Energy Update: Week of June 3rd

Friends,

It is great to be back in DC after 10 days on the road.  On Saturday, I was honored/thrilled to deliver the commencement address at my high school (Center Line, MI) almost 40 years after graduating. It was a beautiful day and the feedback on my remarks was positive.  You can see the speech here (I start at 44 minutes into the livestream).  Also, the Detroit Grand Prix Indy car race was live this past weekend and so cool… and speaking of cars and Detroit, our friend Joe White, long-time Reuters auto guru has formally retired (but I expect we’ll still hear from him). Congrats Joe!!!! Nick Carey picks up the AutoFile newsletter.

Big news here at Bracewell’s PRG, too.  We are welcoming highly-respected attorney and government affairs professional in the energy and environmental sectors, Andrew Shaw to our team. Known for his extensive expertise and deep connections, Shaw is an expert on environmental issues, climate policy, renewable energy, nuclear energy, grid modernization and electricity regulation. 

Despite the big Trump verdict late last week, Congress returns from its Memorial Day work period in full force this week.  Expect some budget/funding votes. While politicking is likely to corner the rest of the action on each Chamber’s agenda, in hearing rooms there is so much action that I can’t even list them all here. A few key highlights: 1) Senate Energy votes tomorrow on President Biden's three nominees for FERC; 2) House Energy’s Grid subpanel holds a hearing tomorrow on rising electricity needs to serve artificial intelligence; 3) EPA head Michael Regan heads to House Oversight on Wednesday; 4) Also Wednesday, DOE’s David Turk will go to House Science for a budget hearing; and finally 5) Friday, the International Trade Commission will decide to  whether to pursue another investigation of a solar industry trade case at could have serious implications for U.S. solar growth. The case springs from a trade petition led by Korean conglomerate Hanwha, which seeks antidumping and countervailing duties (AD/CVD) on solar cells and modules from Vietnam, Malaysia, Thailand, and Cambodia.  In reality, it’s a pre-emptive market-grab masquerading as a dumping case. 

Big events off the Hill include the Chamber of Commerce’s Sustainability Summit tomorrow featuring DOE’s Kathleen Hogan, Ocean 2050’s Alexandra Cousteau and Veolia NA Water CEO Karine Rouge.  Then on Wednesday, POLITICO hosts an Energy Summit with White House Climate advisor Ali Zaidi, Sen. Kevin Cramer and Rep. Andrew Garbarino, who recently sent a great letter that urged a new way to address GHGs through Congressional action rather than regulations.  Also Wednesday, SAFE holds a webinar featuring insights from leading China watchers to serve as an informational primer for policymakers and other stakeholders on China's economic competition positioning. Finally, Thursday RFF holds a forum on critical minerals.

Today Is June 3^rd, which means I am two months away from my annual 100-mile Pelotonia Ride for cancer research at Ohio State’s James Cancer Center.  As you may know, this really hits home much harder this year as my younger brother is in the midst of a massive fight against brain cancer after being diagnosed at the end of last year. You have all been so supportive in the past of my effort to raise funds for fighting cancer, but I am doubling my fundraising goal this year to honor/support my brother’s fight, so I hope you can help me reach that goal. Any amount matters, so please head to this Pelotonia link and help.

Stanley Cup Finals set for Saturday with Edmonton and Florida.  NBA finals start Thursday in Boston as they take on the Dallas Mavericks.  Also, French Open finals over the weekend.  Call with any questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932                                                                                                                            

FRANKLY SPOKEN

“After relentlessly pursuing $100-a-barrel oil, the OPEC+ cartel has all but thrown in the towel.”

Bloomberg oil columnist Javier Blas in a column on the deal reached on Sunday where Saudi Arabia and its allies will start increasing oil production from October.

ON THE PODCAST

Women In STEM Highlights Inventor With Tech In Space – The Women in STEM podcast recently featured Dr. Hulya Demiryont, a physicist and innovator with over 35 patents and a career spanning six decades. Born in Istanbul, Turkey, Dr. Demiryont's journey from academia to entrepreneurship includes significant contributions to various industries. The podcast explores her latest achievement, the Metamaterial Oxide Capacitor (MOC), and its potential to revolutionize electronics, healthcare, and defense. Dr. Demiryont shares insights into the inspiration, features, and challenges of the MOC. They also discuss her impactful work at Ford Motor Company and her technology's venture into space with NASA. Tune in to learn about her journey and her advice for aspiring innovators.

