Energy Update: Week of June 26th

Friends, 

Sent this early today because I am actually in Boston getting ready to drive Hannah’s stuff to Philly where she is moving to head to graduate school at Drexel after 7+ years in Boston (she still has to work until June 30 at her Harvard Biotech firm). Exciting for her, not so much for me, especially after last night's U-Haul pick up debacle. (They forgot to put the keys in the lock box and the truck was completely blocked in by afterhours returners. Ugh!!!)

Congress has launched back into its District work period for this week and next surrounding the July 4^th holiday. If you are in DC, I would strongly urge you to head down to the Mall to experience a July 4^th there.  It is quite spectacular.

Obviously, Congress is out but the House Natural Resources Subcommittee on Water, Wildlife and Fisheries holds a field hearing today in Richland, Washington to discuss environmentalists’ effort to undermine navigation, transportation and access to reliable power (the panel's words not mine).

We also will be looking for any late regulatory actions around July 4^th, even as Biden Cabinet officials fan out to sell their economic and climate plans. To that end, Energy Secretary Granholm heads to EPRI this morning at 9:30 p.m.  During the visit, Granholm will hold an on-the-record media availability as she begins her week-long “Invest in America” tour with a visit to EPRI’s Charlotte, NC transmission and distribution laboratory. Rachel Gantz (rgantz@epri.com) if you need more.

For this week, SAFE holds the next installment of its virtual book talk series with David H. McCormick, author of Superpower in Peril: A Battle Plan to Renew America tomorrow, while RFF and EFI hold a forum to release a new paper on using policy to accelerate bioenergy carbon capture and storage deployment. Then Wednesday OurEnergyPolicy holds a forum addressing the future of solar power including the U.S., barriers to advancement and the key economic, regulatory and policy issues with Sen. Catherine Cortez Masto. Finally, the Middle East Institute holds events all week for its Climate Week, launching the gradual run up to COP 28.

No regular update next week as it is July 3^rd, we will be prepping for a giant fireworks extravaganza and I will be using the holiday to hit the roads on the Cervelo with only one month out to my Pelotonia Charity bike race. If you haven’t donated yet, please do as 100% of all your donations go directly to cancer research and major cancer breakthroughs. 

                                                                                                                                              

FRANKLY SPOKEN

“If I have to hop on a bulldozer myself, we’re going to start building roads in the Ring of Fire

Ontario Premier Doug Ford in a Yale 360 article on Canadian efforts to mine its remote northern areas for critical minerals

"We're designing our energy systems today for the past 50 years of weather and not the next 50 years of weather, and that's a problem."

Melissa Lott, research director of Columbia University's Center on Global Energy Policy to Axios on a story about grid challenges.

 

ON THE PODCAST

OSTP Climate Lead Talks Net Zero – In this week’s Columbia Energy Exchange podcast, host Bill Loveless talks with Sally Benson, leader of the Energy Team at the White House Office of Science and Technology Policy (OSTP), about the OSTP’s history as an innovation engine, and its current role in meeting net zero by 2050 goals. Benson is the deputy director for energy and the chief strategist for the energy transition at OSTP. She helps oversee the Net Zero Game Changers Initiative, which funds innovation in clean energy technologies for building heating and cooling, aviation, nuclear fusion, and other areas.

 

FUN OPINIONS

Biden, Leaders Say Climate, Poverty ‘Existential Battles’ – In a rare joint op-ed in Bloomberg, world leaders President Biden, Japan’s Fumio Kishida, Brazil’s Luiz Inácio Lula da Silva, France’s Emmanuel Macron, European Council President Charles Michel, Barbados Prime Minster Mia Mottley, South African President Cyril Ramaphosa, Kenya’s William Ruto, Senegal’s Macky Sall, Germany’s Olaf Scholz, UK PM Rishi Sunak, European Commission head Ursula von der Leyen and UAE President Sheikh Mohammed bin Zayed Al Nahyan write that climate change and poverty are our era’s existential battles and it is time to marshal finance and policy globally to promote economic growth and equality — and to save the planet. We are convinced that poverty reduction and protection of the planet are converging objectives. We must prioritize just and inclusive transitions to ensure that the poor and most vulnerable can fully reap the benefits of this opportunity, rather than disproportionally bearing the cost.

