Energy Update: Week of May 22nd

Friends,

Happy run-up week to Memorial Day, the true beginning of Summer. In DC, that means those regular road trips to Rehoboth/Dewey and Ocean City…and the President is actually there, too. Speaking of Delaware, Senate Enviro Chair Tom Carper announced today he won’t seek reelection. (Note the key line from the announcement: He says he wants "chart a bipartisan path forward on permitting legislation" before retiring in 2024. More on this below)

The past weekend was great for me with a big day at the Preakness.  For those of you interested, I hit a Trifecta box with National Treasure, Blazing Sevens and Mage. I lost out on the Super though (I had Perform). I also won a straight on National Treasure.  Not big payouts with the small field, but all-in-all, a good Saturday….  Also, exciting to watch Brooks Koepka take his third PGA title (each at a NY venue).

Also over the weekend in Japan, G-7 leaders stressed “the important role that increased deliveries of LNG can play” in the context of the “exceptional circumstance of accelerating the phase out of our dependency on Russian energy.” They also endorsed the use of low carbon hydrogen and blocked language that would limit phase out of coal (pushed by Japan). Of course, the US Chamber’s Global Energy Institute led the charge to urge continued support from LNG/natgas to key markets saying they look forward to implementing the G-7’s vision for “a successful energy transition that will improve global quality of life and elevate environmental standards.”

The June 1 deadline for a debt-ceiling deal is getting closer, and we expect more back and forth.  We’re watching for any news on the efforts to push permitting reform as part of the negotiations. Most experts think we are headed for short term agreement establishing a framework for an agreement on pillars like permit reform, spending cuts and work requirements. My colleague Liam is all over this and between Scott, Liam and me, we have a lot of good insights we are happy to share.

The House is also set to vote tomorrow on a CRA resolution to overturn EPA’s recent rule targeting nitrogen oxides emissions from heavy-duty trucks, which has already passed the Senate. Of course, President Biden has vowed to veto it. We also hear EPA will publish its climate rule for power plants in the Federal Register tomorrow, starting the clock on a public comment period through July 24.

A lot of early action on the hearing schedule this week: House Rules today on the CRA, House Energy on domestic supply chains and manufacturing tomorrow and House Oversight on the Gas Stoves on Wednesday (that will be super exciting) are the highlights.

The biggest outside event this week is in New Orleans where our friends at ACP are holding CLEANPOWER 2023. The event unites the most knowledgeable minds in clean energy to chart the future of this powerful industry and discuss the opportunities ahead. John Podesta and Sen John Kennedy are Keynote speakers and our friends Marty Durbin of the Chamber’s GEI and Amy Andryszak of INGAA also speak.

Other events include CSIS Energy Security and Climate Change Program holds a forum tomorrow to host Jigar Shah, a Wednesday EESI briefing on the Farm Bill with Rep. James Clyburn and a Thursday US Energy Assn annual Policy Forum.

Finally today, some sad news over the weekend. Former White House counsel and influential environmental policy lawyer C. Boyden Gray passed away over the weekend at his home in Georgetown. He was a legal titan on Clean Air Act issues and will always be remembered for his outsized personality that often times led to bringing people together to solve difficult policy challenges.  Please enjoy the weekend and be careful out there. It is a big sports weekend with NHL and NBA playoffs, NCAA men’s and women’s lacrosse final fours (in all divisions) and the Indianapolis 500.

                                                                                                                                              

FRANKLY SPOKEN

“Those people that have the bulls-eye on oil and gas, those people haven’t run companies and thought through how you do this. Does that mean we do away with wind, solar, and geothermal? Hell no. We need absolutely everything.”

Rep. Garret Graves, who has led the negotiations team for GOP Speaker Kevin McCarthy. 

“Our comments have been, once we see what’s on the table — once we see the language — we can talk it out. I think leadership knows at least my position that anything that begins to undercut NEPA and the public process, and sets back [environmental justice] gains, is not acceptable.”

House Natural Resources Committee ranking member Raúl Grijalva (D-AZ), who rallied the permitting overhaul opposition in the previous Congress.

 

ON THE PODCAST

Electric Ladies Talk Net Zero – In this week’s version of the Electric Ladies Podcast, host Joan Michelson talks with Columbia Center for Global Energy Policy expert Melissa Lott about the need to get to carbon zero or net zero emissions, what it really means and what we need to do. Lott is the lead scientist in the extraordinary new Nova documentary on PBS hosted by renowned science journalist and update friend Miles O'Brien.  The episode is a granular, easy-to understand explanation of the net-zero concept. 

