Energy Update: Week of May 20th

Friends,

Another big surprise in the Preakness on Saturday with Seize the Gray running gate to wire on the muddy track in Baltimore. (I did not figure that and I’m 0 for 2). And the PGA made big new in Louisville this weekend by having the world’s #1 golfer – Scott Sheffler – arrested. Despite that, Xander Schauffele outdistanced Bryson DeChambeau to win the year’s second major championship.

There is activity in DC this week despite Congress looking to head for the exits early. House Republicans introduced CRAs on the Administration’s NEPA Reform and Mercury rules as the schedule approaches the CRA deadline. The House is set to vote this week on a bipartisan bill that would provide tax relief for losses due to federally declared disasters, including hurricanes, wildfires and the East Palestine, Ohio, train derailment. FERC holds its monthly meeting and the US Trade Rep holds a supply chain hearing, both on Thursday.

As for Committees, after releasing its farm bill draft on Friday, the House Agriculture Committee plans a markup of Republicans’ farm bill on Thursday. Look for Climate smart ag issues, sustainable aviation fuel, GREET model questions and ethanol to be on the agenda. Tomorrow, the Senate Energy Committee holds a hearing on growth in demand for electric power and Wednesday, while Senate Environment looks at plastic recycling. Also Wednesday, the biennial Water Resources Development Act will be marked up by Senate Environment and a House Energy panel looks at the impacts of green building policies. Finally, House Oversight hosts Secretary Granholm on Thursday for DOE Oversight.

On other events, our friends at Citizens for Responsible Energy Solutions Forum are out with a new white paper laying out policy recommendations for growing the U.S. hydrogen industry. The report recommends a “more flexible, phased-in approach” to the three pillars requirements for the 45V hydrogen production tax credit, as well as amending the Natural Gas Act to give FERC jurisdiction over hydrogen pipelines. It also urges lawmakers to keep funding hydrogen research through DOE grants and loans and for the U.S. to articulate an explicit strategy on hydrogen exports. CRES hosts an event tomorrow rolling it out the Capitol Hill Club

This weekend is Memorial Day (hard to believe), getting the summer season underway. Remember to break out the floral/pastel color pants and shirts. I will be In California and Detroit surrounding the holiday, making a commencement speech for my high school in Michigan on June 1. Send me your best tips for graduates.

Have a great holiday week/weekend and call with any questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932                                                                                                           

FRANKLY SPOKEN

“The President’s got some radical climate advisers over there telling him some really bad stuff.”

West Virginia Sen Joe Manchin when asked about an expected the CRA effort whether it would succeed in the Senate. Manchin conceded that it would still likely face a veto.

ON THE PODCAST

Columbia Energy Exchange Discusses Power Plant Rule – In this episode of the Columbia Energy Exchange, host Bill Loveless discusses the new EPA power plant rules with Harvard’s Jody Freeman, a former Obama energy official. Freeman discusses the technicalities of the new EPA power plant rules, and the legal avenues opponents might pursue to overturn them.

FUN OPINIONS

Made In American Batteries Pose Risk, Too – In an op-ed in Barron’s and Marketwatch, Cullen Hendrix of the Colorado School of Mines’ Payne Institute writes it is one thing to aspire to a “Made in America” supply chain for minerals key to renewable technology and semiconductors. It is another thing entirely to make it a reality in a few short years.

FROG BLOG

New NEPA Rules Undermine Permitting – In her column in the Washington Post, Catherine Rampell wonders why are both President Biden and the GOP are sabotaging clean-energy technologies.  She writes that leaders both parties are all too willing to turn away solutions to climate change. This month alone, high-profile members of both parties — including President Biden — have taken steps to sabotage innovations that would reduce the carbon footprint of some of the biggest sources of emission: agriculture, power utilities and cars.

FUN FACTS

Data Centers, Power: The Senate Energy Committee will look at power demand this week. Here are the data centers in Virginia, which hosts the largest data center market in the world:

IN THE NEWS

DOE Awards $1.7B Loan Guarantee to Plug Power for 6 Clean Hydrogen Facilities – Plug Power received a conditional commitment for a DOE loan guarantee up to $1.66 billion to finance the development, construction, and ownership of up to six green hydrogen production facilities across the country.  Plug Power will produce and liquify clean hydrogen fuel using innovative American-made electrolyzers.

