Energy Update: Week of May 12th

Friends,

For starters, I am out most of today and tomorrow attending the Widener University graduation of my daughter Olivia (who BTW, just so happened to be born on my first official day at Bracewell back in 2003 – how about that for a first day!!!). A Biomedical Engineering major, she starts a Masters in the same field at Widener this summer. Ceremony tomorrow afternoon.

President Trump heads to the Middle East this week making visits in Riyadh tomorrow, Doha Wednesday to meet with the Emir of Qatar and Thursday in the UAE. I am sure oil/natgas and gasoline markets will be part of the discussion.  Also, we have heard rumors that a White House Nuclear Executive Order may be on the docket soon.

The spotlight really shines on Congress this week as it launches in the budget process. Congress has eight legislative days scheduled until the Memorial Day recess, which is Speaker Mike Johnson’s deadline to push the reconciliation package through the House and he can only lose three votes.

Tomorrow, the House Ways & Means picks up the ball and discusses the clean energy provisions in the afternoon (as of now). The Energy & Commerce and the Agriculture Committees also discuss their budget issues tomorrow as well. Last Friday, five Republicans (who signed letters backing the IRA credits) introduced a bill that would phase out clean electricity credits early and add a foreign entity of concern prohibition on all the credits in the IRA. Those elements seem to be the pattern for how Ways and Means may change the credits.

Things seem to be failing into four categories: 1) Gone (EV Tax Credit, Home Energy Efficiency); 2) Immediate/End of 2025 phase-out (45V as of now); 3) Longer-term phase down (as mentioned above); 4) Unscathed with only minor changes (45Q, 45 Z). Fights remain over dates, in-service/start construction and transferability. One note: this is the first serve in a long effort. It will change.

On the Senate side, we expect to see votes maybe as soon as this week on sub-cabinet officials at EPA, DOE and Interior. Oh yes, and the Gulf of Mexico renaming bill has been placed on the calendar after passing the House last week.

Hearings include numerous funding hearings, including Senate Interior/EPA Approps hosting EPA head Lee Zeldin on Wednesday with him moving over to House I/E Approps Thursday. The Senate Agriculture Committee holds a hearing on perspectives from the field tomorrow. The House Science holds a hearing on Wednesday in its Oversight Subcommittee hearing forecasting NOAA's transparency and trust, and on Thursday Senate Commerce addresses pipeline safety and ensuring the safe and efficient movement of American Energy and FERC holds it monthly open Meeting. Finally, House Resources holds a geothermal field hearing this afternoon at 4:00 p.m. in Utah.

The hydrogen industry has a number of its CEOs/seniors execs coming to town to meet members and Admin officials on 45V, hydrogen hubs and other items. The Fly-In will underscore the industry's commitment to advancing hydrogen and fuel cell technologies as vital components of the nation's domestic manufacturing and energy strategies, energy dominance and power and grid reliability needs. Participants will advocate for continued bipartisan support to accelerate the deployment of hydrogen infrastructure and innovation.

With oil markets jumping lately, IEA will release its latest outlook on Thursday.  As a precursor, you might review last month’s EIA Annual Energy Outlook. And since we’re talking energy markets, tune In Thursday in DC for the US Energy Assn holds its annual Policy forum. Speakers include oil/gas expert and CERA week founder Dan Yergin and EQT’s Toby Rice.

Mark your calendar NEXT MONDAY for the US Chamber/RealClear Energy Future Summit which features FERC Chair Mark Christie, S&P’s Dan Yergin and many more. 

Finally, Saturday is the 150^th Preakness in Baltimore, round two of the Triple Crown.  Derby Runner-up Journalism is the likely favorite with Sandman, American Promise, Clever Again, Goal Oriented, Heart of Honor, Pay Billy and River Thames also expected to be in the race.  We had hoped to see Rodriguez but he was scratched with the same lingering foot injury. Post draw tonight around 6:45 p.m.

Call with Questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932                                                                                                       

FRANKLY SPOKEN

“The race for global leadership in AI is the new Manhattan Project, and winning this race depends on our ability to increase access to abundant supplies of reliable, affordable energy and build secure infrastructure. DOE is focused on the need to meet growing energy demand while strengthening the resilience and security of U.S. energy infrastructure against all threats and hazards. 

“Alex has served as a critical leader across the Department in our first 100 days, and his expertise and ability to take on complex problems make him the right person to spearhead this important office. I am grateful for his ongoing leadership within the Department.”

