Energy Update: Week of June 10th

Friends,

I was struck over the weekend about the retirement of Pat Sajak from Wheel of Fortune after 43 years as host. As you may know, as a Hillsdale College alum, we have unique ties to Pat (he serves as Chair of its Board of Trustees). I have a second tie too, as my daughter Hannah and Pat’s daughter Maggie went to school together. I talked about it a little on Friday with Julie Mason on her Sirius P.O.T.U.S show before we got into the regular energy issue set on our agenda. Check it out HERE.

Another great Triple Crown Race at the Belmont Stakes (this time run at a shorter distance at Saratoga due to construction in Elmont) with Dornoch holding off the hard charge of my favorite MindFrame and Sierra Leone to win in another thriller. Kudos to former Washington National Jayson Werth who is part owner and now a World Series Champion and Triple Crown Winner.

This week, the Senate is posed to approve the three new FERC nominees to re-establish a full slate of commissioners. Majority Leader Schumer filed for cloture on Friday which will get a vote probably Tuesday. Final votes expected later in the week, with the real challenge to the timing being the Congressional Baseball game, which is Wednesday at Nats Park.

Last week, a couple of hearing with DOE and EPA were rescheduled for later dates (DOE’s Turk at House Science in late June and EPA’s Regan at House Oversight on July 10). The big hearing this week will be the House Judiciary Subpanel hearing Wednesday on ESG investing, featuring some of the key players in recent fights between Exxon Mobil and activist investors. A Senate HELP panel tackles the complex task of trying to boost a sagging mining and minerals workforce also on Wednesday and Thursday, House Energy addresses securing critical mineral supply chains and Senate Energy holds oversight of the Bureau of Land Management (I would expect some fireworks).

Today is a big day offshore wind in New York. Equinor broke ground on construction at the South Brooklyn Marine Terminal, kicking off the revitalization of the venerable port facility into a hub for offshore wind on the East Coast and a critical contributor to New York’s renewable energy ambitions. The groundbreaking ceremony features remarks from New York City Mayor Eric Adams and others. See the video HERE

Other events include AGA’s Executive Leadership program starting today, CSIS hosts EEI head Dan Brouillette tomorrow on challenges with the power grid, Atlantic Council hosts Equinor’s annual Energy Perspectives publication on Wednesday tackling pathways to Net-Zero and AEI holds a discussion on Thursday on developing a next-generation, efficient and resilient US power grid with keynoter Building Trades head Sean McGarvey.

Hope to see you on Wednesday at the Congressional Baseball game!!! Call with any questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932                                                                                                                            

FRANKLY SPOKEN   

“If America is going to continue its manufacturing and energy leadership, we must significantly increase our domestic supply of the necessary critical materials. Our current regulatory landscape runs counter to the reasonable predictability necessary for permitting the mining, processing, and refining of these materials domestically.”

House Energy and Commerce Chair Cathy McMorris Rodgers (R-Wash.) and Rep. Buddy Carter (R-Ga.), who leads the Environment, Manufacturing and Critical Materials Subcommittee, in a joint statement on this week’s hearing on critical mineral supply chains.

ON THE PODCAST

Former FERC Chair Discusses Power Markets, Grid Reliability – In this episode of EPSA’s Energy Solutions podcast, former FERC chairman (and recipient of EPSA's first-ever Competitive Power Champion award) Joseph Kelliher joins EPSA President and CEO Todd Snitchler to share his insights on some of the significant initiatives he undertook as FERC Chair – including establishing the Office of Enforcement and Office of Electric Reliability – as well as his expert views on power markets and other top energy issues today. 

FUN OPINIONS

Critical Mineral Trade Wars On the Horizon – In an opinion piece in Heatmap, Morgan Bazilian and Greg Wischer, experts at the Payne Institute for Public Policy at the Colorado School of Mines, write China and the United States have fired their opening salvos in a critical minerals trade war. In all likelihood, this critical mineral trade war will intensify, with corresponding implications for U.S. industries that use these raw materials. The downstream consequence for energy transition technologies such as electric vehicle batteries, however, is almost certainly higher prices.

