Energy Update: Week of May 5th

Friends, 

Happy Cinco de Mayo!!!  Saturday’s the 151st Kentucky Derby “Run for the Roses” really was the most exciting two minutes in sports. The sloppy track and fast early pace allowed closers to emerge as the race leaders, with Sovereignty holding off the favorite, Journalism, all the way to the wire. Late entry Baeza, who drew in on Wednesday after Rodriguez scratched (and I loved, right away), ran a strong third.  Unfortunately, Sandman didn’t close hard enough but it still left me with a Trifecta box winner.  All-in, I am on the plus side after race one. Preakness here in Baltimore in two weeks.    

At the White House this week, the President meets with new Canadian PM Mark Carney. After delivering its budget on Friday (which remember traditionally is pretty much disregarded by Congress), the White House offer some perspective on budget direction in the next few weeks. The Senate returns today to consider a CRA on the Biden EPA rule on emissions from tire manufacturing. It will then start a heavy lean on confirmations including expected approvals for Kate McGregor, Ted Garrish and other EPA folks, with the Hopes of having every confirmed by Memorial Day Work period. The House this week will formally rename the Gulf of Mexico as the Gulf of America. The Ways/Means and Energy/Commerce committees still do not have markups scheduled on the reconciliation bill, but we are hearing that July 4th is the new target date for passing the bill. We do know that House Resources marks up its reconciliation package tomorrow.  

On hearings, Senate Ag looks at the “Fix our Forests” Act tomorrow and House Approps Energy Subpanel starts the budget discussion on energy Wednesday with DOE Secretary Wright. House and Senate Ag host USDA Secretary Brooke Rollins tomorrow and Wednesday. Senate Energy hosts more Energy and Interior nominees on Thursday. Finally, Senate Small Business Committee holds a field hearing in Boston, MA on Friday looking at Clean Energy.

The cement industry holds its annual conference in Birmingham this week (maybe expect some news midweek), the 28th annual Milken Institute Global Conference is today to Wednesday  at  the Beverly Hilton, while The Hill holds an Energy and Environment Summit and R Street Institute holds its 2025 Real Solutions Summit tomorrow. With PM Carney in the US, CSIS holds a discussion tomorrow on the future of US-Canada minerals cooperation and Electricity Canada members are in DC. The 2025 Citizens for Responsible Energy Solutions (CRES) Energy Leadership Summit will be held on Wednesday.

Speaking of CRES, they released a new report highlighting the enormous potential of blue hydrogen to drive job creation, boost American manufacturing and secure U.S. leadership in the global clean energy economy. CRES said maintaining the IRA’s 45V clean hydrogen tax credit could help “unleash” the potential of blue hydrogen produced with carbon capture by supporting tens of thousands of jobs and making the U.S. a leading exporter of the fuel.

Call with Questions.

Best, 

Frank Maisano
(202) 828-5864
C. (202) 997-5932
                                                                                                                                              
FRANKLY SPOKEN
   
““We want to carry out the president’s agenda, follow the rule of law. And so some of these loans will go forward. Some of them, it’s too late to change courses. A lot of them won’t go forward, but that’s a very careful review process that we’ve just put in place.”

Energy Secretary Chris Wright on Bloomberg TV discussing DOE’s continued review all loans and grants issued under the Biden administration.
   
ON THE PODCAST

Semafor’s McDonnell Talks Ukraine, Russia Energy Impacts – In this week’s Columbia Energy Exchange, host Jason Bordoff interviews our friend Tim McDonnell of Semafor about the role that energy has played in the war in Ukraine and how it could factor into its resolution.

USEA Talks Offshore Wind with Stephanie McClellan – Today’s closing episode of the USEA podcast series on offshore wind features Stephanie McClellan describes how the global and US offshore wind energy industries have matured and are ready to be a vital part of the world’s clean energy mix. McClellan is the former Director of the Special Initiative on Offshore Wind at the University of Delaware and worked with transmission developer Trans-Elect.

