Energy Update: Week of May 28th

Friends,

Hope you had a great Memorial Day, honoring the memory of those who paid the ultimate sacrifice for us and our freedoms. It is also the unofficial start of summer and had two Memorial Day traditions play out: The Indianapolis 500 (won by Josef Newgarden) and the NCAA Lacrosse Championships (Men’s DI Champ: Notre Dame; Women’s DI Champ: Boston College).  And just in case you aren’t watching, there are three great hockey playoffs ongoing now: Edmonton-Dallas, the NY Rangers and Florida and the PWHL finals with Minnesota and Boston. Not so much in the NBA where the Celtics swept Indiana and Dallas leads Minnesota 3-0 heading into tonight Game 4.

It is a short week with the holiday and Congress remains in their district work period. That hasn’t stopped both Democratics and oil industry advocates from battling for position on gas prices (despite the fact that they are not that much higher than normal). API pushed back this morning on last week’s fire from Democrats with two letters: one to Raskin and a separate one to Biden, urging him to meet with member CEOs. With less than six months to the election, we are probably not going to get much in the way of substance on any of these fights from the politicos, no matter the side.  And remember, usually gas prices – while a hot issue in the summer – tends to fade from the spotlight as we get to fall when prices tend to drop as summer driving season ends. 

Hurricane season also starts this week on Saturday June 1. Forecasters say this will be a very busy season with NOAA predicting an 85% chance of an above-normal season and a range of 17 to 25 total named storms, but we’ll have to see.  Sometimes they get them right, many times they don’t. I will say, it only takes one major event to do damage to any part of the southeastern or gulf coasts and many parts of our economy.

Big events this week are on Thursday and include USEA‘s bi-annual Board/Members Meeting with DOE’s David Turk and State’s Geoffrey Pyatt, a new EFI report on Hydrogen hubs "Factbook for H2Hubs Stakeholders: Environmental Justice Views on Hydrogen" and an ACORE grid discussion with Rob Gramlich.

Also check out a great selection of podcasts and opinion pieces below. 

Sending this early today for me as I am in Cali (I still get up so early when I’m out here). Tomorrow, I am headed from the Golden State to Detroit where I will make another visit with my brother (who is fighting hard and doing well thanks to all your kind words and support) and make the Commencement Speech at my high school almost 40 years after I graduated.  Thanks for all your tips and insights… I am using them!

Call with any questions and remember to subscribe to my substack site (https://frankmaisano.substack.com/) for an easy way to get access to this email archive.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932                                                                                                                       

FRANKLY SPOKEN

“One can be skeptical of regulation without shilling for the oil companies. I’m certainly not shilling for the oil companies, and I am concerned that regulation could be either ineffective or have unforeseen consequences.”

UC Berkeley economics professor Severin Borenstein in an interview with POLITICO California's Wes Venteicher about California gas prices and the regulations being proposed by Gov. Newsom.

ON THE PODCAST

Treasury Advisor Talks IRA, CHIPS Impacts – Navigating the various benefits of the Inflation Reduction Act, the Infrastructure Investment Act, and the CHIPS & Science Act can be challenging. Rachel McLeery, Senior Advisor at the Department of Treasury, breaks down how these tax credits are designed for different industries on Electric Ladies Podcast this week. The tax credits enable you to upgrade your home or business by increasing its energy efficiency

Gramlich Joins Volts to Talk Transmission – In this episode of Volts, Dave Roberts sits down with Rob Gramlich of Grid Strategies to discuss the suddenly sizzling transmission world, where both President Biden and the Federal Energy Regulatory Commission have recently announced significant updates to transmission planning, permitting, and funding. They discuss the new FERC rule, what it requires, who's for and against it, and its future. They also touch on the rest of Biden's transmission announcements, what it all adds up to and what is left to do to get the transmission needed for the clean-energy transition.

FUN OPINIONS

CA Hurts Its Neighbors with Gasoline Plans – In a column in the Arizona Republic, Editorial writer and columnist Phil Boas writes California's war on Big Oil could send already high Arizona gas prices through the roof. “As neighbors go, I’ve always thought of Gavin Newsom as basically harmless, another big-mouth, small-game California governor trying to manage a state that is essentially ungovernable. But it turns out I was wrong. Gavin Newsom is not harmless. In fact, his fantasies of turning California into the embodiment of the Green New Deal have become expensive for neighboring Arizona and Nevada.” Boas says when California imposes greater costs on business — which it has a long history of doing — business in turn passes those costs on to consumers. If California gasoline is about to get more expensive, so is Arizona’s and Nevada’s.