 

FUN OPINIONS

Govenator Calls Enviro to Endorse Permit Reform to Spur Clean Energy – Former California governor and actor Arnold Schwarzenegger argued environmentalists are slowing the green energy transition in an opinion column in USA TODAY. The Governator called on his environmentalist friends to move past the old ways and to embrace a new environmentalism based on clean energy growth. Schwarzenegger said it’s “time for our environmental movement to wake up to the new reality and to change and adapt. Our progress is moving so quickly that it is hard to imagine how we could ever fail.  But I want to be clear: we can fail, and if we do, it won’t be a failure of innovation. We can no longer accept years of environmental review, thousand-page reports, and lawsuit after lawsuit keeping us from building. I want to be clear: I’m not just talking about building new highways or infrastructure. I’m talking about environmental projects.”

 

FROG BLOG

EPA Missing Mark on Power Plant Rule – In an opinion piece in the Wall Street Journal, former FERC general Counsel William Sherman write the EPA’s proposed power-plant emission rule would destabilize the energy grid and end reliable electricity. A week before the EPA proposed its rules, all four FERC commissioners, Democrats and Republicans alike, told the Senate Energy and Natural Resources Committee that it isn’t possible in the foreseeable future to maintain a reliable grid without the coal and gas plants targeted by the new rules. If Republicans and Democrats agree the policy is unworkable, you know we’re in trouble.

 

FUN FACTS

Why the U.S. is so bad at building clean energy in 3 charts from Shannon Osaka at The Washington Post

 

THE NEWS

Renewables Delaying by Permits, Supply Chain, Trade, Reg Issues – The American Clean Power Association released Its 2022 Market Report a report this morning at CLEANPOWER 2023 in New Orleans that says the clean power industry experienced a decline last year in deployment for the first time in five years stemming from trade constraints, supply chain issues, permitting delays and other regulatory challenges. ACP CEO Jason Grumet said in a statement "the clean energy transition will not succeed unless Congress and Governors enable the siting and construction of new energy facilities and support the build out of transmission that is required to bring clean power to the people."

ACCF Releases LNG Report – ACCF held a forum this morning and released a new report on the state of natural gas production and the future of LNG Exports.  ACCF interviewed Rep. Buddy Carter, which was followed by a panel discussion with LNG industry experts on a new ACCF report, "Analysis of U.S. Natural Gas Market Price Impacts from Increasing Natural Gas Supply Accessibility for Different Natural Gas Demand Outlooks," conducted by NERA Economic Consulting.  The report says U.S. natural gas market remains robust and can satisfy both growing domestic consumption and export demand at relatively low prices, and those prices can be even lower if policymakers ease permitting delays on pipeline infrastructure. Key takeaways from the study:

• The U.S. continues to have sufficient natural gas resources to meet growing market needs at relatively low prices. 
• Lack of new natural gas pipeline infrastructure is a material impediment to bringing the lowest cost gas resources to the market. 
• Natural gas price impacts from expanding pipeline infrastructure are expected to reduce natural gas prices, even with higher levels of U.S. LNG exports. 

Study: NatGas, Oil Deliver Americans Nearly $2 Trillion in Economic, Trade, Job Benefits – API released new analysis on the growing economic contributions of America’s natural gas and oil industry in all 50 states, including investment in America ranging from taxes and workforce wages paid to indirect and induced jobs in retail, manufacturing, agriculture and other sectors throughout the energy supply chain. The study, commissioned by API and prepared by PricewaterhouseCoopers (PwC), showed that the industry supported 10.8 million jobs and contributed nearly $1.8 trillion to the U.S. economy in 2021. The PwC report is based on the latest government data available at the state, national and congressional district level. The findings highlight the importance of policies that promote energy development, including meaningful action on permitting reform and the issuance of a final five-year plan for offshore oil and gas leasing.

According to the analysis, in 2021, the industry directly and indirectly:

• Supported 10.8 million total jobs or 5.4 percent of total U.S. employment.
• Generated an additional 3.7 jobs elsewhere in the U.S. economy for each direct job in the natural gas and oil industry.
• Produced $909 billion in labor income, or 6.4 percent of the U.S. national labor income.
• Supported nearly $1.8 trillion in U.S. gross domestic product, accounting for 7.6 percent of the national total.