FROG BLOG

Chamber: States Say we Need Permit Reform – In a blog post in Real Clear Energy, Energy Workforce & Technology Council President Tim Tarpley writes there are consequences of delaying offshore oil/gas lease sales. It is time for the Administration to prioritize American energy dominance and security. Expediting offshore lease sales, streamlining permitting processes, and promoting technological innovations will unlock our nation's vast energy potential, strengthen our economy, and support allied nations. The future of American energy leadership depends on bold action today.

The Era of Big Nuclear is Back – Former NY Times reporter Andy Revkin has a great Substack blog post featuring a piece by Angelina Oung on nuclear after last week’s ceremonies at Plant Vogtle in Georgia where Energy Secretary Ganholm and state/local/industry leaders celebrated the first two nuclear reactors in years.

FUN FACTS

U.S. manufacturing boom: Natural gas used by U.S. industry in 2023 reached 10,890 trillion BTU, the largest annual total on record. Natural gas accounts for 42% of total industrial end-use consumption, making it the largest source of energy for U.S. industry.

IN THE NEWS

Trade Commission Votes to Proceed With Solar Tariff Probe – The U.S. International Trade Commission (ITC) voted on Friday to proceed with an investigation into whether solar panels from Southeast Asia are stifling domestic manufacturing, a step that could result in tariffs on the majority of panel imports.

The four-member panel voted unanimously to pursue the probe into imports from Malaysia, Thailand, Cambodia and Vietnam. The ITC's role in the case is to determine if the domestic industry is being harmed by imports. The U.S. Commerce Department would decide the level of duties that could be imposed. Thomas Koerner, President, Canadian Solar USA Manufacturing said Canadian Solar is disappointed that Hanwha and First Solar are attempting to use U.S. trade law to limit competition in the growing U.S. solar manufacturing industry.

“This trade case is not about preventing harm to the U.S. industry, but instead allowing Hanwha and First Solar a leg-up over other major U.S. solar manufacturers. Canadian Solar is investing billions of dollars to ramp up two new top-of-the-line and extremely competitive U.S. manufacturing facilities, one of which is already producing solar modules in Mesquite, Texas and the other which will produce solar cells in Jeffersonville, Indiana. Together these facilities create more than 2500 American manufacturing jobs.”

NHTSA Fuel Economy Rule Released – The National Highway Traffic Safety Administration’s (NHTSA) finalized tighter fuel economy rules for Corporate Average Fuel Economy (CAFE) standards for model year 2027-2032 passenger cars and light-duty trucks.  But in a political sop to unions, the rules are not as stringent as it first proposed. API’s Will Hupman said:

“We are deeply concerned by NHTSA’s final rule released today. Once again, the Biden administration has acted to restrict Americans’ freedom to decide what vehicle fits their needs and budget. Combined with EPA’s recently finalized tailpipe emissions standards, these rules amount to a de facto ban by the administration on the sale of new cars and trucks using liquid fuels, which can and should be a part of the solution as we look to reduce carbon emissions. We urge Congress to step in to preserve Americans’ access to affordable, reliable, and efficient transportation.”

API supports technology-neutral policies at the federal level that drive greenhouse gas (GHG) emissions reductions in the transportation sector, taking a holistic “all-of-the-above” approach to fuels, vehicles, and infrastructure systems. Unfortunately, the final NHTSA CAFE Rule misses the mark.

Report: Solar Panel Manufacturing Increases 71% -- A record-setting 11 gigawatts (GW) of new solar module manufacturing capacity came online in the United States during Q1 2024, the largest quarter of solar manufacturing growth in American history. According to the U.S. Solar Market Insight Q2 2024 report released today by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, total U.S. solar module manufacturing capacity now exceeds 26 GW annually. In addition, the industry also installed an impressive 11.8 GW of new solar capacity, bringing total capacity to 200 GW in the United States. The report also contains new data from 2023, showing that the United States added over 40 GW of new solar capacity last year. Wood Mackenzie now projects that the U.S. solar industry will install another 40 GW in 2024.

