Energy Update: Week of July 8

Friends,

Welcome back from a glorious 4^th of July week celebrating America's birthday (in so many ways).  I was busy cleaning my garage out on the 4^th which put me to sleep around 7:30 p.m., missing all the fireworks.  But I felt like I got a lot done.  Then, of course, we were so excited on Friday to see EPA roll out their 2019 RVO levels.  Thanks for that... We managed to rally our side to comment on Friday's announcement and even managed to get a few ads together which are running this week.

Of course, the beginning of July means the beginning of the Tour de France, the world's most grueling endurance test.  On Saturday, the 3-week bike race launched from Brussels, Belgium for stages 1 & 2   and after 21 stages will return to Paris on July 28.  Here is a good preview and summary of this year's course.  We are also watching Wimbledon as it moves into its second week with a lot of buzz on 15-year old American Coco Gauff, who has played her way into the 4^th round where she takes on former world #1 Simona Halep.  Finally, kudos to our US Women's National Soccer team, who continued their dominance in international play by winning the World Cup title yesterday with a 2-0 win over the Dutch in France.  

Congress returns to action this week, although I suspect it will be a slow rolling back into the action.  But it starts with a bang at the White House today at 3:30 p.m. when President Trump holds an event on his environmental stewardship.  He will be joined by EPA’s Andrew Wheeler, Interior’s David Bernhardt and CEQ’s Mary Neumayr.  I happen to be in Detroit, where shockingly Justin Amash's announcement about leaving the Republican Party and perhaps running for President was "above-the-fold" front-page news in Sunday's Detroit Free Press.  As a former MI Congressional Press Sect that seemed quite hilarious to me.  

This week, House Transpo’s Water Resources Subcommittee is holding a hearing Wednesday on the status of WRDA implementation and assessing future needs.  One of the witnesses will be Rob Innis, who is plant manager of the LafargeHolcim plant in Sparrow Point, MD.  Senate EPW also looks at transportation as well on Wednesday.   Senate Energy looks at LNG on Thursday and House Homeland Security panel on Emergency Preparedness, Response, and Recovery looks at recovery efforts for Puerto Rico and the U.S. Virgin Islands after hurricanes Irma and Maria and House Science looks at melting glaciers.  Finally, on Friday House Energy and Commerce’s Energy panel looks at cyberthreats to the grid.

Other events include DOE’s ARPA-E holding its Energy Innovation Summit today through Wednesday in Denver, while the Hydrogen and Fuel Cell Energy Summit gathers Wednesday and Thursday in Boston.  Tomorrow in DC, R Street’s Legislative Branch Capacity Working Group holds a focused discussion on how Congress makes energy policy and interacts with FERC.

Finally, check out the recent opinion piece on FoxNews.com by EIRP President and former State Department official Paul Saunders that addresses the US-China climate change debate at the G20 and how it may play out.

Baseball is in the All Star Break in Cleveland with the Game tomorrow and homerun contest tonight.  Call with questions…

Best,

Frank Maisano

(202) 828-5845

C. (202) 997-5932

 

FRANKLY SPOKEN

“EPA’s announcement stays away from the retroactive rulemaking favored by some biofuel lobbyists.  That means no reopening of the 2016 RVO and no reallocations based on smaller-refinery exceptions.  Had EPA gone in any other direction, it could have created profound due process and statutory problems harmful both to the regulated community and the integrity of the RFS itself.”

Refining expert Scott Segal on the 2019 EPA volume Obligations for the 2019 Renewable Fuels Standard

 

ON THE PODCAST

Hard Fact Podcast Look at Transportation, Infrastructure Debate – With another presidential race gearing up, transportation reporters are now saying that a surface reauthorization extension is all one can hope for out of Congress next year. Frustration in Washington runs high as both sides have failed to find a pragmatic funding mechanism to fix America’s deteriorating roads and bridges.  PCA’s Hard Facts Podcast Interviews Steve Sandherr, the CEO of Associated General Contractors of America, who gives his thoughts on how partisanship is crushing the hope of improving American infrastructure.

