it has the largest percentage of its energy produced from wind, and has the largest land impact of any state in net zero models; 57% of Iowa’s electricity supply is generated from wind energy. Five key takeaways from Hawkeye State Headwinds include:

1. Up to 17 times more wind deployment is needed to reach net-zero emissions models.
2. Increasing deployment is becoming more challenging with increased local opposition. 16 of the 99 counties in Iowa have prohibitive ordinances or moratoria against new wind, most of which were enacted in the last three years. 
3. 49-77% of potential wind development areas in Iowa could be unavailable. 
4. There is no room for more wind without new transmission, which also faces opposition.
5. Regulatory reform and tech inclusivity are essential. An Iowa deployment level in line with a 100% renewable pathway (210GW) is not possible after considering local wind ordinances in wind-friendly places like Iowa. 

ON THE SCHEDULE THIS WEEK

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.     

Senate Energy Looks at Federal Hydrogen Pipeline Policy – The  Senate Energy Committee holds a hearing tomorrow at 10:00 a.m. to examine federal regulatory authorities governing the development of interstate hydrogen pipelines, storage, import, and export facilities. Witnesses will include Plug Power CEO Andy Marsh and Williams exec Chad Zamarin.

Forum to Look at Net Zero in Global South – Tomorrow at 10:00 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.

House Resources to Look at Energy Legislation – Tomorrow and Thursday, the House Resources Committee will hold legislative hearings on energy legislation, including several lands bills and legislation focused on enhancing Geothermal energy production.

House Transpo Looks at Infrastructure Implementation – Tomorrow at 10:00 a.m., House Committee on Transportation and Infrastructure will hold a hearing on implementing the Infrastructure Investment and Jobs Act

Forum to Look at Energy Security – The American Security Project holds a forum tomorrow at 10:00 a.m. to discuss the implications of Russia’s invasion of Ukraine on global energy security, the climate agenda, and global energy markets.  My friend Kevin Book is among the speakers.

Forum to Look at Net-Zero – The Carnegie Africa Program holds an in-depth expert panel discussion tomorrow at 10:00 a.m. looking at the energy transition plans from Nigerian, Indian, and U.S. experts and the implications for the rest of the world.

DOE Forum to Look at Community Resilience – Tomorrow at 11:00 a.m., DOE’s EERE office holds a forum on community resilience hubs. The Forum will include Better Buildings partners who have successfully identified buildings and leveraged energy efficiency, distributed generation, and storage resources to ensure critical community facilities are online when they are needed most.

House Oversight To Look at Regen Ag – Tomorrow at 2:00 p.m., the House Oversight Subcommittee on Environment will hold a hybrid hearing to examine regenerative agriculture, the role it can play in preventing the worst of the climate crisis while protecting food supply, and the urgent need to reform federal policies that unjustly favor corporate agribusiness, often at the expense of family farmers.

India Forum to Feature DOE’s Turk – On Wednesday 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 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.

Senate Enviro to Vote on EPA, NRC Noms – The Senate Environment Committee will hold a Business Meeting to vote on EPA Air office nominee Joe Goffman and NRC nominees Annie Caputo and Brad Crowell. 

DOE to Hold Carbon Negative Shot Summit – On Wednesday afternoon, DOE holds the Carbon Negative Shot Summit to advance the development of the emerging and necessary carbon dioxide removal industry. Carbon Negative Shot is an all-hands-on-deck call for innovation in carbon dioxide removal pathways that will capture carbon dioxide (CO2) from the atmosphere and durably store it at gigaton scales for less than $100/net metric ton of CO2-equivalent. To put this into perspective, one gigaton of CO2 is equivalent to the annual emissions from approximately 250 million vehicles driven in one year. Carbon dioxide removal, in conjunction with aggressive decarbonization, is a climate-critical activity required to reach our nation’s climate goal of achieving net-zero emissions by 2050. The Carbon Negative Shot Summit will convene industry innovators, environmental and climate justice organizations, labor unions, academia, government leaders, and many more in order to increase collaboration to advance deployment of commercially viable, just, and sustainable carbon dioxide removal in the United States. 

Forum Set for NatGas – On Wednesday 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.

Wilson to Look at US/Mexico/Canada Trade Deal – On Wednesday at 1:00 p.m., the Wilson Center's Canada and Mexico Institutes holds a discussion on what the priorities should be in the months and year ahead for implementing USMCA and how that work fits into the broader frame of strengthening North American prosperity and competitiveness. Following introductory remarks by Congressman Kevin Brady, Ambassador Earl Anthony Wayne will lead a panel discussion with leaders in the business and trade community from the US, Canada and Mexico.

Forum to Feature Siemens Exec – On Thursday at 10:00 a.m., the Atlantic Council Global Energy Center holds a conversation with Siemens Energy Chief Executive Officer, Christian Bruch, as part of the Global Energy Center’s CEO Series. Bruch will discuss the balancing act between energy security and the energy transition, with a particular focus on cybersecurity. He will outline the challenges and opportunities presented by the current moment to companies like Siemens Energy and energy consumers around the world. This conversation will be followed by a panel discussion with experts in industry and finance to discuss the use of digital technologies to enable a smarter, more secure energy sector.

Reporters to Discuss Gas Price Issues – On Thursday at 11:00 a.m., POLITICO reporters Ben Lefebvre, Kelsey Tamborrino, David Ferris and Alex Daugherty hold a forum to discuss how the Biden Administration is continuing to address the fuel cost issue and the push toward more affordable electric options.