Equinor Solidifies New York Offtake Contract for Empire Wind 1 – Last week, Equinor executed a Purchase and Sale Agreement (PSA) with the New York State Energy Research and Development Authority (NYSERDA) for the renewable power generated by the Empire Wind 1 offshore wind project. This agreement follows NYSERDA’s February announcement that Equinor had been selected as a conditional winner in New York’s fourth offshore wind solicitation. Onshore construction activity is under way at the South Brooklyn Marine Terminal. Empire Wind 1 will be America’s first offshore wind project to plug directly into the New York City grid with a target to deliver first power in late 2026. At a strike price of $155.00 per MW/h Empire Wind 1 is expected to deliver forward looking real base project returns within the guided range for renewable projects. Following a final investment decision, Equinor plans to use project financing, with financial close anticipated by end of 2024. Equinor intends to bring in a partner to reduce financial exposure. The signing of the offtake agreement further solidifies the considerable progress made by the 810 MW Empire Wind 1 project toward powering 500,000 New York homes with reliable, renewable energy. Empire Wind 1 will generate more than 1,000 union jobs during the construction phase, help build out a domestic supply chain, and provide an economic boost to communities while advancing the offshore wind industry in New York and on the East Coast.

GAO: High compliance with 2020 pipeline methane leak law – A new GAO report has found high adherence to a 2020 law requiring pipeline operators to revamp methane leak detection and repair plans, though New Mexico, Texas, Colorado, Utah, California and Arizona have not yet finished reviewing operators' methane control plans. In feedback to GAO, pipeline companies said regulatory uncertainty complicated their efforts to update the plans. The report, based on interviews with pipeline companies, state regulators and the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA), comes more than 3 years after Congress gave the federal regulator power to control methane emissions.

ON THE SCHEDULE THIS WEEK

UN Mid-Year Conference Stars in Bonn – The annual mid-year UN climate talks in Bonn, Germany, continues this week. The Bonn conference will take the measure of agreement — and division — ahead for negotiators at COP29 in Azerbaijan late this year. The meetings mark a significant shift in the mode of work – from the technical to the political – to enable the development of a draft negotiating text for consideration at COP29.

AGA Leadership Program Set – Today through Wednesday, the American Gas Association holds its 2024 Executive Leadership Development Program event.

Forum Looks at SE Asia Water Challenges – The Henry L. Stimson Center holds a virtual discussion, tonight at 9:00 p.m., on "Where's the Water: Mekong Wet Season 2024.” Stimson’s Mekong Dam Monitor team leads a discussion of findings from the 2024 dry season and forecast for how dam operations and weather will impact the river this wet season

Northeast Gas Forum Set for Boston – LDC Forums holds the 29^th annual Northeast Gas Forum today to Wednesday in Boston. EQT CEO Toby Rice and NET Power CEO Danny Rice are keynoters.

Hydrogen Americas Summit Set – The Hydrogen Americas 2024 Summit & Exhibition launches tomorrow and Wednesday in the Ronald Reagan Trade Building in DC. With a speaker line up packed with policy makers and key industry leaders from across the US and Americas, the Hydrogen Americas Summit provides the platform for these questions to be discussed at the highest level and for developers to understand the impact of these policies. Speakers include DOE’s Sunita Satyapal, EPA’s Joe Goffman, FERC’s Alison Clements and Brett Perlman of the Center for Houston’s Future.

Forum Looks at NY Building Retrofits – Tomorrow at 9:00 a.m. in New York City, RMI, Building Energy Exchange, NYSERDA and the Urban Land Institute hold an online or in person event to learn about a proven decarbonization planning approach that integrates technical solutions with pragmatic asset management strategies known as Resource Efficient Decarbonization.