Energy Secretary Chris Wright on his announcement late last week that its Office of Cybersecurity, Energy Security, and Emergency Response (CESER) will be led by DOE Chief of Staff (and my former GWU student) Alex Fitzsimmons.

ON THE PODCAST

Energy, Environment Update on SiriusXM’s Julie Mason Show – Late Thursday, Julie Mason and I visited on Sirius XM’s P.O.T.U.S. to discuss the latest energy and environmental action in Washington.  Julie and I discussed  EPA budget issues, nuclear power, gas prices, OPEC and many more issues. Check it out HERE.

FUN OPINIONS

Conservatives: Offshore Wind Fits Trump Agenda – In a Big Ideas op-ed in the Daily Caller, CRES head Heather Reams and Turn forward executive Hillary Bright make the conservative case for offshore wind. They argue to truly realize an all-of-the-above energy dominance approach, the Administration should utilize all resources and technologies available, where and when they make sense. As demand for electricity soars, we need every electron we can produce to meet demand and keep energy affordable. As part of Big Ideas, DC provided a counterpoint from Steve Milloy where he argues that wind is hopelessly useless as an energy source

FROG BLOG

Trump Administration Needs to Fully Understand Rural Economic Potential of SAF – In his Ethanol Blog in DTN Progressive Farmer, Todd Neeley write as time passes beyond the first 100 days of the Trump administration, dreams of a rural future with sustainable aviation fuel seem to be waning -- this despite the rural vote carrying President Donald Trump to victory again. He adds, SAF will grow into a commercially viable venture for farmers and communities that are deeply invested in ethanol production, if it has the full support of the Trump administration.

FUN FACTS

Copper Supply Chain Needs to Grow: Despite the fact that thieves are stealing tens of thousands of dollars in copper wiring from Anne Arundel County schools athletic fields, China’s share of global copper refining capacity is surging, posing a threat to US and European supply chains. Global copper demand is expected to grow by over 40% by 2040, but supply isn’t keeping pace. Meeting this demand may require 80 new mines and $250 billion in investment by 2030.

IN THE NEWS

Letter Urges Support for Provisions that Boost National Security – A new letter – reported exclusively in the FT – from national and energy security experts urged House Ways and Means Committee chair Jason Smith to protect five tax breaks (45X, 30D, 48C, 48E and 45Y) covering advanced manufacturing, clean vehicles and electricity production. The group of 23 retired four-star generals and admirals lead by SAFE have asked Congress to reject any push to repeal tax credits for critical minerals, warning it would leave the country vulnerable to China.

“Repealing or weakening these provisions would not only stall the growth of critical industries — it would leave the United States vulnerable to supply chain manipulation by hostile regimes and further delay efforts to rebuild the nation’s defense industrial base,” the letter said.

Cement Industry Trade Assn Has New Name – The Portland Cement Association, the national association representing U.S. cement manufacturers since 1916, announced it is changing its name to the American Cement Association (ACA). President and CEO Mike Ireland shared the news in Birmingham, AL, during the 67th IEEE-IAS/PCA Cement Conference. Nearly 1,200 cement industry professionals from around the world are attending the event this week, which is hailed as the cement and concrete industry’s premier annual conference. Following today’s announcement, the association will begin launching the new brand identity in June. Ireland said:

“The most important reason for the name change is that in recent years, U.S. cement manufacturers have expanded the types of materials they produce beyond portland cement, working to develop more lower-emission cements in an effort to decarbonize the industry and increase domestic cement manufacturing capacity.  The rebranding makes it clear that we are a national association that speaks for cement manufacturers across the country.” 

GLE Hits Uranium Production Milestone – In an important development for the expansion of nuclear power, Global Laser Enrichment (GLE), the global leader in third-generation uranium enrichment technology, announced the successful demonstration of TRL-6 testing at its Test Loop facility in Wilmington, NC. GLE’s testing program is expected to be a pivotal validation of large-scale enrichment performance. GLE CEO Stephen Long:

“The start of our enrichment demonstration program brings us closer to realizing the full commercial potential of the SILEX enrichment process and is a major advancement in the technology’s readiness. Following an extensive preliminary testing period, our team has implemented several engineering and operational modifications in the Test Loop facility to enhance overall performance. We are now focused on iteratively testing and optimizing enrichment, undertaking any further modifications that may be needed, and accumulating data from the enrichment tests to satisfy the requirements for TRL-6 validation.”

