Energy Update: Week of June 12th

Friends, 

The Pride parade in DC over the weekend (and my friend Ben Finzel) reminded me that June is Pride Month!! The parade is among the most fun/entertaining events I have ever attended, probably only rivaled by one up in Provincetown, MA. And it was a busy sports weekend with the French Open (Djokovic and Swiatek were winners), Manchester City winning Champions League and at the Belmont, a gray named Arcangelo thundering down the stretch past Preakness winner National Treasure and Tapit Trice while holding off favorite Forte to make history for his trainer. Jena Antonucci became the first female trainer to win a Triple Crown race ever. (I did win a good payout although it would have been better if NT could have held on to fourth.)

It is also a busy week in Washington after last week’s Congressional scheduling mess caused by conservatives’ angst. The energy legislation that was scheduled for last week returns to the Rules Committee today. (Remember that is two gas stove bills blocking CSPC and DOE rules, the REINS Act and Separation of Powers Act focused on a legislative fix for “Chevron Deference”). The other interesting item is the House Republicans’ tax-cut package – rolled out Friday – and is set to be taken up in the Ways and Means Committee this week. There is a lot of discussion of energy tax credits as “pay fors” but our experts suggest that this the first offer is unlikely to make it to the end. My colleague Liam Donovan Is all over it if you need insight. 

On the Hill, hearings include House Energy panel hearings with FERC Commissioners tomorrow and NRC Commissioners on Wednesday, a House Science hearing on fusion and a Wednesday Senate Environment hearing on highways, infrastructure and the IRA. Finally, both the House Foreign Affairs Committee and Senate Foreign Relations Committee have a hearings on China (Senate FR features ambassador to China Nicholas Burns) and a House Resources Task Force looks at Chinese influence.

Around DC, the US Chamber holds a major US-India Business forum today and tomorrow featuring Dep. Energy Secretary David Turk and a discussion with Global Energy Institute CEO Marty Durbin and Occidental CEO Vicki Hollub. And later today and tomorrow, RFF holds a zero emissions vehicle mandates workshop with leading researchers and policymakers in the ZEV space.

Finally in Austin, TX, EEI holds its annual meeting with speakers including Bill Gates, Energy Secretary Jennifer Granholm, White House advisor John Podesta, Elon Musk and two-time Super Bowl Champ and Colorado Head Coach Deion Sanders today to Wednesday.

Finally, today in Montana, a court will begin hearing arguments in a two-week trial on kids challenging the State on climate change. It is the first to get to trial. Stay tuned…

                                                                                                                                              

FRANKLY SPOKEN

“Permitting is something that has to be tackled. There definitely needs to be some expediting.”

Rep. Ro Khanna in comments to New York Times Opinion writer David Wallace-Wells in his recent NYT column urging progressives to rally around a clean energy construction boom.

 

ON THE PODCAST

Copper Challenge for Energy Transition – In this episode of the Canary podcast The Catalyst, host Shayle Kann talks to Cristóbal Undurraga, the CEO of copper mining technology company Ceibo. They talk about the causes of stagnating copper supply and the technologies that could help increase production. They cover topics including:

• Energy usage and carbon emissions in copper supply chains.
• The limitations of scrap recycling to meet growing demand.
• The geopolitics of copper supply chains, including China’s major role in smelting.
• The pros and cons of two widely used copper extraction methods: concentration and electrolysis.
• The two major types of ore — copper oxides and copper sulfides — and why one is so much harder to mine.
• The long lead times and other challenges that stand in the way of building new mines.
• Ceibo’s approach to increasing mine capacity using novel electrolysis technology for copper sulfides.

 

FUN OPINIONS

Keefe: Hurricane Season Reminds Its Important to Move on Clean Energy – In an op-ed on FoxNews.com, our friend Bob Keefe, head of E2, writes that hurricane season is a reminder that climate and clean energy deserve Republican support. Republican governors, mayors and business leaders who are outside of D.C.’s political bubble are embracing clean energy investments and jobs, celebrating the fact that these investments are turning the tide and bringing manufacturing jobs back to America. We need to keep moving the country forward together, not just bicker and play political games until the next costly disaster strikes.

 

FROG BLOG

Deep Sea Minerals Offer Critical Mineral Solution – In a column in Barrons.com, senior writer Al Root says now that EV demand is growing, people are thinking about tapping the oceans for metals used to power battery-powered cars. The nodules, formed a little like pearls in an oyster over millions of years, contain no toxic materials. Processing them leaves far less waste than land-based mining, mainly because the metal content is higher. TMC will essentially vacuum up the nodules into a stationary ship that holds about 30,000 metric tons of product. About once a week, a bulk carrier will take nodules to land for processing.