CSIS Discusses Batteries, Friendshoring – Tomorrow at 9:15 a.m., the Center for Strategic and International Studies holds a discussion on a new report, "Friendshoring the Lithium-Ion Battery Supply Chain." Sen. James Lankford (R-OK) will join the CSIS Scholl Chair in International Business for the launch of its report and will offer keynote remarks on the importance of reducing dependence on China for critical minerals, followed by a fireside chat with CSIS's William Reinsch. This discussion will be followed by a panel of experts from industry and government which will dive deeper into the report's findings.

CSIS to Look at Power Demand with EEI Head – The Center for Strategic and International Studies holds a discussion tomorrow at 10:00 a.m. on meeting the demand for increase electric power. CSIS’s Energy Security and Climate Change Program holds a conversation with EEI CEO and former Energy Secretary Dan Brouillette.

Forum Looks at Climate, Middle East – The Carnegie Endowment for International Peace holds a virtual discussion tomorrow at 10:30 a.m. on policy that can mitigate climate vulnerability in the Middle East. Discussions will focus on civil society activism for climate change in Egypt, urban climate vulnerabilities and governance in Jordan, and the over-arching correlation between climate change, socioeconomic and infrastructural vulnerability, and governance systems and capacities in the MENA region.

Forum to Look at Natural Climate Solutions – EESI, U.S. Nature4Climate and the Bipartisan Policy Center hold a briefing tomorrow at 1:00 p.m. in CVC 217 looking at natural climate solutions, which leverage natural processes—like those in forests, grasslands, soils, and wetlands—to reduce carbon emissions, sequester carbon, and bring new income and employment opportunities to rural America. This briefing will explore the federal role in maximizing the benefits of natural climate solutions. The panel will convene experts studying natural climate solutions and practitioners implementing programs supported by federal agencies. These panelists will discuss what is working, what we are still learning, and what the next phase of natural climate solutions policy and implementation looks like to support the long-term productivity and resilience of America’s natural and working lands and the prosperity of rural communities.

POLITICO Hosts Airline Industry Forum – POLITICO holds a conversation on Wednesday at 8:30 a.m. with government leaders and aviation stakeholders about the state of the airline industry, from what passengers want to what airlines need amid the high demand for air traffic, workers, and technology solutions. Certainly, Sustainable Aviation Fuels issues will come up as well.

Forum Looks at CleanTech Agenda – On Wednesday and Thursday, the 2^nd Annual U.S. Clean Energy Transition conference will bring together federal, state and local policymakers, legislators, as well as industry representatives, NGOs and academia, to explore the latest policy and industry efforts in building a competitive America to accelerate the clean energy transition. Participants will explore what needs to be done to best support those communities that rely heavily on carbon-intensive industries, and ways to ensure America’s continued industry strength and energy security. Speakers will include Sen. Peter Welch (D-VT), Reps. Mariannette Miller-Meeks and Jen Kiggans, DOE’s Jigar Shah, Melissa Robinson (and several more), CRES head Heather Reams, EEI’s Brian Wolff, SAFE’s Zoe Oysul and grid expert Rob Gramlich, among many more.

Forum Looks at Mineral Issues in Middle East – The Center for Strategic and International Studies holds a discussion Wednesday at 9:00 a.m., on international minerals diplomacy, focusing on Saudi Arabia. The CSIS Project on Critical Minerals Security hosts the conversation on U.S.-Saudi Arabia minerals diplomacy and Saudi’s Vision 2030 with Bob Wilt, CEO of Ma’aden.

Senate Environment Hosts Fish/Wildlife on Budget – On Wednesday at 10:00 a.m., the Senate Environment Committee holds a hearing on the U.S. Fish and Wildlife Service's Proposed FY2025 Budget.

House Science Looks at CARB Railroad Rule – The House Science Investigations and Oversight Subcommittee holds a hearing on Wednesday at 10:00 a.m. looking at CARB railroad rules and how it will impact the National Rail Network.

