Energy Update: Week of July 8th

Friends,

Hope you had a great few days over the fourth to celebrate our country and rest up for the final run to November's elections. And if you are in the Southeast Texas area impacted by Hurricane Beryl’s landfall, stay safe…

After a great week of tennis at Wimbledon, the tournament heads for home with finals this upcoming weekend, including yesterday’s stunning upset of #2 seed Coco Gauff at the hands of fellow American Emma Navarro.  Across the Channel, the as Tour de France rolls into its second week with Tadej Pogačar leading the grueling bike race that, for the first time, finishes in Nice, France this year. Why you ask? It ends one day before the Olympics' opening ceremonies. 

NATO leaders are in town this week which will create some waves, and not just with the DC traffic. The current upheaval caused by national elections in the UK, France and here in the US has created some uncertainty around the annual meeting. And while we kind of expected the presidential race to crowd out the energy and Climate Issues to a certain extent, President Joe Biden’s perilous standing is definitely overshadowing any late congressional energy policy initiatives ahead of November.

That said, Congress also rolls back into town as well after two weeks on the road to handle budget issues this week, including energy, environment and interior funding. This will almost certainly undercut any pre-election discussion of permitting and any other deals, at minimum until a lame-duck session.

Despite the change of focus, there are some key energy actions on tap. The revisit of EPA’s Michael Regan to House Oversight will happen on Wednesday. Of course, the dynamics of the discussion have changed given the SCOTUS decisions on Chevron, SEC ALJs and EPA’s “Good Neighbor” policy. Look for pressure on Regan from members on the current power plant and fuel economy rules. Also, the House Rules Committee is expected to push out legislation today aimed at stricter energy efficiency standards for refrigerators and dishwashers.

Outside events include tomorrow’s ACORE forum on new solar tariffs, a Wednesday BPC forum on climate and trade, as well as a US Energy Assn presser on innovation and Bloomberg Green launches a forum in San Francisco toward the end of the week. 

Finally, it is Shark Week so get ready for some great shows. The Republican Convention starts in Milwaukee over next weekend with all the action really launching on Monday. There are a lot of events going on at the Convention, so let us know if you are going and what you are doing.

Call with any questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932                                                                                                                              

FRANKLY SPOKEN

“The question is going to be, ‘Did Congress clearly intend to give EPA authority to force a fundamental shift in the transportation sector?’ And the answer may very well be that Congress can certainly do that itself, but there’s no indication that Congress intended to give EPA that power.”

Bracewell partner and former EPA Air Office head Jeff Holmstead in the Washington Post discussing the recent Supreme Court decision on “Chevron Doctrine”.

ON THE PODCAST

Political Expert Donovan Discusses Biden, Democrats Political Fallout – In this week’s Bracewell Lobby Shop podcast, my colleague and political expert Liam Donovan discusses what the political fallout from the presidential debate aftermath for the Biden campaign.

FUN OPINIONS

Chevron Ruling Will Make Major Changes on Rulemaking, Congress – In an opinion piece in Reuters, Bracewell environmental experts Brittany Pemberton and Danile Pope write as courts applied Chevron deference in the decades following the initial decision, the doctrine proved to be controversial and unwieldy. Accordingly, courts now must determine the "single, best meaning" of the text and may no longer defer to an agency's interpretation simply because a statute is ambiguous.

In the decision, the Court now clarifies that agencies are no longer free to start with the end in mind regardless of the scope of the initiative. Rather, they must look to, first, their authorizing legislation and carry out their missions as Congress defined them.

Forget Paris, There Must Be Conservative Climate Strategy – In a very interesting opinion piece in The Hill, the Atlantic Council’s Global Energy Center Landon Derentz writes there must be a case for a conservative climate strategy. President Donald Trump owes America more than prose on clean air and water. By articulating a counterstrategy that positions the U.S. at the forefront of efforts to slash global emissions, a future Trump administration would be set to reap massive economic and national security benefits.

A potential second Trump administration, therefore, would be wise to fixate less on a symbolic exit from the Paris agreement and more on articulating a credible international climate strategy that embraces the energy transition in a manner that empowers U.S. economic growth and national security. Such a strategy is an opportunity to emphasize longstanding conservative policy.

FROG BLOG

Decarbonizing Cement Is Critical to Climate – In her most recent Substack post, energy analyst Hannah Ritchie explains why CO2 emissions from cement production are significant and why there must be a strategy to reduce them. Ritchie explores the promise and problems with several methods, including carbon capture, which is a known technology, but very expensive, new concrete mixes that rely on less cement and hence produce less emissions (this would require construction regulation and building codes need updates) and replacements that don't create as much CO2, but require getting from lab to scale as well as removing regulatory barriers.