 

FUN OPINIONS

EIRP Saunders: The China G20 Climate Battle – A new op-ed by Energy Innovation Reform Project President Paul Saunders that argues to promote deeper U.S.-China cooperation in combating climate change, advocates will have to demonstrate that the benefits- in both economic and climate terms - be greater than the possible costs in U.S. jobs, competitiveness, and security due to further transfers of wealth and technology from the United States to China.  This is something that is rarely on the radar screen of environmental activists but a constant worry of unions and their workers.

IN THE NEWS

Ethanol RVO Announced – On Friday, EPA issued proposed volume requirements under the Renewable Fuel Standard program for cellulosic biofuel, advanced biofuel, and total renewable fuel for calendar year 2020. EPA also proposed biomass-based diesel volume standards for calendar year 2021. This puts EPA on target to publish the final RFS Renewable Volume Obligations (RVOs) on time for the third consecutive year. This is in contrast to the previous administration, which frequently failed to release their RVOs by the date intended by Congress.

Some key elements of today’s action:

• “Conventional” renewable fuel volumes, primarily met by corn ethanol, would be maintained at the implied 15-billion gallon target set by Congress.
• EPA is proposing an advanced biofuel volume requirement for 2020 of 5.04 billion gallons, which is 0.12 billion gallons higher than the advanced biofuel volume requirement for 2019.
• The cellulosic biofuel volume requirement of 0.54 billion ethanol-equivalent gallons for 2020 is based on our production projection which is 0.12 billion ethanol-equivalent gallons higher than the cellulosic biofuel volume finalized for 2019.
• EPA is proposing to maintain the biomass-based diesel (BBD) volume for 2021 at 2.43 billion gallons.

Proposed and Final Renewable Fuel Volume Requirements for 2019-2021

Refiners Respond to RVOs – The Fueling American Jobs Coalition said about the RVOs in keeping with annual ritual, EPA has once again finalized RVO guidelines for the coming year that “artificially elevate the requirement for ethanol in motor fuels far above true market demand. Playing out the second part of the ritual, the very same renewable fuels players whose businesses are propped up by a government mandate complain that the requirements should be even higher.”  FAJC said the calls for ever higher RVOs mistakenly assume that demand for ethanol has declined. However, pro-ethanol experts and earnings-call statements alike concede that legally required efforts to address harms to small refiners have had no adverse effect on ethanol production, sales or demand. Meanwhile, renewable identification number (RINs) prices crept up this week, reaffirming how skittish that market remains.  FAJC: “The implementation of the RFS is deeply flawed, needlessly penalizing independent refiners, small gasoline retailers and others. This basic problem is acknowledged by most everyone who does not profit directly from the RFS. Congress and EPA should subject the program to wholesale repair.”

Refiners Roll Out Ethanol, SRE Ad Campaign – With the RVOs coming out on Friday, refiners also rolled out a new advertising sponsored by Fueling American Jobs Coalition that counters the false narrative being offered by the ethanol industry on small refinery exemptions.  Just like any issue with the ethanol industry, No good deed goes unpunished or complained about.   Check out the new TV ad: POTUS, protect our small refineries!  https://www.youtube.com/watch?v=R2tZ3XoCgsw&feature=youtu.be  The ad began airing late last week nationally on Fox and other cable channels with a particular focus on Pennsylvania and other states where refinery jobs are at stake.  Without  reasonable common sense solution, the president runs the risk of turning his back on the American manufacturing workers who helped make his presidency a reality.  Fueling American Jobs Coalition’s members include a wide range of U.S. companies including independent refiners, unions and small businesses.

AFPM Chimes in With Ads Too – The American Fuel & Petrochemical Manufacturers (AFPM) is also launching a TV ad buy today that will reach viewers in Washington, D.C. and key battleground states Michigan, Pennsylvania, Ohio, and Wisconsin. The ad calls on the president to protect U.S. refinery jobs against unchecked ethanol mandates. The voiceover focuses on the president’s promises to refiners and addresses ethanol mandates broadly, without specifically calling out SREs.