FUN OPINIONS

Mexico Next Leader Has Energy Problem – In a column in Foreign Policy magazine, Isidro Morales, the editor in chief of Latin American Policy and a nonresident scholar at the Center for the United States and Mexico, housed at Rice University’s Baker Institute says Mexico cannot expand and modernize its infrastructure under the primacy of two state companies. To achieve her ambitious economic objectives, Sheinbaum must ensure that Mexico has a stable, growing energy supply. That is easier said than done, given López Obrador’s controversial steps to undo reforms that had liberalized the country’s energy sector to attract private investment and meet growing electricity and fuel demands. Although Sheinbaum has defended López Obrador’s energy policy so far, she is more pragmatic and less ideological than he is—and may be open to policy change.

FROG BLOG

Chamber: States Say we Need Permit Reform – In a blog post, the US Chamber’s Chad Whiteman says states agree that permitting reform is necessary to bolster economic growth. While no one state has the perfect formula, it’s clear that advancing infrastructure and attracting businesses go hand in hand. There is bipartisan agreement that we need to modernize our federal permitting process—now we need bipartisan action.

A Better Way that EPA Power Plant Rules – In an expert blog in Real Clear Energy, former EPA official and Bracewell attorney Jeff Holmstead and Energy Innovation Reform Project head Sam Thernstrom say with EPA's newest regulation targeting power plant carbon emissions likely to be overturned by courts or a future administration, it's time for bipartisan legislation to preserve affordable, reliable electricity while substantially decarbonizing the sector by 2050.

FUN FACTS

Methane Emissions Falling While Production Increased: National fossil fuel production rose substantially from 2015 to 2022, but total methane and overall carbon emissions from that activity actually fell, according to a new CATF/Ceres Report.

IN THE NEWS

Energy, Nuclear Expert Joins Bracewell PRG – Andrew Shaw is joining the firm’s Washington, DC office as a partner in Bracewell’s Policy Resolution Group (PRG). Shaw is a highly-respected attorney and government affairs professional in the energy and environmental sectors. Known for his extensive expertise and deep connections with policymakers and other stakeholders, Shaw is an expert on environmental issues, climate policy, renewable energy, nuclear energy, grid modernization and electricity regulation. Shaw joins Bracewell from Dentons, where he was a member of its public policy department in the firm’s Washington, DC office.

Report: Methane Emissions Increasing Faster than Expected – A study of U.S. EPA data finds reported methane emissions from U.S. gas extraction dropped 37% between 2015 and 2022 even as production surged. The Clean Air Task Force and CERES report benchmarks the production-based emissions of the largest oil and gas producers in the United States for 2022 and includes trends for 2015-2022. It finds dramatic variation in producer performance and a downward trend in overall reported sectoral methane emissions. This downward trend can in part be attributed to state and federal regulations that have been enacted to date. Recent action by EPA and Congress, including both the recently finalized methane standards and the forthcoming Waste Emission Charge on excess methane emissions, will help drive sector emissions even lower. 

OPEC+ Pushes Another Production Cut – OPEC+, led by Saudi Arabia and Russia, announced new cuts to oil production last week hoping to prop up falling prices. The group agreed to cut an additional 2.2 million barrels a day of oil production. The oil market shrugged off the effort as oil benchmarks in the U.S. and worldwide fell. Part of the reason for this lack of interest is twofold: 1) the US is producing more than they ever have before, insulating US Consumers from the action.  2) Because of the Ukraine conflict, leading OPEC+ producers Russia and Saudi Arabi have been reliant on China to buy their oil.  But now, China’s economy seems headed for economic trouble and is increasing its EV usage, both of which reduce demand.

New Mexican President May Alter Energy Mix – While border Crossing and Other issues are likely more important, Mexico elected a new President yesterday that will likely have some national, cross border and global impacts on energy.  Claudia Sheinbaum has won a landslide victory to become Mexico's first female president. Her mentor was outgoing leader Andres Manuel Lopez Obrador, whose popularity among the poor helped drive her triumph. Jason Tuvey of Capital Economics wrote:

"One key area of difference with the Amlo (Lopez Obrador) administration is likely to be energy policy. While Dr. Sheinbaum said that she will promote 'energy sovereignty', perhaps a nod to (for now) continuing to provide support for the state oil company Pemex, her environment-friendly credentials shone through as she called for a focus on renewable energy."

