Energy Update: Week of May 9th

Friends,

Wow, what a Derby finish.  Thank Goodness, my practice of placing $2-flyer bets on everyone over 40-1 paid off again to cover my losses. Rich Strike blew past the leaders after an early fast pace in a dramatic stretch run at Derby 148.  On to the Preakness in a couple weeks. The NHL Playoffs are getting exciting after the first week.  Not a lot of indication on who is separating themselves.  Caps play again tonight trying to take a 3-1 lead over #1 seed Florida.

With a couple of weeks to Memorial Day, not only are gas prices on the rise as we approach summer driving season, but it is another busy week on the Hill. CEQ head Brenda Mallory will go before the Senate Environment Committee on Wednesday. Both chambers continue to take up the president’s budget with Senate Appropriations subcommittees looking at USDA and Transportation.  The House Approps Energy and Water panel meets Wednesday to look the National Nuclear Security Administration and environmental management.  Then Thursday, the panel will tackle DOE’s science and energy programs. Also on Thursday, the House Energy Committee looks at licensing reforms for hydropower, particularly proposals between environmentalists and the industry to create sustainable generation as waterways degrade from climate change. Our friend Malcolm Woolf at NHA is a great resource there.

As for other events, OurEnergyPolicy hosts a forum on Wednesday moderated by my colleague Scott Segal that will look at America's electrical infrastructure and its increasing challenges from extreme weather, increased demand, new forms of generation, and more. The discussion will examine the aging electrical grid and what is needed to modernize the system.

Finally, a new website on CCUS technologies launched this week – the Capture Action Project (CAP). CAP is focused on demystifying CCUS through dialogue on environmental policy and the impact of these technologies on the economy, communities, and global energy security. In addition to providing educational information on CCUS, CAP will also be providing rapid response to news articles and reports. This will become an essential resource for you as you follow/cover this carbon capture issue.  You can also follow CAP on Twitter.

Lots happening so call with questions...

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

FRANKLY SPOKEN

“Reforming EV subsidies to target Super-Users would make them more equitable, helping less well-off Americans, and particularly those hit hardest by big payments at the pump."

A new analysis by the nonprofit Niskanen Center that notes EVs aren't yet catching on among drivers who use the most gasoline. They're often in rural, suburban, or exurban areas and drive pickups and SUVs. The study suggests changing purchase incentives by linking them to miles driven to provide more climate bang for the buck.

ON THE PODCAST

Bloomberg oil expert Discusses Current Oil Market – In this week’s Columbia Energy Exchange, Jason Bordoff spoke with Javier Blas from Bloomberg News. He’s a leading energy columnist and commodities expert with a renowned career at top media outlets like the BBC and the Financial Times. He’s also the author of a new book The World for Sale: Money, Power, and the Traders Who Barter the Earth's Resources co-authored with senior Bloomberg News reporter Jack Farchy. In this discussion, Javier focuses on the implications of the current war for commodities markets and the global clean energy transition.

FUN OPINIONS

UMWA Says Calls for Sensible Climate Legislation – In an opinion in The Hill, United Mineworkers of American President Cecil Roberts writes to achieve a clean and secure energy future for America, we need a durable federal framework now to guide the massive public and private investments that are required in the coming decades. We need energy policies that can endure past the next election cycle, judicial decision or overseas conflict. The way to do this is through practical, bipartisan legislation that unites us in a national effort to generate clean energy from all domestic resources. Americans have a common interest in getting this right, and we should not let zero-sum politics stand in the way. Pragmatic proposals exist today, such as a bipartisan bill in the House of Representatives coauthored by two senior members of the Energy & Commerce Committee, David McKinley (R-W.Va.) and Kurt Schrader (D-Ore.), which provides the framework we need to advance our energy agenda. 