Russian Energy Fights Through US, Allies Sanctions – In an op-ed in the Washington Times, former State Department Official and current head of the Center on the National Interest Paul Saunders writes after worrying for decades about the political consequences of Europe’s energy dependence on Russia, it’s time for U.S. policymakers to start thinking about the political implications of Russia’s strengthening and emerging energy relationships with the rest of the world.

FROG BLOG

AI Demands More Energy, Vital to Security – In an opinion in MARKETWATCH, SAFE security expert and retired four-star general Duncan McNabb writes we are only beginning to understand its implications, and the public debate has touched on topics ranging from political misinformation to the future of the workforce. Missing from the current conversation are the risks to our national security if we fail to make the energy policy changes necessary to power these systems. Data centers and their rapacious thirst for energy has left some environmental advocates arguing to slow AI, or for taking a highly cautious approach.

A Better Way that EPA Power Plant Rules – In an expert analysis blog in Energy Law 360, former EPA official and Bracewell attorney Jeff Holmstead and Energy Innovation Reform Project head Sam Thernstrom say with EPA's newest regulation targeting power plant carbon emissions likely to be overturned by courts or a future administration, it's time for bipartisan legislation to preserve affordable, reliable electricity while substantially decarbonizing the sector by 2050.

FUN FACTS

US LNG Powering Europe: The U.S. is the new bedrock of European energy security.  The charts below show that 1) Most LNG imports into Europe were from the U.S. in 2023 and 2) Most LNG imports into Europe were from the U.S. in 2023.

IN THE NEWS

API Pushes Back on Oil Narrative –API chief Mike Sommers sent a letter this morning to Jamie Raskin, (who demanded documents last week from them) that says the group does not contribute to presidential campaign.

"Any assertion that policy discussions with a candidate are somehow inappropriate because that candidate may also be seeking a group’s electoral support is simply an attempt by political opponents to chill protected First Amendment speech with which they disagree," he writes.

API also sent another letter to President Biden this morning inviting him to chat with the heads of some of its member companies "to discuss our shared objectives of addressing the punishing rate of inflation on the American people and the energy security challenges facing the nation."

Casey Urges Changes on Hydrogen Tax Credit – In a letter Friday, Sen. Bob Casey is urging Biden to expand the eligible sources under the administration’s implementation of the clean hydrogen tax credit created by the Inflation Reduction Act. The administration’s proposed guidance on the credit has generated pushback from some companies that say it will limit the nascent industry’s ability to get off the ground – a particular concern for some in Casey’s home state.

Pennsylvania companies, utilities, labor unions and communities have been enthusiastically preparing for the new jobs, economic growth, and decarbonization opportunities that will accompany the new hydrogen economy. However, they were alarmed by the Administration’s initial guidance for the hydrogen production tax credit, which called into question whether various pathways to produce clean hydrogen will be eligible for the tax credit.

Of course, Casey was part of a group of 11 Democratic Senators last year that urged the President to follow Congressional intent in the IRA on flexibility for 45V hydrogen credits.

Parts of the US Could Face Energy Shortages and Blackouts This Summer – A new assessment from the North American Electric Reliability Corporation (NERC) says certain areas of the US will face an elevated risk of energy shortages this summer, according to a seasonal grid reliability. The report highlights regions of North America that could face grid reliability issues, thanks to too little supply of or too much demand for power. While this year's summer grid outlook is better than last year's, there are still some areas of the US that fall under an elevated risk of energy shortage and blackouts during unexpected extreme heat events. NERC says much of the Midwest, New England and the region from California to Louisiana are at risk during higher-than-normal peak demand. British Columbia and Saskatchewan in Canada have a higher risk as well.

Study: Wind Turbine Pay Back is Quick – A new peer-reviewed study published in the Journal of the Royal Society of New Zealand – shows it takes less than two years of spinning to pay back the energy cost of building wind turbines. It also adds, within six months a turbine can generate all the energy consumed across its life-cycle. The research uses data from the Harapaki onshore wind farm in Hawke’s Bay, New Zealand – however the authors of the paper explain that their findings would be replicated across most, if not all, wind farms internationally. “The wind turbine technology employed in New Zealand is consistent with that used internationally,” explains lead author Isabella Pimentel Pincelli from the Sustainable Energy Systems research group, Wellington Faculty of Engineering, at Te Herenga Waka Victoria University of Wellington.