All test activities and results of enrichment tests are subject to assessment by an independent engineering contractor, which has been engaged by GLE on behalf of its joint venture owners, Silex and Cameco Corporation.

• GLE’s commercialization efforts are backed by over $550 million in engineering, design, manufacturing, and licensing investments, primarily in North Carolina and Kentucky.
• With over 13,000 hours of operation, the Test Loop facility is the world’s only uranium enrichment facility that is not government-owned or substantially government funded, including those operating enrichment facilities in the U.S.
• GLE expects to generate hundreds of kilograms of enriched uranium during the TRL-6 demonstration period.
• GLE continues to de-risk and advance the technology’s maturation for potential commercial deployment in Paducah, KY through partnerships with utilities, the Department of Energy, and the States of North Carolina and Kentucky.
• GLE has the only third generation enrichment technology previously licensed by the Nuclear Regulatory Commission and is on track to submit the safety report for licensing the PLEF this summer.

IER Report Says EV Backtrack Could Save $300 Billion – A new Institute for Energy Research report  suggests that repealing IRA-specific EV subsidies could save taxpayers $300 billion over the next decade. While the IRA was initially touted as allocating $370 billion in energy-related subsidies, that figure has ballooned. The Cato Institute estimates that IRA energy subsidies will now cost between $936 billion and $1.97 trillion in the coming decade, reaching between $2.04 trillion and $4.67 trillion by 2050. 'A significant amount of this explosion in spending comes from runaway tax credits for electric vehicles, $300 billion alone, which overwhelmingly benefits higher-income households at the expense of working-class Americans,' notes Thomas Pyle, president of the Institute for Energy Research (IER)." 

Former WM CEO, Appointed to Postmaster General – Former Waste Management CEO David Steiner has been nominated to the be President Trump’s Postmaster General. The announcement of Steiner's appointment was made Friday by Amber McReynolds, chairperson of the USPS' Board of Governors, during a meeting of the independent group that oversees the service. "Dave is a highly regarded leader and executive with tremendous vision, experience and skill that can be applied to the long-term mission and business needs of the Postal Service," McReynolds said in a statement. “He is the right person to lead the Postal Service at this time to ensure this magnificent and historic organization thrives into the future. Our Board looks forward to working with Dave as he takes on the core mandates of providing universal and excellent service for the American public and doing so in a financially sustainable manner. SAFE President and CEO Robbie Diamond said Steiner would be an exceptional postmaster general, a position first held by Benjamin Franklin:

“Steiner is a seasoned transportation and logistics executive who has pioneered fleet efficiency and fuel diversity in his many business endeavors. We look forward to collaborating as he modernizes and streamlines the largest federal vehicle fleet.”

In addition to his roles as CEO of Waste Management and board member of FedEx Corporation, Steiner is a longtime member of SAFE’s Energy Security Leadership Council— which Diamond says is a further reflection of his commitment to fuel diversity, energy dominance, and transportation innovation.

ON THE SCHEDULE THIS WEEK

House Resources Looks at Geothermal in Utah – Today at 4:00 p.m., the House Resources Committee’s Subcommittee on Energy and Mineral Resources will hold an oversight hearing in Cedar City, UT on geothermal energy development on Federal land. The hearing will examine the barriers to developing geothermal energy on federal lands. The hearing will also highlight the growth potential of geothermal energy as a result of developing technologies like enhanced geothermal systems (EGS) and how this potential could help us meet rapidly growing domestic energy demand.

Heritage Holds Climate, Endangerment Finding Issues – The Heritage Foundation holds a forum tomorrow at 9:00 a.m. featuring conservative scientists and economists with expertise in climate science and policy as they examine the flawed assumptions, politicized science, and weak statistical foundations that fueled EPA’s Endangerment Finding.

Senate Homeland Looks at Disasters, Insurance – The Senate Homeland Security and Governmental Affairs Disaster Management Subcommittee holds a hearing tomorrow at 2:30 p.m. examining the insurance industry's claims practices following recent natural disasters.

Senate Ag Looks at Agriculture Stakeholders – The Senate Agriculture Committee holds a hearing tomorrow at 3:00 p.m. on agriculture perspectives from the field. Witnesses here.

House Science Looks at Disaster Forecasts – The House Science Investigations and Oversight Subcommittee holds a hearing on Wednesday at 10:00 a.m. on NOAA's transparency, trust and scientific integrity in disasters.

