Energy Update: Week of June 17

Friends,

Now that is what I call a great Father’s Day: US Women’s World Cup Soccer, some lacrosse refereeing and then watching golf in prime time. 

This week, the Administration’s new Affordable Clean Energy rule (ACE) rule rolls on tomorrow (we think).  Jeff and Scott are available to discuss.  We are also closely following any and all developments related to small refinery exemptions and the RFS. 

On the hearing front, Senate Energy picks up park maintenance tomorrow, and House Energy tackles pipeline safety legislation with INGAA and AGA testifying on Wednesday morning with House Science looking at fossil energy issues in the afternoon.  Finally, Thursday, House Energy has a major hearing on fuel economy standards with EPA’s Bill Wehrum, NHTSA’s Heidi King and CARB’s Mary Nichols while Senate Energy returns for a hearing on advanced geothermal energy development.

In town, Jeff Holmstead headlines a Federalist Society Forum on regulations tomorrow while CRES hosts a Capitol Hill forum with Rep. Matt Gaetz on Wednesday.  Brookings hosts Rep. Francis Rooney and Sen. Chris Coons on Thursday to discuss carbon pricing and EWG’s Scott Faber and former EPA water chief Tracy Mehan (now with AWWA) discuss PFAS issues at another Capitol Hill Forum on Friday. 

Out of town, REFF-Wall Street is up in New York tomorrow and Wednesday while Massachusetts Gov. Charlie Baker is keynote speaker at Wednesday evening’s Environmental Business Council New England annual awards in Newton, Mass.

Finally, Congrats to our friend Luke Bolar, who is joining ClearPath as managing director-external affairs. He was previously chief of staff to former Sen. David Vitter (R-La.).

Call with questions,

 

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

 

FRANKLY SPOKEN

“Having served in Congress for seven terms, I look at this, it’s a political document … not a policy prescription.  It’ll never receive congressional action.”

Former House Democratic Rep and current American Chemistry Council CEO Cal Dooley, of the, said of the Green New Deal in an interview with John Siciliano of the Washington Examiner.

 

ON THE PODCAST

Harbert Talks NatGas on Columbia Energy Podcast – In last week’s episode of Columbia Energy Exchange, host Bill Loveless is joined by Karen Harbert, the new President and CEO of the American Gas Association. Karen’s joined AGA in April after heading the U.S. Chamber of Commerce’s Global Energy Institute. Before that, she was an Assistant Secretary for Policy and International affairs at the U.S. Department of Energy under President George W. Bush and a Deputy Assistant Administrator for Latin America and the Caribbean at the U.S. Agency for International Development.

 

FUN OPINIONS

Chamber Blog: Approps Process Protects Clean Energy Funding – Christopher Guith, head of the Chamber’s Global Energy Institute said in a new blog on Friday that urges strong support for ARPA-E and other clean energy technology programs.  Guith says the Chamber has long been outspoken supporters of the agency, and in fact were among the first to call on Congress to create it way back in 2007. This support has only grown over the years as ARPA-E continues to demonstrate a record of strong management and successful grants. That’s why we are proud to be part of a large and diverse coalition of 88 entities that are calling on Congress to increase ARPA-E funding in this year’s budget (as well as a similar coalition working to restore funding for other DOE R&D program areas).

IN THE NEWS

Legislation Proposes to Change SREs – Sens. Deb Fischer (R-NE) and Tammy Duckworth (D-IL) introduced legislation that would set a June 1^st annual deadline for small refineries to ask for hardship waivers under the renewable fuel standard.  The deadline provided in the "RFS Integrity Act," S. 1840, would enable EPA to account for the waivers when it sets minimum volumes of ethanol to be blended into the nation's gasoline supply. In turn, the agency could reallocate the waived gallons to other refineries.

Refiners respond to New SRE Legislation – My colleague Scott Segal said the bill seems to establish an arbitrary date for the filing of small refinery exemption petitions.  Small refineries should be allowed to file petitions when they can make a robust case and produce data important for the consideration of federal agencies.  The bill also seems designed to force filing, perhaps in an attempt to disadvantage these important facilities.  We hope the embrace of open process isn’t a backhanded attempt to undermine protections of confidential business information.  If bill supporters really want to advance open government for a costly and controversial program, they can start with lifting the curtain on agricultural price support payments.  These direct payments from the American taxpayer to agribusiness often proceed through a secret web of partnerships, corporations and other entities which shield who gets paid and how much.