Columbia Announces Reporters in Journalism Program – The Center on Global Energy Policy (CGEP) at Columbia University’s School of International and Public Affairs today announced this year’s cohort of journalists selected for the 2024 Energy Journalism Fellows program, which will be held on Columbia University’s campus in New York City in late June. Taught by CGEP Scholars, Columbia faculty, and other academic, industry, and government experts, the Energy Journalism Fellows program (EJF), formerly known as the Energy Journalism Initiative, offers journalists the opportunity to learn about the intersecting disciplines shaping the global energy sector, including finance and markets, climate change, science and technology, policy, and geopolitics. See this year’s list here

ON THE SCHEDULE THIS WEEK

Discussion of Clean Energy in Rural America – ACP PowerCasts hosts a webinar today at 1:00 p.m. to discuss deploying clean energy in rural America. The event features a conversation between ACP CEO Jason Grumet and CEO of the Tri-State Generation & Transmission Association, Duane Highley, where they discuss how rural cooperatives are meeting their challenges and supporting clean energy projects in rural areas.

CSIS Hosts NYT’s Sanger – Today at 4:00 p.m., the CSIS International Security Program a conversation with David Sanger, Pulitzer Prize- winning journalist and White House and national security correspondent for The New York Times, and Dr. Seth G. Jones, CSIS senior vice president, Harold Brown Chair, and ISP director, about Sanger's newest book, New Cold Wars: China's Rise, Russia's Invasion, and America's Struggle to Defend the West.

Forum Looks at Clean Energy – The Inter-American Dialogue holds a discussion tomorrow at Noon catalyzing private sector investment in clean energy, The event features a roundtable discussion that will showcase collaborative efforts in clean energy investment, sustainable development practices and  explore the crucial role of partnerships between governments, private sector companies, and donor agencies in accelerating private investment in renewables and other clean energy technologies.

Steyer to Discuss Book – On Wednesday 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 bi-annual Board Meeting on Wednesday staring at Noon. There is a great list of speakers, headed by DOE’s David Turk and State’s Geoffrey Pyatt.

EFI Report to Look at Hydrogen, Environmental Justice – The EFI Foundation hosts an event for the release of "Factbook for H2Hubs Stakeholders: Environmental Justice Views on Hydrogen" on Wednesday at 12:00 p.m. Speakers discuss the study, the concerns of environmental justice groups and how to engage authentically with communities for hydrogen hubs projects.

IEA Report Looks at Fairness, Affordability in Clean Energy – The International Energy Agency holds a press discussion Thursday morning at 10:30 a.m. PARIS time (4:30 a.m. ET) on a new report, "Strategies for Affordable and Fair Clean Energy Transitions.” Fatih Birol, IEA Executive Director and Tim Gould, IEA Chief Energy Economist will speak.

Forum Looks at Central Asian Energy Issues – The Center for the National Interest holds the fourth in a monthly series of expert discussions organized by the Center’s Central Asia Connectivity Project on Thursday at 10:00 a.m. The forum will address how much additional supply can come from Central Asia and what are the most likely pipelines and transit corridors that will be used. Speakers include CSIS’s Ed Chow, CNI’s Greg Priddy and Tatiana Mitrova of the Columbia University’s Center on Global Energy Policy.

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

Gramlich Headlines ACORE Transmission Forum – On Thursday at 3:00 p.m., the American Council on Renewable Energy and Grid Strategies hold their second installment of a four-part series on opportunities to improve the three “Ps” (planning, permitting, and paying) of transmission policy. This installment will explain the important role of Congress in transmission policy reform and how to best engage while staying in compliance with IRS lobbying restrictions. ACORE’s Jeremy Horan, VP of Government Affairs, and Rob Gramlich, Founder and President of Grid Strategies, will speak.

Forum Looks at Hurricane Season Challenges – The Atlantic Council’s Caribbean Initiative hold a forum on Friday at 1:30 p.m. as stakeholders and partners of the Caribbean issue a global call to action to build greater climate resilience as hurricane season begins. The conversation is part of the Caribbean Initiative’s continued focus on how climate impacts the region and will also preview new recommendations from the Caribbean Initiative’s upcoming PACC 2030 report, which highlights US opportunities to implement its climate-oriented policies in the region.

IN THE FUTURE

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.

Heavyweights Highlight USEA Electricity Panel – The US Energy Assn hosts another virtual press briefing on Wednesday June 5^th at 11:00 a.m. to discuss electricity supply challenges and diversity of generation.  Experts include NERC head Jim Robb, EPRI’s Daniel Brooks, former Energy Secretary and EEI head Dan Brouillette, EPSA CEO Todd Snitchler, and co-op leaders David Schleicher of NOVEC and David Naylor of Rayburn Electric Cooperative. Our reporter friends asking the questions include Jennifer Hiller of the Wall Street Journal, Ken Silverstein of Forbes, Evan Halper of the Washington Post and several more.

