Energy Update: Week of July 24th

Friends,

Here we go with the final run up to August recess and a lot is happening this week. But I have to start with the sports action overseas.  The Women’s World Cup is underway Down Under with the US Women’s team looking for a three-peat.  They were strong in there first effort against Vietnam and will take on the Netherlands on Wednesday in a key Group E game.  American Brian Harman walked away with the British Open taking his first major, easily handling the pressure, the rainy Sunday weather and the highly-decorated field.  And finally, Jonas Vingegaard won the Tour de France for the second straight year after vanquishing his only real rival Tadej Pogacar. Over the first two weeks of an incredible Tour, the race was a tense two-man battle, but Vingegaard swamped his foe during the 17^th stage on the Col de la Loze mountain pass through the Alps to make a 9 second lead a comfortable win.

Now to the action here: On Wednesday, the White House will hold a methane summit, centered on methane reduction efforts in the oil and gas sector which among majors, has been very good. Earlier today, EPA and DOE announced $350M in IRA funds to reduce oil and gas methane emissions. The US natural gas and oil industry is leading the world in advancing innovative technology to better detect and reduce methane emissions and US methane emissions intensity are amongst the lowest of any major-producing nation. Average U.S. methane emissions intensity declined by nearly 66% across all seven major producing regions from 2011 to 2021. You can see more data and details here.  The event will feature an “Innovation Showcase” to display promising technologies across America that enables responders to accurately pinpoint, detect and quantify methane emissions and specifically pipeline leaks.

Over the weekend in Goa, India, G-20 energy ministers, including Energy Secretary Granholm, failed to reach an agreement on a joint communique on the clean energy transition. Interestingly, they released a document that acknowledges “fossil fuels currently continue to play a significant role in the global energy mix,” but calls for a tripling of clean energy technology capacity by 2030. They also endorsed biofuels and hydrogen, including ammonia, as valuable to the clean energy transition, and backed nuclear “for those countries that opt to use it.” Also, FERC holds its monthly meeting on Thursday with Commissioners looking at generator interconnection queues and gas projects that may provide insight into how this FERC approaching its environmental review requirements.

It’s crunch time for Congress this week as lawmakers get ready for the August recess. The Senate is hoping to wrap up floor action on their version of the FY2024 National Defense Authorization Act, but that’s far from a sure bet especially with Sen. Durbin missing this week due to COVID and Sen. Tuberville still blocking military promotions.  The House looks to pass two FY2024 appropriations bills — Agriculture and MilCon-VA — as well as two Congressional Review Act disapproval resolutions that have already been approved in the Senate to overturn federal protections for the lesser prairie chicken and the northern long-eared bat. Rules Committee on CRAs tomorrow.

The big hearing this week is Wednesday’s Senate Energy hearing on overhauling the permitting process for transmission lines, pipelines and energy production on federal lands. Also on Wednesday morning, Rep. John Curtis (R-UT), Sen. John Hickenlooper (D-CO), Energy Department (DOE) Grid Deployment Office Director Maria Robinson, and others will also speak at a permitting event hosted by The Hill.

Other hearings include Wednesday’s Senate Environment hearings on electronic waste recycling and reuse and methods to reduce emissions from the rail industry, as well as a Senate Budget hearing on climate impacts on infrastructure with LA Gov. John Bel Edwards. On Thursday, a House Resources panel holds an oversight hearing on the nation’s offshore oil and gas leasing program.

Other events include this afternoon’s WaPo Live conversation on extreme heat with Jeff Goodell and Juliet Eilperin.  Tomorrow, RFF and US Forest Service release its Forest trends report and an ITIF Clean Energy Costs event that features a report on government support priorities. On Wednesday, the Renewable Thermal Collaborative holds a Hill briefing on industrial decarbonization issues and renewable thermal energy and POLITICO holds an evening forum with Rep. Debbie Dingell that will explore new IRA and other Federal initiatives. The US Chamber’s 12^th Annual Building Resilience Conference is set for Wednesday and Thursday. The Nuclear Innovation Alliance (NIA) will release annual updates on Thursday to their Advanced Nuclear Energy Primer and Company Compendium and debut a new Map resource outlining where projects are being planned and OurEnergyPolicy holds a forum on RNG issues with Thom Tillis.