 

FROG BLOG

WSJ: Ford Battery Loan is More Reliance on Gov – In an editorial, The Wall Street Journal writes that Ford’s new job one is “now pleasing the government is job one as the Detroit auto maker shovels up taxpayer subsidies to fuel its government-mandated electric-vehicle transition.” Ford isn’t in financial danger now, but its EV investments are squeezing profits and forcing layoffs. The auto maker last year lost $3 billion on EV sales. In the first three months of this year, its EVs posted a negative 102% operating margin, meaning losses exceeded sales revenue. Buyers of Ford’s profitable and popular gas-powered trucks are subsidizing EVs. But this won’t last as Ford ramps up EV production to meet government mandates. The Biden Administration’s emissions rules require EVs to be 17% of sales in 2026 and two-thirds by 2032. They were about 3% last year. Ford and other car makers aim to make EVs profitable through efficiencies from manufacturing scale. But until that distant day, they want government to subsidize the money-losing cars they’re required to make.

 

IN THE NEWS                    

RVOs Release with No E-RINS – As expected, the EPA released the final 2023 – 2025 biofuel blending obligations under the Renewable Fuel Standard (RFS). The final rule strengthens U.S. energy security by reducing reliance on foreign sources of oil by roughly 130,000 to 140,000 barrels of oil per day over the time frame of the final rule, 2023–2025. The final rule also discusses EPA’s intent to monitor the ongoing implementation of the RFS program and its impacts on domestic refineries, which have a critical role to play in our energy security. The Set Rule establishes the biofuel volume requirements and associated percentage standards for cellulosic biofuel, biomass-based diesel (BBD), advanced biofuel, and total renewable fuel for 2023–2025. It also completes EPA’s response to a court remand of the 2016 annual rule by establishing a supplemental volume requirement of 250 million gallons of renewable fuel for 2023.

API’s VP of Downstream Policy Will Hupman:

“We share EPA’s goal of reducing emissions in the transportation sector and are supportive of efforts to improve RFS program to advance a lower carbon future. While we welcome EPA’s decision to omit the complex regulatory changes from eRINs, we are disappointed the agency did not do more to seize the opportunity to refocus the RFS to further incentivize lower carbon fuels. We look forward to continuing to work with EPA to build on this policy and ensure American consumers have access to the affordable and reliable fuels that they depend on every day while continuing to reduce emissions from transportation.”

Growth Energy CEO Emily Skor:

“EPA’s decision to lower its ambitions for conventional biofuels runs counter to the direction set by Congress and will needlessly slow progress toward this administration’s climate goals. We should be expanding market opportunities for higher blends like E15, not leaving carbon reductions on the table.

“While the final rule offers a modest improvement in advanced volumes, EPA inexplicably failed to extend that recognition to conventional biofuels. The bioethanol industry has more than adequate supply to meet the higher volumes that were originally proposed in December 2022. Choosing not to put that supply to good use in decarbonizing the transportation sector runs counter to this administration’s previously-stated commitments and undermines the goal of reaching net-zero by 2050.”

NatGas Pays the Tax – The Pennsylvania Public Utility Commissions said the commonwealth’s natural gas sector paid out more than a quarter of a billion dollars last year in taxes to state and local governments. The amount is a record that tops the previous high of nearly $252 million in 2018. Revenues from the state’s tax on natural gas development totaled $278 million. They will be used to fund conservation and infrastructure improvements, as well as emergency services for recipient counties. The highest payers to PA include EQT Corp., who bill was more than $42 million, followed by Chesapeake Appalachia and Range Resources.

Refining Capacity Kicking Up – A new Energy Information Administration report says US oil refining capacity has rebounded by over 100,000 barrels per day to 18.1 million bpd as of January 1 after declining for two years due to the coronavirus pandemic. The increase in capacity was driven by expansions undertaken by Marathon Petroleum and Citgo Petroleum and does not take into account ExxonMobil's 250,000-bpd expansion at its Beaumont, Texas refinery, which came online in March.

 

ON THE SCHEDULE THIS WEEK

NASA to Hold Earth Info Opening – Today, NASA hosts an all-day opening for its new exhibit that transforms science into art, view stunning visuals of Earth data from space on a cutting edge 20-ft hyperwall. The event will look at how information about Earth from space improves lives and livelihoods in the face of disasters, environmental challenges and climate change.