Zeldin Heads to Senate, House Approps – The Senate Appropriations Interior and Environment panel holds a hearing on Wednesday at 10:30 a.m. on the President's FY2026 EPA Budget request. Lee Zeldin will testify. Then on Thursday at 10:00 a.m., Zeldin heads to House Interior/Environment subpanel

Senate Environment Reviews More Nominees – The Senate Environment Committee holds a hearing on Wednesday at 10:30 a.m. on the nominations of Sean McMaster to be administrator of the Federal Highway Administration; John Busterud to be assistant administrator in the Environmental Protection Agency's Office of Solid Waste; and Adam Telle to be assistant secretary of the Army for civil works.

RMI Looks at Hydrogen, Europe – RMI holds a forum tomorrow at 3:00 on recalibrating Europe’s hydrogen strategy to support the clean industrial deal. This webinar unpacks questions like demand, incentives and regulations with findings from RMI’s our report, The Case for Recalibrating Europe’s Hydrogen Strategy, exploring the role of renewable hydrogen in supporting the implementation of the European Clean Industrial Deal.     

Senate Commerce Looks at Pipelines – The Senate Commerce Surface Transportation, Freight, Pipelines, and Safety Subcommittee holds a hearing on Thursday at 10:00 a.m. on Pipeline Safety Reauthorization: and ensuring the safe and efficient movement of American energy. Witnesses include API’s Robin Rorick, Liquid Energy Pipeline Association CEO Andy Black, CenterPoint’s Richard Leger (on behalf of the American Gas Association) and Bill Caram of Pipeline Safety Trust.

FERC Open Meeting – Thursday at 10:00 a.m.

House Resources Continues Look at Forest Management – The House Natural Resources Oversight and Investigations Subcommittee holds a hearing on Thursday at 10:30 a.m. how improved land management can protect communities in the wildland-urban interface.

USEA Holds Public Policy Forum – On Thursday, the US Energy Assn holds its annual Public Policy Forum at the Reagan International Trade Center Rotunda.  In addition to policy panels, , it will honor Vicki Hollub as energy person of the year.

IN THE FUTURE

FERC Chair Christie Headlines Chamber, RealClear Forum – The 2^nd annual Energy Future Forum hosted by the US Chamber’s Global Energy Institute and RealClear will be NEXT Monday May 19^th at the US Chamber. The event will address energy security, affordability, and reliability—key challenges in an evolving landscape.  With elections, rising energy demand, and geopolitical shifts at play, the Energy Future Forum offers candid discussions with energy leaders and experts. The speaker line up is great, including FERC Chair Mark Christie, S&P Oil expert Dan Yergin, NERC’s Jim Robb, Georgia Power’s Kim Greene, Westinghouse’s Dan Lipman, Devon Energy ‘s Clay Gasper and GE Vernova’s Eric Gray. 

Mining Forum Set at CO School of Mines – The Colorado School of Mines, the Payne Institute for Public Policy, and the Southern Ute Indian Tribe will hold the for the 2^nd annual Native American Mining and Energy Sovereignty Symposium (NAMES), May 20-21^st at the Sky Ute Casino Resort in Ignacio, Colorado.

The event will bring together tribal leaders, federal and state government, industry, academia, and finance to discuss and share thoughts on how to support decision making and energy and mining development and finance in Indian country. This approach will be founded on tribal sovereignty as its core principle.

Forum Look at Public Transportation – The Environmental and Energy Study Institute (EESI) holds a  briefing on Tuesday May 20^th at 3:00 p.m. that will highlight federal programs and research that propel public transit forward in the United States. Panelists will discuss how federal transit investments bolster local economies, with every dollar invested in transit generating $5 in economic returns. They will also explore transit’s central role in connecting people to other forms of transportation, from walking and biking to planes and trains.

Hawley Address AI Agenda – Hillsdale College’s Van Andel Graduate School of Government will host a special lecture on the AI Agenda from Sen. Josh Hawley on Wednesday May 21^st at 1:30 p.m. at the Heritage Foundation.

CA Hydrogen Event Set – The California Hydrogen Leadership Summit will be held on June 3^rd and 4^th in Sacramento to explore key policies and programs driving hydrogen’s role in meeting air quality and emissions targets, enhancing energy resilience, and supporting sustainable growth.

Crapo to Address Energy Infrastructure Council – The Energy Infrastructure Council will hold its 2025 Annual Meeting and Legislative Conference in Washington, DC on June 9^th and 10^th. Senate Finance Committee Chairman Mike Crapo (R-ID) has confirmed that he will be our luncheon keynote at the event.