 

FUN FACTS

EV Tax Credit:

 

IN THE NEWS

Energy Department Approves $850M conditional loan to KORE Power facility – KORE Power has received a conditional commitment from the U.S. Department of Energy’s Loan Programs Office (LPO) for a loan in the principal amount of $850 million under the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program. The loan will be used to fund the construction of KORE’s advanced battery cell manufacturing facility in Buckeye, Arizona. The KOREPlex, a 1,330,000-square-foot facility, will house multiple production lines to manufacture batteries for electric vehicles (EV) and energy storage systems in the United States. The KOREPlex will produce cells using two chemistries: nickel manganese cobalt (NMC) and lithium-ion iron phosphate (LFP). Our friends at Energy Vault, the leading grid energy storage company in the US, is an investor ($15M) on KORE as well as a participant in the offtake from its facility when it comes online in late 2024/early 2025.

DOE to Begin SPR Refill Process – DOE’s Office of Petroleum Reserves announced that contracts have been awarded for the acquisition of 3 million barrels of U.S. produced crude oil for the Strategic Petroleum Reserve (SPR).  These contracts follow the Request for Proposal that was announced on May 15, 2023. Furthering the Biden-Harris Administration’s three-part replenishment plan, DOE also announced a new Notice of Solicitation to purchase approximately 3.1 million additional barrels of crude oil to the Big Hill SPR site this September. Today’s announcement advances the President’s replenishment strategy following his historic release from the SPR to address the significant global supply disruption caused by Putin’s war on Ukraine. Analysis from the Department of the Treasury indicates that SPR releases last year, along with coordinated releases from international partners, reduced gasoline prices by up to roughly 40 cents per gallon compared to what they would have been absent these drawdowns. A total of 10 companies responded to the Request for Proposal submitting 30 proposals. This purchase has been fully subscribed, and the contracts were awarded to five companies. These 3 million barrels are being purchased for an average price of about $73 per barrel, lower than the average of about $95 per barrel that SPR crude was sold for in 2022. DOE also released another Notice of Solicitation to purchase approximately 3 million barrels of sour crude oil for the SPR.

Manchin Blasts EV Guidance – In comments submitted to the Treasury Department this morning, Sen. Joe Manchin (D-W.Va.) blasted the Biden administration’s interpretation of the domestic sourcing requirements for electric vehicle tax credits in the Inflation Reduction Act. Manchin — who has previously vowed to go to court over the 30D guidance — wrote that the proposed rule “deviates from the will of Congress” in at least three respects.

Additional Info on Opposition to Renewables – Last week I mentioned the School’s Sabin Center for Climate Change Law new report that says renewable energy projects have encountered significant opposition in at least 45 states. Our friend Robert Bryce of Forbes says he thinks their estimate may be too conservative. He too has been tracking the issue and says he updates the Renewable Rejection Database regularly. The new totals: Since 2015, there have been 389 rejections or restrictions of wind energy projects and 134 rejections or restrictions of solar projects, bringing the total number of rejections to 523. So far in 2023, there’ve been 23 rejections of wind and 24 rejections of solar.

 

ON THE SCHEDULE THIS WEEK

Gates, Granholm, Musk Headline EEI Meeting – EEI holds its annual 2023 meeting in Austin today and tomorrow.  Keynote speakers for the general sessions include Bill Gates, Founder, Breakthrough Energy, in conversation with EEI Chair Warner Baxter; Energy Secretary Jennifer M. Granholm and Senior Advisor to the President for Clean Energy Innovation and Implementation John Podesta, Elon Musk, two-time Super Bowl Champ and Colorado Head Coach Deion Sanders, ClearPath’s Rich Powell and many more.

US India Forum Features Hochstein, Raimondo, Cornyn, Turk – The U.S.-India Business Council (USIBC) holds its 48^th annual General Meeting and India Ideas Summit today and tomorrow at the U.S. Chamber of Commerce headquarters in Washington DC. The event will focus on how these three organizing principles underpin the U.S.-India economic partnership across sectors. Speakers include Sen. John Cornyn and Mark Warner, Commerce Secretary Gina Raimondo, Dep. Energy Secretary David Turk and Nancy Jackson from State.  Global Energy Institute CEO Marty Durbin also does a panel with Occidental’s Vicki Hollub.

Water Conference Set – The American Water Works Association begins its three-day ACE23 conference today through Wednesday in Toronto, Canada focused on the future of water in 2050.