While America’s natural gas and oil industry has a presence nationwide, the following 10 states standout as key drivers of the industry’s growing economic contributions:

1. Texas: Generates $454.5 billion for the state’s economy.
2. California: Generates $217.1 billion for the state’s economy.
3. Pennsylvania: Generates $75.0 billion for the state’s economy.
4. New York: Generates $70.1 billion for the state’s economy.
5. Oklahoma: Generates $57.5 billion for the state’s economy.
6. Ohio: Generates $55.5 billion for the state’s economy.
7. Illinois: Generates $55.3 billion for the state’s economy.
8. Louisiana: Generates $54.3 billion for the state’s economy.
9. Florida: Generates $53.1 billion for the state’s economy.
10. Colorado: Generates $48.7 billion for the state’s economy.

Click here to view a map outlining economic data in each state. View the report here and factsheet here.

NERC Summer Assessment Shows Tight Electricity Margins – The North American Electric Reliability Corp.’s latest reliability assessment says the U.S. and Canada could face electricity shortfalls and blackouts this summer if temperatures spike. The report is the latest warning from NERC that the U.S. power system is increasingly struggling to meet rising electricity demand — particularly during the summer or winter months when extreme heat or cold drive up consumption and threaten the reliability of some power plants.

API Exec Joins American Clean Power – The American Clean Power Association (ACP) announced that Frank Macchiarola will join the organization as Chief Policy Officer. Macchiarola currently serves as Senior Vice President of Policy, Economics and Regulatory Affairs at the American Petroleum Institute. In his new role at ACP, he will lead a policy team working to develop the regulatory and legislative framework necessary to efficiently deploy the full suite of advanced clean energy technologies. Macchiarola joins an executive team that includes Chief Advocacy Officer JC Sandberg; Chief Communications Officer and Sr. Counselor to the CEO Rosanna Maietta and Chief Strategy Officer Jason Clark. Macchiarola starts his new role on June 20, 2023.

 

ON THE SCHEDULE THIS WEEK

WINDPOWER Set for New Orleans – America’s Clean Power holds its annual CLEANPOWER Conference in New Orleans today to Thursday.  The event is the renewable energy industry’s premier event. CLEANPOWER brings together policy leaders, industry experts, and clean energy companies together to grow the industry. CLEANPOWER unites the most knowledgeable minds in clean energy to chart the future of this powerful industry and discuss the opportunities ahead. John Podesta and Sen John Kennedy are Keynote speakers and our friends Marty Durbin of the Chamber’s GEI and Amy Andryszak of INGAA.

DOE, RFF Host RD&D Workshop – Resources for The Future and DOE hold a half-day workshop tomorrow morning highlighting the current practices and suggesting improvements needed for the tracking and evaluation of the US Department of Energy’s research, development, and demonstration programs.The goals of this half-day workshop are to highlight the current practices and suggest improvements needed for the tracking and evaluation of DOE’s RDD programs. The event will feature government evaluation experts, academics, non-profits, and DOE staff and decisionmakers.

Forum Looks at Power Grid – WRI’s Systems Change Lab holds a forum tomorrow at 9:00 a.m. for an important discussion with leading policy leaders and energy experts about what can be done to accelerate the global clean energy transition.  The event is co-hosted by the Bezos Earth Fund and Climate Action Tracker (a project of NewClimate Institute and Climate Analytics. Speakers will discuss pressing issues in the global power sector and how to overcome bottlenecks to a clean energy future. Panelists will also examine how the US Inflation Reduction Act, European Union’s REPowerEU Plan and other policies are reshaping the long-term outlook for how homes, businesses and vehicles are powered and what measures are critical to ensuring that workers currently working in extracting and using fossil fuels are not left behind.

House Resources Looks at Budgets – The House Natural Resources Water, Wildlife and Fisheries Subcommittee holds a hearing tomorrow at 10:15 a.m. on examining the President’s FY2024 Budget Proposal for the U.S. Bureau of Reclamation, U.S. Fish and Wildlife Service, National Oceanic and Atmospheric Administration, and the Power Marketing Administrations.

House Energy Panel Looks at Supply Chain – The House Energy and Commerce Oversight and Investigations Subcommittee holds a hearing on tomorrow at 10:30 a.m. focused on growing the domestic energy sector supply chain and manufacturing base.

Forum to Look at ESG Issues – CQ Roll Call and FiscalNote hold a virtual discussion tomorrow at 11:00 a.m. on ESG issues. The forum will look at regulations currently in force or in the pipeline that will have a major impact, as well as the evolving geopolitical landscape and its near-term impacts.