“Green hydrogen is an essential driver of industrial decarbonization in the United States,” said Plug Power CEO Andy Marsh. “Earlier this year, Plug successfully demonstrated our innovation and technical ability by launching the first commercial-scale green hydrogen plant in the country in Woodbine, Georgia. This loan guarantee will help us build on that success with additional green hydrogen plants.”

This hydrogen loan guarantee, as well as two others issued today, are great signs for the larger hydrogen community’s growth and expansion. FCHEA’s Frank Wolak said:

“Today’s announcement of the $1.66 Billion Conditional Commitment for Plug Power by the US DOE Loan Program Office (LPO) is great news for Plug and the US hydrogen industry,” said Frank Wolak, President and CEO of the Fuel Cell and Hydrogen Energy Association (FCHEA). “This latest news brings to over $3 Billion committed to the hydrogen industry by the LPO, adding to the $1.04 Billion committed to Monolith’s facility for clean hydrogen from methane pyrolysis and the $504 Million for the Aces Delta hydrogen production and storage project, a joint venture of Mitsubishi Power Americas and Magnum Development. These commitments are an indication of the depth of investment potential in the US and the interest of the LPO to support the US hydrogen industry and the goals of the Administration to advance a broad range of clean hydrogen.”

Plug, the leading commercial-scale manufacturer of electrolyzers, currently operates the largest proton exchange membrane (PEM) electrolyzer system in the United States at its Woodbine, Ga., hydrogen plant. Plug’s current green hydrogen generation network now has a liquid hydrogen production capacity of approximately 25 tons per day. Plug’s green hydrogen production plants utilize the company’s own electrolyzer stacks manufactured at its state-of-the-art gigafactory in Rochester, NY, and Plug’s liquefaction and hydrogen storage systems engineered at its facility in Houston

Trade Groups Urge Action on 45Z for Clean Fuels – In a letter to Treasury Sect Janet Yellen, 25 trade associations are urging the Administration to move ahead quickly and publish full tax guidance on Section 45Z Clean Fuel Production Credit, along with any necessary updated GREET models, to ensure there is no interruption in the development of these clean fuel facilities and production of the fuels. It is an important movement uniting aviation and clean fuels advocates that should encourage the Administration to move forward more quickly on helping cleaner fuels get to market. The new credit, adopted in the 2022 Inflation Reduction Act, is designed to incentivize domestic production of low-carbon fuels on a technology-neutral basis. The value of the credit is based on the life-cycle greenhouse gas emission score of each fuel.

“With the Sec. 45Z credit set to take effect January 1, 2025, our member companies and organizations may face significant headwinds and business risk if this guidance is not published promptly,” the groups write. “Any extended delays in publication of guidance for the Sec. 45Z credit may disrupt project timelines, impede capital flows, and threaten existing production and demand for low carbon renewable fuels.”

Signers include: Advanced Biofuels Business Council, Airlines for America, Alternative Fuels & Chemicals Coalition, American Biogas Council, American Short Line and Regional Railroads Association, American Soybean Association, Associated Equipment Distributors, Association of American Railroads, Association of Equipment Manufacturers, Cargo Airline Association, Coalition for Renewable Natural Gas, General Aviation Manufacturers Association, Growth Energy, Methanol Institute, National Air Transportation Association, National Business Aviation Association, National Corn Growers Association, National Oilseed Processors Association, North American Renderers Association, Renewable Fuel Association, SAF Coalition, U.S. Canola Association, Vertical Aviation International, and Waste Gas Capture Initiative. 

SPR Refill Restarted – DOE announced Friday it had awarded contracts to buy another 3.3 million barrels of oil to refill the Strategic Petroleum Reserve.

ON THE SCHEDULE THIS WEEK

HVACR Trade Groups Holds Policy Symposium – AHRI will join its industry colleagues from the Heating, Air Conditioning, and Refrigeration Distributors International (HARDI, and the Plumbing, Heating, Cooling Contractors National Association (PHCC) in Washington today and tomorrow to discuss industry issues of vital importance with members of Congress and officials at the Department of Energy and the Environmental Protection Agency. Issues to be discussed include the ongoing transition to low-global warming potential refrigerants, tax incentives contained in the 2022 Inflation Reduction Act, workforce development, and government regulation of HVACR and water heating equipment. Association members will hear from Biden Administration officials, agency officials from former administrations, as well as current and former Congressional staff about the issues outlined above and the industry’s pivotal role in the transition to cleaner energy. The meetings will culminate Tuesday in a joint industry reception on Capitol Hill following a day of meetings with Representatives and Senators.