Energy Secretary Calls for More Nuclear Power at Vogtle Ceremony – US Energy Secretary Jennifer Granholm on Friday called for more nuclear reactors to be built in the US and worldwide. Speaking in Waynesboro, Georgia, where Georgia Power Co. and three other utilities last month put a second new nuclear reactor into commercial operation, Granholm said the United States needs 98 more reactors with the capacity of units 3 and 4 at Plant Vogtle to produce electricity while reducing climate-changing carbon emissions. Each of the two new reactors can power 500,000 homes and businesses without releasing any carbon.

Climate Nexus to Close – Climate change communications firm Climate Nexus will shut down June 21^st, according to a report from POLITICO’s Zack Colman. The New York-based organization has been a prominent watchdog and critic of the U.S. industry with a foothold in climate policy battles in Washington and beyond.

ON THE SCHEDULE THIS WEEK

UN Mid-Year Conference Stars in Bonn – The annual mid-year UN climate talks in Bonn, Germany, opened today. 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.

ACORE Holds NYC Finance Forum – ACORE Finance Forum will be held on tomorrow and Wednesday in New York City. Senator Bill Cassidy (R-LA) will join the event virtually for a live conversation at the 2024 ACORE Finance Forum. Senator Cassidy is joining the slate of keynote speakers including DOE’s David Crane, former White House National Climate Advisor and former U.S. EPA Administrator Gina McCarthy and National Urban League CEO Marc Morial.

Chamber Sustainability, Circular Economy Summit Set – The US Chamber of Commerce holds annual Sustainability and Circular Economy Summit tomorrow morning which convenes corporate sustainability leaders, government officials, nonprofits, academics, and innovators to underscore the crucial role that businesses play in sustainability and to share best-in-class strategies and effective policies. Speakers 9include Oceans 2050 Alexandra Cousteau, Veolia North America's Municipal Water Services CEO Karine Rouge, DOE’s Kathleen Hogan, Chemours Global Sustainability Director Jenny Lin and many others. 

House Energy Panel Looks at Demand, AI – The House Energy and Commerce’s Energy, Climate and Grid Security Subcommittee holds a hearing tomorrow at 10:00 a.m. examining power demands from America's energy and technology future.

Senate Energy to Vote on FERC Noms – The Senate Energy and Natural Resources Committee holds a business meeting tomorrow at 10:00 a.m. to consider the nominations of David Rosner, Lindsay See and Judy Chang to be a members of FERC.

House Resources Panel Looks at Forest Service Budget – The House Natural Resources subcommittee holds a hearing on the Forest Service budget tomorrow at 10:15 a.m. Forest Service testifies.

House Resources Tackles Critical Minerals – The House Natural Resources Energy and Mineral Resources Subcommittee holds a hearing tomorrow at 10:30 a.m. on critical minerals legislation.  See legislation to be considered HERE.

EPA’s Regan Heads to House Oversight – The House Oversight and Accountability Committee holds a hearing on oversight of EPA. Administrator Regan will testify.

House Science to Hear from DOE – The House Science Committee holds a hearing on Wednesday at 10:00 a.m. for an overview of the budget proposal for DOE for FY2025. DOE David Turk will testify

Senate Budget Looks at Climate, Insurance – The Senate Budget Committee holds a hearing on Wednesday at 10:00 a.m. on climate and challenging insurance markets. The Committee’s 20^th hearing connecting climate change to global economic calamity will focus on the warming planet’s effects on insurance markets.

Senate Environment Hosts Highway Official on Budget – The Senate Environment Committee holds a hearing on Wednesday at 10:00 a.m. looking at the Federal Highway Administration budget. Shailen Bhatt, head of the Federal Highway Administration, testifies.

Heavyweights Highlight USEA Electricity Panel – The US Energy Assn hosts another virtual press briefing on Wednesday at 11:00 a.m. to discuss electricity supply challenges and diversity of generation.  Experts include NERC head Jim Robb, EPRI’s Daniel Brooks, former Energy Secretary and EEI head Dan Brouillette, EPSA CEO Todd Snitchler, and co-op leaders David Schleicher of NOVEC and David Naylor of Rayburn Electric Cooperative. Reporter friends asking the questions include Jennifer Hiller of the Wall Street Journal, Ken Silverstein of Forbes, Evan Halper of the Washington Post and several more.

House Science to Look at NOAA Budget – The House Science Committee holds a hearing tomorrow at 11:00 a.m. on the NOAA budget. NOAA Administrator Rick Spinrad testifies.