August is right around the corner, so we will definitely have an update next Monday to wrap this week. I head to Ohio at the end of next week for the 100-mile charity ride for OSU James Center Cancer research so feel free to jump in and help if you can. Any donation is a greatly appreciated: https://www.pelotonia.org/profile/FM735496             

                                                                                            

FRANKLY SPOKEN

 “Methane’s potency as a greenhouse gas makes targeted emissions reduction efforts essential to slow the rapid rate of climate change. These programs will help states and industry to accelerate methane monitoring and mitigation efforts, which will increase efficiency and reduce costs for oil and gas producers, while providing long lasting climate and health benefits to communities across the nation.”

Brad Crabtree, Assistant Secretary of Energy for fossil energy and carbon management, in a statement today announcing $350 million in IRA spending to states for methane reductions.

 

ON THE PODCAST

Focus on Global Carbon Markets – In this week’s episode of RFF’s Resources Radio, host Daniel Raimi talks with Stefano De Clara, head of secretariat at the International Carbon Action Partnership, about the development of carbon markets around the world. Carbon markets, which also are known as “emissions trading systems,” are market-based policies that set a cap on total emissions and issue a limited number of emissions permits that emitters then can trade within the market. De Clara discusses carbon markets in Europe, China, India, Nigeria, and the United States; the growth of voluntary carbon markets; and policy developments to watch in the near future.

Goldfuss Talks Permitting – In this week’s Columbia Energy Exchange podcast, host Jason Bordoff talks with former CEQ head Christy Goldfuss, now at NRDC, about the recent permitting reform proposals and the balance between expanding clean energy and protecting communities and ecosystems.

 

FUN OPINIONS

Former OIRA Head Weighs in on Car Buyer Regs – In a new op-ed on Fox News Opinion, former OIRA head John Graham says blasts the Federal Trade Commission’s new overly-burdensome rules for car buyers. He underscores FTC’s lack of process and cost-benefit analysis as major flaws. Stepping into the void, the Center for Automotive Research analyzed the rule’s potential impacts using FTC’s own methodology, concluding that the proposal would extend the vehicle purchasing process by two hours and, instead of generating nearly $30 billion in net consumer benefits over 10 years as the FTC claimed, would cost consumers $38 billion over the same period.

 

FROG BLOG

RFF Looks at 45V – In the first blog post in a RFF new series, Resources for the Future Fellow Aaron Bergman examines the effects of two approaches for using energy attribute credits in the new 45V tax credit for hydrogen production in the Inflation Reduction Act. In this post, Bergman is starting a series of blog posts that compares studies and explores what drives their key results. RFF argues that the central driving factor is whether the model used in the study is allowed to choose what type of new power generation—clean or emitting—is built to meet the new load from electrolyzers or, instead, if the new power generation is assumed to be clean.

Former NPR Climate Report Addresses Rain as an Understated Challenge – Former NPR climate change reporter Dan Delurey writes in his climate blog that rain will be a climate culprit in the future is largely under-appreciated and misunderstood. Much of the climate impacts we will experience will be incremental and insidious. But even the ones that stand out as distinct and notable will probably stop being named. It will be too hard because there will be too many. It will simply be the new normal under climate change.

 

FUN FACTS

Cement/Concrete Emissions – The concrete and cement industry accounts for 7-8% of global CO2 emissions, and most of that total CO2 comes from the first three phases of the "clinker" production process: 1) preheating, 2) calcination, 3) clinker mineral formation.