FROG BLOG

Chamber Energy Blog Says Increase Production to Address Gas Prices– In a blog post from the Chamber’s Global Energy Institute, Matt Letourneau says as energy prices and the cost of inflation rise, the Biden Administration can help control rising energy prices by expanding U.S. energy production. While the war in Ukraine and supply chain impacts from Russian sanctions have exacerbated price pressures, energy prices were already escalating well before the conflict did. Gasoline prices have more than doubled since their pandemic lows and now average $4.21 per gallon nationwide. “The Administration should therefore be clear and consistent in its support for expanded U.S. energy production, which will provide important signals to markets and help to limit the impact of energy on inflation. That includes holding comprehensive lease sales on federal lands and waters, moving swiftly to adopt a new National OCS Oil and Gas Leasing Program for offshore oil and gas development, avoiding imposing new regulatory burdens, and supporting the permitting reforms necessary to build energy infrastructure.”

FUN FACTS

Wealthiest People are Highest Emitters: In general, the highest income households (wealthiest 10%) emit about 5.6 times more greenhouse gases per capita than the lowest income households (lowest 10%). There are differences across geography. For instance, the average household in San Francisco emits 36% less CO2 than the average household in Houston.

IN THE NEWS

Slow Downs Abound for Renewables – Following Solar and wind’s incredible growth, renewables are facing some real challenges to expand more.  On the wind side, the industry it is dealing with supply-chain and transmission woes.  And solar is facing a viable threat because of the solar tariff question that have frozen the Industry.  The tariff petition, brought on by small California solar manufacturer Auxin over parts imported from Southeast Asia, already delayed the retirement of a coal plant in Indiana, and utilities, industry groups and analysts warn more fossil fuel generation could stay online longer as well.  My trade expert colleague tells me that the trade rules are unfortunately easy to use in this many especially after the 2018 solar case. Finally, the administration’s new NEPA rules will add another obstacle for renewables which still hasn’t even emerged yet.

CA Grid Officials Raise Reliability Concerns – California energy officials warned on Friday that threats from drought, extreme heat and wildfires — as well as supply chain and regulatory issues in the solar industry — will lead to energy reliability issues such as blackouts this summer. The state booked the driest January through March on record as climate change is driving a megadrought in the region, which has affected hydroelectric power resources. Of course, the state also wants to close its last remaining nuclear Plant but Gov. Newsom has taken initial steps that might keep it open.

Occidental Defeats Shareholder Resolution – Occidental will not need to set more rigorous targets for lowering greenhouse gas emissions following a shareholder vote that rejected the reduction proposal pushed by Dutch investor group Follow This. Occidental is aiming to reach net-zero emissions for both its operations and customers by 2050.  The company's strategy depends heavily on carbon capture and storage, which they are a leader in advancing.

OPEC Production Increase – The Organization of the Petroleum Exporting Countries and its allies agreed to boost output by 432,000 barrels per day next month, as the European Union called for a ban on Russian oil imports within six months in response to the Ukraine crisis.

NOPEC Passes – The OPEC increase didn’t impact the Senate.  The Senate Judiciary Committee voted 17-4 to pass "No Oil Producing or Exporting Cartels" passed a committee vote and is taking aim at OPEC+ despite concerns from the White House that the measure could have "potential implications and unintended consequences," especially amid Russia's invasion of Ukraine. 

NOPEC Support – SAFE said the passage was a strong signal to OPEC. SAFE Chairman Admiral Dennis Blair, former Director of National Intelligence said “It is encouraging to see strong bipartisan support for ending OPEC’s long-standing and harmful influence over global oil markets and resulting gas prices. We urge a vote on NOPEC in the full Senate at the earliest opportunity. With inflated oil revenue funding the Russian war machine in Ukraine, there is too much at stake for America’s national and economic security to miss this opportunity.”  He highlighted a letter last week from 14 members of SAFE’s Energy Security Leadership Council (ESLC) – 13 retired four-star military officers plus a former service secretary – submitted a letter to the Committee members. It stated in part: “Enacting this legislation would give the government a much-needed ‘stick’ to pressure Saudi Arabia to release its spare capacity onto the global market, stabilizing oil prices as the world contends with the Russian invasion of Ukraine. The passage of NOPEC would demonstrate that the United States is serious about combatting oil market manipulation and will hold malign actors to account.”

