Energy Update: Week of July 31st

Friends,

August is just about here!!!  And Congress is on the move back the district work period.  I head to Columbus, Ohio on Friday morning for the 100-mile charity ride for OSU James Center Cancer research. Not your last chance, but please consider jumping in and help me reach a goal to raise $10K for cancer research. 100% of all donations goes directly to innovative cancer research.  Any donation is a greatly appreciated: https://www.pelotonia.org/profile/FM735496

First off, major congrats to our friend Ethan Zindler, who is going to become the Treasury Department’s new climate counselor.  Secretary Yellen made the announcement late last week.  Zindler most recently served as head of Americas at BloombergNEF and is well known for his role in BNEF’s annual Sustainable Factbook (as well as a great lacrosse dad to his daughters.)  With a bunch of Treasury guidance and IRA implementation still on the horizon, he will be busy. 

Speaking of Treasury and IRA guidance, there is an important event today at 2:00 p.m. at Resources for the Future (RFF) on hydrogen. Chamber Global Energy Institute head Marty Durbin and ACP’s Jason Grumet headline a forum 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.

Tomorrow, USEA holds a media brief on utilities and extreme heat with speakers from EPRI, PJM, Southwest Power Pool and Tri-State while Wednesday Heritage hosts a conversation with oil executive Harold Hamm (who has a new book out tomorrow: “Game Changer: Our 50-Year Mission to Secure America’s Energy Independence,”).

Congress has headed for the exits so I suspect it will be quiet here in Washington.  Probably no regular updates until after Labor Day, but we will keep you apprised of any new action as it happens.  

Enjoy August…

                                                                                                          

FRANKLY SPOKEN

 “With these new incentives, we are encouraging folks to move to energy efficient options — notice I said ‘encouraging folks’ — but let’s be clear, we are not requiring, not mandating anyone to give up their gas stove. If that were the case, I would be thrown out of my own house.””

New Jersey Board of Public Utilities President Joseph Fiordaliso amid a political firestorm from Republicans, South Jersey Democrats and industry groups on the BPU’s rule giving power companies the option of helping customers switch from gas to electric appliances.

 

ON THE PODCAST

Double APRA-E Today: Dr. Wang on Bracewell’s Madam Policy – In a recent episode of Bracewell PRG’s Madam Policy podcast, my colleague Dee Martin interviews trailblazer and innovator Dr. Evelyn Wang. During her successful tenure as Head of the Department of Mechanical Engineering at the Massachusetts Institute of Technology (MIT), President Biden nominated Dr. Wang to lead the Advanced Research Projects Agency-Energy (ARPA-E), the “crown jewel” and research arm of DOE. Tasked with thinking boldly and outside the box, ARPA-E is a catalyst for early-stage R&D. Having participated in APRA-E’s Energy Innovation Summit to now leading it, Dr. Wang is strengthening the community of industry leaders and innovators who share her passion for solving energy problems and powering the clean energy future.

More ARPA-E Dr. Wang From Columbia – On the latest episode of Columbia Energy Exchange, host Bill Loveless talks to ARPA-E head Dr. Evelyn Wang, as well as Dr. Laurent Pilon. They discuss the Advanced Research Projects Agency - Energy's unique approach to developing and launching high-risk energy projects.

 

FUN OPINIONS

Bloomberg’s Blas: World Oil Consumption Still Growing – In his opinion column for Bloomberg, oil expert Javier Blas writes in this age of climate crisis, the world is consuming more crude than ever. Peak oil demand? Not yet. Maybe one day, perhaps even soon, around 2030. For now, however, the global economy still runs on oil.

 

FROG BLOG

Oil/Gas Already Reducing Methane Emissions – API President and CEO Mike Sommers also outlined the concrete actions the U.S. natural gas and oil industry is taking to tackle methane emissions from our operations in an opinion piece on Real Clear Energy this morning. 

ACORE Head Looks at IRA State of Play – President and CEO of the American Council on Renewable Energy (ACORE) Gregory Wetstone wrote a new column in Recharge News reflecting on the state of play for the American energy transition nearly a year after the Inflation Reduction Act (IRA) was enacted into law through findings from its latest Expectations for Renewable Energy Finance in 2023-2026 report.

 

FUN FACTS

Primary US Energy Production Changes – Two great charts on how U.S. energy production has changed since 2010:

 

IN THE NEWS

Zindler Named Treasury Climate Counselor – The U.S. Treasury Department said Ethan Zindler, a climate and clean energy research expert, has been named its new climate counselor.  Zindler will lead Treasury’s efforts to unlock financing to achieve a net-zero carbon emissions economy. Zindler replaces John Morton, who stepped down in December from running Treasury's "climate hub" to return to the private climate finance sector. The hub is aimed at coordinating climate policy, playing a strong role in the green energy incentives in the Inflation Reduction Act and negotiating with South Africa and Indonesia on Just Energy Transition Partnerships. Zindler most recently served as head of the Americas division at BloombergNEF (BNEF), a provider of data, research and analysis on clean power, electric vehicles, carbon credit markets, commodities and other low-carbon economy initiatives.