Report: Resilient Infrastructure Pays off Four-Fold – A new report from the World Bank says resilient infrastructure pays off four-fold for low- and middle-income countries and could save those countries $4.2 trillion over the life of the infrastructure, says. Such investments become even more cost effective as the impacts of climate change worsen, according to the report, “Lifelines: The Resilient Infrastructure Opportunity.” The cost of inaction, however, is $1 trillion over the next decade. Without climate change, resilient infrastructure saves $2 for every $1 spent under the median scenario but with climate change, the countries would save $4 for every $1 spent.  The report uses what might be the first high-level analysis of engineering options to improve resilience in the power, water and transportation sectors. Performed by Miyamoto International, engineers for the seismic and structural company calculated the cost of engineering improvements for EQ motion, liquefaction, wind, flood and landslides for 18 types of infrastructure, and how much those upgrades would reduce damages.  When researching the improvements, the team found it was difficult to calculate improvements for resilience when quality control on basic infrastructure was lacking.  For instance, Indonesian earthquake codes are on par with the United States, but construction in the field is not to the same standard, noted Amir Gilani, one of the authors of the Miyamoto report.  The number one recommendation in the World Bank report is to “get the basics right,” through, planning, financing, regulations and enforcement. “A poorly maintained infrastructure asset cannot be resilient,” according to the World Bank report.

Infrastructure Costs – As MIT experts studying these issues have reported, the lack of resilient infrastructure costs individuals and companies up to $390 billion a year in low- and middle-income countries—that’s in addition to the $18 billion in direct costs to power generation and other infrastructure because of natural disasters in those countries. In low- and middle-income countries, designs for more resilient assets in the power, water and sanitation, and transport sectors would cost between $11 billion and $65 billion a year by 2030—an incremental cost of around 3 % compared with overall investment needs, according to the report.

 

ON THE SCHEDULE THIS WEEK

ARPA-E Innovation Summit Set –Today through Wednesday in Denver. DOE’s ARPA-E hosts its Energy Innovation Summit.  The Summit is an annual conference and technology showcase that brings together experts from different technical disciplines and professional communities to think about America's energy challenges in new and innovative ways. Now in its tenth year, the Summit offers a unique, three-day program aimed at moving transformational energy technologies out of the lab and into the market.

Atlantic Council Oil, Gas Conference Set – The Atlantic Council hosts a discussion today on the Gas and Oil Technology Collaborate Program (GOT CP).  Pushed by IEA, the effort combines the efforts of government, academia, and industry to explore the role of low-carbon oil and gas in meeting the challenges of growing energy demand over the long term, and support the low-carbon technologies, policy tools, and investments that will positively contribute to anthropogenic climate change. DOE Deputy Assistant Secretary for Oil and Natural Gas Shawn Bennett and Equinor’s Steiner Eikaas will speak among others. 

Weatherization Office Hosts Energy Discussion for Schools – Today and tomorrow, the Weatherization and Intergovernmental Programs Office at DOE are hosting "State, Local, and K-12 Leadership: Unlocking Energy Affordability."  Discussions at this event will focus on the most pervasive barriers on your path to maximizing energy affordability and achieving significant energy and cost savings in the public sector. You can expect interactive sessions that target identified barriers, peer exchanges on strategies and best practices with DOE staff and public-sector leaders from across the country, and collaborative technical assistance planning tailored to your energy priorities.

Briefing to Look at Great Lakes Climate – Tomorrow in the Capitol Visitors Center, the Environmental Law & Policy Center and the Northeast-Midwest Institute hold a Congressional briefing on the impacts climate change is having on the Great Lakes and the region. In March, the Environmental Law & Policy Center released a report, authored by 18 leading scientists and experts from Midwest and Canadian universities and research institutions, drawing on the array of existing research to assess how the shifting global climate impacts the unique Great Lakes region.  The event features an in-depth conversation about the known climate science in our region and public policies that could help curb climate change’s adverse impacts on the Great Lakes.