API, Chamber Opposed NOPEC – Both the Chamber and API said NOPEC is not a good idea. The U.S. Chamber of Commerce said it opposes NOPEC in a letter to the Committee.

The Chamber is unalterably opposed to anti-competitive conduct in commercial markets by foreign states and their agents. But this legislation would have zero impact at taming gasoline prices and could perversely cause prices to rise due to the geopolitical risk that comes with this legislation. The United States is the leading global energy producer, yet federal policies often stand in the way of leveraging America’s own abundant resources. Congress and the Administration should do more to support domestic production of reliable energy as the best means to provide greater insulation against price swings.

API agrees in a April 29 letter saying NOPEC could create unintended negative consequences for the U.S. oil and natural gas industry, while likely having limited impact on the market concerns that drive the bill.

 "Legislative efforts that strengthen American energy production would be the best approach to ensure market stability and protect America's energy security,"

ON THE SCHEDULE THIS WEEK

FT Hosts Future of Car Conference – The Financial Times is hosting the "Future of the Car" conference digitally and in person today through Thursday in London. Tesla CEO Elon Musk will keynote the conference and will offer some insight into the industry as electric vehicle automakers are looking for some reprieve from supply chain issues, as well as a bumpy road in the stock market, over the past year.

Aspen Ideas Fest on Climate Set – The Aspen Institute holds Aspen Ideas: Climate 2022 on today through Thursday in Miami Beach. The event will feature main stages both in and outdoors, breakout and roundtable sessions, tours of local and historic resilience points of interest, as well as fashion, food, art, and music activities.

WRI to Look at Carbon-Free 24/7 Procurement –Today at 3:00 p.m., WRI holds a webinar that provides an introduction to the idea of hourly matching and 24/7 carbon-free energy procurement. It will address questions such as what 24/7 carbon-free energy is, why a city, company, or other institution should pursue it and how a jurisdiction begin to explore it.  During this webinar, experts will provide an overview of the current 24/7 carbon-free energy landscape. This will include presentations by representatives from the Council on Environmental Quality, Peninsula Clean Energy, and Princeton University’s ZERO lab, who will highlight 24/7 commitments and approaches, and illuminate pathways for others to explore 24/7 carbon-free energy.

Wilson to Look at China, US Farm Emissions – The Wilson Center holds a forum tomorrow at 9:00 a.m. to look at China and US green and climate resilient agriculture.  At this China Environment Forum meeting, panelists will give an overview of the global food-climate challenge and delve into opportunities for China and the United States to target the food system to help reach their carbon neutral and short-lived climate pollutant reduction goals.

Forum to Discuss Energy Transition with Big Energy Companies – Tomorrow at Noon, the Center on Global Energy Policy will host a panel of experts with experience in the energy sector to better understand the opportunities, experiences and challenges facing oil and gas companies in adapting to the energy transition. Speakers will include bp’s Andrea Galieti, Sunaina Ocalan of Hess Corporation and Equinor’s Ariwoola Ogbemi.

WRI Looks at Green Building in India, Egypt, Brazil – Tomorrow at 10:30 a.m., WRI holds a web event on actions in India, Egypt and Brazil that are utilizing green building methods for upgrading informal settlements to be resilient, healthy and low-carbon. Participants will share community stories and best practices to learn from and we’ll discuss how these pilots can be scaled to promote low-carbon living in low-income areas.

Reporter Forum to Look at ESG – Tomorrow at 1:00 p.m., E&E News reporters Avery Ellfeldt, Hannah Northey, Adam Aton and Corbin Hiar, with moderator E&E News Enterprise Editor Joel Kirkland will discuss key insights on environmental, social and governance issues.  The panel will look at ESG investments, from the proposed SEC climate into how companies, technology, the market, regulators and policymakers have responded to these efforts.

Enviro Justice Forum Set – On Wednesday and Thursday, the Institute for Policy Integrity at New York University School of Law and DOE’s Office of Economic Impact and Diversity hold a forum on advancing energy justice.  The two-day virtual conference will bring together federal agency staff working to implement Justice40 with researchers to discuss how academic research can be more responsive to communities’ needs. Speakers and attendees will work to identify implementation challenges and opportunities for Justice40 and other energy justice initiatives. The goal is to enable researchers to develop methods, interdisciplinary connections, and frameworks that can help make deep decarbonization efforts more consistent with the tenets of energy justice.

