Energy Update: Week of July 22nd

Friends,

Every week as I start this energy update, I think that this 2024 election can't get any crazier. Yet, it does. And that’s where we are today after last night’s unsurprising yet completely shocking move by President Biden to drop out of the election with just 15 weeks to go.

While this will create a new short-term process, there will likely be impacts for energy, climate and environmental issues and voters. The President's decision certainly will inspire progressive climate voters in a way that Joe Biden couldn't. They will move forward with more energy and excitement that they refused to have for the President despite his significant climate action. On the other hand, it

really puts union rank and file voters in play for Republicans, who already have been courted aggressively. Teamsters head Sean O'Brien spoke at the RNC and at Union halls across the country, Trump seems to be scoring big gains, and taking "Union Joe" off the ballot is likely to give that effort a boost.

So, the decision will be interesting for bringing more energy to climate issues, but not a total positive, and one that could have unintended political consequences if union rank and file are in any way uncomfortable with VP Harris (assumption that she will pick up the mantle, but that is not even a certainty currently).

My colleague Liam Donovan of course has it all here in his latest take after last night’s news.

Speaking of the Republican Convention in Milwaukee, I am not going to say much about the Republican National Convention. It was fun, but a lot of work. The CRES-ClearPath-ACC event was very good and well attended with excellent remarks from Reps. Curtis and Miller-Meeks. The Punchbowl America CARES energy event was also a huge success and I thought the 30-minute panel with EEI’s Dan Brouillette, AGA head Karen Harbert, ACP head Jason Grumet and NEI CEO Maria Krosnick delivered effective, pithy, concise responses on the important challenges, reliability/costs and working together to address consumer needs.

Overall, the focus on energy/environment/climate was minimal and stuck mostly with slogans. That said, I would highlight ND Gov. Doug Burgum’s Wednesday speech as the most relevant and detailed on energy. Sen. Kevin Cramer told me the next night he thought Burgum would make a good Energy Czar, coordinating energy/enviro/climate policy from inside the White House.

As for the rest of the Convention, Hulk Hogan stole the show on the final day of the Republican convention in Milwaukee using his classic tactics: "Let Trump-a-mania run wild, brother,” calling delegates Trumpamaniacs and ripping his shirt in half and delivered a thunderous endorsement of Trump. As a WWF watcher back in the day, it was pretty fun, classic and effective. And Trump’s 17-year-old granddaughter Kai, the daughter of Donald Trump Jr stole the show on Wednesday night outshining her dad with her humor and wit.

We have a great Bracewell PRG Pulse recap with key interviews on energy issues. See more here.

The House and Senate return for a two-week sprint before the August recess. On the docket for the House is trying to pass another set of funding bills as the Rules Committee is expected to tee up votes on the bills for Energy and Water Development; Interior/Environment and Ag. On the hearing side, House Energy has independent agency budget week on tap with NRC commissioners tomorrow morning, Consumer Product Safety Commissioners tomorrow afternoon and the full array of new FERC Commissioners on Wednesday. Expect a full discussion of Vogtle and its impact on future nuclear, as well as small modular reactors with a NRC, an intense focus on Commissioner Trumka and his calls to regulate gas stoves out of existence with CPSC and a full discussion of grid reforms, pipeline infrastructure and the role of natgas with FERC. Should be an interesting week.

Xander Schauffele closed strong to win the British open for his second major, firing a stunning bogey-free 6-under 65 on a course that gave golfers fits all week. Tadaj Pogacar wrapped up the 2024 Tour de France victory pushing past rival Jonas Vingegaard by over six minutes. And the Paris Olympics begin on Friday with prime-time opening ceremonies on the River Seine.

Call with any questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

                                                                                                                                              

FRANKLY SPOKEN     

“…while it has been my intention to seek reelection, I believe it is in the best interest of my party and the country for me to stand down and to focus solely on fulfilling my duties as President for the remainder of my term.

Joe Biden yesterday evening in a letter posted on X.

ON THE PODCAST

PRG Pulse Convention Takeaways on Energy, Climate – Following last week’s Republican Convention, PRG Pulse gathered the thoughts of energy industry players at the event, including those participating at a CRES-ClearPath-ACC event featuring remarks from Reps. Curtis and Miller-Meeks, and a  Punchbowl American CARES energy event featuring energy trade association execs.