BCSE’s Lisa Jacobson on Zindler – Lisa Jacobson, President of the Business Council for Sustainable Energy and co-author of the Sustainable Factbook, said Zindler is the kind of expert that Treasury and this Administration needs as they contemplate the difficult challenges of implementing the IRA in a meaningful way that will accomplish their climate goals and increase the speed of our energy transition. “He has made his career understanding and communicating the complexities of the energy transition and is widely known for his US and international expertise on energy data and analysis.”

White House NEPA Proposal Posted – The White House released a proposed rule to update to the landmark National Environmental Policy Act included in that bill are designed to enable faster building of both fossil fuel and clean energy infrastructure projects. The proposed changes meet Congress-ordered federal permitting requirements in last month's bipartisan debt ceiling deal, but also added climate, racial and economic fairness factors that are likely to spark fierce pushback from Republicans. The U.S. Chamber of Commerce Senior Vice President of Policy, Marty Durbin, said it is time to get serious about permitting reform, and this proposal is a step in the wrong direction. Despite all the momentum to enact meaningful permitting reform in Congress and supportive statements from the Biden Administration, we’re disappointed that it has proposed yet another rule that will add additional subjective permitting requirements, increase litigation risks, and slow things down. While the proposed rule does include some permit streamlining measures required by the debt ceiling agreement, it also contains provisions that would further delay project approvals for nearly $2 trillion in public investments.

“The permitting process is already overcomplicated, takes too long, and allows for endless legal challenges. That’s why it takes an average of 4.5 years to get a federal permit through NEPA, with many projects taking far longer. Some projects never see the light of day because of permitting roadblocks. As a result, we’re missing out on opportunities to make America’s transportation systems more efficient and resilient, improve communications infrastructure to bridge the digital divide, and build energy projects necessary to meet environmental and energy security goals.”

MVP Unstuck by SCOTUS – The Supreme Court struck down orders from a lower court that blocked the construction of the Mountain Valley Pipeline, all but ensuring the contentious natural gas project can be built and start operating by the end of the year. The order was handed down while the 4th U.S. Circuit Court of Appeals was in the midst of a hearing on the matter. “The application to vacate stays presented to The Chief Justice and by him referred to the Court is granted,” the short order states. There were no noted dissents to the order.

FERC Approved Plan to Speed Up Queue – The Federal Energy Regulatory Commission unanimously approved new rules that aim to revamp how quickly clean energy projects are assessed, as 2,000 GW of projects wait for grid connection approvals. The new rules would allow for energy projects in more advanced stages to be evaluated first and in groups instead of on a first-come, first-served basis.

DOT Posts Fuel Econ Rules – The Department of Transportation proposed a more aggressive fuel economy rule that aims to bring the fleetwide average to around 46 miles per gallon by 2032, in real-world terms. The proposal would require automakers to improve their fuel efficiency by 2% annually starting in model year 2027 for passenger cars and 4% for light trucks. API VP of Downstream Policy Will Hupman said, “NHTSA’s proposal is yet another attempt by the Biden administration to restrict Americans’ freedom to decide what vehicle fits their needs and budget. Like EPA’s proposals, this rule appears to be a de facto ban on cars and trucks using liquid fuels, which can and should be a part of the solution to reduce carbon emissions.  Further, it threatens to hurt consumers with higher costs and greater reliance on foreign supply chains. We are continuing to review NHTSA’s proposed rule.”

Air Liquide Awarded President’s Volunteer Service Award for Commitment to Volunteerism – Air Liquide received The President’s Volunteer Service Award in recognition of its commitment to volunteering, a key tenet of its Citizen at Work program. The company was awarded the Silver 2022 President’s Volunteer Service Award based on 327 volunteer hours that the organization donated through employee service to the Houston Food Bank in 2022. The President’s Volunteer Service Award was established to recognize the important role of volunteers and their contributions to the United States’ strength and national identity. It honors those whose service positively impacts communities in every corner of the nation and inspires those around them to take action. The award is administered by Points of Light and AmeriCorps and is widely considered among the nation’s most revered volunteer award programs. Air Liquide’s commitment to the community is underscored by our ADVANCE strategic plan, which directs company and employee efforts to “act for all.” This strategic objective is supported by the company’s Citizen at Work initiative and volunteering benefits. Through its global Citizen at Work program, Air Liquide encourages and supports employees’ involvement in their local communities through volunteering. In addition, 24 hours of paid volunteer service time per year allows employees in the U.S. the flexibility to contribute to society.

NRC Approves Vogtle Fuel Loading – The Nuclear Regulatory Commission gave Georgia Power Co. approval to begin loading fuel into a second nuclear reactor at Plant Vogtle. The developer anticipates loading fuel into the unit 4 reactor by the end of September, with an expectation of reaching commercial operation by March 2024.

 

ON THE SCHEDULE THIS WEEK

RFF Hosts 45V Discussion – Resources for the Future (RFF) holds an expert panel discussion today 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.