Forum to Look at Russia War Impact – On Wednesday at 10:00 a.m., George Washington U hosts a forum on the impact of Russia’s war on Ukraine on European and Transatlantic energy policy. Three experts examine European and transatlantic energy policy responses since Russia launched its February 2022 invasion of Ukraine and assess future policy options for Europe and for transatlantic relations.

RFF Looks at Clean Energy Transition in Capacity Markets – Resources for the Future (RFF) an in-depth discussion on Wednesday at 11:00 a.m. looking at the role capacity markets can play in the transition to a decarbonized electricity system. This virtual RFF Live event will feature a conversation on a new book, Electricity Capacity Markets, by Todd Aagaard and Andrew Kleit, which provides key insights into the design and regulation of capacity markets—past, present, and future. A panel of experts will then discuss the role of capacity markets in an evolving electricity sector, the impact of widespread electrification on the role of capacity markets, the implications of climate policy and more.

Forum to Look at Electrical Infrastructure – OurEnergyPolicy hosts a forum on Wednesday at Noon moderated by my colleague Scott Segal that will look at America's electrical infrastructure and its increasing challenges from extreme weather, increased demand, new forms of generation, and more. The discussion will examine the aging electrical grid and what is needed to modernize the system. Scott’s panel will feature DOE’s Pat Hoffman, GridWise Alliance CEO Karen Wayland and Chase Weir of Distributed Sun,

AAAS to Hold Climate Meeting Focused on Indigenous People – On Wednesday at 2:00 p.m., AAAS hosts a panel of climate change and policy experts who will describe the many ways that climate change is already impacting Indigenous Peoples and how they are drawing on their unique history and culture to adapt and survive. Register now to hear their stories and discover ACS and AAAS resources to advocate on climate change policies. This webinar is moderated by Director-at-Large Dorothy Phillips of the American Chemical Society’s Board of Directors and co-produced with ACS Policy and AAAS.

White House to Host ASEAN Summit – The White House will host the leaders of the Association of Southeast Asian Nations for a D.C. summit on Thursday and Friday.  The White House said the summit will build off of last year’s meeting, covering COVID, climate change, LNG/energy supplies, economic growth and gender equality issues.

Forum to Look at COP 27 – On Thursday at 9:00 a.m., the Allied for Climate Transformation by 2025 (ACT2025) consortium holds a webinar where experts from a range of vulnerable developing countries will lay down the foundations for success at COP27, including closing the significant “emissions gap”, scaling up and delivering climate finance to build resilience to climate impacts, finally securing finance for loss and damage and holding countries accountable on their commitments. During the event, experts will also discuss the importance of keeping climate change high on the global agenda throughout 2022 and why COP27 is the moment to turn promising pledges into real action.

House Foreign Affairs Looks at Forest Conservation – The House Foreign Affairs Committee holds a hearing on Thursday at 10:00 a.m. hearing on forest conservation in the fight against climate change. Conservation International CEO M. Sanjayan and Rep Steny Hoyer are among those testifying.

House Resources Looks at 1872 Mining Law – The House Natural Resources Committee’s Subcommittee on Energy and Mineral Resources will hold a hybrid legislative hearing on reforming the Mining Law of 1872.

House Energy to Address Hydropower – The House Energy and Commerce Energy Subcommittee holds a hearing on Thursday at 10:30 a.m. looking at modernizing hydropower.  The hearing will review licensing and reforms for a clean energy future.

ASP to Host DOE’s Shah – On Thursday at 11:30 a.m., the American Security Project hosts a conversation with Jigar Shah, director of the DOE Loan Programs Office, on the department’s role in the future of U.S. clean energy demonstration and deployment.