FUN OPINIONS

Oil Remains a Major Player – In an opinion in Fox.com, former Energy Secretary and Texas Gov. Rick Perry says the Biden administration's energy policies are negatively impacting American energy independence and the energy security of our allies – especially those in Europe who, given a choice, would choose America but instead are being pushed into a Russian bearhug. The administration must recognize the need for a balanced energy policy with baseload power that promotes domestic energy production and ensures both national and international energy security.

FROG BLOG

Forbes Expert: Slowing EV Growth Would Help Transition to Cleaner Vehicles – In a blog post in Forbes. Energy columnist Ken Silverstein writes the electric vehicle market can potentially appeal to a broader audience beyond the eco-conscious, which is a beacon of hope. Therefore, Musk’s change in attitude might be a deliberate attempt to tap into this potential and sell cars to the masses—to those skeptical of economic change. This shift in focus could be the key to unlocking a future where electric vehicles are the norm, offering a glimmer of hope in the fight against climate change.

FUN FACTS

EV Expansion Could Under Gas Tax Revenues Without Policy Changes: According to an analysis conducted for the National Conference of State Legislatures, the EV market share is on track to reach 43 percent by 2035. Under this projection, states and the federal government would lose nearly $32 billion in annual fuel tax revenue. Without a clear plan for how to fill that gap while still meeting EV goals, federal and state agencies are facing an uncertain future for infrastructure and transportation funding.

IN THE NEWS

ARCHES Get First DOE Hydrogen Hub Funding – The Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) and the United States Department of Energy (DOE) officially announced the signing of a landmark $12.6 billion agreement, including up to $1.2 billion from the DOE and $11.4 billion in public and private matching funds, to build and expand clean energy infrastructure across California. This transformative investment, which will directly reduce California’s reliance on fossil fuels, marks a major step forward in the state’s efforts to achieve a carbon-neutral economy by 2045 and follows California’s selection last October as one of seven awardees of the DOE’s Regional Clean Hydrogen Hubs (H2Hubs)–catalyzing a national network of clean hydrogen producers, consumers, and connective infrastructure. ARCHES is the first of the seven H2Hubs to officially sign their agreement with the DOE. The overall investment, starting with $30 million for the first tranche of funding out of the total project federal cost share of up to $1.2 billion, is projected to create over 220,000 well-paying jobs. At full build out, it is estimated that ARCHES DOE projects will result in $2.95 billion per year in decreased healthcare costs due to improved air quality, particularly along transportation corridors. Spearheaded by Governor Newsom, California’s bold climate policies, including the California Climate Crisis Act (AB 1279), the 2022 Scoping Plan for Achieving Carbon Neutrality, the Executive Order on Zero-Emission Vehicles, and the forthcoming all-of-government Hydrogen Market Development Strategy, all work together to send strong signals about the critical role of hydrogen in decarbonizing the state’s economy. Each of the selected ARCHES projects will play a significant role in improving air quality and public health in many underserved communities throughout California. ARCHES projects will span statewide, covering the full hydrogen lifecycle from production to use, including, but not limited to:  

• Renewable Hydrogen Production – More than 10 sites will produce enough clean renewable hydrogen to fuel the projects below and kickstart the buildout of the greater hydrogen ecosystem. 
• Ports of Long Beach, Los Angeles & Oakland – These projects will replace diesel-powered cargo-handling equipment with hydrogen fuel cell equivalents and associated fueling infrastructure, reducing emissions and community health impacts while reimagining large-scale transportation operations.
• Heavy Duty Trucks and Transit Buses – ARCHES plans to build over 60 hydrogen fueling stations to enable over 5,000 Class 6-8 fuel cell electric trucks and over 1,000 fuel cell electric buses–directly replacing diesel fuel with a zero-emission option in our City streets and freeways across the State and making the air in California’s most impacted communities healthier to breathe. 
• Clean Power – Both the Los Angeles Department of Water and Power and Northern California Power Agency will transition key power plants to 100 percent renewable hydrogen. Distributed fuel cells will be used to support grid operations throughout the state and to provide resilience in key regions of the state, including on the Federally Recognized reservation of the Rincon Band of Luiseño Indians.
• Scripps Marine Vessel – A first-of-its-kind hydrogen-powered 140-foot, 50-person marine research vessel will use liquid hydrogen to replace tens of thousands of gallons of diesel fuel per year. The vessel will convert 75 percent of its emissions to be fossil-free, significantly reducing CO2 emissions and demonstrating a sustainable path forward for smaller water and harbor crafts. 