FUN FACTS

Aviation Share of Carbon Emissions: Estimates vary wildly over how much headway they will make in the coming years: BloombergNEF projects that SAF could account for between 5% and 71% of total aviation fuel demand by 2050.  

IN THE NEWS

NASCAR unveils EV prototype at Chicago Street Race – Over the Weekend at the Chicago Street Race, NASCAR and ABB, a global leader in electrification and automation, announced an ABB NASCAR Electrification Innovation Partnership, revealing a new EV prototype. ABB becomes the first Official Partner of NASCAR Impact, the sanctioning body’s platform driving NASCAR’s mission to strengthen its communities and contribute to a healthier planet, and together will work to advance NASCAR’s strategic sustainability ambitions across electrification. As part of the partnership, ABB in the United States will also help NASCAR achieve public sustainability targets around electrification and electric vehicle charging. While NASCAR is committed to the historic role of the combustion engine in racing, it is also committed to decarbonizing its operations and reducing its own carbon footprint to zero across.

BPC Report Outlines Carbon Tariff Action -- POLITICO is reporting that the Bipartisan Policy Center has released a report advising policymakers on key details to consider as Democrats and Republicans look to insert climate policy into U.S. trade rules through so-called carbon adjustment fees. The report argues that the simplest strategy to get something through Congress would be an imports-only measure in which the U.S. imposes a fee on products from high emitting countries like China without a corresponding domestic carbon price. In order to not alienate other countries – especially developing ones that might seek out China as an alternative partner – BPC advises that any carbon tariff policy should help facilitate the U.S. striking trade deals with other like-minded countries, forming a so-called “carbon club,” where participants would raise their pollution standards and face no fees or limited penalties.

Kuckro Honored by Press Club Owls – The Silver Owls, the National Press Club's association of long-time members, appointed our friend and long-time energy reporter Rod Kuckro as Head Hoot. Kuckro, who celebrates his 43^rd year as a Club member Aug. 1, is an active volunteer on an array of teams. His years of service have included roles on Speakers, Newsmakers, House and Forums, which he chaired. For years, he organized the Club’s tennis tournament, and he rekindled the mentoring program for younger members, still serving as a mentor. Kuckro joined the Club in 1981 when he worked for what was then The McGraw-Hill Companies – now S&P Global -- when its offices took up the Press Building’s entire fourth floor. Before then, he worked in the building as the foreign news editor of Gannett News Service, and as a correspondent for The Cincinnati Enquirer and the Oakland Tribune.

ON THE SCHEDULE THIS WEEK

BOEM Holding New England Offshore Wind Public Meetings – Today and Wednesday, the Bureau of Ocean Energy Management will hold a virtual public meeting to discuss its draft environmental assessment on the potential issuance of commercial wind energy leases in the Gulf of Maine. In April, the agency announced a proposed wind energy lease sale in eight potential leasing areas offshore Maine, Massachusetts, and New Hampshire totaling approximately one million acres.

House Energy, Environment Funding Ready – The House Appropriations Committee holds a markup tomorrow at 9:00a.m. of the FY2025 Commerce, Justice, Science, and Related Agencies bill; the FY2025 Interior, Environment, and Related Agencies bill; and the FY2025 Energy and Water Development and Related Agencies bill.

ACORE Looks at Solar Tariff – ACORE holds a webinar release tomorrow at 11:00 a.m. of a new analysis on the potential impact of new solar tariffs on solar cells and modules from Southeast Asia. The analysis will identify how the recent AD/CVD investigation, associated with the petition filed on April 24, could affect the solar sector’s progress in creating jobs, supporting domestic manufacturing, and providing low-cost clean energy to American consumers.

Chamber Holds NATO Defense Forum – Tomorrow at 1:00 p.m., the US Chamber of Commerce, U.S. Government and NATO hosts their inaugural NATO Summit Defense Industry Forum from 1:00 p.m. The Forum will convene senior government leaders from NATO Allies, Partners, and industry leaders to help develop recommendations supporting NATO’s autumn program of work on armaments and industrial work strands and committees convened to strengthen transatlantic defense industry collaboration. Expect some discussion of energy and Climate issues related to national security, including LNG exports. National Security Advisor Jake Sullivan headlines a long list of speakers.