Forum to Host MIT expert on Clean Energy Transition – On Thursday at Noon, Columbia’s Center on Global Energy Policy will host Dr. Jessika Trancik, Professor at MIT’s Institute for Data, Systems, and Society for a fireside chat with Dr. Geoffrey Heal of the Columbia Business School discussing the state of clean energy technology today in relation to climate change mitigation goals. Dr. Trancik will draw on insights from her research on evaluating technologies against societal goals and disentangling the mechanisms of innovation.

Forum to Climate Challenge – The Security and Sustainability Forum holds an event on Thursday at 12:30 p.m. featuring Global Council for Science and the Environment (GCSE) co-founder and distinguished scientist, educator, author, and planetary health leader Dr. Karim Ahmed.  Ahmed will discuss what must be done urgently to disrupt the current path and will give particular attention to the globalized economy where large inequities between rich and poor continue to rise to a societal breaking point.

AU to Hosts Discussion on Climate Action Costs – On Thursday at 1:30 p.m., American University School of Public Affairs hosts a forum on the costs of climate action and who pays. This webinar series will examine the most pressing questions facing nations in the realm of climate change mitigation and adaptation like how can nations and the international community can pay to mitigate and adapt to climate.

Forum to Look at Hydrogen Modeling – On Thursday May 12^th at 2:00 p.m., the US Energy Assn will look at the use of hydrogen as an energy carrier.  This webinar will cover the approach, outline, and potential implementation of such a Hydrogen Market Module (HMM) and discuss various aspects of modeling such a complex system.

Energy Economists Discuss Virtual Power Plants – On Thursday at 3:00 p.m., the US Energy Economists host a forum on virtual power plants. This webinar will examine the operational, demographic, emission, and economic considerations of peaker plants in select states to estimate the potential health and economic benefits of VPPs as an alternative.

IN THE FUTURE

CLEANPOWER Set for San Antonio – America’s Clean Power Association (ACP) will hold CLEANPOWER 2022 at the Henry B. Gonzalez Convention Center in San Antonio from May 16^th to 18^th. The event’s theme is “Building the Clean Energy Economy” and more than 6,000 attendees and 350 exhibitors from across the renewable energy spectrum representing over 30 countries and all 50 U.S. states are expected. View the full agenda here.

Chamber to Host Granholm at Brazil Forum – The US Chamber will host a Brazil Forum on May 16^th to discuss energy issues.

USAID Hosts Climate Strategy Webinar – Next Tuesday May 17^th at 8:00 a.m., US AID hosts a forum its climate strategy. This webinar will raise awareness about key aspects of the new USAID Climate Strategy and begin to answer the question for practitioners.

ELI to Look at SEC Climate Regs – on Tuesday May 17^th at Noon, the Environmental Law Institute and expert panelists will explore the proposed SEC rules on ESG. Panelists will highlight the existing reporting framework, the challenges of this system, and how these proposed rules intend to resolve the existing challenges.

ITIF to Release Clean Energy Report – The Information Technology & innovation Foundation holds a forum on next Tuesday May 17^th at Noon for the release of the Center for Clean Energy Innovation’s annual report on the federal energy RD&D budget and an expert panel discussion of key priorities. Study author Hoyu Chong will present, while our friend Dan Byers of the US Chamber’s Global Energy Institute will comment on the report in the context of the Energy Act of 2020 and the bipartisan infrastructure bill in 2021

POLITICO Sustainability Forum Set – On Wednesday, May 18^th at 10:00 a.m., POLITICO hosts its second annual sustainability summit taking place in-person at the Hotel Washington.  The event will look at the policies, strategies and innovations that government, the corporate sector, and local communities are implementing to accelerate climate progress and the most promising approaches that can get us to a sustainable future much faster. Speakers include DOE Secretary Granholm and CFTC Chair Rostin Behnam, as well as Rep. Kathy Castor, Sen. Deb Stabenow, Washington Gov. Jay Inslee, NASDAQ Vice Chair Edward Knight and many more.

Forum Looks at Sea Level Rise -- The Environmental and Energy Study Institute (EESI) holds a briefing on Wednesday May 18^th at 1:00 p.m. looking at policies and practices to address sea level rise. Panelists will discuss these questions and highlight policy ideas and solutions that could start to shape a more robust U.S. response to sea level rise.

