Energy Update: Week of March 16

Friends,

Wow… everything has changed hasn’t it since our last Energy Update a week ago.  Nearly everything we often talk about is cancelled.  Our kids’ college/schools, Spring Training, the NHL, NBA, NASCAR, NCAA March Madness, The Masters all off or delayed indefinitely – and now the last straws: Las Vegas Casinos are closing and the White House Easter Egg Roll has been cancelled.  It is a new day and different world.  And my daughter Hannah (and many of her fellow spring athletes) have lost their Senior Spring Seasons.   While we know it is necessary, it is still sad for those kids who have worked so hard.

With the update, we usually report the events coming up for the week.  Nearly all of them are now off or moved to online (See below for those on-line events).  And while Congress remains in town, they are really not open with nearly all public access, tours, etc. extremely limited or off.  

After the rough opening for the stock market today, it will be another wild ride even after the Fed zeroed-out interest rates and oil prices dropped to around $20/barrel.  The Senate moves this week on the House-passed coronavirus relief bill, The Families First Coronavirus Response Act (HR 6201).  Here is a see section by section summary.  The Bracewell labor/employment team has a great analysis of the provisions impacting employers with fewer than 500 employees. Senate action is expected as soon as tomorrow.  Later today, they will also start to finalize FISA reforms/reauthorization. 

And one energy debate note from last night’s Biden-Sanders CNN debate.  When talking about climate/energy, those who follow the issue closely wondered aloud whether Joe Biden made a big change in his energy platform during an exchange where he said "no new fracking."  Our friends at Axios report his campaign later clarified that Biden was re-stating his existing platform about policy on federal lands, not endorsing Sanders' call for a nationwide ban. Regardless of the walk back, I bet we see that quote again this fall in PA and other places and it certainly won’t be well-received by the Sunrise Movement crowd who crowed favorably about his initial comment last night on Twitter.

One other important item at EPA today, Mandy Gunasekara returns to the agency as new chief of staff to Administrator Andrew Wheeler.  We are happy to discuss so feel free to drop me a note.

There has been so much reporting on Coronavirus, I won’t add to it, but will say that we will keep tabs on things while encouraging your to remain vigilant for yourself and others around you.  Support your neighbors and help those in need when and where you can. 

We will be doing some thinking the impacts of the issue on the energy industry in a number of different ways, so if you have questions on that, feel free to reach out.   Finally, Grist is seeking questions about the impact of coronavirus on the climate. They want to address concerns about what can be learned about the future of climate action, science, health and economic should all be on the table. Send them your questions here. 

That’s all for today, call with questions, stay safe & healthy.

Best, 

Frank Maisano

(202) 828-5864

C. (202) 997-5932

FRANKLY SPOKEN

“Climate change is the most critical environmental threat confronting the world and demands a multifaceted approach.  Reducing emissions and maintaining existing clean energy resources are primary components in the fight to address climate change, and energy companies like Energy Harbor recognize this.”

PA Governor Tom Wolf on the continuation of Beaver Valley Nuclear Power plant.

ON THE PODCAST

Columbia Podcast Talks Oil Challenges – With global oil markets in free fall, the Columbia Energy Exchange’s Jason Bordoff is joined by three experts who study energy markets, geopolitics, and policy to delve into the complex issues impacting the market: Helima Croft, Amy Myers Jaffe and Bob McNally. Croft is a Managing Director at RBC Capital Markets.  Myers Jaffe is at the Council on Foreign Relations. McNally is head of The Rapidan Energy Group and served as the top international and domestic energy adviser on the White House staff.  

FUN OPINIONS

APXC Letter: Industry Is Not Seeking Bailout-- Anne Bradbury, CEO of the American Exploration & Production Council sent a letter late last week to Congressional leadership this week outlining the impact the week has had on our nation’s large and medium-sized independent oil and gas producers, and what can be done to help manage this crisis.  AXPC member companies have been the most severely affected by the oversupply from global markets being flooded with an additional four million barrels of oil a day compounded with the slowing demand for product due to the Coronavirus.  Bradbury called for a diplomatic solution could help ease tensions and help restore balance, economy-wide measure to provide support American workers across multiple sectors impacted by recent events to help stimulate the economy and market-based solutions that will help alleviate the sever supply/demand imbalance currently happening.  The letter also urges DOE SPR adjustments and a Jones Act waiver.