SAFE Expert Comments on Tanker Explosions – Following Thursday’s tanker explosions in the Gulf of Oman, Secretary of State Mike Pompeo said U.S. intelligence had "lots of data, lots of evidence" to back up US assertions that Iran was responsible.  Either way, SAFE CEO Robbie Diamond said these latest attacks “remind us of the instability and vulnerability of much of the world's oil supply. The global nature of the oil market means that disruption anywhere affects prices everywhere--and nowhere is this more true than around the Strait of Hormuz, a chokepoint through which 18.5 million barrels of oil pass each day.  America's outsized dependence on oil to power its economy means we are continually exposed to geopolitical risk in the Middle East, from a nation's instability to a terrorist attack. When incidents like these happen, it is U.S. consumers, businesses and the American military that ultimately bear the brunt.”

USS Cole Commander Can Also Comment – One more great resource for you on the topic of tension in the Gulf from an expert with personal experience.  My friend Kirk Lippold – former commander of the USS Cole – is now a security expert who is also available to discuss these issues for you.  You can reach him at kirk@kirklippold.com or 775-684-9197.  Lippold, USN (Ret.) was the Commanding Officer of the USS Cole when it came under a suicide terrorist attack by al Qaeda in the port of Aden, Yemen. Lippold is a top expert that has been featured on every major news network, bringing thoughtful and common sense analysis on national security issues and world events.

Portman, Bennet Introduce Carbon Capture Legislation – Sens. Rob Portman and Michael Bennet reintroduced the Carbon Capture Improvement Act which provides a carbon capture projects eligibility for a low cost financing mechanism available for other types of infrastructure projects. The Carbon Capture Improvement Act would allow businesses to use private activity bonds (PABs) issued by local or state governments to finance a carbon capture project. These bonds are beneficial to consumers and businesses because they are tax-exempt and can be paid back over a longer period of time. If more than 65% of carbon dioxide emissions from a given facility are captured and injected underground, then 100% of the eligible equipment can be financed with PABs. If less than 65% is captured and sequestered, then tax-exempt financing is permitted on a pro-rated basis. PABs have been used for decades to finance pollution control equipment at U.S. power and industrial facilities; capturing carbon dioxide is a logical next step.  The bill text is available HERE.  

 

ON THE SCHEDULE THIS WEEK

House Science to Hold Field Hearing on Hurricane Resilience – The House Science field hearing this morning at the Houston Community College West Loop at 10:00 a.m. CST on improving hurricane resiliency through research.

Senate Energy Looks at Park Maintenance – The Senate Energy Committee holds a hearing tomorrow at 9:30 a.m. on deferred maintenance needs and potential solutions on federal lands administered by the Interior Department and the U.S. Forest Service.  Witnesses include Interior’s Scott Cameron, Lenise Lago of the US Forest Service, Dan Puskar of the Public Lands Alliance, Coconino County, AZ Board of Supervisors Liz Archuleta and Jessica Wahl of the Outdoor Recreation Roundtable.

CSIS to Look at SE Asia Energy, Infrastructure – Tomorrow at 9:30 a.m., the Center for Strategic & International Studies’ Southeast Asia Program releases a new status report on Southeast Asia energy and infrastructure initiatives.  In July 2018, Secretary of State Mike Pompeo announced $113 million for new economic and energy initiatives to flesh out the administration’s Free and Open Indo-Pacific Strategy. These announcements included nearly $50 million for Asia EDGE, an initiative to promote energy security and develop energy markets, and $30 million for an initiative to boost infrastructure investment through financial and technical assistance to partner countries. Nearly one year later, the forum will look at what impact these initiatives have had for U.S. engagement in Southeast Asia.