 

IN THE NEWS

Air Liquide Joins FOSSI to Support Diversity in Industry – Air Liquide will help fund The Future of STEM Scholars Initiative FOSSI Scholarship initiative which supports students pursuing preferred STEM (Science, Technology, Engineering and Math) degrees at Historically Black Colleges and Universities (HBCUs). Air Liquide’s commitment will ensure funding for students throughout the entirety of their four-year higher education journey. Through its commitment to FOSSI, Air Liquide seeks to advance diversity within industry and manufacturing. With the U.S. experiencing a shortage of nearly 1 million employees in the manufacturing industry alone, a diverse and skilled industrial workforce is essential to addressing the growing skills gap within many STEM fields. FOSSI is a national program focused on eliminating financial barriers to higher education, recognizing and rewarding demonstrated achievement and fostering the future potential of students in the communities in which Air Liquide operates. Thus, the Group joins more than 70 industry peers who, since FOSSI’s inception in 2020, have raised nearly $30 million for the benefit of 595 STEM scholars. Air Liquide’s partnership with FOSSI is an extension of its long-standing commitment to STEM education and literacy. The collaboration joins Air Liquide’s established partnerships with Junior Achievement, Barbara Bush Houston Literacy Foundation and most recently, a continuing engagement with local Houston middle schools focused on women in STEM. These initiatives support the Group’s ADVANCE strategic plan through its “acting for all” pillar, which emphasizes education and employment programs for the betterment of society as a whole.

Interior Proposes Increased Royalty Rates – The Interior Department's Bureau of Land Management has proposed increasing royalty rates for oil and natural gas drilling on federal lands from 12.5% to 16.67% and raising the minimum lease bond paid to cover the costs of plugging abandoned wells from $10,000 to $150,000. American Petroleum Institute Vice President of Upstream Policy Holly Hopkins called the move "yet another attempt to add even more barriers to future energy production, increases uncertainty for producers and may further discourage oil and natural gas investment."

Poll: Voters Support Producing More American Energy – Speaking of API, it also released new polling conducted by Morning Consult showing that 90 percent of voters agree that natural gas and oil play an important role in strengthening the U.S. economy. The polling further shows that an overwhelming majority of voters believe lawmakers should consider the economic importance of these resources when assessing new energy policies and regulations. New polling conducted by Morning Consult on behalf of API found:

• 88% of voters believe it is important to produce natural gas and oil here in the U.S.
• 90% of voters believe producing natural gas and oil in America strengthens the U.S. economy.
• 83% of voters agree that the government should consider economic data when developing regulations that would affect development of the country’s energy infrastructure.
• 88% of voters believe that producing natural gas and oil from here in the U.S. can help lower energy costs for American consumers and small businesses.
• 85% agree that producing natural gas and oil here in the U.S. helps make our country more secure against actions by countries such as China and Russia.
• 80% support increased development of the country’s energy infrastructure.

The poll follows a recent study on the growing economic contributions of America’s natural gas and oil industry in all 50 states, including investment in America ranging from taxes and workforce wages paid to indirect and induced jobs in retail, manufacturing, agriculture and other sectors throughout the energy supply chain. The study, commissioned by API and prepared by PricewaterhouseCoopers (PwC), showed that the industry supported 10.8 million jobs and contributed nearly $1.8 trillion to the U.S. economy in 2021.

Geothermal Company Demonstrates Commercial Tech – Fervo Energy has demonstrated the commercial viability of its drilling technology for geothermal energy production after achieving record-breaking flow rates and power output in a full-scale 30-day pilot project in northern Nevada. "By applying drilling technology from the oil and gas industry, we have proven that we can produce 24/7 carbon-free energy resources in new geographies across the world," said Tim Latimer, CEO and co-founder of Fervo Energy.

 

ON THE SCHEDULE THIS WEEK

WaPo Hosts Goodell on Extreme Heat – Today at 3:00 p.m., the Washington Post Live hosts a conversation with Jeff Goodell, longtime climate journalist and contributing editor for Rolling Stone. Goodell joins our friend Juliet Eilperin to discuss the impact of a warming planet, the record temperatures this summer and how human beings can adapt.