FROG BLOG

DOD Can Help Advance Nuke Reactors – In the latest ClearPath blog, Nuclear Program Director Niko McMurray explains why the recent U.S. Department of Defense (DOD) plan to demonstrate a microreactor is so important for the industry. McMurray says the key to unlocking the exciting potential of advanced nuclear and de-risking development is through demonstrations. There are a number of private sector companies developing advanced reactor designs, but it all comes down to demonstrating the technology since decarbonization without the right set of tools is extremely difficult if not impossible.  The DOD project should be on everyone’s radar and viewed as an important element of the broader U.S. strategy to decarbonize and develop advanced reactor technologies.

IN THE NEWS

US to Refill SRP – President Trump directed the Department of Energy to purchase "large quantities of crude oil" to bulk up the Strategic Petroleum Reserve, in an effort to take advantage of low oil prices and support the battered sector. Trump's announcement, made during a press conference about the coronavirus pandemic on Friday, came after the worst week for crude since 2008. Our friends at Bloomberg say the U.S. expects to start buying up to 77 million barrels of oil within two weeks.  They have a full report here.

Danly Approved for FERC – The Senate voted 52-40 to confirm James Danly as a member of the Federal Energy Regulatory Commission adding a 4th member. Danly will serve on FERC until June 2023, filling the remainder of the term of former FERC Chairman Kevin McIntyre, who died in January 2019.

AWEA Highlights Offshore Wind Potential – A new report from AWEA says offshore wind project development, construction, and operations will support up to 83,000 jobs and $25 billion per year in economic output by 2030.  The AWEA report, U.S. Offshore Wind Power Economic Impact Assessment, provides an overview of the potential jobs and economic impacted that will accompany the growth of the U.S. offshore wind market. As noted in the report, the land-based wind industry grew from supporting 100 domestic manufacturing facilities and 50,000 jobs in 2007 to more than 500 facilities and 114,000 jobs today. Last year, land-based wind power reached more than 100 GW of operating capacity, a four-fold increase from 2008. Offshore wind is set for a similarly rapid expansion, while also creating new opportunities for port revitalization and vessel construction. Project developers and manufacturers have already announced more than $1.3 billion of planned investments in port infrastructure, manufacturing facilities, and supply chain development to support offshore wind.,

PA Nuclear Plant to Continue – The Beaver Valley nuclear power plant in Shippingport, PA was scheduled to shut down next year, but Energy Harbor, the new name for FirstEnergy Solutions, announced Friday that it will keep the plant open after all.  The power station employs 1,000 people and has a total capacity of 1,872 megawatts, enough to power more than 1 million homes. Energy Harbor notified PJM Interconnection, as well as verbally notified NRC of the rescission of the nuclear deactivations.  As required, written notification will be made to the agency within 30 days. In addition, notifications were made to the Institute of Nuclear Power Operations (INPO) and Nuclear Energy Institute (NEI), organizations that support the U.S. nuclear industry.

ON THE SCHEDULE THIS WEEK

NEARLY ALL EVENTS SCHEDULED FOR THIS WEEK HAVE BEEN POSTPONED OR CANCELLED

OTHERS ARE NOW ONLINE WEBINARS

Solar Conference Set for San Diego – POSTPONED TO OCT 2020 – Infocast is holding its Solar + Storage Finance & Investment Summit tomorrow at the Omni LaCosta Resort in San Diego.  The forum focuses on innovative deals, discuss structures and investment challenges, and assess the opportunities that come with implementation and integration. Energy Harbor notified PJM Interconnection (PJM), the regional transmission organization, of its decision, as well as 