AEI Forum to Look at Environmental Investing – The American Enterprise Institute hosts a panel of experts tomorrow to address ESG investing and related issues.  The drive for environmental, social, and governance (ESG) investing is an expanded form of a long-standing effort to use private investments to further specific policy or social goals. In some contexts, investors, participants in pension funds, and current and future retirees can direct their investments in ways reflecting their preferences on policy goals and their preferred trade-offs between those goals and a maximization of the value of their assets. In other contexts, it is far more difficult for them to do so, and a significant effort by asset managers to engage in ESG investing can be deeply problematic as a tool to use other people’s money in ways not reflecting their preferences.

Forum to Look at Energy Storage – Tomorrow at Noon in 2044 Rayburn, the Grid Innovation Caucus will hold a forum on large scale energy storage systems and how they can help integrate renewable energy resources and improve the efficiency of the power grid, while maintaining or improving grid reliability and resilience.  The speakers at this briefing are recognized leaders in the field of energy storage research. They will provide details on the current status of energy storage research and more importantly what we as a country need to do to bring these projects from the research bed to full scale realization and deployment.  Rep. Jerry McNerney will speak, followed by a panel that Includes NREL’s Paul Denholm and Brian Miller, as well as Ray Hohenstein of Fluence (a Siemens/AES Company) and Energy Storage Association Policy expert Jason Burwen. 

Holmstead to Headline Panel – The Regulatory Transparency Project will hold a forum tomorrow at 12:00 p.m. on National Press Club for a discussion of the relevance of agency rulemaking featuring Bracewell’s Jeff Holmstead as moderator.  Holmstead’s panel will include Prof. Donald Kochan of Chapman U, Prof. Robert Percival of the University of Maryland and Cato’s Andrew Grossman.

Renewable Finance Conference Set – ACORE holds its annual REFF-Wall Street conference tomorrow and Wednesday at the InterContinental Barclay Hotel in New York City. The event will focus on the evolving policy landscape and important shifts in the approach to electric power sales and distribution.   Our friend Greg Wetstone Leads the long list of finance/tax speakers. 

CRES Forum Looks at Climate – The Citizens for Responsible Energy Solutions holds a forum on Wednesday at 8:30 a.m. in the U.S. Capitol Visitor Center to discuss climate issues. 

Climate change policy is driving news headlines and being seriously debated again on Capitol Hill. Conservatives are reaffirming leadership on clean energy and asserting strong positions on innovative, technology neutral, and market-based approaches to reducing emissions.  The CRES Forum will discuss both the technologies and policies needed to reduce emissions and maintain a comparative advantage in clean energy. The goal of the discussion is to identify state and federal solutions that are market-based, actionable and will empower individuals and businesses to choose clean energy and make informed decisions that result in near-term emissions reductions.

House Energy Panel to Look at Pipeline Safety Proposals – The Energy Subcommittee of the House Committee on Energy & Commerce holds a legislative hearing on Wednesday at 10:30 a.m. in 2322 Rayburn looking at current pipeline safety proposals.   AGA’s Christina Sames, INGAA’s CJ Osman and Assn of Oil Pipelines CEO Andy Black all testify.

POLITICO Experts to Look at Pipeline – POLITICO Pro Canada holds a briefing on Wednesday at 11:00 a.m. to discuss the Trans Mountain Pipeline and Energy Politics in Canada.  The event will be an exclusive live discussion with Pro Canada Editor, Alex Panetta, and reporter Lauren Gardner.   They will discuss this evolving policy debate. The call will also explore a bill that would change the approval process for pipelines and energy infrastructure (Bill C-69). It has passed the Canadian House and is being studied in the Senate.

House Science Looks at Fossil Energy Research – The House Science, Space & Technology Committee's Subcommittee on Energy will convene a hearing Wednesday at 2:00 p.m. on fossil energy research and how it can enable a clean energy future.  Witnesses include Carbon Utilization Research Council head Shannon Angielski, EDF’s Elgie Holstein, Jeff Bobeck of C2ES, Erin Burns of Carbon180 and Sandia Labs’ Erik Webb.