FUN OPINIONS

KBH: Trump Energy Strategy Can Meet Demand With All-of-the-Above Approach – In an op-ed in the Houston Chronicle, Kay Bailey Hutchison, former three-term U.S. Senator from Texas and President Donald Trump’s Permanent Representative to NATO from 2017 until 2021, writes diversity in our portfolio for baseload power is critical to ensure we meet the challenges of demand growth. As we navigate this pivotal moment in our nation’s energy history, we can lead the way with a comprehensive strategy that balances energy production with environmental stewardship and technological advancement. By doing so, we can ensure a secure, prosperous and sustainable energy future for America.

Reams: Energy Dominance Demands All-of-The-Above Approach – In an op-ed in the Washington Times, Citizens for Responsible Energy Solutions (CRES) President Heather Reams writes an all-encompassing energy approach to meet the United States' growing energy demand. energy dominance demands an “All-Of-The-Above” approach.

FROG BLOG

LPPA Head Says There are Hidden Costs to Eliminating Tax Credits – In an op-ed in RealClearEnergy, Tom Falcone, president of the Large Public Power Council and the former CEO of the Long Island Power Authority, writes Congress must protect critical financing tools that enable energy infrastructure investment. To address the growing need for electricity, members of the Large Public Power Council (LPPC) will invest $69 billion in energy infrastructure over the next five years, enabling some utilities to nearly double their capacity to serve customers. To make these investments while maintaining affordability for customers, utilities and developers rely on federal tax credits, which drive down the cost to customers in their electric bills by approximately a third.

Waltz Weighs in – In a blog post on The National Interest’s Energy World blog, former National Security Advisor and current UN Ambassador nom Mike Waltz reviewed national security accomplishments from the first 100 days of the Trump Administration. Waltz writes keeping Americans safe is a never-ending effort, and there is still much work to be done. But President Trump has returned our nation to a common sense, America-First national security policy, and Americans are already safer for it.

FUN FACTS

Powering a New Era of Demand:  McKinsey explores challenges related to six key issues that the American energy sector must tackle to deliver critical assets: resource adequacy, extreme weather, energy-supply-chain issues, project permit bottlenecks, labor availability, and energy affordability. We also suggest potential solutions that encompass the use of deployment-ready technologies as well as future innovations.

IN THE NEWS

CRES Report Looks at Advantage of Hydrogen, CCS – The Citizens for Responsible Energy Solutions (CRES) Forum released a new report highlighting the enormous potential of blue hydrogen to drive job creation, boost American manufacturing and secure U.S. leadership in the global clean energy economy. The report, conducted with assistance from FTI Consulting, finds that scaling blue hydrogen production in the United States could:

• Support 52,700 jobs annually during the construction of blue hydrogen plants (2025-2035) and 62,200 sustained jobs each year once operational. 
• Generate $12.3 billion in output, $6.6 billion in GDP, $400 million in state and local tax revenues, and $1 billion in federal tax revenues per year during construction.
• Create $22.4 billion in output, $12.3 billion in GDP, $1 billion in state and local tax revenues, and $1.4 billion in federal tax revenues annually during operations. 

The report emphasizes that blue hydrogen—a form of hydrogen produced from natural gas using carbon capture and storage (CCS)—represents a strategic opportunity to assert American dominance in the emerging global clean hydrogen market and identifies significant export potential for clean hydrogen-derived products like clean ammonia. It also highlights how blue hydrogen can play a vital role in decarbonizing critical U.S. industries such as fertilizer production, petroleum refining, steel manufacturing and long-haul transportation. The report underscores the importance of federal policy support, including the 45V Clean Hydrogen Production Tax Credit, in leveling the playing field as foreign competitors like China, the European Union and Middle Eastern nations heavily subsidize their hydrogen sectors.