ACORE Looks at FERC Policy – The American Council on Renewable Energy holds a virtual discussion today at 1:00 p.m. on reactions to FERC’s transmission rulemaking.

BCSE Heads to Cleveland for Climate Discussion – The Business Council for Sustainable Energy is headed to Cleveland, OH Tomorrow to Thursday for the 2024 Climate Leadership Conference, hosted by The Climate Registry. The annual Climate Leadership Conference is North America’s premier event dedicated to addressing the climate crisis through policy, innovation, and business solutions. The conference brings together forward-thinking leaders from business, government, academia, and the non-profit community to explore pathways to net-zero, energy and climate solutions, and to showcase climate leadership.

Brookings-CSIS Talks China US Climate – As part of their joint project, Advancing Collaboration in an Era of Strategic Competition, Brookings and the Center for Strategic and International Studies will co-host a public panel discussion on Tuesday, May 21, to unpack the opportunities and challenges presented by U.S.-China collaboration to address global food insecurity. Audience Q&A will follow the moderated discussion.

Senate Energy to Look at Grid, AI – The Senate Energy Committee is expected to hold a hearing tomorrow at 10:00 a.m. to discuss AI and grid challenges. Witnesses include AEP President Benjamin Fowke, Electricity Consumers Resource Council’s Karen Onaran, Scott Gatzemeier of Micron Technology and Mark Mills of the National Center for Energy Analytics.

NERO Luncheon Hosts Rep. Casten – Tomorrow at Noon at the Hyatt Capitol Hill, NERO continues its 2024 luncheon series with Rep. Sean Casten. An active leader on renewables, Casten will discuss where the policies are headed in 2025 as well as the recent FERC transmission,

GE Aerospace CEO Speaks to Economic Club – The Economic Club of Washington, D.C. holds a discussion tomorrow at Noon with Lawrence Culp, chairman and CEO of GE Aerospace, on efforts to transform GE into a more focused, simpler and stronger high-tech industrial company.

ACP Webinar Discusses FERC Transmissions Policy – Tomorrow at 1:00 p.m. America’s Clean Power holds a PowerCast event to discuss FERC’s final decision on a regional transmission planning and cost allocation final rule. The webinar features Carrie Zalewski, ACP VP of Markets & Transmission and Gabe Tabak, ACP Senior Counsel, who will discuss the content of the rulemaking, how the rule will be implemented, why this ruling is significant, and areas where this ruling may need improvement or elaboration.

Forum Looks at Chile Energy Policy – The Inter-American Dialogue holds a discussion Wednesday at 3:00 p.m. on Chile's Foreign Policy" focusing on protecting democracy; insecurity resulting from transnational organized crime; migration; and the climate crisis. Chile’s Undersecretary of Foreign Relations, Gloria de la Fuente speaks.

Carbon Pipeline Report Released – The Global CCS Institute holds a webinar on Wednesday at 4:00 p.m. looking at building carbon dioxide pipelines in the US. The webinar is focused on Global CCS’s our recently released thought leadership report, “Building Our Way to Net Zero: Carbon Dioxide Pipelines in the United States.” The report was authored jointly by the Global CCS Institute and Det Norske Veritas (DNV) with collaboration from the Great Plains Institute, University of Texas, Bureau of Economic Geology and Process Performance Improvement Consultants.

CRES White Paper Looks at Hydrogen Policy – CRES Forum holds a briefing and networking reception tomorrow at 5:00 PM at the Capitol Hill Club to hear directly from industry leaders on the frontlines of clean hydrogen development and learn about our newly released CRES Forum white paper, Growing an Industry for Clean Hydrogen. Panelists will discuss the challenges facing America’s clean hydrogen economy, the opportunities for hydrogen to serve as a vehicle for economy-wide decarbonization and the important role it can play in U.S. global energy leadership.

EV Battery Recycling on Agenda for Circularity 2024 – On Wednesday to Friday, Circularity 24 will be held in Chicago at the Marriott Marquis.  The event is the leading conference for professionals building the circular economy. On Friday at 9:00 a.m., leaders across industries and sectors will feature a discussion on how to catalyze systems change and accelerate the circular economy. Laura LoSciuto, Manager for Carbon-Free Transportation at RMI, will speak on a panel focused on EV battery circularity, along with panelists from Ascend Elements, UL Standards & Engagement, and Alliance for Automotive Innovation. The conversation will focus on what is being done to accelerate EV battery recycling and other circular practices and how this impacts the global race to net-zero.