Forum to Look at Energy Jobs – The Congressional Hispanic Leadership Institute holds a forum on Wednesday at 3:00 p.m. in 2045 Rayburn on energy jobs.  Speakers will cover topics that touch on the various ways energy is transitioning today’s workforce and infrastructure. Speakers will also share their points of view on what companies and the government may consider improving the U.S.’s global competitiveness in areas in which energy is affecting (positive/negative) the workforce, infrastructure, climate change, electric vehicles, among others.  Congressional Speakers include Reps. Mario Diaz-Balart (FL), Henry Cuellar (TX), Bill Flores (TX) and Vicente Gonzalez (TX).  The Keynote speakers will be DOE’s James Campos, Director of the Office of Economic Impact & Diversity.

Brookings to Look at Carbon Pricing – On Thursday at 9:00 a.m., the Brookings Institution holds a forum on carbon pricing proposals.  Lawmakers from both parties are increasingly proposing new legislation with a price on carbon at its center. This event will showcase the policy ideas of two such climate thought leaders in Congress, U.S. Sen. Chris Coons (D-Del.) and U.S. Rep. Francis Rooney (R-Fla.), to explore the potential for common ground on the polarized but critical issue of reducing the risk of dangerous climatic disruption. We will discuss such questions as how best to use the revenue from a carbon price, how to protect emissions-intensive trade-exposed industries, and how to build enduring bipartisan support for climate action.

Senate Energy Looks at Geothermal – The Senate Energy Committee will hold a hearing on Thursday at 10:00 a.m. to examine opportunities and challenges for advanced geothermal energy development in the United States.  Witnesses include DOE’s Dan Simmons (head of EERE), Interior’s New Mexico BLM director Tim Spisak, Fervo Energy CEO Tim Latimer, Paul Thomsen of Ormat Technologies and NREL’s Katherine Young.

House Energy Reviews CAFE Rules – The House Energy & Commerce Committee Subcommittees on Consumer Protection and Environment will hold a joint hearing on the Trump Administration’s efforts to revise Corporate Average Fuel Economy (CAFE) standards and carbon pollution regulations from light duty cars and trucks. EPA’s Bill Wehrum, NHTSA Deputy Administrator Heidi King and California Air Resources Board Chair Mary Nichols all will testify.

Resources to Look at Oil, Gas Leasing Issues – The House Natural Resources Committee's Subcommittee on Energy and Mineral Resources will hold a legislative hearing on Thursday at 10:00 a.m. looking at oil and gas development, looking at community input and public participation in leasing decisions.   They will look at HR 3225 (Rep. Levin), which amends the Mineral Leasing Act to make certain adjustments in leasing on Federal lands for oil and gas drilling, and for other purposes. “Restoring Community Input and Public Protections in Oil and Gas Leasing Act of 2019.”

Forum to Look at Renewable Tax Credits, New Research – On Thursday at 11:30 a.m. in 203-02 of the U.S. Capitol Visitor Center, Columbia’s Center on Global Energy Policy examines the renewable electricity production and investment tax credits and offers design principles for future clean electricity tax incentives.  Bloomberg Environment reporter Abby Smith, Dr. Julio Friedmann and Dr. Noah Kaufman discuss new research and the next generation of federal clean electricity tax credits. Topics will include general principles for the design of clean electricity tax incentives, the support needed for key technologies, and the role of clean electricity tax credits in addressing climate risks and other public policy concerns.

API Economist to Look at Global Energy Issues – The National Economists Club holds a luncheon discussion Thursday at Noon with API’s Dean Foreman looking at the global energy situation.

CSIS Forum Looks at Japan, Infrastructure – The Center for Strategic and International Studies holds a discussion on Friday at 9:00 a.m. looking at sustainability through quality infrastructure.  The event will focus on the pathways ahead of the Osaka G20 Summit. CSIS, with generous support from the Ministry of Foreign Affairs of Japan, undertook a comprehensive research study to examine the importance of transparency and sustainability in achieving quality infrastructure, the findings from which have been captured in a short policy brief. Through this public event, CSIS and its panel will share insights that build on the emerging consensus among G20 member states ahead of the Osaka summit. The inputs and recommendations of the policy brief will enable more quality infrastructure.

Energy Economists June Lunch to Look at Workforce – On Friday, the National Capital Area US Assn of Energy Economists holds its June Luncheon on the energy workforce in transition.  Joel Yudken, founder of High Road Strategies, will present with a focus on manufacturing, energy and workforce issues.