US-Mex Chamber Hosts Forum – The United States-Mexico Chamber of Commerce holds its annual Board of Directors Meeting, Conference and Good Neighbor Awards Gala on May 19^th at The Decatur House in Washington, D.C.  The conference this year will focus on the implementation of the United States-Mexico-Canada Agreement, current supply chain challenges and nearshoring opportunities.

House Foreign Affairs Looks at US Energy Efforts to Help Europe – The House Foreign Affairs Committee’s Subcommittee: Europe, Energy, the Environment and Cyber will convene a hearing on Thursday May 19^th at 10:30 a.m. to Look at US efforts to support European energy security.

Forum Look at Fusion Energy – On Thursday at 2:00 p.m. the Center on Climate and Energy Solutions (C2ES) holds a forum on unleashing the potential of Fusion energy. In this webinar, experts will discuss the latest developments in fusion energy, its potential role in future comprehensive decarbonization strategies, and overcoming technical barriers, as well as the near- and long-term policies necessary to facilitate commercialization and deployment.

Forum to Look at Steel Decarb – On Thursday May 19^th at 2:30 p.m., the Atlantic Council Global Energy Center as it hosts Adam Rauwerdink, senior vice president of business development at Boston Metal, to discuss the company’s innovative approach to decarbonizing steel production.  Boston Metal is commercializing a revolutionary one-step process to decarbonize steel production using clean electricity, helping to eliminate 10% of the world’s carbon emissions.

FERC Forum to Look at NatGas Policy – On Tuesday May 24^th, Energy Policy News (formerly Foster’s Report) holds a webinar featuring former FERC Chair Neil Chatterjee and NRDC’s Gillian Giannetti on natgas policy in crisis.  The event will look at FERC and the path forward. The recent policies, which were walked back to draft status by the Commission last month, raise questions about the future of natural gas during the clean energy transition as well as FERC’s fundamental role as a federal energy regulator. The event will be moderated by our friend Rod Kuckro.

Hydrogen Plant Opening Set for North Las Vegas – Air Liquide will formally open its new North Las Vegas Hydrogen Production Facility on May 24^th.  It will be the largest H2 Production facility in the US and is design to reach California’s emerging hydrogen market.

EESI Looks at Carbon Capture – The Environmental and Energy Study Institute (EESI) holds a briefing on Wednesday May 25^th at 3:30 p.m. focused on direct air capture, which chemically removes carbon dioxide from the atmosphere. The captured carbon can be permanently stored underground or used in industrial processes. While climate change mitigation efforts are the priority, carbon dioxide removal will be necessary to help meet climate goals and limit global warming to below 2 degrees Celsius (3.6 degrees Fahrenheit) as outlined in the Paris Agreement. During this briefing, panelists will explain what Congress needs to know about direct air capture, including the considerations, challenges, and opportunities involved in responsibly scaling it up. Rep. Paul Tonko provides introductory remarks.

ACORE Finance Forum Set – The 2022 ACORE Finance Forum will be held in New York City on June 7^th and 8^th New York State Energy Research and Development Authority CEO Doreen will give keynote remarks at the Forum.

Members of Senate, House Address Energy Summit – US Energy Stream hosts its 7^th Washington Energy Summit 2022 on June 8^th and 9^th at the Cosmos Club of Washington, DC.  The Summit is an annual market intelligence platform that brings together Senators, Congressmen, government leaders, senior energy executives, investors and experts to successfully address climate policy in the quest for net-zero emissions in a decarbonized energy future. Speakers include Sens. Roger Marshall, Bill Cassidy, Ted Cruz, Steve Daines and Cynthia Lummis, as well as 20-plus Representatives. 

EESI Looks at Wildfires, Climate – On Monday June 13^th at 1:00 p.m., the Environmental and Energy Study Institute (EESI) hosts a briefing on policies and practices to address wildfires. Panelists will discuss policies and practices that would allow the United States to reduce the overall risk of wildfires, including how innovations in community-centered wildfire protection can improve resilience for humans and ecosystems.