WoodMac Report Says Global energy storage fleet to surpass 1 TW/3 TWh by 2033 – According to the latest forecast from Wood Mackenzie, the global energy storage market (excluding pumped hydro) is on track to reach 159 GW/358 GWh by the end of 2024 and grow by more than 600% by 2033, with nearly 1 TW of new capacity expected to come online. Looking ahead, 926 GW/2789 GWh will be added between 2024 and 2033, marking a 636% increase, Wood Mackenzie’s Q2 global energy storage market outlook update finds. This makes energy storage one of the fastest growing markets in the power industry as renewable integration challenges rise.

EPA Provide PCA Grant to Measure Enviro Impact of Cement – EPA said the Portland Cement Association (PCA), which represents America’s cement manufacturers, will receive more than $2.4 million to lead a project that will improve both the quantity and quality of industry Environmental Product Declarations (EPD). EPDs are the most widely used tool by cement producers to measure the potential environmental impact of cement. The project was developed by PCA in partnership with the American Coal Ash Association, the Natural Pozzolan Association, and the Slag Cement Association. It will significantly boost the number of facility-specific EPDs for cementitious materials, which will upgrade the quality of information available for consumers. The project will entail PCA distributing up to $1.5 million in grants to eligible manufacturers over the next five years. The association will also provide training and on-call technical assistance to guide manufacturers from EPD development to verification to the final publishing of the information. Additionally, PCA will help initiate and regularly update industry-average EPDs for cementitious materials.

ON THE SCHEDULE THIS WEEK

Forum Focuses on Global LNG Issues – Tonight at 10:00 p.m., the Institute of Energy Economics Japan (IEEJ)/Energy Policy Research (EPRINC) holds a workshop on risks and opportunities for LNG's Future in Asia to address supply concerns and understanding LNG’s role in the energy transition. The webinar will include policymakers, researchers, and business executives throughout Southeast Asia. The IEEJ/EPRINC workshop will explore responses from governments, financial institutions, and LNG developers to address supply and price volatility in the Southeast Asian LNG markets. LNG and natural gas continue to provide an important solution to improving local air quality and continued rising carbon emissions from coal use in the region. Speakers will include the Chamber’s Dan Byers, LNG Allies Fred Hutchison and Carlos de la Vega of Sempra.

Granholm Headlines Forum on Romanian Energy Issues – The Atlantic Council Global Energy Center, Energy Department and the Romanian Energy Ministry hold its virtual fifth meeting of the Partnership for Transatlantic Energy and Climate Cooperation, beginning at 2 a.m. tomorrow with a Business Forum discussion on energy security, the energy transition, and infrastructure projects" and an Alliance of Green Cities discussion on "how cities at the local level implement strategies to accelerate clean pathways and serve as laboratories for change at the national level. Energy Secretary Jennifer Granholm and Romanian Energy Minister Sebastian Burduja deliver keynote remarks.

Axios Looks at Sustainable AI – Axios holds an event tomorrow at 8:00 a.m. at Long View Gallery in Washington, D.C. convening leading policy, tech and climate voices for conversations exploring how public and private sector leaders can navigate the double-edged sword of AI and energy use. Axios senior climate reporter Andrew Freedman and Axios Pro energy and climate policy reporter Nick Sobczyk will host one-on-one conversations with DOE’s Office of Critical and Emerging Technologies Director Helena Fu, former Senate Energy staffer and Co-founder and Managing Partner of CO2EFFICIENT Tom Hassenboehler and Rep Sean Casten.

House Energy Hosts NRC Commissioners – The House Energy and Commerce Energy, Climate, and Grid Security Subcommittee holds a hearing tomorrow at 10:00 a.m. on the FY2025 Nuclear Regulatory Commission Budget. NRC Commissioners testify. Look for talk of a nuclear renaissance after the completion of the Vogtle Plant in Georgia.

House Admin Looks Post Chevron – The House Administration Committee holds a hearing tomorrow at 10:15 a.m. on the role of Congress in a post-Chevron world.