Forum will Look at Climate Price, Performance – The Information Technology and Innovation Foundation holds a forum on tomorrow at 10:30 a.m. for the release of an important new report and an expert panel discussion on why price and performance parity (P3) must be the new lens governments that governments must use to decide which clean energy technologies to support and how to support them. As clean solutions reach the P3 threshold, markets will do the heavy lifting to deploy and rapidly disseminate them at the global scale necessary to achieve a green transition. Our friends Sam Thernstrom of the Energy Innovation Reform Project and Armond Cohen of CATF are among the panelists.

USAID Focuses on Climate – The U.S. Agency for International Development holds a virtual discussion tomorrow at 10:30 a.m., with USAID's climate leadership team on climate change. The event will cover a wide range of topics, including both climate funding for USAID projects, as well as USAID’s internal climate objectives and progress.

Energy Economists Host PJM’s Glazer Forum – The US Energy Economists are holding their July luncheon tomorrow at Noon on managing the energy transition, focused on key touch points with electricity markets with PJM’s Craig Glazer. Glazer will be presenting an overview of how the energy transition is affecting each of the key functions performed by grid operators. His talk will look at reforms underway in PJM’s capacity and energy markets, PJM’s transmission planning function and in PJM’s core function of ensuring reliability of the bulk power electric system in the PJM region. In addition, Mr. Glazer will also review positions PJM has publicly taken on the integration of various state and federal public policy initiatives with its role in managing the electric grid.

RFF Looks at Forest Issues – Resources for the Future (RFF) and the USDA Forest Service holds a forum tomorrow at 2:00 p.m. to unpack the findings from the 2020 Resources Planning Act Assessment. Our panel of leading land use, climate, and policy experts will explore the implications of our changing forest resources and what can be done to strengthen forests in the United States. The event will also feature an opening address by US Under Secretary of Agriculture for Natural Resources and Environment Homer Wilkes.

WCEE Looks at Nuclear – The Women’s Council on Energy and the Environment (WCEE) holds a forum tomorrow at 4:00 p.m. featuring  a panel discussion on the new dynamics in the nuclear space and dive deeper into topics such as current and proposed policies affecting the sector. Items will include the role of the Inflation Reduction Act (IRA); the current status of small modular reactors (SMRs) and prospects for commercial deployment; the interrelationship between nuclear and the fast-growing hydrogen industry; and the emerging discussion around fusion and the associated regulatory structures that are being developed. Constellation’s Jackie Carney and Jackie Toth of the Good Energy Collective will speak.

Chamber Resilience Forum Set – The US Chamber’s 12^th Annual Building Resilience Conference is set for Wednesday and Thursday. This year's event will feature the brightest minds in business, government and NGOs who will share invaluable best practices, lessons learned, and strategies for improving community resilience at all levels and building partnerships that drive impact. FEMA head Deanne Criswell and Duke’s Pepper Natonski are among the speakers.

Hill Forum Looks at Clean Energy Permitting – On Wednesday morning at the National Press Club, The Hill and Advanced Energy United host a forum on clean energy permitting. The forum will convene lawmakers, clean energy experts and executives to answer these questions and discuss renewable energy infrastructure deployment, reaching clean energy goals, and the outlook for greater reforms. Among the speakers will be Rep. John Curtis, Sen John Hickenlooper, DOE’s Maria Robinson, CRES’ Heather Reams and BPC’s Xan Fishman.

Senate Energy Tackles Permitting – The Senate Energy Committee holds a hearing Wednesday at 9:30 a.m. on opportunities for Congress to reform the process for permitting transmission lines, pipelines and energy production.

Senate Budget Looks at Climate Impacts on Infrastructure – The Senate Budget Committee holds a hearing on Wednesday at 9:30 a.m. focused on the fiscal consequences of climate change on infrastructure. Gov. John Bel Edwards and our friend Alex Hergott testify.

Senate Environment Looks at Critical Mineral Recycling Opportunities – The Senate Environment Committee holds a hearing on Wednesday at 10:00 a.m. looking at improving capacity for critical mineral recovery through electronic waste recycling and reuse.