Forum Set to Discuss Tax Policy – POLITICO Live holds a conversation on Wednesday at 8:30 a.m. to dissect the ways presidential candidates and congressional leaders are proposing to reshape our tax rates and incentives. Speakers will include Georgetown’s Dorothy Brown, the Urban Institute’s Tracy Gordon and Heritage’s Stephen Moore.

Senate Environment Looks at Recycling – The Senate Environment Committee holds a hearing on Wednesday at 10:00 a.m. federal programs for the circular economy and state and local perspectives on efforts to improve reuse and recycling. Witnesses include North Carolina DEQ Secretary Elizabeth Biser, Seattle Public Utilities Susan Fife-Ferris and Cody Marshall of the Recycling Partnership.

BPC Looks at Future of FEMA – The Bipartisan Policy Center holds a discussion on Wednesday at 10:00 a.m. on the future of the Federal Emergency Management Agency.  The event will look at the agency and meeting the challenges of an unprepared nation. Former FEMA officials Jeff Byard, Pete Gaynor and Brock Long on what the agency needs to cost-effectively and efficiently carry out its mission this Atlantic Hurricane season, coming wildfire season, and beyond.

Senate Budget Looks at Water Scarcity – In what seems like another hearing that ought to be in the Senate Energy Or Environment Committee, the Senate Budget Committee holds a hearing on water scarcity in a changing climate. NM Governor water policy adviser Tanya Trujillo and University of Colorado, Boulder expert Roger Pielke are among the witnesses.

Joint Forum to Look at Energy, Permitting – The Hamilton Project (THP) at the Brookings Institution and the Stanford Doerr School of Sustainability will host an event on Wednesday at 1:30 p.m. exploring the roadblocks and tradeoffs that policymakers need to confront in order to create a resilient and clean electricity grid. The event will feature two fireside chats, the first with U.S. Senator Alex Padilla and the second with Federal Energy Regulatory Commission Commissioner Allison Clements, along with two panel discussions. The event will coincide with the release of two new policy proposals focused on the governance of the electricity grid and the intersection of wildfire risk and utilities. The Hamilton Project will also release a facts document highlighting permitting reform.

USEA Looks at SEC Disclosure – On Wednesday at 2:00 p.m., the US Energy Assn holds a webinar to review the SEC’s long-awaited final rule on reporting of GHG emissions from a wide variety of publicly traded corporations. USEA is hosting a briefing with two of Deloitte Touche LLP’s experts on how the rule will affect publicly traded companies.

House Energy Panel to Look at Green Building Policies – The House Energy and Commerce Energy, Climate, and Grid Security Subcommittee holds a hearing on Wednesday at 2:00 p.m. on green building policies jeopardizing homeownership.

House Resources Hosts OSM, USGS – The House Natural Resources Energy and Mineral Resources Subcommittee holds a hearing on Wednesday at 2:00 p.m. examining the President's FY2025 Budget Request for the US Geological Survey and the Office of Surface Mining Reclamation and Enforcement.

Senate HELP Tackles Mining Standards – The Senate Health, Education, Labor and Pensions Employment and Workplace Safety Subcommittee holds a hearing on Wednesday at 2:30 p.m. examining new standards and practices in mining.

House Oversight Looks at DOE – The House Oversight and Accountability Committee holds a hearing on Thursday at 9:00 a.m. for oversight of the US Department of Energy. Secretary Granholm testifies.

FERC Open Meeting – FERC holds its monthly open meeting on Thursday at 10:00 a.m.

Hearing on Supply Chain Resilience Set – On Thursday at 10:30 a.m., US Trade Representatives will hold a hearing on objectives and strategies that advance U.S. supply chain resilience in trade negotiations, enforcement, and other initiatives.

House Resources Holds More Budget Hearings – The House Natural Resources Energy and Mineral Resources Subcommittee holds a hearing on Thursday at 10:00 a.m. examining the President's FY2025 budget request for the Bureau of Ocean Energy Management, the Bureau of Safety and Environmental Enforcement, and the Office of Natural Resources Revenue.