Forum to Look at Decarbonizing Power Sector – CANCELLED – CSIS is holding the second session in the Climate Solutions Series, Decarbonizing the Electric Power Sector tomorrow at 10:00 a.m. This public discussion will examine the technological potential for reaching net-zero GHG emissions from power generation, policies to drive power sector decarbonization, the challenge of creating low-carbon electric power sectors in developing countries, examples of private sector contributions to power sector decarbonization, and how businesses can increase supply of—and drive demand for—zero-carbon power.  The event will feature Princeton expert Jesse Jenkins, former DOE official Sue Tierney and Todd Moss (Energy for Growth Hub).

Webinar Looks at Carbon Pricing – The American Public Health Association holds webinar tomorrow at 3:00 p.m. on public health benefits of carbon pollution pricing. Climate X Change lead authors and APHA's Rachel McMonagle will discuss the research on how carbon pricing can effectively reduce greenhouse gas emissions.

CCUS Roadshow Stops in NOLA – POSTPONED TO LATE SUMMER – USEA, DOE Fossil Energy, and the Southern States Energy Board will host the second workshop of the CCUS Roadshow in New Orleans tomorrow.  Energy stakeholders will assemble to discuss: commercial CCUS deployment; using carbon for industrial processes; tax incentives, policy, regulation, federal and state programs; capturing carbon in geologic storage; and, financing projects. Groups will discuss new areas where captured carbon can be used, such as waste plastics destruction, carbon neutral petrochemical feedstocks, transportation fuels and electricity generation.

DOE hosts Hydrogen, Nuclear Webinar – On Wednesday at 8:00 a.m., the Energy Department hosts webinar on the latest status of hydrogen and nuclear technologies.

AWEA Webinar to Look at Resource Assessments – The American Wind Energy Association hosts webinar on Wednesday at 1:00 p.m. looking at approaches to wind resource assessments with limited data. The prevalence of wind resource and energy assessments using less than a year of measured data continues to increase as project timelines continue to compress. This webinar will present a discussion on how the industry views these timeline pressures and different approaches to wind resource assessment with limited data.

Water Utilities Webinar to Look at New WOTUS Rule – The National Association of Clean Water Agencies holds webinar on Wednesday at 2:00 p.m. looking at the recent rulemaking modifying the Clean Water Act definition of “waters of the United States,” the current state of litigation over the WOTUS definition and what the latest WOTUS changes may mean for public utilities.

Constellation Holds Energy Webinar on Corina Impacts – Constellation holds an energy webinar on Wednesday at 2:00 p.m. that will provide updates on factors affecting energy prices, such as weather, gas storage and production, and domestic and global economic conditions.  This event focuses on Coronavirus and the “Black Swan” event that triggered demand destruction for oil and LNG demand worldwide, the oil price war between Russia and Saudi Arabia that is ultimately aimed at the U.S. shale industry and the virus’ impact on economic growth in the U.S. and Asia/Europe for balance of 2020 and Q1 2021.

Forum to Look at Waste, Circular Economy – POSTPONED TO SEPTEMBER 23 – The American Biogas Council (ABC) and EESI hold a briefing on Wednesday at 2:00 p.m. in 2168 Rayburn looking at the critical role biogas systems play in our circular economy. The circular economy replaces conventional “take, make, waste” industrial models with “repurpose, reuse and recycle.” This eliminates waste and pollution and creates new economic activity responsibly with the mantra “there is no waste, only wasted material.” Briefing attendees will hear a variety of stories on how the biogas industry is supporting our circular economy by recycling materials into useful products, plus learn about the economic opportunities and challenges limiting growth of this important industry.  Speakers will Include WM’s Randy Beck, Tom Murray of VGS and Biogas Council head Patrick Serfass.

WRI Looks at Climate Pollution – The World Resources Institute holds webinar on Thursday at 9:00 a.m. looking at options for countries to incorporate targets, policies, and actions on short-lived climate pollutants into their updated Paris Agreement contributions.