Hill Forum to Look at PFAS – Several groups Including the American Water Works Assn and Environmental Working Group will hold a Capitol Hill forum on Friday at Noon in G50 Dirksen looking at per-fluoroalkyl and poly-fluoroalkyl substances (PFAS).   Speakers include former EPA Water Chief, now at AWWA, Tracy Mehan and EWG’s Scott Faber. 

 

IN THE FUTURE

CSIS to Detail Energy Reports – The CSIS Energy & National Security Program launch two reports as part of its Energy in America series next Tuesday, one on The Changing Role of Energy in the U.S. Economy; and Energy as a Source of Economic and Social Mobility.  Over the last decade, the energy landscape in the United States has shifted in some consequential ways.  Going forward, the energy sector changes and energy policy developments are likely to play an important role in the economic and societal well-being of many regions around the country.  The Changing Role of Energy in the U.S. Economy provides insights into the role of energy in the U.S. economy at the national, regional, and local levels; the economic consequences of multiple energy pathways; the distributional impacts of various energy policies; and the anticipated economic consequences of technological change in the energy sector.  Energy as a Source of Economic and Social Mobility examines how energy creates economic and social opportunity through jobs, innovation, and improved living standards.  Increasingly, it is no longer enough to demonstrate energy policy's net economic benefits - policies are often expected to account for preexisting inequities, consider distributive consequences, and create economic opportunity.  This study evaluates policies and strategies designed to harness various kinds of energy development as sources of U.S. economic growth and social mobility.  Panelists will take a closer look at what is working—and what isn't—in U.S. energy policy as the relationship between energy and the U.S. economy evolves, and features Harvard’s Joseph Aldy, Mary Alice McCarthy of New America and David Hart of the George Mason University School of Policy and Government and Nonresident Senior Fellow at Brookings.

Forum to Look at Local Solar Issues – The DC Department of Consumer & Regulatory Affairs holds a forum next Tuesday on a broad array of solar topics. Presentations will range from common rooftop design issues such as storm water, green area ratio, and setback to available community solar programs for citizens in the District. The discussion will also include how all these initiatives impact our local grid.

Forum to Tackle Carbon Capture Details – The Carbon Utilization Research Council (CURC), the Global CCS Institute, and the Carbon Capture Coalition continue their Carbon Lunches - A Carbon Capture 101 Briefings Series next Tuesday at Noon. The briefings will provide an introduction to carbon capture, use, and storage, and how this suite of technologies can deliver steep emissions reductions alongside other clean and renewable sources of energy in the transition to a zero-carbon economy, while supporting clean energy production and creating high-wage energy, industrial, and manufacturing jobs. The first briefing provided an introduction into carbon capture and its role in the energy transition, while this briefing will focus on technology applications.  Congressional Speakers include Reps. David McKinley ((R-WV) and Marc Veasey (D-TX).  Presentations include one on U.S. Efforts on Carbon Capture, Utilization & Storage from DOE’s John Litynski, Impact of Section 45Q Legislation from CURC’s Angielski and the Global Status of Carbon Capture and Storage from Lee Beck of the Global Carbon Capture & Storage Institute. 

Equinor Presents Energy Perspectives – The CSIS Energy & National Security Program holds a forum on Tuesday June 25^th at 2:00 p.m. hosting Eirik Wærness (Equinor) to present Equinor's Energy Perspectives 2019.  The discussion will be moderated by Nikos Tsafos (CSIS).  Energy Perspectives provides a broad perspective on macroeconomics and global energy markets to 2050, analyzing relevant trends, climate policy impacts, energy sources, sectors, and regions across three very different scenarios – Reform, Renewal and Rivalry.   Recent indicators show diverging paths in energy market developments in terms of economic growth, energy demand, energy efficiency, technology development and geopolitics.  Two of the scenarios illustrate where the world may move if current trends continue, while Renewal shows where the world needs to move to limit global warming to well below 2°C.  This year, Renewal is complemented with two sensitivities: (1) the IPCC’s 1.5° report; and (2) the effects of delayed policy action to 2025. 