Report Looks at Russian Energy Sanctions – The Atlantic Council holds a virtual discussion Thursday at 10:00 a.m., on a new report, "Oil Gas, and War: The Effect of Sanctions on the Russian Energy Industry."  The report assesses the real impact of Western-led sanctions on Russian oil and gas industries and how to calibrate them to have the maximum impact on Vladimir Putin’s ability to continue financing and waging his war of aggression against Ukraine.

RFF Looks at Detroit Energy Innovation – Resources for the Future (RFF) holds a forum on Thursday at Noon exploring Detroit’s Innovative Model for Tackling Energy Insecurity. The event is the 5^th webinar in RFF's 2024 Exposure event series focused on environmental justice. This virtual panel will discuss how these partnerships came together, what has and hasn’t worked, how other communities can replicate Detroit’s successes, and the role of public-private partnerships in advancing community-centered climate solutions.

Cato Hosts Iowa Governor – The Cato Institute is hosting Iowa governor Kim Reynolds on Thursday at 1:00 p.m. for a panel discussion with Marc Joffe, federalism and state policy analyst at the Cato Institute, and Chris Hagenow, president of Iowans for Tax Relief. The discussion will focus on regulatory reduction and how state leaders are hacking away at the overgrowth of the regulatory state.

Forum Looks at Cities, Climate Solutions – The Environmental and Energy Study Institute (EESI) holds a forum on Thursday at 2:00 p.m. about climate solutions from small- and medium-sized cities. During this briefing, speakers will focus on nature-based solutions in cities—from parks that help manage stormwater to urban trees that can reduce summer temperatures across entire neighborhoods. Panelists, including city government officials, community leaders, and federal agency partners, will highlight equitable and community-designed climate solutions from the places they live and work and describe the intersection points with federal policy and programs.

Conservatives Look at FERC Order – The Conservative Energy Network holds a virtual forum on Thursday at 2:00 p.m. looking at FERC's new Regional Transmission Planning Rule Order No. 1920. Speakers include former FERC Chair Neil Chatterjee, Arizona House Speaker Andy Tobin, R Street’s Chris Villarreal and former Colorado State Senator Greg Brophy,

Cato Looks at Industrial, EV Policies – On Thursday at 1:00 p.m., the Cato Institute holds a forum to detail past US industrial policy efforts, the long‐standing problems these initiatives have faced and whether today’s US industrial policy projects like electric vehicles appear to be heading for the same unfortunate conclusion. Cato Trade expert Scott Lincicome and Director of Energy and Environmental Policy Studies Travis Fisher speak.

RFF Looks at FERC Transmission Order – On Thursday at 2:30 p.m., Resources for the Future (RFF) on holds a virtual event transforming transmission by unpacking FERC's new order. A panel of experts about what’s in the new rule and its implications for the transmission system and grid decarbonization. Speakers include Rob Gramlich, Xcel’s Terri Eaton, Karen Onaran of the Electricity Consumers Resource Council and several more.

Forum Looks at Mexico Energy – On Friday at 10:00 a.m., the Inter-American Dialogue holds a discussion on the outlook for Mexico's energy sector. To understand how the next Mexican president might maneuver her country through these challenges, the event will feature a fireside chat with Lourdes Melgar, a renowned expert of Mexican energy, a research affiliate at MIT’s Center for Collective Intelligence and a non-resident fellow at the Center of Energy Studies of the Baker Institute.

IN THE FUTURE

Steyer to Discuss Book – On Wednesday May 29^th at 7:00 p.m., Politics and Prose hosts Tom Steyer to discuss his book "Cheaper, Faster, Better: How We'll Win the Climate War".

USEA Holds Board Meeting, Awards – The US Energy Assn holds it biannual Board Meeting on Wednesday May 30^th.

Forum Looks at IRA Tax Credits – Crux, Pioneer Public Affairs and Clean Energy for America hold a forum on Thursday, May 30^th at 11:00 a.m. on the growing market for IRA tax credits and deployment trends

ACORE Holds NYC Finance Forum – ACORE Finance Forum will be held on June 4-5 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 – On Tuesday June 4^th, the US Chamber of Commerce holds annual Sustainability and Circular Economy Summit 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.

Axios Forum to Discuss AI – Axios holds a half-day immersive experience on the afternoon of June 5^th 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 Headline POLITICO Energy Summit – On June 6^th 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. Tom Pyle is also on the speaker list.

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.

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.

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.

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.

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.