House Judiciary Looks at ESG Fights – The House Judiciary Subcommittee on the Administrative State, Regulatory Reform, and Antitrust will hold a hearing Wednesday at 10:30 a.m. on ESG investing, featuring some of the key players in recent fights between Exxon Mobil and activist investors. The hearing will examine whether existing civil and criminal penalties and current antitrust law enforcement efforts are sufficient to deter anticompetitive collusion to promote ESG-related goals in the investment industry. Witnesses will include Arjuna Capital’s Natasha Lamb, CalPERS Dan Bienvenus and Mindy Lubbers of CERES.

Forum Looks at Net Zero – The Atlantic Council holds a discussion on Wednesday at 11:00 a.m. on perspectives and pathways toward Net-Zero in Equinor’s annual Energy Perspectives publication, which provides the economic, geopolitical, and market analysis necessary to make well-informed decisions and strong policy effecting an ever-evolving global energy landscape. Wærness will delve into the more efficient pathways to reach net-zero by 2050, how to address emerging challenges, and our ability to leverage policy and technological progress to propel the energy transition forward. Senate HELP Looks at Critical Minerals Workforce – The Senate Health, Education, Labor and Pensions Employment and Workplace Safety Subcommittee holds a hearing on Wednesday at 2:30 p.m. on building our critical minerals workforce.

AEI Forum Looks at Grid – The American Enterprise Institute for Public Policy Research holds a discussion on Thursday at 9:00 a.m. on developing a next-generation, efficient and resilient US power grid. Keynoter is North America's Building Trades Union president Sean McGarvey. Other speakers include EEI’s Scott Aaronson, NREL’s Jaquelin Cochran and Jeff Weiss, executive chairman of Distributed Sun.

Senate Energy Hosts BLM Budget – The Senate Energy Committee holds a hearing on Thursday at 9:30 a.m. on oversight of the Bureau of Land Management. Given the Contention between Chairman Manchin, Ranking Member Barrasso and BLM staff, I would expect some fireworks.

House Energy Tackles Critical Minerals Supply Chain – The House Energy and Commerce Energy, Climate, and Grid Security Subcommittee holds a hearing on Thursday at 10:30 a.m. on securing America's critical materials supply chains.

Forum Looks at Solar Equity – Advanced Energy United holds a forum on Thursday at Noon on ways regulators can support Solar equity. The discussion will bring together Solar for All selectees, utility regulators, thought leaders, and project developers to discuss opportunities to collaboratively support increased deployment of distributed and community-based solar in LMI and disadvantaged communities.

ACP Looks at Labor, Clean Energy – America’s Clean Power holds a webinar on Thursday at 1:00 p.m. on clean energy and organized labor. The event features a candid conversation on the challenges and opportunities facing the clean power industry and organized labor as part of America’s ongoing energy transition. Labor expert Brad Markell and Jeff Soth of the International Union of Operating Engineers.

Carbon 180 Hosts Author on Carbon Removal – Carbon180 presents a multi-year vision for an ambitious and effective set of policies. Its latest report, “The Procurement Toolbox,” serves as an actionable guide for policymakers interested in designing demand-side policies that create market certainty by setting “fit-for-purpose” standards for just, durable, and verifiable carbon removal. On Thursday at 1:00 p.m., they will be joined by author John Milko for a live discussion and Q&A about the unique role the federal government can play in scaling carbon removal. Come ready with questions — John will answer them in this casual, conversational event. He'll also discuss how procurement can help lay the groundwork for more ambitious federal policies to further accelerate CDR deployment.

RMI Holds Forum on Virtual Power Plants – On Thursday at 2:00 p.m., RMI and the Flex Coalition hold a forum to discuss the intersection of virtual power plants (VPPs) and the IRA’s home energy rebates. Industry stakeholders and policy experts will share how investments in energy-efficient homes and buildings can prepare the industry for flexible energy management — and create more resilient and responsive homes.