WRI Looks Hard to Decarbonize Industries – On Wednesday at 10:00 a.m., WRI holds a high-level discussion on the opportunities to reduce emissions from industry, including lowering demand for conventionally produced materials, switching to clean energy, and applying new technologies and solutions. This virtual event will cover the policies, mechanisms and practices that can drive low-carbon industrial processes while enhancing clean manufacturing and influencing the ambition of international manufacturing and trade.

Heritage Hosts Conversation with Harold Hamm – ertiage Hosts COnversation with Harld Hamm The Heritage Foundation holds a conversation on Wednesday at 11:00 a.m. with Continental Resources Executive Chairman Harold Hamm. The event will feature a discussion of solutions to securing a safe and prosperous energy future for our country and the world.

Forum Looks at Industrial Decarbonization – The Renewable Thermal Collaborative holds a Hill briefing on Wednesday at 12:00 Noon on industrial decarbonization issues and renewable thermal energy  The event will feature the findings of the Renewable Thermal Vision Report and its implications for policymakers. The report examines priority industrial sectors in the United States and analyzes their thermal energy use by industrial process, temperature (high, medium, and low), and geography. Incorporating post-Inflation Reduction Act cost projections and estimates of technology availability, the report identifies five parallel pathways to decarbonize U.S. industry by 2050. 

Forum Looks at Berkeley Lab Report on Clean Energy Standards – The Clean Energy States Alliance holds a forum on Wednesday at 1:00 p.m. featuring a Berkeley Lab report on U.S. State renewables portfolio and clean electricity standards. Berkeley Lab’s Galen Barbose will present key findings from the report.

House Science Talks Geothermal, Subsurface Focus – On Wednesday at 2:00 p.m., the House Science Committee’s Energy panel will hold a hearing to discuss unearthing Innovation of subsurface science and technology in the US. Witnesses include NETL’s Alexandra Hakala, Fervo Energy’s Ben Serrurier, Pacific NW NL’s Kevin Russo, MIT’s Haruko Murakami Wainwright and Baker Hughes Allyson Book.

Senate Enviro Looks at Clean Trains – The Senate Environment holds a hearing on Wednesday at 2:30 p.m. focusing on opportunities for reducing emissions from America's rail network.

WaPo Hosts Tucson Mayor on Resilience – On Wednesday at 3:00 p.m., Tucson Mayor Regina Romero joins Washington Post climate zeitgeist reporter Shannon Osaka to discuss how her city is navigating extreme weather and other ongoing challenges from water conservation to affordable housing.

Dingell Headlines POLITICO Energy Discussion – POLITICO holds a forum on Wednesday at 5:15 p.m. for a timely conversation that will explore whether new IRA and other Federal initiatives are paying off and what it will really take to reduce our energy consumption and support clean energy jobs. Nearly a year has passed since the passage of the Inflation Reduction Act, which included provisions to incentivize consumers to purchase more sustainable products. The event will consider how well the law’s provisions are living up to Congress’ intent, what policy levers are most effective in influencing consumer behavior, what technological advances are changing the game and what are the long-term prospects for reductions in energy consumption. Rep. Debbie Dingell keynotes.

Summit Looks at Global Nuclear Market – The U.S. Nuclear Industry Council holds a summit on the Global Nuclear Energy Market on Thursday. Enoh Ebong, director of the U.S. Trade and Development Agency, delivers keynote remarks and former Deputy Energy Secretary Dan Poneman, CEO of Centrus Energy and Pawel Luzak, economic officer at the Polish Embassy will speak.

Senate Environment Panel Tackles Single Use Waste – On Thursday at 9:45 a.m., the Senate Environment and Public Works Chemical Safety, Waste Management, Environmental Justice, and Regulatory Oversight Subcommittee holds a hearing on solutions for single-use waste.