NRC Looks at Vogtle – The Nuclear Regulatory Commission holds teleconference on Thursday at 9:00 a.m. to discuss issues associated with the safety review of licensing actions for Vogtle Electric Generating Plant, Units 3 and 4.

S&P Exec to Discuss ESG – POSTPONED TBD – The Bipartisan Policy Center will hold a discussion on Thursday at 10:00 a.m. looking at what ESG means and the broader impact these metrics have on corporate decisions. Douglas L. Peterson, chief executive officer of S&P Global, will give keynote remarks before we hear from an expert panel of leading voices in the industry.

Forum Set to Discuss Water – CANCELLED – POLITICO hosts a forum in Denver on Thursday that will feature a conversation on the policies and legislation needed at the state, regional and federal levels to meet the water needs of Western states and secure long-term solutions. Water is becoming increasingly scarce in the United States, particularly in the West. In the Colorado River basin demand already outstrips supply, and climate change could worsen the situation. In recent years the seven basin states have taken a collaborative approach to solving the region's water problems, but there's still a long way to go.

Energy Institute Holds Virtual Conference – The University of California, Berkeley’s Haas Energy Institute holds virtual conference on Friday focused on energy research and policy. The event brings together outstanding scholars and practitioners from around the world to exchange ideas and research results on topics related to energy markets and regulation.

Forum Looks at Upstream Oil Politics in So America – SWITCHED TO WEBINAR – On Friday at 12:00 p.m., the Inter-American Dialogue hosts a Petroleum & Politics Lunch for a discussion focused on how political developments will affect the upstream oil and gas picture in South America’s smaller and emerging producers.  Political developments have changed the outlook in many of South America’s smaller and emerging oil and gas producers.

Experts Look at Coronavirus Impacts on Industry – The Solar Energy Industries Association holds webinar on Friday at 1:00 p.m. on the coronavirus impacts on the industry. SEIA’s congressional affairs and supply chain experts and a leading solar tax attorney will discuss the anticipated impact of the Coronavirus on the American solar industry, what SEIA is hearing from the federal government, and navigating these complex developments.

Forum to Look at Hawaii Resilience – LIVECAST ONLY – The Environmental and Energy Study Institute (EESI) holds a briefing on Friday at 1:30 p.m. in 385 Russell looking at innovative efforts to finance and implement climate change mitigation and resilience projects. Featuring a panel from Hawaii, the briefing will explore steps the state is taking to reach carbon neutrality and run on 100 percent renewable energy by 2045. Hawaii’s top climate change official will discuss state-wide efforts to lead on climate, and the Executive Director of one of the most robust green banks in the country will speak about its unique features and how it supports companies, communities, and individuals as they work towards Hawaii’s climate goals in an equitable way.   

IN THE FUTURE

Wall Street Green Event Set – The 19th annual Wall Street Green Summit will be held at the Princeton Club in NYC on Monday March 23rd is the longest running and most comprehensive sustainable finance event in the industry. It will be held on Monday March 23, 2020 in New York. Launched in 2002 by Peter Fusaro, the Wall Street Green Summit covers cutting edge content, industry developments and features the leading practitioners in sustainability. 

EnergyX Forum Rescheduled – The U.S. Department of Energy and the National Energy Technology InnovationXLab; CarbonX Summit in Pittsburgh scheduled for March 23 - 24 will be postponed until July.

EPA Deadline to File RFS Appeal – On March 24th, EPA will hit the delayed deadline to file an appeal to the 10th circuit’s ruling in RFS case. 

Senate Enviro to Hold HFC Legislative Hearing – The Senate Environment Committee will hold a legislative hearing on HFC phasedown legislation, S. 2754, American Innovation and Manufacturing Act of 2019” at 10:00 a.m. on Wednesday, March 25th.  The hearing is for members to receive testimony from stakeholders who would be affected by the American Innovation and Manufacturing Act of 2019. 