Washington Energy Summit Set – On Wednesday and Thursday June 5^th and 6^th, the US Energy Stream Washington Energy Summit will bring powerful U.S. Senators, U.S. Congressmen, and senior U.S. government officials, together with top energy leaders to provide market intelligence and enable solutions. The Summit explores in-depth the energy strategies, policies and solutions that strengthen energy security for the United States and our allies and promote economic prosperity through sustainable, affordable, and reliable energy access. Gevo is a sponsor and CEO Pat Gruber will speak., Other Speakers include State’s Geoffery Pyatt, Sen. Roger Marshall (R-KA) and more than 20 Congressman from around the country.

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. U.S. Secretary of Energy Jennifer Granholm will discuss the nation's top energy initiatives as keynote. Tom Pyle is also on the speaker list.

RFF Forum to Look at Critical Minerals – Resources for the Future (RFF) on Thursday June 6^th holds its “Critical Minerals, Critical Stakeholders: Engaging Local Communities in Mineral Resource Collaboration," as part of our Exposure 2024 Event Series on environmental justice. This webinar will cover issues such as what effective, meaningful, and equitable engagement looks like; challenges that often emerge in the engagement process; how to deal with competing community interests; the role for compensation agreements and how to best structure these; and opportunities that can arise from community engagement. The webinar will also cover policies that can be enacted to improve collaborative outcomes between communities and mining companies and discuss the role for research in this space. Aaron Malone of the Colorado School of Mines is among the speakers.

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.

RMI Holds Forum on Virtual Power Plants – On Thursday June 13^th at 2:00 p.m., RMI and the Flex Coalition hold a forum to discuss the intersection of virtual power plants (VPPs) and the IRA’s home energy rebates. Industry stakeholders and policy experts will share how investments in energy-efficient homes and buildings can prepare the industry for flexible energy management — and create more resilient and responsive homes.

GreenFin Conference Set for NYC – GreenFin 24 is set for New York City on June 17^th, GreenFin is the leading sustainable finance conference for professionals harnessing the power of capital markets to realize a net zero economy. Speakers include EPA’s Satyem Khanna, Tom Steyer, RMI’s Brian O’Hanlon and Paul Bodner of the Bezos Fund.

CA Hydrogen Conference Set – The California Hydrogen Conference is set for June 17^th in Sacramento, CA. The event will feature educational sessions and dynamic keynote presentations that assess the opportunities and challenges of hydrogen, explore its role in promoting California's economic growth, and discuss its impact on reducing carbon emissions in the transportation, energy, and industrial sectors. ARCHES CEO Angelina Galiteva, CEC Chair Siva Gunda, SoCal Gas’ Neil Navin, FCHEA CEO Frank Wolak and several others speak.

EEI 2024 Focused on Power Deman, AI – EEI 2024 is set for Monday June 18^th to Wednesday June 20^th at the brand-new Fontainebleau Las Vegas. Jensen Huang, Founder and CEO of NVIDIA, will deliver the opening keynote address. FERC Chair Willie Phillips provides the Closing Keynote on Wednesday, while other speakers include HP CEO Antonio Neri and host of utility CEOs.

RNG, SAF Forum Set – Infocast’s RNG & SAF Capital Markets Summit is in Houston on June 19^th and 20^th. Financial and industry leaders from across the RNG and SAF value chains will discuss ways to raise and deploy capital for the buildout of projects across North America. Gevo’s Eric Frey is among the speakers.

ACP Holds Energy Storage Summit – The American Clean Power Association holds its Recharge Energy Storage Summit on June 26^th to 28^th in Portland, OR. The event features cutting-edge sessions, the latest technologies and industry leaders and experts from across the sector.

Nuclear Summit Set – In partnership with the United Coalition for Advanced Nuclear Power, ExchangeMonitor Publications & Forums hold the 2^nd Annual Nuclear Energy Security Summit

June 26-27 at the Ronald Reagan Building & International Trade Center in Washington, DC. This event brings together government officials, industry leaders, experts, and stakeholders to discuss critical issues facing the nuclear energy sector, including securing the supply chain, increasing resiliency and achieving sustainability.

RealClearEnergy Hosts Forum – RealClear Dialogues Energy Future Forum will be held on Wednesday June 26^th and will focus on the intersection of technology, money and politics. The Forum is a one-day event featuring one-on-one conversations with the foremost experts across energy and environmental policy, capital markets, alternative energy, automotive, oil & gas, mining, nuclear energy and the grid. Speakers will include EQT’s Toby Rice, former LA Senator Mary Landrieu former Energy Secretary Spence Abraham and former FERC Chair James Danley, among others.