Forum to Feature Former Key Committee Heads on Power – R Street’s Legislative Branch Capacity Working Group holds a focused discussion tomorrow at Noon in the CVC on how Congress makes energy policy and interacts with the agency responsible for the regulation of most of the sector. The Federal Power Act of 1935 and the Public Utility Regulatory Policies Act (PURPA) of 1978 provide a wide delegation of legislative authority to FERC.  Few individuals know the dynamic between Congress and FERC better than the top staff of the committees of jurisdiction. Recent alumni of those committees join R Street’s Energy Policy Director, Travis Kavulla, a former utility regulator, in moderated discussion about how Congress can effectively legislate in this complex policy arena.  Panelists will include Colin Hayes, Former Staff Director at Senate Energy and Tom Hassenboehler, Former Chief Counsel for Energy & Environment at the U.S. House Energy and Commerce Committee.

WCEE Happy Hour – Tomorrow at Spin DC

Hydrogen Fuel Cell Summit Set for Boston – ACI’s US Hydrogen & Fuel Cells Energy Summit will be taking place in Boston on Wednesday and Thursday. The two day event will bring together key industry stakeholders from all facets of the hydrogen industry to discuss the required economical and infrastructural innovations for a sustainable future energy carrier. With incredible advances recently in hydrogen it is the best time to explore this booming industry. The event will feature the latest innovations, the state of investment and the upcoming economic opportunities.  Our friends at Air Liquide will be on the agenda.

Senate Enviro to Look at Infrastructure – The Senate Environment Committee will hold a hearing Wednesday at 10:00 a.m. on investing in America’s surface transportation infrastructure.  The hearing will focus on the need for a multi-year reauthorization bill.

House Transpo Water Panel Looks at WRDA  Status – The House Water Resources Subcommittee is holding a hearing on Wednesday at 10:00 on the Water Resources Development Act’s status of implementation and assessing future needs. One of the witnesses will be Rob Innis, who is the plant manager of the LafargeHolcim plant in Sparrow Point, MD. He is testifying on behalf of Waterways Council, Inc.

Forum to Look at E-Mobility – The Electric Drive Transportation Association holds a forum on Wednesday at 1:30 p.m. at the National Press Club to discuss building E-Mobility into 21^st Century Infrastructure. Speakers include Sen. Debbie Stabenow and MI Rep. Dan Kildee as well as two industry panels.

Carbon Tax Forum Set to Discuss Luntz Polling – On Wednesday evening in 2045 Rayburn, Students for Carbon Dividends, a national bipartisan, conservative-led campus coalition, that backs the Carbon Dividends holds a forum on the recent polling framework researched by the Luntz Group.   The free-market plan has earned record-breaking support from economists, businesses, environmental groups, and more. It was recently endorsed 3500+ economists across the country—the largest statement of economists in American history.

Forum to Look at State Green Banks – The Atlantic Council hosts an event on Wednesday at 5:30 p.m. looking at green banks and whether they are a new tool for governments seeking to harness the benefits of the energy transition that can unlock investment for clean energy projects and initiatives. There are currently fourteen green banks in operation across nine different states and the District of Columbia, and a number of others exist internationally as well. Since 2011, US green banks alone have injected USD 3.67 billion in total investment into local economies, from Hawaii to Rhode Island. Numerous presidential candidates have recently proposed the development of a federal green bank, and legislation has been introduced in both chambers of Congress to formally create one. Join us as we speak with green bank leaders from across the United States about what the green bank movement has accomplished thus far, and where it is headed in the future.  Former FCC Commissioner Reed Hundt, now CEO of the Coalition for Green Capital leads the discussion with state green bank leaders from Rhode Island, Hawaii, Michigan and Connecticut. 