ACCF Report: DOE Loan Program Can Address Energy Challenges – DOE’s Loan Programs Office (LPO) can serve as a powerful tool for addressing America’s energy challenges, accelerating manufacturing investment, and enhancing national security, according to a new report released today by the American Council for Capital Formation Center for Policy Research.  The report, Implementing President Trump’s Energy Dominance Agenda: Past and Future Role of the Loan Programs Office, finds that LPO-backed projects have generated over $5 billion in net returns for taxpayers. The program has helped create more than 47,300 permanent jobs, supported the production of over 127 million megawatt-hours of energy—enough to power 11 million homes—and maintained a loss rate of just 3%, comparable to commercial banks. LPO’s current portfolio stands at nearly $100 billion in closed loans and conditional commitments across 90 project sites nationwide. The report also cautions that while the Trump Administration has taken important steps to address energy challenges, much more must be done.  The Administration should avoid repeating the mistakes of past LPO eras where politically favored investment led to poor loan performance (Solyndra) and partisan criticism of LPO's mission. Applying a "favored-technology litmus test" to frozen funding would be a mistake. Instead, LPO should evaluate projects based on their outcome, impact, and confidence of repayment. Key recommendations in the report include:

• Accelerating commercialization of advanced technologies like next-generation nuclear and grid modernization projects. 
• Mobilizing private investment by using federal loan guarantees to de-risk transformational infrastructure projects.
• Reforming internal processes to strengthen conflict-of-interest safeguards and maintain strong returns for taxpayers.

The report also highlights the potential for LPO to serve as a model for a future sovereign wealth fund, helping the U.S. better harness government-backed investment to achieve long-term energy and economic security.

Interior Rule to Re-Write Rule on Old Offshore Oil Wells – On Friday, the Interior Department today announced its intent to revise the Bureau of Ocean Energy Management’s 2024 Risk Management and Financial Assurance for OCS Lease and Grant Obligations Rule and proceed with development of a new rule that is consistent with the Trump administration’s 2020 proposed regulatory framework. The revised measure leveraging the 2020 proposed rule will massively cut costs and red tape related to the current Biden process and free up billions of dollars for American producers to use to lease, explore, drill, and produce oil and gas in the Gulf of America while protecting American taxpayers against high-risk decommission liabilities. 

270+ Businesses and Trade Associations Urge Congress to Protect Energy Tax Incentives – The Business Council for Sustainable Energy (BCSE) and Clean Energy Business Network (CEBN) sent a letter to Congress urging it to protect energy tax incentives.  As Congress considers changes to the tax code as part of budget reconciliation, it is essential to protect long term business certainty for energy tax credits that have enjoyed decades of bipartisan support, spurred job creation, bolstered energy security, and boosted domestic manufacturing. See the release here, along with a large number of comments from signers.

Report: Gas Storage More Important than Ever – AGA is releasing a new study focused on the partnership between natural gas and energy storage. The report says surging demand for energy has created an urgent need for more natural gas storage and highlights emerging pressures on natural gas infrastructure because of rapidly increasing demand for energy, including from data centers and a resurgence of American manufacturing. The report recommends policy considerations and strategic actions related to storage to support energy reliability, affordability and security, including more flexible natural gas storage to preserve system reliability. 

Eurogas Letter on LNG/natural Gas – Individual Eurogas members sent a letter to EU leaders  that states that Methane Emissions regulations is making it difficult for their members to sign new supply contracts, creating “unmanageable liability risks,” and warns that this is exacerbating energy security challenges. Asks European Commission to conduct a thorough assessment of the rule’s workability and impact on competitiveness.   See this FT story: https://on.ft.com/3S7nlQG 

ON THE SCHEDULE THIS WEEK

Cement Industry Hosts Global Conference – The cement industry hosts its global conference today to Wednesday in Birmingham, AL. The 67^th annual IEEE-IAS/PCA Cement Conference is the most prestigious gathering of cement and concrete industry professionals.