USEA Focuses De-Risking CCS – The US Energy Association holds a virtual discussion tomorrow at 1:00 p.m. on de-risking carbon capture and storage. Battelle and USEA will release their FY22 Report assisting stakeholders address these risks. Battelle’s Jared Hawkins speaks.

Forum Address Storage Bottleneck – The Clean Energy States Alliance holds a forum tomorrow at 1:00 p.m. looking at energy storage interconnection bottlenecks. Panelists will discuss the findings of the new report, “The Interconnection Bottleneck: Why Most Energy Storage Projects Never Get Built,” and share their own experiences with the energy storage interconnection bottleneck.

CSIS Hosts DOE’s Shah – The CSIS Energy Security and Climate Change Program tomorrow at 3:00 p.m. to host Jigar Shah, Director of the Loan Programs Office at the U.S. Department of Energy. The Loan Programs Office (LPO) provides significant capital to high-impact energy projects and advanced vehicle technologies, to help finance the decarbonization of the U.S. economy. Shah will discuss how his office is advancing supply chain competitiveness, including for critical materials and EV supply chains, and supporting U.S. advanced nuclear projects in line with the Biden Administration’s clean energy goals.

WCEE Holds Reception with FERC Commissions Clements – The Women’s Council on Energy & the Environment holds its Spring reception tomorrow evening at Dentons' Rooftop featuring FERC Commissioner Allison Clements.

Atlantic Council Looks at Permitting Renewables – The Atlantic Council Global Energy Center holds a discussion on Wednesday at 9:30 a.m. on permitting reform in the US and EU and the lessons each jurisdiction can offer the other. This event offers a critical examination of the EU and US cases that could help yield strategies for effective reform in the permitting of renewable energy and transmission infrastructure. Speeding up the permitting process is a key part of the transition to renewable energy but must be done correctly to mitigate social or environmental harm.

House Oversight to Address Gas Stove Issues – The House Oversight and Accountability Economic Growth, Energy Policy, and Regulatory Affairs Subcommittee holds a hearing on Wednesday at 10:00 a.m. examining the Biden Administration controversial moves on gas stoves. AGA’s Matt Agen will testify alongside DOE’s EERE office.

House Resources Reviews Publica Lands Access – The House Natural Resources Oversight and Investigations Subcommittee holds a hearing on Wednesday at 10:00 a.m. examining Administration’s efforts to limit public lands access.

House Transpo Reviews National Emergencies – The House Transportation and Infrastructure Economic Development, Public Buildings and Emergency Management Subcommittee holds a hearing on Wednesday at 10:00 a.m. to provide an examination of the National Emergencies Act.

Forum Look at Poland Decarb – As part of its annual Warsaw Week events, the Atlantic Council is holding a forum Wednesday at Noon on decarbonization efforts in Poland. The event aims to discuss Poland’s energy strategy to date, outline next steps for Europe’s energy transformation, and unpack how allies such as the United States can play a meaningful role in supporting Poland’s constructive and tangible steps to reduce Europe’s reliance on Russian oil and natural gas in synch with decarbonization efforts. Climate Minister Michał Kurtyka and US Embassy energy attaché in Poland Robert Rudich are among the speakers.

Hudson Expert Talks Energy – The Hudson Institute hosts a forum on Wednesday at 1:00 p.m. feature a discussion with industry experts on the best ways to tackle current and emerging energy policy issues. Heritage expert Travis Fisher is among the panelists.

WaPo Live Hosts Susan Rice – On Wednesday at 1:00 p.m., Susan Rice joins Washington Post associate editor Jonathan Capehart at a Washington Post Live forum to reflect on the administration’s priorities as she prepares to leave her current role, her time in public service and how she sees the state of American democracy.

Forum Continues Look at Farm Bill – The Environmental and Energy Study Institute holds a briefing Wednesday at 2:00 p.m. on Farm Bill policies and programs that help farmers, ranchers, small businesses, and rural communities drive down greenhouse gas emissions, generate jobs, and stimulate the economy. During this briefing, panelists will discuss how Congress can bolster key programs in the rural development and energy titles of the Farm Bill, such as the Rural Energy Savings Program, Rural Energy for America Program, and water and wastewater technical assistance programs. These provisions help rural communities improve energy efficiency, access electrification retrofits, upgrade water systems, and build out broadband capabilities.  James Clyburn and Aiken Electric Coop CEO Gary Stooksbury are among the speakers.