Washington Energy Summit Set – On Wednesday and Thursday, the US Energy Stream Washington Energy Summit will bring powerful U.S. Senators, U.S. Congressmen, and senior U.S. government officials, together with top energy leaders to provide market intelligence and enable solutions. The Summit explores in-depth the energy strategies, policies and solutions that strengthen energy security for the United States and our allies and promote economic prosperity through sustainable, affordable, and reliable energy access. Gevo is a sponsor and CEO Pat Gruber will speak., Other Speakers include State’s Geoffery Pyatt, Sen. Roger Marshall (R-KA) and more than 20 Congressman from around the country.

SAFE Looks at China Competition – SAFE holds a webinar on Wednesday at 1:00 p.m. featuring insights from leading China watchers to serve as an informational primer for policymakers and other stakeholders on China's hybrid economic mode. Former State Department Official Rick Switzer hosts speakers Liza Tobin of the Special Competitive Studies Project, Center for A New American Security fellow David Feith and former EXIM Bank Senior Vice President of the China Adam Frost. The panel discussion will provide a deeper understanding of the evolution of the Chinese economy from a centrally planned system to one that integrated market-based mechanisms and global trade to clear inefficiencies and benchmark China’s competitiveness.

Axios Forum to Discuss AI – Axios holds a half-day immersive experience on Wednesday afternoon in New York featuring conversations with top cutting-edge innovators, visionaries, and leaders who are shaping the future of AI across New York's leading industries and guiding the technology's complex impact on humanity.

Cramer, Markey, Garbarino Headline POLITICO Energy Summit – On Wednesday at Noon at The Schuyler, POLITICO holds its highly anticipated Energy Summit, where their newsroom team brings together influential voices in climate and energy to delve into the shifting global policy environment in a year of major elections in the U.S. and around the world. POLITICO will examine how governments are writing and rewriting new rules for the energy future and America’s own role as a major exporter. U.S. Secretary of Energy Jennifer Granholm will discuss the nation's top energy initiatives as keynote. with White House Climate advisor Ali Zaidi, Sen. Kevin Cramer, Rep. Andrew Garbarino and Tom Pyle are also on the speaker list.

RFF Forum to Look at Critical Minerals – Resources for the Future (RFF) holds its “Critical Minerals, Critical Stakeholders: Engaging Local Communities in Mineral Resource Collaboration," on Thursday as part of our Exposure 2024 Event Series on environmental justice. This webinar will cover issues such as what effective, meaningful, and equitable engagement looks like; challenges that often emerge in the engagement process; how to deal with competing community interests; the role for compensation agreements and how to best structure these; and opportunities that can arise from community engagement. The webinar will also cover policies that can be enacted to improve collaborative outcomes between communities and mining companies and discuss the role for research in this space. Aaron Malone of the Colorado School of Mines is among the speakers.

Forum Focuses on Energy Disruptions, Resilience – On Thursday at 1:00 p.m., NYU’s Institute for Policy Integrity holds a forum on energy disruptions and resilience research. At this event, several researchers will discuss their ongoing projects on these issues and share initial findings. We will also hear from the Deputy Executive Director for Energy and Climate Policy at the California Public Services Commission about the Commission's efforts to promote reliable and resilient energy in California.

ITC to Vote On Solar Trade Case – On Friday, the U.S. International Trade Commission (ITC) will decide whether to pursue another investigation of a solar industry trade case at could have serious implications for U.S. solar growth. The case springs from a trade petition led by Korean conglomerate Hanwha, which seeks antidumping and countervailing duties (AD/CVD) on solar cells and modules from Vietnam, Malaysia, Thailand, and Cambodia.  In reality, it’s a pre-emptive market-grab masquerading as a dumping case.  But Commerce and ITC are gearing up to investigate—and it could upend the Biden administration’s solar energy ambitions.

IN THE FUTURE

Northeast Gas Forum Set for Boston – LDC Forums holds the 29^th annual Northeast Gas Forum on Monday June 10^th to Wednesday June 12^th in Boston. EQT CEO Toby Rice and NET Power CEO Danny Rice are keynoters.

Forum Looks at NY Building Retrofits – On Tuesday June 11^th 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.

Forum to Look at Natural Climate Solutions – EESI, U.S. Nature4Climate and the Bipartisan Policy Center hold a briefing on Tuesday June 11^th 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 June 12^th 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 June 12^th and Thursday June 13^th, 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.

RMI Holds Forum on Virtual Power Plants – On Thursday June 13^th 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.

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.

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.

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.