Citizens Climate Lobby Hits Hill – The Climate Citizens Lobby holds its 2023 Climate Lobbying Reboot starting today and tomorrow in Washington DC.   Featured speakers include former Rep. Francis Rooney and current Rep. Scott Peters.

RFF Holds Zero Emissions Workshop – This afternoon and tomorrow morning, Resources for the Future holds a zero emissions vehicle mandates workshop. The workshop with leading researchers and policymakers in the ZEV space will examine the state of research on zero-emission transportation, identify new researchable questions, and explore the data still needed to answer these questions. Ford’s Chris Smith joins RFF President Richard Newell. There will also be panels on Charging networks, equity issues and electricity markets.

Event Address Climate, National Security – Today at 4:00 p.m., the American Security Project holds a panel discussion at the Omni Shoreham Hotel exploring the complex, compounding challenges of climate security from military infrastructure at home to the shores of our allies abroad.

House Energy Panel Hosts FERC – The House Energy and Commerce’s Energy, Climate, and Grid Security Subcommittee holds a hearing tomorrow at 10:00 a.m. for provide oversight of the Federal Energy Regulatory Commission.  FERC Commissioners testify.

ACORE Hosts Forum on NERC Reliability Assessment – ACORE holds a forum tomorrow at 1:00 p.m. looking at NERC’s Summer Reliability Assessment. Panelists will discuss NERC’s Summer Reliability Assessment and whether various regions of the country are prepared for heat and drought conditions. Panelists will also discuss challenges their regional grids face and how interregional transmission capacity can help. Our friend Rob Gramlich moderates a panel of experts.

House Science Looks at Fusion – The House Science Energy Subcommittee holds a hearing tomorrow at 2:00 p.m. on the potential of fusion energy.

Forum Looks at Climate Security for Indo-Pacific – The Carnegie Endowment for International Peace holds a discussion tomorrow at 2:00 p.m. with ambassadors to the United Nations and the United States from Pacific Island nations on climate security in the Indo-Pacific. The panel discussion will reflect on recent developments in Pacific Island nations with a focus on climate security and its challenges within the Indo-Pacific.

House Energy Panel Hosts NRC – The House Energy and Commerce’s Energy, Climate and Grid Security panel holds a hearing on Wednesday at 10:00 a.m. to provide oversight of the Nuclear Regulatory Commission.  Commissioners will testify.

Senate Environment Looks at Infrastructure Bill, Highways – The Senate Environment Committee holds a hearing on Wednesday ay 10:00 a.m. on implementation of the infrastructure law and IRA with the focus on the Federal Highway Administration.

House Resources Task Force Looks at China Influence – The House Natural Resources Committee Indo-Pacific Task Force holds a hearing on Wednesday at 10:30 a.m. looking at the Compacts of Free Association and how they support US interests and counter China influence.

Forum to Look at Ag, Climate – The R Street Institute holds a virtual discussion on Wednesday at 12:30 p.m. on opportunities for US agriculture to grow the economy and cut emissions. Panelists will explain how their own research has identified opportunities for the United States to strengthen its position as a leader in both global food production and climate policy progress.

DOE’s Crane Highlights Energy Innovation – On Wednesday at 4:00 p.m., the Bipartisan Policy Center holds a conversation on how the private sector is stepping up to the challenge of rapidly commercializing and deploying low emissions technologies. The event will feature a fireside chat with the Department of Energy’s Office of Clean Energy Demonstrations Director David Crane, and panel discussion with Tom Steyer and American Energy Innovation Council Co-Chairs Norm Augustine and Chad Holliday.

Forum Focused on North Korea Energy – The Henry Stimson Center holds a virtual discussion on Wednesday at 7:00 p.m. on North Korea's energy challenges and potential for future cooperation. This panel will review the current state of North Korea’s energy sector, constraints and challenges, implications of the country’s energy insecurity risks, and potential opportunities they may create for future cooperation.

Forum Looks at Russian Ukraine – The Atlantic Council Global Energy Center holds its 8^th annual Central and Eastern European Energy Security Conference on Thursday at 9:30 a.m. The conference is held in cooperation with the Visegrád Group and brings together US and regional policymakers, private sector stakeholders, and academics to explore these issues in depth. Participants will discuss how Central and Eastern Europe can advance energy security by diversifying imports, investing in critical energy infrastructure, accelerating the commercialization of decarbonized technologies, building resilient clean energy supply chains, integrating Ukraine into the regional energy system, and identifying opportunities for transatlantic cooperation on these efforts.