Middle East Institute Holds Climate Weeks Events – The Middle East Institute holds virtual discussion each day this week highlighting a number of synergistic themes associated with climate change throughout the week of the event. These daily themes put into focus areas of priority for the Middle East and North Africa (MENA), as the region begins to look ahead towards hosting the upcoming COP28 climate meeting in the UAE, following last year’s COP27 meeting in Egypt. Today, they focus on COP 28, tomorrow Youth activism, Wednesday Security issues, Thursday Energy Transition and Friday climate resilience.

Markey, Whitehouse Headline GreenFin23 – GreenFin23 takes place today through Wednesday in Boston, Mass and will focus on sustainable finance, investing and ESG frameworks. Speakers at the conference will include Democratic Sens. Ed Markey (Mass.) and Sheldon Whitehouse (R.I.)

Forum Looks at Transatlantic Climate, Trade – In a second event, the American-German Institute discusses more Transatlantic cooperation on climate and trade tomorrow at 10:00 a.m. Climate policy is becoming increasingly linked with more traditional areas like trade and security. Yet many of the international rules covering these issues are not fit to manage this new reality. The U.S., the EU, and Germany have launched several initiatives to tackle this situation.

Forum Looks at G-7 Energy, Climate Opportunities – The Atlantic Council Global Energy Center and Climate Advisers holds a forum virtually tomorrow at 10:00 a.m. featuring an expert discussion on opportunities to advance climate solutions in trade and industrial sectors. G7 leaders in their recent Clean Energy Economy Action Plan emphasized the need to align trade policies with climate goals and opportunities for international cooperation to open new doors for more inclusive cooperation with other nations and the private sector on Industrial decarbonization, referring often to the World Trade Organization (WTO).

Forum Looks at Insurance – Brookings Metro will host an event tomorrow at 10:00 a.m. discussing ongoing work to integrate climate-related risks into insurance supervision and regulation. Graham Steele, assistant secretary for financial institutions, will share details from the just-released Treasury Federal Insurance Office’s climate report which considers the climate-related risks faced by the insurance industry and highlights current efforts by the National Association of Insurance Commissioners and some state regulators to address those risks while also providing recommendations to better integrate climate-related considerations within the context of U.S. insurance regulation. A panel will follow to discuss reactions to the report and implications for current efforts at the U.S. state level.

WRI to Discuss Supporting Auto Workers in EV Transition – World Resources Institute holds for a conversation tomorrow at 11:00 a.m. featuring federal policymakers, labor, private sector and environmental leaders to discuss how the U.S. can create equitable and just policies for auto workers as the industry electrifies. DOE’s Betony Jones keynotes

Forum Looks at Bioenergy, Carbon Capture – Resources for the Future and the Energy Futures Initiative hold a forum tomorrow at 2:00 p.m. using policy to accelerate bioenergy carbon capture and storage deployment. Bioenergy with carbon capture and storage is a promising form of CO2 removal that can help us reduce emissions by combining the sustainable utilization of a wide range of biomass materials, making providing clean energy and net-negative carbon emissions possible. The EFI Foundation will present a new report on the case for policymakers to accelerate BECCS deployment and the ways to do so, including maximizing the social, economic, and environmental co-benefits of BECCS and establishing rules of the road for responsible large-scale deployment.

SAFE Hosts Security Author – Tomorrow at 3:30 p.m., SAFE holds the next installment of its virtual book talk series with David H. McCormick, author of Superpower in Peril: A Battle Plan to Renew America. Based on his decades-long experience in business and government, McCormick lays out his vision for American renewal to reverse the decline, educate our people, confront China’s efforts to subvert America’s role as a superpower and secure our country and his battle plan to put America on a different course.

OEP to Talk Solar – OurEnergyPolicy holds a forum on Wednesday at Noon addressing the future of solar power in the U.S., barriers to advancement and the key economic, regulatory and policy issues.  Speakers will include Sen Catherine Cortez Masto, DOE’s Garrett Nilsen, ACP’s David Murray and others.

C2ES Forum Looks at Resilience – The Center for Climate and Energy Solutions (C2ES) and the Vermont Bond Bank on Wednesday at 1:00 p.m. hold a webinar on the emerging landscape of climate risk assessment by investors in the $4 trillion municipal bond market. Speakers will outline the physical climate risk analysis landscape, how local governments can integrate climate risks and opportunities into financial decision-making, and how investors are beginning to evaluate climate risk.