Clean Energy Expo on Cap Hill – The 21^st Annual Congressional Renewable Energy and Energy Efficiency EXPO and Policy Forum is set for Thursday to showcase renewable energy and energy efficiency technologies. In every state across the country, these technologies are having a significant impact in business development and job creation in the manufacturing, transmission, power, transportation, and building sectors. The bipartisan House Renewable Energy & Energy Efficiency Caucus is the Expo's honorary co-host.

DOE Energy Efficiency Office Joins Job Fair – The U.S. Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy (EERE) will participate in DOE’s National Nuclear Security Administration job fair on Thursday at the DoubleTree by Hilton Hotel Crystal City. Hiring managers will be on-site to conduct interviews for engineer and physical scientist positions based in Washington, DC, and Golden, CO, and contracting officer positions in Golden, CO.

House Science Looks at Ice Sheets – The House Science Committee holds a hearing on Thursday at 10:00 a.m. on glacial and ice sheet melt in a changing climate.

House Resources to Discuss Federal Coal Program – On Thursday at 10:00 a.m., the House Resources Subcommittee on Energy and Mineral Resources will hold an oversight hearing on the future of the Federal coal program.

Senate Energy Looks at LNG Markets – The Senate Energy Committee holds a hearing on Thursday at 10:00 a.m. committee hearing to examine evolving global natural gas markets, the increasingly important role of U.S. liquefied natural gas, and the competitive outlook. The Committee will also hold a legislative hearing tomorrow to look at a series of bills. DOE’s Bruce Walker and Shawn Bennett will testify.

House Energy to Address Cyber Threats to Grid – The Subcommittee on Energy of the Committee on Energy and Commerce will hold a hearing on Friday, July 12, 2019, at 9:30 a.m. addressing cyber threats to the grid.

Wilson Looks at Nuclear, Climate – On Friday at 11:00 a.m., the Woodrow Wilson Center holds a forum on climate change and the inclusion of nuclear energy.  Author Daniel Poneman argues that it does, despite the risks that atomic materials and technology could fall into the hands of terrorists. Drawing on his extensive experience as a former Deputy Secretary of the U.S. Department of Energy and former member of the National Security Council staff, Poneman argues that the issues of atomic power and climate change are inextricably linked. He will address the dangers and offer a series of policy and security proposals premised on cooperation between government and industry to maximize energy benefits and minimize risks.

Forum to Focus on Energy Dominance – The Texas Public Policy Foundation holds a forum on Friday at 12:30 p.m. to look at four things no one is telling you about American energy dominance.

 

IN THE FUTURE

Cal Energy Summit Set – The 7^th annual California Energy Summit will be held at the Grand Hotel Downtown in Los Angeles on July 16-18.  Our friend Dan Reicher of Stanford’s Taylor Center for Energy Policy will be among the more than 70 speakers.

IEA to Address Global Energy, Hydrogen – The CSIS Energy & National Security Program hosts a forum on Tuesday July 16^th on progress toward global energy transitions, featuring IEA’s Dave Turk. The presentation and discussion will pull from a range of new IEA technology analysis, including the 2019 version of Tracking Clean Energy Progress which finds that only 7 out of 45 technologies are on track toward a sustainable energy future, IEA’s new reports on The Future of Hydrogen: Seizing Today’s Opportunities and Nuclear Power in a Clean Energy System, as well as IEA’s enhanced focus on energy innovation.  The session will explore which energy technologies are seeing progress and why, and what lessons can be learned going forward for public- and private-sector decision-makers.

Columbia Hosts Gas Report Discussion – Speaking of IEA, next Tuesday in NYC at the Princeton Club at 9:30 a.m., the Center on Global Energy Policy hosts a presentation of their report "Gas 2019 – Analysis and Forecasts to 2024" with Jean-Baptiste Dubreuil, Senior Natural Gas Analyst at IEA. Gas 2019 explores changes underway for gas supply and demand, and other trends that are set to determine the evolution of the market over the next five years. Following his presentation, Mr. Dubreuil will join Akos Losz, senior research associate at the Center on Global Energy Policy and Leslie Palti-Guzman, Co-Founder and President of GasVista, on a panel moderated by Ira Joseph, Head of Gas & Power at S&P Global Platts.