Wilson Looks at DOD Arctic Strategy – The Wilson Center's Polar Institute holds a virtual discussion tomorrow at 11:00 a.m. on the Department of Defense's new Arctic Strategy. The event will feature an exclusive deep dive into DOD's strategy the with keynote speaker Amanda Dory, Acting Under Secretary of Defense for Policy. Then experts will the current geopolitical state of the Arctic, the development of this pivotal strategy, and its profound implications for the future of Arctic security.

Heatmap Looks at VPPs – Heatmap Labs and Uplight host a webinar, part of the Beyond Transmission series by Heatmap Labs, tomorrow 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 – Tomorrow 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.

House Energy to Probe CPSC Commissioners – The House Energy and Commerce Innovation, Data, and Commerce Subcommittee holds a hearing tomorrow at 2:00 p.m. on FY2025 Consumer Product Safety Commission Budget. All Commissioners including lightening rod Richard Trumka will testify. Expect a long list of gas stove questions.

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 tomorrow 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.

FERC Commissioners Head to House Energy Panel – The House Energy and Commerce Energy, Climate, and Grid Security Subcommittee holds a hearing Wednesday at 10:00 a.m. on the FY2025 Federal Energy Regulatory Commission budget. All five commissioners, including recently sworn in Commissioners Rosner, See and Chang will testify. Expect a lot of natgas, pipeline and grid questions, especially for the new commissioners.

Forum Looks at Cleantech – On Wednesday at 1:00 p.m., RMI holds its annual presentation on the global energy transition: “The Cleantech Revolution: It’s exponential, disruptive, and now.” The past decade has seen remarkable growth in cleantech, pushing fossil fuel demand into decline and pulling the Paris Agreement within our reach. Learn how the energy system is being disrupted by the exponential forces of renewables, electrification, and efficiency.

Forum to Look at National Labs Innovations – On Thursday, 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 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.

Forum Continues Look at China, Russia Competition – The Center for the National Interest holds the fifth in a monthly series of expert discussions organized by the Center’s Central Asia Connectivity Project Thursday at 10:00 a.m. looking at the evolving dynamics of relationships between Central Asia, Russia and China. The Chinese and Central Asian peoples have interacted for more than two millennia; Russia, by contrast, has only been active in the region for the last two centuries. Since gaining independence in 1991, the Central Asian states have again forged steadily growing ties with China. These ties advanced significantly in 2013 when Xi Jinping formally announced the Silk Road Economic Belt—part of the Belt and Road Initiative—in Kazakhstan.

IN THE FUTURE

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.

Congressional Energy Efficiency Expo Set for Cap Hill – The Environmental and Energy Study Institute (EESI) and the House and Senate Renewable Energy and Energy Efficiency Caucuses hold the 27^th annual Congressional Renewable Energy and Energy Efficiency EXPO and Policy Forum (EXPO 2024) on Tuesday July 30^th. In the Gold Room, members of Congress and top-level executives will discuss technologies and solutions that reduce carbon emissions, save households money, improve the economy, build resilience, and protect our security interests. In the Rayburn Foyer, participating organizations will present materials showcasing their clean energy work. There is a great list of Congressional speakers, as well as our friends Lisa Jacobson of BCSE, ACP’s JC Sandberg, CEBA’s Bryn Baker, ClearPath’s Cheryl Lombard, FCHEA’s Connor Dolan and NHA’s Malcolm Woolf.

Chamber Holds Chemistry Summit – On Thursday August 1^st, the U.S. Chamber holds its Chemistry Solutions Summit. This event will feature expert voices from Congress, the Administration, and industry to discuss the most important issues and innovation within the chemical value chain. EPA Assistant Administrator in the Office of Chemical Safety Dr. Michal Freedhoff and Rep Troy Carter (D-LA) will keynote.

Cement Sustainability Forum Set – The second annual Portland Cement Association Sustainability Summit will be a virtual event held August 13^th to 15^th at 11:00 a.m. each day. The even features industry leaders discussing the latest efforts and strategies in the cement-concrete-construction value chain's efforts to achieve net zero.

Western Gas Forum Set for San Diego – The 20^th annual Energy Innovations: LDC Gas Forum Rockies and West takes place in San Diego, CA on August 14^th to 16^th to gain insight, analyze and structure arrangements to buy, sell and transport natural gas. Informative industry insight covering the Rockies and West from a host of speakers who will break down topics around Innovations in Energy such as Certified Gas, low-carbon alternatives, infrastructure updates.

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.