USEA Looks Summer Heat Utility Challenges – The US Energy Association will hold a press briefing on Zoom — another in its virtual press briefing series —tomorrow at 11:00 a.m. to look at the performance of the utilities this summer, and the lessons for the future for the United States and the world. As usual, a panel of experts will answer questions from a panel of reporters who cover energy. Mark Menezes, USEA president and CEO, will intro the panels, which includes Tri-State G&T’s Barry Ingold, California ISO head Elliot Mainzer, SPP exec Lanny Nickell and EPRI’s Morgan Scott.

Heritage Hosts Conversation with Harold 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 to Look at China, EVs – The Washington International Trade Association and the Asia Society Policy Institute hold a virtual discussion on Thursday at 10:00 a.m., on China and the rise of EVs focusing on the impact on trade and the environment. Among the speakers will be Brian Janovitz, Chief Counsel for China Trade Enforcement at USTR.

BCSE Looks at DOE Loan Program – The Business Council for Sustainable Energy hosts a webinar on Thursday at 11:00 a.m. with Dan Cross-Call, Senior Consultant for the Energy Department Loan Program Office’s Outreach and Business Development division. This interactive discussion will allow companies to learn more about the new opportunities under these authorities and engagement with the LPO after guidance was released last week.

Forum Looks at Virtual Power Plants – The Clean Energy States Alliance holds a webinar on Thursday 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 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.

Goodell Book Event Set – Politics and Prose Bookstore holds a book discussion on Thursday at 7:00 p.m. with Jeff Goodell on "The Heat Will Kill You First: Life and Death on a Scorched Planet."

 

IN THE FUTURE

Forum Looks at Offshore Wind in East Asia – The Atlantic Council's Global Energy Center holds a virtual discussion next Monday August 7^th at 9:00 a.m. on leveraging offshore wind to decarbonize East Asia. During this discussion, experts will identify key opportunities and challenges facing offshore wind developers and policymakers, while providing perspectives on the unique conditions of each offshore wind market.

DOE Looks at Heat Pumps – The Department of Energy holds a forum on Tuesday August 8^th at 11:00 a.m. to talk about the most important things about heat pumps. Heat pumps can be used as a decarbonization strategy in many building sizes and types. The forum will offer insights from multiple building stakeholders on the top five things building owners need to know about heat pumps to leverage them as an effective decarbonization solution.

Moniz, Sen. Smith to Discuss Clean Energy – On Wednesday August 9^th at 3:00 p.m., the EFI Foundation CEO Ernest Moniz hosts a fireside chat with Sen. Tina Smith on the provisions in three critical pieces of legislation—the Infrastructure Investment and Jobs Act, the Inflation Reduction Act, and CHIPS and Science Act—designed to provide Americans with family-supporting jobs and the free and fair choice to join a union as we move toward a decarbonized future. Their conversation will be followed by an overview of a new EFI Foundation report, Job Quality—The Keystone of Clean Energy Industrial Policy, with coauthors David Foster and Hannah Sachs. The webinar will conclude with a panel discussion between clean energy business leaders and union representatives on how and why they are collaborating using the tools contained in the recent legislation and analyzed in the report. Panelists include LIUNA’s Kevin Reilly, Steelworkers rep Jim Strong, EDF Renewables Adam Sokolski and US Wind’s Tim Mack.

Forum to Look at Decarbonization – GreenBiz and the Electrification Coalition hold a webinar on Thursday August 10^th at Noon looking at ways to drive decarbonization. The decarbonization of transportation is accelerating, driven by economics, regulatory demands and climate goals.

Kerry Expected to Address Yale Conference – The 2023 Annual Conference of Global Research Alliance for Sustainable Finance and Investment (GRASFI), the leading international research conference on sustainable finance, will be held on August 23-25^th at Yale in New Haven (CT). With the climate emergency in plain sight, the importance of sustainable finance and investment is unmistakable. Climate Advisor John Kerry is expected to offer closing address to the conference.  Net-zero finance will be at the core of the conference, and our opening plenary will confront the views of Ilana Seid, Ambassador of Palau to the United Nations, Jane Ambachtsheer, Global Head of Sustainability at BNP Paribas Asset Management, and Brad Lander, Comptroller of New York City. The conference will also feature a debate on the "anti-ESG" movement with Mindy Lubber, CEO and President of Ceres, and Saker Nusseibeh, CEO of Federated Hermes International. The last plenary will provide much needed market insights on the investors' key research needs with Elizabeth Seeger, Member of the International Sustainability Standards Board (ISSB).

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.

Critical Mineral Forum Set – The Colorado School of Mines and the Payne Institute for Public Policy are hosting their annual Critical Minerals Symposium on September 21 and 22^nd in Golden, CO to convene world-class experts from government, business, investment and academics to engage in thoughtful discussion regarding the opportunities and challenges that lie ahead for the production and use of critical minerals, both internationally and domestically. The transition to a low carbon future will require an enormous amount of metals and minerals. Many of the key technologies, from renewable energy to electric vehicles, are witnessing dramatic growth. Critical minerals will become the backbone of the modern economy. However, the increase in demand for critical minerals will have profound impacts on the dynamics of trade, markets, and create new geopolitical challenges. Building on a long history of leadership in this area, Colorado School of Mines Critical Minerals Symposium will address these issues and more.

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.