Forum to Look at Microgrids – The United States Energy Association holds a forum on Wednesday June 26^th at 10:00 a.m. looking at microgrids and their importance to help enhanced grid reliability and resilience.  To accelerate their widespread adoption, the DOE Microgrid R&D Program has undertaken grid integration R&D to further the microgrid value streams that can be realized both within the microgrid service territory and beyond to provide valued services for the interconnected grid.  This presentation will highlight the ongoing DOE microgrid activities for enhanced grid reliability and resilience.  The speaker will be DOE’s Dan Ton.

Central, Eastern European Energy Security Conference Set – On Wednesday, June 26^th at 12:30 p.m., the Atlantic Council holds the 5^th rendition of the CEE conference.  Esteemed panelists and moderators will discuss and debate current Central and Eastern European energy policy, the transatlantic energy security nexus, and the movement towards European energy independence.

CSIS to Release Energy Outlook – The CSIS Energy & National Security Program will hold a forum on Thursday June 27^th at 8:30 a.m. for the U.S. launch of BloombergNEF's New Energy Outlook 2019.  The New Energy Outlook 2019 will be presented by Seb Henbest, New Energy Outlook Lead Author and Head of Europe, Middle East & Africa at BloombergNEF.  New Energy Outlook is BloombergNEF's annual economic forecast for the world's power sector.  Built over nine months, it is the result of international collaboration between 65 market and technical experts from BloombergNEF's 11 offices.

Senate Energy Committee Looks at Nuclear Waste Storage – The Senate Energy Committee will hold a hearing on Thursday, June 27^th at 10:00 a.m. to examine options for the interim and long-term storage of nuclear waste and to consider S. 1234, the Nuclear Waste Administration Act.

Climate Change Forum Look s at What Should We All Do Now – On Thursday, June 27^th at 3:00 p.m., the US Energy Association hosts a forum on climate change action and what we can do about it.  Speakers include ClearPath’s Rich Powell, Fatima Maria Ahmad of the House Select Committee on the Climate Crisis, USEA’s Elliot Roseman, Dr. Karl Hausker of WRI and Brenda Ekwurzel of the Union of Concerned Scientists. 

AAAS Forum Looking Beyond Electricity – On Friday, June 28^th, the American Association for the Advancement of Science holds a day-long conference on low- and zero-carbon technology and policy options exist to decarbonize the electricity sector, but fewer obvious solutions are available for other sectors, which account for about 75% of total U.S. greenhouse gas emissions. This one-day symposium will examine possible technology and policy options as well as challenges in mitigating greenhouse gas emissions in difficult-to-decarbonize sectors such as industry, transportation and agriculture.  Moreover, the symposium aims to break down traditional sectoral silos, presenting a unique forum for participants to interact with experts from multiple disciplines.

July 4^th Congressional Work Period – June 28^th to July 7^th

RFF to Release Global Energy Outlook – On Monday July 1^st at 12:00 Noon, Resources for the Future (RFF) hosts the launch of the 2019 Global Energy Outlook: The Next Generation of Energy, RFF’s annual review of global energy market projections by leading international energy organizations and corporations around the world. The only such report of its kind, RFF’s 2019 Global Energy Outlook harmonizes analyses from other organizations to allow for a clear understanding and easy comparison of potential future energy markets, energy security scenarios, climate trajectories, and policy options at global, regional, and national levels.  The report is accompanied by an interactive web tool, which allows users to visualize, compare, and download harmonized data from each projection.  Register now to attend an in-depth conversation on the 2019 Global Energy Outlook with RFF President Richard G. Newell, RFF Senior Research Associate Daniel Raimi, and Center for Strategic & International Studies (CSIS) Senior Vice President Sarah Ladislaw, moderated by Axios Energy Reporter Ben Geman. Panelists will explore some of the potential outlooks for energy markets, such as coal consumption in China, oil consumption in India, solar power in the United States, and associated carbon dioxide emissions.

Clean Energy Expo Set – The 21^st Annual Congressional Renewable Energy and Energy Efficiency EXPO and Policy Forum is set for Thursday July 11^th 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.

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.