US Trade Rep Headline POLITICO London Forum – POLITICO holds its inaugural Global Tech Day, taking place on Thursday in London. US Trade Rep Katherine Tai will keynote an event that will focus on the latest in global tech and the ramifications of our world's newest innovations on international politics.

Senate Environment Panel Looks at Plastics, Enviro Justice – The Senate Environment’s Chemical Safety, Waste Management, Environmental Justice, and Regulatory Oversight Subcommittee holds a hearing on Thursday at 10:00 a.m. focused on the impacts of plastic production and disposal on environmental justice communities.

Forum Looks at Breakthroughs for Climate Transformation – The World Resources Institute and the Bezos Earth Fund hold a discussion on Thursday at 10:30 a.m. on how to unleash far more finance to tackle the climate crisis and accelerate sustainable development. The event is informed by insights from Systems Change Lab’s new data platform to highlight six shifts to transform finance.

Concrete Groups Holds Sustainability Event on Hill – On Thursday, concrete paving trade groups will hold a forum on meeting the infrastructure challenges in a sustainable way. 

House Field Hearing to Focus on Grid – The House Energy and Commerce Energy, Climate, and Grid Security Subcommittee holds a field hearing on Friday at 10:00 a.m. on enhancing America’s grid security and resilience. Subcommittee Chair Jeff Duncan (R-SC) holds the hearing in Pinehurst, NC in Moore County. In December 2022, two electric substations in Moore County, North Carolina, were assaulted, resulting in widespread power outages that affected 45,000 homes and businesses and lasted around five days.

 

IN THE FUTURE

Juneteenth Holiday – Monday June 19^th

Wilson Holds Climate Book Event – The Wilson Center holds a book forum next Tuesday at 9:30 a.m. with Joanna Lewis on the book, “Cooperating for the Climate.” Georgetown’s Joanna Lewis will discuss her comprehensive analysis of international clean energy partnerships with China, the path forward for China in clean energy development, and its implications for global governance and bilateral relationship with the U.S.

RFF Hosts DOE’s Shah – Resources for the Future (RFF) holds a conversation on Tuesday June 20^th at 3:30 p.m. with RFF President and CEO Richard Newell hosting DOE Loan Office head Jigar Shah to dive deep into the lessons he learned as a clean energy entrepreneur, how that is informing his approach at DOE, and the vision for how public and private finance can work together to underwrite the US energy transition at scale.

CA Hydrogen Summit Set – The California Hydrogen Leadership Summit will be held on Tuesday June 20^th at the Sheraton Grand Sacramento Hotel in Sacramento, CA. The Summit is a collaboration between the California Hydrogen Business Council (CHBC) and Gladstein, Neandross & Associates (GNA), each with substantial experience advocating for hydrogen and organizing clean energy conferences.

Germany Energy/Power Book Event – The American-German Institute holds a book forum on Wednesday June 21^st at 12:00 p.m. to release “Energy and Power ~ Germany in the Age of Oil, Atoms, and Climate Change.” The book is the first comprehensive history of German energy and climate policy after World War II follows the Federal Republic as it passed through five energy transitions, the rise of the Green movement in the 1970s and 1980s and ending with the transition to wind and solar power today.

Form Looks at Climate-Smart Conservation – The Environmental and Energy Study Institute (EESI) holds a briefing on Wednesday June 21 at 2:00 p.m. looking at opportunities to cultivate climate-smart conservation programs in this year’s Farm Bill. Panelists will describe conservation opportunities, barriers to access the many Farm Bill conservation-related programs, as well as ways to advance conservation through research, technical assistance, and financial support. Speakers include Reps. Nancy Mace and Sharice Davids.

Forum to Look at Land Use – The Environmental Law Institute holds a forum on Thursday June 22^nd at 12:00 p.m. on the basics of land use and energy law. Experts will explore the history of land and energy use, along with recent trends in approaches to planning energy developments.

Forum Looks at Transmission Planning – The R Street Institute holds a forum on Thursday June 22^nd at 1:00 p.m. on reforming transmission planning and cost management. The event will focus on the reforms that will get transmission planning and cost management back on track. FERC Commissioner Mark Christie will make opening remarks and panelists include Indiana Commissioner Sarah Freeman, KY PSC Chair Kent Chandler and MD PSC Chair Jason Stanek.

Forum Looks at Decarb on Industrials – ClearPath and the Clear Air Task Force are holding a clean energy industrial Summit on July 19^th at the National Press Club.  More on this as it gets closer.