Forum to Look at Rural Energy Programs – The Environmental and Energy Study Institute (EESI) and the National Cooperative Business Association CLUSA International (NCBA CLUSA) hold a forum on Tuesday July 16^th at 2:00 p.m. in HC-5 The Capitol to discuss innovative utility programs that are working to alleviate energy burdens faced by U.S. rural households. The briefing will showcase how rural electric co-ops and other rural utilities can benefit from USDA funding opportunities, such as the Rural Energy Savings Program (RESP) that was renewed in the latest Farm Bill. This program enables co-op members to upgrade their homes and businesses to cut their energy costs, which, in turn, supports jobs and rural economic growth by keeping more dollars in the local economy.  Speakers for this forum include House Majority Whip Jim Clyburn (SC), Rep G.K. Butterfield (NC) and my friend Curtis Wynn, CEO of the Roanoke Electric Cooperative (NC) and NRECA President, among others.

Forum to Look at Asia Climate, Pollution – The Wilson Center holds a forum on Tuesday July 16^th at 2:00 p.m. looking at solutions to air pollution and climate change issues in Asia. Speakers at this CEF meeting are co-authors of this report and will share their insights on how to move from casting blame for air pollution and climate change to capturing the benefits of integrated solutions in Asia.

USEA to Look at Advanced Energy – The US Energy Assn holds a forum on Wednesday July 17^th at 10:00 a.m. at the Ronald Reagan Building on advanced energy technology.  The event will look at electric power technologies and what is new at the national labs.  Among the speakers are Southern’s Stan Connelly, DOE’s Steve Winberg, and many more.

WCEE Forum to Look at Puerto Rico Energy Grid Resilience – WCEE holds a lunch and learn forum on Wednesday July 17^th at Noon at NRECA’s Capitol Hill Office to from experts that have been on the front lines of Puerto Rico’s recovery and are working to ensure that the island will be able to make a successful transition to cleaner and more reliable energy.

IEA to Present Gas Report – The CSIS Energy & National Security Program hosts a presentation on July 17^th at 2:00 p.m. looking at the recent IEA report, Gas 2019: Analysis and Forecast to 2024.  Gas 2019 explores the outlook for global gas supply and demand, the trade in liquefied natural gas (LNG), and the prospects for a global convergence in gas prices.  Jean-Baptiste Dubreuil (IEA) will present the report.  Following the presentation, Nikos Tsafos (CSIS) will moderate a discussion.

CSIS to Host Asia Energy Conference – The CSIS Energy & National Security Program hosts a conference Thursday July 18^th on energy investment and infrastructure in Asia. This conference will feature discussions on shared interests from U.S. and regional leaders in Asia's energy future and energy dynamics across the region, including how the energy trade map is changing.  The conference will include U.S. government, private sector, and other expert views on advances in the electric power sector, possible avenues for regional collaboration with the United States, and opportunities for governments and the private sector to advance developments on the energy agenda.  Speakers include State’s Frank Fannon and Sen. Cory Gardner.

NARUC Sets Summer Policy Summit – The National Association of Regulatory Utility Commissioners holds its Summer Policy Summit in Indianapolis on July 21^st through 24^th.  The series of meetings provides in-depth analysis of policy issues that are relevant to state utility regulators as well as stakeholder groups and federal regulators.

Chamber Energy Groups Sets Innovation Forum – The U.S. Chamber's Global Energy Institute hosts “EnergyInnovates: All In” on July 31^st.  The event will showcase innovators, projects, and technologies that have shaped today’s energy landscape – and are laying the groundwork for the future.  It will also feature key industry executives and employees, high-level officials, and notable energy experts.