IN THE FUTURE

GreenFin Conference Set for NYC – GreenFin 24 is set for New York City on June 17^th, GreenFin is the leading sustainable finance conference for professionals harnessing the power of capital markets to realize a net zero economy. Speakers include EPA’s Satyem Khanna, Tom Steyer, RMI’s Brian O’Hanlon and Paul Bodner of the Bezos Fund.

CA Hydrogen Conference Set – The California Hydrogen Conference is set for June 17^th in Sacramento, CA. The event will feature educational sessions and dynamic keynote presentations that assess the opportunities and challenges of hydrogen, explore its role in promoting California's economic growth, and discuss its impact on reducing carbon emissions in the transportation, energy, and industrial sectors. ARCHES CEO Angelina Galiteva, CEC Chair Siva Gunda, SoCal Gas’ Neil Navin, FCHEA CEO Frank Wolak and several others speak.

EEI 2024 Focused on Power Deman, AI – EEI 2024 is set for Tuesday June 18^th to Thursday June 20^th at the brand-new Fontainebleau Las Vegas. Jensen Huang, Founder and CEO of NVIDIA, will deliver the opening keynote address. FERC Chair Willie Phillips provides the Closing Keynote on Wednesday, while other speakers include HP CEO Antonio Neri and host of utility CEOs.

Forum to Look at Trucking Charging Infrastructure – RMI, the Mission Possible Partnership, and the North American Council for Freight Efficiency hold a webinar on Tuesday June 18^th at 1:00 p.m. providing truck charging solutions in Southern California. The webinar features the latest research from experts at RMI alongside real-world examples of deployment from the North American Council for Freight Efficiency (NACFE), Zeem, and BGIS.

RNG, SAF Forum Set – Infocast’s RNG & SAF Capital Markets Summit is in Houston on June 19^th and 20^th. Financial and industry leaders from across the RNG and SAF value chains will discuss ways to raise and deploy capital for the buildout of projects across North America. Gevo’s Eric Frey is among the speakers.

RFF Forum Looks at Electricity Affordability – Resources for the Future (RFF) holds a forum on Wednesday June 26^th at 2:00 p.m. on improving electricity affordability in the clean energy transition.  The event is the next event in RFF’s Exposure 2024 webinar series on environmental justice. The expert panel will explore the steps regulators, legislators, utilities, and nonprofits can take to address electricity affordability.

ACP Holds Energy Storage Summit – The American Clean Power Association holds its Recharge Energy Storage Summit on June 26^th to 28^th in Portland, OR. The event features cutting-edge sessions, the latest technologies and industry leaders and experts from across the sector.

Hydrogen Tech Expo Set for Houston – The Hydrogen Technology Conference & Expo will be in Houston on June 27^th and 28^th. The event is dedicated to discussing advanced technologies for the hydrogen and fuel cell industry. The event brings together the entire hydrogen value chain to focus on developing solutions and innovations for low-carbon hydrogen production, efficient storage and distribution as well as applications in a variety of stationary and mobile applications.

Nuclear Summit Set – In partnership with the United Coalition for Advanced Nuclear Power, ExchangeMonitor Publications & Forums hold the 2^nd Annual Nuclear Energy Security Summit June 26-27 at the Ronald Reagan Building & International Trade Center in Washington, DC. This event brings together government officials, industry leaders, experts, and stakeholders to discuss critical issues facing the nuclear energy sector, including securing the supply chain, increasing resiliency and achieving sustainability.

RealClearEnergy Hosts Forum – RealClear Dialogues Energy Future Forum will be held on Wednesday June 26^th and will focus on the intersection of technology, money and politics. The Forum is a one-day event featuring one-on-one conversations with the foremost experts across energy and environmental policy, capital markets, alternative energy, automotive, oil & gas, mining, nuclear energy and the grid. Speakers will include EQT’s Toby Rice, former LA Senator Mary Landrieu former Energy Secretary Spence Abraham and former FERC Chair James Danley, among others.

Bloomberg Green Festival Set – The Bloomberg Green Festival will be held in Seattle on July 10^th to 13^th.  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.