Energy Sect to Address Innovation Forum – POSTPONED TBD – The American Energy Innovation Council will be hosting a briefing on Capitol Hill on Thursday March 26th with U.S. Department of Energy Secretary Dan Brouillette to discuss recommendations for accelerating clean energy innovation.

Senate EPW to Host Wheeler – The Senate Environment Committee is expected to host EPA head Andrew Wheeler on March 31st.  

Planet Forward Summit Set – GW’s SMPA holds Its 2020 Planet Forward Summit on April 2-3rd at the Jack Morton Auditorium, where students and academics, as well as corporate leaders, scientists, journalists focus on how the best environmental change agents use storytelling to transform their audiences from passive listeners to engaged doers.

Storage Forum, Expo Set – The U.S. Energy Storage Association (ESA) will host its Annual Conference & Expo, held this year in Pittsburgh, Pennsylvania on April 8th to 10th.  The forum will look closely at energy storage to facilitate higher renewable energy, electric transportation, cost savings, or community resilience reasons. 

Offshore Wind Conference Set – The Business Network for Offshore Wind, the leading non-profit advocate for U.S. offshore wind at the state, federal and global levels, will host its 7th annual International Partnership Forum (IPF) on April 21-24th in Providence, Rhode Island. The annual IPF conference is the premier event for the offshore wind supply chain, which is now projected to be a $70 billion revenue opportunity through 2030. 

USEA Holds Annual Meeting, Forum – The US Energy Assn holds its annual meeting and Public Policy Forum on Tuesday April 28th in the Ronald Reagan Trade Center.  The event brings together USEA members and energy stakeholders, including Administration officials, thought leaders, lawmakers, diplomats and journalists to discuss the latest energy policy developments, share industry updates, and celebrate the achievements of the United States Energy Award and United States Energy Volunteer Award

Energy Forum Set for CO – The Colorado School of Mines, Colorado State University, University of Colorado-Boulder, and National Renewable Energy Lab are hosting the 9th annual 21st Century Energy Transition Symposium at the Embassy Suites in Downtown Denver on April 28th and 29th.  Over 65 speakers (in 20 different sessions) from various expertise and backgrounds covering environmental challenges & solutions through collaboration with industry from multiple sources of energy.  Hear from keynote speakers including Colorado Governor Polis, ARPA-E Director Lane Genatowski, Tri-State CEO Duane Highley and many more.   

CA Conferences Set – The 8th Annual California Energy Summit is being held on May 6th to 8th in the LA Grand Hotel Downtown.  It will feature top regulatory officials, utility and public power leaders, and developers to discuss the state-wide implications of wildfire mitigation measures, incentives that can drive deployment of self-generation and storage to enhance resilience, near-term resource adequacy and long-term SB100 procurement needs of CCAs, public power and IOUs and the expansion of interstate energy trading and transmission buildout needs.  

AEE Holds Eastern Policy Conference – Advanced Energy Economy holds its second annual Eastern Regional policy conference in Annapolis on May 21st.  The event features business leaders and policymakers exploring legislative and regulatory paths to scaling advanced energy markets in electricity and transportation, in states and nationally.  Speakers will include Alison Cassady of the House Select Climate Committee, PJM’s Susan Riley and Michigan PSC Chair Sally Talberg.  

DC Oil/Gas Forum Set – The 6th Washington Oil & Gas Forum 2020 is set for June 10th and 11th at The Cosmos Club in Washington, DC.  The US leads global oil and natural gas production. U.S. shale revolution has reshaped the energy landscape in the United States and globally. The American Energy Revolution has delivered massive economic, environmental and geopolitical benefits. Today, the United States is the world’s top oil and gas producer and a leading energy exporter. The Washington Oil & Gas Forum is the foremost innovative and exclusive force for engaging oil and gas leaders in collaborative activities to shape the American and global oil and gas agendas.  Speakers include FERC Chair Neil Chatterjee, Sen Cruz, Reps. Randy Weber, Mike McCaul and Bruce Westerman.