Forum Looks at Grid Markets – WRI and SolSmart hold a webinar on Wednesday at 2:00 p.m. to provide an introduction to how the electricity grid functions and the key stakeholders who oversee it. Presenters will describe how wholesale electricity markets function and highlight the rules and processes that could affect the achievement of local governments’ solar energy goals. It will also include presentations on potential engagement opportunities and related support that local governments can consider if they want to participate in stakeholder processes. Local governments will hear from peers who have already taken steps to engage in these processes through the PJM Cities and Communities Coalition (PJMCCC) and the MISO Cities and Communities Coalition.

WRI Targets Net Zero Strategies – The World Resources Institute holds a forum on Thursday at 9:00 a.m. to release a forthcoming report by World Resources Institute (WRI), titled “Realizing Net-Zero Emissions: Good Practice in Countries,” will draw out examples of countries that are already taking concrete actions today toward achieving their net-zero aims. The event will feature the report’s lead authors to showcase these pioneering countries and share good practices related to governance, sectoral policy, finance and investment, stakeholder engagement and more. Experts will also highlight resources from the Climate Watch and Systems Change Lab data platforms showing global progress towards net zero.

Forum Looks at Critical Minerals – The Washington International Trade Association holds a virtual discussion on Thursday at 10:00 a.m., on critical minerals and their origins. The event will discuss what will be needed to build resiliency in critical mineral supply chains. Featured speakers include State’s Helaina Matza, Embassy of Australia trade minister Andrew Jory, auto trade association policy expert David Schwietert and RMI’s Lachlan Carey.

ACORE Looks at Rural Utilities – ACORE and the US Department of Agriculture holds a virtual discussion on Thursday at 1:00 p.m. looking at new funding opportunities for clean energy. Rural Development’s Rural Utilities Service will provide an overview of the approximately $11 billion in grants and loan opportunities that will help rural energy and utility providers implement affordable, reliable clean energy initiatives for their communities across the country. The programs represent the single largest investment in rural electrification since the Rural Electrification Act went into law in 1936. USDA will provide an overview of the Empowering Rural America (New ERA) program and the Power Affordable Clean Energy (PACE) program.

DOE Forum Tackles Interconnection Costs – DOE’s Berkeley Lab holds a webinar on Thursday at 1:00 p.m. looking at US interconnection costs and trends across five ISO/RTOs.  With the recent publication of interconnection cost analyses for ISO New England (ISO-NE) and the New York Independent System Operator (NYISO), Berkeley Lab is holding a series of briefs analyzing interconnection costs and trends across five U.S. wholesale electricity markets is complete. The series employs extensive data collection and analysis at the individual project level in MISO, PJM, SPP, NYISO, and ISO-NE to provide developers, regulators, policy makers, and other stakeholders with critical insights about interconnection cost data that is often difficult and inefficient for the public to obtain.

 

IN THE FUTURE

ISA Meeting on Deep Sea Minerals to Start – The 28^th Session of the International Seabed Authority (ISA) Assembly and Council (Part II) will take place from July 10-21 and the ISA Assembly will meet from July 24-28 in Kingston, Jamaica.

Hydrovision Set for Charlotte – HYDROVISION International 2023 is set for Charlotte on July 11^th to 13^th. Joseph Kessler, executive vice president and chief operating officer of the New York Power Authority, will speak during the Utility Executive Roundtable. HYDROVISION will also host the 3^rd Annual Global Symposium for Large Hydropower Plant Operators.

Sen. Cramer Headlines CRES Forum on China – On Wednesday July 12^th at 4:00 p.m., Citizens for Responsible Energy Solutions (CRES) holds a forum to explore the environmental impacts of Chinese economic aggression and US Government strategies to countering the CCP. The program will include keynote remarks from Senator Kevin Cramer, as well as two panel discussions that will feature insights from leaders in the research and policymaking community.

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. The summit features Energy Deputy Secretary David Turk, top thought leaders, project developers, innovators, and lawmakers to discuss exciting opportunities to ensure America’s next industrial revolution arrives — leading the world in decarbonization. Other speakers include execs from Holcim, CEMEX, LanzaTech and the American Iron & Steel Institute.