House Resources Looks at BIA Budget – The House Resources Indian and Insular Affairs Subcommittee holds a hearing on Thursday at 9:00 a.m. examining the President’s FY2024 Budget Request for the Bureau of Indian Affairs and Office of Insular Affairs.

USEA Policy Forum Set – On Thursday, the US Energy Assn holds its annual membership meeting and Policy Forum at the Ronald Reagan Building From 11:00 a.m. to 4:00 p.m.

SEIA Forum Looks at Residential Solar Installations – The Solar Energy Industries Assn holds a forum on Thursday on lessons learned from residential installations. NREL will share research on roofing integrated PV products in the residential market segment, where markets seem to be growing nationwide, and insights from on-the-ground observations or time and motion studies of various roofing-integrated PV installations.

Energy Economists Look at LNG Exports – On Thursday at 3:00 p.m., the US Association for Energy Economist holds its monthly event on the role of US natural gas exports in a low-carbon world. The U.S. liquefied natural gas industry should continue to engage with and gas to both the developed and developing countries in Asia, which should be long-term consumers of affordable and reliable natural gas for their own energy security and decarbonization goals. Rick Westerdale, executive director at the Energy Futures Initiative (EFI), speaks.

 

IN THE FUTURE

USEA Media Brief Looks at Utilities, AI – The US Energy Association will hold another virtual press briefing next Tuesday May 30^th at 11:00 a.m. to examine the coming impact of AI on electric utility operations.  At the briefing, a panel of energy reporters will question a panel of experts on the power and the challenges of AI for electric utilities. The experts include Brown University’s John Savage, EPRI’s Jeremy Renshaw, Marc Spieler of Nvidia and Dan Robertson of Landis + Gyr.  The reporters include AP’s Matt Daly, Matt Chester of Energy Central, Jennifer Hiller of the Wall Street Journal. Peter Behr of E&E News and Forbes Columnist Ken Silverstein.

Forum Targets Innovation – The Information Technology & Innovation Foundation holds a forum on Tuesday May 30^th at 12:00 p.m. on further energizing innovation.  The event will assess the Federal Energy RD&D Budget for FY24 and Beyond and includes the release of the Center for Clean Energy Innovation’s annual report assessing the federal energy RD&D budget and an expert panel discussion on how the funding aligns with key priorities.

Punchbowl, API Host Permitting Forum – Punchbowl News will host a conversation on permitting reform on Wednesday May 31^st at 9:00 a.m. The event, moderated by Punchbowl News Founder Jake Sherman, will feature industry leaders including Mike Sommers, CEO of American Petroleum Institute, Paula Glover, president of the Alliance to Save Energy, Jason Grumet, CEO of American Clean Power and Sean McGarvey, president of the North America’s Building Trades Unions.

Carbon Pipeline Hearing Set for Iowa – PHMSA provided notice of a public meeting it will hold on CO2 pipeline safety from May 31^st to June 1^st in Des Moines, Iowa. The meeting will “serve as an opportunity for pipeline stakeholders to help inform pipeline safety-related rulemaking decisions and share information surrounding CO2 pipeline safety. Key stakeholders include the public, states, tribal governments, other federal agencies, industry, and international regulators and/or organizations.”

Forum to Focus on Hydrogen – EESI and the Environmental Defense Fund (EDF) hold a briefing on Thursday June 1^st at 2:00 p.m. looking at the science of hydrogen and its potential as a source of clean energy. Panelists will describe the current state of research on hydrogen, including new technologies to detect hydrogen leaks, and discuss the most efficient and effective use cases for hydrogen power, such as powering industrial applications and heavy-duty transport.

Finance Forum Set for NYC – The ACORE Finance Forum returns to New York City on June 7-8^th. This year, leaders from across the renewable transaction landscape will assess risk mitigation amidst uncertainties regarding IRA implementation, inflation, permitting challenges and transmission constraints. With a great deal of capital ready to flow into the renewable sector, don’t miss this opportunity to learn how experts are navigating the possibilities and growth-driven challenges.

US Trade Rep Headline POLITICO London Forum – POLITICO holds its inaugural Global Tech Day, taking place on Thursday June 15^th in London. US Trade Rep Katherine Tai will keynote an event that will focus on the latest in global tech and the ramifications of our world's newest innovations on international politics.