Forum Set for California -- The 28^th annual Milken Institute Global Conference is set for today to Wednesday  at  the Beverly Hilton. The Conference brings together the world's brightest minds to address the most urgent challenges and unlock the most promising opportunities of our time.  The conference aims to tackle critical issues like climate change, economic inequality, public health challenges and the rapid advancement of artificial intelligence, exploring solutions that pave the way for a more sustainable, equitable and resilient future. The speaker list is impressive.

Chamber Hosts Resilience Conference – The US Chamber holds its 2025 Building Resilience Conference tomorrow and Wednesday to see how communities can better prepare and recover from disasters and other global threats. This year’s conference will bring together leaders to shape a national approach—one that is faster, more proactive, and risk-oriented—to effectively navigate crises and overcome the urgent challenges posed by disasters.: The event will cover key elements of creating a more prepared and resilient future.

Hill Talks Energy, Environment – The Hill hosts an Energy and Environment Summit tomorrow where it gather leaders in government, sustainability and global energy solutions to discuss energy and all of the above strategies. Speakers will include Sen. Ed Markey, Rep Randy Weber, former EPA Administrator Christine Todd Whitman and CRES head Heather Reams.

Forum Looks at Free Market Solutions to Climate – The R Street Institute holds its 2025 Real Solutions Summit tomorrow, focusing on how America will continue embracing free markets to solve climate change, what role artificial intelligence will play in our daily lives and how we can restore trust in our institutions and with one another. Summit aims to bring together leaders in politics, public policy, media, philanthropy, and the private sector who believe our best days are still ahead if we can unleash American innovation, bolster competition, and safeguard individual liberty.

Whitehouse Addresses EESI Forum on Insurance – The Environmental and Energy Study Institute (EESI) holds a briefing tomorrow at Noon about Congress’s role in bolstering the long-term resilience, investability, and insurability of U.S. communities. This briefing will explore the basics of property insurance and how it functions in the United States, including the challenges faced by individuals, businesses, insurers, and reinsurers. It will also feature existing and emerging tools—from parametric insurance to climate endorsements —that are reshaping how insurance products can better serve communities. Panelists will describe the role of federal policy in advancing these new ways of thinking about insurance. Sen. Sheldon Whitehouse introduces the forum. At this briefing, Woodwell Climate Research Center will also be launching a new report, Rebuilding Insurance for a Climate Future: A Policy Guide to Understand Tools, Address Inequities, and Find Solutions. Join us to be the first to hear about this new guide for policymakers.

House Resources Marks Up Reconciliation – Tomorrow at 10:15 a.m., the House Resources Committee holds a markup of a Committee Print providing for reconciliation pursuant to H.Con.Res. 14 (119), the Concurrent Resolution on the Budget for FY2025.

CSIS Looks at Minerals – The Center for Strategic and International Studies holds a virtual discussion tomorrow at 1:30 p.m., on the future of US-Canada minerals cooperation. This event will build upon a February policy brief from the CSIS Americas Program Mining for Defense: Unlocking the Potential for U.S.-Canada Collaboration on Critical Minerals, incorporating new perspectives on the challenges and opportunities facing this relationship. It will also explore the implications of Canada's recent elections for the country's domestic mineral sector, and collaboration with the United States.  SAFE’S Abby Hunter will speak.

Senate Ag Looks at Forest Legislation – The Senate Agriculture Committee holds a hearing on S. 1462 (119), the "Fix Our Forests Act."

Axios Forum Looks at Mineral Supply Chains – Axios holds a discussion tomorrow at 6:00 p.m. at District Winery on shoring up supply chains for critical minerals. The event convenes policy leaders for conversations looking at why securing domestic critical mineral supply chains has become a key priority for U.S. national security and economic competitiveness. It will also consider how projected shortfalls could impact various industries and look at the upcoming regulatory landscape for mining legislation.