FERC Open Meeting – FERC holds Is monthly open Meeting on Thursday at 10:00 a.m. Commissioners looking at generator interconnection queues and gas projects that may provide insight into how this FERC approaching its environmental review requirements.

OEP Looks at RNG – OurEnergyPolicy holds a forum on Thursday at noon on renewable natural gas. Sen. Thom Tillis headlines and the event features panelists from Clean Energy Fuels, Argonne National Laboratory, and RNG Coalition will discuss the future of solar power in the U.S., barriers to advancement and the key economic, policy and regulatory issues with David Manning (Brookhaven National Laboratory).

Forum Looks at Nuclear Future – On Thursday at Noon, the Nuclear Innovation Alliance (NIA) will release annual updates to their Advanced Nuclear Energy Primer and Company Compendium and debut a new Map resource outlining where projects are being planned. In addition, this virtual briefing will feature commentary and updates from leading advanced reactor developers as well as insight and commentary from NIA staff.

House Resource Panel Looks at National Parks – The House Natural Resources Oversight and Investigations Subcommittee holds a hearing on Thursday at 2:00 p.m. examining barriers to access for visitors at America's National Parks.”

USEA Looks at IRA Monetization – On Thursday at 2:30 p.m., The US Energy Assn holds a virtual discussion on tax credit monetization under the IRA. The presentation will cover the IRA’s new transfer and elective payment rules in a Fireside Chat with experts from Andrews Kurth.

CSIS Looks at Mexico Nat Gas Sector – On Thursday at 4:00 p.m., the CSIS Americas Program holds a conversation on energy security, the environment, and new opportunities for Mexico's natural gas sector. This event will focus on the role of Mexico's natural gas sector in the broader context of North American, and global energy security. It will delve into questions of production, distribution, and key end-users, as well as the obstacles to expanding natural gas infrastructure to underserved populations. It will also discuss how cooperation on natural gas can offer a means for the United States, Mexico, and Canada alike to reset the trilateral conversation around energy.

 

IN THE FUTURE

RFF Hosts 45V Discussion – Resources for the Future (RFF) holds an expert panel discussion on Monday July 31^st at 2:00 p.m. on the challenges in implementing the IRA’s 45V hydrogen tax credit and the implications of the choices that Treasury must make in the coming weeks.

Forum Looks at Virtual Power Plants – The Clean Energy States Alliance holds a webinar on Thursday August 3^rd at 1:00 p.m. focused on a new study prepared by energy analysts from The Brattle Group that explores the cost and ability to serve critical resource adequacy needs from virtual power plants (VPPs).  In this Clean Energy Group webinar, panelists will discuss the findings of the report and share how VPPs can reduce reliance on high polluting power plants during peak energy use hours.

DOE Geothermal Update Set – DOE’s Geothermal Technologies Office’s (GTO) holds its Quarterly Webinar on Thursday August 3^rd at 1:30 p.m. to catch up with GTO, receive project updates, and learn past quarter highlights. Paul Schwering from Sandia National Laboratories will be joining the event to highlight GTO’s BRIDGE Initiative and the public data-palooza going on in the geothermal community right now.

Climate Week NYC – Climate Week NYC starts on Sunday September 17 with the Opening Ceremony. On Monday and Tuesday, September 18-19, Climate Group hosts The Hub Live, Climate Week NYC’s interactive program for innovative solutions, technologies and ideas that drive forward climate action now.

Clean Energy Week – National Clean Energy week will be held on September 25^th to 29^th. National Clean Energy Week is a celebration of the policies, industries, and innovations that power our daily lives while producing no or very little greenhouse gas emissions.

Natural Gas Conference Set – Hart Energy LIVE's second America’s Natural Gas conference will be held on September 27^th in Houston and will focus on gas growth potential from the Marcellus and Haynesville to gas fairways in the Permian, Eagle Ford, and Gulf of Mexico. This conference unites American gas and energy players with world-leading influential experts, policymakers, decision-makers and business leaders to share their views on the significant issues shaping the global energy agenda.