USEA Continues Indian Energy Series – On Thursday at 1:00 p.m., the US Energy Assn continues its Indian Energy Mineral Series with a webinar on the role both Indigenous communities and shareholders have more authority to shape ESG. This webinar will consider ESG and the importance and impacts to tribal governments, economies, development, sustainability and the future.

AEI looks at SCOTUS Term – On Thursday 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.

USEA to Look at Nat Gas Use for Utilities – On Friday at 11:00 a.m., the US Energy Assn holds another media brief on the future role of natural gas in U.S. electricity generation.  Panelists include TVA COO Don Moul, Rayburn Country Electric Co-Op President David Naylor, EEI’s Phil Moeller, Jack Weixel of S&P Global Commodity Insights and William Hederman of the University of Pennsylvania.  Journalist questioners include Jenn Hiller of the Wall Street Journal, Vijay Vaitheeswaran of the Economist, Forbes columnist Ken Silverstein and energy veteran Rod Kuckro.

Forum to Look at Russia, Energy – The Atlantic Council will hold a forum on Friday at 1:00 p.m. looking at Indo-Russia relations, energy ties, and crude flows in the post-invasion period. The event will discuss the dynamics of the energy relationship between India and Russia since its invasion of Ukraine and whether it spells a broader geopolitical shift.

IN THE FUTURE

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. The event features a Q&A Speakers will include Sen Chris Van Hollen, Rep. Ron Kind, DOE’s Kelly Speakes-Backman, NHA’s Malcolm Woolf and many more.

Forum to Look at Equitable EV Adoption – Next Tuesday July 26^th at Noon, the Information Technology & Innovation Foundation holds a forum on accelerating more equitable EV adoption through technological, business model, and policy innovation. ITIF’s Center for Clean Energy Innovation will hold an expert discussion on the findings and policy implications of a new report examining the connection between equity and innovation in the context of EVs.

Forum to Look at Microgrids – On Tuesday July 26^th at 2:00 p.m., RE Plus holds another Electric Avenue Seminar on Microgrids. This webinar will discuss the merits of various system topologies, and relate the experience of the panelists regarding actual tested, piloted and installed systems.  Projects covers will include, the Purdue DC Home, the TECO deployed Emera Residential Development Microgrid platform, and the Kirtland AFB Housing Microgrid Network.

Forum to Focus on Policies Of New Columbian President – On Wednesday July 27^th at 11:00 a.m., the Dialogue holds a forum to explore the policies of new leftist Columbian president Gustavo Petro.  This event will explore Petro’s energy and climate promises, the prospects for fulfilling them as president, and the impacts on the country’s important energy industries.

Forum to Look at Wind Sound Standards – Americans for Clean Power holds a forum on Wednesday at 1:00 p.m. on standardizing the prediction of wind turbine sound levels, including an effort to create a new ANSI/ACP standard. 

Forum to Look at Green Infrastructure in Great Lakes Region – The American Association for the Advancement of Science’s Center for Scientific Evidence in Public Issues (AAAS EPI Center), EPA’s Office of Water and the White House holds the next webinar in the series on Wednesday July 27^th at 1:00 p.m. that highlights regional examples of green infrastructure and nature-based solutions. In this event, speakers will discuss their work across the Great Lakes to plan and implement unique green infrastructure and nature-based solutions. The expert panelists will share their unique, regional experiences planning and implementing green infrastructure and nature-based solutions in the Great Lakes region. Additionally, speakers will share opportunities, challenges, barriers, and lessons learned from the design and planning to implementation to operations and maintenance of green infrastructure and nature-based solutions.

WRI to Look at GHG Inventory – On Thursday July 28^th at 9:00 a.m., World Resources Institute, C40 Cities and ICLEI will discuss a new globally standardized, flexible methodology to estimate GHG greenhouse gas emissions and carbon removals (sequestration) by forests and trees for cities and communities worldwide, building on the updated Global Protocol for Community-Scale Greenhouse Gas Emission Inventories (GPC). Speakers will outline the methods covered in the new guidance: “Supplemental Guidance for Forests and Trees”. They will also showcase how cities and communities report their results and how to include them in their emissions reduction targets. They will also discuss how communities have already inventoried GHG emissions and removals by forests and trees for more holistic climate action planning by outlining how some communities have already used these methods.

USEA to Tackle Direct Air Capture – The US Energy Assn will hold a forum on Thursday July 28^th at 2:00 p.m. to look at life cycle analysis on direct air capture technologies. During this webinar, representatives from DOE’s Office of Carbon Management will provide an overview of the recently released Best Practices for the analysis of Direct Air Capture with Storage (DACS). DOE’s Noah Deich speaks.

WRI Looks at Carbon Free Energy – On Thursday July 28^th at 3:00 p.m., WRI holds second webinar of a series on 24/7 Carbon Free Energy.  Experts will tackle questions about 24/7 carbon-free supply projects. The webinar will also feature overviews from representatives of electric utilities AES Corporation and Georgia Power about their emerging 24/7 CFE supply products, as well as a customer-side perspective on 24/7 CFE deals from Iron Mountain, a global storage and information management services company that has committed to matching its hourly energy use with renewable power. After opening presentations from panelists, Lori Bird (Director, US Energy, WRI) will moderate a discussion exploring the questions outlined above.

RFF Hosts DOE’s Turk – On Thursday August 11^th at 3:00 p.m., Resources for the Future (RFF) for a Policy Leadership Series event with David Turk, Deputy Secretary of the US Department of Energy. RFF President and CEO Richard G. Newell will sit down with the deputy secretary to discuss the dual global energy and climate change crises. Their conversation will delve into the administration’s ongoing responses to high energy prices, policies and technologies needed to combat climate change while ensuring a just and equitable clean energy transition, and more.