Curtis, Carter, Ciscomani Headline CRES Leadership Summit – The 2025 CRES Energy Leadership Summit will be held on Wednesday in Washington, DC at the Royal Sonesta Hotel.  The event will bring together Trump Administration officials, conservative members of Congress, energy industry leaders and advocates who are all focused on American energy dominance.  The CRES Energy Leadership Summit will discuss and examine existing and potential federal policies that will result in strengthening our nation’s energy, economic and environmental security while enhancing America’s competitive edge. Speakers include Reps. Buddy Carter and Juan Ciscomani as well as Sen. John Curtis.

House Funding Panel Tackles DOE – The House Appropriations Energy and Water Development and Related Agencies Subcommittee holds a hearing on Wednesday at 10:00 a.m. on the budget for the U.S. Department of Energy.

FEMA On House Approps Docket – The House Appropriations Homeland Security Subcommittee holds a hearing on Oversight Hearing on the Federal Emergency Management Agency.

USEA Presser Focuses on Utilities –  USEA holds its May Virtual Press Briefing on Wednesday at 11:00 a.m. focused on new, transformative technologies entering the Electric Utility space. The briefing will look at a panoply of new technologies coming down the pike for utilities, including the incorporation of AI agents in many aspects of their operations, small modular reactors, fusion, new conductors, new low-head hydro, solutions to inertia problems, storage in all forms, and distributed energy applications and tools. These new technologies are being developed at a time when electricity is rising in importance and demand is increasing with AI data centers and new uses.

Senate Energy Hosts More Energy, Interior Noms – The Senate Energy Committee holds a hearing on Thursday at 9:30 a.m. to discuss the nominations of William Doffermyre to be solicitor of the Interior Department; Catherine Jereza to be an assistant Energy secretary for electricity; and Kyle Haustveit to be an assistant Energy secretary for fossil energy.

Forum Looks at Antarctic Treaty – The Center for Strategic and International Studies holds a virtual discussion on Thursday at 10:00 a.m.  on Antarctic Global Diplomacy. The event offers a preview of the annual Antarctic Treaty Meeting, held in Milan from   June 23^rd to July 3^rd.  This event will explore the priorities at this ATCM, as well as opportunities to deepen scientific research and coordination.

US Army Talks Energy – On Thursday at 12:00 p.m., the Association of the United States Army holds a virtual discussion focusing on the role of energy in today's evolving operational environment. This  webinar series features presentations by senior Army leaders responsible for key programs and initiatives, as well as contemporary military authors who weave together the past, present and future story of the United States Army.

Forum Feature Croatian Priome Minister – The Hudson Institute holds a discussion on Thursday at 1:30 p.m. with Croatian Prime Minister Andrej Plenković, looking at Europe’s growing role in Transatlantic ties. Prime Minister Plenković will discuss the future of the EU-US relationship and why strong alliances are important for meeting today’s challenges.

CAP to Discuss Climate, Insurance – The Center for American Progress holds a virtual discussion on Thursday at 2:00 p.m. on managing the challenges of climate change and insurance issues. The event featuring keynote remarks from U.S. Sen. Sheldon Whitehouse (D-RI) and a panel of experts who will discuss the interconnected issues and potential solutions

Small Biz Holds Field Hearing on Clean Energy – On Friday at 10:00 a.m., the Senate Small Business and Entrepreneurship Committee holds a field hearing in Boston, MA on small businesses powering the clean energy economy.

IN THE FUTURE

RMI Looks at Hydrogen, Europe – RMI holds a forum on Tuesday May 13^th 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.     

USEA Holds Public Policy Forum – On May 15^th, 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.

Chamber, RealClearEnergy Host Forum – The 2^nd annual Energy Future Forum hosted by the US Chamber’s Global Energy Institute and RealClearEnergy will be on 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 industry expert speaker line up is great, including former FERC Commissioner Mark Christie, NERC’s Jim Robb, Georgia Power’s Kim Greene, Westinghouse’s Dan Lipman, Devon Energy ‘s ClayGasper 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.

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.