DOE Holds SMR Funding Webinar – DOE hold an informational webinar tomorrow at 1:00 p.m. regarding a funding opportunity of up to $900 million to catalyze the deployment of Generation III+ small modular reactors. The department anticipates offering funding in two tiers: First Mover Team Support and Fast Follower Deployment Support. The webinar will provide additional information about the opportunity including the two tiers, next steps, and resources. This funding, provided by the 2021 Infrastructure Investment and Jobs Act, will help strengthen the domestic nuclear energy industry and spur follow-on reactor projects.

Bloomberg Green Festival Set – The Bloomberg Green Festival will be held in Seattle Wednesday to Friday.  The event is a global collaboration between innovators, policymakers, entrepreneurs, artists, activists, musicians and more, to explore new solutions spanning the entire climate spectrum. The festival will cover four themes vital to creating practical, collective change: Technology and Innovation, The Climate Economy, Greener Living and Green Policy. Through dining experiences, performances, installations and cultural moments, guests will be immersed in interactive learning, participate in data-driven experiences and build relationships with world-renowned experts.

EPA’s Regan Heads Back to House Oversight – On Wednesday at 10:00 a.m., the House Oversight and Accountability Committee holds a hearing on oversight of the EPA. Administrator Regan testifies.

Senate Environment Looks at Bridge Collapse – The Senate Environment Committee holds a hearing Wednesday at 10:00 a.m. on the response to the Francis Scott Key Bridge Collapse on March 26, 2024. Witnesses include Federal Highway Administrator Shailen Bhatt, U.S. Army Corps of Engineers LtGen Scott Spellmon and Maryland DOT Secretary Paul Wiedefeld testify.

Senate Energy Hosts Interior Deputy – On Wednesday at 10:00 a.m., the Senate Energy Committee holds a hearing on the nomination of Shannon Estenoz to be deputy Interior secretary.

USEA to Discuss Invention in Energy – The US Energy Association will hold an energy presser on Wednesday at 11:00 a.m. to look at a whole suite of new technologies is headed for the electric space in an Electron Renaissance. Within the next decade, these new technologies will begin to be felt — some with major impact. Critical issues to be examined include battery varieties, fusion, new connectors which look to transform the grid, new ways of using natural gas without traditional carbon-releasing combustion, small modular reactors and power electronics.

BPC Looks at Climate, Trade – On Wednesday afternoon at the US Capitol Visitors Center, the Bipartisan Policy Center holds its inaugural Climate and Trade Summit to discuss the future of climate and trade policy in the United States. The Summit will showcase thought leaders on both sides of the aisle. Topics will include the case for merging climate and trade policy, discussions on proposed legislation, potential policy designs, and the politics that can create bipartisanship in this space.

Judge Tatel Chats with WaPo – In a new memoir, retired judge David Tatel writes about his life story, his rise to becoming a judge on the influential D.C. circuit and coming to terms with his blindness. Tatel also was one of the More influential judges on many of the clean air and enviro issues handled by the DC Circuit. On Wednesday at 1:00 p.m., Tatel joins The Post’s Jonathan Capehart to discuss “Vision” and his growing concern about the direction of the Supreme Court.

FERC’s Phillips to Address NERO – The National Energy Resource Organization (NERO) will host FERC Chair Willie Phillips on Thursday at its annual dinner at the Hyatt Regency on Capitol Hill.

IN THE FUTURE

Republican Convention Heads to Milwaukee – The RNC holds the Republican National Convention on Monday July 15^th to Thursday July 18^th in the Baird Center in downtown Milwaukee.

• On Tuesday at 4:00 p.m., the Conservative Climate Foundation, ClearPath, the American Conservative Coalition and CRES Forum hold an energy reception at Mitchell Park Domes.

USEA, NHA Look at Hydro – On Thursday July 18^th, USEA and National Hydropower Assn hold a hybrid briefing on a model for enhancing grid reliability and river restoration during the energy transition. This joint briefing will feature a panel of experts to discuss innovative solutions and collaborative strategies for integrating hydropower into the energy transition while ensuring ecological health and community safety. Industry experts, environmental advocates, and public safety experts will come together to highlight successful models of community engagement and partnership, setting a new standard for sustainable and mutually beneficial outcomes. Speakers include USEA’s Mark Menezes and NHA CEO Malcolm Woolf, among others.

Forum to Look at National Labs Innovations – On Thursday July 25^th, 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.

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 on Tuesday July 23^rd 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.

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.